Quarterly report pursuant to Section 13 or 15(d)

Significant Accounting Policies (Tables)

v3.20.1
Significant Accounting Policies (Tables)
3 Months Ended
Dec. 31, 2019
Significant Accounting Policies  
Schedule of consideration paid for the license right

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

 

Schedule of key assumptions used to estimate the fair value of stock options granted

 

 

 

 

    

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

 

 —

 

Summary of effects of the restatement adjustments on affected line items

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

 

Schedule of fair value hierarchy for its warrant liabilities measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Fair Value Measurements 

 

 

as of December 31, 2019

 

    

(Level 1)

    

(Level 2)

    

(Level 3)

    

Total

Liabilities

 

 

  

 

 

  

 

 

  

 

 

  

Warrant liabilities

 

$

 —

 

$

 —

 

$

1,190,477

 

$

1,190,477

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements 

 

 

as of September 30, 2019

 

    

(Level 1)

    

(Level 2)

    

(Level 3)

    

 Total  

Liabilities

 

 

  

 

 

  

 

 

  

 

 

 

Warrant liabilities

 

$

 —

 

$

 —

 

$

496,343

 

$

496,343

 

Schedule of assumptions were used in determining the fair value of the warrant liabilities

 

 

 

 

    

 

 

 

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

 

 —

 

Schedule of change in fair value of the warrant liabilities

 

 

 

 

Fair value as of September 30, 2019

    

$

496,343

Change in fair value

 

 

694,134

Fair value as of December 31, 2019

 

$

1,190,477

 

Schedule of anti dilutive securities excluded from the computation of diluted weighted average shares

 

 

 

 

 

 

 

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