0001558370-24-015433 | 10-Q | XBRL Viewer

Stock-Based Compensation

9 Months Ended

Sep. 30, 2024

9. Stock-Based Compensation

2020 Long-Term Incentive Plan

Our 2020 Long-Term Incentive Plan (the “2020 Plan”) provides for the granting of stock appreciation rights, stock awards, stock units, and other stock-based awards and for accelerated vesting under certain change of control transactions. The number of shares of our common stock available for issuance under the 2020 plan will automatically increase on January 1 of each year through 2030, by an amount equal to the smaller of (a) 4% of the number of shares of common stock issued and outstanding on the immediately preceding December 31, or (b) an amount determined by the Board of Directors (the “Evergreen Provision”). On January 1, 2024, the number of shares of common stock

available for issuance under the 2020 Plan automatically increased by 2,745,183 shares pursuant to the Evergreen Provision. As of September 30, 2024, there were 900,518 shares available for future grants under the 2020 Plan.

The 2020 Plan replaced all prior equity award plans and such plans have been discontinued. However, the awards outstanding under the prior equity award plans will continue to remain in effect in accordance with their terms. Awards that are forfeited under these prior plans upon cancellation, termination or expiration will not be available for grant under the 2020 Plan. As of September 30, 2024, a total of 473,076 shares of common stock were reserved for issuance related to the remaining outstanding equity awards granted under the prior plans.

2022 Inducement Plan

On January 25, 2022, the Board of Directors approved the adoption of our 2022 Inducement Plan (the “2022 Inducement Plan”). The 2022 Inducement Plan was recommended for approval by the Compensation Committee of the Board (the “Compensation Committee”), and subsequently approved and adopted by the Board of Directors without stockholder approval pursuant to Rule 5635(c)(4) of the rules and regulations of The Nasdaq Stock Market, LLC (the “Nasdaq Listing Rules”).

310,000 shares of our common stock were reserved for issuance pursuant to equity awards that may be granted under the 2022 Inducement Plan, and the 2022 Inducement Plan will be administered by the Compensation Committee. In accordance with Rule 5635(c)(4) of the Nasdaq Listing Rules, equity awards under the 2022 Inducement Plan may only be made to an employee who has not previously been an employee or member of the Board of Directors, or following a bona fide period of non-employment by us, if he or she is granted such equity awards in connection with his or her commencement of employment with us and such grant is an inducement material to his or her entering into employment with us. As of September 30, 2024, a total of 27,608 shares were available for issuance under the 2022 Inducement Plan.

Employee Stock Purchase Plan

In November 2020, stockholders approved the Liquidia Corporation 2020 Employee Stock Purchase Plan (the “ESPP”). The number of shares of our common stock available for issuance under the ESPP will automatically increase on January 1 of each year through 2030, by the lesser of (a) 1.0% of the number of shares of common stock issued and outstanding on the immediately preceding December 31, (b) 150,000 shares, or (c) an amount determined by the Board of Directors. On January 1, 2024, the number of shares of common stock available for issuance under the ESPP increased by 150,000 shares. As of September 30, 2024, a total of 534,742 shares of common stock are reserved for issuance under the ESPP. The ESPP allows eligible employees to purchase shares of our common stock at a discount through payroll deductions, subject to plan limitations. Unless otherwise determined by the administrator, the common stock will be purchased for the accounts of employees participating in the ESPP at a price per share that is 85% of the lesser of the fair market value of our common stock on the first and last trading day of the offering period. During the nine months ended September 30, 2024 and 2023, 172,395 and 140,922 shares were issued under the ESPP, respectively.

Stock-Based Compensation Valuation and Expense

We account for employee stock-based compensation plans using the fair value method. The fair value method requires us to estimate the grant-date fair value of stock-based awards and amortize this fair value to compensation expense over the requisite service period or vesting term. The fair value of each option grant is estimated using a Black-Scholes option-pricing model.

For restricted stock units (“RSUs”), the grant-date fair value is based upon the market price of our common stock on the date of the grant. This fair value is then amortized to compensation expense over the requisite service period or vesting term.

Total stock-based compensation expense recognized for employees and non-employees was as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
By Expense Category:	2024		2023		2024		2023
Cost of revenue	$	45	$	—	$	166	$	—
Research and development		839		555		2,676		1,714
General and administrative		3,997		1,932		10,935		5,824
Total stock-based compensation expense	$	4,881	$	2,487	$	13,777	$	7,538

The following table summarizes the unamortized compensation expense and the remaining years over which such expense would be expected to be recognized, on a weighted average basis, by type of award:


	As of September 30, 2024
			Weighted
			Average
			Remaining
			Recognition
	Unamortized		Period
	Expense		(Years)
Stock options	$	9,789	1.6
Restricted and performance stock units	$	26,124	2.5

Fair Value of Stock Options Granted and Purchase Rights Issued under the ESPP

We use the Black-Scholes option-pricing model to determine the fair value of stock options granted and purchase rights issued under the ESPP.

The following table summarizes the assumptions used for estimating the fair value of stock options granted under the Black-Scholes option-pricing model:


	Nine Months Ended
	September 30,
	2024	2023
Expected dividend yield	—	—
Risk-free interest rate	3.98%	3.46% - 4.62%
Expected volatility	90%	91% - 95%
Expected life (years)	6.1	5.8 - 6.1

The weighted average fair value for options granted during the nine months ended September 30, 2024 and 2023 was $9.84 and $5.09 per share, respectively.

The following table summarizes the assumptions used for estimating the fair value of purchase rights granted to employees under the ESPP under the Black-Scholes option-pricing model:


	Nine Months Ended
	September 30,
	2024	2023
Expected dividend yield	—	—
Risk-free interest rate	4.80% - 5.27%	5.20% - 5.47%
Expected volatility	62% - 72%	60% - 64%
Expected life (years)	0.50	0.50

Stock Option Activity

Options generally vest over a four-year period in multiple tranches.

The following table summarizes stock option activity during the nine months ended September 30, 2024:


				Weighted
		Weighted		Average
		Average		Contractual	Aggregate
	Number of	Exercise		Term	Intrinsic
	Shares	Price		(in years)	Value
Outstanding as of December 31, 2023	9,573,937	$	4.80
Granted	7,500		12.86
Exercised	(351,653)		4.78
Cancelled	(179,926)		7.24
Outstanding as of September 30, 2024	9,049,858	$	4.76	7.1	$	47,835
Exercisable as of September 30, 2024	6,649,860	$	4.48	6.8	$	37,106
Vested and expected to vest as of September 30, 2024	8,772,869	$	4.73	7.1	$	46,661

The aggregate intrinsic value of stock options in the table above represents the difference between the $10.00 closing price of our common stock as of September 30, 2024 and the exercise price of outstanding, exercisable, and vested and expected to vest in-the-money stock options.

Restricted Stock Units

Restricted stock units (“RSUs”) represent the right to receive shares of our common stock at the end of a specified time period and/or upon the achievement of a specific milestone. RSUs can only be settled in shares of our common stock. RSUs generally vest over a four-year period similar to stock options granted to employees.

The tax withholding method used for most RSUs is the sell-to-cover method, in which shares with a market value equivalent to the tax withholding obligation are sold on behalf of the holder of the RSUs upon vesting and settlement to cover the tax withholding liability and the cash proceeds from such sales are remitted to taxing authorities by us. In circumstances where the sell-to-cover method is not used, the holder of the RSUs is required to remit cash to us to cover the tax withholding liability and the cash is then remitted to taxing authorities by us.

A summary of unvested RSU awards outstanding as of September 30, 2024 and changes during the nine months ended September 30, 2024 are as follows:


		Weighted
		Average
		Grant-Date
	Number of	Fair Value
	RSUs	(per RSU)
Unvested as of December 31, 2023	1,657,978	$	6.41
Granted	2,146,517		12.57
Vested	(615,827)		6.48
Forfeited	(94,047)		7.52
Unvested as of September 30, 2024	3,094,621	$	10.64

RSUs granted during the nine months ended September 30, 2024, included 520,526 performance-based RSUs granted to our executive officers. These performance-based RSUs vest upon the later of (a) time-based vesting conditions and (b) the first commercial sale of YUTREPIA in the United States and are considered probable of vesting. The time-based vesting condition means 25% of the performance-based RSUs vest one year after grant date and quarterly thereafter for three years, subject to the executive’s continued service.

Basis of Presentation, Significant Accounting Policies and Fair Value Measurements (Policies)

9 Months Ended

Sep. 30, 2024

Basis of Presentation, Significant Accounting Policies and Fair Value Measurements

Basis of Presentation

The unaudited interim condensed consolidated financial statements as of September 30, 2024 and for the three and nine months ended September 30, 2024 and 2023 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These condensed consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments and accruals) necessary for a fair statement of the results for the periods presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The year-end condensed consolidated balance sheet data was derived from our audited consolidated financial statements but does not include all disclosures required by GAAP. Operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with GAAP have been omitted in accordance with the SEC’s rules and regulations for interim reporting. Certain amounts have been reclassified from the prior year presentation to conform to current presentation, specifically in relation to the balance sheet presentation of finance and operating leases. Our financial position, results of operations and cash flows are presented in U.S. Dollars.

The accompanying unaudited condensed consolidated financial statements and related notes should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2023, which are included in our 2023 Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Annual Report on Form 10-K”).

Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the period. These estimates are based on historical experience and various other assumptions believed to be reasonable under the circumstances. We evaluate our estimates on an ongoing basis, including those related to the valuation of stock-based awards, certain accruals, the revenue interest financing payable, and intangible and contract acquisition cost amortization, and make changes to the estimates and related disclosures as our experience develops or new information becomes known. Actual results will most likely differ from those estimates.

Segment Information

GAAP requires segmentation based on an entity’s internal organization and reporting of revenue and operating income based upon internal accounting methods commonly referred to as the “management approach.” Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (CODM), or decision-making group, in deciding how to allocate resources and in assessing performance. Our CODM is our Chief Executive Officer. We have determined that we have one operating and reporting segment.

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board under its accounting standards codifications (ASC) or other standard setting bodies and are adopted by us as of the specified effective date. For the nine months ended September 30, 2024, there were no newly adopted accounting pronouncements that had a material impact on our condensed consolidated financial statements. As of September 30, 2024, there are no recently issued but not yet adopted accounting pronouncements that are expected to materially impact our condensed consolidated financial statements.

Cash, Cash Equivalents, and Concentration of Credit Risk

We consider all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents.

Financial instruments that potentially subject us to concentrations of credit risk consist of cash and cash equivalents. We are exposed to credit risk, subject to federal deposit insurance, in the event of default by the financial institutions holding our cash and cash equivalents to the extent of amounts recorded on the condensed consolidated balance sheet. Our cash and cash equivalents are held at multiple accredited financial institutions. We have not experienced any losses on such accounts and do not believe that we are subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. Such deposits have exceeded and will continue to exceed federally insured limits.

Accounts Receivable

Accounts receivable are stated at net realizable value and net of an allowance for credit losses as of each balance sheet date, if applicable. One customer accounted for 96% and 99% of our accounts receivable, net at September 30, 2024 and December 31, 2023, respectively. As of September 30, 2024 and December 31, 2023, we have not recorded an allowance for credit losses.

Prelaunch Inventory

We capitalize prelaunch inventory prior to receiving regulatory approval if regulatory approval and subsequent commercialization of a product is probable and we also expect future economic benefit from the sales of the product to be realized. Prior to this conclusion, we expense prelaunch inventory as research and development expense in the period incurred. For prelaunch inventory that is capitalized, we consider a number of specific facts and circumstances, including the product’s shelf life, the product's current status in the development and regulatory approval process, results from related clinical trials, results from meetings with relevant regulatory agencies prior to the filing of regulatory applications, potential obstacles to the approval process, viability of commercialization and market trends. In late 2023, based on our assessment of the legal and regulatory process related to YUTREPIA, we concluded that we met the criteria to capitalize expenditures for prelaunch inventory. We capitalized $7.4 million of prelaunch inventory as of September 30, 2024 and none as of December 31, 2023. If either regulatory approval or market acceptance post-approval of YUTREPIA do not occur at all or on a timely basis prior to the inventory shelf-life expiration, we may be required to write-off some or all prelaunch inventory, which could affect our financial condition and financial results.

Long-Lived Assets

We review long-lived assets, including definite-life intangible assets, for realizability on an ongoing basis. Changes in depreciation and amortization, generally accelerated depreciation and variable amortization, are determined and recorded when estimates of the remaining useful lives or residual values of long-term assets change. We also review

for impairment when conditions exist that indicate the carrying amount of the assets may not be fully recoverable. In those circumstances, we perform undiscounted operating cash flow analyses to determine if an impairment exists. When testing for asset impairment, we group assets and liabilities at the lowest level for which cash flows are separately identifiable. Any impairment loss is calculated as the excess of the asset’s carrying value over its estimated fair value. Fair value is estimated based on the discounted cash flows for the asset group over the remaining useful life or based on the expected cash proceeds for the asset less costs of disposal. Any impairment losses would be recorded in the consolidated statements of operations. To date, no such impairments have occurred.

Goodwill

We assess goodwill for impairment at least annually as of July 1 or whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. For example, significant and unanticipated changes or our inability to obtain or maintain regulatory approvals for our product candidates, including the NDA for YUTREPIA, could trigger testing of our goodwill for impairment at an interim date. We have one reporting unit. We have the option to first assess qualitative factors to determine whether events or circumstances indicate it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, in which case a quantitative impairment test is not required.

Per ASC 350, Intangibles Goodwill and Other, the quantitative goodwill impairment test is performed by comparing the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not impaired. An impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the fair value up to the amount of goodwill allocated to the reporting unit. Income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit are considered when measuring the goodwill impairment loss, if applicable.

As of September 30, 2024, we concluded there were no events or changes in circumstances which indicated that the carrying amount of goodwill was not recoverable. We completed our annual impairment test as of July 1, 2024 and concluded that no impairments had occurred.

Revenue Interest Financing Payable

We recognized a liability related to amounts received in January 2023, July 2023, and January 2024 pursuant to the RIFA under ASC 470-10, Debt and ASC 835-30, Interest - Imputation of Interest. The liability will be accreted under the effective interest method based upon the estimated amount of future payments to be made pursuant to the RIFA. If the timing or amounts of any estimated future payments change, we will prospectively adjust the effective interest and the related amortization of the liability and related issuance costs. A significant increase or decrease in these estimates could materially impact the liability balance and related interest expense. Amendments are assessed under ASC 470 to determine appropriate treatment as troubled debt restructurings, extinguishments or modifications.

Revenue Recognition

We recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). The core principle of ASC 606 is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle:

●

Step 1: Identify the contract with the customer

●

Step 2: Identify the performance obligations in the contract

●

Step 3: Determine the transaction price

●

Step 4: Allocate the transaction price to the performance obligations in the contract

●

Step 5: Recognize revenue when the company satisfies a performance obligation

In order to identify the performance obligations in a contract with a customer, we assess the promised goods or services in the contract and identify each promised good or service that is distinct.

If a good or service is not distinct, the good or service is combined with other promised goods or services until a bundle of goods or services is identified that is distinct.

The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both.

Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. We evaluate any non-cash consideration, consideration payable to the customer, potential returns and refunds, and whether consideration contains a significant financing element in determining the transaction price.

Revenue is measured based on consideration specified in a contract with a customer. We recognize revenue when it satisfies a performance obligation by transferring control over a service to a customer. The amount of revenue recognized reflects estimates for refunds and returns, which are presented as a reduction of accounts receivable where the right of setoff exists.

Research and Development Expense

Research and development costs are expensed as incurred in accordance with ASC 730, Research and Development and include facility-related costs related to research and development activities, direct costs from third parties, such as contract research organizations (“CROs”), contract manufacturing organizations (CMOs”), and consultants, as well as employee-related expenses, including salaries, benefits, and stock-based compensation. Research and development expenses also include costs of acquired product licenses and related technology rights where there is no alternative future use.

Accrued Research and Development Expenses

As part of the process of preparing the condensed consolidated financial statements, we are required to estimate accrued expenses. This process involves reviewing quotations and contracts, identifying services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of the actual cost. The majority of our service providers invoice us monthly in arrears for services performed or when contractual milestones are met. We make estimates of our accrued expenses as of each balance sheet date in our condensed consolidated financial statements based on facts and circumstances known to us at that time. We periodically confirm the accuracy of these estimates with the service providers and make adjustments if necessary.

The significant estimates in our accrued research and development expenses are related to expenses incurred with respect to CROs, CMOs and other vendors in connection with research and development and manufacturing activities. The financial terms of our agreements with CROs and CMOs are subject to negotiation, vary from contract to contract and may result in uneven payment flows. There may be instances in which payments made to our vendors will exceed the level of services provided and result in a prepayment of the applicable research and development or manufacturing expense. In accruing service fees, we estimate the time period over which services will be performed and the level of effort to be expended in each period. If the actual timing of the performance of services or the level of effort varies from such estimate, we adjust the accrual or prepaid expense accordingly. Although we do not expect our estimates to be materially different from amounts actually incurred, our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and could result in us reporting amounts that are too high or too low in any particular period. There have been no material changes in estimates for the periods presented.

Stock-Based Compensation

We estimate the grant date fair value of stock-based awards and amortize this fair value to compensation expense over the requisite service period or the vesting period of the respective award. In arriving at stock-based compensation expense, we estimate the number of stock-based awards that will be forfeited due to employee turnover. The forfeiture assumption is based primarily on turn-over historical experience. If the actual forfeiture rate is higher than the estimated forfeiture rate, then an adjustment will be made to increase the estimated forfeiture rate, which will result in a decrease to the expense recognized in our financial statements. If the actual forfeiture rate is lower than the estimated forfeiture rate, then an adjustment will be made to lower the estimated forfeiture rate, which will result in an increase to expense recognized in our financial statements. The expense we recognize in future periods will be affected by changes in the estimated forfeiture rate and may differ from amounts recognized in the current period. See Note 9.

Net Loss Per Share

Basic net loss per share is calculated by dividing net loss attributable to common stockholders by the weighted average shares outstanding during the period, without consideration of common stock equivalents.

Diluted net loss per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock method. Due to their anti-dilutive effect, the calculation of diluted net loss per share excludes the following common stock equivalent shares:


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2024	2023	2024	2023
Stock Options	9,113,427	9,573,680	9,372,790	9,494,833
Restricted Stock Units	3,131,834	1,704,353	3,062,498	1,689,998
Warrants	450,000	450,000	450,000	450,000
Total	12,695,261	11,728,033	12,885,288	11,634,831

Certain common stock warrants are included in the calculation of basic and diluted net loss per share since their exercise price is de minimis.

Fair Value Measurements

ASC 825, Financial Instruments defines fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (an exit price). As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. ASC 825 establishes a three-tiered approach for valuation of financial instruments, which requires that fair value measurements be classified and disclosed in one of three tiers, whether or not recognized on our condensed consolidated balance sheets at fair value. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows:

Level 1 — Quoted prices in active markets for identical assets or liabilities;

Level 2 — Inputs other than quoted prices included in active markets that are observable for the asset or liability, either directly or indirectly; and

Level 3 — Unobservable inputs for the asset and liability used to measure fair value, to the extent that observable inputs are not available.

The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following table presents the placement in the fair value hierarchy of financial assets and liabilities measured at fair value as of September 30, 2024 and December 31, 2023:

Quoted

Significant

Prices in

Other

Significant

Active

Observable

Unobservable

Markets

Inputs

Carrying

September 30, 2024

(Level 1)

(Level 2)

(Level 3)

Value

Money market funds (cash equivalents)

198,565

—

198,565

Quoted

Significant

Prices in

Other

Significant

Active

Observable

Unobservable

Markets

Inputs

Carrying

December 31, 2023

(Level 1)

(Level 2)

(Level 3)

Value

Money market funds (cash equivalents)

79,912

—

79,912

Money market funds are included in cash and cash equivalents on our condensed consolidated balance sheet and are classified within Level 1 of the fair value hierarchy since they are valued using quoted market prices.

The carrying amounts reflected in our condensed consolidated balance sheets for cash, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses and other current liabilities approximate their fair values due to their short-term nature. The carrying value of the revenue interest financing payable approximate fair value as the respective interest rates are reflective of current market rates on debt with similar terms and conditions. In addition, the revenue interest financing payable is updated with the expected amount to be paid back each reporting period based on the contractual terms and current projections.

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Mar. 31, 2024	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Operating activities
Net loss			$ (92,025)	$ (51,052)
Adjustments to reconcile net loss to net cash used in operating activities:
Acquired in-process research and development				10,000
Stock-based compensation			13,777	7,538
Depreciation and amortization			1,679	1,672
Non-cash lease expense			361	289
Loss (gain) on disposal of property and equipment			3	(2)
Loss on extinguishment of debt	$ (7,215)	$ 11,500	4,268	2,311	$ 2,300
Accretion and non-cash interest expense			8,114	4,133
Changes in operating assets and liabilities:
Accounts receivable, net			(141)	1,679
Inventory			(38)
Prepaid expenses and other current assets			(3,445)	(2,056)
Other noncurrent assets			(7,471)	20
Accounts payable			(222)	(556)
Accrued expenses and other current liabilities			3,291	1,102
Operating lease liabilities			(760)	(660)
Net cash used in operating activities			(72,609)	(25,582)
Investing activities
Purchase of in-process research and development				(10,000)
Purchases of property, plant and equipment			(3,661)	(1,084)
Proceeds from the sale of property, plant and equipment			0	2
Net cash used in investing activities			(3,661)	(11,082)
Financing activities
Proceeds from revenue interest financing, net			57,460	41,744
Principal payments on long-term debt				(20,000)
Payments for debt prepayment and extinguishment costs				(2,190)
Payments on revenue interest financing liability			(2,731)	(1,000)
Principal payments on finance leases			(80)	(155)
Receipts from litigation financing			489	109
Proceeds from sale of common stock, net of issuance costs			138,893
Proceeds from issuance of common stock under stock incentive plans			2,928	1,098
Net cash provided by financing activities			196,959	19,606
Net increase (decrease) in cash and cash equivalents			120,689	(17,058)
Cash and cash equivalents, beginning of period		$ 83,679	83,679	93,283	93,283
Cash and cash equivalents, end of period	$ 204,368		204,368	76,225	$ 83,679
Supplemental disclosure of cash flow information
Cash paid for interest			0	360
Cash paid for operating lease liabilities			985	956
Offering costs incurred, but not paid included in accrued expenses			348
Right of use assets obtained through lease liabilities			28
Non-cash increase in property, plant and equipment through accounts payable			625
Non-cash increase in indemnification asset through accounts payable			$ 499	$ 111

Business - Liquidity (Details) - USD ($) $ in Thousands			1 Months Ended	3 Months Ended						8 Months Ended	9 Months Ended
Business - Liquidity (Details) - USD ($) $ in Thousands	Sep. 12, 2024	Jan. 04, 2024	Sep. 30, 2024	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 11, 2024	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Business
Net loss				$ 23,155	$ 27,942	$ 40,928	$ 15,790	$ 23,517	$ 11,745		$ 92,025	$ 51,052
Accumulated deficit			$ 521,123	521,123							521,123		$ 429,098
Amount funded under the second tranche		$ 24,975								$ 32,485
Net proceeds from issuance of common stock in public offering	$ 53,700
Net proceeds from issuance of common stock in private offering	10,000
Revenue Interest Financing Agreement
Business
Total funding			100,000
Revenue Interest Financing Agreement \| HCR \| For Calendar Year Beginning on January 1, 2024
Business
Cash covenants, minimum cash and cash equivalents to be maintained			7,500	7,500							7,500
Revenue Interest Financing Agreement \| HCR \| After Calendar Year Ending on December 31 , 2024
Business
Cash covenants, minimum cash and cash equivalents to be maintained			15,000	$ 15,000							$ 15,000
Fifth Amendment to Revenue Interest Financing Agreement
Business
Amount funded under the second tranche	$ 32,500		$ 32,500

Revenue Interest Financing Payable

9 Months Ended

Sep. 30, 2024

Revenue Interest Financing Payable

Revenue Interest Financing Payable

12. Revenue Interest Financing Payable

On January 9, 2023, we entered into the RIFA with HCR and HealthCare Royalty Management, LLC, pursuant to which and subject to the terms and conditions contained therein, HCR agreed to pay us an aggregate investment amount of up to $100.0 million (the “Investment Amount”) in four tranches.

On January 27, 2023, $32.5 million of the Investment Amount was funded from the first tranche, $22.2 million of which was used to satisfy existing obligations due to Silicon Valley Bank. This repayment resulted in a loss on extinguishment during the year ended December 31, 2023 of $2.3 million.

On June 28, 2023 and July 27, 2023, we entered into the Second Amendment to the RIFA and Third Amendment to the RIFA, respectively, pursuant to which HCR funded $10.0 million from the second tranche on July 27, 2023.

On January 3, 2024, we entered into the Fourth Amendment to the RIFA pursuant to which HCR funded an additional $25.0 million from the second tranche on January 5, 2024.

On September 11, 2024 we entered into the Fifth Amendment to the RIFA pursuant to which HCR funded an additional $32.5 million from the second tranche on September 12, 2024 and eliminated the third and fourth tranches.

As consideration for the Investment Amount and pursuant to the RIFA, we have agreed to pay HCR according to a fixed quarterly payment schedule.

As of September 30, 2024, we were required to pay $13.3 million within one year of the balance sheet date, which is classified as current in our condensed consolidated balance sheet.

Aggregate payments to HCR are capped at 175% of funded portion of the Investment Amount (the “Hard Cap”), plus an amount, if any, that HCR would need to receive to yield an internal rate of return of (i) 18% on the first $67.5 million funded and (ii) 16% on the last $32.5 million funded (the “IRR True-Up Payment”), unless the RIFA is earlier terminated. If a change of control occurs or upon the occurrence of an event of default, HCR may accelerate payments due under the RIFA up to the Hard Cap, plus the IRR True-Up Payment, plus any other obligations payable under the RIFA.

The RIFA contains customary affirmative and negative covenants and customary events of default and other events that would cause acceleration, including, among other things, the occurrence of certain material adverse events or the material breach of certain representations and warranties and specified covenants, in which event HCR may elect to terminate the RIFA and require us to make payments to HCR equal to the lesser of (a) the Hard Cap, plus any other obligations payable under the RIFA, or (b) the funded portion of the Investment Amount, minus payments received by HCR in respect of the Revenue Interests, plus the IRR True-Up Payment. If the FDA grants final approval to an inhaled treprostinil product therapeutically equivalent to YUTREPIA and HCR has not received 100% of the amount funded by HCR to date, then we will be required to make payments to HCR equal to 100% of the amount funded by HCR to date, minus payments received by HCR in respect of the Revenue Interests.

The RIFA contains certain restrictions on our ability, among other things, to incur additional debt, grant or permit additional liens, make investments and acquisitions, dispose of assets, pay dividends and distributions, subject to certain exceptions. In addition, the RIFA contains a financial covenant that requires us to maintain cash and cash equivalents in an amount at least equal to $7.5 million during the calendar year beginning on January 1, 2024 and at least equal to $15.0 million for the remainder of the payment term after the calendar year ended December 31, 2024.

As of the filing date of these condensed consolidated financial statements, we are not aware of any breach of covenants, or the occurrence of any material adverse event, nor have we received any notice of event of default from HCR.

The Fourth Amendment to the RIFA qualifies as a debt extinguishment and issuance of a new debt instrument in accordance with ASC 405-20, Extinguishments of Liabilities. We recorded a loss on extinguishment during the quarter ended March 31, 2024 of $11.5 million, equal to the fair value of the amended RIFA less the carrying value of the existing RIFA on January 5, 2024.

The Fifth Amendment to the RIFA qualifies as a debt extinguishment and issuance of a new debt instrument in accordance with ASC 405-20, Extinguishments of Liabilities. We recorded a gain on extinguishment during the quarter ended September 30, 2024 of $7.2 million, equal to the fair value of the amended RIFA less the carrying value of the existing RIFA on September 12, 2024.

We recorded the total funds received from HCR under the terms of the RIFA as a liability. The issuance costs, consisting primarily of legal fees, totaled $0.9 million and were recorded as a deduction of the carrying amount of the liability and are being amortized under the effective interest method over the estimated period the liability will be repaid. We estimated the total amount of payments over the life of the RIFA to determine the interest expense to record to accrete the liability to the amount ultimately due. For the three and nine months ended September 30, 2024, we estimated an effective annual interest rate of approximately 15.2%. Over the course of the RIFA, the effective annual interest rate may be affected by potential changes in forecasted payments. On a quarterly basis, we will reassess the expected amount and timing of payments, recalculate the amortization and effective interest rate and adjust the accounting prospectively as needed.

The following table presents the changes in the RIFA payable during the nine months ended September 30, 2024:


Balance as of December 31, 2023	$	46,033
Accretion		107
Amortization of issuance costs		2
Second tranche funding, net of fees		24,975
Balance as of January 5, 2024, prior to extinguishment	$	71,117
Loss on extinguishment		11,483
Balance as of January 5, 2024, after extinguishment	$	82,600
Accretion		7,161
Payments		(2,731)
Second tranche funding, net of fees		32,485
Balance as of September 12, 2024, prior to extinguishment	$	119,515
(Gain) on extinguishment		(7,215)
Balance as of September 12, 2024, after extinguishment	$	112,300
Accretion		844
Balance as of September 30, 2024	$	113,144
Less: current portion of revenue interest financing payable		(13,252)
Long-term portion of revenue interest financing payable	$	99,892

The expected annual payments on the revenue interest financing payable as of September 30, 2024 are as follows:


Year ending December 31:
2024 (three months remaining)	$	2,122
2025		18,017
2026		52,724
2027		32,962
2028		32,962
Thereafter		31,828
Total	$	170,615

Stockholders' Equity

9 Months Ended

Sep. 30, 2024

Stockholders' Equity

Stockholders' Equity

8. Stockholders’ Equity

Common Stock

Issuance of Common Stock on September 11, 2024 from an Underwritten Public Offering and Private Placement

In September 2024, we sold 6,460,674 shares of our common stock in an underwritten registered public offering at an offering price of $8.90 per share (the “2024 Offering”) for gross proceeds of approximately $57.5 million, before deducting offering costs of approximately $3.8 million.

A fund affiliated with Paul B. Manning, a member of our Board of Directors, participated in the 2024 Offering and purchased shares of common stock in an aggregate amount of approximately $3.0 million at the public offering price per share and on the same terms as the other purchasers in the 2024 Offering.

Concurrently with the 2024 Offering referenced above, we entered into a common stock purchase agreement with funds managed by Caligan Partners LP (“Caligan”), our largest stockholder, for the sale by us in a private placement of an

aggregate of 1,123,595 shares of our common stock at a purchase price of $8.90 per share for gross and net proceeds of approximately $10.0 million (the “Caligan 2024 Private Placement”).

Issuance of Common Stock on January 4, 2024 from a Private Placement

On January 4, 2024, we entered into a common stock purchase agreement with Legend Aggregator, LP for the sale by us in a private placement (the “2024 Private Placement”) of an aggregate of 7,182,532 shares of our common stock at a purchase price of $10.442 per share. The 2024 Private Placement closed on January 8, 2024, and we received gross proceeds of approximately $75.0 million, before deducting offering costs of less than $0.1 million.

Issuance of Common Stock on December 12, 2023 from an Underwritten Public Offering and Private Placement

In December 2023, we sold 3,491,620 shares of our common stock in an underwritten registered public offering at an offering price of $7.16 per share (the “2023 Offering”) for net proceeds of approximately $25.0 million, before deducting offering costs of approximately $1.9 million.

Caligan and Paul B. Manning, participated in the 2023 Offering and purchased shares of common stock in an aggregate amount of approximately $10.0 million at the public offering price per share and on the same terms as the other purchasers in the 2023 Offering. Caligan purchased 1,117,318 shares of common stock in the 2023 Offering for an aggregate purchase price of $8.0 million and Paul B. Manning purchased 279,330 shares of common stock in the 2023 Offering for an aggregate purchase price of $2.0 million.

Concurrently with the 2023 Offering referenced above, we entered into a common stock purchase agreement with Roger Jeffs, our Chief Executive Officer, for the sale by us in a private placement of an aggregate of 139,665 shares of our common stock at a purchase price of $7.16 per share for gross proceeds of approximately $1.0 million.

Warrants

During the nine months ended September 30, 2024 and 2023, 9,175 and no warrants to purchase shares of common stock were exercised, respectively. Outstanding warrants consisted of the following as of September 30, 2024:


Number of
warrants	Exercise Price		Expiration Date
250,000	$	5.14	January 6, 2032
100,000	$	3.05	February 26, 2031
100,000	$	n/a¹	February 26, 2031
56,397	$	0.02	December 31, 2026

These warrants were issued on February 26, 2021, in connection with our previously outstanding debt with Silicon Valley Bank. These warrants only became exercisable if there was additional funding under the loan agreement, and the exercise price of these warrants was to be set upon such potential additional funding. The additional funding never occurred, and the loan agreement has since been repaid and terminated. While these warrants technically remain outstanding, they are not, and will never be, exercisable.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
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-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
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-Subparagraph (a)
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of stock-based compensation expense recognized for employees and non-employees


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
By Expense Category:	2024		2023		2024		2023
Cost of revenue	$	45	$	—	$	166	$	—
Research and development		839		555		2,676		1,714
General and administrative		3,997		1,932		10,935		5,824
Total stock-based compensation expense	$	4,881	$	2,487	$	13,777	$	7,538

Schedule of unamortized compensation expense and weighted average remaining recognition period


	As of September 30, 2024
			Weighted
			Average
			Remaining
			Recognition
	Unamortized		Period
	Expense		(Years)
Stock options	$	9,789	1.6
Restricted and performance stock units	$	26,124	2.5

Schedule of assumptions used for estimating the fair value of stock options


	Nine Months Ended
	September 30,
	2024	2023
Expected dividend yield	—	—
Risk-free interest rate	3.98%	3.46% - 4.62%
Expected volatility	90%	91% - 95%
Expected life (years)	6.1	5.8 - 6.1

Schedule of stock option activity


				Weighted
		Weighted		Average
		Average		Contractual	Aggregate
	Number of	Exercise		Term	Intrinsic
	Shares	Price		(in years)	Value
Outstanding as of December 31, 2023	9,573,937	$	4.80
Granted	7,500		12.86
Exercised	(351,653)		4.78
Cancelled	(179,926)		7.24
Outstanding as of September 30, 2024	9,049,858	$	4.76	7.1	$	47,835
Exercisable as of September 30, 2024	6,649,860	$	4.48	6.8	$	37,106
Vested and expected to vest as of September 30, 2024	8,772,869	$	4.73	7.1	$	46,661

Schedule of unvested RSU awards outstanding


		Weighted
		Average
		Grant-Date
	Number of	Fair Value
	RSUs	(per RSU)
Unvested as of December 31, 2023	1,657,978	$	6.41
Granted	2,146,517		12.57
Vested	(615,827)		6.48
Forfeited	(94,047)		7.52
Unvested as of September 30, 2024	3,094,621	$	10.64

Employee Stock Purchase Plan

Schedule of assumptions used for estimating the fair value of stock options


	Nine Months Ended
	September 30,
	2024	2023
Expected dividend yield	—	—
Risk-free interest rate	4.80% - 5.27%	5.20% - 5.47%
Expected volatility	62% - 72%	60% - 64%
Expected life (years)	0.50	0.50

Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited)
Revenue	$ 4,448	$ 3,678	$ 11,079	$ 12,957
Costs and expenses:
Cost of revenue	1,565	570	4,525	1,895
Research and development	11,890	7,440	31,367	30,413
General and administrative	20,182	10,559	60,374	27,597
Total costs and expenses	33,637	18,569	96,266	59,905
Loss from operations	(29,189)	(14,891)	(85,187)	(46,948)
Other income (expense):
Interest income	1,815	862	5,550	2,518
Interest expense	(2,996)	(1,761)	(8,120)	(4,311)
Gain (loss) on extinguishment of debt	7,215		(4,268)	(2,311)
Total other income (expense), net	6,034	(899)	(6,838)	(4,104)
Net loss and comprehensive loss	$ (23,155)	$ (15,790)	$ (92,025)	$ (51,052)
Net loss per common share, basic (in dollars per share)	$ (0.30)	$ (0.24)	$ (1.20)	$ (0.79)
Net loss per common share, diluted (in dollars per share)	$ (0.30)	$ (0.24)	$ (1.20)	$ (0.79)
Weighted average common shares outstanding, basic (in shares)	78,316,820	64,857,508	76,719,990	64,767,893
Weighted average common shares outstanding, diluted (in shares)	78,316,820	64,857,508	76,719,990	64,767,893

Leases (Tables)

9 Months Ended

Sep. 30, 2024

Leases

Schedule of lease cost


		Three Months Ended September 30,				Nine Months Ended September 30,
	Classification	2024		2023		2024		2023
Operating lease cost:
Fixed lease cost	Research and development	$	177	$	175	$	527	$	527
Fixed lease cost	General and administrative		20		20		59		59
Finance lease cost:
Amortization of lease assets	Research and development		22		22		67		74
Interest on lease liabilities	Interest expense		2		3		6		13
Total Lease Cost		$	221	$	220	$	659	$	673

The weighted average remaining lease term and discount rates as of September 30, 2024 were as follows:


Weighted average remaining lease term (years):
Operating leases	2.1
Finance leases	0.5
Weighted average discount rate:
Operating leases	10.3	%
Finance leases	6.5	%

Schedule of future minimum lease payments

The future minimum lease payments as of September 30, 2024 were as follows:


	Operating		Finance
Year ending December 31:	Leases		Leases		Total
2024 (three months remaining)	$	338	$	29	$	367
2025		1,370		64		1,434
2026		1,169		—		1,169
Total minimum lease payments		2,877		93		2,970
Less: interest		(278)		(2)		(280)
Present value of lease liabilities	$	2,599	$	91	$	2,690

Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2024
Stock-Based Compensation
Outstanding, number of shares (in shares)	9,573,937
Outstanding, weighted average exercise price (in dollars per share)	$ 4.80
Granted, number of shares (in shares)	7,500
Granted, weighted average exercise price (in dollars per share)	$ 12.86
Exercised, number of shares (in shares)	(351,653)
Exercised, weighted average exercise price (in dollars per share)	$ 4.78
Cancelled, number of shares (in shares)	(179,926)
Cancelled, weighted average exercise price (in dollars per share)	$ 7.24
Outstanding, number of shares (in shares)	9,049,858
Outstanding, weighted average exercise price (in dollars per share)	$ 4.76
Outstanding, weighted average contractual term (Year)	7 years 1 month 6 days
Outstanding, aggregate intrinsic value	$ 47,835
Exercisable, number of shares (in shares)	6,649,860
Exercisable, weighted average exercise price (in dollars per share)	$ 4.48
Exercisable, weighted average contractual term (Year)	6 years 9 months 18 days
Exercisable, aggregate intrinsic value	$ 37,106
Vested and expected to vest, number of shares (in shares)	8,772,869
Vested and expected to vest, weighted average exercise price (in dollars per share)	$ 4.73
Vested and expected to vest, weighted average contractual term (Year)	7 years 1 month 6 days
Vested and expected to vest, aggregate intrinsic value	$ 46,661

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2024	Oct. 30, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-39724
Entity Registrant Name	LIQUIDIA CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	85-1710962
Entity Address, Address Line One	419 Davis Drive, Suite 100
Entity Address, City or Town	Morrisville
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	27560
City Area Code	919
Local Phone Number	328-4400
Title of 12(b) Security	Common stock, $0.001 par value per share
Trading Symbol	LQDA
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	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		84,636,621
Entity Central Index Key	0001819576
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

Legal Proceedings

9 Months Ended

Sep. 30, 2024

Legal Proceedings

Legal Proceedings

14. Legal Proceedings

YUTREPIA-Related Litigation

In 2020, United Therapeutics filed a complaint for patent infringement against the Company in the U.S. District Court for the District of Delaware (the “Original Hatch-Waxman Litigation”), asserting infringement by the Company of U.S. Patent Nos. 9,604,901, entitled “Process to Prepare Treprostinil, the Active Ingredient in Remodulin®” (the “‘901 Patent”), 9,593,066, entitled “Process to Prepare Treprostinil, the Active Ingredient in Remodulin®” (the “‘066 Patent”), and 10,716,793, entitled “Treprostinil Administration by Inhalation” (the “‘793 Patent”) relating to United Therapeutics’ Tyvaso®, a nebulized treprostinil solution for the treatment of PAH. United Therapeutics’ complaint was in response to the Company’s NDA for YUTREPIA, filed with the FDA, requesting approval to market YUTREPIA, a dry powder formulation of treprostinil for the treatment of PAH. The YUTREPIA NDA was filed under the 505(b)(2) regulatory pathway with Tyvaso® as the reference listed drug.

In December 2021, United Therapeutics filed a stipulation of partial judgment with respect to the ‘901 Patent under which United Therapeutics agreed to the entry of judgment of the Company’s non-infringement of the ’901 Patent. In August 2022, Judge Andrews, who was presiding over the Original Hatch-Waxman Litigation, issued an opinion that claims 1, 2, 3, 6 and 9 of the ‘066 Patent were invalid, that the remaining asserted claims of the ‘066 Patent were not infringed by the Company. In January 2021, the Company filed a petition for inter partes review with the Patent Trial and Appeal Board (the “PTAB”) relating to the ‘793 Patent, seeking a determination that the claims in the ‘793 Patent are invalid. In July 2022, the PTAB ruled in the Company’s favor, concluding that based on the preponderance of the evidence, all the claims of the ’793 Patent have been shown to be unpatentable. These decisions related to the ‘901 Patent, the ‘066 Patent and the ‘793 Patent have all been affirmed on appeal and are not subject to further appeal.

In connection with an amendment to the Company’s NDA filed in July 2023 to add PH-ILD as an indication for YUTREPIA, the Company provided a new notice of the paragraph IV certification to United Therapeutics as the owner of the patents that are the subject of the certification to which the NDA for YUTREPIA refers. As a result, in September 2023, United Therapeutics filed a second complaint for patent infringement against the Company in the U.S. District Court for the District of Delaware (Case No. 1:23-cv-00975-RGA) (the “New Hatch-Waxman Litigation”), again asserting infringement by the Company of the ‘793 Patent. In November 2023, the U.S. Patent and Trademark Office (the “USPTO”) issued U.S. Patent No. 11,826,327, or the ‘327 Patent, entitled “Treatment for Interstitial Lung Disease”, to United Therapeutics. On November 30, 2023, United Therapeutics filed an amended complaint in the New Hatch-Waxman Litigation asserting infringement of the ‘327 Patent by the practice of YUTREPIA based on the amended NDA. In January 2024, the Company filed an answer, counterclaims and a partial motion to dismiss the claims related to the ‘793 Patent as a result of the decision by the United States Court of Appeals for the Federal Circuit to affirm the PTAB’s finding that the ’793 patent is unpatentable. In February 2024, United Therapeutics stipulated to the dismissal of the claims in the New Hatch-Waxman Litigation related to the ‘793 Patent. In February 2024, United Therapeutics also filed a motion seeking a preliminary injunction to prevent the Company from manufacturing, marketing, storing, importing, distributing, offering for sale, and/or selling YUTREPIA for the treatment of PH-ILD. Judge Andrews denied the motion for a preliminary injunction in May 2024. Discovery in the case remains ongoing.

FDA Litigation

In February 2024, United Therapeutics filed a complaint against the FDA in the U.S. District Court for the District of Columbia (the “D.C. District Court”), challenging the FDA’s acceptance of the Company’s amended NDA for review (the “Original FDA Litigation”). The Company intervened and became a party to the lawsuit in March 2024. In March 2024, United Therapeutics filed a motion for a temporary restraining order and preliminary injunction in the FDA Litigation, seeking to enjoin the FDA from approving the Company’s NDA for YUTREPIA with respect to the indication to treat PH-ILD. United Therapeutics’ motion was denied in March 2024. On August 20, 2024, United Therapeutics voluntarily dismissed its complaint, without prejudice.

On August 21, 2024, the Company filed a lawsuit in the D.C. District Court to challenge the decision by the FDA to grant three-year regulatory exclusivity to Tyvaso DPI (the “New FDA Litigation”). The D.C. District Court has granted the parties’ motion for an expedited summary judgment briefing schedule, with briefing to be completed on or before November 15, 2024 and a summary judgment hearing scheduled for December 5, 2024. On September 16, 2024, United Therapeutics filed a cross claim in the New FDA Litigation, re-asserting its challenge to FDA’s acceptance of the Company’s amended NDA for review. The Company intervened and became a party with respect to the cross claim on November 5, 2024. United Therapeutics has filed a motion for an expedited summary judgment briefing schedule for its cross claim. That motion remains pending.

Trade Secret Litigation

In December 2021, United Therapeutics filed a complaint in the Superior Court in Durham County, North Carolina, alleging that the Company and Robert Roscigno (“Dr. Roscigno”) a former United Therapeutics employee, who later joined the Company as an employee many years after terminating his employment with United Therapeutics, conspired to misappropriate certain trade secrets of United Therapeutics and engaged in unfair or deceptive trade practices. In January 2024, Dr. Roscigno filed a motion for summary judgment with respect to all claims, but the motion was denied in July 2024. In addition, in July 2024, the Company filed a motion for summary judgment with respect to all claims. A hearing on the Company’s motion for summary judgment has been scheduled for December 19, 2024.

In May 2024, United Therapeutics filed a second complaint in the Superior Court in Durham County, North Carolina, against Dr. Roscigno, alleging that he breached prior employment agreements with United Therapeutics by failing to assign to United Therapeutics his interest in patents obtained by the Company that relied upon or benefitted from certain inventions, discoveries, materials, authorship, derivatives and results developed by Dr. Roscigno while he was employed by United Therapeutics. The Company was also named as a defendant in this new lawsuit. As part of the lawsuit, United Therapeutics alleges that Dr. Roscigno misappropriated certain intellectual property of United Therapeutics which led to the development of YUTREPIA. The complaint also seeks declaratory judgement such that all right, title and interest in and to any patentable or unpatentable inventions, discoveries, and ideas made or conceived by Dr. Roscigno while employed by the Company should be assigned and transferred to United Therapeutics because they involved the use of United Therapeutics’ confidential information. On July 30, 2024, the Company filed a motion to dismiss all claims. A hearing on the Company’s motion to dismiss has been scheduled for December 19, 2024.

RareGen Litigation

In April 2019, Sandoz and Liquidia PAH (then known as RareGen) filed a complaint against United Therapeutics and Smiths Medical (now ICU Medical) in the District Court of New Jersey (Case No. No. 3:19 cv 10170), (the “RareGen Litigation”), alleging that United Therapeutics and Smiths Medical violated the Sherman Antitrust Act of 1890, state law antitrust statutes and unfair competition statutes by engaging in anticompetitive acts regarding the drug treprostinil for the treatment of PAH. In March 2020, Sandoz and Liquidia PAH filed a first amended complaint adding a claim that United Therapeutics breached a settlement agreement that was entered into in 2015, in which United Therapeutics agreed to not interfere with Sandoz’s efforts to launch its generic treprostinil, by taking calculated steps to restrict and interfere with the launch of Sandoz’s competing generic product. United Therapeutics developed treprostinil under the brand name Remodulin® and Smiths Medical manufactured a pump and cartridges that are used to inject treprostinil into patients continuously throughout the day. Sandoz and Liquidia PAH allege that United Therapeutics and Smiths Medical entered into anticompetitive agreements (i) whereby Smiths Medical placed restrictions on the cartridges such that they can only be used with United Therapeutics’ branded Remodulin® product and (ii) requiring Smiths Medical to enter into agreements with specialty pharmacies to sell the cartridges only for use with Remodulin®.

In November 2020, Sandoz and Liquidia PAH entered into a binding term sheet (the “Term Sheet”) with Smiths Medical in order to resolve the outstanding RareGen Litigation solely with respect to disputes between Smiths Medical, Liquidia PAH and Sandoz. In April 2021, Liquidia PAH and Sandoz entered into a Long Form Settlement Agreement (the “Settlement Agreement”) with Smiths Medical to further detail the terms of the settlement among such parties as reflected in the Term Sheet. Pursuant to the Term Sheet and the Settlement Agreement, the former RareGen members and Sandoz received a payment of $4.25 million that was evenly split between the parties. In addition, pursuant to the Term Sheet and Settlement Agreement, Smiths Medical disclosed and made available to Sandoz and Liquidia PAH

certain specifications and other information related to the cartridge that Smiths Medical developed and manufactures for use with the CADD-MS 3 infusion pump (the “CADD-MS 3 Cartridge”). Pursuant to the Settlement Agreement, Smiths Medical also granted Liquidia PAH and Sandoz a non-exclusive, royalty-free license in the United States to Smiths Medical’s patents and copyrights associated with the CADD-MS 3 Cartridge and certain other information for use of the CADD-MS 3 pump and the CADD-MS 3 Cartridges. Smiths also agreed in the Settlement Agreement to provide information and assistance in support of Liquidia PAH’s efforts to receive FDA clearance for the RG 3ml Medication Cartridge (the “RG Cartridge”) and to continue to service certain CADD-MS 3 pumps that are available for use with the Treprostinil Injection through January 1, 2025. Liquidia PAH and Sandoz agreed, among other things, to indemnify Smiths from certain liabilities related to the RG Cartridge.

In September 2021, United Therapeutics filed a motion for summary judgment with respect to all of the claims brought by Sandoz and Liquidia PAH against United Therapeutics. At the same time, Sandoz filed a motion for summary judgment with respect to the breach of contract claim. In March 2022, the Court issued an order granting partial summary judgment to United Therapeutics with respect to the antitrust and unfair competition claims, denying summary judgment to United Therapeutics with respect to the breach of contract claim, and granting partial summary judgment to Sandoz with respect to the breach of contract claim. A trial to determine the amount of damages due from United Therapeutics to Sandoz with respect to the breach of contract claim was held from late April to early May 2024, and closing arguments were held in June 2024. On November 1, 2024, the Court entered a judgment in the amount of $70.6 million. United Therapeutics has filed a notice of its intent to appeal the decision.

Under the Promotion Agreement, all proceeds from the litigation will be divided evenly between Sandoz and Liquidia PAH. Under the litigation finance agreements that Liquidia PAH has entered into with Henderson and PBM, any net proceeds received by Liquidia PAH with respect to the RareGen Litigation will be divided between Henderson and PBM.

Leases - Future Minimum Lease Payments (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Operating Leases
2024 (three months remaining)	$ 338
2025	1,370
2026	1,169
Total minimum lease payments	2,877
Less: interest	(278)
Present value of lease liabilities	2,599
Finance Leases
2024 (three months remaining)	29
2025	64
2026	0
Total minimum lease payments	93
Less: interest	(2)
Present value of lease liabilities	91
Total
2024 (three months remaining)	367
2025	1,434
2026	1,169
Total minimum lease payments	2,970
Less: interest	(280)
Present value of lease liabilities	$ 2,690

Business

9 Months Ended

Sep. 30, 2024

Business

Business

1. Business

Description of the Business

We are a biopharmaceutical company focused on the development, manufacture, and commercialization of products that address unmet patient needs, with current focus directed towards rare cardiopulmonary diseases such as pulmonary arterial hypertension (“PAH”) and pulmonary hypertension associated with interstitial lung disease (“PH-ILD”). We operate through our wholly owned operating subsidiaries, Liquidia Technologies, Inc. (“Liquidia Technologies”) and Liquidia PAH, LLC (“Liquidia PAH”), formerly known as RareGen, LLC (“RareGen”).

We currently generate revenue pursuant to a promotion agreement between Liquidia PAH and Sandoz Inc. (“Sandoz”), dated as of August 1, 2018, as amended (the “Promotion Agreement”), sharing profit derived from the sale of Sandoz’s substitutable generic treprostinil injection (“Treprostinil Injection”) in the United States. Liquidia PAH has the exclusive rights to conduct commercial activities to encourage the appropriate use of Treprostinil Injection. We employ a targeted sales force calling on physicians and hospital pharmacies involved in the treatment of PAH and PH-ILD in the United States, as well as key stakeholders involved in the distribution and reimbursement of medicines to treat these patients. We established our commercial presence in the field to support Treprostinil Injection and have since expanded our presence to support the potential launch of YUTREPIA (treprostinil) inhalation powder (“YUTREPIA”), further validating our reputation as a company committed to supporting PAH and PH-ILD patients.

We conduct research, development and manufacturing of novel products by applying our subject matter expertise in cardiopulmonary diseases and our proprietary PRINT® technology, a particle engineering platform, to enable precise production of uniform drug particles designed to improve the safety, efficacy and performance of a wide range of therapies. Through development of our own products and research with third parties, we have experience applying PRINT across multiple routes of administration and drug payloads including inhaled therapies, vaccines, biologics, nucleic acids and ophthalmic implants, among others.

Our lead product candidate is YUTREPIA for the treatment of PAH and PH-ILD. YUTREPIA is an inhaled dry powder formulation of treprostinil designed with PRINT to improve the therapeutic profile of treprostinil by enhancing deep lung delivery while using a convenient, low effort dry-powder inhaler (“DPI”) and by achieving higher dose levels than the labeled doses of current inhaled therapies. On August 16, 2024, the United States Food and Drug Administration (the “FDA”) (i) granted tentative approval for our New Drug Application (“NDA”) for YUTREPIA for the treatment of PAH and PH-ILD and (ii) simultaneously determined that Tyvaso DPI, approved on May 23, 2022, qualifies for a three-year New Clinical Investigation exclusivity for the chronic use of dry powder formulations of treprostinil for the approved indications. As a result, final approval of YUTREPIA for PAH and PH-ILD is currently delayed until after expiry of the three-year regulatory exclusivity for Tyvaso DPI on May 23, 2025.

We are also developing L606, an investigational, liposomal formulation of treprostinil administered twice-daily with a short-duration next-generation nebulizer, which we licensed from Pharmosa Biopharm Inc. (“Pharmosa”). L606 is currently being evaluated in an open-label study in the United States for treatment of PAH and PH-ILD with a planned pivotal study for the treatment of PH-ILD.

Risks and Uncertainties

We are subject to risks and uncertainties common to companies in the biotechnology industry, including, but not limited to, development by competitors of new technological innovations, dependence on third parties and key personnel, protection of proprietary technology, compliance with government regulations, and the ability to secure additional capital to fund operations.

The current global macro-economic environment is volatile, which may result in supply chain constraints and elevated rates of inflation. In addition, we operate in a dynamic and highly competitive industry and believe that changes in any of the following areas could have a material adverse effect on our future financial position, results of operations, or cash flows: the ability to obtain future financing; advances and trends in new technologies and industry standards; results of clinical trials; regulatory approval, market acceptance and third-party payor coverage for our products; development of sales channels; certain strategic relationships; litigation or claims against us, including claims related to intellectual property, product, regulatory, or other matters; and our ability to attract and retain employees necessary to support our growth.

Product candidates we develop require approval from the FDA and/or other international regulatory agencies prior to commercial sales. There can be no assurance that our product candidates will receive the necessary approvals or, if we do, the indications for which our products will be approved. If we are denied approval, approval is delayed, approval is for less than all of the indications we are seeking, or we are unable to maintain approval, it could have a material adverse impact on our business, financial position and results of operations.

We rely on single source manufacturers and suppliers for the supply of our product candidates, adding to the manufacturing risks we face. In the event of any failure by a supplier, we could be left without backup facilities. Any disruption from these manufacturers or suppliers could have a negative impact on our business, financial position and results of operations.

Liquidity

We have financed our growth and operations through a combination of funds generated from revenues, the issuance of convertible preferred stock and common stock, bank borrowings, bank borrowings with warrants, the issuance of convertible notes and warrants, and revenue interest financing. Since inception, we have incurred recurring losses, including a net loss of $92.0 million for the nine months ended September 30, 2024. As of September 30, 2024, we had an accumulated deficit of $521.1 million.

We expect to incur significant expenses and operating losses for the foreseeable future as we advance our product candidates through clinical trials, seek regulatory approval of such product candidates and pursue commercialization of any approved product candidates. These efforts require significant amounts of capital, adequate personnel and infrastructure, and extensive compliance-reporting capabilities. Even if our development efforts are successful, it is uncertain when, if ever, we will realize significant revenue from product sales. Additionally, the Revenue Interest Financing Agreement with HealthCare Royalty Partners IV, L.P. (“HCR”) dated January 9, 2023, as amended (the “RIFA”) contains fixed quarterly payments and minimum cash covenants that require us to maintain cash and cash equivalents in an amount at least equal to $7.5 million during the calendar year beginning on January 1, 2024 and at least equal to $15.0 million for the remainder of the payment term after the calendar year ended December 31, 2024.

In September 2024, we entered into the Fifth Amendment to the RIFA pursuant to which HCR funded an additional $32.5 million on September 12, 2024, for total funding of $100 million. Additionally, payments due under the RIFA were amended such that the one-time fixed payment previously due in July 2025 is now due in equal payments in January and July 2026. See Note 12 for further information.

On September 12, 2024, we sold shares of our common stock in an underwritten registered public offering for net proceeds of approximately $53.7 million and sold shares of our common stock for net proceeds of approximately $10.0 million in a private offering. See Note 8 for further information.

Our future funding requirements will be heavily determined by the timing of the potential commercialization of YUTREPIA and the resources needed to support development of our product candidates. Based on our current plans, we expect that we will require additional capital to fund operations as well as to pursue in-licenses or acquisitions of other product candidates. If we are unable to obtain additional funding, we could be required to delay, reduce, or eliminate research and development programs, product portfolio expansion, or future commercialization efforts, which could adversely affect our business prospects, or we may be unable to continue operations.

Although we expect to continue to generate operating losses for the foreseeable future, we believe that as a result of the recent Fifth Amendment to the RIFA and net proceeds from the sale of common stock described above, excluding any future YUTREPIA product revenue, our cash and cash equivalents will be sufficient to fund operations, capital expenditures, and RIFA payments and allow us to remain in compliance with our minimum cash covenants pursuant to the RIFA for at least twelve months from the issuance date of these condensed consolidated financial statements. If we have not received full FDA approval and generated sufficient cash from product sales of YUTREPIA or are unable to access additional capital by the date of issuance of our fiscal year 2024 consolidated financial statements, we expect there would be substantial doubt about our ability to continue as a going concern as of that date. We have based this estimate on assumptions that may prove to be wrong, and we could utilize our available capital resources sooner than we currently expect, which would have a material impact on our operations.

Revenue Interest Financing Payable - Terms (Details) $ in Thousands							1 Months Ended	3 Months Ended		8 Months Ended	9 Months Ended		12 Months Ended
	Sep. 12, 2024 USD ($)	Jan. 05, 2024 USD ($)	Jan. 04, 2024 USD ($)	Jul. 27, 2023 USD ($)	Jan. 27, 2023 USD ($)	Jan. 09, 2023 USD ($) tranche	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)	Mar. 31, 2024 USD ($)	Sep. 11, 2024 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Revenue Interest Financing Payable
Amount of debt repaid with initial investment from RIFA												$ 2,190
Loss on extinguishment	$ (7,215)	$ 11,483						$ 7,215	$ (11,500)		$ (4,268)	$ (2,311)	$ (2,300)
Amount funded under the second tranche			$ 24,975							$ 32,485
Revenue Interest Financing Agreement
Revenue Interest Financing Payable
RIFA, maximum investment amount						$ 100,000
RIFA, number of tranches \| tranche						4
RIFA, initial investment amount					$ 32,500
RIFA, Hard Cap percentage						175
Percentage of investment amount to be repaid on final approval						100
Percentage of investment amount to be paid						100
Minimum cash and cash equivalents required to be maintained during next year						$ 7,500
Minimum cash and cash equivalents required to be maintained after December 31, 2024						$ 15,000
RIFA, total amount funded							$ 100,000
Issuance costs											$ 900
Effective annual interest rate											15.20%
Revenue Interest Financing Agreement \| On first funded portion of investment amount
Revenue Interest Financing Payable
RIFA, internal rate of return						18.00%
RIFA, total amount funded						$ 67,500
Revenue Interest Financing Agreement \| On second portion of funded investment amount
Revenue Interest Financing Payable
RIFA, internal rate of return						16.00%
RIFA, total amount funded						$ 32,500
Revenue Interest Financing Agreement \| A&R Silicon Valley Bank Term Loan
Revenue Interest Financing Payable
Amount of debt repaid with initial investment from RIFA					$ 22,200
Second and Third Amendments to Revenue Interest Financing Agreement
Revenue Interest Financing Payable
Amount funded under the second tranche				$ 10,000
Fourth Amendment to Revenue Interest Financing Agreement
Revenue Interest Financing Payable
Amount funded under the second tranche		$ 25,000
Fifth Amendment to Revenue Interest Financing Agreement
Revenue Interest Financing Payable
Amount funded under the second tranche	$ 32,500						$ 32,500

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands					1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 12, 2024	Jan. 08, 2024	Jan. 04, 2024	Dec. 12, 2023	Sep. 30, 2024	Sep. 30, 2024	Mar. 31, 2024	Sep. 30, 2024	Sep. 30, 2023
Sale of common stock, net						$ 63,677	$ 74,868
Net proceeds from issuance of common stock in private offering	$ 10,000
Net proceeds from issuance of common stock in public offering	$ 53,700
Warrants, Expiration, January 6, 2032
Class of Warrant or Right, Outstanding (in shares)					250,000	250,000		250,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)					$ 5.14	$ 5.14		$ 5.14
Warrants, Initial Tranche, Expiration, February 26, 2031
Class of Warrant or Right, Outstanding (in shares)					100,000	100,000		100,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)					$ 3.05	$ 3.05		$ 3.05
Warrants, Other Tranches, Expiration, February 26, 2031
Class of Warrant or Right, Outstanding (in shares)					100,000	100,000		100,000
Warrants, Expiration, December 31, 2026
Class of Warrant or Right, Outstanding (in shares)					56,397	56,397		56,397
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)					$ 0.02	$ 0.02		$ 0.02
Warrants to Purchase Common Stock
Class of Warrant or Right, Exercised During Period (in shares)								9,175	0
Private Placement
Stock Issued During Period, Shares, New Issues (in shares)			7,182,532		1,123,595
Shares Issued, Price Per Share (in dollars per share)			$ 10.442		$ 8.90	8.90		$ 8.90
Proceeds from Issuance of Private Placement		$ 75,000			$ 10,000
Private Placement \| Maximum
Before deducting offering costs		$ 100
Private Placement \| Roger Jeffs
Stock Issued During Period, Shares, New Issues (in shares)				139,665
Shares Issued, Price Per Share (in dollars per share)				$ 7.16
Proceeds from Issuance of Private Placement				$ 1,000
Underwritten Public Offering
Stock Issued During Period, Shares, New Issues (in shares)				3,491,620	6,460,674
Shares Issued, Price Per Share (in dollars per share)				$ 7.16	$ 8.90	$ 8.90		$ 8.90
Proceeds from Issuance of Common Stock, Net				$ 25,000
Payments for offering costs				1,900	$ 3,800
Proceeds from Issuance of Common Stock					$ 57,500
Underwritten Public Offering \| Board of Directors
Sale of common stock, net								$ 3,000
Underwritten Public Offering \| Caligan and Paul B. Manning
Sale of common stock, net				$ 10,000
Underwritten Public Offering \| Caligan
Stock Issued During Period, Shares, New Issues (in shares)				1,117,318
Sale of common stock, net				$ 8,000
Underwritten Public Offering \| Mr. Paul B. Manning
Stock Issued During Period, Shares, New Issues (in shares)				279,330
Sale of common stock, net				$ 2,000

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 204,368	$ 83,679
Accounts receivable, net	4,202	4,061
Inventory	38
Prepaid expenses and other current assets	5,604	2,159
Total current assets	214,212	89,899
Property, plant and equipment, net	7,784	4,480
Operating lease right-of-use assets, net	1,371	1,704
Indemnification asset, related party	7,206	6,707
Contract acquisition costs, net	7,433	7,922
Intangible asset, net	3,219	3,430
Goodwill	3,903	3,903
Other assets	7,758	287
Total assets	252,886	118,332
Current liabilities:
Accounts payable	2,298	1,396
Accrued expenses and other current liabilities	17,039	13,400
Revenue interest financing payable, current	13,252	2,615
Operating and finance lease liabilities, current	1,249	1,139
Total current liabilities	33,838	18,550
Litigation finance payable	7,196	6,707
Revenue interest financing payable, noncurrent	99,892	43,418
Operating and finance lease liabilities, noncurrent	1,442	2,364
Total liabilities	142,368	71,039
Commitments and contingencies (Note 13)
Stockholders' equity:
Preferred stock - 10,000,000 shares authorized, none outstanding	0	0
Common stock - $0.001 par value, 115,000,000 and 100,000,000 shares authorized as of September 30, 2024 and December 31, 2023, respectively, 84,545,409 and 68,629,575 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively	85	69
Additional paid-in capital	631,556	476,322
Accumulated deficit	(521,123)	(429,098)
Total stockholders' equity	110,518	47,293
Total liabilities and stockholders' equity	$ 252,886	$ 118,332

Stock-Based Compensation - Other (Details) - $ / shares			1 Months Ended	3 Months Ended				9 Months Ended
Stock-Based Compensation - Other (Details) - $ / shares	Jan. 01, 2024	Jan. 01, 2023	Nov. 30, 2020	Sep. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023	Jan. 25, 2022
Percentage of the number of shares of common stock issued and outstanding			1.00%
Number of common stock shares outstanding			150,000
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price (in dollars per share)								$ 12.86
Restricted Stock Units
Share-based compensation arrangement by share-based payment award, award vesting period								4 years
Granted, number (in shares)								2,146,517
Performance Based Restricted Stock Units
Granted, number (in shares)								520,526
Common Stock
Issuance of common stock under employee stock purchase plan (in shares)				104,413	67,982	59,641	81,281
Share Price (in dollars per share)				$ 10.00				$ 10.00
Share-based Payment Arrangement, Tranche One \| Performance Based Restricted Stock Units
Share-based compensation arrangement by share-based payment award, award vesting period								1 year
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage								25.00%
Share-based Payment Arrangement, Tranche Two \| Performance Based Restricted Stock Units
Share-based compensation arrangement by share-based payment award, award vesting period								3 years
Employee Stock Option
Share-based compensation arrangement by share-based payment award, award vesting period								4 years
The 2020 Plan
Share-based compensation arrangement by share-based payment award, percent annual increase in capital shares reserved for future issuance								4.00%
Share-based compensation arrangement by share-based payment award, number of additional shares authorized (in shares)	2,745,183
Share-based compensation arrangement by share-based payment award, number of shares available for grant (in shares)				900,518				900,518
Common stock, capital shares reserved for future issuance (in shares)				473,076				473,076
2022 Inducement Plan
Common stock, capital shares reserved for future issuance (in shares)				27,608				27,608		310,000
Employee Stock Purchase Plan
Common stock, capital shares reserved for future issuance (in shares)				534,742				534,742
Available of issuance under the ESPP		150,000
Share-based compensation arrangement by share-based payment award, purchase price of common stock, percent								85.00%
Issuance of common stock under employee stock purchase plan (in shares)								172,395	140,922

Basis of Presentation, Significant Accounting Policies and Fair Value Measurements

9 Months Ended

Sep. 30, 2024

Basis of Presentation, Significant Accounting Policies and Fair Value Measurements

Basis of Presentation, Significant Accounting Policies and Fair Value Measurements

2. Basis of Presentation, Significant Accounting Policies and Fair Value Measurements

Basis of Presentation

Use of Estimates

Segment Information

Summary of Significant Accounting Policies

Our significant accounting policies are disclosed in Note 2 of the consolidated financial statements for the years ended December 31, 2023 and 2022, which are included in our 2023 Annual Report on Form 10-K. There have been no material changes to our significant accounting policies during the nine months ended September 30, 2024.

Recent Accounting Pronouncements

Cash, Cash Equivalents, and Concentration of Credit Risk

We consider all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents.

Accounts Receivable

Prelaunch Inventory

Long-Lived Assets

Goodwill

Revenue Interest Financing Payable

Revenue Recognition

●

Step 1: Identify the contract with the customer

●

Step 2: Identify the performance obligations in the contract

●

Step 3: Determine the transaction price

●

Step 4: Allocate the transaction price to the performance obligations in the contract

●

Step 5: Recognize revenue when the company satisfies a performance obligation

In order to identify the performance obligations in a contract with a customer, we assess the promised goods or services in the contract and identify each promised good or service that is distinct.

If a good or service is not distinct, the good or service is combined with other promised goods or services until a bundle of goods or services is identified that is distinct.

Research and Development Expense

Accrued Research and Development Expenses

Stock-Based Compensation

Net Loss Per Share


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2024	2023	2024	2023
Stock Options	9,113,427	9,573,680	9,372,790	9,494,833
Restricted Stock Units	3,131,834	1,704,353	3,062,498	1,689,998
Warrants	450,000	450,000	450,000	450,000
Total	12,695,261	11,728,033	12,885,288	11,634,831

Certain common stock warrants are included in the calculation of basic and diluted net loss per share since their exercise price is de minimis.

Fair Value Measurements

Level 1 — Quoted prices in active markets for identical assets or liabilities;

Level 2 — Inputs other than quoted prices included in active markets that are observable for the asset or liability, either directly or indirectly; and

Level 3 — Unobservable inputs for the asset and liability used to measure fair value, to the extent that observable inputs are not available.

Quoted

Significant

Prices in

Other

Significant

Active

Observable

Unobservable

Markets

Inputs

Carrying

September 30, 2024

(Level 1)

(Level 2)

(Level 3)

Value

Money market funds (cash equivalents)

198,565

—

198,565

Quoted

Significant

Prices in

Other

Significant

Active

Observable

Unobservable

Markets

Inputs

Carrying

December 31, 2023

(Level 1)

(Level 2)

(Level 3)

Value

Money market funds (cash equivalents)

79,912

—

79,912

Basis of Presentation, Significant Accounting Policies and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Basis of Presentation, Significant Accounting Policies and Fair Value Measurements

Summary of calculation of diluted net loss per share


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2024	2023	2024	2023
Stock Options	9,113,427	9,573,680	9,372,790	9,494,833
Restricted Stock Units	3,131,834	1,704,353	3,062,498	1,689,998
Warrants	450,000	450,000	450,000	450,000
Total	12,695,261	11,728,033	12,885,288	11,634,831

Summary of financial assets and liabilities measured at fair value

Quoted

Significant

Prices in

Other

Significant

Active

Observable

Unobservable

Markets

Inputs

Carrying

September 30, 2024

(Level 1)

(Level 2)

(Level 3)

Value

Money market funds (cash equivalents)

198,565

—

198,565

Quoted

Significant

Prices in

Other

Significant

Active

Observable

Unobservable

Markets

Inputs

Carrying

December 31, 2023

(Level 1)

(Level 2)

(Level 3)

Value

Money market funds (cash equivalents)

79,912

—

79,912

Commitments and Contingencies

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies.

Commitments and Contingencies

13. Commitments and Contingencies

Pharmosa License Agreement and Device License Agreement

In June 2023, we entered into a License Agreement with Pharmosa Biopharm Inc. (“Pharmosa”) pursuant to which we were granted an exclusive license in North America to develop and commercialize L606, an inhaled, sustained-release formulation of treprostinil currently being evaluated in a clinical trial for the treatment of pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD), and a non-exclusive license for the manufacture, development and use (but not commercialization) of such licensed product in most countries outside North America (the “Pharmosa License Agreement”). On October 2, 2024, we and Pharmosa entered into a First Amendment to the Pharmosa License Agreement (the “First Amendment”) which, among other things, expands our licensed territory beyond North America to include key markets in Europe, Japan and elsewhere.

Concurrently with the execution of the First Amendment, we and Pharmosa also entered into a Device License Agreement (the “Device License Agreement”). Pursuant to the terms of the Device License Agreement, Pharmosa will provide (i) an exclusive license to Liquidia Technologies for the right to develop, manufacture, use and commercialize Pharmosa’s next-generation smart-technology nebulizers (the “Device”) for use with L606 in most countries (subject to certain exceptions) (the “Territory”) and (ii) a non-exclusive license to Liquidia Technologies for the right to develop, manufacture and use (but not commercialize) the Device outside of the Territory.

Under the terms of the Pharmosa License Agreement, as amended, we will be responsible for development, regulatory and commercial activities of L606 in the Territory. Pharmosa will manufacture clinical and commercial supplies of the liposomal formulation through its global supply chain and support us in establishing a redundant global supply chain. In consideration for these exclusive rights, we paid Pharmosa an upfront license fee of $10 million and paid an additional $3.5 million upfront license fee in October 2024 in connection with the rights granted in the First Amendment and the Device License Agreement. In addition to the upfront fees, we will pay Pharmosa potential development milestone payments tied to clinical development and approvals in PAH and/or PH-ILD of up to $37.75 million, potential sales milestones of up to $185 million in North America and $150 million outside North American and two tiers of low, double-digit royalties on all net sales of L606. Pharmosa will also receive a $10 million milestone payment for each additional indication approved after PAH and PH-ILD and each additional product approved under the license. We also retain the first right to negotiate for development and commercialization of L606 in Europe and other territories should Pharmosa seek a partner, subject to satisfaction of certain conditions as set forth in the Pharmosa License Agreement.

Mainbridge Health Care Device Development and Supply Agreement

In December 2022, we entered into a Device Development and Supply Agreement (the “Pump Development Agreement”) with Mainbridge Health Partners, LLC (“Mainbridge”) and Sandoz Inc. (“Sandoz”). The Pump Development Agreement provides for the cooperation between us, Sandoz and Mainbridge to develop a new pump that is suitable for the subcutaneous administration of Treprostinil Injection. Mainbridge will perform all development, validation and testing activities required for the pump and related consumables in anticipation of submitting a 510(k) clearance application for the pump to the FDA. In connection with the Pump Development Agreement, we and Sandoz have agreed to pay Mainbridge certain future contingent milestone payments in accordance with the terms and conditions set forth therein.

UNC License Agreement

We perform research under a license agreement with The University of North Carolina at Chapel Hill (“UNC”) as amended to date (the “UNC License Agreement”). As part of the UNC License Agreement, we hold an exclusive license to certain research and development technologies and processes in various stages of patent pursuit, for use in our research and development and commercial activities, with a term until the expiration date of the last to expire patent subject to the UNC License Agreement, subject to industry standard contractual compliance. Under the UNC License Agreement, we are obligated to pay UNC royalties equal to a low single digit percentage of all net sales of drug products whose manufacture, use or sale includes any use of the technology or patent rights covered by the UNC License

Agreement, including YUTREPIA. We may grant sublicenses of UNC licensed intellectual property in return for specified payments based on a percentage of any fee, royalty or other consideration received.

Chasm Technologies

In March 2012, we entered into an agreement, as amended, with Chasm Technologies, Inc. for manufacturing consulting services related to our manufacturing capabilities during the term of the agreement. We agreed to pay future contingent milestones and royalties on net sales totaling no more than $1.5 million, $0.2 million of which has been accrued as of September 30, 2024.

Employment Agreements and Executive Severance and Change in Control Plan

We have agreements with certain employees and an Executive Severance and Change in Control Plan which covers certain other employees which require payments if certain events, such as a change in control or termination without cause, occur.

Purchase Obligations

We enter into contracts in the normal course of business with contract service providers to assist in the performance of research and development and manufacturing activities. Subject to required notice periods and obligations under binding purchase orders, we can elect to discontinue the work under these agreements at any time.

On July 14, 2023, we entered into an Amended and Restated Commercial Manufacturing Services and Supply Agreement with Lonza Tampa LLC (“Lonza”) (the “CSA”). Lonza is our sole supplier for encapsulation and packaging services for YUTREPIA. Pursuant to the terms of the CSA, we deliver bulk treprostinil powder, manufactured using our proprietary PRINT^® technology, and Lonza encapsulates and packages it. The CSA was effective upon signing and will be in effect for an initial term of 5 years from receipt of regulatory approval of YUTREPIA by the FDA (“Regulatory Approval”) absent termination by either party in accordance with the terms of the CSA. We may terminate the CSA upon 60 days’ written notice to Lonza in the event that the application for regulatory approval is rejected by the FDA and such FDA decision is not caused by the fault of the Company (the “Termination for FDA Rejection”). Lonza may terminate the CSA upon 120 days written notice if we do not receive regulatory approval by December 31, 2024 (the “Termination for FDA Delay”). Upon any Termination for FDA Rejection or Termination for FDA Delay, we would reimburse Lonza for 50% of its documented out-of-pocket expenditures for any capital equipment that is purchased by Lonza after the effective date of the Agreement to perform the services for us, not to exceed $2.5 million in the aggregate.

We are required to provide Lonza with quarterly forecasts of our expected production requirements for the following 24-month period, the first twelve months of which is considered a binding, firm order. We are required to purchase certain minimum annual order quantities, which may be adjusted by us after the thirteenth month after receipt of regulatory approval (as defined in the CSA). The CSA provides for tiered pricing depending upon the batch size ordered.

In addition, we are party to a multi-year supply agreement with LGM Pharma, LLC (LGM) to supply active pharmaceutical ingredients for YUTREPIA. Under the supply agreement with LGM, we are required to provide rolling forecasts, a portion of which will be considered a binding, firm order, subject to an annual minimum purchase commitment of $2.7 million for the term of the agreement. The agreement expires five years from the first marketing authorization approval of YUTREPIA.

As of September 30, 2024, we have non-cancelable commitments for product manufacturing and supply costs of approximately $14.7 million.

Other Contingencies and Commitments

From time-to-time we are subject to claims and litigation in the normal course of business, none of which do we believe represent a risk of material loss or exposure. See Note 14 for further discussion of pending legal proceedings.

In addition to the commitments described above, we are party to other commitments, including non-cancelable leases and long-term debt, which are described elsewhere in these notes to the condensed consolidated financial statements.

Condensed Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2022	$ 64	$ 440,954	$ (350,596)	$ 90,422
Balance (in shares) at Dec. 31, 2022	64,517,912
Issuance of common stock upon exercise of stock options		79	0	79
Issuance of common stock upon exercise of stock options (in shares)	21,447
Issuance of common stock upon vesting of restricted stock units	$ 1	(1)	0
Issuance of common stock upon vesting of restricted stock units (in shares)	89,804
Issuance of common stock under employee stock purchase plan		335	0	335
Issuance of common stock under employee stock purchase plan (in shares)	81,281
Stock-based compensation		2,552	0	2,552
Net loss			(11,745)	(11,745)
Balance at Mar. 31, 2023	$ 65	443,919	(362,341)	81,643
Balance (in shares) at Mar. 31, 2023	64,710,444
Balance at Dec. 31, 2022	$ 64	440,954	(350,596)	90,422
Balance (in shares) at Dec. 31, 2022	64,517,912
Net loss				(51,052)
Balance at Sep. 30, 2023	$ 65	449,589	(401,648)	48,006
Balance (in shares) at Sep. 30, 2023	64,899,295
Balance at Mar. 31, 2023	$ 65	443,919	(362,341)	81,643
Balance (in shares) at Mar. 31, 2023	64,710,444
Issuance of common stock upon exercise of stock options		32	0	32
Issuance of common stock upon exercise of stock options (in shares)	10,173
Issuance of common stock upon vesting of restricted stock units			0
Issuance of common stock upon vesting of restricted stock units (in shares)	19,765
Stock-based compensation		2,499	0	2,499
Net loss			(23,517)	(23,517)
Balance at Jun. 30, 2023	$ 65	446,450	(385,858)	60,657
Balance (in shares) at Jun. 30, 2023	64,740,382
Issuance of common stock upon exercise of stock options		304	0	304
Issuance of common stock upon exercise of stock options (in shares)	79,506
Issuance of common stock upon vesting of restricted stock units			0
Issuance of common stock upon vesting of restricted stock units (in shares)	19,766
Issuance of common stock under employee stock purchase plan		348	0	348
Issuance of common stock under employee stock purchase plan (in shares)	59,641
Stock-based compensation		2,487	0	2,487
Net loss			(15,790)	(15,790)
Balance at Sep. 30, 2023	$ 65	449,589	(401,648)	48,006
Balance (in shares) at Sep. 30, 2023	64,899,295
Balance at Dec. 31, 2023	$ 69	476,322	(429,098)	47,293
Balance (in shares) at Dec. 31, 2023	68,629,575
Issuance of common stock upon exercise of stock options		99	0	99
Issuance of common stock upon exercise of stock options (in shares)	23,247
Issuance of common stock upon vesting of restricted stock units			0
Issuance of common stock upon vesting of restricted stock units (in shares)	383,133
Issuance of common stock under employee stock purchase plan		404	0	404
Issuance of common stock under employee stock purchase plan (in shares)	67,982
Issuance of common stock upon exercise of warrants (in shares)	946
Issuance of common stock upon exercise of warrants			0
Sale of common stock, net	$ 7	74,861	0	74,868
Sale of common stock, net (in shares)	7,182,532
Stock-based compensation		4,524	0	4,524
Net loss			(40,928)	(40,928)
Balance at Mar. 31, 2024	$ 76	556,210	(470,026)	86,260
Balance (in shares) at Mar. 31, 2024	76,287,415
Balance at Dec. 31, 2023	$ 69	476,322	(429,098)	$ 47,293
Balance (in shares) at Dec. 31, 2023	68,629,575
Issuance of common stock upon exercise of stock options (in shares)				351,653
Net loss				$ (92,025)
Balance at Sep. 30, 2024	$ 85	631,556	(521,123)	110,518
Balance (in shares) at Sep. 30, 2024	84,545,409
Balance at Mar. 31, 2024	$ 76	556,210	(470,026)	86,260
Balance (in shares) at Mar. 31, 2024	76,287,415
Issuance of common stock upon exercise of stock options		32	0	32
Issuance of common stock upon exercise of stock options (in shares)	10,686
Issuance of common stock upon vesting of restricted stock units			0
Issuance of common stock upon vesting of restricted stock units (in shares)	116,447
Sale of common stock, net			0
Stock-based compensation		4,372	0	4,372
Net loss			(27,942)	(27,942)
Balance at Jun. 30, 2024	$ 76	560,614	(497,968)	62,722
Balance (in shares) at Jun. 30, 2024	76,414,548
Issuance of common stock upon exercise of stock options	$ 1	1,548	0	1,549
Issuance of common stock upon exercise of stock options (in shares)	317,720
Issuance of common stock upon vesting of restricted stock units			0
Issuance of common stock upon vesting of restricted stock units (in shares)	116,247
Issuance of common stock under employee stock purchase plan		844	0	844
Issuance of common stock under employee stock purchase plan (in shares)	104,413
Issuance of common stock upon exercise of warrants (in shares)	8,212
Issuance of common stock upon exercise of warrants			0
Sale of common stock, net	$ 8	63,669	0	63,677
Sale of common stock, net (in shares)	7,584,269
Stock-based compensation		4,881	0	4,881
Net loss			(23,155)	(23,155)
Balance at Sep. 30, 2024	$ 85	$ 631,556	$ (521,123)	$ 110,518
Balance (in shares) at Sep. 30, 2024	84,545,409

Leases

9 Months Ended

Sep. 30, 2024

Leases

Leases

11. Leases

Operating Leases

We are party to a non-cancelable operating lease for our laboratory and office space in Morrisville, North Carolina. The lease expires on October 31, 2026 with an option to extend for an additional period of five years with appropriate notice. We have not included the optional extension period in the measurement of lease liabilities because it is not reasonably certain that we will exercise the option to extend. The payments under this lease are subject to escalation clauses. Operating lease cost is allocated between research and development and general and administrative expenses based on the usage of the leased facilities. The related right-of-use assets are amortized on a straight-line basis over the lesser of the lease term or the estimated useful life of the asset.

Finance Leases

We lease specialized laboratory equipment under finance leases. We do not have access to certain inputs used by our lessors to calculate the rate implicit in our finance leases and, as such, use our estimated incremental borrowing rate at the time of lease inception for the discount rate applied to our finance leases. The incremental borrowing rate used on finance leases was 6.5%. Certain finance leases also include options to purchase the leased property. We recognize all such purchase options as part of our right-of-use assets and lease liabilities if we are reasonably certain that such purchase options will be exercised.

Lease Balances, Costs, and Future Minimum Payments

Leases with an initial term of 12 months or less are not recorded on the balance sheet. As of September 30, 2024, we have not entered into any short-term leases. For lease agreements entered into or reassessed after the adoption of ASC 842 Leases, we combine lease and non-lease components, if any. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Our lease cost is reflected in the accompanying condensed statements of operations and comprehensive loss as follows:


		Three Months Ended September 30,				Nine Months Ended September 30,
	Classification	2024		2023		2024		2023
Operating lease cost:
Fixed lease cost	Research and development	$	177	$	175	$	527	$	527
Fixed lease cost	General and administrative		20		20		59		59
Finance lease cost:
Amortization of lease assets	Research and development		22		22		67		74
Interest on lease liabilities	Interest expense		2		3		6		13
Total Lease Cost		$	221	$	220	$	659	$	673

The weighted average remaining lease term and discount rates as of September 30, 2024 were as follows:


Weighted average remaining lease term (years):
Operating leases	2.1
Finance leases	0.5
Weighted average discount rate:
Operating leases	10.3	%
Finance leases	6.5	%

The discount rate for leases was estimated based upon market rates of collateralized loan obligations of comparable companies on comparable terms at the time of lease inception.

The future minimum lease payments as of September 30, 2024 were as follows:


	Operating		Finance
Year ending December 31:	Leases		Leases		Total
2024 (three months remaining)	$	338	$	29	$	367
2025		1,370		64		1,434
2026		1,169		—		1,169
Total minimum lease payments		2,877		93		2,970
Less: interest		(278)		(2)		(280)
Present value of lease liabilities	$	2,599	$	91	$	2,690

Commitments and Contingencies (Details) - USD ($) $ in Thousands		1 Months Ended	9 Months Ended
	Jul. 14, 2023	Jun. 30, 2023	Sep. 30, 2024
Non-cancelable commitments for product manufacturing and supply costs			$ 14,700
Pharmosa License Agreement
Upfront license fee to be paid		$ 10,000
Accrued additional upfront license fee		3,500
Maximum potential development milestone payments		37,750
Milestone payments Pharmosa is to receive per terms of the license agreement		10,000
Pharmosa License Agreement \| North America
Maximum potential sales milestones		185,000
Pharmosa License Agreement \| Other then North America
Maximum potential sales milestones		$ 150,000
Chasm Technologies
Maximum Net Sales Threshold As Basis For Payment Of Future Contingent Royalties			1,500
Net sales earned relating to payment of future contingent royalties			200
Agreement With LGM Pharma, LLC
Purchase Commitment, Remaining Minimum Amount Committed			$ 2,700
Expiration term of agreement			5 years
Amended and Restated Commercial Manufacturing Services and Supply Agreement with Lonza Tampa LLC
Initial term	5 years
Termination term for FDA rejection	60 days
Termination term for FDA delay	120 days
Percentage of reimburse	50.00%
Aggregate exceed	$ 2,500
Term of submission	24 months
Initial term	12 months

Leases - Remaining Lease Term and Discount Rates (Details)	Sep. 30, 2024
Leases
Weighted average remaining lease term, Operating leases	2 years 1 month 6 days
Weighted average remaining lease term, Finance leases	6 months
Weighted average discount rate, Operating leases	10.30%
Weighted average discount rate, Finance leases	6.50%

Contract Acquisition Costs and Intangible Asset - Summary (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Contract Acquisition Costs and Intangible Asset
Contract acquisition costs, Gross Carrying Amount	$ 12,980	$ 12,980
Contract acquisition costs, Accumulated Amortization	(5,547)	(5,058)
Contract acquisition costs, Net Carrying Amount	7,433	7,922
Intangible asset, Gross Carrying Amount	5,620	5,620
Intangible asset, Accumulated Amortization	(2,401)	(2,190)
Intangible asset, Net Carrying Amount	$ 3,219	$ 3,430

Leases - Other (Details)	9 Months Ended
Leases - Other (Details)	Sep. 30, 2024
Leases
Lessee, Finance Lease, Discount Rate	6.50%
Renewal term	5 years
Lessee, Operating Lease, Existence of Option to Extend [true false]	true

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accrued Expenses and Other Current Liabilities
Accrued compensation	$ 8,488	$ 8,544
Accrued research and development expenses	2,381	2,902
Accrued inventory costs	1,916
Accrued other expenses	4,254	1,954
Total accrued expenses and other current liabilities	$ 17,039	$ 13,400

Leases - Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases - Cost (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Leases
Total Lease Cost	$ 221	$ 220	$ 659	$ 673
Research and development
Leases
Fixed lease cost	177	175	527	527
Amortization of lease assets	22	22	67	74
General and administrative
Leases
Fixed lease cost	20	20	59	59
Interest Expense
Leases
Interest on lease liabilities	$ 2	$ 3	$ 6	$ 13

Legal Proceedings (Details) - Liquidia PAH and Sandoz - USD ($) $ in Thousands		1 Months Ended
	Nov. 01, 2024	Apr. 30, 2021
UTC and Smiths Medical Litigation \| Pending Litigation
Legal Proceedings
Proceeds from Legal Settlements		$ 4,250
Breach of contract claim
Legal Proceedings
Judgement amount awarded from other party	$ 70,600

Basis of Presentation, Significant Accounting Policies and Fair Value Measurements - Other (Details)		9 Months Ended	12 Months Ended
	Jul. 01, 2024 USD ($)	Sep. 30, 2024 USD ($) customer segment	Dec. 31, 2023 USD ($) customer
Number of operating segments \| segment		1
Inventory, Capitalized Cost		$ 7,400,000	$ 0
Impairment of long-lived assets		$ 0
Number of reporting units		1
Impairment of goodwill	$ 0
Credit Concentration Risk \| Accounts Receivable \| Customer One
Number of customers \| customer		1	1
Concentration risk, percentage		96.00%	99.00%

Stock-Based Compensation - Unamortized Compensation Expense (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Employee Stock Option
Unamortized Expense	$ 9,789
Weighted Average Remaining Recognition Period (Years)	1 year 7 months 6 days
Restricted Stock Units
Unamortized Expense	$ 26,124
Weighted Average Remaining Recognition Period (Years)	2 years 6 months

Revenue Interest Financing Payable - Expected Annual Payments (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Revenue Interest Financing Payable
2024 (three months remaining)	$ 2,122
2025	18,017
2026	52,724
2027	32,962
2028	32,962
Thereafter	31,828
Total	$ 170,615

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (23,155)	$ (27,942)	$ (40,928)	$ (15,790)	$ (23,517)	$ (11,745)	$ (92,025)	$ (51,052)

Condensed Consolidated Balance Sheets (unaudited) (Parentheticals) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Condensed Consolidated Balance Sheets (unaudited)
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	115,000,000	100,000,000
Common stock, shares issued (in shares)	84,545,409	68,629,575
Common stock, shares outstanding (in shares)	84,545,409	68,629,575

Stock-Based Compensation - Restricted Stock Units (Details) - Restricted Stock Units	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Unvested, number (in shares) \| shares	1,657,978
Unvested , weighted average grant date fair value (in dollars per share) \| $ / shares	$ 6.41
Granted, number (in shares) \| shares	2,146,517
Granted , weighted average grant date fair value (in dollars per share) \| $ / shares	$ 12.57
Vested , number (in shares) \| shares	(615,827)
Vested , weighted average grant date fair value (in dollars per share) \| $ / shares	$ 6.48
Forfeited, number (in shares) \| shares	(94,047)
Forfeited , weighted average grant date fair value (in dollars per share) \| $ / shares	$ 7.52
Unvested , number (in shares) \| shares	3,094,621
Unvested , weighted average grant date fair value (in dollars per share) \| $ / shares	$ 10.64

Basis of Presentation, Significant Accounting Policies and Fair Value Measurements - Fair Value of Financial Assets and Financial Liabilities (Details) - Money market funds (cash equivalents) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Reported Value Measurement
Fair Value of Financial Instruments
Money market funds	$ 198,565	$ 79,912
Fair Value, Inputs, Level 1 \| Estimate of Fair Value Measurement
Fair Value of Financial Instruments
Money market funds	$ 198,565	$ 79,912

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Stock-Based Compensation - Fair Value of Stock Options Granted and Purchase Rights Issued under the ESPP (Details) - $ / shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Weighted average fair value for options granted (in dollars per share)	$ 9.84	$ 5.09
Employee Stock Purchase Plan \| Employee Stock Option
Expected dividend yield
Risk-free interest rate, minimum		3.46%
Risk-free interest rate, maximum		4.62%
Risk-free interest rate	3.98%
Expected Volatility, minimum		91.00%
Expected Volatility, maximum		95.00%
Expected volatility	90.00%
Expected life (years)	6 years 1 month 6 days
Employee Stock Purchase Plan \| Employee Stock Option \| Minimum
Expected life (years)		5 years 9 months 18 days
Employee Stock Purchase Plan \| Employee Stock Option \| Maximum
Expected life (years)		6 years 1 month 6 days
Employee Stock Purchase Plan \| Employee Purchase Rights
Expected dividend yield
Risk-free interest rate, minimum	4.80%	5.20%
Risk-free interest rate, maximum	5.27%	5.47%
Expected Volatility, minimum	62.00%	60.00%
Expected Volatility, maximum	72.00%	64.00%
Expected life (years)	6 months	6 months

Indemnification Asset with Related Party and Litigation Finance Payable (Details)	Oct. 30, 2024
PBM
Indemnification Asset with Related Party and Litigation Finance Payable
Major stockholder ownership percentage of Liquidia Corporation Common Stock	7.90%

Inventory (Details) $ in Thousands	9 Months Ended
Inventory (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Inventory
Raw materials	$ 2,607
Work in process	4,835
Inventory	7,442
Recognized as: Inventory	38
Capitalized costs	7,400
Other assets
Inventory
Recognized as: Other assets	$ 7,404

Revenue From Contracts With Customers (Details) - Sandoz - USD ($) $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Aug. 31, 2018	Sep. 30, 2024	Sep. 30, 2024
Promotion Agreement, Payment	$ 20.0
Contract with Customer, Refund Liability		$ 0.5	$ 0.5
Percentage of Revenue from Promotion Agreement		98.00%	98.00%

Revenue Interest Financing Payable - Summary (Details) - USD ($) $ in Thousands				1 Months Ended	3 Months Ended		8 Months Ended	9 Months Ended		12 Months Ended
	Sep. 12, 2024	Jan. 05, 2024	Jan. 04, 2024	Sep. 30, 2024	Sep. 30, 2024	Mar. 31, 2024	Sep. 11, 2024	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Revenue Interest Financing Payable
Beginning balance	$ 119,515	$ 71,117	$ 46,033	$ 112,300		$ 46,033	$ 82,600	$ 46,033
Second tranche funding, net of fees			24,975				32,485
Loss on extinguishment	(7,215)	11,483			$ 7,215	$ (11,500)		(4,268)	$ (2,311)	$ (2,300)
Accretion			107	844			7,161
Amortization of issuance costs			2
Payments							(2,731)	(2,731)	$ (1,000)
Ending balance	$ 112,300	$ 82,600	$ 71,117	113,144	113,144		$ 119,515	113,144		46,033
Less: current portion of revenue interest financing payable				(13,252)	(13,252)			(13,252)		(2,615)
Long-term portion of revenue interest financing payable				$ 99,892	$ 99,892			$ 99,892		$ 43,418

Property, Plant, and Equipment - Schedule of Property, plant and equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Total property, plant and equipment	$ 23,718	$ 19,794
Accumulated depreciation and amortization	(15,934)	(15,314)
Property, plant and equipment, net	7,784	4,480
Lab and build-to-suit equipment
Total property, plant and equipment	6,953	6,834
Office equipment
Total property, plant and equipment	19	19
Furniture and fixtures
Total property, plant and equipment	241	241
Computer and other equipment
Total property, plant and equipment	740	487
Leasehold improvements
Total property, plant and equipment	11,450	11,409
Construction-in-progress
Total property, plant and equipment	$ 4,315	$ 804