2020 Q2 Form 10-Q Financial Statement

#000156604420000011 Filed on August 06, 2020

View on sec.gov

Income Statement

Concept 2020 Q2 2019 Q4 2019 Q2
Revenue $11.69M $135.0K $0.00
YoY Change -100.0%
Cost Of Revenue $178.9M $0.00 $19.36M
YoY Change 823.94%
Gross Profit -$167.2M $135.0K -$19.36M
YoY Change 763.56%
Gross Profit Margin -1430.33% 100.0%
Selling, General & Admin $26.46M $10.17M $6.803M
YoY Change 288.93% 202.68% 120.16%
% of Gross Profit 7533.33%
Research & Development $13.12M $11.76M $12.56M
YoY Change 4.48% -22.02% -22.62%
% of Gross Profit 8711.11%
Depreciation & Amortization $100.0K -$200.0K $80.00K
YoY Change 25.0% -2100.0%
% of Gross Profit -148.15%
Operating Expenses $39.58M $21.93M $17.22M
YoY Change 129.89% 18.93% -10.87%
Operating Profit -$167.2M -$37.43M -$19.36M
YoY Change 763.56% 111.04%
Interest Expense $1.070M $433.0K $739.0K
YoY Change 44.79% -48.82% -10.53%
% of Operating Profit
Other Income/Expense, Net $548.0K $739.0K
YoY Change -25.85% -10.53%
Pretax Income -$167.7M -$21.50M -$18.99M
YoY Change 782.95% 22.23% 127.46%
Income Tax -$259.0K $0.00
% Of Pretax Income
Net Earnings -$167.4M -$21.50M -$18.99M
YoY Change 781.59% 22.19% 127.54%
Net Earnings / Revenue -1432.58% -15924.44%
Basic Earnings Per Share -$4.83
Diluted Earnings Per Share -$4.83 -$3.560M -$775.1K
COMMON SHARES
Basic Shares Outstanding 34.66M shares 23.98M
Diluted Shares Outstanding 34.66M shares

Balance Sheet

Concept 2020 Q2 2019 Q4 2019 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $99.12M $60.44M $109.4M
YoY Change -9.4% -55.66% -28.87%
Cash & Equivalents $96.51M $43.76M $39.09M
Short-Term Investments $2.609M $16.68M $44.40M
Other Short-Term Assets $6.600M $19.10M $3.700M
YoY Change 78.38% 478.79% 60.87%
Inventory $5.801M $1.356M
Prepaid Expenses
Receivables $6.407M $135.0K
Other Receivables $4.000M $0.00
Total Short-Term Assets $119.3M $76.41M $113.1M
YoY Change 5.45% -45.22% -27.58%
LONG-TERM ASSETS
Property, Plant & Equipment $2.811M $2.885M $128.0K
YoY Change 2096.09% 1876.03%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $6.200M $166.0K $100.0K
YoY Change 6100.0% -44.67% -67.32%
Total Long-Term Assets $11.55M $4.745M $1.257M
YoY Change 819.01% 1008.64% -88.25%
TOTAL ASSETS
Total Short-Term Assets $119.3M $76.41M $113.1M
Total Long-Term Assets $11.55M $4.745M $1.257M
Total Assets $130.8M $81.16M $114.4M
YoY Change 14.39% -42.0% -31.47%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $10.00M $3.771M $4.704M
YoY Change 112.59% 14.62% -7.76%
Accrued Expenses $8.812M $3.381M $6.487M
YoY Change 35.84% -45.94% 96.58%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $24.23M $29.33M $11.91M
YoY Change 103.53% 207.27% 38.44%
LONG-TERM LIABILITIES
Long-Term Debt $32.92M $32.73M $0.00
YoY Change
Other Long-Term Liabilities $2.200M $1.500M $300.0K
YoY Change 633.33% 21328.57% 200.0%
Total Long-Term Liabilities $35.08M $34.26M $300.0K
YoY Change 11594.0% 489300.0% 200.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $24.23M $29.33M $11.91M
Total Long-Term Liabilities $35.08M $34.26M $300.0K
Total Liabilities $59.31M $63.58M $12.21M
YoY Change 385.9% 565.73% 40.31%
SHAREHOLDERS EQUITY
Retained Earnings -$518.3M -$310.6M -$146.0M
YoY Change 255.03% 180.73%
Common Stock $17.00K $1.000K $248.2M
YoY Change -99.99% -100.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $71.53M $17.58M $60.38M
YoY Change
Total Liabilities & Shareholders Equity $130.8M $81.16M $114.4M
YoY Change 14.39% -42.0% -31.47%

Cashflow Statement

Concept 2020 Q2 2019 Q4 2019 Q2
OPERATING ACTIVITIES
Net Income -$167.4M -$21.50M -$18.99M
YoY Change 781.59% 22.19% 127.54%
Depreciation, Depletion And Amortization $100.0K -$200.0K $80.00K
YoY Change 25.0% -2100.0%
Cash From Operating Activities -$35.86M -$13.95M -$12.72M
YoY Change 181.92% -16.01% 0.55%
INVESTING ACTIVITIES
Capital Expenditures -$70.00K $850.0K -$310.0K
YoY Change -77.42% -4350.0%
Acquisitions
YoY Change
Other Investing Activities $21.20M $4.690M $33.09M
YoY Change -35.93% -215.8% 330.86%
Cash From Investing Activities $21.13M $5.530M $32.77M
YoY Change -35.52% -235.87% 326.69%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 53.61M -22.96M 0.000
YoY Change -100.0%
NET CHANGE
Cash From Operating Activities -35.86M -13.95M -12.72M
Cash From Investing Activities 21.13M 5.530M 32.77M
Cash From Financing Activities 53.61M -22.96M 0.000
Net Change In Cash 38.88M -31.38M 20.05M
YoY Change 93.92% 51.74% -505.87%
FREE CASH FLOW
Cash From Operating Activities -$35.86M -$13.95M -$12.72M
Capital Expenditures -$70.00K $850.0K -$310.0K
Free Cash Flow -$35.79M -$14.80M -$12.41M
YoY Change 188.4% -10.79%

Facts In Submission

Frame Concept Type Concept / XBRL Key Value Unit
dei Entity Central Index Key
EntityCentralIndexKey
0001566044
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Document Fiscal Year Focus
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dei Document Fiscal Period Focus
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dei Amendment Flag
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dei Document Quarterly Report
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dei Document Period End Date
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dei Entity File Number
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dei Entity Registrant Name
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MENLO THERAPEUTICS INC.
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us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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us-gaap Comprehensive Income Net Of Tax
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us-gaap Comprehensive Income Net Of Tax
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us-gaap Comprehensive Income Net Of Tax
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mnlo Deemed Dividend To Warrants Holders Due To Warrant Modification
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CY2019Q2 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation And Exercise Of Stock Options
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CY2019Q2 us-gaap Stockholders Equity
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975000 USD
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54345000 USD
us-gaap Goodwill And Intangible Asset Impairment
GoodwillAndIntangibleAssetImpairment
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mnlo Contingent Stock Consideration Remeasurement Gain Loss
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us-gaap Gain Loss On Sale Of Property Plant Equipment
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0 USD
us-gaap Gain Loss On Sale Of Property Plant Equipment
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us-gaap Unrealized Gain Loss On Investments
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142000 USD
us-gaap Unrealized Gain Loss On Investments
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358000 USD
mnlo Increase Decrease In Employee Severance Liability Net Of Retirement Fund Profits
IncreaseDecreaseInEmployeeSeveranceLiabilityNetOfRetirementFundProfits
-21000 USD
mnlo Increase Decrease In Employee Severance Liability Net Of Retirement Fund Profits
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42000 USD
us-gaap Share Based Compensation
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12527000 USD
us-gaap Share Based Compensation
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2337000 USD
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us-gaap Other Noncash Income Expense
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
9807000 USD
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-246000 USD
us-gaap Increase Decrease In Other Noncurrent Assets
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6026000 USD
us-gaap Increase Decrease In Other Noncurrent Assets
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0 USD
us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
-10908000 USD
us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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2374000 USD
us-gaap Increase Decrease In Inventories
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4445000 USD
us-gaap Increase Decrease In Inventories
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0 USD
us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Payments To Acquire Property Plant And Equipment
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113000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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454000 USD
us-gaap Payments To Acquire Investments
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0 USD
us-gaap Payments To Acquire Investments
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16048000 USD
mnlo Proceeds From Business Merger
ProceedsFromBusinessMerger
38641000 USD
mnlo Proceeds From Business Merger
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0 USD
us-gaap Proceeds From Sale And Maturity Of Marketable Securities
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48577000 USD
us-gaap Proceeds From Sale And Maturity Of Marketable Securities
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57014000 USD
us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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40512000 USD
us-gaap Proceeds From Issuance Of Common Stock
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us-gaap Proceeds From Issuance Of Common Stock
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0 USD
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ProceedsFromStockOptionsExercised
100000 USD
us-gaap Proceeds From Stock Options Exercised
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18000 USD
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
53746000 USD
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
18000 USD
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
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52781000 USD
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
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11169000 USD
us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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1000 USD
us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
48000 USD
CY2019Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
44584000 USD
CY2018Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
28118000 USD
CY2020Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
97366000 USD
CY2019Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
39335000 USD
CY2020Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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CY2019Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
39085000 USD
CY2020Q2 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
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CY2019Q2 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
250000 USD
CY2020Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
97366000 USD
CY2019Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
39335000 USD
us-gaap Other Significant Noncash Transaction Value Of Consideration Received1
OtherSignificantNoncashTransactionValueOfConsiderationReceived1
4000 USD
us-gaap Stock Issued1
StockIssued1
163000 USD
us-gaap Stock Issued1
StockIssued1
0 USD
us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
1120000 USD
us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
867000 USD
us-gaap Capital Lease Obligations Incurred
CapitalLeaseObligationsIncurred
1120000 USD
us-gaap Capital Lease Obligations Incurred
CapitalLeaseObligationsIncurred
850000 USD
mnlo Interest Received
InterestReceived
298000 USD
mnlo Interest Received
InterestReceived
666000 USD
us-gaap Interest Paid Net
InterestPaidNet
1946000 USD
us-gaap Noncash Or Part Noncash Acquisition Value Of Assets Acquired1
NoncashOrPartNoncashAcquisitionValueOfAssetsAcquired1
0 USD
us-gaap Noncash Or Part Noncash Acquisition Value Of Liabilities Assumed1
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5827000 USD
us-gaap Interest Paid Net
InterestPaidNet
0 USD
us-gaap Noncash Or Part Noncash Acquisition Value Of Assets Acquired1
NoncashOrPartNoncashAcquisitionValueOfAssetsAcquired1
117270000 USD
us-gaap Noncash Or Part Noncash Acquisition Value Of Liabilities Assumed1
NoncashOrPartNoncashAcquisitionValueOfLiabilitiesAssumed1
0 USD
us-gaap Noncash Or Part Noncash Acquisition Net Nonmonetary Assets Acquired Liabilities Assumed1
NoncashOrPartNoncashAcquisitionNetNonmonetaryAssetsAcquiredLiabilitiesAssumed1
111443000 USD
us-gaap Noncash Or Part Noncash Acquisition Net Nonmonetary Assets Acquired Liabilities Assumed1
NoncashOrPartNoncashAcquisitionNetNonmonetaryAssetsAcquiredLiabilitiesAssumed1
0 USD
mnlo Non Cash Acquisition Of Business Cash Acquired
NonCashAcquisitionOfBusinessCashAcquired
38641000 USD
mnlo Non Cash Acquisition Of Business Cash Acquired
NonCashAcquisitionOfBusinessCashAcquired
0 USD
mnlo Non Cash Acquisition Of Business Net Assets After Cash Acquired
NonCashAcquisitionOfBusinessNetAssetsAfterCashAcquired
72802000 USD
mnlo Non Cash Acquisition Of Business Net Assets After Cash Acquired
NonCashAcquisitionOfBusinessNetAssetsAfterCashAcquired
0 USD
us-gaap Nature Of Operations
NatureOfOperations
NATURE OF OPERATIONS<div style="text-indent:36pt;margin-top: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%;">Menlo Therapeutics Inc. (the “Company,” “Menlo” or the “combined company”) is a specialty pharmaceutical company focused on developing and commercializing proprietary therapies to address unmet needs in dermatology. The Company is a Delaware corporation, has its principal executive offices in Bridgewater, New Jersey and operates as one business segment.</span></div><div style="margin-top: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:400;line-height:120%;">Reverse Merger</span></div><div style="text-indent:36pt;margin-top: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%;">On November 10, 2019, the Company, Foamix Pharmaceuticals Ltd. (“Foamix”) and Giants Merger Subsidiary Ltd. (“Merger Sub”), a wholly-owned subsidiary of Menlo, entered into an Agreement and Plan of Merger (as amended by Amendment No. 1 to the Agreement and Plan of Merger, dated as of December 4, 2019, the “Merger Agreement”). Pursuant to the terms of the Merger Agreement, Merger Sub merged with and into Foamix, with Foamix surviving as a wholly-owned subsidiary of Menlo (the “Merger”) on March 9, 2020 (the “Effective Date”).</span></div><div style="text-indent:36pt;margin-top: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%;">For accounting purposes, the Merger is treated as a “reverse acquisition” under generally accepted accounting principles in the United States (“U.S. GAAP”) and Foamix is considered the accounting acquirer. Accordingly, upon consummation of the Merger, the historical financial statements of Foamix became the Company’s historical financial statements, and the historical financial statements of Foamix are included in the comparative prior periods. See “Note 3 – Business Combination” for more information on the Merger.</span></div><div style="margin-top: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:400;line-height:120%;">Products, Product Candidates and Licenses</span></div><div style="text-indent:36pt;margin-top: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%;">Prior to the Merger, in January 2020, Foamix launched AMZEEQ</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:5.2pt;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%;"> (minocycline) topical foam, 4% (“AMZEEQ”), a once-daily topical antibiotic for the treatment of inflammatory lesions of non-nodular moderate-to-severe acne vulgaris in patients 9 years of age and older. On May 28, 2020, the U.S. Food and Drug Administration (the "FDA") approved ZILXI</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%;"> (minocycline) topical form, 1.5% (formerly FMX103, "ZILXI"), for the treatment of inflammatory lesions of rosacea in adults. AMZEEQ and ZILXI are the first topical minocycline products approved by the FDA for any condition. </span></div><div style="text-indent:36pt;margin-top: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%;">AMZEEQ and ZILXI utilize the Company’s proprietary Molecule Stabilizing Technology (MST)</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%;"> that is also being used in the development of the Company’s other product candidate FCD105, a topical foam comprising minocycline and adapalene for the treatment of acne vulgaris. On June 2, 2020, the Company announced positive results from a Phase II clinical trial evaluating the preliminary safety and efficacy of FCD105 (3% minocycline / 0.3% adapalene foam), the first ever topical minocycline-based combination product, for the treatment of moderate-to-severe acne vulgaris. The Company has begun preparations to conduct an end-of-Phase II meeting with the FDA before the end of 2020.</span></div><div style="text-indent:36pt;margin-top: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 Company was developing serlopitant, a small molecule inhibitor of the neurokinin 1 receptor, or NK1-R, given as a once-daily, oral tablet, for the treatment of pruritus, or itch, associated with various conditions including prurigo nodularis, or PN. On April 6, 2020, the Company announced top line results from two Phase III clinical trials evaluating the safety and efficacy of once-daily oral serlopitant for the treatment of pruritus (itch) associated with PN, studies MTI-105 and MTI-106. Neither study met their respective primary endpoint of demonstrating statistically significant reduction in pruritus in patients treated with serlopitant compared to placebo based on a 4-point improvement responder analysis. The Company does not currently intend to pursue serlopitant. As a result, the Company recorded a full impairment charge related to the IPR&amp;D and Goodwill assets in its unaudited condensed consolidated statement of operations and comprehensive loss for the three and six months ended June 30, 2020. See "Note 3 - Business Combination" for more information.</span></div><div style="text-indent:36pt;margin-top: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%;">The Company is actively pursuing opportunities to out-license its products and product candidates to third parties for development and commercialization outside the United States, and recently entered into a license agreement with Cutia Therapeutics (HK) Limited (“Cutia”). See "Note 4 - Revenue Recognition." The Company has also licensed certain technology under development and licensing agreements to various pharmaceutical companies for development of certain products combining the Company’s foam technology with the licensee’s proprietary drugs.</span></div><div style="margin-top: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:400;line-height:120%;">Liquidity and Capital Resources</span></div><div style="text-indent:36pt;margin-top: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%;">The Company launched AMZEEQ in the United States in January 2020 and commenced generating product revenues in the first quarter of 2020. The Company’s activities prior to the commercial launch of AMZEEQ had primarily consisted of </span></div><div style="margin-top: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%;">developing product candidates, raising capital and performing research and development activities. Since inception, the Company has incurred losses and negative cash flows from operations. For the six months ended June 30, 2020, the Company incurred a net loss of $207.7 million and used $88.1 million of cash in operations. As of June 30, 2020, the Company had cash, cash equivalents and investments of $100.4 million and an accumulated deficit of $518.3 million.</span></div><div style="text-indent:36pt;margin-top: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%;">If the Company does not successfully commercialize AMZEEQ, ZILXI or any of its future product candidates, it may be unable to achieve profitability. Accordingly, the Company may be required to obtain further funding through public or private debt or equity offerings, or other arrangements. Adequate additional funding may not be available to the Company on acceptable terms, or at all. If the Company is unable to raise capital when needed or on acceptable terms, it may be forced to delay, reduce or eliminate its research and development programs or commercialization and manufacturing efforts. </span></div><div style="text-indent:36pt;margin-top: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%;">Prior to the Merger, the Company was focused on the development and commercialization of serlopitant. Following the receipt of the results of the Phase 3 clinical trials evaluating serlopitant for the treatment of PN and the impact of the COVID-19 pandemic, the Company has revised its operating plan to focus on the commercialization of AMZEEQ, ZILXI and its other topical minocycline product candidates. The Company does not currently intend to pursue serlopitant further. In addition, the revised operating plan reflects prudent resource prioritization and allocation management, including the rationalization of research and development spend to focus on existing product candidates.</span></div><div style="text-indent:36pt;margin-top: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%;">The Company believes that its existing cash, cash equivalents and investments as of June 30, 2020 and projected cash flows from revenues and the funds that the Company is entitled to receive under the license agreement with Cutia Therapeutics (HK) Limited ("Cutia"), will provide sufficient resources to fund its current ongoing needs for at least the next 12 months from the issuance of these financial statements, though there may be need for additional financing activity if the on-going COVID-19 pandemic continues for an extended duration and as the Company continues to grow.</span></div>As a result of the COVID-19 pandemic, the Company suspended the vast majority of its in-person interactions by its customer-facing professionals in healthcare settings and have engaged with these customers remotely as the Company seeks to continue to support healthcare professionals and patient care. During the second quarter of 2020, the Company began limited in-person customer meetings and interactions in certain regions, consistent with local government mandates. However, during the three and six months ended June 30, 2020, the Company's product sales for AMZEEQ were negatively impacted by office closures. As a result of the negative impact on the Company's product sales, the Company and its lenders amended the minimum net revenue covenant in the Amended and Restated Credit Agreement. See "Note 8 - Long-Term Debt." The length of time and extent to which the COVID-19 pandemic will directly or indirectly impact the Company's business, results of operations and financial condition will depend on future developments that are highly uncertain, subject to change and difficult to predict. An extended duration of the COVID-19 pandemic could continue to negatively impact sales of AMZEEQ, and any future sales of ZILXI, and have a material adverse effect on the Company's liquidity, as well as the Company's ability to remain in compliance with the minimum net revenue covenants contained in the Company's loan documents.
us-gaap Number Of Reportable Segments
NumberOfReportableSegments
1 segments
us-gaap Net Income Loss
NetIncomeLoss
-207700000 USD
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-88100000 USD
CY2020Q2 us-gaap Cash Cash Equivalents And Short Term Investments
CashCashEquivalentsAndShortTermInvestments
100400000 USD
CY2020Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-518300000 USD
us-gaap Use Of Estimates
UseOfEstimates
Use of Estimates<div style="margin-top: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%;">The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of income and expenses during the reporting periods. Significant items subject to such estimates and assumptions include accounting for business combinations, impairments of goodwill and intangible assets and revenue recognition. Actual results could differ from the Company’s estimates.</span></div><div style="margin-top: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%;">The extent to which COVID-19 impacts the Company’s business and financial results will depend on numerous evolving factors including, but not limited to: the magnitude and duration of COVID-19, the extent to which the pandemic impacts worldwide macroeconomic conditions, including interest rates, employment rates and health insurance coverage; the speed of the anticipated recovery; and governmental and business reactions to the pandemic. For the three and six months ended June 30, 2020, the Company's product sales for AMZEEQ were negatively impacted by office closures due to the pandemic. In addition, the Company further assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of June 30, 2020 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s allowance for doubtful accounts and credit losses, inventory and related reserves, impairments of long-lived assets and revenue recognition. The Company recorded impairments of goodwill and certain indefinite-lived intangible assets; however, these were unrelated to the impact of COVID-19 (See "Note 3 - Business Combination" for more information). The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods.</span></div>
CY2020Q2 mnlo Contingent Stock Right Shares Conversion
ContingentStockRightSharesConversion
1.2082
CY2020Q2 mnlo Business Combination Effective Exchange Ratio
BusinessCombinationEffectiveExchangeRatio
1.8006
CY2020Q2 mnlo Contingent Stock Right Shares Conversion
ContingentStockRightSharesConversion
1.2082
CY2020Q2 mnlo Effective Exchange Ratio
EffectiveExchangeRatio
1.8006
CY2020Q2 mnlo Shares Issued Upon Conversion Of Common Stock Rights Per Agreement
SharesIssuedUponConversionOfCommonStockRightsPerAgreement
74544413 shares
CY2020Q2 mnlo Post Merger Parent Ownership By Pre Merger Subsidiary Shareholders
PostMergerParentOwnershipByPreMergerSubsidiaryShareholders
0.82
CY2020Q2 mnlo Post Merger Parent Ownership By Pre Merger Parent Stockholders
PostMergerParentOwnershipByPreMergerParentStockholders
0.18
CY2020Q1 mnlo Business Combination Acquiree Common Stock Rights Converted To Common Stock
BusinessCombinationAcquireeCommonStockRightsConvertedToCommonStock
19600000 USD
us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
4000000.0 USD
CY2020Q2 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
4000000.0 USD
CY2020Q2 mnlo Contingent Stock Right Shares Conversion
ContingentStockRightSharesConversion
1.2082
CY2020Q2 mnlo Effective Exchange Ratio
EffectiveExchangeRatio
1.8006
CY2020Q2 mnlo Shares Issued Upon Conversion Of Common Stock Rights Per Agreement
SharesIssuedUponConversionOfCommonStockRightsPerAgreement
74544413 shares
CY2020Q2 mnlo Post Merger Parent Ownership By Pre Merger Subsidiary Shareholders
PostMergerParentOwnershipByPreMergerSubsidiaryShareholders
0.82
CY2020Q2 mnlo Post Merger Parent Ownership By Pre Merger Parent Stockholders
PostMergerParentOwnershipByPreMergerParentStockholders
0.18
CY2020Q2 mnlo Contingent Stock Consideration Remeasurement Gain Loss
ContingentStockConsiderationRemeasurementGainLoss
-84700000 USD
CY2020Q2 us-gaap Business Combination Contingent Consideration Liability
BusinessCombinationContingentConsiderationLiability
104400000 USD
CY2020Q2 mnlo Shares Issued Upon Conversion Of Common Stock Rights Per Agreement
SharesIssuedUponConversionOfCommonStockRightsPerAgreement
74544413 shares
CY2020Q2 us-gaap Share Price
SharePrice
1.40
CY2020Q2 us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
11688000 USD
us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
-205082000 USD
us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
-69547000 USD
CY2020Q2 us-gaap Business Combination Pro Forma Information Revenue Of Acquiree Since Acquisition Date Actual
BusinessCombinationProFormaInformationRevenueOfAcquireeSinceAcquisitionDateActual
0 USD
us-gaap Business Combination Pro Forma Information Revenue Of Acquiree Since Acquisition Date Actual
BusinessCombinationProFormaInformationRevenueOfAcquireeSinceAcquisitionDateActual
0 USD
CY2020Q2 us-gaap Business Combination Pro Forma Information Earnings Or Loss Of Acquiree Since Acquisition Date Actual
BusinessCombinationProFormaInformationEarningsOrLossOfAcquireeSinceAcquisitionDateActual
7594000 USD
us-gaap Business Combination Pro Forma Information Earnings Or Loss Of Acquiree Since Acquisition Date Actual
BusinessCombinationProFormaInformationEarningsOrLossOfAcquireeSinceAcquisitionDateActual
19637000 USD
CY2019Q2 us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
0 USD
us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
13438000 USD
us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
308000 USD
CY2020Q2 us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
-167441000 USD
CY2019Q2 us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
-35470000 USD
CY2020Q2 us-gaap Business Acquisition Pro Forma Earnings Per Share Diluted
BusinessAcquisitionProFormaEarningsPerShareDiluted
-1.21
CY2020Q2 us-gaap Business Acquisition Pro Forma Earnings Per Share Basic
BusinessAcquisitionProFormaEarningsPerShareBasic
-1.21
CY2019Q2 us-gaap Business Acquisition Pro Forma Earnings Per Share Basic
BusinessAcquisitionProFormaEarningsPerShareBasic
-0.59
CY2019Q2 us-gaap Business Acquisition Pro Forma Earnings Per Share Diluted
BusinessAcquisitionProFormaEarningsPerShareDiluted
-0.59
CY2020Q2 mnlo Revenue Recognition Distribution Trade Discounts And Allowances
RevenueRecognitionDistributionTradeDiscountsAndAllowances
5900000 USD
CY2019Q4 us-gaap Short Term Investments
ShortTermInvestments
16680000 USD
CY2020Q2 mnlo Adjustments To Supplemental Proforma Transaction Costs
AdjustmentsToSupplementalProformaTransactionCosts
0 USD
CY2019Q2 mnlo Adjustments To Supplemental Proforma Transaction Costs
AdjustmentsToSupplementalProformaTransactionCosts
0 USD
us-gaap Business Acquisition Pro Forma Earnings Per Share Diluted
BusinessAcquisitionProFormaEarningsPerShareDiluted
-1.23
us-gaap Business Acquisition Pro Forma Earnings Per Share Basic
BusinessAcquisitionProFormaEarningsPerShareBasic
-1.23
us-gaap Business Acquisition Pro Forma Earnings Per Share Diluted
BusinessAcquisitionProFormaEarningsPerShareDiluted
-1.16
us-gaap Business Acquisition Pro Forma Earnings Per Share Basic
BusinessAcquisitionProFormaEarningsPerShareBasic
-1.16
mnlo Adjustments To Supplemental Proforma Transaction Costs
AdjustmentsToSupplementalProformaTransactionCosts
14931000 USD
mnlo Adjustments To Supplemental Proforma Transaction Costs
AdjustmentsToSupplementalProformaTransactionCosts
0 USD
CY2020Q2 mnlo Adjustments To Supplemental Proforma Acceleration Of Stock Based Compensation
AdjustmentsToSupplementalProformaAccelerationOfStockBasedCompensation
0 USD
CY2019Q2 mnlo Adjustments To Supplemental Proforma Acceleration Of Stock Based Compensation
AdjustmentsToSupplementalProformaAccelerationOfStockBasedCompensation
0 USD
mnlo Adjustments To Supplemental Proforma Acceleration Of Stock Based Compensation
AdjustmentsToSupplementalProformaAccelerationOfStockBasedCompensation
7199000 USD
mnlo Adjustments To Supplemental Proforma Acceleration Of Stock Based Compensation
AdjustmentsToSupplementalProformaAccelerationOfStockBasedCompensation
0 USD
CY2020Q2 mnlo Adjustments To Supplemental Proforma Combined Results Of Operations
AdjustmentsToSupplementalProformaCombinedResultsOfOperations
0 USD
CY2019Q2 mnlo Adjustments To Supplemental Proforma Combined Results Of Operations
AdjustmentsToSupplementalProformaCombinedResultsOfOperations
0 USD
mnlo Adjustments To Supplemental Proforma Combined Results Of Operations
AdjustmentsToSupplementalProformaCombinedResultsOfOperations
22130000 USD
mnlo Adjustments To Supplemental Proforma Combined Results Of Operations
AdjustmentsToSupplementalProformaCombinedResultsOfOperations
0 USD
mnlo Revenue Recognition Distribution Trade Discounts And Allowances
RevenueRecognitionDistributionTradeDiscountsAndAllowances
14100000 USD
CY2020Q2 mnlo Estimate Of Product Return Rate Minimum
EstimateOfProductReturnRateMinimum
0.02
CY2020Q2 mnlo Estimate Of Product Return Rate Maximum
EstimateOfProductReturnRateMaximum
0.03
CY2020Q2 us-gaap Other Receivables Net Current
OtherReceivablesNetCurrent
4000000.0 USD
CY2020Q2 us-gaap Marketable Securities
MarketableSecurities
2609000 USD
CY2019Q4 us-gaap Marketable Securities
MarketableSecurities
16680000 USD
CY2020Q2 mnlo Derivate Costs For Year
DerivateCostsForYear
0 USD
mnlo Derivative Maximum Term Of Contract
DerivativeMaximumTermOfContract
P1Y
CY2020Q2 us-gaap Derivative Amount Of Hedged Item
DerivativeAmountOfHedgedItem
0 USD
CY2020Q2 mnlo Foreign Exchange Risk Lien On Marketable Securities For Bank Guarantees Granted For Hedging Transactions
ForeignExchangeRiskLienOnMarketableSecuritiesForBankGuaranteesGrantedForHedgingTransactions
300000 USD
CY2020Q2 mnlo Foreign Exchange Risk Lien On Checking Account For Bank Guarantees Granted For Hedging Transactions
ForeignExchangeRiskLienOnCheckingAccountForBankGuaranteesGrantedForHedgingTransactions
300000 USD
CY2020Q2 us-gaap Short Term Investments
ShortTermInvestments
2609000 USD
CY2020Q2 us-gaap Available For Sale Debt Securities Accumulated Gross Unrealized Loss Before Tax
AvailableForSaleDebtSecuritiesAccumulatedGrossUnrealizedLossBeforeTax
0 USD
CY2020Q2 us-gaap Available For Sale Debt Securities Accumulated Gross Unrealized Gain Before Tax
AvailableForSaleDebtSecuritiesAccumulatedGrossUnrealizedGainBeforeTax
0 USD
CY2020Q2 us-gaap Available For Sale Securities Debt Securities
AvailableForSaleSecuritiesDebtSecurities
2018000 USD
CY2020Q2 us-gaap Available For Sale Debt Securities Amortized Cost Basis
AvailableForSaleDebtSecuritiesAmortizedCostBasis
2018000 USD
CY2019Q4 us-gaap Available For Sale Securities Debt Securities
AvailableForSaleSecuritiesDebtSecurities
15660000 USD
CY2019Q4 us-gaap Available For Sale Debt Securities Amortized Cost Basis
AvailableForSaleDebtSecuritiesAmortizedCostBasis
15656000 USD
CY2019Q4 us-gaap Available For Sale Debt Securities Accumulated Gross Unrealized Loss Before Tax
AvailableForSaleDebtSecuritiesAccumulatedGrossUnrealizedLossBeforeTax
0 USD
CY2019Q4 us-gaap Available For Sale Debt Securities Accumulated Gross Unrealized Gain Before Tax
AvailableForSaleDebtSecuritiesAccumulatedGrossUnrealizedGainBeforeTax
4000 USD
CY2019 us-gaap Other Than Temporary Impairment Loss Debt Securities Available For Sale
OtherThanTemporaryImpairmentLossDebtSecuritiesAvailableForSale
0 USD
us-gaap Other Than Temporary Impairment Loss Debt Securities Available For Sale
OtherThanTemporaryImpairmentLossDebtSecuritiesAvailableForSale
0 USD
us-gaap Proceeds From Sale And Maturity Of Available For Sale Securities
ProceedsFromSaleAndMaturityOfAvailableForSaleSecurities
36400000 USD
us-gaap Proceeds From Sale And Maturity Of Available For Sale Securities
ProceedsFromSaleAndMaturityOfAvailableForSaleSecurities
33000000.0 USD
CY2020Q2 us-gaap Restricted Investments
RestrictedInvestments
400000 USD
CY2019Q4 us-gaap Restricted Investments
RestrictedInvestments
400000 USD
CY2020Q2 us-gaap Inventory Write Down
InventoryWriteDown
0 USD
us-gaap Inventory Write Down
InventoryWriteDown
0 USD
CY2020Q2 us-gaap Inventory Raw Materials And Supplies
InventoryRawMaterialsAndSupplies
3387000 USD
CY2020Q2 mnlo Contingent Stock Right Shares Conversion
ContingentStockRightSharesConversion
1.2082
CY2019Q4 us-gaap Inventory Raw Materials And Supplies
InventoryRawMaterialsAndSupplies
500000 USD
CY2020Q2 us-gaap Inventory Work In Process
InventoryWorkInProcess
954000 USD
CY2019Q4 us-gaap Inventory Work In Process
InventoryWorkInProcess
0 USD
CY2020Q2 us-gaap Inventory Finished Goods
InventoryFinishedGoods
1460000 USD
CY2019Q4 us-gaap Inventory Finished Goods
InventoryFinishedGoods
856000 USD
CY2020Q2 us-gaap Inventory Gross
InventoryGross
5801000 USD
CY2019Q4 us-gaap Inventory Gross
InventoryGross
1356000 USD
CY2020Q1 mnlo Stock Issued During Period Shares Warrant Exchange
StockIssuedDuringPeriodSharesWarrantExchange
651640 shares
CY2020Q1 us-gaap Class Of Warrant Or Right Exercise Price Of Warrants Or Rights1
ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1
3.53
CY2019Q3 us-gaap Payment Of Financing And Stock Issuance Costs
PaymentOfFinancingAndStockIssuanceCosts
1100000 USD
CY2020Q2 us-gaap Interest Expense Debt
InterestExpenseDebt
1000000.0 USD
CY2020Q2 us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
100000 USD
CY2020Q2 mnlo Effective Exchange Ratio
EffectiveExchangeRatio
1.8006
CY2020Q2 mnlo Contingent Stock Right Shares Conversion
ContingentStockRightSharesConversion
1.2082
us-gaap Interest Expense Debt
InterestExpenseDebt
1900000 USD
us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
200000 USD
CY2020Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
20000000 shares
CY2020Q2 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2019Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2019Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2020Q2 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2020Q2 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2020Q2 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
300000000 shares
CY2020Q2 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.0001
us-gaap Payment Of Financing And Stock Issuance Costs
PaymentOfFinancingAndStockIssuanceCosts
300000 USD
mnlo Share Based Compensation Arrangement By Share Based Payment Award Options And Equity Instruments Other Than Options Grants In Period Total Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsAndEquityInstrumentsOtherThanOptionsGrantsInPeriodTotalGrantDateFairValue
11400000 USD
mnlo Share Based Compensation Arrangement By Share Based Payment Award Options And Equity Instruments Other Than Options Grants In Period Total Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsAndEquityInstrumentsOtherThanOptionsGrantsInPeriodTotalGrantDateFairValue
3700000 USD
CY2020Q2 mnlo Effective Exchange Ratio
EffectiveExchangeRatio
1.8006
CY2020Q2 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
10768000 USD
CY2019Q2 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
1388000 USD
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
12527000 USD
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
2337000 USD
CY2020Q2 us-gaap Lessee Operating Lease Term Of Contract
LesseeOperatingLeaseTermOfContract
P3Y
mnlo Vehicle Lease Prepayment Period
VehicleLeasePrepaymentPeriod
P3M
CY2020Q2 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
1267000 USD
CY2020Q2 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
993000 USD
CY2020Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
768000 USD
CY2020Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
90000 USD
CY2020Q2 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
3118000 USD
CY2020Q2 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
565000 USD
CY2020Q2 us-gaap Operating Lease Liability
OperatingLeaseLiability
2553000 USD
CY2020Q2 mnlo Restricted Investments To Secure Lease Agreements
RestrictedInvestmentsToSecureLeaseAgreements
700000 USD

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