0000950170-22-015071 | 10-Q | XBRL Viewer | Eyepoint Pharmaceuticals INC

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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2022	Aug. 01, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Registrant Name	EyePoint Pharmaceuticals, Inc.
Entity Central Index Key	0001314102
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Trading Symbol	EYPT
Entity Common Stock, Shares Outstanding		34,071,899
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity File Number	000-51122
Entity Tax Identification Number	26-2774444
Entity Address, Address Line One	480 Pleasant Street
Entity Address, City or Town	Watertown
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02472
City Area Code	(617)
Local Phone Number	926-5000
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	DE
Title of 12(b) Security	Common Stock, par value $0.001
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes
Entity Current Reporting Status	Yes

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 82,134	$ 178,593
Marketable securities	89,033	32,965
Accounts and other receivables, net	22,594	18,354
Prepaid expenses and other current assets	8,851	4,217
Inventory	3,254	3,616
Total current assets	205,866	237,745
Property and equipment, net	1,111	476
Operating lease right-of-use assets	4,787	2,252
Intangible assets, net	21,519	22,749
Restricted cash	150	150
Total assets	233,433	263,372
Current liabilities:
Accounts payable	7,058	7,385
Accrued expenses	14,312	14,422
Deferred revenue	1,137	1,069
Short-term borrowings	10,475	0
Other current liabilities	408	782
Total current liabilities	33,390	23,658
Long-term debt	29,181	36,562
Deferred revenue - noncurrent	14,070	14,560
Operating lease liabilities - noncurrent	4,826	1,860
Other long-term liabilities	600	2,352
Total liabilities	82,067	78,992
Contingencies (Note 13)
Stockholders' equity:
Preferred stock, $.001 par value, 5,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $.001 par value, 300,000,000 shares authorized at June 30, 2022 and December 31, 2021; 34,052,616 and 33,905,826 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively	34	34
Additional paid-in capital	760,209	752,602
Accumulated deficit	(609,479)	(569,097)
Accumulated other comprehensive income	602	841
Total stockholders' equity	151,366	184,380
Total liabilities and stockholders' equity	$ 233,433	$ 263,372

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	34,052,616	33,905,826
Common stock, shares outstanding	34,052,616	33,905,826

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues:
Total revenues	$ 11,565	$ 9,013	$ 20,859	$ 16,336
Operating expenses:
Cost of sales, excluding amortization of acquired intangible assets	1,734	1,929	3,511	3,319
Research and development	12,992	5,605	22,937	11,084
Sales and marketing	6,883	6,659	13,576	12,318
General and administrative	8,557	5,184	17,106	10,299
Amortization of acquired intangible assets	615	615	1,230	1,230
Total operating expenses	30,781	19,992	58,360	38,250
Loss from operations	(19,216)	(10,979)	(37,501)	(21,914)
Other income (expense):
Interest and other income, net	362	280	423	281
Interest expense	(552)	(1,376)	(1,745)	(2,722)
Gain (loss) on extinguishment of debt	0	2,065	(1,559)	2,065
Total other income (expense), net	(190)	969	(2,881)	(376)
Net loss	$ (19,406)	$ (10,010)	$ (40,382)	$ (22,290)
Net loss per share - basic	$ (0.52)	$ (0.35)	$ (1.08)	$ (0.83)
Net loss per share - diluted	$ (0.52)	$ (0.35)	$ (1.08)	$ (0.83)
Weighted average shares outstanding - basic	37,322	28,744	37,288	26,750
Weighted average shares outstanding - diluted	37,322	28,744	37,288	26,750
Net loss	$ (19,406)	$ (10,010)	$ (40,382)	$ (22,290)
Other comprehensive loss:
Unrealized loss on available-for-sale securities, net of tax of $0 for periods presented	(186)	0	(239)	0
Comprehensive loss	(19,592)	(10,010)	(40,621)	(22,290)
Product [Member]
Revenues:
Total revenues	11,318	8,738	20,328	15,540
License and Collaboration Agreements [Member]
Revenues:
Total revenues	49	94	108	435
Royalty Income [Member]
Revenues:
Total revenues	$ 198	$ 181	$ 423	$ 361

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Income Statement [Abstract]
Unrealized loss on available-for-sale securities, tax	$ 0	$ 0

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income [Member]
Balance at Dec. 31, 2020	$ 18,541	$ 18	$ 528,362	$ (510,680)	$ 841
Balance, shares at Dec. 31, 2020		18,139,981
Net loss	(22,290)			(22,290)
Issuance of stock, net of issue costs	108,403	$ 11	108,392
Issuance of stock, net of issue costs, shares		10,513,538
Employee stock purchase plan	173		173
Employee stock purchase plan, shares		27,713
Exercise of stock options	10		10
Exercise of stock options, shares		827
Vesting of stock units	(140)		(140)
Vesting of stock units, shares		72,133
Stock-based compensation	2,168		2,168
Balance at Jun. 30, 2021	106,865	$ 29	638,965	(532,970)	841
Balance, shares at Jun. 30, 2021		28,754,192
Balance at Mar. 31, 2021	115,707	$ 29	637,797	(522,960)	841
Balance, shares at Mar. 31, 2021		28,741,475
Net loss	(10,010)			(10,010)
Vesting of stock units	(12)		(12)
Vesting of stock units, shares		12,717
Stock-based compensation	1,180		1,180
Balance at Jun. 30, 2021	106,865	$ 29	638,965	(532,970)	841
Balance, shares at Jun. 30, 2021		28,754,192
Balance at Dec. 31, 2021	$ 184,380	$ 34	752,602	(569,097)	841
Balance, shares at Dec. 31, 2021	33,905,826	33,905,826
Net loss	$ (40,382)			(40,382)
Other comprehensive loss	(239)				(239)
Issuance of stock, net of issue costs	20		20
Employee stock purchase plan	201		201
Employee stock purchase plan, shares		28,504
Exercise of stock options	40		40
Exercise of stock options, shares		4,223
Vesting of stock units	(271)		(271)
Vesting of stock units, shares		114,063
Stock-based compensation	7,617		7,617
Balance at Jun. 30, 2022	$ 151,366	$ 34	760,209	(609,479)	602
Balance, shares at Jun. 30, 2022	34,052,616	34,052,616
Balance at Mar. 31, 2022	$ 166,819	$ 34	756,070	(590,073)	788
Balance, shares at Mar. 31, 2022		34,047,128
Net loss	(19,406)			(19,406)
Other comprehensive loss	(186)				(186)
Issuance of stock, net of issue costs	20		20
Vesting of stock units	(21)		(21)
Vesting of stock units, shares		5,488
Stock-based compensation	4,140		4,140
Balance at Jun. 30, 2022	$ 151,366	$ 34	$ 760,209	$ (609,479)	$ 602
Balance, shares at Jun. 30, 2022	34,052,616	34,052,616

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net loss	$ (40,382,000)	$ (22,290,000)
Adjustments to reconcile net loss to cash flows used in operating activities:
Amortization of intangible assets	1,230,000	1,230,000
Depreciation of property and equipment	170,000	142,000
Amortization of debt discount and premium and discount on available-for-sale marketable securities	(4,000)	300,000
(Gain) loss on extinguishment of debt	1,559,000	(2,065,000)
Stock-based compensation	7,617,000	2,168,000
Changes in operating assets and liabilities:
Accounts receivable and other current assets	(9,310,000)	(5,943,000)
Inventory	362,000	(43,000)
Accounts payable and accrued expenses	(90,000)	1,354,000
Right-of-use assets and operating lease liabilities	(10,000)	(74,000)
Deferred revenue	(423,000)	(421,000)
Net cash used in operating activities	(39,281,000)	(25,642,000)
Cash flows from investing activities:
Purchases of marketable securities	(92,087,000)
Sales and maturities of marketable securities	36,000,000
Purchases of property and equipment	(367,000)	(25,000)
Net cash used in investing activities	(56,454,000)	(25,000)
Cash flows from financing activities:
Proceeds from issuance of stock		115,666,000
Proceeds from issuance of long-term debt	30,000,000
Payment of equity and debt issue costs	(573,000)	(7,263,000)
Payment of long-term debt	(38,235,000)
Payment of extinguishment of debt costs	(2,294,000)
Borrowings under revolving facility	21,934,000
Repayment under revolving facility	(11,459,000)
Net settlement of stock units to satisfy statutory tax withholding	(271,000)	(140,000)
Proceeds from exercise of stock options	241,000	183,000
Principal payments on finance lease obligations	(67,000)	(58,000)
Net cash (used in) provided by financing activities	(724,000)	108,388,000
Net increase (decrease) in cash, cash equivalents and restricted cash	(96,459,000)	82,721,000
Cash, cash equivalents and restricted cash at beginning of period	178,743,000	45,059,000
Cash, cash equivalents and restricted cash at end of period	82,284,000	127,780,000
Supplemental cash flow information:
Cash interest paid	1,349,000	2,403,000
Supplemental disclosure of non-cash investing and financing activities:
Stock issuance costs		65,000
Debt issue costs	26,000
Accrued term loan exit fee	$ 600,000
Payments forgiven under paycheck protection program loan		$ 2,041,000

Operations

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Operations

The accompanying condensed consolidated financial statements of EyePoint Pharmaceuticals, Inc., a Delaware corporation (together with its subsidiaries, the “Company”), as of June 30, 2022 and for the three and six months ended June 30, 2022 and 2021 are unaudited. Certain information in the footnote disclosures of these financial statements has been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In the opinion of management, these statements have been prepared on the same basis as the audited consolidated financial statements as of and for the year ended December 31, 2021, and include all adjustments, consisting only of normal recurring adjustments, that are necessary for the fair presentation of the Company’s financial position, results of operations, comprehensive loss and cash flows for the periods indicated. The preparation of financial statements in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) requires management to make assumptions and estimates that affect, among other things, (i) reported amounts of assets and liabilities; (ii) disclosure of contingent assets and liabilities at the date of the consolidated financial statements; and (iii) reported amounts of revenues and expenses during the reporting period. The results of operations for the three months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the entire fiscal year or any future period.

The Company is a pharmaceutical company committed to developing and commercializing innovative therapeutics to help improve the lives of patients with serious eye disorders. The Company’s pipeline leverages its proprietary Durasert® technology for sustained intraocular drug delivery including EYP-1901, an investigational sustained delivery anti-VEGF treatment initially targeting wet age-related macular degeneration (“wet AMD”), the leading cause of vision loss among people 50 years of age and older in the United States. The Company also has two commercial products: YUTIQ®, a once every three-year treatment for chronic non-infectious uveitis affecting the posterior segment of the eye, and DEXYCU®, a single-dose treatment for postoperative inflammation following ocular surgery. Both commercial products are currently being sold in the United States.

The Company plans to identify and advance additional pipeline product candidates through clinical and regulatory development. This may be accomplished through internal discovery efforts, research collaborations and/or in-licensing arrangements with partner molecules and potential acquisitions of additional ophthalmic products, product candidates or technologies that complement the Company’s current product portfolio.

Effects of the COVID-19 Coronavirus Pandemic

The ongoing COVID-19 coronavirus pandemic (the “Pandemic”) has had a material and adverse impact on the Company’s business. The duration and full extent to which the Pandemic impacts the Company’s business, revenues, financial condition and cash flows depends on future developments that are highly uncertain, subject to change and are difficult to predict, including new information that may emerge concerning the Pandemic, and may cause intermittent or prolonged periods of reduced patient services at the Company’s customers’ facilities, which may negatively affect customer demand. The Company’s revenues, financial condition and cash flows may be adversely affected in the future as well. The Company is continuously monitoring the Pandemic and its potential effect on the Company’s financial position, results of operations and cash flows. This uncertainty could have an impact in future periods on certain estimates used in the preparation of the Company’s periodic financial results, including reserves for variable consideration related to product sales, realizability of certain receivables, assessment for excess or obsolete inventory and impairment of long-lived assets. Uncertainty around the extent and length of time of the Pandemic, and any future related financial impact cannot be reasonably estimated at this time.

Liquidity

The Company had cash, cash equivalents and investments in marketable securities of $171.2 million at June 30, 2022. The Company has a history of operating losses and has not had significant recurring cash inflows from revenue. The Company’s operations have been financed primarily from sales of its equity securities, issuance of debt and a combination of license fees, milestone payments, royalty income and other fees received from its collaboration partners. The Company anticipates that it will continue to incur losses as it continues the research and development of its product candidates and the Company does not expect revenues from its product sales to generate sufficient funding to sustain its operations in the near-term. The Company expects to continue fulfilling its funding needs through cash inflows from revenues of its product sales, licensing and research collaboration transactions, additional equity capital raises and other arrangements. The Company believes that its cash, cash equivalents and investments in marketable securities of $171.2 million at June 30, 2022 coupled with expected cash inflows from its product sales will enable the Company to fund its current and planned operations for at least the next twelve months from the date these consolidated financial statements were issued. Actual cash requirements could differ from management’s projections due to many factors, including the continued effect of the Pandemic on the Company’s business and the medical community, the timing and results of the Company’s

clinical trials for EYP-1901, additional investments in research and development programs, the success of ongoing commercialization efforts for YUTIQ and DEXYCU, the actual costs of these ongoing commercialization efforts, competing technological and market developments and the costs of any strategic acquisitions and/or development of complementary business opportunities.

Recently Adopted and Recently Issued Accounting Pronouncements

New accounting pronouncements are issued periodically by the Financial Accounting Standards Board (“FASB”) and are adopted by the Company as of the specified effective dates. The Company believes that recently issued and adopted pronouncements will not have a material impact on the Company’s financial position, results of operations and cash flows or do not apply to the Company’s operations.

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Revenue Recognition Revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, Revenue from Contracts with Customers (“ASC 606”), the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within the contract, determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Sales, value-add and other taxes collected on behalf of third parties are excluded from revenue. Product sales, net — The Company sells YUTIQ and DEXYCU to a limited number of specialty distributors and specialty pharmacies (collectively the “Distributors”) in the U.S., with whom the Company has entered into formal agreements, for delivery to physician practices for YUTIQ and to hospital outpatient departments and ambulatory surgical centers for DEXYCU. The Company recognizes revenue on sales of its products when Distributors obtain control of the products, which occurs at a point in time, typically upon delivery. In addition to agreements with Distributors, the Company also enters into arrangements with healthcare providers, ambulatory surgical centers and payors that provide for government mandated and/or privately negotiated rebates, chargebacks and discounts with respect to the purchase of the Company’s products from Distributors. Reserves for variable consideration — Product sales are recorded at the wholesale acquisition costs, net of applicable reserves for variable consideration. Components of variable consideration include trade discounts and allowances, provider chargebacks and discounts, payor rebates, product returns and other allowances that are offered within contracts between the Company and its Distributors, payors and other contracted purchasers relating to the Company’s product sales. These reserves, as detailed below, are based on the amounts earned, or to be claimed on the related sales, and are classified either as reductions of product revenue and accounts receivable or a current liability, depending on how the amount is to be settled. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the respective underlying contracts. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results in the future vary from the estimates, the Company adjusts product revenue and earnings in the period such variances become known. Distribution fees — The Company compensates its Distributors for services explicitly stated in the Company’s contracts and are recorded as a reduction of revenue in the period the related product sale is recognized. Provider chargebacks and discounts — Chargebacks are discounts that represent the estimated obligations resulting from contractual commitments to sell products at prices lower than the list prices charged to the Company’s Distributors. These Distributors charge the Company for the difference between what they pay for the product and the Company’s contracted selling price. These reserves are established in the same period that the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability. Reserves for chargebacks consist of amounts that the Company expects to pay for units that remain in the distribution channel inventories at each reporting period-end that the Company expects will be sold under a contracted selling price, and chargebacks that Distributors have claimed, but for which the Company has not yet settled. Government rebates — The Company is subject to discount obligations under state Medicaid programs and Medicare. These reserves are recorded in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability which is included in accrued expenses and other current liabilities on the condensed consolidated balance sheets. The Company’s liability for these rebates consists of invoices received for claims from prior quarters that have not been paid or for which an invoice has not yet been received, estimates of claims for the current quarter, and estimated future claims that will be made for product that has been recognized as revenue, but which remains in the distribution channel inventories at the end of each reporting period. Payor rebates — The Company contracts with certain private payor organizations, primarily insurance companies, for the payment of rebates with respect to utilization of its products. The Company estimates these rebates and records such estimates in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability. Co-Payment assistance — The Company offers co-payment assistance to commercially insured patients meeting certain eligibility requirements. The calculation of the accrual for co-pay assistance is based on an estimate of claims and the cost per claim that the Company expects to receive associated with product that has been recognized as revenue. Product returns — The Company generally offers a limited right of return based on its returned goods policy, which includes damaged product and remaining shelf life. The Company estimates the amount of its product sales that may be returned and records this estimate as a reduction of revenue in the period the related product revenue is recognized, as well as reductions to trade receivables, net on the condensed consolidated balance sheets. License and collaboration agreement revenue — The Company analyzes each element of its license and collaboration arrangements to determine the appropriate revenue recognition. The terms of the license agreement may include payment to the Company of non-refundable up-front license fees, milestone payments if specified objectives are achieved, and/or royalties on product sales. The Company recognizes revenue from upfront payments at a point in time, typically upon fulfilling the delivery of the associated intellectual property to the customer. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. The Company determines standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. The Company recognizes sales-based milestone payments as revenue upon the achievement of the cumulative sales amount specified in the contract in accordance with ASC 606-10-55-65. For those milestone payments which are contingent on the occurrence of particular future events, the Company determines that these need to be considered for inclusion in the calculation of total consideration from the contract as a component of variable consideration using the most-likely amount method. As such, the Company assesses each milestone to determine the probability and substance behind achieving each milestone. Given the inherent uncertainty associated with these future events, the Company will not recognize revenue from such milestones until there is a high probability of occurrence, which typically occurs near or upon achievement of the event. When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in paragraph 606-10-32-18, the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. None of the Company’s contracts contained a significant financing component as of June 30, 2022. Royalties — The Company recognizes revenue from license arrangements with its commercial partners’ net sales of products. Such revenues are included as royalty income. In accordance with ASC 606-10-55-65, royalties are recognized when the subsequent sale of the commercial partner’s products occurs. The Company’s commercial partners are obligated to report their net product sales and the resulting royalty due to the Company typically within 60-days from the end of each quarter. Based on historical product sales, royalty receipts and other relevant information, the Company recognizes royalty income each quarter and subsequently determines a true-up when it receives royalty reports and payment from its commercial partners. Historically, these true-up adjustments have been immaterial. Sale of Future Royalties — The Company has sold its rights to receive certain royalties on product sales. In the circumstance where the Company has sold its rights to future royalties under a royalty purchase agreement and also maintains limited continuing involvement in the arrangement (but not significant continuing involvement in the generation of the cash flows that are due to the purchaser), the Company defers recognition of the proceeds it receives for the sale of royalty streams and recognizes such unearned revenue as revenue under the units-of-revenue method over the life of the underlying license agreement. Under the units-of-revenue method, amortization for a reporting period is calculated by computing a ratio of the proceeds received from the purchaser to the total payments expected to be made to the purchaser over the term of the agreement, and then applying that ratio to the period’s cash payment. Estimating the total payments expected to be received by the purchaser over the term of such arrangements requires management to use subjective estimates and assumptions. Changes to the Company’s estimate of the payments expected to be made to the purchaser over the term of such arrangements could have a material effect on the amount of revenues recognized in any particular period. Research Collaborations — The Company recognizes revenue over the term of the statements of work under any funded research collaborations. Revenue recognition for consideration, if any, related to a license option right is assessed based on the terms of any such future license agreement or is otherwise recognized at the completion of the research collaborations. Please refer to Note 3 for further details on the license and collaboration agreements into which the Company has entered and corresponding amounts of revenue recognized during the current and prior year periods. Cost of sales, excluding amortization of acquired intangible assets — Cost of sales, excluding amortization of acquired intangible assets, consist of costs associated with the manufacture of YUTIQ and DEXYCU, certain period costs, product shipping and, as applicable, royalty expense. The inventory costs for YUTIQ include purchases of various components, the active pharmaceutical ingredient (“API”) and internal labor and overhead for the product manufactured in the Company’s Watertown, MA facility. The inventory costs for DEXYCU include purchased components, the API and third-party manufacturing and assembly. For the three months ended June 30, 2022 and 2021, the Company accrued DEXYCU product revenue-based royalty expense of $441,000 and $648,000, respectively, as a component of cost of sales. For the six months ended June 30, 2022 and 2021, the Company accrued DEXYCU product revenue-based royalty expense of $1.1 million and $1.1 million, respectively, as a component of cost of sales.

Revenue

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Product Revenue Reserves and Allowances

The Company’s product revenues have been primarily from sales of YUTIQ and DEXYCU in the U.S.

Net product revenues by product for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021

YUTIQ (A)	$	7,421	$	4,166	$	12,032	$	7,196
DEXYCU (B)		3,897		4,572		8,296		8,344
Total product sales, net	$	11,318	$	8,738	$	20,328	$	15,540

(a)

Included approximately $11 and $67 of revenue from YUTIQ product sales to Ocumension under a supply agreement for the three and six months ended June 30, 2022, respectively, and approximately $14 and $19 of revenue from YUTIQ product sales to Ocumension under a supply agreement for the three and six months ended June 30, 2021, respectively.

(b)

No revenue was recognized from DEXYCU product sales to Ocumension under a supply agreement for the three and six months ended June 30, 2022, and no revenue was recognized from DEXYCU product sales to Ocumension for the three and six months ended June 30, 2021.

The following table summarizes activity in each of the product revenue allowance and reserve categories for the six months ended June 30, 2022 and 2021 (in thousands):


	Chargebacks, Discounts			Government and Other
	and Fees			Rebates			Returns			Total
Beginning balance at January 1, 2022	$	1,153		$	1,821		$	379		$	3,353
Provision related to sales in the current year		6,580			3,554			329			10,463
Adjustments related to prior period sales											—
Deductions applied and payments made		(5,698	)		(3,490	)		(198	)		(9,386	)
Ending balance at June 30, 2022	$	2,035		$	1,885		$	510		$	4,430

	Chargebacks, Discounts			Government and Other
	and Fees			Rebates			Returns			Total
Beginning balance at January 1, 2021	$	574		$	535		$	603		$	1,712
Provision related to sales in the current year		2,932			1,965			497			5,394
Adjustments related to prior period sales		(50	)		(22	)		(100	)		(172	)
Deductions applied and payments made		(2,229	)		(1,121	)		(581	)		(3,931	)
Ending balance at June 30, 2021	$	1,227		$	1,357		$	419		$	3,003

Returns are recorded as a reduction of accounts receivable on the condensed consolidated balance sheets. Chargebacks, discounts and fees and rebates are recorded as a component of accrued expenses on the condensed consolidated balance sheets (See Note 6).

License and Collaboration Agreements and Royalty Income

SWK Royalty Purchase Agreement

On December 17, 2020, the Company entered into a royalty purchase agreement (the “RPA”) with SWK Funding LLC (“SWK”). Under the RPA, the Company sold its right to receive royalty payments on future sales of products subject to a licensing and development agreement, as amended, with Alimera Sciences, Inc. (“Alimera”) (the “Amended Alimera Agreement”) for an upfront cash payment of $16.5 million. Except for the rights to the royalties, the Company retains all rights and obligations under the Amended Alimera Agreement, pursuant to which, Alimera owns worldwide rights to the Company’s Durasert technology in ILUVIEN for diabetic macular edema (“DME”) and rights for ILUVIEN (currently marketed by the Company as YUTIQ in the U.S.) for non-infectious posterior uveitis in Europe, the Middle East, and Africa (“EMEA”). Alimera has the sole rights to utilize the intellectual property developed under the Amended Alimera Agreement. There has been no intellectual property developed jointly by Alimera and the Company as part of the Amended Alimera Agreement. The Company cannot utilize the intellectual property for the indication licensed to Alimera in order to manufacture and sell ILUVIEN.

The Company’s ongoing efforts under the Amended Alimera Agreement will consist of continuing to maintain and enforce its patents as well as providing safety data and regulatory support as necessary. None of these obligations require significant efforts on the part of the Company with respect to the generation of sales in the market. The Company will only be required to expend more extensive efforts if litigation were to arise that requires the Company to protect its patents rights pursuant to the terms of the Amended Alimera Agreement. Historically, such a defense has not been required. Similarly, regulatory support and safety data is only provided on an ad-hoc basis depending on the regulatory requests, which has been minimal historically. It remains Alimera’s sole responsibility to manufacture, actively market and promote the products under the Amended Alimera Agreement to generate the sales, which ultimately generate the royalties to be paid to SWK.

The Company classified the proceeds received from SWK as deferred revenue, to be recognized as revenue under the units-of-revenue method over the life of the RPA because of the Company’s limited continuing involvement in the Amended Alimera Agreement. SWK has no recourse and the Company assumes no credit risk in event that Alimera fails to make a royalty payment. The Company must only forward all material correspondence from Alimera to SWK, including royalty reports, notices and any other correspondence with respect to royalties to SWK. SWK has the right to audit and inspect the books and records pertaining to net sales and royalties under the Amended Alimera Agreement. Neither the Company nor SWK has the unilateral ability to cancel the agreement. There is no cap or limitation on the royalties to be received by SWK in the future and its return will reflect all royalties

paid by Alimera. Because the transaction was structured as a non-cancellable sale, the Company does not have significant continuing involvement in the generation of the cash flows due to SWK and there is no limitation on the rates of return to SWK, the Company recorded the total proceeds of $16.5 million as deferred revenue under royalty sale agreement. The deferred revenue is being recognized as revenue over the life of the RPA under the "units-of-revenue" method. Under this method, amortization for a reporting period is calculated by computing a ratio of the proceeds received from SWK to the payments expected to be made by Alimera to SWK over the term of the Amended Alimera Agreement, and then applying that ratio to the period’s cash payment.

The Company recognized $198,000 and $423,000 of royalty revenue related to the RPA for the three and six months ended June 30, 2022, in connection with the royalty payment of $617,000 and $1.3 million for the three and six months ended June 30, 2022 from Alimera to SWK, pursuant to the Amended Alimera Agreement. The Company recognized $181,000 and $361,000 of royalty revenue related to the RPA for the three and six months ended June 30, 2021, in connection with the royalty payment of $583,000 and $1.2 million for the three and six months ended June 30, 2021 from Alimera to SWK, pursuant to the Amended Alimera Agreement. As of June 30, 2022, the Company had $1.1 million and $14.1 million as current and non-current deferred revenue recognized under royalty sale agreement, respectively. As of December 31, 2021, the Company classified $1.1 million and $14.6 million as current and non-current deferred revenue recognized under royalty sale agreement, respectively.

Ocumension Therapeutics

In November 2018, the Company entered into an exclusive license agreement with Ocumension Therapeutics (“Ocumension”) for the development and commercialization of its three-year micro insert using the Durasert technology for the treatment of chronic non-infectious uveitis affecting the posterior segment of the eye (YUTIQ in the U.S.) in Mainland China, Hong Kong, Macau and Taiwan. The Company received a one-time upfront payment of $1.75 million from Ocumension and is eligible to receive up to (i) $7.25 million upon the achievement by Ocumension of certain prescribed development and regulatory milestones, and (ii) $3.0 million commercial sales-based milestones. In addition, the Company is entitled to receive mid-single digit sales-based royalties. Ocumension has also received a special approval by the Hainan Province People's Government to market this product for chronic, non-infectious posterior segment uveitis in the Hainan Bo Ao Lecheng International Medical Tourism Pilot Zone (“Hainan Pilot Zone”). In March 2019, the Company entered into a Memorandum of Understanding (“2019 MOU”), pursuant to which, the Company will supply product for the clinical trials and Hainan Pilot Zone use. Paralleling to Ocumension’s normal registration process of the product with the Chinese Regulatory Authorities, the 2019 MOU modified the Company’s entitlement to the development and regulatory milestones of up to $7.25 million under the license agreement to product supply milestones or development milestones, whichever comes first, totaling up to $7.25 million. In August 2019, the Company began shipping this product to Ocumension.

The Company was required to provide a fixed number of hours of technical assistance support to Ocumension at no cost. This support has been completed and no future performance obligation exists. Ocumension is responsible for all development, regulatory and commercial costs, including any additional technical assistance requested. Ocumension has a first right of negotiation for an additional exclusive license to the Company’s shorter-duration line extension candidate for this indication.

In August 2019, the Company received a $1.0 million development milestone payment from Ocumension triggered by the approval of its Investigational New Drug (“IND”) in China for this program. The IND allows the importation of finished product into China for use in a clinical trial to support regulatory filing.

In January 2020, the Company entered into an exclusive license agreement with Ocumension for the development and commercialization in Mainland China, Hong Kong, Macau and Taiwan of DEXYCU for the treatment of post-operative inflammation following ocular surgery. Pursuant to the terms of the license agreement, the Company received upfront payments of $2.0 million from Ocumension in February 2020 and will be eligible to receive up to (i) $6.0 million upon the achievement by Ocumension of certain prescribed development and regulatory milestones, and (ii) $6.0 million commercial sales-based milestones. In addition, the Company is entitled to receive mid-single digit sales-based royalties. In exchange, Ocumension will receive exclusive rights to develop and commercialize DEXYCU in Mainland China, Hong Kong, Macau and Taiwan, at its own cost and expense with the Company supplying product for clinical trials and commercial sale. In addition, Ocumension will receive a fixed number of hours of technical assistance support from the Company at no cost.

In August 2020, the Company entered into a Memorandum of Understanding (“2020 MOU”), pursuant to which, the Company received a one-time non-refundable payment of $9.5 million (the “Accelerated Milestone Payment”) from Ocumension as a full and final payment of the combined remaining development, regulatory and sales milestone payments under the Company’s license agreements with Ocumension for the treatment of chronic non-infectious uveitis affecting the posterior segment of the eye and for the treatment of post-operative inflammation following ocular surgery, respectively. Upon payment of the Accelerated Milestone Payment, the remaining $11.75 million in combined remaining development and sales milestone payments under the Company’s original license agreement with Ocumension upon the achievement by Ocumension of (i) remaining development and regulatory milestones of $6.25 million and commercial sales-based milestones of $3.0 million for the development and commercialization of its

three-year micro insert using the Durasert technology for the treatment of chronic non-infectious uveitis affecting the posterior segment of the eye; and (ii) $6.0 million upon the achievement by Ocumension of certain prescribed development and regulatory milestones, and $6.0 million commercial sales-based milestones for the development and commercialization in Mainland China, Hong Kong, Macau and Taiwan of DEXYCU for the treatment of post-operative inflammation following ocular surgery, totaling up to $21.25 million, were permanently extinguished and will no longer be due and owed to the Company. In exchange, Ocumension also received exclusive rights to develop and commercialize YUTIQ and DEXYCU products under its own brand names in South Korea and other jurisdictions across Southeast Asia in Brunei, Burma (Myanmar), Cambodia, Timor-Leste, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam, at its own cost and expense with the Company supplying product for clinical trials and commercial sale. The Company continues to be entitled to royalties on future product sales by Ocumension. In April 2021, Ocumension announced its filing of a New Drug Application (“NDA”) for YUTIQ under Ocumension’s distinct name to Chinese regulatory authorities and it is under review. Ocumension has been granted approval to have its NDA submission reviewed based on the U.S. NDA data and the real-world data Ocumension has collected from marketing the product in Hainan Pilot Zone. In September 2021, Ocumension announced its receipt of approval from Chinese regulatory authorities for DEXYCU under Ocumension’s distinct name to conduct a Phase 3 clinical trial in China. In June 2022, Ocumension announced its receipt of approval of the NDA from Chinese regulatory authorities for YUTIQ under Ocumension’s distinct name.

Other than a fixed number of hours of technical assistance support to be provided at no cost by the Company, Ocumension is responsible for all development, regulatory and commercial costs, including any additional technical assistance requested. All technical assistance was provided during 2020. The Chief Executive Officer of Ocumension became a director of the Company starting December 31, 2020, pursuant to a Share Purchase Agreement pursuant to which the Company sold to Ocumension 3,010,722 shares of common stock, at which time, Ocumension became a related party of the Company.

During the three and six months ended June 30, 2022, in addition to $11,000 and $67,000 of revenue from product sales, respectively, the Company recognized approximately $49,000 and $108,000 of license and collaboration revenue, respectively, related to additional technical assistance. During the three and six months ended June 30, 2021, the Company recognized $91,000 and $360,000, respectively, related to additional technical assistance.

Exclusive License Agreement with Betta Pharmaceuticals, Co., Ltd.

On May 2, 2022, the Company entered into an Exclusive License Agreement (the “Betta License Agreement”) with Betta Pharmaceuticals Co., Ltd. (“Betta”), an affiliate of Equinox Sciences, LLC (“Equinox”) (see Note 11). Under the Betta License Agreement, the Company granted to Betta an exclusive, sublicensable, royalty-bearing license under certain of the Company’s intellectual property to develop, use (but not make or have made), sell, offer for sale and import the Company’s product candidate, EYP-1901, an investigational sustained delivery intravitreal anti-VEGF treatment that combines a bioerodible formulation of the Company’s proprietary sustained-release technology with the compound vorolanib (the “Licensed Product”), in the field of ophthalmology (the “Betta Field”) in the Greater Area of China, including China, the Hong Kong Special Administrative Region, the Macau Special Administrative Region, and Taiwan (the “Betta Territory”). The Company retained rights under the Company’s intellectual property to, among other things, conduct clinical trials on the Licensed Product in the Betta Field in the Betta Territory.

In consideration for the rights granted by the Company, Betta agreed to pay the Company tiered, mid-to-high single-digit royalties based upon annual net sales of Licensed Products in the Betta Territory. The royalties are payable on a Licensed Product-by-Licensed Product and region-by-region basis commencing on the first commercial sale of a Licensed Product in a region and continuing until the later of (i) the date that is twelve (12) years after first commercial sale of such Licensed Product in such region, and (ii) the first day of the month following the month in which a generic product corresponding to such Licensed Product is launched in the relevant region. The royalty rate is subject to reduction under certain circumstances, including when there is no valid claim of a licensed patent that covers a Licensed Product in a particular region.

Betta is responsible for all costs relating to development, registration, manufacturing, marketing, advertising, promotional, launch and sales activities in connection with the Licensed Products in the Betta Field in the Betta Territory. Betta is required to use commercially reasonable efforts to develop, seek regulatory approval for, and commercialize at least one Licensed Product in the Betta Field in the Betta Territory. The Betta License Agreement also requires Betta to achieve certain diligence milestones relating to regulatory filings, patient dosing and regulatory approval by certain specified deadlines set forth in the Betta License Agreement, subject to certain exceptions and extensions as set forth in the Betta License Agreement. Betta’s development activities will be conducted pursuant to a development plan subject to periodic updates. In the event that the Company conducts a global registrational clinical trial for a Licensed Product in the Betta Field, Betta will have the right to participate in such clinical trial by including clinical trial sites in the Betta Territory in accordance with the terms of the Betta License Agreement. The Company has also agreed to provide certain technology transfer and other support services to Betta subject to certain conditions and limitations set forth in the Betta License Agreement.

Research Collaborations

The Company from time to time enters into agreements to evaluate the potential use of its technology systems for sustained release of third-party partner drug candidates. Consideration received is generally recognized as revenue over the term of the research collaborations. Revenue recognition for consideration, if any, related to a license option right is assessed based on the terms of any such future license agreement or is otherwise recognized at the completion of the research collaborations. No revenues were recognized under research collaborations for the three months ended June 30, 2022 and 2021, and $0 and $60,000 for the six months ended June 30, 2022 and 2021, respectively.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Inventory

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Inventory

Inventory consisted of the following (in thousands):


	June 30, 2022		December 31, 2021
Raw materials	$	1,946	$	2,727
Work in process		595		405
Finished goods		713		484
Total inventory	$	3,254	$	3,616

Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

The reconciliation of intangible assets for the six months ended June 30, 2022 and 2021 (in thousands) was as follows:


	June 30,			June 30,
	2022			2021
Patented technologies
Gross carrying amount at beginning of period	$	68,322		$	68,322
Gross carrying amount at end of period		68,322			68,322
Accumulated amortization at beginning of period		(45,573	)		(43,113	)
Amortization expense		(1,230	)		(1,230	)
Accumulated amortization at end of period		(46,803	)		(44,343	)
Net book value at end of period	$	21,519		$	23,979

The Company amortizes intangible assets with finite lives on a straight-line basis over their respective estimated useful lives of 13 years. Amortization of intangible assets totaled $615,000 and $1.2 million for each of the three and six months ended June 30, 2022 and 2021, respectively.

In connection with the Company’s acquisition of Icon Bioscience, Inc., the initial purchase price was attributed to the DEXYCU product intangible asset. This finite-lived intangible asset is being amortized on a straight-line basis over its expected remaining useful life of 8.75 years at the rate of approximately $2.5 million per year. Amortization expense was reported as a component of cost of sales for the three and six months ended June 30, 2022 and 2021, respectively.

Accrued Expenses

6 Months Ended

Jun. 30, 2022

Payables and Accruals [Abstract]

Accrued Expenses

Accrued expenses consisted of the following at June 30, 2022 and December 31, 2021 (in thousands):


	June 30,		December 31,
	2022		2021

Personnel costs	$	4,881	$	7,321
Clinical trial costs		2,243		753
Professional fees		505		712
Sales chargebacks, rebates and other revenue reserves		3,920		2,974
Commissions due to DEXYCU commercial partner		1,837		1,518
Other		926		1,144
	$	14,312	$	14,422

Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

On May 17, 2018, the Company amended the lease for its headquarters in Watertown, Massachusetts. The original five-year lease for approximately 13,650 square feet of combined office and laboratory space was set to expire in April 2019. Under the amendment, the Company leased an additional 6,590 square feet of rentable area of the building, with a commencement date of September 10, 2018. The amendment extended the term of the lease for the combined space through May 31, 2025, and the landlord provided the Company a construction allowance of up to $670,750 to be applied toward renovations and improvements within the total space. On April 5, 2021, the Company further amended the lease to include an additional 1,409 square feet of rentable area of the building, through May 31, 2025, with a commencement date of July 1, 2021.

On March 8, 2022, the Company further amended the lease (i) to extend the term to May 31, 2028 for 13,650 square feet of laboratory and manufacturing operations space, with the landlord agreeing to provide the Company a construction allowance of up to $555,960 to be applied toward upgrades and improvements within the space; (ii) to rent an additional 11,999 square feet of office space within the building through May 31, 2028 ("New Premises”); and (iii) to terminate a portion of the lease comprising 7,999 square feet of office space in the building in accordance with its existing contractual term on May 31, 2025. The amendment also reinstated the Company’s right to extend the lease for the space it occupies after May 31, 2025 for one additional period of five years. Rent for the extension period would be at the fair market rent for comparable space in comparable properties in the Watertown area.

During the three months ended June 30, 2022, the Company recorded an out-of-period adjustment. This adjustment was identified and corrected during the current financial closing process, and related to the quarterly period ended March 31, 2022 but was not reflected in its prior filings because it was deemed immaterial. The out-of-period adjustment reflected a $2.9 million increase to the Company’s lease liabilities and ROU assets resulting from the lease amendment for the term extension of the laboratory and manufacturing operations space. This out-of-period adjustment did not impact the Company’s statement of operations or cash flows.

The lease for the New Premises has not yet commenced; however, the lease will create significant rights and obligations for the Company as the lessee. Under the terms of the amendment, once the Company and the landlord approve the space plan for the build-out of the premises, the landlord will bear the entire cost of constructing the leasehold improvements according to that plan. The Company will bear 100% of the cost of any change-orders that it initiates; however, such costs are not anticipated to be significant. The Company plans to occupy the New Premises once the landlord substantially completes its construction for the space, which is expected to occur in the third quarter of 2022, after which the Company’s obligation to pay base rent will begin.

The Company previously provided a cash-collateralized $150,000 irrevocable standby letter of credit as security for the Company’s obligations under the lease, which will remain in effect through the period that is four months beyond the expiration date of the amended lease. The Company will also be required to pay its proportionate share of certain operating costs and property taxes applicable to the leased premises in excess of new base year amounts.

In July 2017, the Company leased approximately 3,000 square feet of office space in Basking Ridge, New Jersey under a lease term extending through June 2022, with two five-year renewal options at 95% of the then-prevailing market rates. In addition to base rent, the Company was obligated to pay its proportionate share of building operating expenses and real estate taxes in excess of base year amounts. In June 2018, the Company subleased an additional 1,381 square feet of adjoining space from Caladrius Biosciences, Inc. (“Caladrius”) through May 2022. The Chief Executive Officer of Caladrius was a director of the Company through June 2020. Per the terms of the lease and sublease agreements, the Company does not have any residual value guarantees. The Company gave notice to the landlord that the Company would not be renewing the lease and the Company vacated the facility upon expiration.

The Company identified and assessed the following significant assumptions in recognizing its right-of-use (“ROU”) assets and corresponding lease liabilities:

•

As the Company’s leases do not specify an implicit rate, the Company estimated its incremental borrowing rate to calculate the present value of the lease payments. The Company utilized the borrowing rate under its CRG term loan facility (see Note 8) as the discount rate for all leases, with the exception of the amendment dated March 8, 2022, for which the Company utilized the borrowing rate under its SVB term loan facility as the discount rate.

•

Since the Company elected to account for each lease component and its associated non-lease components as a single combined component, all contract consideration was allocated to the combined lease component.

•

The expected lease terms include non-cancellable lease periods. Renewal option periods have not been included in the determination of the lease terms as they are not deemed reasonably certain of exercise.

•

Variable lease payments, such as common area maintenance, real estate taxes and property insurance are not included in the determination of the lease’s ROU asset or lease liability.

As of June 30, 2022, the weighted average remaining term of the Company’s operating leases was 5.6 years and the lease liabilities arising from obtaining ROU assets reflect a weighted average discount rate of 5.5%.

Supplemental balance sheet information related to operating leases as of June 30, 2022 and December 31, 2021 are as follows (in thousands):


	June 30,		December 31,
	2022		2021
Other current liabilities – operating lease current portion	$	301	$	645
Operating lease liabilities – noncurrent portion		4,826		1,860
Total operating lease liabilities	$	5,127	$	2,505

Operating lease expense recognized related to ROU assets were $288,000 and $213,000, excluding $3,000 and $9,000 of variable lease costs, for each of the three months ended June 30, 2022 and 2021, and $518,000 and $427,000, excluding $6,000 and $18,000 of variable lease costs, during each of the six months ended June 30, 2022 and 2021, respectively, and were included in general and administrative expense in the Company’s statement of comprehensive loss. Cash paid for amounts included in the measurement of operating lease liabilities was $238,000 and $221,000, for the three months ended June 30, 2022 and 2021, respectively, and $480,000 and $442,000 for the six months ended June 30, 2022 and 2021, respectively.

The Company is a party to two finance leases for laboratory equipment. The equipment leases expire in December 2022 and June 2023, respectively.

Supplemental balance sheet information related to the finance lease as of June 30, 2022 and December 31, 2021 are as follows (in thousands):


	June 30,			December 31,
	2022			2021
Property and equipment, at cost	$	270		$	371
Accumulated amortization		(172	)		(205	)
Property and equipment, net	$	98		$	166

Other current liabilities – finance lease current portion	$	105		$	137
Other long-term liabilities		—			36
Total finance lease liabilities	$	105		$	173

The components of finance lease expense recognized during the three and six months ended June 30, 2022 related to ROU assets was $34,000 and $68,000 and interest on lease liabilities was $4,000 and $8,000. Cash paid for amounts included in the measurement of finance lease liabilities were operating cash flows of $4,000 and $8,000 during the three and six months ended June 30, 2022, respectively, and financing cash flows of $34,000 and $67,000 for the three and six months ended June 30, 2022, respectively. The components of finance lease expense recognized during the three and six months ended June 30, 2021 related to ROU assets was $30,000 and $62,000 and interest on lease liabilities was $4,000 and $10,000. Cash paid for amounts included in the measurement of finance lease liabilities were operating cash flows of $4,000 and $10,000 during the three and six months ended June 30, 2021, respectively, and financing cash flows of $29,000 and $58,000 during the three and six months ended June 30, 2021, respectively.

As of June 30, 2022, the weighted average remaining term of the Company’s finance lease was 0.8 year and the lease liabilities arising from obtaining ROU assets reflect a weighted average discount rate of 12.5%.

The Company’s total future minimum lease payments under non-cancellable leases at June 30, 2022 were as follows (in thousands):


	Operating Leases			Finance Leases
Remainder of 2022	$	348		$	73
2023		701			37
2024		1,073			—
2025		1,113			—
2026		1,158			—
Thereafter		1,699			—
Total lease payments	$	6,092		$	110
Less imputed interest		(965	)		(5	)
Total	$	5,127		$	105

Loan Agreements

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Loan Agreements

CRG Term Loan Agreement

On February 13, 2019 (the “CRG Closing Date”), the Company entered into the CRG Loan Agreement among the Company, as borrower, CRG Servicing LLC, as administrative agent and collateral agent (the “Agent”), and the lenders party thereto from time to time, providing for a senior secured term loan of up to $60 million (the “CRG Loan”). On the CRG Closing Date, $35 million of the CRG Loan was advanced (the “CRG Initial Advance”). The Company utilized the proceeds from the CRG Initial Advance for the repayment in full of all outstanding obligations under its prior credit agreement (the “SWK Credit Agreement”) with SWK Funding LLC (“SWK”). In April 2019, the Company exercised its option to borrow an additional $15 million of the CRG Loan (the “CRG Second Advance”). The Company did not draw any additional funds under the CRG Loan by the final draw deadline of March 31, 2020.

The total debt discount related to the CRG Initial Advance was approximately $3.2 million and consisted of (i) the accrual of a $2.1 million exit fee; (ii) the $525,000 upfront fee; and (iii) $591,000 of legal and other transaction costs. The discount is being amortized as additional interest expense over the term of the Loan using the effective interest rate method.

The total debt discount related to the CRG Second Advance was approximately $1.1 million and consisted of (i) the accrual of a $900,000 exit fee; and (ii) the $225,000 upfront fee. The discount is being amortized as additional interest expense over the term of the Loan using the effective interest rate method.

The CRG Loan was originally scheduled to mature on December 31, 2023 and bore interest at a fixed rate of 12.5% per annum payable in arrears on the last business day of each calendar quarter. On December 17, 2020, the Company paid $15.0 million against the CRG Loan obligations in connection with the consummation of the RPA agreement (see Note 3). This payment included (i) a $13.8 million principal portion of the CRG Loan (ii) the $828,000 Exit Fee, and (iii) accrued and unpaid interest of $378,000 through that date. In connection with the partial prepayment of the CRG Loan, the Company recorded a loss on partial extinguishment of debt of $905,000 in the year ended December 31, 2020, associated with the write-off of the remaining balance of unamortized debt discount related to the partial prepayment of the CRG Loan.

On March 9, 2022, the Company repaid the remaining CRG Loan balance totaling $41.4 million with the proceeds from the SVB Loan Agreement (discussed below). This payment included (i) the remaining $38.2 million principal portion of the CRG Loan, (ii) a $2.3 million exit fee of 6% of the aggregate principal amount advanced under the CRG Loan, and (iii) accrued and unpaid interest of $0.9 million through the pay-off date. As a result of the early repayment of the CRG Loan, the Company recorded a loss on extinguishment of debt of $1.6 million for the quarter ended March 31, 2022 related to the write-off of the remaining balance of unamortized debt discount.

SVB Loan Agreement

On March 9, 2022 (the “SVB Closing Date”), the Company entered into a loan and security agreement (the “SVB Loan Agreement”) with Silicon Valley Bank (“SVB”) providing for (i) a senior secured term loan facility of $30.0 million (the “Term Facility”) and (ii) a senior secured revolving credit facility of up to $15.0 million (the “Revolving Facility” and together with the Term Facility, the “Credit Facilities”). The maximum amount available for borrowing at any time under the Revolving Facility is limited to a borrowing base valuation of the Company’s eligible accounts receivable. On the SVB Closing Date, $30.0 million of the Term Facility and $11.5 million of the Revolving Facility, were advanced, to pay off the CRG Loan, including the accrued interest through that date. The Revolving Facility is classified as short-term borrowings in the consolidated balance sheets.

The loans under the Credit Facilities are due and payable on January 1, 2027 (the “SVB Maturity Date”). The Credit Facilities bear interest that is payable monthly in arrears at a per annum rate (subject to increase during an event of default) equal to (i) with respect to the Term Facility, the greater of (x) the Wall Street Journal prime rate plus 2.25% and (y) 5.50% and (ii) with respect to the Revolving Facility, the Wall Street Journal Prime Rate. An unused commitment fee of 0.25% per annum applies to unutilized borrowing capacity under the Revolving Facility. Commencing on February 1, 2024, the Company is required to repay the principal of the Term Facility in 36 consecutive equal monthly installments. At maturity or if earlier prepaid, the Company will also be required to pay an exit fee equal to 2.00% of the aggregate principal amount of the Term Facility.

The repayment of all unpaid principal and accrued interest under the Credit Facilities may be accelerated upon consummation of a specified change of control transaction or the occurrence of certain other events of default (as specified in the SVB Loan Agreement). Subject to certain exceptions, the Company is also required to make mandatory prepayments of outstanding loans under the Credit Facilities with the proceeds of assets sales and insurance proceeds, which amounts in the case of the Revolving Facility, subject to the conditions set forth in the SVB Loan Agreement, may be re-borrowed. All voluntary and mandatory prepayments of the Term Facility are subject to the payment of prepayment premiums as follows: (i) if prepayment occurs on or prior to the first anniversary of the SVB Closing Date, an amount equal to 3.0% of the aggregate outstanding principal amount of the Term Facility being prepaid, (ii) if prepayment occurs after the first anniversary of the SVB Closing Date and on or prior to the second anniversary of the SVB Closing Date, 2.0% of the aggregate outstanding principal amount of the Term Facility being prepaid, (iii) if prepayment occurs after the second anniversary of the SVB Closing Date and on or prior to the third anniversary of the SVB Closing Date, 1.0% of the aggregate outstanding principal amount of the Term Facility being prepaid and (iv) if prepayment occurs after the third anniversary of the SVB Closing Date but prior to the SVB Maturity Date, an amount equal to 0.50% of the aggregate outstanding principal amount of the Term Facility being prepaid. The prepayment of the Term Facility in full is also subject to the payment of an exit fee of $600,000. The Company may voluntarily terminate the Revolving Facility at any time, subject to the payment of a termination fee as follows: (i) if such termination occurs on or prior to the first anniversary of the SVB Closing Date, an amount equal to 3.0% of the Revolving Facility and (ii) if such termination occurs after the first anniversary of the SVB Closing Date, 1.0% of the Revolving Facility.

The obligations of the Company under the SVB Loan Agreement are secured by a pledge of substantially all of the Company’s assets, excluding intellectual property. Certain of the Company’s future subsidiaries will be required to become co-borrowers under the SVB Loan Agreement or guarantee the obligations of the Company under the SVB Loan Agreement. In addition, such subsidiaries will be required to pledge substantially all of their assets, excluding intellectual property, to secure the obligations of the Company under the SVB Loan Agreement.

The SVB Loan Agreement contains affirmative and negative covenants customary for financings of this type, including limitations on the Company and its subsidiaries’ abilities, among other things, to incur additional debt, grant or permit additional liens, make investments and acquisitions, merge or consolidate with others, dispose of assets, pay dividends and distributions, enter into affiliate transactions and change its line of business, in each case, subject to certain exceptions. In addition, the SVB Loan Agreement contains the following quarterly financial covenants requiring the Company to maintain either:

•

minimum product revenue from YUTIQ and DEXYCU assessed on a quarterly basis commencing from the three-month period ending on March 31, 2022 through the SVB Maturity Date, with such minimum quarterly product revenue ranging from approximately $7.8 million to approximately $11.5 million in fiscal year 2022. Such minimum quarterly product revenue will be subject to incremental increases in fiscal year 2023 and will thereafter be such amounts as agreed upon between the Company and SVB based on certain agreed-upon factors commencing for the three-month period ending on March 31, 2024 and for each three-month period thereafter through the SVB Maturity Date; or

•

if the Company is unable to achieve the minimum quarterly product revenue level required as of the end of any three-month period, cash and cash equivalents in an amount equal to the greater of (i) $50,000,000 and (ii) the Company’s six-month Cash Burn (as defined in the SVB Loan Agreement).

Amortization of debt discount under the SVB Loan Agreement totaled $73,000 and $91,000 for the three and six months ended June 30, 2022. Commitment fees under the revolving facility were immaterial.

The Company’s scheduled principal payments for debt at June 30, 2022 were as follows (in thousands):


Remainder of 2022		—
2023		—
2024		9,167
2025		10,000
2026		10,000
Thereafter		833
Total	$	30,000

Stockholders' Equity

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

Equity Financings

Common Stock Offering

In February 2021, the Company sold 10,465,000 shares of its common stock in an underwritten public offering at a price of $11.00 per share, including the exercise in full by the underwriters of their option to purchase up to 1,365,000 additional shares of the Company’s common stock. The gross proceeds of the offering to the Company were approximately $115.1 million. Underwriter discounts and commissions and other share issue costs totaled approximately $7.2 million.

ATM Facility

In August 2020, the Company entered into an at-the-market facility (the “ATM Facility”) with Cantor Fitzgerald & Co (“Cantor”). Pursuant to the ATM Facility, the Company may, at its option, offer and sell shares of its common stock from time to time, through or to Cantor, acting as sales agent. The Company will pay Cantor a commission of 3.0% of the gross proceeds from any future sales of such shares.

During the three and six months ended June 30, 2022, the Company did not sell any shares of its common stock under the ATM Facility.

During the three months ended June 30, 2021, the Company did not sell any shares of its common stock under the ATM facility. During the six months ended June 30, 2021, the Company sold 48,538 shares of its common stock, at a weighted average price of $11.37 per share, for gross proceeds of approximately $552,000. Share issue costs, including sales agent commissions, totaled approximately $53,000 during the six months ended June 30, 2021.

Warrants to Purchase Common Shares

The following table provides a reconciliation of fixed price warrants to purchase shares of the Company’s common stock for the six months ended June 30, 2022 and 2021:


	Six Months Ended June 30,
	2022				2021
			Weighted				Weighted
			Average				Average
	Number of		Exercise		Number of		Exercise
	Warrants		Price		Warrants		Price
Balance at beginning of period		48,683	$	12.33		48,683	$	12.33
Balance and exercisable at end of period		48,683	$	12.33		48,683	$	12.33

Pursuant to a credit agreement, the Company issued a warrant to SWK Funding LLC to purchase (i) 40,910 shares of the Company’s common stock on March 28, 2018 at an exercise price of $11.00 per share with a seven-year term and (ii) 7,773 shares of the Company’s common stock on June 26, 2018 at an exercise price of $19.30 per share with a seven-year term. At June 30, 2022, the weighted average remaining life of the warrant was approximately 2.8 years.

- 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

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 13
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (c)
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
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-Subparagraph (SX 210.3-04)
-URI https://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=126731327&loc=SL126733271-114008

+ Details

Share-Based Payment Awards

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Share-Based Payment Awards

10.

Share-Based Payment Awards

Equity Incentive Plan

The 2016 Long-Term Incentive Plan (the “2016 Plan”), approved by the Company’s stockholders on December 12, 2016 (the “Adoption Date”), provides for the issuance of up to 300,000 shares of the Company’s common stock reserved for issuance under the 2016 Plan plus any additional shares of the Company’s common stock that were available for grant under the 2008 Incentive Plan (the “2008 Plan”) at the Adoption Date or would otherwise become available for grant under the 2008 Plan as a result of subsequent termination or forfeiture of awards under the 2008 Plan. At the Company’s Annual Meeting of Stockholders held on June 25, 2019, the Company’s stockholders approved an amendment to the 2016 Plan to increase the number of shares authorized for issuance by 1,100,000 shares. At the Company’s Annual Meeting of Stockholders held on June 22, 2021, the Company’s stockholders approved an amendment to the 2016 Plan to increase the number of shares authorized for issuance by 2,500,000 shares. At June 30, 2022, a total of approximately 82,000 shares were available for new awards.

The Company also granted non-statutory stock options to new employees as inducement awards to enter into employment with the Company. The grants were approved by the Compensation Committee of the Board of Directors and awarded in accordance with Nasdaq Listing Rule 5635(c)(4). Although not awarded under the 2016 Plan or the 2008 Plan, the grants are subject to and governed by the terms and conditions of the 2016 Plan or 2008 Plan, as applicable.

Stock Options

The following table provides a reconciliation of stock option activity under the Company’s equity incentive plans and for inducement awards for the six months ended June 30, 2022:


						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
	Number			Exercise		Contractual		Intrinsic
	of Options			Price		Life		Value
						(in years)		(in thousands)
Outstanding at January 1, 2022		2,517,680		$	16.49
Granted		1,643,300			10.43
Exercised		(4,223	)		9.44
Forfeited		(98,470	)		11.98
Expired		(6,000	)		21.00
Outstanding at June 30, 2022		4,052,287		$	14.14		8.28	$	72,444
Exercisable at June 30, 2022		1,306,830		$	19.82		6.26	$	27,575

The Company has granted stock options with 25% of the option vesting after one year followed by ratable monthly vesting over the remaining three years. Nonemployee awards are granted similar to the Company’s employee awards. All option grants have a 10-year term. Options to purchase a total of 568,000 shares of the Company’s common stock vested during the six months ended June 30, 2022. Starting February 2021, the Company (i) ceased vesting ratable monthly over four years and (ii) retained 25% vesting after one year followed by ratable monthly vesting over the remaining three years.

In determining the grant date fair value of option awards during the six months ended June 30, 2022, the Company applied the Black-Scholes option pricing model based on the following key assumptions:


Option life (in years)		5.50 - 6.08
Stock volatility		76% - 78%
Risk-free interest rate		1.46% - 3.36%
Expected dividends		0.0%

The following table summarizes information about employee, non-executive director and external consultant stock options for the six months ended June 30, 2022 (in thousands except per share amount):


	Six Months
	Ended
	June 30, 2022
Weighted average grant date fair value per share	$	7.03
Total cash received from exercise of stock options		40
Total intrinsic value of stock options exercised		13

Time-Vested Restricted Stock Units

Time-vested restricted stock units (“RSUs”) issued to date under the 2016 Plan generally vest on a ratable annual basis over 3 years. The related stock-based compensation expense is recorded over the requisite service period, which is the vesting period. The fair value of all time-vested RSUs is based on the closing share price of the Company’s common stock on the date of grant.

The following table provides a reconciliation of RSU activity under the 2016 Plan for the six months ended June 30, 2022:


				Weighted
	Number of			Average
	Restricted			Grant Date
	Stock Units			Fair Value
Nonvested at January 1, 2022		291,575		$	13.19
Granted		409,500			10.09
Vested		(140,402	)		13.44
Forfeited		(18,793	)		11.31
Nonvested at June 30, 2022		541,880		$	10.85

At June 30, 2022, the weighted average remaining vesting term of the RSUs was 1.58 years.

Employee Stock Purchase Plan

On June 25, 2019, the Company’s stockholders approved the adoption of the EyePoint Pharmaceuticals, Inc. 2019 Employee Stock Purchase Plan (the “ESPP”) and authorized up to 110,000 shares of common stock reserved for issuance to participating employees. At the Company’s Annual Meeting of Stockholders held on June 22, 2021, the Company’s stockholders approved an amendment to the ESPP to increase the number of shares authorized for issuance by 250,000 shares. The ESPP allows qualified participants to purchase the Company’s common stock twice a year at 85% of the lesser of the average of the high and low sales price of the Company’s common stock on (i) the first trading day of the relevant offering period and (ii) the last trading day of the relevant offering period. The number of shares of the Company’s common stock each employee may purchase under this plan, when combined with all other employee stock purchase plans, is limited to the lower of an aggregate fair market value of $25,000 during each calendar year, or 5,000 shares of the Company’s common stock in any one offering period. The Company has maintained consecutive six-month offering periods since August 1, 2019. As of June 30, 2022, 28,504 shares of the Company’s common stock were issued pursuant to the ESPP.

The Company estimated the fair value of the option component of the ESPP shares at the date of grant using a Black-Scholes valuation model. During the three and six months ended June 30, 2022, the compensation expense from ESPP shares was approximately $38,000 and $71,000. During the three and six months ended June 30, 2021, the compensation expense from ESPP shares was immaterial.

Stock-Based Compensation Expense

The Company’s consolidated statements of comprehensive loss included total compensation expense from stock-based payment awards for the three and six months ended June 30, 2022 and 2021, respectively, as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Compensation expense included in:
Research and development	$	2,011	$	255	$	3,485	$	518
Sales and marketing		496		241		905		481
General and administrative		1,633		684		3,227		1,169
	$	4,140	$	1,180	$	7,617	$	2,168

At June 30, 2022, there was approximately $17.1 million of unrecognized compensation expense related to outstanding equity awards under the 2016 Plan, the 2008 Plan, the inducement awards and the ESPP that is expected to be recognized as expense over a weighted average period of approximately 1.75 years.

License and Asset Purchase Agreements

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

License and Asset Purchase Agreements

11.

License and Asset Purchase Agreements

Equinox Science, LLC

In February 2020, the Company entered into an Exclusive License Agreement (the “Equinox License Agreement”) with Equinox, pursuant to which Equinox granted the Company an exclusive, sublicensable, royalty-bearing right and license to certain patents and other Equinox intellectual property to research, develop, make, have made, use, sell, offer for sale and import the compound vorolanib and any pharmaceutical products comprising the compound for local delivery to the eye for the prevention or treatment of age-related macular degeneration, diabetic retinopathy and retinal vein occlusion using the Company’s proprietary localized delivery technologies (the “Original Field”), in each case, throughout the world except China, Hong Kong, Taiwan and Macau (the “Company Territory”).

In consideration for the rights granted by Equinox, the Company (i) made a one time, non-refundable, non-creditable upfront cash payment of $1.0 million to Equinox in February 2020, and (ii) agreed to pay milestone payments totaling up to $50 million upon the achievement of certain development and regulatory milestones, consisting of (a) completion of a Phase II clinical trial for the compound or a licensed product, (b) the filing of a new drug application or foreign equivalent for the compound or a licensed product in the United States, European Union or United Kingdom and (c) regulatory approval of the compound or a licensed product in the United States, European Union or United Kingdom.

The Company also agreed to pay Equinox tiered royalties based upon annual net sales of licensed products in the Company Territory. The royalties are payable with respect to a licensed product in a particular country in the Company Territory on a country-by-country and licensed product-by-licensed product basis until the later of (i) twelve years after the first commercial sale of such licensed product in such country and (ii) the first day of the month following the month in which a generic product corresponding to such licensed product is launched in such country. The royalty rates range from the high-single digits to low-double digits depending on the level of annual net sales. The royalty rates are subject to reduction during certain periods when there is no valid patent claim that covers a licensed product in a particular country.

On May 2, 2022, concurrent with the Company entering into the Betta License Agreement, the Company entered into Amendment #1 to the Equinox License Agreement, pursuant to which the Original Field was expanded to cover the prevention or treatment of ophthalmology indications using the Company’s proprietary localized delivery technologies and certain conforming changes were made to the Equinox License Agreement in connection therewith.

No R&D expense was recorded for the three and six months ended June 30, 2022 for this license. No R&D expense was recorded for the three and six months ended June 30, 2021.

Fair Value Measurements

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

12.

Fair Value Measurements

The following tables summarize the Company’s assets by significant categories carried at fair value measured on a recurring basis at June 30, 2022 and December 31, 2021 by valuation hierarchy (in thousands):


	June 30, 2022
	Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Cash Equivalents		Marketable Securities
Level 1:
Money market funds	$	62,178	$	—	$	—		$	62,178	$	62,178	$	—
Subtotal	$	62,178	$	—	$	—		$	62,178	$	62,178	$	—
Level 2:
Commercial paper	$	30,926	$	—	$	—		$	30,926	$	4,999	$	25,927
U.S. treasury securities		63,345		—		(239	)		63,106		—		63,106
Subtotal	$	94,271	$	—	$	(239	)	$	94,032	$	4,999	$	89,033
Total	$	156,449	$	—	$	(239	)	$	156,210	$	67,177	$	89,033


	December 31, 2021
	Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash Equivalents		Marketable Securities
Level 1:
Money market funds	$	155,551	$	—	$	—	$	155,551	$	155,551	$	—
Subtotal	$	155,551	$	—	$	—	$	155,551	$	155,551	$	—
Level 2:
Commercial paper	$	49,514	$	—	$	—	$	49,514	$	16,549	$	32,965
Subtotal	$	49,514	$	—	$	—	$	49,514	$	16,549	$	32,965
Total	$	205,065	$	—	$	—	$	205,065	$	172,100	$	32,965

At June 30, 2022, substantially all of the Company’s interest-bearing cash equivalent balances, were concentrated in one U.S. Government institutional money market fund that had investments consisting primarily of U.S. Government Agency debt, U.S. Treasury Repurchase Agreements and U.S. Government Agency Repurchase Agreements. Generally, these deposits may be redeemed upon demand and, therefore, the Company believes they have minimal risk. Marketable securities consist of investments with an original or remaining maturity of greater than three months but less than one year at the date of purchase. The Company had investments of $89.0 million in marketable securities at June 30, 2022.

At December 31, 2021, a total of $155.6 million, or 90.4% of the Company’s interest-bearing cash equivalent balances, were concentrated in one U.S. Government institutional money market fund that had investments consisting primarily of U.S. Government Agency debt, U.S. Treasury debt, U.S. Treasury Repurchase Agreements and U.S. Government Agency Repurchase Agreements. $16.5 million, or 9.6% of the Company’s interest-bearing cash equivalent balances consisted of investment-grade commercial paper. Generally, these investments may be sold upon demand and, therefore, the Company believes they have minimal risk. The Company had investments of $33.0 million in marketable securities at December 31, 2021.

The Company’s cash equivalents and marketable securities are classified within Level 1 or Level 2 on the basis of valuations using quoted market prices or alternative pricing sources and models utilizing market observable inputs, respectively. The marketable securities have been valued on the basis of valuations provided by third-party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and ask prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security, and have been classified as Level 2.

The carrying amounts of accounts receivable, accounts payable and accrued expenses approximate fair value because of their short-term maturity.

The carrying amounts of the short-term borrowings and long-term debt under the Company’s SVB Loan Agreement approximate the estimated fair value. These borrowings under the Credit Facilities have a variable interest rate structure and are classified within Level 2 of the fair value hierarchy.

- 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

Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Contingencies

13.

Contingencies

Legal Proceedings

The Company is subject to various routine legal proceedings and claims incidental to its business, which management believes will not have a material effect on the Company’s financial position, results of operations or cash flows.

Net Loss per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Net Loss per Share

14.

Net Loss per Share

Basic net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. For periods in which the Company reports net income, diluted net income per share is determined by adding to the basic weighted average number of common shares outstanding the total number of dilutive common equivalent shares using the treasury stock method, unless the effect is anti-dilutive. Potentially dilutive shares were not included in the calculation of diluted net loss per share for each of the three and six months ended June 30, 2022 and 2021 as their inclusion would be anti-dilutive.

Potential common stock equivalents excluded from the calculation of diluted earnings per share because the effect would have been anti-dilutive were as follows:


	Six Months Ended June 30,
	2022		2021
Stock options		4,052,287		2,099,810
ESPP		18,394		10,793
Warrants		48,683		48,683
Restricted stock units		541,880		290,917
		4,661,244		2,450,203

Subsequent Events

6 Months Ended

Jun. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

15.

Subsequent Events

On July 26, 2022, the Center for Medicare & Medicaid Services (“CMS”) published in the Federal Register the calendar year (CY) 2023 Medicare Hospital Outpatient Prospective Payment System (“OPPS”) and ASC Payment System Proposed Rule (“Proposed Rule”). If the Proposed Rule is finalized, in the relevant part, without changes, it would result in loss of pass-through related separate payment for DEXYCU, when furnished in hospital outpatient department settings reimbursed by Medicare. This would reduce the amount of Medicare reimbursement provided to the Company’s DEXYCU customers and, if finalized without changes, result in a significant reduction in the Company’s DEXYCU product revenues (see Note 3). Furthermore, a significant reduction in the Company’s DEXYCU product revenues will result in a material impairment of the Company’s net intangible asset related to DEXYCU which has a carrying value of $21.5 million at June 30, 2022 (see Note 5).

The Proposed Rule is currently in a comment period which ends on September 13, 2022. A Final Rule is expected to be issued in early November 2022. In the Final Rule, CMS may adopt or modify the Proposed Rule’s proposals related to DEXYCU. If the Proposed Rule’s proposals related to DEXYCU are finalized, they would be effective on January 1, 2023. The Company will monitor the status of the Proposed Rule and evaluate the impact on its operations, cash flows, intangible asset and its DEXYCU inventory balances when the rule is finalized. No adjustments have been made to the Company’s June 30, 2022 financial statements as a result of the Proposed Rule.

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Revenue Recognition

Revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, Revenue from Contracts with Customers (“ASC 606”), the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within the contract, determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Sales, value-add and other taxes collected on behalf of third parties are excluded from revenue.

Product sales, net — The Company sells YUTIQ and DEXYCU to a limited number of specialty distributors and specialty pharmacies (collectively the “Distributors”) in the U.S., with whom the Company has entered into formal agreements, for delivery to physician practices for YUTIQ and to hospital outpatient departments and ambulatory surgical centers for DEXYCU. The Company recognizes revenue on sales of its products when Distributors obtain control of the products, which occurs at a point in time, typically upon delivery. In addition to agreements with Distributors, the Company also enters into arrangements with healthcare providers, ambulatory surgical centers and payors that provide for government mandated and/or privately negotiated rebates, chargebacks and discounts with respect to the purchase of the Company’s products from Distributors.

Reserves for variable consideration — Product sales are recorded at the wholesale acquisition costs, net of applicable reserves for variable consideration. Components of variable consideration include trade discounts and allowances, provider chargebacks and discounts, payor rebates, product returns and other allowances that are offered within contracts between the Company and its Distributors, payors and other contracted purchasers relating to the Company’s product sales. These reserves, as detailed below, are based on the amounts earned, or to be claimed on the related sales, and are classified either as reductions of product revenue and accounts receivable or a current liability, depending on how the amount is to be settled. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the respective underlying contracts. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results in the future vary from the estimates, the Company adjusts product revenue and earnings in the period such variances become known.

Distribution fees — The Company compensates its Distributors for services explicitly stated in the Company’s contracts and are recorded as a reduction of revenue in the period the related product sale is recognized.

Provider chargebacks and discounts — Chargebacks are discounts that represent the estimated obligations resulting from contractual commitments to sell products at prices lower than the list prices charged to the Company’s Distributors. These Distributors charge the Company for the difference between what they pay for the product and the Company’s contracted selling price. These reserves are established in the same period that the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability. Reserves for chargebacks consist of amounts that the Company expects to pay for units that remain in the distribution channel inventories at each reporting period-end that the Company expects will be sold under a contracted selling price, and chargebacks that Distributors have claimed, but for which the Company has not yet settled.

Government rebates — The Company is subject to discount obligations under state Medicaid programs and Medicare. These reserves are recorded in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability which is included in accrued expenses and other current liabilities on the condensed consolidated

balance sheets. The Company’s liability for these rebates consists of invoices received for claims from prior quarters that have not been paid or for which an invoice has not yet been received, estimates of claims for the current quarter, and estimated future claims that will be made for product that has been recognized as revenue, but which remains in the distribution channel inventories at the end of each reporting period.

Payor rebates — The Company contracts with certain private payor organizations, primarily insurance companies, for the payment of rebates with respect to utilization of its products. The Company estimates these rebates and records such estimates in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability.

Co-Payment assistance — The Company offers co-payment assistance to commercially insured patients meeting certain eligibility requirements. The calculation of the accrual for co-pay assistance is based on an estimate of claims and the cost per claim that the Company expects to receive associated with product that has been recognized as revenue.

Product returns — The Company generally offers a limited right of return based on its returned goods policy, which includes damaged product and remaining shelf life. The Company estimates the amount of its product sales that may be returned and records this estimate as a reduction of revenue in the period the related product revenue is recognized, as well as reductions to trade receivables, net on the condensed consolidated balance sheets.

License and collaboration agreement revenue — The Company analyzes each element of its license and collaboration arrangements to determine the appropriate revenue recognition. The terms of the license agreement may include payment to the Company of non-refundable up-front license fees, milestone payments if specified objectives are achieved, and/or royalties on product sales. The Company recognizes revenue from upfront payments at a point in time, typically upon fulfilling the delivery of the associated intellectual property to the customer.

If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. The Company determines standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations.

The Company recognizes sales-based milestone payments as revenue upon the achievement of the cumulative sales amount specified in the contract in accordance with ASC 606-10-55-65. For those milestone payments which are contingent on the occurrence of particular future events, the Company determines that these need to be considered for inclusion in the calculation of total consideration from the contract as a component of variable consideration using the most-likely amount method. As such, the Company assesses each milestone to determine the probability and substance behind achieving each milestone. Given the inherent uncertainty associated with these future events, the Company will not recognize revenue from such milestones until there is a high probability of occurrence, which typically occurs near or upon achievement of the event.

When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in paragraph 606-10-32-18, the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. None of the Company’s contracts contained a significant financing component as of June 30, 2022.

Royalties — The Company recognizes revenue from license arrangements with its commercial partners’ net sales of products. Such revenues are included as royalty income. In accordance with ASC 606-10-55-65, royalties are recognized when the subsequent sale of the commercial partner’s products occurs. The Company’s commercial partners are obligated to report their net product sales and the resulting royalty due to the Company typically within 60-days from the end of each quarter. Based on historical product sales, royalty receipts and other relevant information, the Company recognizes royalty income each quarter and subsequently determines a true-up when it receives royalty reports and payment from its commercial partners. Historically, these true-up adjustments have been immaterial.

Sale of Future Royalties — The Company has sold its rights to receive certain royalties on product sales. In the circumstance where the Company has sold its rights to future royalties under a royalty purchase agreement and also maintains limited continuing involvement in the arrangement (but not significant continuing involvement in the generation of the cash flows that are due to the purchaser), the Company defers recognition of the proceeds it receives for the sale of royalty streams and recognizes such unearned revenue as revenue under the units-of-revenue method over the life of the underlying license agreement. Under the units-of-revenue

method, amortization for a reporting period is calculated by computing a ratio of the proceeds received from the purchaser to the total payments expected to be made to the purchaser over the term of the agreement, and then applying that ratio to the period’s cash payment.

Estimating the total payments expected to be received by the purchaser over the term of such arrangements requires management to use subjective estimates and assumptions. Changes to the Company’s estimate of the payments expected to be made to the purchaser over the term of such arrangements could have a material effect on the amount of revenues recognized in any particular period.

Research Collaborations — The Company recognizes revenue over the term of the statements of work under any funded research collaborations. Revenue recognition for consideration, if any, related to a license option right is assessed based on the terms of any such future license agreement or is otherwise recognized at the completion of the research collaborations.

Please refer to Note 3 for further details on the license and collaboration agreements into which the Company has entered and corresponding amounts of revenue recognized during the current and prior year periods.

Cost of sales, excluding amortization of acquired intangible assets — Cost of sales, excluding amortization of acquired intangible assets, consist of costs associated with the manufacture of YUTIQ and DEXYCU, certain period costs, product shipping and, as applicable, royalty expense. The inventory costs for YUTIQ include purchases of various components, the active pharmaceutical ingredient (“API”) and internal labor and overhead for the product manufactured in the Company’s Watertown, MA facility. The inventory costs for DEXYCU include purchased components, the API and third-party manufacturing and assembly.

For the three months ended June 30, 2022 and 2021, the Company accrued DEXYCU product revenue-based royalty expense of $441,000 and $648,000, respectively, as a component of cost of sales. For the six months ended June 30, 2022 and 2021, the Company accrued DEXYCU product revenue-based royalty expense of $1.1 million and $1.1 million, respectively, as a component of cost of sales.

Revenue (Tables)

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

Net product revenues by product for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021

YUTIQ (A)	$	7,421	$	4,166	$	12,032	$	7,196
DEXYCU (B)		3,897		4,572		8,296		8,344
Total product sales, net	$	11,318	$	8,738	$	20,328	$	15,540

(a)

(b)

Product Revenue Allowances and Reserves

The following table summarizes activity in each of the product revenue allowance and reserve categories for the six months ended June 30, 2022 and 2021 (in thousands):


	Chargebacks, Discounts			Government and Other
	and Fees			Rebates			Returns			Total
Beginning balance at January 1, 2022	$	1,153		$	1,821		$	379		$	3,353
Provision related to sales in the current year		6,580			3,554			329			10,463
Adjustments related to prior period sales											—
Deductions applied and payments made		(5,698	)		(3,490	)		(198	)		(9,386	)
Ending balance at June 30, 2022	$	2,035		$	1,885		$	510		$	4,430

	Chargebacks, Discounts			Government and Other
	and Fees			Rebates			Returns			Total
Beginning balance at January 1, 2021	$	574		$	535		$	603		$	1,712
Provision related to sales in the current year		2,932			1,965			497			5,394
Adjustments related to prior period sales		(50	)		(22	)		(100	)		(172	)
Deductions applied and payments made		(2,229	)		(1,121	)		(581	)		(3,931	)
Ending balance at June 30, 2021	$	1,227		$	1,357		$	419		$	3,003

Inventory (Tables)

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory consisted of the following (in thousands):


	June 30, 2022		December 31, 2021
Raw materials	$	1,946	$	2,727
Work in process		595		405
Finished goods		713		484
Total inventory	$	3,254	$	3,616

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Reconciliation of Intangible Assets

The reconciliation of intangible assets for the six months ended June 30, 2022 and 2021 (in thousands) was as follows:


	June 30,			June 30,
	2022			2021
Patented technologies
Gross carrying amount at beginning of period	$	68,322		$	68,322
Gross carrying amount at end of period		68,322			68,322
Accumulated amortization at beginning of period		(45,573	)		(43,113	)
Amortization expense		(1,230	)		(1,230	)
Accumulated amortization at end of period		(46,803	)		(44,343	)
Net book value at end of period	$	21,519		$	23,979

Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2022

Payables and Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses consisted of the following at June 30, 2022 and December 31, 2021 (in thousands):


	June 30,		December 31,
	2022		2021

Personnel costs	$	4,881	$	7,321
Clinical trial costs		2,243		753
Professional fees		505		712
Sales chargebacks, rebates and other revenue reserves		3,920		2,974
Commissions due to DEXYCU commercial partner		1,837		1,518
Other		926		1,144
	$	14,312	$	14,422

Leases (Tables)

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Schedule of Supplemental Balance Sheet Information Related to Operating Leases

Supplemental balance sheet information related to operating leases as of June 30, 2022 and December 31, 2021 are as follows (in thousands):


	June 30,		December 31,
	2022		2021
Other current liabilities – operating lease current portion	$	301	$	645
Operating lease liabilities – noncurrent portion		4,826		1,860
Total operating lease liabilities	$	5,127	$	2,505

Schedule of Supplemental Balance Sheet Information Related to Finance Lease

Supplemental balance sheet information related to the finance lease as of June 30, 2022 and December 31, 2021 are as follows (in thousands):


	June 30,			December 31,
	2022			2021
Property and equipment, at cost	$	270		$	371
Accumulated amortization		(172	)		(205	)
Property and equipment, net	$	98		$	166

Other current liabilities – finance lease current portion	$	105		$	137
Other long-term liabilities		—			36
Total finance lease liabilities	$	105		$	173

Future Minimum Lease Payments Under Non-Cancellable Leases

The Company’s total future minimum lease payments under non-cancellable leases at June 30, 2022 were as follows (in thousands):


	Operating Leases			Finance Leases
Remainder of 2022	$	348		$	73
2023		701			37
2024		1,073			—
2025		1,113			—
2026		1,158			—
Thereafter		1,699			—
Total lease payments	$	6,092		$	110
Less imputed interest		(965	)		(5	)
Total	$	5,127		$	105

Loan Agreements (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Scheduled Principal Payments for Debt

The Company’s scheduled principal payments for debt at June 30, 2022 were as follows (in thousands):


Remainder of 2022		—
2023		—
2024		9,167
2025		10,000
2026		10,000
Thereafter		833
Total	$	30,000

Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Summary of Reconciliation of Warrants to Purchase Common Stock

The following table provides a reconciliation of fixed price warrants to purchase shares of the Company’s common stock for the six months ended June 30, 2022 and 2021:


	Six Months Ended June 30,
	2022				2021
			Weighted				Weighted
			Average				Average
	Number of		Exercise		Number of		Exercise
	Warrants		Price		Warrants		Price
Balance at beginning of period		48,683	$	12.33		48,683	$	12.33
Balance and exercisable at end of period		48,683	$	12.33		48,683	$	12.33

Share-Based Payment Awards (Tables)

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock Option Activity Under Plan

The following table provides a reconciliation of stock option activity under the Company’s equity incentive plans and for inducement awards for the six months ended June 30, 2022:


						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
	Number			Exercise		Contractual		Intrinsic
	of Options			Price		Life		Value
						(in years)		(in thousands)
Outstanding at January 1, 2022		2,517,680		$	16.49
Granted		1,643,300			10.43
Exercised		(4,223	)		9.44
Forfeited		(98,470	)		11.98
Expired		(6,000	)		21.00
Outstanding at June 30, 2022		4,052,287		$	14.14		8.28	$	72,444
Exercisable at June 30, 2022		1,306,830		$	19.82		6.26	$	27,575

Schedule of Key Assumptions Used

In determining the grant date fair value of option awards during the six months ended June 30, 2022, the Company applied the Black-Scholes option pricing model based on the following key assumptions:


Option life (in years)		5.50 - 6.08
Stock volatility		76% - 78%
Risk-free interest rate		1.46% - 3.36%
Expected dividends		0.0%

Summary of Information about Stock Options

The following table summarizes information about employee, non-executive director and external consultant stock options for the six months ended June 30, 2022 (in thousands except per share amount):


	Six Months
	Ended
	June 30, 2022
Weighted average grant date fair value per share	$	7.03
Total cash received from exercise of stock options		40
Total intrinsic value of stock options exercised		13

Summary of Restricted Stock Unit Activity

The following table provides a reconciliation of RSU activity under the 2016 Plan for the six months ended June 30, 2022:


				Weighted
	Number of			Average
	Restricted			Grant Date
	Stock Units			Fair Value
Nonvested at January 1, 2022		291,575		$	13.19
Granted		409,500			10.09
Vested		(140,402	)		13.44
Forfeited		(18,793	)		11.31
Nonvested at June 30, 2022		541,880		$	10.85

Compensation Expense from Stock-Based Payment Awards


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Compensation expense included in:
Research and development	$	2,011	$	255	$	3,485	$	518
Sales and marketing		496		241		905		481
General and administrative		1,633		684		3,227		1,169
	$	4,140	$	1,180	$	7,617	$	2,168

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Assets and Liabilities Carried at Fair Value Measured on Recurring Basis


	June 30, 2022
	Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Cash Equivalents		Marketable Securities
Level 1:
Money market funds	$	62,178	$	—	$	—		$	62,178	$	62,178	$	—
Subtotal	$	62,178	$	—	$	—		$	62,178	$	62,178	$	—
Level 2:
Commercial paper	$	30,926	$	—	$	—		$	30,926	$	4,999	$	25,927
U.S. treasury securities		63,345		—		(239	)		63,106		—		63,106
Subtotal	$	94,271	$	—	$	(239	)	$	94,032	$	4,999	$	89,033
Total	$	156,449	$	—	$	(239	)	$	156,210	$	67,177	$	89,033


	December 31, 2021
	Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash Equivalents		Marketable Securities
Level 1:
Money market funds	$	155,551	$	—	$	—	$	155,551	$	155,551	$	—
Subtotal	$	155,551	$	—	$	—	$	155,551	$	155,551	$	—
Level 2:
Commercial paper	$	49,514	$	—	$	—	$	49,514	$	16,549	$	32,965
Subtotal	$	49,514	$	—	$	—	$	49,514	$	16,549	$	32,965
Total	$	205,065	$	—	$	—	$	205,065	$	172,100	$	32,965

Net Loss per Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Potentially Dilutive Securities Excluded from Computation of Diluted Weighted-Average Shares

Potential common stock equivalents excluded from the calculation of diluted earnings per share because the effect would have been anti-dilutive were as follows:


	Six Months Ended June 30,
	2022		2021
Stock options		4,052,287		2,099,810
ESPP		18,394		10,793
Warrants		48,683		48,683
Restricted stock units		541,880		290,917
		4,661,244		2,450,203

Operations - Additional Information (Detail) $ in Millions	6 Months Ended
Operations - Additional Information (Detail) $ in Millions	Jun. 30, 2022 USD ($) Product
Operations [Line Items]
Number of commercial products \| Product	2
Cash, cash equivalents and investments in marketable securities \| $	$ 171.2

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
DEXYCU [Member]
Schedule Of Significant Accounting Policies [Line Items]
Accrued revenue-based royalty expense	$ 441,000	$ 648,000	$ 1,100,000	$ 1,100,000

Revenue - Disaggregation of Revenue (Detail) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2022

Jun. 30, 2021

Jun. 30, 2022

Jun. 30, 2021

Disclosure of Product Revenue Reserves and Allowances [Line Items]

Revenues

$ 11,565

$ 9,013

$ 20,859

$ 16,336

YUTIQ [Member]

Disclosure of Product Revenue Reserves and Allowances [Line Items]

Revenues

^[1]

7,421

4,166

12,032

7,196

DEXYCU [Member]

Disclosure of Product Revenue Reserves and Allowances [Line Items]

Revenues

^[2]

3,897

4,572

8,296

8,344

Product [Member]

Disclosure of Product Revenue Reserves and Allowances [Line Items]

Revenues

$ 11,318

$ 8,738

$ 20,328

$ 15,540

[1]	Included approximately $11 and $67 of revenue from YUTIQ product sales to Ocumension under a supply agreement for the three and six months ended June 30, 2022, respectively, and approximately $14 and $19 of revenue from YUTIQ product sales to Ocumension under a supply agreement for the three and six months ended June 30, 2021, respectively.
[2]	No revenue was recognized from DEXYCU product sales to Ocumension under a supply agreement for the three and six months ended June 30, 2022, and no revenue was recognized from DEXYCU product sales to Ocumension for the three and six months ended June 30, 2021.

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 41
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Revenue - Disaggregation of Revenue (Parenthetical) (Detail) - USD ($)

3 Months Ended

6 Months Ended

Jun. 30, 2022

Jun. 30, 2021

Jun. 30, 2022

Jun. 30, 2021

Disaggregation Of Revenue [Line Items]

Total revenues

$ 11,565,000

$ 9,013,000

$ 20,859,000

$ 16,336,000

YUTIQ [Member]

Disaggregation Of Revenue [Line Items]

Total revenues

^[1]

7,421,000

4,166,000

12,032,000

7,196,000

YUTIQ [Member] | Ocumension Therapeutics [Member] | Supply Agreement [Member]

Disaggregation Of Revenue [Line Items]

Total revenues

11,000

14,000

67,000

19,000

DEXYCU [Member]

Disaggregation Of Revenue [Line Items]

Total revenues

^[2]

3,897,000

4,572,000

8,296,000

8,344,000

DEXYCU [Member] | Ocumension Therapeutics [Member] | Supply Agreement [Member]

Disaggregation Of Revenue [Line Items]

Total revenues

$ 0

[1]	Included approximately $11 and $67 of revenue from YUTIQ product sales to Ocumension under a supply agreement for the three and six months ended June 30, 2022, respectively, and approximately $14 and $19 of revenue from YUTIQ product sales to Ocumension under a supply agreement for the three and six months ended June 30, 2021, respectively.
[2]	No revenue was recognized from DEXYCU product sales to Ocumension under a supply agreement for the three and six months ended June 30, 2022, and no revenue was recognized from DEXYCU product sales to Ocumension for the three and six months ended June 30, 2021.

- Definition

+ References

+ Details

Revenue - Product Revenue Allowance and Reserves (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Disclosure Of Product Revenue Reserves And Allowances [Line Items]
Beginning balance	$ 3,353	$ 1,712
Provision related to sales in the current year	10,463	5,394
Adjustments related to prior period sales		(172)
Deductions applied and payments made	(9,386)	(3,931)
Ending balance	4,430	3,003
Chargebacks, Discounts and Fees [Member]
Disclosure Of Product Revenue Reserves And Allowances [Line Items]
Beginning balance	1,153	574
Provision related to sales in the current year	6,580	2,932
Adjustments related to prior period sales		(50)
Deductions applied and payments made	(5,698)	(2,229)
Ending balance	2,035	1,227
Government and Other Rebates [Member]
Disclosure Of Product Revenue Reserves And Allowances [Line Items]
Beginning balance	1,821	535
Provision related to sales in the current year	3,554	1,965
Adjustments related to prior period sales		(22)
Deductions applied and payments made	(3,490)	(1,121)
Ending balance	1,885	1,357
Returns [Member]
Disclosure Of Product Revenue Reserves And Allowances [Line Items]
Beginning balance	379	603
Provision related to sales in the current year	329	497
Adjustments related to prior period sales		(100)
Deductions applied and payments made	(198)	(581)
Ending balance	$ 510	$ 419

Revenue - Additional Information (Detail) - USD ($)			1 Months Ended					3 Months Ended		6 Months Ended
Revenue - Additional Information (Detail) - USD ($)	Dec. 31, 2020	Dec. 17, 2020	Aug. 31, 2020	Feb. 29, 2020	Jan. 31, 2020	Aug. 31, 2019	Nov. 30, 2018	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Disaggregation Of Revenue [Line Items]
Revenue								$ 11,565,000	$ 9,013,000	$ 20,859,000	$ 16,336,000
Ocumension Therapeutics [Member]
Disaggregation Of Revenue [Line Items]
Receipt of upfront license fee			$ 9,500,000	$ 2,000,000.0			$ 1,750,000
Potential future payments based on achievement of development and regulatory milestones			6,000,000.0		$ 6,000,000.0					7,250,000
Potential future payments based on achievement of commercial-based milestones			6,000,000.0		$ 6,000,000.0					3,000,000.0
Development milestone payment received						$ 1,000,000.0
Potential future payments based on achievement of combined remaining development and sales milestone			11,750,000
Potential future payments based on achievement of remaining development and regulatory milestones			6,250,000
Potential future payments based on achievement of remaining commercial-based milestones			3,000,000.0
Ocumension Therapeutics [Member] \| Share Offering [Member]
Disaggregation Of Revenue [Line Items]
Issuance of stock, net of issue costs, shares	3,010,722
Ocumension Therapeutics [Member] \| Maximum [Member]
Disaggregation Of Revenue [Line Items]
Product supply milestones and development milestones										7,250,000
Upon achievement of milestones			$ 21,250,000
RPA [Member] \| SWK [Member]
Disaggregation Of Revenue [Line Items]
Upfront cash payment		$ 16,500,000
Revenue								198,000	181,000	423,000	361,000
Royalty payments								617,000	583,000	1,300,000	1,200,000
Royalty Sale Agreement [Member] \| SWK [Member]
Disaggregation Of Revenue [Line Items]
Deferred revenue		$ 16,500,000
Deferred revenue, current								1,100,000		1,100,000		$ 1,100,000
Deferred revenue, non-current								14,100,000		14,100,000		$ 14,600,000
Product [Member]
Disaggregation Of Revenue [Line Items]
Revenue								11,318,000	8,738,000	20,328,000	15,540,000
Product [Member] \| Ocumension Therapeutics [Member]
Disaggregation Of Revenue [Line Items]
Revenue								11,000		67,000
License and Collaboration Revenue [Member] \| Ocumension Therapeutics [Member]
Disaggregation Of Revenue [Line Items]
Revenue								49,000	91,000	108,000	360,000
Collaborative Research and Development [Member]
Disaggregation Of Revenue [Line Items]
Revenue								$ 0	$ 0	$ 0	$ 60,000

Inventory - Schedule of Inventory (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 1,946	$ 2,727
Work in process	595	405
Finished goods	713	484
Total inventory	$ 3,254	$ 3,616

Intangible Assets - Reconciliation of Intangible Assets (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Gross carrying amount at beginning of period			$ 68,322,000	$ 68,322,000
Gross carrying amount at end of period	$ 68,322,000	$ 68,322,000	68,322,000	68,322,000
Accumulated amortization at beginning of period			(45,573,000)	(43,113,000)
Amortization expense	(615,000)	(615,000)	(1,230,000)	(1,230,000)
Accumulated amortization at end of period	(46,803,000)	(44,343,000)	(46,803,000)	(44,343,000)
Net book value at end of period	$ 21,519,000	$ 23,979,000	$ 21,519,000	$ 23,979,000	$ 22,749,000

Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets, estimated useful lives			13 years
Amortization of intangible assets	$ 615,000	$ 615,000	$ 1,230,000	$ 1,230,000
DEXYCU [Member] \| Icon Bioscience Inc [Member]
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets, estimated useful lives			8 years 9 months
Annual amortization expense	$ 2,500,000		$ 2,500,000

Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Personnel costs	$ 4,881	$ 7,321
Clinical trial costs	2,243	753
Professional fees	505	712
Sales chargebacks, rebates and other revenue reserves	3,920	2,974
Commissions due to DEXYCU commercial partner	1,837	1,518
Other	926	1,144
Accrued expenses	$ 14,312	$ 14,422

Leases - Additional Information (Detail)		3 Months Ended		6 Months Ended
Leases - Additional Information (Detail)	Mar. 08, 2022 USD ($) ft² Tranche	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) ft² Lease Tranche	Jun. 30, 2021 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Disclosure Of Leases [Line Items]
Lease liabilities		$ 5,127,000		$ 5,127,000			$ 2,505,000
ROU assets		$ 4,787,000		$ 4,787,000			$ 2,252,000
Operating lease weighted average remaining lease term		5 years 7 months 6 days		5 years 7 months 6 days
Operating lease weighted average discount rate		5.50%		5.50%
Operating lease expense		$ 288,000	$ 213,000	$ 518,000	$ 427,000
Variable lease cost		3,000	9,000	6,000	18,000
Operating lease payments		238,000	221,000	480,000	442,000
Finance lease, amortization expense of ROU asset		34,000	30,000	68,000	62,000
Interest expense on finance lease liability		4,000	4,000	8,000	10,000
Finance lease, operating cash flows		4,000	4,000	8,000	10,000
Finance lease, financing cash flows		$ 34,000	$ 29,000	$ 67,000	$ 58,000
Finance lease, weighted average Remaining term		9 months 18 days		9 months 18 days
Finance lease, weighted average discount rate, percent		12.50%		12.50%
Caladrius [Member]
Disclosure Of Leases [Line Items]
Additional subleased property office area \| ft²				1,381
Basking Ridge Office Space [Member]
Disclosure Of Leases [Line Items]
Number of renewal options \| Tranche				2
Laboratory Equipment [Member]
Disclosure Of Leases [Line Items]
Number of finance leases \| Lease				2
First Lab Equipment [Member]
Disclosure Of Leases [Line Items]
Lease expiration month year				2022-12
Second Lab Equipment [Member]
Disclosure Of Leases [Line Items]
Lease expiration month year				2023-06
Revision of Prior Period, Error Correction, Adjustment [Member]
Disclosure Of Leases [Line Items]
Lease liabilities						$ 2,900,000
ROU assets						$ 2,900,000
Massachusetts [Member] \| Maximum [Member]
Disclosure Of Leases [Line Items]
Construction allowance		$ 670,750		$ 670,750
Massachusetts [Member] \| Original Lease [Member]
Disclosure Of Leases [Line Items]
Area of leased office and laboratory space \| ft²				13,650
Original lease term		5 years		5 years
Lease expiration month year				2019-04
Massachusetts [Member] \| Second Amendment Lease [Member]
Disclosure Of Leases [Line Items]
Lease commencement date				Sep. 10, 2018
Lease term expiration date				May 31, 2025
Additional Space leased \| ft²				6,590
Irrevocable standby letter of credit		$ 150,000		$ 150,000
Massachusetts [Member] \| Third Amendment Lease [Member]
Disclosure Of Leases [Line Items]
Area of leased office and laboratory space \| ft²				1,409
Lease commencement date				Jul. 01, 2021
Lease term expiration date				May 31, 2025
Massachusetts [Member] \| Fourth Amendment Lease [Member]
Disclosure Of Leases [Line Items]
Area of leased office and laboratory space \| ft²	13,650
Lease term expiration date	May 31, 2028
Termination of property area \| ft²	7,999
Lease existence of option to extend				true
Number of renewal options \| Tranche	1
Additional lease renewal option period	5 years
Massachusetts [Member] \| Fourth Amendment Lease [Member] \| New Premises [Member]
Disclosure Of Leases [Line Items]
Additional Space leased \| ft²	11,999
Percentage of cost of any change-orders bear by company				100.00%
Massachusetts [Member] \| Fourth Amendment Lease [Member] \| Maximum [Member]
Disclosure Of Leases [Line Items]
Construction allowance	$ 555,960
NEW JERSEY \| Basking Ridge Office Space [Member]
Disclosure Of Leases [Line Items]
Lease expiration month year				2022-06
Area of leased office space \| ft²				3,000
Lease inception month year				2017-07
Additional lease renewal option period		5 years		5 years
Lease renewal rate at 95% of market rent at time of renewal				95.00%

Leases - Supplemental Balance Sheet Related to Operating Leases (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Other current liabilities – operating lease current portion	$ 301	$ 645
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other current liabilities	Other current liabilities
Operating lease liabilities - noncurrent	$ 4,826	$ 1,860
Total operating lease liabilities	$ 5,127	$ 2,505

Leases - Supplemental Balance Sheet Related to Finance Leases (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Property and equipment, at cost	$ 270	$ 371
Accumulated amortization	(172)	(205)
Property and equipment, net	98	166
Other current liabilities – finance lease current portion	$ 105	$ 137
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other current liabilities	Other current liabilities
Other long-term liabilities		$ 36
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities	Other long-term liabilities
Total finance lease liabilities	$ 105	$ 173

Leases - Future Minimum Lease Payments Under Non-Cancellable Leases (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Operating Leases
Remainder of 2022	$ 348
2023	701
2024	1,073
2025	1,113
2026	1,158
Thereafter	1,699
Total future minimum lease payments	6,092
Less imputed interest	(965)
Total	5,127	$ 2,505
Finance Leases
Remainder of 2022	73
2023	37
Total future minimum lease payments	110
Less imputed interest	(5)
Total	$ 105	$ 173

Loan Agreements - Additional Information (Detail)				3 Months Ended				6 Months Ended		12 Months Ended
Loan Agreements - Additional Information (Detail)	Mar. 09, 2022 USD ($) Installment	Dec. 17, 2020 USD ($)	Feb. 13, 2019 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2020 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2021 USD ($)	Apr. 30, 2019 USD ($)
Loan Agreement [Line Items]
Proceeds from issuance of long-term debt								$ 30,000,000
Loss on extinguishment of debt				$ 0		$ 2,065,000		(1,559,000)	$ 2,065,000
Proceeds from issuance of revolving facility								21,934,000
Payment of exit fee								2,294,000
Cash and cash equivalents				82,134,000				82,134,000			$ 178,593,000
RPA [Member] \| SWK Funding LLC [Member]
Loan Agreement [Line Items]
Upfront cash payment		$ 16,500,000
CRG Servicing LLC [Member]
Loan Agreement [Line Items]
Total debt discount			$ 3,200,000
CRG Servicing LLC [Member] \| Senior Secured Term Loan [Member]
Loan Agreement [Line Items]
Agreement date			Feb. 13, 2019
Senior secured revolving credit facility			$ 60,000,000
Term loan agreement, initial advance			35,000,000
Proceeds from issuance of long-term debt							$ 0
Exit fee accrued			2,100,000
Upfront loan original fee payment			525,000
Line of credit facility, legal and other transaction costs			$ 591,000
Repayment of senior secured term loan	$ 38,200,000	13,800,000
Payment of exit fee upon repayment of secured term loan	2,300,000	828,000
Payment of accrued and unpaid interest through the date of the secured term loan refinancing	900,000	378,000
Loss on extinguishment of debt					$ (1,600,000)					$ (905,000)
Maturity date			Dec. 31, 2023
Annual interest rate on term loan balance			12.50%
Cash repayment	$ 41,400,000
Exit fee percentage payable upon repayment of the total secured term loan	6.00%
CRG Servicing LLC [Member] \| Senior Secured Term Loan [Member] \| RPA [Member] \| SWK Funding LLC [Member]
Loan Agreement [Line Items]
Upfront cash payment		$ 15,000,000.0
CRG Servicing LLC [Member] \| Second Advance [Member]
Loan Agreement [Line Items]
Term loan agreement, additional loan advance												$ 15,000,000
Total debt discount			$ 1,100,000
CRG Servicing LLC [Member] \| Second Advance [Member] \| Senior Secured Term Loan [Member]
Loan Agreement [Line Items]
Exit fee accrued			900,000
Upfront loan original fee payment			$ 225,000
Silicon Valley Bank [Member]
Loan Agreement [Line Items]
Amortization of debt discount (premium)				73,000				91,000
Silicon Valley Bank [Member] \| Minimum [Member]
Loan Agreement [Line Items]
Cash and cash equivalents				$ 50,000,000				$ 50,000,000
Silicon Valley Bank [Member] \| YUTIQ and DEXYCU [Member] \| Minimum [Member]
Loan Agreement [Line Items]
Minimum quarterly product revenue					7,800,000
Silicon Valley Bank [Member] \| YUTIQ and DEXYCU [Member] \| Maximum [Member]
Loan Agreement [Line Items]
Minimum quarterly product revenue					$ 11,500,000
Silicon Valley Bank [Member] \| Senior Secured Term Loan [Member]
Loan Agreement [Line Items]
Proceeds from issuance of long-term debt	$ 30,000,000.0
Senior secured term loan borrowing facility	$ 30,000,000.0
Debt instrument effective rate	5.50%
Line of credit facility commencing date	Feb. 01, 2024
Number of consecutive equal monthly installment \| Installment	36
Exit fee percentage of the aggregate principal amount	2.00%
Payment of exit fee	$ 600,000
Silicon Valley Bank [Member] \| Senior Secured Term Loan [Member] \| Loan Prepayment Prior to First Anniversary [Member]
Loan Agreement [Line Items]
Principal prepayment premium percentage	3.00%
Silicon Valley Bank [Member] \| Senior Secured Term Loan [Member] \| Loan Prepayment After First Anniversary and Prior to Second Anniversary [Member]
Loan Agreement [Line Items]
Principal prepayment premium percentage	2.00%
Silicon Valley Bank [Member] \| Senior Secured Term Loan [Member] \| Loan Prepayment After Second Anniversary and Prior to Third Anniversary [Member]
Loan Agreement [Line Items]
Principal prepayment premium percentage	1.00%
Silicon Valley Bank [Member] \| Senior Secured Term Loan [Member] \| Loan Prepayment After Third Anniversary and Prior to Maturity Date [Member]
Loan Agreement [Line Items]
Principal prepayment premium percentage	0.50%
Silicon Valley Bank [Member] \| Senior Secured Term Loan [Member] \| Prime Rate Margin [Member]
Loan Agreement [Line Items]
Prime rate margin	2.25%
Silicon Valley Bank [Member] \| Senior Secured Revolving Credit Facility [Member]
Loan Agreement [Line Items]
Senior secured revolving credit facility	$ 15,000,000.0
Proceeds from issuance of revolving facility	$ 11,500,000
Unused commitment fee	0.25%
Silicon Valley Bank [Member] \| Senior Secured Revolving Credit Facility [Member] \| Loan Termination Prior to First Anniversary [Member]
Loan Agreement [Line Items]
Termination percentage	3.00%
Silicon Valley Bank [Member] \| Senior Secured Revolving Credit Facility [Member] \| Loan Termination After First Anniversary [Member]
Loan Agreement [Line Items]
Termination percentage	1.00%
Silicon Valley Bank [Member] \| Senior Secured Revolving Credit Facility and Senior Secured Term Loan[Member]
Loan Agreement [Line Items]
Maturity date	Jan. 01, 2027

Loan Agreements - Scheduled Principal Payments of Debt (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Debt Disclosure [Abstract]
Remainder of 2022	$ 0
2023	0
2024	9,167
2025	10,000
2026	10,000
Thereafter	833
Total	$ 30,000

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Stockholders' Equity - Equity Financings - Additional Information (Detail) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended
	Feb. 28, 2021	Aug. 31, 2020	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Common Stock [Member]
Class Of Stock [Line Items]
Common stock issued						10,513,538
Equity Financings [Member] \| Share Offering [Member]
Class Of Stock [Line Items]
Common stock issued	10,465,000
Price per share	$ 11.00
Common stock, additional shares issued	1,365,000
Gross proceeds from issuance of common stock	$ 115,100,000
Share issuance costs	$ 7,200,000
At-the-Market Offering [Member]
Class Of Stock [Line Items]
Common stock issued						48,538
Price per share				$ 11.37		$ 11.37
Gross proceeds from issuance of common stock						$ 552,000
Share issuance costs						$ 53,000
Stock issuances, sales agent commission maximum percentage		3.00%
At-the-Market Offering [Member] \| Common Stock [Member]
Class Of Stock [Line Items]
Common stock issued			0	0	0

Stockholders' Equity - Summary of Reconciliation of Warrants to Purchase Share of the Company's Common Stock (Detail) - $ / shares	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Stockholders' Equity Note [Abstract]
Number of Warrants, Outstanding and exercisable, Beginning balance	48,683	48,683	48,683
Number of Warrants, Outstanding and exercisable, Ending balance	48,683	48,683	48,683
Weighted Average Exercise Price, Outstanding and exercisable, Beginning balance	$ 12.33	$ 12.33	$ 12.33
Weighted Average Exercise Price, Outstanding and exercisable, Ending balance	$ 12.33	$ 12.33	$ 12.33

Stockholders' Equity - Warrants to Purchase Common Shares - Additional Information (Detail) - Senior Secured Term Loan [Member] - Warrants [Member] - $ / shares			6 Months Ended
	Jun. 26, 2018	Mar. 28, 2018	Jun. 30, 2022
SWK [Member]
Class Of Stock [Line Items]
Warrants issued to purchase shares of common stock	7,773	40,910
Exercise price of issued warrants	$ 19.30	$ 11.00
Warrants exercise period	7 years	7 years
Investor [Member]
Class Of Stock [Line Items]
Weighted average remaining life of lender warrants			2 years 9 months 18 days

Share-Based Payment Awards - Equity Incentive Plan - Additional Information (Detail) - 2016 Long Term Incentive Plan [Member] - shares	Jun. 30, 2022	Jun. 22, 2021	Jun. 25, 2019	Dec. 12, 2016
Class Of Stock [Line Items]
Number of common stock, authorized for issuance		2,500,000	1,100,000	300,000
Shares available for grant under the Long Term Incentive Plan, including forfeited and terminated awards transferred from the 2008 Incentive Plan	82,000

Share-Based Payment Awards - Stock Option Activity Under Company's Equity Incentive Plan (Detail) - Equity Incentive Plans and Inducement Awards [Member] $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options Outstanding, Beginning balance \| shares	2,517,680
Number of Options, Granted \| shares	1,643,300
Number of Options, Exercised \| shares	(4,223)
Number of Options, Forfeited \| shares	(98,470)
Number of Options, Expired \| shares	(6,000)
Number of Options Outstanding, Ending balance \| shares	4,052,287
Number of Options, Exercisable at June 30, 2022 \| shares	1,306,830
Weighted Average Exercise Price Outstanding, Beginning balance \| $ / shares	$ 16.49
Weighted Average Exercise Price, Granted \| $ / shares	10.43
Weighted Average Exercise Price, Exercised \| $ / shares	9.44
Weighted Average Exercise Price, Forfeited \| $ / shares	11.98
Weighted Average Exercise Price, Expired \| $ / shares	21.00
Weighted Average Exercise Price Outstanding, Ending balance \| $ / shares	14.14
Weighted Average Exercise Price, Exercisable at June 30, 2022 \| $ / shares	$ 19.82
Weighted Average Remaining Contractual Life, Outstanding at June 30, 2022	8 years 3 months 10 days
Weighted Average Remaining Contractual Life, Exercisable at June 30, 2022	6 years 3 months 3 days
Aggregate Intrinsic Value, Outstanding at June 30, 2022 \| $	$ 72,444
Aggregate Intrinsic Value, Exercisable at June 30, 2022 \| $	$ 27,575

Share-Based Payment Awards - Stock Options - Additional Information (Detail) - shares	6 Months Ended	17 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
2016 Long Term Incentive Plan [Member]
Class Of Stock [Line Items]
Ceased ratable monthly vesting period		4 years
Contractual life of option grants	10 years
Stock Compensation Plan [Member]
Class Of Stock [Line Items]
Ratable monthly vesting period	1 year	1 year
Cliff vesting period	3 years	3 years
Common stock vested during the period	568,000

Share-Based Payment Awards - Summary of Company Applied the Black-Scholes Option Pricing (Detail) - 2016 Long Term Incentive Plan [Member]	6 Months Ended
	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock volatility, minimum	76.00%
Stock volatility, maximum	78.00%
Risk-free interest rate, minimum	1.46%
Risk-free interest rate, maximum	3.36%
Expected dividends	0.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option life (in years)	5 years 6 months
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option life (in years)	6 years 29 days

Share-Based Payment Awards - Summary of Information about Stock Options (Detail) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Total cash received from exercise of stock options	$ 241	$ 183
Equity Incentive Plans [Member]
Weighted-average grant date fair value per share	$ 7.03
Total cash received from exercise of stock options	$ 40
Total intrinsic value of stock options exercised	$ 13

Share-Based Payment Awards - Time-Vested Restricted Stock Units - Additional Information (Detail) - RSU [Member] - 2016 Long Term Incentive Plan [Member]	6 Months Ended
	Jun. 30, 2022
Class Of Stock [Line Items]
Ratable annual vesting period of equity awards	3 years
Weighted average remaining vesting term	1 year 6 months 29 days

Share-Based Payment Awards - Summary of Restricted Stock Unit Activity (Detail) - 2016 Long Term Incentive Plan [Member] - RSU [Member]	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Stock Units Outstanding, Beginning Balance \| shares	291,575
Number of stock units, Granted \| shares	409,500
Number of Stock Units, Vested \| shares	(140,402)
Number of Stock Units, Forfeited \| shares	(18,793)
Number of Stock Units Outstanding, Ending Balance \| shares	541,880
Weighted Average Grant Date Fair Value Nonvested, Beginning balance \| $ / shares	$ 13.19
Weighted average grant date fair value, Granted \| $ / shares	10.09
Weighted Average Grant Date Fair value, Vested \| $ / shares	13.44
Weighted Average Grant Date Fair value, Forfeited \| $ / shares	11.31
Weighted Average Grant Date Fair Value Nonvested, Ending balance \| $ / shares	$ 10.85

Share-Based Payment Awards - Employee Stock Purchase Plan - Additional Information (Detail) - USD ($)		3 Months Ended		6 Months Ended
	Jun. 25, 2019	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Jun. 22, 2021
Class Of Stock [Line Items]
Employee stock purchase plan				$ 201,000	$ 173,000
Common stock, shares issued		34,052,616		34,052,616		33,905,826
Stock-based compensation expense		$ 4,140,000	$ 1,180,000	$ 7,617,000	$ 2,168,000
ESPP [Member]
Class Of Stock [Line Items]
Number of common stock, authorized for issuance	110,000						250,000
Price of common stock purchased twice a year under ESPP, percent	85.00%
Employee stock purchase plan	$ 25,000
Employee stock purchase plan, shares	5,000
Consecutive six month offering period	Aug. 01, 2019
Common stock, shares issued		28,504		28,504
Stock-based compensation expense		$ 38,000		$ 71,000

Share-Based Payment Awards - Compensation Expense from Stock-Based Payment Awards (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 4,140	$ 1,180	$ 7,617	$ 2,168
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	2,011	255	3,485	518
Sales and Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	496	241	905	481
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 1,633	$ 684	$ 3,227	$ 1,169

Share-Based Payment Awards - Stock-Based Compensation Expense - Additional Information (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)
Share-Based Payment Arrangement [Abstract]
Unrecognized compensation expense	$ 17.1
Unrecognized compensation expense weighted average period	1 year 9 months

License and Asset Purchase Agreements - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Collaborative Agreements And Contracts [Line Items]
Research and development		$ 12,992,000	$ 5,605,000	$ 22,937,000	$ 11,084,000
Equinox Science, LLC [Member]
Collaborative Agreements And Contracts [Line Items]
Non-refundable and non-creditable upfront cash payment	$ 1,000,000.0
Research and development		$ 0	$ 0	$ 0	$ 0
Equinox Science, LLC [Member] \| Maximum [Member]
Collaborative Agreements And Contracts [Line Items]
Payment upon achievement of development and regulatory milestones	$ 50,000,000

Fair Value Measurements - Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities	$ 89,033	$ 32,965
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	156,449	205,065
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(239)	0
Fair Value	156,210	205,065
Cash Equivalents	67,177	172,100
Marketable Securities	89,033	32,965
Fair Value, Measurements, Recurring [Member] \| Quoted Prices in Active Markets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	62,178	155,551
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	62,178	155,551
Cash Equivalents	62,178	155,551
Marketable Securities	0	0
Fair Value, Measurements, Recurring [Member] \| Quoted Prices in Active Markets (Level 1) [Member] \| Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	62,178	155,551
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	62,178	155,551
Cash Equivalents	62,178	155,551
Marketable Securities	0	0
Fair Value, Measurements, Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	94,271	49,514
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(239)	0
Fair Value	94,032	49,514
Cash Equivalents	4,999	16,549
Marketable Securities	89,033	32,965
Fair Value, Measurements, Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member] \| Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	30,926	49,514
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	30,926	49,514
Cash Equivalents	4,999	16,549
Marketable Securities	25,927	$ 32,965
Fair Value, Measurements, Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member] \| U.S. Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	63,345
Gross Unrealized Gains	0
Gross Unrealized Losses	(239)
Fair Value	63,106
Cash Equivalents	0
Marketable Securities	$ 63,106

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Jun. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 32,965	$ 89,033
Interest-bearing cash equivalent consisted of money market fund	155,600
Interest-bearing cash equivalent consisted of investment-grade commercial paper	$ 16,500
Investment Instruments [Member] \| Credit Concentration Risk [Member] \| Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of concentration risk	90.40%
Investment Instruments [Member] \| Credit Concentration Risk [Member] \| Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of concentration risk	9.60%

Net Loss per Share - Potentially Dilutive Securities Excluded from Computation of Diluted Weighted-Average Shares (Detail) - shares	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation	4,661,244	2,450,203
Stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation	4,052,287	2,099,810
ESPP [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation	18,394	10,793
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation	48,683	48,683
Restricted stock units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation	541,880	290,917

Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Subsequent Event [Line Items]
Net intangible asset	$ 21,519	$ 22,749	$ 23,979
DEXYCU [Member]
Subsequent Event [Line Items]
Net intangible asset	$ 21,500