NeuBase Therapeutics, Inc. Quarterly report pursuant to Section 13 or 15(d)

Significant Accounting Policies (Tables)

3 Months Ended

Dec. 31, 2019

The consideration paid for the license right is as follows:


Cash consideration	$	54,000
Acquisition costs		43,463
Fair value of common stock		844,600
Fair value of warrant liability issued		104,902
Total consideration	$	1,046,965


		Three Months Ended
		December 31,
		2018
Expected term of options (years)		5.5-6.0
Expected common stock price volatility		76%
Risk-free interest rate		2.5%
Expected dividend yield		—

Statement of Operations


	For the Three Months Ended December 31, 2018
	As Previously Reported		Adjustments		As Restated

General and administrative expenses	$	620,692	$	(198,682)	$	422,010
Research and development expenses		54,459		(49,583)		4,876
Research and development expenses- license acquired		—		1,046,965		1,046,965
Total operating expenses		675,151		798,700		1,473,851
Loss from operations		(675,151)		(798,700)		(1,473,851)
Interest expense		(4,521)		(10,116)		(14,637)
Total other expenses		(4,521)		(10,116)		(14,637)
Net loss	$	(679,672)	$	(808,816)	$	(1,488,488)
Basic and diluted loss per common share (1)		(0.13)			$	(0.25)
Weighted average shares outstanding (1)		5,315,870				5,863,333

(1) As previously reported, basic and diluted loss per common share has been adjusted to reflect the Ohr Acquisition.

Balance Sheet


	December 31, 2018
	As Previously Reported		Adjustments		As Restated
Assets
Intangible assets, net	$	1,488,301	$	(1,488,301)	$	—
Total assets		1,625,491		(1,488,301)		137,190
Liabilities				—
Accounts payable and accrued expenses		164,667		502		165,169
Warrant liabilities		163,356		(58,454)		104,902
Convertible notes payable, net		250,000		9,614		259,614
Total liabilities		578,023		(48,338)		529,685
Stockholders’ equity (deficit)				—
Additional paid-in capital (1)		1,768,659		(631,147)		1,137,512
Accumulated deficit		(721,624)		(808,816)		(1,530,440)
Total stockholders’ equity (deficit)		1,047,468		(1,439,963)		(392,495)
Total liabilities and stockholders’ equity (deficit)	$	1,625,491	$	(1,488,301)	$	137,190

(1) As previously reported, additional paid-in capital has been adjusted to reflect the Ohr Acquisition.

Statement of Cash Flows


	For the Three Months Ended December 31, 2018
	As Previously
	Reported		Adjustments		As Restated
Cash flows from operating activities:
Net loss	$	(679,672)	$	(808,816)	$	(1,488,488)
Adjustments to reconcile net loss to net cash used in operating activities
Stock-based compensation		444,105		(150,802)		293,303
Research and development expense - license acquired		—		1,046,965		1,046,965
Non-cash amortization on convertible notes		—		9,614		9,614
Non-cash interest expense on convertible notes		—		5,023		5,023
Changes in operating assets and liabilities
Accounts payable and accrued expenses		123,170		(4,521)		118,649
Other current assets		—		1		1
Net cash used in operating activities		(112,397)		97,464		(14,933)
Cash flows from investing activities
Payment of transaction costs for license acquired		—		(43,463)		(43,463)
Cash paid for license acquired		—		(54,000)		(54,000)
Net cash used in investing activities		—		(97,463)		(97,463)
Cash flows from financing activities
Repurchase of common stock		(14)		—		(14)
Proceeds from stock subscription		1		(1)		—
Net used in financing activities		(13)		(1)		(14)
Net decrease in cash and cash equivalents		(112,410)		—		(112,410)
Cash and cash equivalents, beginning of period		249,600		—		249,600
Cash and cash equivalents, end of period	$	137,190		—	$	137,190

Non-cash investing and financing activities:
Common stock for research and development expense-license acquired	$	1,324,945	$	(480,345)	$	844,600
Fair value of warrant liability issued for research and development expense- license acquired	$	163,356	$	(58,454)	$	104,902



		As of
		December 31,
		2019
Common stock price volatility		84.9% - 86.2%
Risk-free interest rate		1.58% - 1.63%
Remaining contractual term (years)		2.0 - 2.3
Expected dividend yield		—


	As of December 31,
	2019	2018
Common stock purchase options	6,466,966	3,337,406
Unvested restricted stock	5,000	—
Common stock purchase warrants	715,939	101,847
Convertible notes	—	218,723
	7,187,905	3,657,976