2020 Q2 Form 10-Q Financial Statement

#000157056220000111 Filed on August 10, 2020

View on sec.gov

Income Statement

Concept 2020 Q2 2019 Q4 2019 Q2
Revenue $7.806M $19.45M $2.311M
YoY Change 237.78%
Cost Of Revenue $1.948M $3.640M $660.0K
YoY Change 195.15%
Gross Profit $5.858M $15.81M $1.651M
YoY Change 254.82%
Gross Profit Margin 75.04% 81.29% 71.44%
Selling, General & Admin $17.55M $30.29M $34.89M
YoY Change -49.69% 147.87% 458.45%
% of Gross Profit 299.64% 191.59% 2113.39%
Research & Development $145.0K $420.0K $509.0K
YoY Change -71.51% -64.41% -69.11%
% of Gross Profit 2.48% 2.66% 30.83%
Depreciation & Amortization $1.658M $1.470M $978.0K
YoY Change 69.53%
% of Gross Profit 28.3% 9.3% 59.24%
Operating Expenses $24.75M $32.17M $37.65M
YoY Change -34.27% 139.9% 133.84%
Operating Profit -$18.89M -$16.36M -$36.00M
YoY Change -47.53% 123.58%
Interest Expense -$2.240M -$2.090M -$1.800M
YoY Change 24.44% -2422.22% 462.5%
% of Operating Profit
Other Income/Expense, Net -$2.464M -$2.412M
YoY Change 2.16% 651.4%
Pretax Income -$21.13M -$14.64M -$37.79M
YoY Change -44.1% 17.87% 130.16%
Income Tax -$2.000K -$130.0K -$227.0K
% Of Pretax Income
Net Earnings -$21.13M -$14.51M -$37.57M
YoY Change -43.77% 16.64% 128.61%
Net Earnings / Revenue -270.63% -74.6% -1625.57%
Basic Earnings Per Share -$0.63
Diluted Earnings Per Share -$0.63 -$472.0K -$1.371M
COMMON SHARES
Basic Shares Outstanding 33.73M shares 27.43M shares 27.33M shares
Diluted Shares Outstanding 33.73M shares

Balance Sheet

Concept 2020 Q2 2019 Q4 2019 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $84.75M $129.8M $99.93M
YoY Change -15.19% 39.33% 129.19%
Cash & Equivalents $29.77M $109.9M $30.29M
Short-Term Investments $54.98M $19.91M $69.64M
Other Short-Term Assets $4.300M $5.300M $3.000M
YoY Change 43.33% 341.67% 200.0%
Inventory $10.34M $6.407M $11.52M
Prepaid Expenses
Receivables $8.649M $10.66M $1.410M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $108.0M $152.2M $115.8M
YoY Change -6.76% 61.33% 159.57%
LONG-TERM ASSETS
Property, Plant & Equipment $1.422M $902.0K $290.0K
YoY Change 390.34% 5700.0%
Goodwill $21.21M $21.21M $21.21M
YoY Change 0.0% 0.0% 0.0%
Intangibles $58.02M $59.64M $59.21M
YoY Change -2.01% 6.35% 5.59%
Long-Term Investments
YoY Change
Other Assets $2.155M $2.429M $1.206M
YoY Change 78.69% 999.1% 5381.82%
Total Long-Term Assets $86.55M $88.25M $86.96M
YoY Change -0.47% 13.86% 12.47%
TOTAL ASSETS
Total Short-Term Assets $108.0M $152.2M $115.8M
Total Long-Term Assets $86.55M $88.25M $86.96M
Total Assets $194.5M $240.4M $202.8M
YoY Change -4.06% 39.92% 66.3%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $10.95M $5.796M $7.708M
YoY Change 42.09% 272.02% 926.36%
Accrued Expenses $6.094M $13.96M $15.40M
YoY Change -60.43% 275.47% 425.06%
Deferred Revenue $1.709M
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $19.46M $24.44M $23.11M
YoY Change -15.77% 363.21% 527.17%
LONG-TERM LIABILITIES
Long-Term Debt $74.17M $73.51M $72.86M
YoY Change 1.79% 341.59%
Other Long-Term Liabilities $38.60M $45.10M $47.90M
YoY Change -19.42% -10.16% -1.84%
Total Long-Term Liabilities $74.17M $73.51M $72.86M
YoY Change 1.79% 11.58%
TOTAL LIABILITIES
Total Short-Term Liabilities $19.46M $24.44M $23.11M
Total Long-Term Liabilities $74.17M $73.51M $72.86M
Total Liabilities $150.9M $161.0M $161.6M
YoY Change -6.6% 84.07% 92.38%
SHAREHOLDERS EQUITY
Retained Earnings -$253.9M -$213.1M -$171.6M
YoY Change 48.0% 73.18% 73.73%
Common Stock $1.000K $1.000K $1.000K
YoY Change 0.0% 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $43.60M $79.46M $41.18M
YoY Change
Total Liabilities & Shareholders Equity $194.5M $240.4M $202.8M
YoY Change -4.06% 39.92% 66.3%

Cashflow Statement

Concept 2020 Q2 2019 Q4 2019 Q2
OPERATING ACTIVITIES
Net Income -$21.13M -$14.51M -$37.57M
YoY Change -43.77% 16.64% 128.61%
Depreciation, Depletion And Amortization $1.658M $1.470M $978.0K
YoY Change 69.53%
Cash From Operating Activities -$13.94M -$15.92M -$33.16M
YoY Change -57.96% 32.56% 485.87%
INVESTING ACTIVITIES
Capital Expenditures -$640.0K -$1.140M -$1.970M
YoY Change -67.51% 19600.0%
Acquisitions
YoY Change
Other Investing Activities $10.02M $15.11M $10.19M
YoY Change -1.67%
Cash From Investing Activities $9.380M $13.98M $8.230M
YoY Change 13.97% -82400.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -310.0K 72.73M 850.0K
YoY Change -136.47% -374.19%
NET CHANGE
Cash From Operating Activities -13.94M -15.92M -33.16M
Cash From Investing Activities 9.380M 13.98M 8.230M
Cash From Financing Activities -310.0K 72.73M 850.0K
Net Change In Cash -4.870M 70.79M -24.08M
YoY Change -79.78% -689.43% 302.68%
FREE CASH FLOW
Cash From Operating Activities -$13.94M -$15.92M -$33.16M
Capital Expenditures -$640.0K -$1.140M -$1.970M
Free Cash Flow -$13.30M -$14.78M -$31.19M
YoY Change -57.36% 23.06% 452.04%

Facts In Submission

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2486000 USD
CY2019Q2 us-gaap Net Income Loss
NetIncomeLoss
-37567000 USD
CY2019Q2 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
52000 USD
CY2019Q2 us-gaap Stockholders Equity
StockholdersEquity
41181000 USD
CY2019Q4 us-gaap Stockholders Equity
StockholdersEquity
79457000 USD
CY2020Q1 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
0 USD
CY2020Q1 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
2665000 USD
CY2020Q1 us-gaap Net Income Loss
NetIncomeLoss
-19735000 USD
CY2020Q1 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
219000 USD
CY2020Q1 us-gaap Stockholders Equity
StockholdersEquity
62606000 USD
CY2020Q2 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
0 USD
CY2020Q2 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
2328000 USD
CY2020Q2 us-gaap Net Income Loss
NetIncomeLoss
-21125000 USD
CY2020Q2 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
-206000 USD
CY2020Q2 us-gaap Stockholders Equity
StockholdersEquity
43603000 USD
us-gaap Net Income Loss
NetIncomeLoss
-40860000 USD
us-gaap Net Income Loss
NetIncomeLoss
-48542000 USD
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
3407000 USD
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
1462000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
5002000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
4455000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
2607000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
0 USD
us-gaap Accretion Amortization Of Discounts And Premiums Investments
AccretionAmortizationOfDiscountsAndPremiumsInvestments
390000 USD
us-gaap Accretion Amortization Of Discounts And Premiums Investments
AccretionAmortizationOfDiscountsAndPremiumsInvestments
586000 USD
eols Operating Lease Rightof Use Asset Amortization
OperatingLeaseRightofUseAssetAmortization
330000 USD
eols Operating Lease Rightof Use Asset Amortization
OperatingLeaseRightofUseAssetAmortization
523000 USD
us-gaap Amortization Of Financing Costs And Discounts
AmortizationOfFinancingCostsAndDiscounts
1290000 USD
us-gaap Amortization Of Financing Costs And Discounts
AmortizationOfFinancingCostsAndDiscounts
889000 USD
us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
190000 USD
us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
-14750000 USD
us-gaap Business Combination Contingent Consideration Arrangements Change In Amount Of Contingent Consideration Liability1
BusinessCombinationContingentConsiderationArrangementsChangeInAmountOfContingentConsiderationLiability1
-7451000 USD
us-gaap Business Combination Contingent Consideration Arrangements Change In Amount Of Contingent Consideration Liability1
BusinessCombinationContingentConsiderationArrangementsChangeInAmountOfContingentConsiderationLiability1
6182000 USD
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
-270000 USD
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
11522000 USD
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
595000 USD
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
1410000 USD
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-1074000 USD
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
1997000 USD
us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
-6575000 USD
us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
13347000 USD
eols Increase Decrease In Operating Lease Liabilities
IncreaseDecreaseInOperatingLeaseLiabilities
-382000 USD
eols Increase Decrease In Operating Lease Liabilities
IncreaseDecreaseInOperatingLeaseLiabilities
-409000 USD
us-gaap Increase Decrease In Other Operating Assets
IncreaseDecreaseInOtherOperatingAssets
-191000 USD
us-gaap Increase Decrease In Other Operating Assets
IncreaseDecreaseInOtherOperatingAssets
0 USD
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-41892000 USD
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-52358000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
677000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
346000 USD
us-gaap Payments For Software
PaymentsForSoftware
1463000 USD
us-gaap Payments For Software
PaymentsForSoftware
2441000 USD
us-gaap Payments To Acquire Investments
PaymentsToAcquireInvestments
74668000 USD
us-gaap Payments To Acquire Investments
PaymentsToAcquireInvestments
94011000 USD
us-gaap Proceeds From Maturities Prepayments And Calls Of Shortterm Investments
ProceedsFromMaturitiesPrepaymentsAndCallsOfShorttermInvestments
40000000 USD
us-gaap Proceeds From Maturities Prepayments And Calls Of Shortterm Investments
ProceedsFromMaturitiesPrepaymentsAndCallsOfShorttermInvestments
25000000 USD
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-36808000 USD
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-71798000 USD
eols Payments Of Contingent Royalty Obligation
PaymentsOfContingentRoyaltyObligation
898000 USD
eols Payments Of Contingent Royalty Obligation
PaymentsOfContingentRoyaltyObligation
9213000 USD
eols Milestone Payments For Intangible Assets
MilestonePaymentsForIntangibleAssets
0 USD
eols Milestone Payments For Intangible Assets
MilestonePaymentsForIntangibleAssets
2000000 USD
us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
0 USD
us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
73906000 USD
us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
0 USD
us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
2205000 USD
us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
522000 USD
us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
0 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
0 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
795000 USD
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-1420000 USD
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
61283000 USD
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-80120000 USD
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-62873000 USD
CY2019Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
109892000 USD
CY2018Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
93162000 USD
CY2020Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
29772000 USD
CY2019Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
30289000 USD
us-gaap Interest Paid Net
InterestPaidNet
3622000 USD
us-gaap Interest Paid Net
InterestPaidNet
1544000 USD
us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
0 USD
us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
5566000 USD
us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
81000 USD
us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
55000 USD
CY2020Q2 us-gaap Net Income Loss
NetIncomeLoss
-21125000 USD
us-gaap Net Income Loss
NetIncomeLoss
-40860000 USD
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-41892000 USD
CY2020Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
29772000 USD
CY2020Q2 us-gaap Available For Sale Securities Debt Securities Current
AvailableForSaleSecuritiesDebtSecuritiesCurrent
54982000 USD
CY2020Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-253919000 USD
us-gaap Use Of Estimates
UseOfEstimates
<div style="margin-bottom:10pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%;">Use of Estimates</span></div><div style="margin-bottom:9pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">Management is required to make certain estimates and assumptions in order to prepare financial statements in conformity with GAAP. Such estimates and assumptions affect the reported financial statements. The Company’s most significant estimates relate to net revenues, allowance for doubtful accounts, fair value measurements, goodwill and long-lived asset </span></div><div style="margin-bottom:9pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">valuations and impairment assessments, inventory valuations, income tax valuations, stock-based compensation, royalty obligations, and outcomes of legal proceedings, among others. Management bases estimates on historical experience and on assumptions that management believes are reasonable. The Company’s actual results could differ materially from those estimates.</span></div><div style="margin-bottom:10pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">Additionally, the full impact of the COVID-19 outbreak is unknown and cannot be reasonably estimated. However, where possible, management has made appropriate accounting estimates with respect to certain accounting matters, which include the fair value of royalty obligations, allowance for doubtful accounts, inventory valuation and impairment assessments of goodwill and other long-lived assets, based on the facts and circumstances available as of the reporting date. The Company’s future assessment of the magnitude and duration of the COVID-19 outbreak, as well as other factors, could result in material impacts to the Company’s financial statements in future reporting periods.</span></div>
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="padding-right:9pt;margin-bottom:10pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%;">Risks and Uncertainties</span></div><div style="margin-bottom:9pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">In 2013, Evolus and Daewoong entered into an agreement (the “Daewoong Agreement”), pursuant to which, the Company has an exclusive distribution license to Jeuveau</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;"> from Daewoong for aesthetic indications in the United States, European Union, Canada, Australia, Russia, Commonwealth of Independent States, and South Africa, as well as co-exclusive distribution rights with Daewoong in Japan. Jeuveau</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;"> is manufactured by Daewoong in a facility in South Korea. The Company also has the option to negotiate first with Daewoong to secure a distribution license for any product that Daewoong directly or indirectly develops or commercializes that is classified as an injectable botulinum toxin (other than Jeuveau</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">) in a territory covered by the Daewoong Agreement. The Company relies on Daewoong, its exclusive and sole supplier, to manufacture Jeuveau</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">. Any termination or loss of significant rights, including exclusivity, under the Daewoong Agreement would materially and adversely affect the Company’s commercialization of Jeuveau</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">. The Daewoong Agreement, and Daewoong’s rights relating to Jeuveau</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">, are subject to litigation. </span></div><div style="margin-bottom:9pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">In July 2020, the Administrative Law Judge assigned to the ITC action to which the Company is a party issued an initial determination in which the judge found a violation of Section 337 of the Tariff Act of 1930 had occurred by reason of a misappropriation of trade secrets and recommended the entry of a limited exclusion order that would prevent us from importing Jeuveau</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;"> into the United States for a period of ten years and a cease and desist order that would prevent the Company from selling Jeuveau</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;"> in the United States for the same period of time. A final determination by the ITC is expected to be issued in November 2020, with such final determination subject to a 60-day presidential review period before taking effect. During the presidential review period the Company would be required to pay a bond at a rate set by the ITC for any sales during the period. The amount of the bond may make any sales unattractive during the period. The Company strongly disagrees with the initial determination by the Administrative Law Judge and intends to continue to vigorously defend itself in this matter. In the event that the ITC’s final determination affirms the Administrative Law Judge’s initial determination, the Company would be prevented from importing Jeuveau</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;"> into the United States and from marketing and selling Jeuveau</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;"> in the United States for a period of ten years, which would materially and adversely affect the Company’s ability to generate revenue from the Company’s sole product, Jeuveau</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">, to carry out its business, and to continue as a going concern. Even if the Company is successful in having the decision modified or reversed during the presidential review or in appealing any such final determination, the Company may find it difficult or be prevented from importing, marketing or selling Jeuveau</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;"> in the United States during the pendency of those events. Further, any modification of the Administrative Law Judge’s initial determination in the ITC’s final determination or any final decision following any such presidential review or other appeal may nonetheless still result in restrictions on the Company’s ability to import and market and sell Jeuveau</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;"> in the United States, which could also materially and adversely affect the Company’s ability to generate revenue from Jeuveau</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">, to carry out its business, and to continue as a going concern. In any such event, the Company may be required to seek protection under the bankruptcy laws or may be forced to reduce, significantly restructure or discontinue its operations entirely, any of which would have a material adverse effect on the Company’s business, financial position, results of operations, or cash flows, would cause its stock price to decline and would also result in reputational harm. Even if the Company is successful, the ITC action may result in reputational damage or other collateral consequences. In addition, it is expected that an event of default under our credit agreement with Oxford would occur after the imposition of an exclusion order and cease and desist order and Oxford would be able to declare an event of default after the exhaustion of all appeals that the Company may have or earlier. If Oxford were to declare an event of default under the credit facility and exercise its remedies, it would materially and negatively affect the Company’s business, results of operation, financial condition and could result in the Company declaring bankruptcy. See Note 7. Commitments and Contingencies for additional information regarding such litigation. </span></div><div style="margin-bottom:9pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">The Company commercially launched Jeuveau</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;"> in the United States in May 2019 and in Canada through a distribution partner in October 2019 and, as such, has a limited history of sales. If any previously granted approval is retracted or the Company is denied approval or approval is delayed by any other regulators, it may have a material adverse impact on the Company’s business and its financial statements.</span></div><div style="margin-bottom:9pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">The Company is also subject to risks common to companies in the pharmaceutical industry including, but not limited to, dependency on the commercial success of Jeuveau</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">, the Company’s sole commercial product, significant competition within the medical aesthetics industry, its ability to maintain regulatory approval of Jeuveau</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">, the need for additional financing to achieve its goals, third party litigation and challenges to its intellectual property, uncertainty of broad adoption of its product by physicians and patients, its ability to in-license, acquire or develop additional product candidates and to obtain the necessary approvals for those product candidates, and the need to scale manufacturing capabilities over time.</span></div><div style="margin-bottom:9pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">The recent COVID-19 outbreak and restrictions intended to slow the spread of COVID-19, including quarantines, government-mandated actions, stay-at-home orders and other restrictions, have adversely affected the Company’s business in a number of ways, which have resulted, and may continue to result, in a period of business disruption and in reduced sales and operations. In addition, any disruption and volatility in the global capital markets may increase the Company’s cost of capital and adversely affect its ability to access financing when and on terms that we desire. Any of these events could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flows.</span></div>
us-gaap Number Of Reporting Units
NumberOfReportingUnits
1 unit
us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
0 USD
us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
0 USD
us-gaap Impairment Of Intangible Assets Excluding Goodwill
ImpairmentOfIntangibleAssetsExcludingGoodwill
0 USD
CY2020Q2 eols Accrued Coupon And Rebate Liability Current
AccruedCouponAndRebateLiabilityCurrent
799000 USD
CY2019Q4 eols Accrued Coupon And Rebate Liability Current
AccruedCouponAndRebateLiabilityCurrent
1709000 USD
CY2020Q2 eols Provisions For Accrued Volume Based Rebate And Coupon Liability
ProvisionsForAccruedVolumeBasedRebateAndCouponLiability
17000 USD
CY2019Q2 eols Provisions For Accrued Volume Based Rebate And Coupon Liability
ProvisionsForAccruedVolumeBasedRebateAndCouponLiability
882000 USD
eols Provisions For Accrued Volume Based Rebate And Coupon Liability
ProvisionsForAccruedVolumeBasedRebateAndCouponLiability
10229000 USD
eols Provisions For Accrued Volume Based Rebate And Coupon Liability
ProvisionsForAccruedVolumeBasedRebateAndCouponLiability
882000 USD
CY2020Q2 eols Payments For Provisions For Accrued Volume Based Rebate And Coupon Liability
PaymentsForProvisionsForAccruedVolumeBasedRebateAndCouponLiability
1697000 USD
CY2019Q2 eols Payments For Provisions For Accrued Volume Based Rebate And Coupon Liability
PaymentsForProvisionsForAccruedVolumeBasedRebateAndCouponLiability
0 USD
eols Payments For Provisions For Accrued Volume Based Rebate And Coupon Liability
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us-gaap Allowance For Doubtful Accounts Receivable Write Offs
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50200000 USD
CY2020Q2 eols Fair Value Measurementwith Unobservable Inputs Reconciliation Recurring Basis Liability Payments
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315000 USD
CY2019Q2 eols Fair Value Measurementwith Unobservable Inputs Reconciliation Recurring Basis Liability Payments
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0 USD
eols Fair Value Measurementwith Unobservable Inputs Reconciliation Recurring Basis Liability Payments
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898000 USD
eols Fair Value Measurementwith Unobservable Inputs Reconciliation Recurring Basis Liability Payments
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CY2020Q2 eols Revaluationof Contingent Royalty Obligation Payable
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2433000 USD
CY2019Q2 eols Revaluationof Contingent Royalty Obligation Payable
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1269000 USD
eols Revaluationof Contingent Royalty Obligation Payable
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eols Revaluationof Contingent Royalty Obligation Payable
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6182000 USD
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36334000 USD
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47169000 USD
CY2020Q2 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
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36334000 USD
CY2019Q2 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
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21208000 USD
CY2019Q4 us-gaap Goodwill
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21208000 USD
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84699000 USD
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3853000 USD
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4271000 USD
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923000 USD
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13960000 USD
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0 USD
CY2020Q2 us-gaap Long Term Debt Maturities Repayments Of Principal In Next Twelve Months
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39130000 USD
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9783000 USD
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835000 USD
CY2020Q2 us-gaap Long Term Debt
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eols Lessee Operating Lease Termination Period
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P36M
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P12M
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CY2020Q2 us-gaap Lessee Operating Lease Renewal Term
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P60M
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273000 USD
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267000 USD
us-gaap Operating Lease Cost
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547000 USD
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501000 USD
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12000 USD
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32000 USD
us-gaap Variable Lease Cost
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27000 USD
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61000 USD
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0 USD
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28000 USD
us-gaap Short Term Lease Cost
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168000 USD
us-gaap Short Term Lease Cost
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49000 USD
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285000 USD
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327000 USD
us-gaap Lease Cost
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742000 USD
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611000 USD
CY2020Q2 us-gaap Operating Lease Weighted Average Remaining Lease Term1
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P4Y7M6D
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0.094
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583000 USD
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1207000 USD
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1259000 USD
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1314000 USD
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1371000 USD
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115000 USD
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5849000 USD
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1138000 USD
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4711000 USD
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6382000 USD
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0 USD
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0 USD
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10000000 shares
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0.00001
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0 shares
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100000000 shares
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0.00001
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33748478 shares
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4361291 shares
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0.04
CY2020Q2 us-gaap Common Stock Capital Shares Reserved For Future Issuance
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P10Y
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2374000 USD
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2457000 USD
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5002000 USD
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
4455000 USD

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