0001867096-23-000069 | 10-Q | XBRL Viewer | Xeris Biopharma Holdings INC

Print Document View Excel Document

Consolidated Balance Sheets - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Current Assets
Cash and cash equivalents	$ 50,984,000	$ 121,966,000
Short-term investments	44,118,000	0
Trade accounts receivable, net	30,860,000	30,830,000
Inventory	29,039,000	24,735,000
Prepaid expenses and other current assets	10,512,000	9,287,000
Total current assets	165,513,000	186,818,000
Property and equipment, net	6,477,000	5,516,000
Operating lease right-of-use assets	3,886,000	3,992,000
Goodwill	22,859,000	22,859,000
Other assets	117,896,000	120,607,000
Other assets	4,729,000	4,730,000
Total assets	321,360,000	344,522,000
Current Liabilities
Accounts payable	11,983,000	4,606,000
Current operating lease liabilities	1,448,000	1,580,000
Other accrued liabilities	20,149,000	36,786,000
Accrued trade discounts and rebates	16,874,000	16,818,000
Accrued returns reserve	13,254,000	11,173,000
Current portion of contingent value rights	14,958,000	0
Other current liabilities	2,757,000	2,658,000
Total current liabilities	81,423,000	73,621,000
Long-term debt, net of unamortized debt issuance costs	187,623,000	187,075,000
Non-current operating lease liabilities	9,346,000	9,402,000
Non-current contingent value rights	9,371,000	25,688,000
Deferred tax liabilities	3,518,000	3,518,000
Other liabilities	31,000	31,000
Total liabilities	291,312,000	299,335,000
Commitments and contingencies (Note 15)
Stockholders' Equity
Preferred stock—par value $0.0001, 25,000,000 shares and 25,000,000 shares authorized and no shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	0	0
Common stock—par value $0.0001, 350,000,000 shares and 350,000,000 shares authorized as of March 31, 2023 and December 31, 2022, respectively; 137,291,277 and 136,273,090 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	14,000	14,000
Additional paid in capital	601,667,000	599,966,000
Accumulated deficit	(571,604,000)	(554,770,000)
Accumulated other comprehensive loss	(29,000)	(23,000)
Total stockholders’ equity	30,048,000	45,187,000
Total liabilities and stockholders’ equity	$ 321,360,000	$ 344,522,000

Inventory (Tables)

3 Months Ended

Mar. 31, 2023

Inventory [Line Items]

Schedule of Inventory

The components of inventory consist of the following (in thousands):


	March 31, 2023		December 31, 2022

Raw materials	$	10,909	$	7,410
Work in process	5,890		11,367
Finished goods	12,240		5,958
Inventory	$	29,039	$	24,735

Stock Compensation Plan (Tables)

3 Months Ended

Mar. 31, 2023

Share-based Payment Arrangement [Abstract]

Share-based Compensation, Activity

Stock option activity under the 2011 Plan, 2018 Plan, Inducement Plan and Assumed Plans for the three months ended March 31, 2023 was as follows:


	Number of Options	Weighted Average Exercise Price Per Share		Weighted Average Contractual Life (Years)
Outstanding - December 31, 2022	9,700,161	$	5.37	4.76
Granted	—	—


Exercised	—	—
Forfeited	(2,041)	5.95
Expired	(130,366)	12.42
Outstanding - March 31, 2023	9,567,754	$	5.27	4.57
Vested and expected to vest at March 31, 2023	9,567,754	$	5.27	4.57
Exercisable - March 31, 2023	8,978,290	$	5.34	4.34

Share-based Payment Arrangement, Expensed and Capitalized, Amount

The following table summarizes the reporting of total stock-based compensation expense resulting from stock options, RSUs and the ESPP (in thousands):


	Three Months Ended March 31,
		2023		2022

Research and development		$	322	$	547
Selling, general and administrative		2,242		2,754
Total stock-based compensation expense		$	2,564	$	3,301

Schedule of Nonvested Restricted Stock Units Activity

A summary of outstanding RSU awards and the activity for the three months ended March 31, 2023 was as follows:


	Number of Units	Weighted Average Grant Date Fair Value Per Share
Unvested balance - December 31, 2022	5,255,560	$	3.25
Granted	7,133,900	1.24
Vested	(1,761,864)	3.81
Forfeited	(66,247)	2.17
Unvested balance - March 31, 2023	10,561,349	$	1.80

Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Inventory Valuation Reserves	$ 600	$ 1,300

Short-term investments (Details) - USD ($)	3 Months Ended
Short-term investments (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Average remaining maturity	6 months
Short-term investments	$ 44,118,000	$ 0
Amortized Cost	44,124,000
Gross Unrealized Gains	5,000
Gross Unrealized Losses	(11,000)
Total Fair Value	44,118,000
Available for sale securities, allowance for credit loss during period	0
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	44,124,000
Gross Unrealized Gains	5,000
Gross Unrealized Losses	(11,000)
Total Fair Value	$ 44,118,000

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2023	May 01, 2023
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-40880
Entity Registrant Name	XERIS BIOPHARMA HOLDINGS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	87-1082097
Entity Address, Address Line One	1375 West Fulton Street
Entity Address, Address Line Two	Suite 1300
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60607
City Area Code	844
Local Phone Number	445-5704
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Trading Symbol	XERS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		137,311,468
Entity Central Index Key	0001867096
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Amendment Flag	false
Current Fiscal Year End Date	--12-31

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net sales	$ 33,196	$ 22,073
Operating expenses
Cost of goods sold	5,319	6,273
Research and development	4,838	6,250
Selling, general and administrative	33,605	35,913
Amortization of Intangible Assets	2,711	2,711
Total operating expenses	46,473	51,147
Loss from operations	(13,277)	(29,074)
Other income (expense)
Interest and other income	1,300	68
Interest expense	6,216	3,521
Change in fair value of warrants	0	1,221
Change in fair value of contingent value rights	1,359	(2,816)
Other income (expense)	(3,557)	(5,048)
Net loss before benefit from income taxes	(16,834)	(34,122)
Benefit from income taxes	0	408
Net loss	(16,834)	(33,714)
Other comprehensive income (loss), net of tax
Unrealized gains (losses) on investments	(6)	(35)
Comprehensive loss	$ (16,840)	$ (33,749)
Net loss per common share - basic (in dollars per share)	$ (0.12)	$ (0.25)
Net loss per common share - Diluted (in dollars per share)	$ (0.12)	$ (0.25)
Weighted average common shares outstanding - basic (in shares)	137,142,565	135,032,782
Weighted average common shares outstanding - Diluted (in shares)	137,142,565	135,032,782
Product revenue, net
Net sales	$ 32,265	$ 21,910
Royalty, contract and other revenue
Net sales	$ 931	$ 163

Long-Term Debt - Future Principal Payments (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Debt Disclosure [Abstract]
2024	$ 0
2025	47,175
2026	0
2027	150,000
Long-term debt total	197,175
2023	$ 0

Leases - Summary of Lease Cost Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$ 478	$ 445
Lease cost
Operating lease expense	413	467
Variable lease cost	350	225
Sublease income	(54)	(52)
Total lease cost	$ 709	$ 640

Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property and equipment consist of the following (in thousands):


	March 31, 2023		December 31, 2022

Lab equipment	$	3,967	$	3,841
Furniture and fixtures	1,742		1,355
Computer equipment	707		474
Office equipment	64		8
Software	353		307
Leasehold improvements	5,542		5,065
Total property and equipment	12,375		11,050
Less: accumulated depreciation and amortization	(5,898)		(5,534)
Property and equipment, net	$	6,477	$	5,516

Long-Term Debt - Narrative (Details)		1 Months Ended		3 Months Ended		6 Months Ended
Long-Term Debt - Narrative (Details)	Dec. 28, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2023 USD ($) $ / shares shares	Mar. 31, 2022 USD ($)	Dec. 31, 2020 USD ($) shares	Dec. 31, 2022 USD ($)	Jul. 07, 2020 USD ($)	Sep. 30, 2019 USD ($) tranche
Debt Instrument [Line Items]
Convertible notes purchased, due to exercise of underwriter option								$ 11,300,000
Principal amount of convertible notes converted						$ 39,900,000
Issuance of common stock upon conversion of convertible notes, shares \| shares						13,171,791
Proceeds from issuance of debt				$ 0	$ 97,295,000
Payments of debt issuance costs				$ 0	4,360,000
Outstanding warrants \| shares				94,012
Interest expense				$ (6,216,000)	(3,521,000)
Amortization of debt issuance costs				548,000	219,000
Loss on extinguishment of debt				$ 0	1,323,000
Warrants In Connection With Hayfin Loan Agreement Due March 2029
Debt Instrument [Line Items]
Outstanding warrants \| shares				1,315,789
Exercise Price Per Warrant \| $ / shares				$ 2.28
Convertible Notes
Debt Instrument [Line Items]
Debt Instrument, Face Amount				$ 144,746,000			$ 144,487,000	$ 86,300,000
Cash interest per annum on convertible notes								5.00%
Debt Issuance Costs, Gross								$ 5,100,000
Fair value				41,100,000
Per principal amount of Convertible Notes				$ 1,000
Maximum conversion rate of Convertible Notes \| shares				326.7974
Term A Loan [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount									$ 60,000,000
Repayments of Notes Payable			$ 20,000,000
Amended Loan and Security Agreement [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity									$ 85,000,000
Debt Instrument, Number Of Tranches \| tranche									3
Secured Debt
Debt Instrument [Line Items]
Debt Instrument, Face Amount		$ 100,000,000			100,000,000
Delayed Draw Term Loan
Debt Instrument [Line Items]
Debt Instrument, Face Amount		50,000,000			50,000,000
Proceeds from issuance of debt	$ 50,000,000
Hayfin Loan
Debt Instrument [Line Items]
Debt Instrument, Face Amount		43,500,000			$ 43,500,000
Debt Instrument, Payment Of Fees		$ 2,100,000
Debt Instrument, Interest Rate During Period		9.00%
Debt Instrument, Interest Rate, Replacement Rate		8.00%			8.00%
Debt Instrument, Replacement Rate		1.00%			1.00%
Debt Instrument, Basis Spread on Variable Rate		0.26161%
Payments of debt issuance costs		$ 3,600,000
Debt Instrument, Interest Rate, Effective Percentage				11.80%
Debt covenant, maximum cash on hand, early maturity				$ 15,000,000
Hayfin Loan \| Prime Rate
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		2.00%
Debt
Debt Instrument [Line Items]
Amortization of debt issuance costs				$ 500,000	$ 200,000

Organization and Nature of the Business Narrative (Details) $ / shares in Units, $ in Thousands	Mar. 31, 2023 USD ($) commerciallyAvailableProduct $ / shares	Dec. 31, 2022 USD ($) $ / shares
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number Of Commercially Available Products \| commerciallyAvailableProduct	3
Common stock par value (in dollars per share) \| $ / shares	$ 0.0001	$ 0.0001
Accumulated deficit \| $	$ 571,604	$ 554,770

- Definition

The cumulative amount of the reporting entity's undistributed earnings or deficit.

+ References + Details

Stock Compensation Plan Restricted stock units, activity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	9,567,754	9,700,161
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 1.80	$ 3.25
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	1.24
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	3.81
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 2.17
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 16.9
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition	2 years 6 months
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	10,561,349	5,255,560
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	7,133,900
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	(1,761,864)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	(66,247)

Other Accrued Liabilities (Notes)

3 Months Ended

Mar. 31, 2023

Accrued Expenses [Abstract]

Other Accrued Liabilities

Other accrued liabilities Other accrued liabilities consist of the following (in thousands):


	March 31, 2023		December 31, 2022
Accrued employee costs	$	8,761	$	13,400
Supply agreement - current portion	2,882		6,720
Accrued supply chain costs	440		562
Accrued marketing costs	1,099		2,593
Accrued research and development costs	1,067		1,411
Accrued restructuring charges	1,694		2,799
Accrued interest expense	498		4,656

Accrued other costs	3,708		4,645
Other accrued liabilities	$	20,149	$	36,786

Fair value measurements - CVR Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Contingent Value Rights [Roll Forward]
Balance at December 31, 2022	$ 25,688
Change in fair value of CVRs	(1,359)	$ 2,816
Current portion of contingent value rights	14,958		$ 0
Non-current contingent value rights	9,371		25,688
Balance at March 31, 2023			25,688
Level 3
Contingent Value Rights [Roll Forward]
Balance at December 31, 2022	25,688
Current portion of contingent value rights	14,958
Non-current contingent value rights	9,371
Balance at March 31, 2023			25,688
CVR Liabilities \| Level 3
Contingent Value Rights [Roll Forward]
Balance at December 31, 2022	25,688
Change in fair value of CVRs	(1,359)
Balance at March 31, 2023	24,329
Balance at March 31, 2023	$ 24,329		$ 25,688

Leases - Narrative (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Mar. 31, 2023	Dec. 31, 2022
Lessee, Lease, Description [Line Items]
Present value of lease liabilities		$ 10,794
Operating lease right-of-use assets		$ 3,886	$ 3,992
Remaining lease term, weighted-average		10 years 2 months 12 days
Lease discount rate, weighted-average		11.40%
Minimum
Lessee, Lease, Description [Line Items]
Renewal term		1 year
Maximum
Lessee, Lease, Description [Line Items]
Renewal term		5 years
Forecast \| Fulton Ogden Venture, LLC
Lessee, Lease, Description [Line Items]
Present value of lease liabilities	$ 22,800
Operating lease right-of-use assets	$ 17,400

Basis of presentation and summary of significant accounting policies and estimates (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Revenue recognition	Revenue recognition The Company applies the guidance in ASC 606, Revenue Recognition, to all contracts with customers within the scope of the standard. The Company sells product primarily to wholesalers or a specialty pharmacy that subsequently resell to retail pharmacies or patients. The Company enters into arrangements with payors, group purchasing organizations, and healthcare providers that provide for government-mandated or privately-negotiated rebates, chargebacks and discounts related to the Company’s products. The Company currently sells Gvoke, Keveyis and Recorlev in the United States only. Revenue is recognized when the Company's customer (e.g., a wholesaler or specialty pharmacy) obtains control of promised goods or services, which is when the Company's obligations under the terms of the contract with the customer are satisfied, based on the consideration the Company expects to receive in exchange for those goods or services. Revenues are recorded at the net product sales price, which includes estimated allowances for patient copay assistance programs, prompt payment discounts, payor rebates, chargebacks, service fees, and product returns, all of which are recorded at the time of sale to the pharmaceutical wholesaler or specialty pharmacy. The Company applies significant judgments and estimates in determining some of these allowances. If actual results differ from its estimates, adjustments are made to these allowances in the period in which the actual results or updates to estimates become known. Such revenue is reported as product revenue, net in the condensed consolidated statements of operations and comprehensive loss. Additionally, the Company earns revenue from research collaborations for the use of Xeris’ proprietary formulation technology platforms and royalties from branded products. Such revenue is recognized as earned in accordance with contract terms when it can be reasonably estimated and collectability is reasonably assured. This revenue is reported as royalty, contract and other revenue in the condensed consolidated statements of operations and comprehensive loss.
New accounting pronouncements	New accounting pronouncements Adopted accounting standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard requires entities to estimate an expected lifetime credit loss on financial assets ranging from short-term trade accounts receivable to long-term financings and report credit losses using an expected losses model rather than the incurred losses model that was previously used and establishes additional disclosures related to credit risks. For available-for-sale debt securities with unrealized losses, the standard requires allowances to be recorded instead of reducing the amortized cost of the investment. This standard limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and requires the reversal of previously recognized credit losses if the fair value increases. This standard would have been effective for the Company for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The effective date of ASC Topic 326 was then delayed until fiscal years beginning after December 15, 2022 for SEC filers that are eligible to be smaller reporting companies under the SEC’s definition, as well as private companies and not-for-profit entities. The Company adopted this standard beginning on January 1, 2023, and it did not have a material impact on the financial statements. Pending accounting standards In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This standard eliminates certain accounting models to simplify the accounting for convertible instruments, expands the disclosure requirements related to the terms and features of convertible instruments, and amends the guidance for the derivatives scope exception for contracts settled in an entity’s own equity. This standard enhances the consistency of earnings-per-share ("EPS") calculations by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in diluted EPS calculations and disclosures. This standard is effective for the Company for fiscal years beginning after December 15, 2023. Early adoption is permitted but not earlier than periods beginning after December 15, 2020. The Company is currently evaluating the impact the adoption of this new standard will have on the financial statements and disclosures. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This standard provides optional expedients for the application of GAAP, if certain criteria are met, to contracts and other transactions that reference London Inter-bank Offered Rate ("LIBOR") or other reference rates that are expected to be discontinued because of reference rate reform. This standard is effective for all entities as of March 12, 2020 through December 31, 2022. On December 21, 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022 to December 31, 2024. The Company is currently evaluating the impact the adoption of this standard will have on the financial statements and disclosures.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130561-203045

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130566-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130563-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130566-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130563-203045

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123372394&loc=d3e18823-107790

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130566-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130564-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130566-203045

+ Details

Net loss per common share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Net loss per common share

Basic and diluted net loss per common share are determined by dividing net loss applicable to common stockholders by the weighted average common shares outstanding during the period. For all periods presented, the shares issuable upon conversion, exercise or vesting of Convertible Notes, warrants, stock option awards and RSUs have been excluded from the calculation because their effects would be anti-dilutive. Therefore, the weighted average common shares outstanding used to calculate both basic and diluted net loss per common share are the same.

The following potentially dilutive securities were excluded from the computation of diluted weighted average common shares outstanding due to their anti-dilutive effect:


	As of March 31,
	2023	2022
Shares to be issued upon conversion of Convertible Notes	15,416,667	15,416,667
Vested and unvested stock options	9,567,754	10,456,601
Restricted stock units	10,561,349	5,302,517
Warrants	8,362,270	12,808,695
Total anti-dilutive securities excluded from EPS computation 1	43,908,040	43,984,480

1 Total anti-dilutive securities exclude CVRs which are settleable in cash, additional Xeris Biopharma shares, or a combination, at the election of the Company.

Revenue from Contract with Customer (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 33,196	$ 22,073
Product revenue, net
Disaggregation of Revenue [Line Items]
Net sales	32,265	21,910
Gvoke
Disaggregation of Revenue [Line Items]
Net sales	15,033	12,452
Keveyis
Disaggregation of Revenue [Line Items]
Net sales	12,755	9,324
Recorlev
Disaggregation of Revenue [Line Items]
Net sales	4,477	134
Royalty, contract and other revenue
Disaggregation of Revenue [Line Items]
Net sales	$ 931	$ 163

- 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 http://asc.fasb.org/extlink&oid=123359005&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 http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Warrants Schedule of Stockholders' Equity Note, Warrants or Rights (Details)	Mar. 31, 2023 $ / shares shares
Class of Warrant or Right [Line Items]
Outstanding warrants	94,012
Term A Warrants [Member]
Class of Warrant or Right [Line Items]
Outstanding warrants	53,720
Exercise Price Per Warrant \| $ / shares	$ 11.169
Term B Warrants [Member]
Class of Warrant or Right [Line Items]
Outstanding warrants	40,292
Exercise Price Per Warrant \| $ / shares	$ 11.169
Warrants In Connection With Horizon and Oxford Loan Agreement
Class of Warrant or Right [Line Items]
Outstanding warrants	125,999
Exercise Price Per Warrant \| $ / shares	$ 3.130
Warrants In Connection With CRG Loan Agreement
Class of Warrant or Right [Line Items]
Outstanding warrants	309,122
Exercise Price Per Warrant \| $ / shares	$ 9.410
Warrants In Connection With CRG Loan Amendment Dated January 2028
Class of Warrant or Right [Line Items]
Outstanding warrants	978,628
Exercise Price Per Warrant \| $ / shares	$ 12.760
Warrants In Connection With Avenue Capital Loan Agreement Due May 2025
Class of Warrant or Right [Line Items]
Outstanding warrants	209,633
Exercise Price Per Warrant \| $ / shares	$ 2.390
Warrants In Connection With Avenue Capital Loan Agreement Due December 2025
Class of Warrant or Right [Line Items]
Outstanding warrants	209,633
Exercise Price Per Warrant \| $ / shares	$ 2.390
Warrants In Connection With Armistice Securities Purchase Agreement
Class of Warrant or Right [Line Items]
Outstanding warrants	5,119,454
Exercise Price Per Warrant \| $ / shares	$ 3.223
Warrants In Connection With Hayfin Loan Agreement Due March 2029
Class of Warrant or Right [Line Items]
Outstanding warrants	1,315,789
Exercise Price Per Warrant \| $ / shares	$ 2.28
Total Warrants Assumed
Class of Warrant or Right [Line Items]
Outstanding warrants	8,268,258

Long-Term Debt

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Long-term Debt

Long-term debt

Convertible Senior Notes

In June 2020, Xeris Pharma completed a public offering of $86.3 million aggregate principal amount of Xeris Pharma's 5.00% Convertible Senior Notes due 2025 (the "Convertible Notes"), including $11.3 million pursuant to the underwriters' option to purchase additional notes, which was exercised in full in July 2020. Since January 15, 2021, the Convertible Notes bear cash interest at the rate of 5.00% per annum, payable semi-annually in arrears on January 15 and July 15 of each year.

Xeris Pharma incurred debt issuance costs of $5.1 million in connection with the issuance of the Convertible Notes. At any time before the close of business on the second scheduled trading day immediately before the maturity date, holders of Convertible Notes may convert their Convertible Notes at their option into shares of the Company’s common stock, together, if applicable, with cash in lieu of any fractional share, at a conversion rate of 326.7974 shares of the Company's common stock per $1,000 principal amount of Convertible Notes. In the second half of 2020, $39.9 million in principal amount of Convertible Notes were converted into 13,171,791 shares of Xeris Pharma’s common stock.

The Convertible Notes are governed by the terms of a base indenture for senior debt securities dated June 30, 2020 (the "Base Indenture"), between Xeris Pharma and U.S. Bank National Association, as trustee (the "Trustee"), as supplemented by the first supplemental indenture thereto dated June 30, 2020 (the "First Supplemental Indenture"), and the second supplemental indenture dated October 5, 2021 (the "Supplemental Indenture" and together with the Base Indenture and First Supplemental Indenture, the "Indenture"), among the Company, Xeris Pharma and the Trustee. The Convertible Notes will mature on July 15, 2025, unless earlier converted or redeemed or repurchased by the Company.

The Convertible Notes are senior, unsecured obligations and are equal in right of payment with Xeris Pharma's existing and future senior, unsecured indebtedness, senior in right of payment to its future indebtedness, if any, that is expressly subordinated to the Convertible Notes, and effectively subordinated to its existing and future secured indebtedness to the extent of the value of the

collateral securing that indebtedness. The Convertible Notes are structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent Xeris Pharma is not a holder thereof) preferred equity, if any, of the Company’s other direct and indirect subsidiaries.

As a result of the transactions associated with the acquisition of Strongbridge, and pursuant to the Second Supplemental Indenture, the Convertible Notes are no longer convertible into shares of common stock of Xeris Pharma. Instead, subject to the terms and conditions of the Indenture, the Convertible Notes will be exchangeable into cash and shares of common stock of the Company in proportion to the transaction consideration payable pursuant to the transaction agreement for the acquisition of Strongbridge, and the "Reference Property" provisions in the Indenture.

The fair value of the convertible senior notes is determined from using current interest rates based on credit ratings and the remaining term of maturity. As of March 31, 2023, the fair value of the convertible senior notes was approximately $41.1 million. The fair value of the convertible debt was estimated using inputs for volatility, the Company’s stock price, time to maturity, the risk-free rate and the Company’s credit spread, some of which are considered Level 3 inputs in the fair value hierarchy disclosed in "Note 12 - Fair value measurement".

Loan Agreement

In September 2019, Xeris Pharma entered into an Amended and Restated Loan and Security Agreement (the "Oxford Loan Agreement") with Oxford Finance LLC ("Oxford"), as the collateral agent and a lender, and Silicon Valley Bank, as a lender ("SVB", and together with Oxford, the "Prior Lenders"). The Oxford Loan Agreement provided for the Prior Lenders to extend up to $85.0 million in term loans to Xeris Pharma in three tranches, of which $60.0 million was drawn down in September 2019.

In June 2020, Xeris Pharma paid a portion of the term loan equal to the sum of $20.0 million, plus all accrued and unpaid interest. In November 2020, an additional $3.5 million was drawn from the term loan.

In March 2022, the Company, Xeris Pharma and certain subsidiary guarantors of the Company entered into a Credit Agreement and Guaranty (as amended, modified or amended and restated from time to time, the "Hayfin Loan Agreement") with the lenders from time to time parties thereto (the "Lenders") and Hayfin Services LLP, as administrative agent for the Lenders (in such capacity, together with its successors and assigns, the "Agent"), pursuant to which the Company and its subsidiaries party thereto granted a first priority security interest on substantially all of their assets, including intellectual property, subject to certain exceptions. The Hayfin Loan Agreement provided for the Lenders to extend $100.0 million in term loans to the Company on the closing date and up to an additional $50.0 million in delayed draw term loans during the one year period immediately following the closing date (collectively, the "Loans"). On December 28, 2022, the Company borrowed the full amount of such $50.0 million delayed draw term loan under the Hayfin Loan Agreement. In conjunction with the execution of the Hayfin Loan Agreement, the Oxford Loan Agreement remaining balance of $43.5 million and fees of $2.1 million in connection with the loan repayment were paid. In addition to utilizing the proceeds to repay the obligations under the Oxford Loan Agreement in full, the proceeds will otherwise be used for general corporate purposes.

The Loans incur interest at a floating per annum rate in an amount equal to the sum of (i) 9.0% (or 8.0% per annum if the replacement rate in effect is the Wall Street Journal Prime Rate) plus (ii) the greater of (x) (1) CME Group Benchmark Administration Limited (CBA) Term SOFR (or the replacement rate, if applicable) if CBA Term SOFR is greater than 1.00% plus 0.26161% or (2) 1.00% if CME Term SOFR is less than 1.00% and (y) one percent (1.00%) per annum (or 2.0% per annum if the replacement rate in effect is the Wall Street Journal Prime Rate). The Company has incurred total debt issuance costs of approximately $3.6 million related to the Hayfin Loan Agreement, which are being amortized to interest expense over the life of the loan using the effective interest method. The remaining balance of unamortized debt issuance costs have been reflected as a direct reduction to the loan balance. The effective interest rate, including the amortization of debt discount and debt issuance costs, amounts to 11.8%. The debt outstanding under the Hayfin Loan Agreement approximates fair value due to the variable interest rate on the debt.

The Loans will mature on March 8, 2027; provided, however, the Loans will mature on January 15, 2025 if the Convertible Notes are outstanding as of such date and either (i) the maturity date thereof has not been extended to a date on or after September 4, 2027 or (ii) the Company has not received net cash proceeds from one or more permitted equity raises or permitted raises of convertible debt which, together with no more than $15.0 million of cash on hand, is sufficient to redeem and discharge the Convertible Notes in full.

The components of debt are as follows (in thousands):


	March 31, 2023		December 31, 2022

Convertible Notes	$	47,175	$	47,175
Loan facility	144,746		144,487
Less: unamortized debt issuance costs	(4,298)		(4,587)
Long-term debt, net of unamortized debt issuance costs	$	187,623	$	187,075

The following table sets forth the Company’s future minimum principal payments on the Convertible Note and the loan facility (in thousands):


2023 remaining	$	—
2024	—
2025	47,175
2026	—
2027	150,000

	$	197,175

For the three months ended March 31, 2023 and 2022, the Company recognized interest expense of $6.2 million and $3.5 million, respectively, of which $0.5 million and $0.2 million, respectively, related to the amortization of debt discount and issuance costs and a $1.3 million loss on extinguishment of debt in the three months ended March 31, 2022 related to the Oxford Loan Agreement with the Prior Lenders, which ceased in March 2022.

Restructuring costs

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring costs

After the completion of the acquisition of Strongbridge on October 5, 2021, the Company undertook a restructuring plan to streamline the organization and realize operating expense synergies. The Company incurred total restructuring costs of approximately $11.1 million, which primarily related to employee termination costs. These costs were fully recognized and recorded by 2022 in selling, general and administrative expenses in the condensed consolidated statements of operations and comprehensive loss. The Company anticipates the plan will be paid out by the fourth quarter of 2023. The restructuring reserve is included in other accrued liabilities in the condensed consolidated balance sheets.

The following table summarizes the restructuring reserve for the three months ended March 31, 2023 (in thousands):


	Restructuring Costs



Balance accrued at December 31, 2022	2,799

Payments	(1,105)
Balance accrued at March 31, 2023	$	1,694

Statements of Stockholders' Equity (Parenthetical) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Convertible Preferred Stock and Stockholders' Equity (Deficit) [Abstract]
Shares withheld for tax (in shares)	743,677	197,257

Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

Identified intangible assets consist of the following (in thousands):


	Life (Years)	March 31, 2023						December 31, 2022
	Life (Years)	Gross assets		Accumulated amortization		Net		Gross assets		Accumulated amortization		Net
Definite-lived intangible asset - Keveyis	5	$	11,000	$	(3,300)	$	7,700	$	11,000	$	(2,750)	$	8,250
Definite-lived intangible asset - Recorlev	14	121,000		(10,804)		110,196		121,000		(8,643)		112,357
Total intangible assets		$	132,000	$	(14,104)	$	117,896	$	132,000	$	(11,393)	$	120,607

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

As of March 31, 2023, expected amortization expense for intangible assets subject to amortization for the next five years is as follows (in thousands):


2023 remaining	8,132
2024	10,843
2025	10,843
2026	10,293
2027	8,643

Thereafter	69,142
Total	$	117,896

Stock Compensation Plan Narrative (Details) - USD ($)	3 Months Ended
Stock Compensation Plan Narrative (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2018	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		1,822,000	4,714,982
Shares granted in period (in shares)	0
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 1,300,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition	1 year 2 months 12 days
Options \| Minimum \| Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	2 years
Options \| Minimum \| Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Options \| Minimum \| Share-based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Exchange Offer \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	7 years
Exchange Offer \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 16,900,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition	2 years 6 months
Restricted stock units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Restricted stock units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
2018 Stock Option and Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	3,851,526
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		193,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	577,860
Maximum employee payroll deduction percentage	15.00%
Common stock value, tax limit on employee stock purchase plan	$ 25,000
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	85.00%
Equity Inducement Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	347,079
Assumed Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	2,425,706

Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The components of debt are as follows (in thousands):


	March 31, 2023		December 31, 2022

Convertible Notes	$	47,175	$	47,175
Loan facility	144,746		144,487
Less: unamortized debt issuance costs	(4,298)		(4,587)
Long-term debt, net of unamortized debt issuance costs	$	187,623	$	187,075

Schedule of Maturities of Long-term Debt

The following table sets forth the Company’s future minimum principal payments on the Convertible Note and the loan facility (in thousands):


2023 remaining	$	—
2024	—
2025	47,175
2026	—
2027	150,000

	$	197,175

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=124435984&loc=d3e28541-108399

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21506-112644

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 55
-Paragraph 69B
-URI http://asc.fasb.org/extlink&oid=123466577&loc=SL123495735-112612

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=124435984&loc=d3e28551-108399

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 55
-Paragraph 69E
-URI http://asc.fasb.org/extlink&oid=123466577&loc=SL123495743-112612

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21521-112644

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21538-112644

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=123599511&loc=d3e64711-112823

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21475-112644

+ Details

Leases - Schedule of Operating Lease Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
2024	$ 1,556
2025	1,820
2026	1,869
2027	1,918
Thereafter	10,674
Total lease payments	18,942
Less: Effect of discounting to net present value	(8,148)
Present value of lease liabilities	10,794
Current operating lease liabilities	1,448	$ 1,580
Non-current operating lease liabilities	9,346	$ 9,402
Operating lease liability	10,794
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year	$ 1,105

Commitments and Contingencies (Details) contingentValueRight in Millions, $ in Millions	Mar. 31, 2023 USD ($)	Oct. 05, 2021 contingentValueRight
Letter of Credit
Other Commitments [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity \| $	$ 4.3
Letter of Credit \| Collateral Pledged
Other Commitments [Line Items]
Restricted Cash \| $	$ 4.3
Strongbridge
Other Commitments [Line Items]
Business Combination, Contingent Consideration, Number Of Contingent Value Rights \| contingentValueRight		74.1
Business Combination, Contingent Consideration, Number Of Additional Contingent Value Rights To Be Issued \| contingentValueRight		10.5

Fair value measurements (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements, Recurring and Nonrecurring

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value as of March 31, 2023 and December 31, 2022 (in thousands):


	Total as of March 31, 2023		Level 1		Level 2		Level 3

Assets
Cash and cash equivalents:
Cash and money market funds	$	50,984	$	50,984	$	—	$	—

Investments:
U.S. government securities	$	44,118	$	44,118	$	—	$	—





Liabilities
Current portion of contingent value rights	$	14,958	$	—	$	—	$	14,958
Non-current contingent value rights	$	9,371	$	—	$	—	$	9,371
Warrant liabilities	$	9	$	—	$	—	$	9


	Total as of December 31, 2022		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents:
Cash and money market funds	$	121,966	$	121,966	$	—	$	—








Liabilities
Contingent value rights	$	25,688	$	—	$	—	$	25,688
Warrant liabilities	$	9	$	—	$	—	$	9

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents the change in the CVR liabilities (in thousands):




Balance at December 31, 2022	$	25,688
Change in fair value of CVRs	(1,359)
Balance at March 31, 2023	$	24,329

Balance at Current portion of contingent value rights	$	14,958
Balance at Non-current contingent value rights	9,371
Balance at March 31, 2023	$	24,329

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Disaggregated revenue

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Disaggregated revenue

Disaggregated revenue by product is as follows:


	Three months ended March 31,
		2023		2022
Product revenue (in thousands):
Gvoke		$	15,033	$	12,452
Keveyis		12,755		9,324
Recorlev		4,477		134
Product revenue, net		32,265		21,910
Royalty, contract and other revenue		931		163
Total revenue		$	33,196	$	22,073

- 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 http://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 http://asc.fasb.org/extlink&oid=123351226&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 http://asc.fasb.org/extlink&oid=123351226&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 http://asc.fasb.org/extlink&oid=123351226&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 http://asc.fasb.org/extlink&oid=123351226&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 http://asc.fasb.org/extlink&oid=123351226&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 http://asc.fasb.org/extlink&oid=123351226&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 http://asc.fasb.org/extlink&oid=123351226&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 http://asc.fasb.org/extlink&oid=123351226&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 http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accrued Expenses [Abstract]
Accrued employee costs	$ 8,761	$ 13,400
Supply agreement - current portion	2,882	6,720
Accrued supply chain costs	440	562
Accrued marketing and selling costs	1,099	2,593
Accrued research and development costs	1,067	1,411
Accrued restructuring charges	1,694	2,799
Accrued interest expense	498	4,656
Accrued other costs	3,708	4,645
Other accrued liabilities	$ 20,149	$ 36,786

Warrants Narrative (Details) - USD ($)		3 Months Ended
Warrants Narrative (Details) - USD ($)	Jan. 03, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Class of Warrant or Right [Line Items]
Common stock par value (in dollars per share)		$ 0.0001		$ 0.0001
Outstanding warrants		94,012
Loss (gain) on warrants		$ 0	$ (1,221,000)
Private Placement
Class of Warrant or Right [Line Items]
Proceeds from sale of stock	$ 30,000,000
Term A Warrants [Member]
Class of Warrant or Right [Line Items]
Outstanding warrants		53,720
Exercise Price Per Warrant		$ 11.169
Loss (gain) on warrants		$ 1,000	12,000
Term B Warrants [Member]
Class of Warrant or Right [Line Items]
Outstanding warrants		40,292
Exercise Price Per Warrant		$ 11.169
Loss (gain) on warrants		$ (1,000)	8,000
Assumed Strongbridge Private Placement Warrants
Class of Warrant or Right [Line Items]
Loss (gain) on warrants		$ 1,700,000	$ 1,200,000
Warrants In Connection With Armistice Securities Purchase Agreement
Class of Warrant or Right [Line Items]
Outstanding warrants		5,119,454
Exercise Price Per Warrant		$ 3.223
Warrants term		5 years
Common Stock \| Private Placement
Class of Warrant or Right [Line Items]
Stock issued (in shares)	10,238,908
Common stock par value (in dollars per share)	$ 0.0001
Price per share of stock issued (in dollars per share)	$ 2.93
Warrants In Connection With Hayfin Loan Agreement Due March 2029
Class of Warrant or Right [Line Items]
Outstanding warrants		1,315,789
Exercise Price Per Warrant		$ 2.28

Property and Equipment - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation Depletion and Amortization, not including asset impairments	$ 400	$ 300

Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Shares, Issued, Beginning Balance at Dec. 31, 2021		124,873,316
Stockholders' Equity Attributable to Parent, Beginning Balance at Dec. 31, 2021	$ 95,231	$ 13	$ 555,359	$ (31)	$ (460,110)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(33,714)				(33,714)
Issuance of common stock upon equity offerings, shares		10,238,908
Issuance of common stock upon equity offerings, value	30,000	$ 1	29,999
Exercise and vesting of stock options, shares		11,228
Exercise and vesting of stock options, value	8		8
Adjustments to Additional Paid in Capital, Warrant Issued	2,080		2,080
Stock Issued During Period, Shares, Vesting Of Restricted Stock Units		404,743
Stock-based compensation	3,301		3,301
Other comprehensive loss	(35)			(35)
Shares, Issued at Mar. 31, 2022		135,528,195
Stockholders' Equity Attributable to Parent at Mar. 31, 2022	96,455	$ 14	590,331	(66)	(493,824)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Payments Related To Tax Withholding For Share Based Compensation, RSUs	(416)		(416)
Shares, Issued, Beginning Balance at Dec. 31, 2022		136,273,090
Stockholders' Equity Attributable to Parent, Beginning Balance at Dec. 31, 2022	45,187	$ 14	599,966	(23)	(554,770)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (16,834)				(16,834)
Exercise and vesting of stock options, shares	0
Stock Issued During Period, Shares, Vesting Of Restricted Stock Units		1,018,187
Stock-based compensation	$ 2,564		2,564
Other comprehensive loss	(6)			(6)
Shares, Issued at Mar. 31, 2023		137,291,277
Stockholders' Equity Attributable to Parent at Mar. 31, 2023	30,048	$ 14	601,667	$ (29)	$ (571,604)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Payments Related To Tax Withholding For Share Based Compensation, RSUs	$ (863)		$ (863)

Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

The Company has non-cancellable operating leases for office and laboratory space, which expire at various times in 2031 and 2037. The non-cancellable lease agreements provide for monthly lease payments, which increase during the term of each lease agreement.

On September 29, 2022, Xeris Pharma amended and restated its existing lease with Fulton Ogden Venture, LLC to extend and expand the leased premises to accommodate the Company’s relocation of its headquarters to such premises. The term of the space existing prior to the amendment and restatement commenced on January 1, 2021 and the lease for the combined expanded space commenced on April 1, 2023. The term of the amended and restated lease will expire on March 31, 2036, unless extended or earlier terminated pursuant to the terms of the lease. The estimated initial operating lease liability related to the expansion portion of the premises leased pursuant to the amended and restated lease is approximately $22.8 million and upon commencement of the expansion space term on April 1, 2023, the operating lease right-of-use asset is approximately $17.4 million.

All of the Company's leases are classified as operating leases, which are included as operating lease right-of-use assets and current and non-current operating lease liabilities in the condensed consolidated balance sheets. The Company’s operating lease costs are included in operating expenses in the accompanying condensed consolidated statements of operations and comprehensive loss. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

A majority of the Company's lease agreements include fixed rental payments. Certain lease agreements include fixed rental payments that are adjusted periodically by a fixed rate. The fixed payments, including the effects of changes in the fixed rate or amount, and renewal options reasonably certain to be exercised, are included in the measurement of the related lease liability. Most of the real estate leases include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more. The exercise of lease renewal options is at the Company's sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term, which includes renewal options reasonably certain to be exercised. The majority of the

Company's real estate leases require that the Company pay maintenance, real estate taxes and insurance in addition to rent. These payments are generally variable and based on actual costs incurred by the lessor. Therefore, these amounts are not included in the consideration of the contract when determining the right-of-use asset and lease liability, but are reflected as variable lease expenses.

As the interest rate implicit in the lease is not readily determinable, the Company uses the incremental borrowing rate as the discount rate. The Company considers observable inputs as of the effective date of the ASC 842 adoption including the credit rating, existing borrowings and other relevant borrowing rates, such as risk-free rates like the United States Treasury rate, and then adjusting as necessary for the appropriate lease term. The incremental borrowing rate is reassessed if there is a change to the lease term or if a modification occurs and it is not accounted for as a separate contract. As of March 31, 2023, the Company’s operating leases had a weighted-average remaining lease term of 10.2 years and a weighted-average discount rate of 11.4%.

Supplemental cash flow information related to the Company’s operating and finance leases was as follows (in thousands):


	Three Months Ended March 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	478	$	445

The Company reports the amortization of operating lease right-of-use assets and the change in operating lease liabilities on a net basis in other in the operating activities of the accompanying condensed consolidated statements of cash flows.

The components of lease expense were as follows (in thousand):


	Three Months Ended March 31,
Lease cost	2023		2022
Operating lease expense	$	413	$	467
Variable lease cost	350		225
Sublease income	(54)		(52)
Total lease cost	$	709	$	640

As of March 31, 2023, maturities of lease liabilities are summarized as follows (in thousands):


2023 remaining	$	1,105
2024	1,556
2025	1,820
2026	1,869
2027	1,918

Thereafter	10,674
Total lease payments	18,942
Less: Effect of discounting to net present value	(8,148)
Present value of lease liabilities	$	10,794

Operating lease liabilities, current	1,448
Operating lease liabilities, non-current	9,346
Total operating lease liabilities	$	10,794

Property and Equipment

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property and equipmentProperty and equipment consist of the following (in thousands):


	March 31, 2023		December 31, 2022

Lab equipment	$	3,967	$	3,841
Furniture and fixtures	1,742		1,355
Computer equipment	707		474
Office equipment	64		8
Software	353		307
Leasehold improvements	5,542		5,065
Total property and equipment	12,375		11,050
Less: accumulated depreciation and amortization	(5,898)		(5,534)
Property and equipment, net	$	6,477	$	5,516

Depreciation and amortization expense relating to property and equipment were $0.4 million and $0.3 million for the three months ended March 31, 2023 and 2022, respectively.

Basis of presentation and summary of significant accounting policies and estimates (Tables)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Schedule of Property and Equipment Useful Lives

Property and equipment consist of the following (in thousands):


	March 31, 2023		December 31, 2022

Lab equipment	$	3,967	$	3,841
Furniture and fixtures	1,742		1,355
Computer equipment	707		474
Office equipment	64		8
Software	353		307
Leasehold improvements	5,542		5,065
Total property and equipment	12,375		11,050
Less: accumulated depreciation and amortization	(5,898)		(5,534)
Property and equipment, net	$	6,477	$	5,516

Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross assets	$ 132,000	$ 132,000
Accumulated amortization	(14,104)	(11,393)
Net	$ 117,896	120,607
Developed Technology Rights - Keveyis
Finite-Lived Intangible Assets [Line Items]
Life (Years)	5 years
Gross assets	$ 11,000	11,000
Accumulated amortization	(3,300)	(2,750)
Net	$ 7,700	8,250
Developed Technology Rights - Recorlev
Finite-Lived Intangible Assets [Line Items]
Life (Years)	14 years
Gross assets	$ 121,000	121,000
Accumulated amortization	(10,804)	(8,643)
Net	$ 110,196	$ 112,357

Consolidated Statement of Cash Flows $ in Thousands	3 Months Ended
Consolidated Statement of Cash Flows $ in Thousands	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)
Cash flows from operating activities
Net loss	$ (16,834)	$ (33,714)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	364	321
Amortization of Intangible Assets	2,711	2,711
Amortization of investments	382	(50)
Amortization of debt issuance costs	548	219
Amortization of operating right-of-use assets	106	0
Stock-based compensation	2,564	3,301
Loss on extinguishment of debt	0	(1,323)
Change in fair value of warrants	0	(1,221)
Change in fair value of contingent value rights	(1,359)	2,816
Changes in operating assets and liabilities
Trade accounts receivable	30	5,927
Prepaid expenses and other current assets	1,225	58
Inventory	3,817	157
Accounts payable	6,935	2,168
Other accrued liabilities	(13,931)	(13,658)
Accrued trade discounts and rebates	56	(48)
Accrued returns reserve	2,081	1,431
Supply agreement liabilities	(3,838)	(5,280)
Operating lease liabilities	(188)	0
Other	99	(2,686)
Net cash used in operating activities	(26,140)	(48,409)
Cash flows from investing activities
Capital expenditures	(238)	16
Payments to Acquire Investments	(43,741)	0
Sales and maturities of investments	0	6,700
Net cash used in investing activities	(43,979)	6,716
Cash flows from financing activities
Proceeds from equity offerings	0	30,000
Proceeds from issuance of debt	0	97,295
Repayments of Long-term Debt	0	43,496
Payments of debt issuance costs	0	4,360
Payments for loss on extinguishment of debt	0	(837)
Proceeds from exercise of stock awards		8
Repurchase of common stock withheld for taxes	863	416
Net cash provided by financing activities	(863)	78,194
Effect of exchange rate on cash and cash equivalents	0	(1)
Increase (decrease) in cash and cash equivalents	(70,982)	36,500
Cash and cash equivalents, beginning of period	126,314	67,271
Cash and cash equivalents, end of period	55,332	103,771
Supplemental schedule of cash flow information
Cash paid for interest	9,826	3,769
Supplemental schedule of non-cash investing and financing activities
Issuance of warrants related to loan agreement	0	2,080
Cash flows from operating activities:
Cash and cash equivalents	50,984	103,771
Restricted cash included in Other assets	4,348	0
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows	55,332	103,771
Accounting Standards Update 2016-02
Supplemental schedule of non-cash investing and financing activities
Initial operating lease right-of-use assets for adoption of ASU 2016-02	0	(6,277)
Initial current and non-current operating lease liabilities for adoption of ASU 2016-02	$ 0	$ 14,013

Intangible Assets - Expected Amortization (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 10,843
2025	10,843
2026	10,293
2027	8,643
Thereafter	69,142
Net	117,896	$ 120,607
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year	$ 8,132

Organization and Nature of the Business	3 Months Ended
Organization and Nature of the Business	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Nature of the Business	Organization and nature of the business Nature of business Xeris Biopharma Holdings, Inc. ("Xeris Biopharma" or the "Company") is a growth-oriented biopharmaceutical company committed to improving patients' lives by developing and commercializing clinically meaningful products across a range of therapies. The Company currently has three commercially available products: Gvoke, a ready-to-use, liquid-stable glucagon for the treatment of severe hypoglycemia; Keveyis, the first therapy approved in the United States to treat hyperkalemic, hypokalemic, and related variants of Primary Periodic Paralysis ("PPP"); and Recorlev, approved by the Food and Drug Administration ("FDA") in December 2021, a cortisol synthesis inhibitor for the treatment of endogenous hypercortisolemia in adult patients with Cushing’s syndrome. The Company also has a pipeline of development programs to bring new products forward using its proprietary formulation science, XeriSolTM and XeriJectTM. As used herein, the “Company” or “Xeris” refers to Xeris Pharmaceuticals, Inc. (“Xeris Pharma”) when referring to periods prior to the acquisition of Strongbridge Biopharma plc (“Strongbridge”) on October 5, 2021 and to Xeris Biopharma when referring to periods on or subsequent to October 5, 2021. Throughout this document, unless otherwise noted, references to Gvoke include Gvoke PFS, Gvoke HypoPen, Gvoke Kit and Ogluo (glucagon). Liquidity and capital resources The Company has incurred operating losses since inception and has an accumulated deficit of $571.6 million as of March 31, 2023. The Company expects to continue to incur net losses for at least the next 12 months beyond the issuance date of these condensed consolidated financial statements. Based on the Company’s current operating plans, existing working capital at March 31, 2023, the Company believes that its cash resources are sufficient to sustain operations and capital expenditure requirements for at least the next 12 months from the issuance date of these condensed consolidated financial statements. If needed, the Company may elect to finance its operations through equity or debt financing along with revenues. There can be no assurance that such funding may be available to the Company on acceptable terms, or at all, or that the Company will be able to successfully market and sell Gvoke, Keveyis and Recorlev. Market volatility resulting from COVID-19, geopolitical instability resulting from the ongoing military conflict between Russia and Ukraine, rising interest rates, inflationary pressures, the tightening of lending standards, any further deterioration in the macroeconomic economy or financial services industry resulting from actual or potential bank failures, or other factors could also adversely impact the Company's ability to access capital as and when needed. The issuance of equity securities may result in dilution to stockholders. If the Company raises additional funds through the issuance of additional debt, which may have rights, preferences and privileges senior to those of the Company's common stockholders, the terms of the debt could impose significant restrictions on the Company's operations. The failure to raise funds as and when needed could have a negative impact on the Company's financial condition and ability to pursue its business strategies. If additional funding is not secured when required, the Company may need to delay or curtail its operations until such funding is received, which would have a material adverse impact on the business prospects and results of operations.

Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible assets

Identified intangible assets consist of the following (in thousands):


	Life (Years)	March 31, 2023						December 31, 2022
	Life (Years)	Gross assets		Accumulated amortization		Net		Gross assets		Accumulated amortization		Net
Definite-lived intangible asset - Keveyis	5	$	11,000	$	(3,300)	$	7,700	$	11,000	$	(2,750)	$	8,250
Definite-lived intangible asset - Recorlev	14	121,000		(10,804)		110,196		121,000		(8,643)		112,357
Total intangible assets		$	132,000	$	(14,104)	$	117,896	$	132,000	$	(11,393)	$	120,607

As of March 31, 2023, expected amortization expense for intangible assets subject to amortization for the next five years is as follows (in thousands):


2023 remaining	8,132
2024	10,843
2025	10,843
2026	10,293
2027	8,643

Thereafter	69,142
Total	$	117,896

Stock Compensation Plan Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 2,564	$ 3,301
Research and development expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	322	547
Selling, General and Administrative Expenses [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 2,242	$ 2,754

Warrants (Notes)

3 Months Ended

Mar. 31, 2022

Warrants [Abstract]

Other Liabilities Disclosure

Warrants

On January 3, 2022, the Company entered into a securities purchase agreement in connection with a private placement with an affiliate of Armistice Capital, LLC (“Armistice”) for aggregate gross proceeds of approximately $30.0 million. In accordance with the purchase agreement, the Company issued to Armistice an aggregate of (i) 10,238,908 shares of the Company’s common stock, par value $0.0001 per share at a purchase price of $2.93 per share, and (ii) warrants to purchase an aggregate of 5,119,454 shares of the Company's common stock at an exercise price of $3.223 per share. The warrants became exercisable immediately upon the closing of the transaction and have a term of five years from the earliest of the date (a) of effectiveness of the resale registration statement, which was February 7, 2022, (b) all of the shares of the Company’s common stock issued or issuable to Armistice under the securities purchase agreement and all shares of the Company's common stock issuable upon exercise of the warrants (the "Warrant Shares") have been sold pursuant to Rule 144 or may be sold pursuant to Rule 144 without the requirement for the Company to be in compliance with the current public information required under Rule 144 and without volume or manner-of-sale restrictions, (c) following the one-year anniversary of the date of closing provided that the holder of Shares or Warrant Shares is not an affiliate of the Company, or (d) all of the shares and Warrant Shares may be sold pursuant to an exemption from registration under Section 4(a)(1) of the Securities Act without volume or manner-of-sale restrictions.

Associated with the Hayfin Loan Agreement disclosed in "Note 10 - Long-term debt", the Lenders also received warrants to purchase 1,315,789 shares of the common stock of the Company at a price of $2.28 per share. The warrants are (i) exercisable until March 8, 2029; (ii) freely transferable and detachable from the Loans; and (iii) subject to customary warrant holder rights and protections, including structural-based anti-dilution protection and adjustments for stock dividends, splits, combinations, reclassifications and the like.

As of March 31, 2023, the following warrants were outstanding:


Warrants classified as liabilities:	Outstanding Warrants	Exercise Price per Warrant	Expiration Date


2018 Term A Warrants	53,720	$11.169	February 2025
2018 Term B Warrants	40,292	$11.169	September 2025
	94,012
Warrants classified as equities:


Warrants in connection with CRG loan agreement	309,122	$9.410	July 2024
Warrants in connection with CRG loan amendment in January 2018	978,628	$12.760	January 2025
Warrants in connection with Avenue Capital loan agreement	209,633	$2.390	May 2025
Warrants in connection with Avenue Capital loan agreement	209,633	$2.390	December 2025
Warrants in connection with Horizon and Oxford loan agreement	125,999	$3.130	December 2026
Warrants in connection with Armistice securities purchase agreement	5,119,454	$3.223	February 2027
Warrants in connection with Hayfin Loan Agreement	1,315,789	$2.280	March 2029
	8,268,258

The Company recognized losses of $1,000 related to the 2018 Term A Warrants and gains of $1,000 related to the 2018 Term B Warrants upon the change in fair value of the warrants during the three months ended March 31, 2023. The Company recognized gains

of $1.2 million, $12,000 and $8,000 upon the change in fair value of the warrants during the three months ended March 31, 2022 related to the assumed Strongbridge private placement warrants, which expired in June 2022, the 2018 Term A Warrants and the 2018 Term B Warrants, respectively.

Consolidated Balance Sheets Parenthetical - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position Parenthetical [Abstract]
Preferred stock par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock shares authorized (in shares)	25,000,000	25,000,000
Preferred stock shares outstanding (in shares)	0	0
Preferred stock shares issued (in shares)	0
Common stock par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock shares authorized (in shares)	350,000,000	350,000,000
Common stock shares issues (in shares)	137,291,277	136,273,090
Common stock shares outstanding (in shares)	137,291,277	136,273,090

Restructuring costs (Tables)

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The following table summarizes the restructuring reserve for the three months ended March 31, 2023 (in thousands):


	Restructuring Costs



Balance accrued at December 31, 2022	2,799

Payments	(1,105)
Balance accrued at March 31, 2023	$	1,694

Basis of presentation and summary of significant accounting policies and estimates - Narrative (Details) - Customer Concentration Risk - Four Customers	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Revenue Benchmark \| Product revenue, net
Concentration Risk [Line Items]
Concentration risk percentage	96.00%	93.00%
Accounts Receivable
Concentration Risk [Line Items]
Concentration risk percentage	98.00%		99.00%

Inventory Components of Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Inventory [Line Items]
Raw materials	$ 10,909	$ 7,410
Work in process	5,890	11,367
Finished goods	12,240	5,958
Inventory	$ 29,039	$ 24,735

Disaggregated revenue (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

isaggregated revenue by product is as follows:


	Three months ended March 31,
		2023		2022
Product revenue (in thousands):
Gvoke		$	15,033	$	12,452
Keveyis		12,755		9,324
Recorlev		4,477		134
Product revenue, net		32,265		21,910
Royalty, contract and other revenue		931		163
Total revenue		$	33,196	$	22,073

Fair value measurements - Narrative (Details) - Strongbridge contingentValueRight in Millions	Oct. 05, 2021 USD ($) contingentValueRight
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration, Payable Per Contingent Value Right	$ 1.00
Business Combination, Contingent Consideration, Number Of Contingent Value Rights \| contingentValueRight	74.1
Business Combination, Contingent Consideration, Number Of Additional Contingent Value Rights To Be Issued \| contingentValueRight	10.5
Achievement In Net Sales Of Keveyis In 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration, Payable Per Contingent Value Right	$ 0.25
Business Combination, Contingent Consideration, Net Sales Threshold	40,000,000
Achievement In Net Sales Of Recorlev In 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration, Payable Per Contingent Value Right	0.25
Business Combination, Contingent Consideration, Net Sales Threshold	40,000,000
Achievement In Net Sales Of Recorlev In 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration, Payable Per Contingent Value Right	0.50
Business Combination, Contingent Consideration, Net Sales Threshold	$ 80,000,000

Fair value measurements

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair value measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified and disclosed in one of the following categories:

Level 1: Measured using unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2: Measured using quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs, other than quoted prices in active markets, that are observable either directly or indirectly.

Level 3: Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e., supported by little or no market activity).

Fair value measurements are classified based on the lowest level of input that is significant to the measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values stated below considers the market for the financial assets and liabilities, the associated credit risk and other factors as required. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value as of March 31, 2023 and December 31, 2022 (in thousands):


	Total as of March 31, 2023		Level 1		Level 2		Level 3

Assets
Cash and cash equivalents:
Cash and money market funds	$	50,984	$	50,984	$	—	$	—

Investments:
U.S. government securities	$	44,118	$	44,118	$	—	$	—





Liabilities
Current portion of contingent value rights	$	14,958	$	—	$	—	$	14,958
Non-current contingent value rights	$	9,371	$	—	$	—	$	9,371
Warrant liabilities	$	9	$	—	$	—	$	9


	Total as of December 31, 2022		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents:
Cash and money market funds	$	121,966	$	121,966	$	—	$	—








Liabilities
Contingent value rights	$	25,688	$	—	$	—	$	25,688
Warrant liabilities	$	9	$	—	$	—	$	9

Contingent Value Rights

As part of the 2021 acquisition of Strongbridge, the Company issued contingent value rights ("CVRs") representing additional contingent consideration of up to $1.00 for each CVR upon the achievement of the following:

•Keveyis Milestone: $0.25 per CVR, upon the earlier of the first listing of any patent in the FDA's Orange Book for Keveyis by the end of 2023 or the first achievement of at least $40 million in net revenue of Keveyis in 2023;

•2023 Recorlev Milestone: $0.25 per CVR, upon the first achievement of at least $40 million in net revenue of Recorlev in 2023; and

•2024 Recorlev Milestone: $0.50 per CVR, upon the first achievement of at least $80 million in net revenue of Recorlev in 2024.

There are approximately 74.1 million CVRs. Up to 10.5 million CVRs may be issued to holders of Strongbridge rollover options and assumed warrants upon the exercise thereof. CVRs are settleable in cash, common stock, or a combination of cash and common stock, at the Company's sole election.

Contingent consideration obligations are recorded at their estimated fair values and these obligations are revalued at each reporting period until the related contingencies are resolved. The CVRs are adjusted to fair value using the methods described above at the end of each reporting period. Significant changes which increase or decrease the probabilities of achieving the related milestones or shorten or lengthen the time required to achieve such events would result in corresponding increases or decreases in the fair values of these obligations.

The Company has determined that the CVR liabilities' fair values are Level 3 items within the fair value hierarchy. The following table presents the change in the CVR liabilities (in thousands):




Balance at December 31, 2022	$	25,688
Change in fair value of CVRs	(1,359)
Balance at March 31, 2023	$	24,329

Balance at Current portion of contingent value rights	$	14,958
Balance at Non-current contingent value rights	9,371
Balance at March 31, 2023	$	24,329

- 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

Short-term investments

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Short-term investments

The Company classifies investments in debt securities as available-for-sale. Debt securities are comprised of liquid investments that are highly rated securities and, as of March 31, 2023, consist of U.S. government securities, all with remaining maturities of less than one year. Debt securities as of March 31, 2023 had an average remaining maturity of 0.5 years. The debt securities are reported at fair value with unrealized gains or losses recorded in accumulated other comprehensive income (loss) in the condensed consolidated balance sheets. The cost of short-term investments is adjusted for amortization of premiums or accretion of discounts to maturity, and such amortization or accretion, as well as interest income, are included in interest and other income in the condensed consolidated statements of operations and comprehensive loss. Refer to "Note 12 - Fair Value Measurements", for information related to the fair value measurements and valuation methods utilized.

There were no short-term investments as of December 31, 2022. The following table represents the Company’s short-term investments by major security type as of March 31, 2023 (in thousands):


	March 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Total Fair Value

Investments:
U.S. government securities	$	44,124	$	5	$	(11)	$	44,118


Total available-for-sale investments	$	44,124	$	5	$	(11)	$	44,118

Allowance for Credit Losses

For available-for-sale securities in an unrealized loss position, the Company first assesses whether they are intended to sell, or if it is more likely than not that the Company will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through earnings. For available-for-sale securities that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the severity of the impairment, any changes in interest rates, market conditions, changes to the underlying credit ratings and forecasted recovery, among other factors. The credit-related portion of unrealized losses, and any subsequent improvements, are recorded in interest income through an allowance account. Any impairment that has not been recorded through an allowance for credit losses is included in other comprehensive loss on the statements of operations and comprehensive loss. No credit loss allowance was recorded in the three months ended March 31, 2023

Fair value measurements - Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and money market funds	$ 50,984	$ 121,966
Current portion of contingent value rights	14,958	0
Non-current contingent value rights	9,371	25,688
Contingent value rights		25,688
Other current liabilities	9	9
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and money market funds	50,984	121,966
Current portion of contingent value rights	0
Non-current contingent value rights	0
Contingent value rights		0
Other current liabilities	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and money market funds	0	0
Current portion of contingent value rights	0
Non-current contingent value rights	0
Contingent value rights		0
Other current liabilities	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and money market funds	0	0
Current portion of contingent value rights	14,958
Non-current contingent value rights	9,371
Contingent value rights		25,688
Other current liabilities	9	9
Level 3 \| CVR Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent value rights	24,329	$ 25,688
U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	44,118
U.S. government securities \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	44,118
U.S. government securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0
U.S. government securities \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	$ 0

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and contingencies Commitments Commitments to Taro The Company has a supply agreement with Taro Pharmaceuticals North America, Inc. ("Taro") to produce Keveyis. In 2023, the Company amended the agreement to extend the initial term until March 2027. As part of the agreement as amended, the Company has agreed to certain annual minimum marketing spend requirements and minimum purchase order quantities for each year, which in the case of the minimum purchase order quantities, is based on the previous year's purchases. Leases As of March 31, 2023, the Company had unused letters of credit of $4.3 million, which were issued primarily to secure leases. These letters of credit are collateralized by $4.3 million of restricted cash, which is recorded in other assets in the condensed consolidated balance sheets. Contingencies Litigation From time to time, the Company may become involved in various legal actions arising in the ordinary course of business. As of March 31, 2023, management was not aware of any existing, pending or threatened legal actions that would have a material impact on the financial position or results of operations of the Company. Long Term Debt In the event the Convertible Notes are still outstanding as of January 15, 2025 and the maturity date thereof has not been extended to a date on or after September 4, 2027, then unless the Company has received net cash proceeds from one or more permitted equity raises or permitted raises of convertible debt which, together with no more than $15.0 million of cash on hand, is sufficient to redeem and discharge the Convertible Notes in full, the loans outstanding under the Hayfin Loan Agreement will mature on January 15, 2025.

Other Accrued Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Accrued Expenses [Abstract]

Other Accrued Liabilities

Other accrued liabilities consist of the following (in thousands):


	March 31, 2023		December 31, 2022
Accrued employee costs	$	8,761	$	13,400
Supply agreement - current portion	2,882		6,720
Accrued supply chain costs	440		562
Accrued marketing costs	1,099		2,593
Accrued research and development costs	1,067		1,411
Accrued restructuring charges	1,694		2,799
Accrued interest expense	498		4,656

Accrued other costs	3,708		4,645
Other accrued liabilities	$	20,149	$	36,786

Warrants (Tables)

3 Months Ended

Mar. 31, 2023

Warrants [Abstract]

Schedule of Stockholders' Equity Note, Warrants or Rights

As of March 31, 2023, the following warrants were outstanding:


Warrants classified as liabilities:	Outstanding Warrants	Exercise Price per Warrant	Expiration Date


2018 Term A Warrants	53,720	$11.169	February 2025
2018 Term B Warrants	40,292	$11.169	September 2025
	94,012
Warrants classified as equities:


Warrants in connection with CRG loan agreement	309,122	$9.410	July 2024
Warrants in connection with CRG loan amendment in January 2018	978,628	$12.760	January 2025
Warrants in connection with Avenue Capital loan agreement	209,633	$2.390	May 2025
Warrants in connection with Avenue Capital loan agreement	209,633	$2.390	December 2025
Warrants in connection with Horizon and Oxford loan agreement	125,999	$3.130	December 2026
Warrants in connection with Armistice securities purchase agreement	5,119,454	$3.223	February 2027
Warrants in connection with Hayfin Loan Agreement	1,315,789	$2.280	March 2029
	8,268,258

Restructuring costs (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended
Restructuring costs (Details) - USD ($) $ in Thousands	Jan. 03, 2022	Jun. 30, 2020	Mar. 31, 2023	Dec. 31, 2022	Nov. 30, 2020	Jul. 07, 2020	Sep. 30, 2019
Restructuring Cost and Reserve [Line Items]
Accrued restructuring charges			$ 1,694	$ 2,799
Private Placement
Restructuring Cost and Reserve [Line Items]
Proceeds from sale of stock	$ 30,000
Convertible Notes
Restructuring Cost and Reserve [Line Items]
Cash interest per annum on convertible notes						5.00%
Debt Instrument, Face Amount			144,746	144,487		$ 86,300
Term A Loan [Member]
Restructuring Cost and Reserve [Line Items]
Repayments of Notes Payable		$ 20,000
Debt Instrument, Face Amount							$ 60,000
Term D Loan
Restructuring Cost and Reserve [Line Items]
Debt Instrument, Face Amount					$ 3,500
2021 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost			11,100
Employee Severance
Restructuring Cost and Reserve [Line Items]
Payments			1,105
Accrued restructuring charges			$ 1,694	$ 2,799

Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Schedule of Lease Cost

Supplemental cash flow information related to the Company’s operating and finance leases was as follows (in thousands):


	Three Months Ended March 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	478	$	445

The components of lease expense were as follows (in thousand):


	Three Months Ended March 31,
Lease cost	2023		2022
Operating lease expense	$	413	$	467
Variable lease cost	350		225
Sublease income	(54)		(52)
Total lease cost	$	709	$	640

Schedule of Operating Lease Maturities (Topic 842)

As of March 31, 2023, maturities of lease liabilities are summarized as follows (in thousands):


2023 remaining	$	1,105
2024	1,556
2025	1,820
2026	1,869
2027	1,918

Thereafter	10,674
Total lease payments	18,942
Less: Effect of discounting to net present value	(8,148)
Present value of lease liabilities	$	10,794

Operating lease liabilities, current	1,448
Operating lease liabilities, non-current	9,346
Total operating lease liabilities	$	10,794

Inventory

3 Months Ended

Mar. 31, 2023

Inventory [Line Items]

Inventory Disclosure [Text Block]

Inventory

The components of inventory consist of the following (in thousands):


	March 31, 2023		December 31, 2022

Raw materials	$	10,909	$	7,410
Work in process	5,890		11,367
Finished goods	12,240		5,958
Inventory	$	29,039	$	24,735

Inventory reserves were $0.6 million and $1.3 million at March 31, 2023 and December 31, 2022, respectively.

Net loss per common share (Tables)

3 Months Ended

Mar. 31, 2023

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following potentially dilutive securities were excluded from the computation of diluted weighted average common shares outstanding due to their anti-dilutive effect:


	As of March 31,
	2023	2022
Shares to be issued upon conversion of Convertible Notes	15,416,667	15,416,667
Vested and unvested stock options	9,567,754	10,456,601
Restricted stock units	10,561,349	5,302,517
Warrants	8,362,270	12,808,695
Total anti-dilutive securities excluded from EPS computation 1	43,908,040	43,984,480

1 Total anti-dilutive securities exclude CVRs which are settleable in cash, additional Xeris Biopharma shares, or a combination, at the election of the Company.

Basis of presentation and summary of significant accounting policies and estimates	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of presentation and summary of significant accounting policies and estimates	Basis of presentation and summary of significant accounting policies and estimates Basis of presentation The condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), including those for interim financial information, and with the instructions for Quarterly Reports on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission (the "SEC"). In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the periods presented. The results of operations for such periods are not necessarily indicative of the results that may be expected for any future period. The accompanying financial statements should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2022 included in the Company's Annual Report on Form 10-K filed with the SEC on March 8, 2023. Certain information and disclosures normally included in the annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, have been condensed or omitted. Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification ("ASC") and Accounting Standards Update ("ASU") issued by the Financial Accounting Standards Board ("FASB"). Basis of consolidation These condensed consolidated financial statements include the financial statements of Xeris Biopharma Holdings, Inc. and subsidiaries. All intercompany transactions have been eliminated. Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses included in the financial statements and accompanying notes. Actual results could differ from those estimates. Revenue recognition The Company applies the guidance in ASC 606, Revenue Recognition, to all contracts with customers within the scope of the standard. The Company sells product primarily to wholesalers or a specialty pharmacy that subsequently resell to retail pharmacies or patients. The Company enters into arrangements with payors, group purchasing organizations, and healthcare providers that provide for government-mandated or privately-negotiated rebates, chargebacks and discounts related to the Company’s products. The Company currently sells Gvoke, Keveyis and Recorlev in the United States only. Revenue is recognized when the Company's customer (e.g., a wholesaler or specialty pharmacy) obtains control of promised goods or services, which is when the Company's obligations under the terms of the contract with the customer are satisfied, based on the consideration the Company expects to receive in exchange for those goods or services. Revenues are recorded at the net product sales price, which includes estimated allowances for patient copay assistance programs, prompt payment discounts, payor rebates, chargebacks, service fees, and product returns, all of which are recorded at the time of sale to the pharmaceutical wholesaler or specialty pharmacy. The Company applies significant judgments and estimates in determining some of these allowances. If actual results differ from its estimates, adjustments are made to these allowances in the period in which the actual results or updates to estimates become known. Such revenue is reported as product revenue, net in the condensed consolidated statements of operations and comprehensive loss. Additionally, the Company earns revenue from research collaborations for the use of Xeris’ proprietary formulation technology platforms and royalties from branded products. Such revenue is recognized as earned in accordance with contract terms when it can be reasonably estimated and collectability is reasonably assured. This revenue is reported as royalty, contract and other revenue in the condensed consolidated statements of operations and comprehensive loss. Concentration of credit risk For the three months ended March 31, 2023 and 2022, four customers accounted for 96% and 93% of the Company’s gross product revenue, respectively. At March 31, 2023 and December 31, 2022, the same four customers accounted for 98% and 99% of the trade accounts receivable, net, respectively. New accounting pronouncements Adopted accounting standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard requires entities to estimate an expected lifetime credit loss on financial assets ranging from short-term trade accounts receivable to long-term financings and report credit losses using an expected losses model rather than the incurred losses model that was previously used and establishes additional disclosures related to credit risks. For available-for-sale debt securities with unrealized losses, the standard requires allowances to be recorded instead of reducing the amortized cost of the investment. This standard limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and requires the reversal of previously recognized credit losses if the fair value increases. This standard would have been effective for the Company for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The effective date of ASC Topic 326 was then delayed until fiscal years beginning after December 15, 2022 for SEC filers that are eligible to be smaller reporting companies under the SEC’s definition, as well as private companies and not-for-profit entities. The Company adopted this standard beginning on January 1, 2023, and it did not have a material impact on the financial statements. Pending accounting standards In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This standard eliminates certain accounting models to simplify the accounting for convertible instruments, expands the disclosure requirements related to the terms and features of convertible instruments, and amends the guidance for the derivatives scope exception for contracts settled in an entity’s own equity. This standard enhances the consistency of earnings-per-share ("EPS") calculations by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in diluted EPS calculations and disclosures. This standard is effective for the Company for fiscal years beginning after December 15, 2023. Early adoption is permitted but not earlier than periods beginning after December 15, 2020. The Company is currently evaluating the impact the adoption of this new standard will have on the financial statements and disclosures. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This standard provides optional expedients for the application of GAAP, if certain criteria are met, to contracts and other transactions that reference London Inter-bank Offered Rate ("LIBOR") or other reference rates that are expected to be discontinued because of reference rate reform. This standard is effective for all entities as of March 12, 2020 through December 31, 2022. On December 21, 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022 to December 31, 2024. The Company is currently evaluating the impact the adoption of this standard will have on the financial statements and disclosures.

Short-term investments (Tables)

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Debt Securities, Available-for-sale

The following table represents the Company’s short-term investments by major security type as of March 31, 2023 (in thousands):


	March 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Total Fair Value

Investments:
U.S. government securities	$	44,124	$	5	$	(11)	$	44,118


Total available-for-sale investments	$	44,124	$	5	$	(11)	$	44,118

Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 12,375	$ 11,050
Less: accumulated depreciation and amortization	(5,898)	(5,534)
Property and equipment, net	6,477	5,516
Lab equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,967	3,841
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,742	1,355
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	707	474
Office equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	64	8
Software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	353	307
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 5,542	$ 5,065

Net loss per common share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	43,908,040	43,984,480
Shares to be issued upon conversion of Convertible Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	15,416,667	15,416,667
Vested and unvested stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	9,567,754	10,456,601
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	10,561,349	5,302,517
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	8,362,270	12,808,695

Stock Compensation Plan (Notes)

3 Months Ended

Mar. 31, 2023

Share-based Payment Arrangement [Abstract]

Stock Compensation Plan

Stock compensation plan

In 2011, the Company adopted the 2011 Stock Option Issuance Plan (the "2011 Plan") and subsequently amended it to authorize the Board of Directors to issue up to 4,714,982 incentive stock option and non-qualified stock option awards.

The 2018 Stock Option and Incentive Plan (the "2018 Plan") was adopted by the Board of Directors in April 2018 and approved by the Company's stockholders in June 2018 to award up to 1,822,000 shares of common stock. The 2018 Plan replaced the 2011 Plan as the Board of Directors decided not to make additional awards under the 2011 Plan following the closing of the IPO, which occurred in June 2018. The 2018 Plan allows the compensation committee to make equity-based and cash-based incentive awards to the Company's officers, employees, directors and other key persons (including consultants). No grants of stock options or other awards may be made under the 2018 Plan after the tenth anniversary of the effective date.

As of March 31, 2023, there were 3,851,526 shares of common stock available for future issuance under the 2018 Plan.

The 2018 Employee Stock Purchase Plan (the "ESPP") was adopted by the Board of Directors in April 2018 and approved by the Company's stockholders in June 2018 to issue up to 193,000 shares of common stock to participating employees. Through the ESPP, eligible employees may authorize payroll deductions of up to 15% of their compensation to purchase up to the number of shares of common stock determined by dividing $25,000 by the closing market price of Xeris common stock on the offering date. The purchase price per share at each purchase date is equal to 85% of the lower of (i) the closing market price per share of Xeris common stock on the employee’s offering date or (ii) the closing market price per share of Xeris common stock on the purchase date. Each offering period has a six-month duration and purchase interval with a purchase date of the last business day of June and December each year. As of March 31, 2023, there were 577,860 shares available for issuance under the ESPP.

The Equity Inducement Plan (the "Inducement Plan") was adopted by the Board of Directors in February 2019. The Inducement Plan allows the Company to make stock option or restricted stock unit awards to prospective employees of the Company as an inducement to such individuals to commence employment with the Company. The Company uses this Inducement Plan to help it attract and retain

prospective employees who are necessary to support the commercialization of products and the expansion of the Company generally. As of March 31, 2023, there were 347,079 shares of common stock available for future issuance under the Inducement Plan.

Assumed Plans

On the acquisition date of Strongbridge, the Company assumed all then-outstanding stock options and shares available and reserved for issuance under some legacy equity incentive plans of Strongbridge, including the Strongbridge 2015 equity compensation plan and Strongbridge 2017 inducement plan (collectively, the "Assumed Plans"). Shares reserved under the Assumed Plans will be available for future grants. The Company also assumed all then-outstanding stock options from the rest of the legacy equity incentive plans of Strongbridge without assuming the shares available and reserved for issuance under these plans. The number of shares subject to stock options outstanding under all Strongbridge legacy equity incentive plans are included in the tables below. As of March 31, 2023, there were 2,425,706 shares reserved for future grants under the Assumed Plans.

Stock options

Stock options are granted with an exercise price equal to the market price of the Company’s stock at the date of grant. Stock option awards typically vest over either two, three or four years after the grant date and expire seven to ten years from the grant date.

The fair value of each option is estimated on the date of grant using a Black-Scholes option valuation model that uses the assumptions noted in the following table. The expected term of options represents the period of time that options granted are expected to be outstanding. The risk-free interest rate for periods during the contractual life of the option is based on the United States Treasury yield curve in effect at the time of grant. The expected stock price volatility assumption is based on the historical volatilities of a peer group of publicly traded companies as well as the historical volatility of the Company's common stock since the Company began trading subsequent to the IPO in June 2018 over the period corresponding to the expected life as of the grant date. The expected dividend yield is based on the expected annual dividend as a percentage of the market value of the Company’s ordinary shares as of the grant date.

There were no stock options granted during the first quarter of 2023.

Stock option activity under the 2011 Plan, 2018 Plan, Inducement Plan and Assumed Plans for the three months ended March 31, 2023 was as follows:


	Number of Options	Weighted Average Exercise Price Per Share		Weighted Average Contractual Life (Years)
Outstanding - December 31, 2022	9,700,161	$	5.37	4.76
Granted	—	—


Exercised	—	—
Forfeited	(2,041)	5.95
Expired	(130,366)	12.42
Outstanding - March 31, 2023	9,567,754	$	5.27	4.57
Vested and expected to vest at March 31, 2023	9,567,754	$	5.27	4.57
Exercisable - March 31, 2023	8,978,290	$	5.34	4.34

At March 31, 2023, there was a total of $1.3 million of unrecognized stock-based compensation expense related to stock options that is expected to be recognized over a weighted average period of 1.2 years.

Restricted Stock Units

The Company grants Restricted Stock Units ("RSUs") to employees. RSUs that are granted vest over either three or four years in equal annual installments beginning on the one-year anniversary of the date of grant, provided that the employee is employed by the Company on such vesting date. If and when the RSUs vest, the Company will issue one share of common stock for each whole RSU that has vested, subject to satisfaction of the employee’s tax withholding obligations. Upon vesting and settlement of RSUs or exercise of stock options, at the election of the grantee, the Company does not collect withholding taxes in cash from employees. Instead, the Company withholds upon settlement as RSUs vest, or as stock options are exercised, the portion of those shares with a fair market value equal to the amount of the minimum statutory withholding taxes due. The withheld shares are accounted for as repurchases of common stock. Stock-based compensation expense related to RSUs is recognized on a straight-line basis over the employee’s requisite service period.

A summary of outstanding RSU awards and the activity for the three months ended March 31, 2023 was as follows:


	Number of Units	Weighted Average Grant Date Fair Value Per Share
Unvested balance - December 31, 2022	5,255,560	$	3.25
Granted	7,133,900	1.24
Vested	(1,761,864)	3.81
Forfeited	(66,247)	2.17
Unvested balance - March 31, 2023	10,561,349	$	1.80

As of March 31, 2023, there was $16.9 million of unrecognized stock-based compensation expense related to RSUs, which is expected to be recognized over the weighted-average remaining vesting period of 2.5 years.

The following table summarizes the reporting of total stock-based compensation expense resulting from stock options, RSUs and the ESPP (in thousands):


	Three Months Ended March 31,
		2023		2022

Research and development		$	322	$	547
Selling, general and administrative		2,242		2,754
Total stock-based compensation expense		$	2,564	$	3,301

Stock Compensation Plan Employee Stock Award Activity (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	9,567,754	9,700,161
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 5.27	$ 5.37
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	4 years 6 months 25 days	4 years 9 months 3 days
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares	(2,041)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price	$ 5.95
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	(130,366)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price	$ 12.42
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	8,978,290
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 5.34
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	9,567,754
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price	$ 5.27
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	4 years 4 months 2 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term	4 years 6 months 25 days

Long-Term Debt - Components of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Jul. 07, 2020
Debt Instrument [Line Items]
Unamortized Debt Issuance Expense	$ (4,298)	$ (4,587)
Long-term debt, net of unamortized debt issuance costs	187,623	187,075
Senior Loans
Debt Instrument [Line Items]
Debt Instrument, Face Amount	47,175	47,175
Convertible Notes
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 144,746	$ 144,487	$ 86,300

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details