3.  Liquidity

The Company has had no revenues from product sales and has incurred operating losses since inception. As of March 31, 2021, the Company had $24.2 million in cash and cash equivalents and during the six months ended March 31, 2021, incurred a loss from operations of $10.6 million and used $7.3 million of cash in operating activities.

The Company has historically funded its operations primarily through the sale of common stock. On April 26, 2021, the Company closed on an underwritten public offering of you shares of its common stock (inclusive of 1,200,000 shares that were sold pursuant to the underwriters' full exercise of their option to purchase additional shares of the Company's common stock), at a price to the public of $5.00 per share. The Company expects that the net proceeds from the offering will be approximately $42.6 million, after deducting the underwriting discounts and commissions and other estimated offering expenses payable by the Company.

The Company expects to continue to incur significant operating losses for the foreseeable future and may never become profitable. As a result, the Company will likely need to raise additional capital through one or more of the following: issuance of additional debt or equity, or complete a licensing transaction for one or more of the Company’s pipeline assets. Management believes that it has sufficient working capital on hand to fund operations through at least the next twelve months from the date these unaudited condensed consolidated financial statements were available to be issued. There can be no assurance that the Company will be successful in acquiring additional funding, that the Company's projections of its future working capital needs will prove accurate, or that any additional funding would be sufficient to continue operations in future years.