SEC Comment Letter 0000000000-24-012620 to Evolus, Inc. (EOLS) (CIK 0001570562) (EOLS)
Evolus, Inc. (EOLS) (CIK 0001570562)
Date: Nov. 14, 2024 · CIK: 0001570562 · Accession: 0000000000-24-012620
AI Filing Summary & Sentiment
File numbers found in text: 001-38381
Letter
November 14, 2024 Sandra Beaver Chief Financial Officer Evolus, Inc. 520 Newport Center Dr. Suite 1200 Newport Beach, CA 92660 Re:Evolus, Inc. Form 10-K for Fiscal Year Ended December 31, 2023 Form 8-K filed on November 6, 2024 File No. 001-38381 Dear Sandra Beaver: We have limited our review of your filing to the financial statements and related disclosures and have the following comments. Please respond to this letter within ten business days by providing the requested information or advise us as soon as possible when you will respond. If you do not believe a comment applies to your facts and circumstances, please tell us why in your response. After reviewing your response to this letter, we may have additional comments.
November 14, 2024 Page 2 Form 10-K for Fiscal Year Ended December 31, 2023 Item 8. Consolidated Financial Statements and Supplementary Data. Note 2. Basis of Presentation and Summary of Significant Accounting Policies Inventories , page 73 1.We note your disclosure that you determine your inventory cost based upon your estimated amount payable to your supplier after accounting for any reimbursement receivable pursuant to the Daewoong Settlement Agreement using the first-in, first- out method with prioritization of the items with the earliest expiration dates. We note similar disclosures within your June 30, 2024 Form 10-Q whereby you determine cost using the first-in, first-out method with prioritization of the items with the earliest expiration dates. Please tell us and revise future filings to explain in more detail how your accounting policy, including the prioritization of items based on expiration dates, complies with the guidance in ASC 330-10-30 and 35. Form 8-K filed on November 6, 2024 Exhibit 99.1, page 9 2.We note that you present operating expenses that exclude product cost of sales (excluding amortization of intangible assets) as a non-GAAP measure. Please tell us how you considered the guidance in Question 100.01 the Compliance and Disclosure Interpretations for Non-GAAP Financial Measures since product cost of sales are normal, recurring, cash operating expenses necessary to operate your business. In closing, we remind you that the company and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or absence of action by the staff. Please contact Tara Harkins at 202-551-3639 or Lynn Dicker at 202-551-3616 with any questions. Sincerely, Division of Corporation Finance Office of Life Sciences
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November 14, 2024
Sandra Beaver
Chief Financial Officer
Evolus, Inc.
520 Newport Center Dr.
Suite 1200
Newport Beach, CA 92660
Re:Evolus, Inc.
Form 10-K for Fiscal Year Ended December 31, 2023
Form 8-K filed on November 6, 2024
File No. 001-38381
Dear Sandra Beaver:
We have limited our review of your filing to the financial statements and related
disclosures and have the following comments.
Please respond to this letter within ten business days by providing the requested
information or advise us as soon as possible when you will respond. If you do not believe a
comment applies to your facts and circumstances, please tell us why in your response.
After reviewing your response to this letter, we may have additional comments.
November 14, 2024
Page 2
Form 10-K for Fiscal Year Ended December 31, 2023
Item 8. Consolidated Financial Statements and Supplementary Data.
Note 2. Basis of Presentation and Summary of Significant Accounting Policies
Inventories , page 73
1.We note your disclosure that you determine your inventory cost based upon your
estimated amount payable to your supplier after accounting for any reimbursement
receivable pursuant to the Daewoong Settlement Agreement using the first-in, first-
out method with prioritization of the items with the earliest expiration dates. We note
similar disclosures within your June 30, 2024 Form 10-Q whereby you determine cost
using the first-in, first-out method with prioritization of the items with the earliest
expiration dates. Please tell us and revise future filings to explain in more detail how
your accounting policy, including the prioritization of items based on expiration
dates, complies with the guidance in ASC 330-10-30 and 35.
Form 8-K filed on November 6, 2024
Exhibit 99.1, page 9
2.We note that you present operating expenses that exclude product cost of sales
(excluding amortization of intangible assets) as a non-GAAP measure. Please tell us
how you considered the guidance in Question 100.01 the Compliance and Disclosure
Interpretations for Non-GAAP Financial Measures since product cost of sales are
normal, recurring, cash operating expenses necessary to operate your business.
In closing, we remind you that the company and its management are responsible for
the accuracy and adequacy of their disclosures, notwithstanding any review, comments,
action or absence of action by the staff.
Please contact Tara Harkins at 202-551-3639 or Lynn Dicker at 202-551-3616 with
any questions.
Sincerely,
Division of Corporation Finance
Office of Life Sciences