| Delaware (State or other jurisdiction of incorporation or organization) | | | 2834 (Primary Standard Industrial Classification Code Number) | | | 85-0870387 (I.R.S. Employer Identification No.) | |
| Copies to: | | |||
| Dechert LLP New York, Telephone: (212) | | | Telephone: | |
| Large accelerated filer ☐ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☒ | | | Smaller reporting company ☒ | |
| | | | Emerging growth company ☒ | |
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Title of Each Class of Securities to be Registered | | | Proposed Maximum Aggregate Offering Price(1) | | | Amount of Registration Fee | | |||
Common Stock, $0.0001 par value per share(2) | | | $17,250,000 | | | | $ | 2,239.05 | | |
Underwriter’s warrant(3) | | | — | | | | | | | |
Common Stock underlying underwriter’s warrant(4) | | | $1,207,500 | | | | $ | 156.73 | | |
Total | | | $18,457,500 | | | | $ | 2,395.78(5) | | |
| | | Per Share | | | Total | | ||||||
Initial public offering price | | | | $ | | | | | $ | | | ||
Underwriting discounts and commissions(1) | | | | $ | | | | | $ | | | ||
Proceeds, before expenses, to us | | | | $ | | | | | $ | | |
Craft Capital Management LLC |
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| | | | F-1 | | |
| | | For the Six Months Ended June 30, 2020 | | | For the Six Months Ended June 30, 2019 | | | For the Year Ended December 31, 2019 | | | For the Period from April 5, 2018 (Inception) through December 31, 2018 | | ||||||||||||
Statements of Operations Data | | | | | | | | | | | | | | | | | | | | | | | | | |
General and adminsitrative expense | | | | $ | 1,532,217 | | | | | $ | 36,915 | | | | | $ | 114,496 | | | | | $ | 12,342 | | |
Stock-based compensation | | | | | 955,344 | | | | | | — | | | | | | — | | | | | | — | | |
Research and development expense | | | | | 269,947 | | | | | | 215,357 | | | | | | 484,113 | | | | | | 204,161 | | |
Research and development expense – license acquired | | | | | — | | | | | | — | | | | | | — | | | | | | 5,776 | | |
Net loss | | | | $ | (1,802,164) | | | | | $ | (252,272) | | | | | $ | 598,609 | | | | | $ | 222,279 | | |
|
| | | 6/30/2020 | | | 6/20/2019 | | | 12/31/2019 | | | 12/31/2018 | | ||||||||||||
Balance Sheet Data | | | | | | ||||||||||||||||||||
Cash | | | | $ | 26,865 | | | | | $ | 40,459 | | | | | $ | 24,947 | | | | | $ | 9,322 | | |
Total assets | | | | | 26,865 | | | | | | 40,459 | | | | | | 24,947 | | | | | | 9,322 | | |
Working capital (deficit) | | | | | (374,365) | | | | | | 6,742 | | | | | | (98,301) | | | | | | 2,721 | | |
Temporary equity(1) | | | | | 2,808,148 | | | | | | 501,193 | | | | | | — | | | | | | 232,096 | | |
Accumulated deficit | | | | | (2,685,434) | | | | | | (494,451) | | | | | | (863,828) | | | | | | (229,375) | | |
Total members’ deficit | | | | | (3,182,513) | | | | | | (494,451) | | | | | | (863,828) | | | | | | (229,375) | | |
| | | Year ended December 31, | | | Three Months Ended March 31, | | ||||||||||||||||||
Statements of Operations Data | | | 2021 | | | 2020 | | | 2022 | | | 2021 | | ||||||||||||
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
General and administrative expense | | | | $ | 4,973,245 | | | | | $ | 4,629,070 | | | | | $ | 933,817 | | | | | $ | 1,286,992 | | |
Research and development expense | | | | | 2,224,555 | | | | | | 936,776 | | | | | | 1,070,704 | | | | | | 427,995 | | |
Loss from operations | | | | $ | 7,197,800 | | | | | $ | 5,565,846 | | | | | $ | 2,004,521 | | | | | $ | 1,714,947 | | |
Total other income (expense) | | | | | (3,031,171) | | | | | | (2,260,162) | | | | | $ | 3,867,983 | | | | | | (5,505,304) | | |
Net income (loss) | | | | $ | (10,228,971) | | | | | $ | (7,826,008) | | | | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Net income (loss) attributable to common stockholders, basic and diluted | | | | $ | 10,228,971 | | | | | $ | 9,297,872 | | | | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Basic weighted average number of shares outstanding | | | | | 6,666,005 | | | | | | 5,775,898 | | | | | | 6,913,492 | | | | | | 5,909,793 | | |
Diluted weighted average number of shares outstanding | | | | | 6,666,005 | | | | | | 5,775,898 | | | | | | 9,120,412 | | | | | | 5,909,793 | | |
Net income (loss) per share attributable to common stockholders, basic | | | | $ | (1.53) | | | | | $ | (1.61) | | | | | $ | 0.22 | | | | | $ | (1.22) | | |
Net income (loss) per share attributable to common stockholders, diluted | | | | $ | (1.53) | | | | | $ | (1.61) | | | | | $ | 0.16 | | | | | $ | (1.22) | | |
| | | Actual | | | Pro Forma(1) | | | Pro Forma as Adjusted(2) | | |||||||||
Balance Sheet Data as of March 31, 2022 (unaudited) | | | | | | | | | | | | | | | | | | | |
Cash | | | | $ | 49,383 | | | | | $ | | | | | | $ | | | |
Total assets | | | | | 540,919 | | | | | | | | | | | | | | |
Working capital (deficit)(3) | | | | | (8,555,743) | | | | | | | | | | | | | | |
Preferred stock | | | | | 270 | | | | | | | | | | | | | | |
Common stock | | | | | 691 | | | | | | | | | | | | | | |
Additional paid-in capital | | | | | 9,009,619 | | | | | | | | | | | | | | |
Accumulated deficit | | | | | (17,074,787) | | | | | | | | | | | | | | |
Total stockholders’ deficit | | | | $ | (8,064,207) | | | | | | | | | | | | | | |
| | As of | | |||||||||||||||||||||||||||||||||||
| | Actual | | Pro Forma | | Pro Forma as Adjusted | | | As of March 31, 2022 (unaudited) | | ||||||||||||||||||||||||||||
| | (unaudited) | | | Actual | | Pro Forma | | Pro Forma as Adjusted | | ||||||||||||||||||||||||||||
| | (in thousands, except share and per share data) | | | (in thousands, except share and per share data) | | ||||||||||||||||||||||||||||||||
Cash | | | $ | 27 | | | | $ | 127 | | | | $ | 13,102 | | | | | $ | 49,383 | | | | $ | | | | $ | — | | | |||||||
Preferred shares, 2,696,439 issued and outstanding at June 30, 2020; aggregate liquidation preferences of $2,808,148 as of June 30, 2020 (pro forma and pro forma adjusted) | | | | 2,808 | | | | | — | | | | | — | | | ||||||||||||||||||||||
SAFE liability | | | | 3,190,000 | | | | | | | | | | | | | ||||||||||||||||||||||
Warrant liability | | | | 2,282,719 | | | | | | | | | | | | | ||||||||||||||||||||||
Stockholders’ equity (deficit): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Common units, 5,775,898 shares issued and outstanding (actual); 7,355,555 shares issued and outstanding (pro forma); 9,855,555 issued and outstanding (pro forma as adjusted) | | | | | | | | | | | | | | | | | ||||||||||||||||||||||
Preferred Stock, 2,696,439 issued and outstanding at March 31, 2022; aggregate liquidation preference of $2,808,148 as of March 31, 2022 (actual); none issued and outstanding (pro forma and pro forma adjusted) | | | | 270 | | | | | — | | | | | | | | ||||||||||||||||||||||
Common Stock, 6,913,492 shares issued and outstanding; shares issued and outstanding (pro forma); issued and outstanding (pro forma as adjusted) | | | | 691 | | | | | | | | | | | | | ||||||||||||||||||||||
Additional paid in capital | | | | (497) | | | | | 2,411 | | | | | 15,386 | | | | | | 9,009,619 | | | | | | | | | | | | | ||||||
Accumulated deficit | | | | (2,685) | | | | | (2,686) | | | | | (2,686) | | | | | | (17,074,787) | | | | | | | | | | | | | ||||||
Total stockholders’ equity (deficit) | | | | (3,182) | | | | | (275) | | | | | 12,700 | | | | | | (8,064,207) | | | | | | | | | | | | | ||||||
Total capitalization | | | $ | (3,182) | | | | $ | (275) | | | | $ | 12,700 | | | | | $ | (8,064,207) | | | | $ | | | | $ | | | |
| Assumed initial public offering price per share | | | | $ | 6.00 | | |
| Historical net tangible book value per share as of June 30, 2020 | | | | $ | (0.55) | | |
| Pro forma increase in net tangible book value per share attributable to the conversion of preferred stock and the conversion of the 2020 Notes | | | | $ | 0.51 | | |
| Pro forma net tangible book value per share as of June 30, 2020 | | | | $ | (0.04) | | |
| Pro forma increase in net tangible book value per share attributable to new investors | | | | $ | 1.33 | | |
| Pro forma as adjusted net tangible book value per share after this offering | | | | $ | 1.29 | | |
| Dilution per share to new investors participating in this offering | | | | $ | 4.71 | | |
| Assumed initial public offering price per share | | | | $ | | | |
| Historical net tangible book value per share as of March 31, 2022 | | | | $ | | | |
| Pro forma increase in net tangible book value per share attributable to the Preferred Conversion | | | | $ | | | |
| Pro forma net tangible book value per share as of March 31, 2022 | | | | $ | | | |
| Pro forma increase in net tangible book value per share attributable to new investors | | | | $ | | | |
| Pro forma as adjusted net tangible book value per share after this offering | | | | $ | | | |
| Dilution per share to new investors participating in this offering | | | | $ | | | |
| | Shares Purchased | | Total Consideration | | | Average Price Per Share | | | Shares Purchased | | Total Consideration | | | Average Price Per Share | | |||||||||||||||||||||||||||||||||||||||||||
| | Number | | Percent | | Amount | | Percent | | | Number | | Percent | | Amount | | Percent | | |||||||||||||||||||||||||||||||||||||||||
Existing stockholders | | | | 7,355,555 | | | | | 74.6% | | | | $ | 878,718 | | | | | 5.8% | | | | $ | 0.12 | | | | | | | | % | | | | $ | | | | | | % | | | | $ | | | | ||||||||||
Investors participating in this offering | | | | 2,500,000 | | | | | 25.4% | | | | $ | 15,000,000 | | | | | 94.2% | | | | $ | 6.00 | | | | | | | | % | | | | $ | | | | | | % | | | | $ | | | | ||||||||||
Total | | | | 9,855,555 | | | | | 100% | | | | $ | 15,878,718 | | | | | 100% | | | | $ | 1.61 | | | | | | | | 100% | | | | $ | | | | | | 100% | | | | $ | | | |
| | | Six Months Ended June 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Operating expenses | | | | | | | | | | | | | |
General and administrative | | | | $ | 1,532,218 | | | | | $ | 36,915 | | |
Research and development | | | | | 269,947 | | | | | | 215,357 | | |
Total operating expenses | | | | | 1,802,165 | | | | | | 252,272 | | |
Loss from operations | | | | | (1,802,165) | | | | | | (252,272) | | |
Net loss | | | | $ | (1,802,165) | | | | | $ | (252,272) | | |
| | | Three Months Ended March 31, | | |||||||||
| 2022 | | | 2021 | | ||||||||
Operating expenses | | | | | | | | | | | | | |
General and administrative | | | | $ | 933,817 | | | | | $ | 1,286,992 | | |
Research and development | | | | | 1,070,704 | | | | | | 427,955 | | |
Total operating expenses | | | | | 2,004,521 | | | | | | 1,714,947 | | |
Loss from operations | | | | | (2,004,521) | | | | | | (1,714,947) | | |
Other income (expense), net | | | | | 3,867,983 | | | | | | (5,505,304) | | |
Net income (loss) | | | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
| | | For the Year Ended December 31, 2019 | | | For the Period from April 5, 2018 (Inception) through December 31, 2018 | | ||||||
Operating expenses | | | | | | | | | | | | | |
General and administrative | | | | | 114,496 | | | | | | 12,342 | | |
Research and development | | | | | 484,113 | | | | | | 204,161 | | |
Research and development – license acquired | | | | | — | | | | | | 5,776 | | |
Total operating expenses | | | | | 598,609 | | | | | | 222,279 | | |
Loss from operations | | | | | (598,609) | | | | | | (222,279) | | |
Net loss | | | | $ | (598,609) | | | | | $ | (222,279) | | |
Weighted average number of common shares outstanding, basic and diluted | | | | | 5,775,898 | | | | | | 5,775,898 | | |
Net loss per share, basic and diluted | | | | $ | (0.10) | | | | | $ | (0.04) | | |
|
Outcome | Outcome | | Suramin | | Placebo | | Outcome | | Suramin | | Placebo | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Instruments | | Factor or behaviour | | Time after Treatement (days) | | Difference from baseline (mean ± SD) | | 95% CI | | d(1) | | N | | P(2) | | p(3) | | Difference from baseline (mean ± SD) | | 95% CI | | d(1) | | N | | P(2) | | p(3) | | | Factor or behavior | | Time after Treatment (days) | | Difference from baseline (mean ± SD) | | 95% CI | | d(1) | | N | | P(2) | | P(3) | | Difference from baseline (mean ± SD) | | 95% CI | | d(1) | | N | | P(2) | | p(3) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Primary outcomes | Primary outcomes | | Primary outcomes | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ADOS-2 | | Comparision | | | | 45 | | | -1.6 ± 0.55 | | -2.3 to -0.9 | | | | 2.9 | | | | | 5 | | | | | 0.0028 | | | | | 0.038 | | | -0.4 ± 0.55 | | -1.1 to + 0.28 | | | | 0.7 | | | | | 5 | | | | | 0.18 | | | | | 0.16 | | | | Comparison | | | | 45 | | | -1.6 ± 0.55 | | -2.3 to -0.9 | | | | 2.9 | | | | | 5 | | | | | 0.0028 | | | | | 0.038 | | | -0.4 ± 0.55 | | -1.1 to + 0.28 | | | | 0.7 | | | | | 5 | | | | | 0.18 | | | | | 0.16 | | | ||||||||||||||||||||||||||||
| | Raw | | | | 45 | | | -4.6 ± 1.9 | | -7.0. to -2.2 | | | | 2.4 | | | | | 5 | | | | | 0.0062 | | | | | 0.039 | | | -0.4 ± 1.8 | | -2.7 to +1.9 | | | | 0.22 | | | | | 5 | | | | | 0.65 | | | | | 0.58 | | | | Raw | | | | 45 | | | -4.6 ± 1.9 | | -7.0. to -2.2 | | | | 2.4 | | | | | 5 | | | | | 0.0062 | | | | | 0.039 | | | -0.4 ±���1.8 | | -2.7 to +1.9 | | | | 0.22 | | | | | 5 | | | | | 0.65 | | | | | 0.58 | | | ||||||||||||||||||||||||||||
| | Social | | | | 45 | | | -3.2 ± 1.9 | | -5.6 to -0.8 | | | | 1.7 | | | | | 5 | | | | | 0.020 | | | | | 0.043 | | | 0.0 ± 1.7 | | -2.2 to +2.2 | | | | 0 | | | | | 5 | | | | | 0.99 | | | | | 0.71 | | | | Social | | | | 45 | | | -3.2 ± 1.9 | | -5.6 to -0.8 | | | | 2.4 | | | | | 5 | | | | | 0.020 | | | | | 0.043 | | | 0.0 ± 1.7 | | -2.2 to +2.2 | | | | 0 | | | | | 5 | | | | | 0.99 | | | | | 0.71 | | | ||||||||||||||||||||||||||||
| | Rest/Rep | | | | 45 | | | -1.4 ± 0.89 | | -2.5 to -0.29 | | | | 1.6 | | | | | 5 | | | | | 0.025 | | | | | 0.059 | | | -0.4 ± 2.1 | | -3.0 to +2.2 | | | | 0.19 | | | | | 5 | | | | | 0.69 | | | | | 0.58 | | | | Rest/Rep | | | | 45 | | | -1.4 ± 0.89 | | -2.5 to -0.29 | | | | 1.6 | | | | | 5 | | | | | 0.025 | | | | | 0.059 | | | -0.4 ± 2.1 | | -3.0 to +2.2 | | | | 0.19 | | | | | 5 | | | | | 0.69 | | | | | 0.58 | | | ||||||||||||||||||||||||||||
EOWPVT | | Vocabulary | | | | 45 | | | -4.2 ± -8.3 | | -14.50 to +6.1 | | | | -0.51 | | | | | 5 | | | | | 0.32 | | | | | 0.50 | | | +2.0 ± 4.6 | | -3.8 to +7.8 | | | | 0.43 | | | | | 5 | | | | | 0.39 | | | | | 0.50 | | | | Vocabulary | | | | 45 | | | -4.2 ± -8.3 | | -14.50 to +6.1 | | | | -0.51 | | | | | 5 | | | | | 0.32 | | | | | 0.50 | | | +2.0 ± 4.6 | | -3.8 to +7.8 | | | | 0.43 | | | | | 5 | | | | | 0.39 | | | | | 0.50 | | | ||||||||||||||||||||||||||||
Secondary Outcomes | Secondary Outcomes | | Secondary Outcomes | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ABC | | Stereotypy | | | | 7 | | | -3.6 ± 2.1 | | -6.2 to -1.0 | | | | 1.7 | | | | | 5 | | | | | 0.018 | | | | | 0.043 | | | +0.4 ± 1.9 | | -2.0 to +2.8 | | | | -0.21 | | | | | 5 | | | | | 0.67 | | | | | 0.68 | | | | Stereotypy | | | | 7 | | | 36 ± 2.1 | | -6.2 to -1.0 | | | | 1.7 | | | | | 5 | | | | | 0.018 | | | | | 0.043 | | | +0.4 ± 1.9 | | -2.0 to +2.5 | | | | -0.21 | | | | | 5 | | | | | 0.67 | | | | | 0.68 | | | ||||||||||||||||||||||||||||
| | Stereotypy | | | | 45 | | | -4.0 ± 2.3 | | -6.9 to -1.1 | | | | 1.7 | | | | | 5 | | | | | 0.019 | | | | | 0.042 | | | +1.0 ± 4.3 | | 4.3 to +6.3 | | | | -0.23 | | | | | 5 | | | | | 0.63 | | | | | 0.69 | | | | Stereotypy | | | | 45 | | | -4.0 ± 2.3 | | -6.9 to -1.1 | | | | 1.7 | | | | | 5 | | | | | 0.019 | | | | | 0.042 | | | +1.0 ± 4.3 | | 4.3 to +6.3 | | | | -0.23 | | | | | 5 | | | | | 0.63 | | | | | 0.69 | | | ||||||||||||||||||||||||||||
ATEC | �� | | Total | | | | 7 | | | -10 ± 7.7 | | -20 to -0.46 | | | | 1.3 | | | | | 5 | | | | | 0.044 | | | | | 0.043 | | | +7.2 ± 14 | | -10 to +25 | | | | -0.51 | | | | | 5 | | | | | 0.32 | | | | | 0.35 | | | | Total | | | | 7 | | | -10 ± 7.7 | | -20 to -0.46 | | | | 1.3 | | | | | 5 | | | | | 0.044 | | | | | 0.043 | | | +7.2 ± 14 | | -10 to +25 | | | | -0.51 | | | | | 5 | | | | | 0.32 | | | | | 0.35 | | | |||||||||||||||||||||||||||
| | Language | | | | 7 | | | -2.2 ± 1.5 | | -4.0 to -0.36 | | | | 1.4 | | | | | 5 | | | | | 0.021 | | | | | 0.059 | | | 0.0 ± 4.1 | | -5.0 to +5.0 | | | | 0 | | | | | 5 | | | | | 0.99 | | | | | 0.89 | | | | Language | | | | 7 | | | -2.2 ± 1.5 | | -4.0 to -0.36 | | | | 1.4 | | | | | 5 | | | | | 0.021 | | | | | 0.059 | | | 0.0 ± 4.1 | | -5.0 to +5.0 | | | | 0 | | | | | 5 | | | | | 0.99 | | | | | 0.89 | | | ||||||||||||||||||||||||||||
| | Sociability | | | | 7 | | | -3.6 ± 2.6 | | -6.8 to -0.36 | | | | 1.4 | | | | | 5 | | | | | 0.025 | | | | | 0.063 | | | -0.8 ± 2.8 | | 4.3 to +2.6 | | | | 0.29 | | | | | 5 | | | | | 0.55 | | | | | 0.58 | | | | Sociability | | | | 7 | | | -3.6 ± 2.6 | | -6.8 to -0.36 | | | | 1.4 | | | | | 5 | | | | | 0.025 | | | | | 0.063 | | | -0.8 ± 2.8 | | 4.3 to +2.6 | | | | 0.29 | | | | | 5 | | | | | 0.55 | | | | | 0.58 | | | ||||||||||||||||||||||||||||
| | Language | | | | 45 | | | -2.0 ± 1.4 | | -2.7 to -0.49 | | | | 1.4 | | | | | 5 | | | | | 0.034 | | | | | 0.059 | | | -0.2 ± 2.9 | | -3.8 to +3.4 | | | | 0.07 | | | | | 5 | | | | | 0.88 | | | | | 0.79 | | | | Language | | | | 45 | | | -2.0 ± 1.4 | | -2.7 to -0.49 | | | | 1.4 | | | | | 5 | | | | | 0.034 | | | | | 0.059 | | | -0.2 ± 2.9 | | -3.8 to +3.4 | | | | 0.07 | | | | | 5 | | | | | 0.88 | | | | | 0.79 | | | ||||||||||||||||||||||||||||
CGI | | Overall ASD | | | | 45 | | | -1.8 ± 1.04 | | -3.4 to -0.15 | | | | 1.7 | | | | | 5 | | | | | 0.05 | | | | | n/a | | | 0.0 ± 0.34 | | -0.55 to +0.55 | | | | 0 | | | | | 5 | | | | | 0.99 | | | | | n/a | | | | Overall ASD | | | | 45 | | | -1.8 ± 1.04 | | -3.4 to -0.15 | | | | 1.7 | | | | | 5 | | | | | 0.05 | | | | | n/a | | | 0.0 ± 0.34 | | -0.55 to +0.55 | | | | 0 | | | | | 5 | | | | | 0.99 | | | | | n/a | | | ||||||||||||||||||||||||||||
| | E. Language | | | | 45 | | | -2.0 ± 1.04 | | -3.6 to -0.35 | | | | 1.9 | | | | | 5 | | | | | 0.01 | | | | | n/a | | | 0.0 ± 0.34 | | -0.55 to +0.55 | | | | 0 | | | | | 5 | | | | | 0.99 | | | | | n/a | | | | E. Language | | | | 45 | | | -2.0 ± 1.04 | | -3.6 to -0.35 | | | | 1.9 | | | | | 5 | | | | | 0.01 | | | | | n/a | | | 0.0 ± 0.34 | | -0.55 to +0.55 | | | | 0 | | | | | 5 | | | | | 0.99 | | | | | n/a | | | ||||||||||||||||||||||||||||
| | Social Inter. | | | | 45 | | | -2.0 ± 1.04 | | -3.6 to -0.35 | | | | 1.9 | | | | | 5 | | | | | 0.01 | | | | | n/a | | | 0.0 ± 0.34 | | -0.55 to +0.55 | | | | 0 | | | | | 5 | | | | | 0.99 | | | | | n/a | | | | Social Inter. | | | | 45 | | | -2.0 ± 1.04 | | -3.6 to -0.35 | | | | 1.9 | | | | | 5 | | | | | 0.01 | | | | | n/a | | | 0.0 ± 0.34 | | -0.55 to +0.55 | | | | 0 | | | | | 5 | | | | | 0.99 | | | | | n/a | | | ||||||||||||||||||||||||||||
RBQ | | Total | | | | 45 | | | -3.2 ± 5.8 | | -10.4 to +4.0 | | | | 0.55 | | | | | 5 | | | | | 0.28 | | | | | 0.22 | | | -0.8 ± 3.3 | | -4.9 to 3.3 | | | | 0.24 | | | | | 5 | | | | | 0.62 | | | | | 0.47 | | | | Total | | | | 45 | | | -3.2 ± 5.8 | | -10.4 to +4.0 | | | | 0.55 | | | | | 5 | | | | | 0.28 | | | | | 0.22 | | | -0.8 ± 3.3 | | -4.9 to 3.3 | | | | 0.24 | | | | | 5 | | | | | 0.62 | | | | | 0.47 | | |
Name | | | Age | | | Position(s) | |
Howard J. Weisman | | | | | Chief Executive Officer and Class III Director | | |
Michael Derby | | | | | Executive Chairman of the Board and Class II Director | | |
Zachary Rome | | | | | Chief Operating Officer and Class I Director | | |
Karen LaRochelle | | | | | Class II Director | | |
| | | | Class III | |||
|
| | | Annual Compensation | | | ||||||||||||||
Name and Principal Position | | | Salary | | | Bonus | | | TOTAL | | |||||||||
Howard Weisman Chief Executive Officer | | | | $ | 400,000 | | | | | $ | 158,333 | | | | | $ | 558,333 | | |
Michael Derby Executive Chairman | | | | $ | 325,000 | | | | | $ | 81,250 | | | | | $ | 406,250 | | |
David Hough Former Chief Medical Officer(1) | | | | $ | 253,125 | | | | | $ | 74,375 | | | | | $ | 327,500 | | |
Name | | | Fees Earned or Paid in Cash ($) | | | All Other Compensation ($) | | | Total ($) | | |||||||||
Karen Dawes(1) | | | | | 52,250 | | | | | | — | | | | | | 52,250 | | |
Karen LaRochelle | | | | | 50,000 | | | | | | — | | | | | | 50,000 | | |
Paul Wotton(2) | | | | | 42,500 | | | | | | — | | | | | | 42,500 | | |
Robert F. Apple(3) | | | | | 65,000 | | | | | | — | | | | | | 65,000 | | |
Name of Beneficial Owner(1) | | | Number of Shares Beneficially Owned(2) | | | Percentage Owned Prior to the Offering | | | Percentage Owned After the Offering(3) | | | |||||||||||
5% Stockholders | | | | | | | | | | | | | | | | | | | | | ||
TardiMed Sciences, LLC(4)(7) | | | | | 7,241,745 | | | | | | 98.8% | | | | | | 73.5% | | | | ||
Directors and Executive Officers | | | | | | | | | | | | | | | | | | | | | ||
Howard J. Weisman(5) | | | | | — | | | | | | — | | | | | | — | | | | ||
Joseph Lucchese(6) | | | | | — | | | | | | — | | | | | | — | | | | ||
Michael Derby(7) | | | | | 7,241,745 | | | | | | 98.8 | | | | | | — | | | | ||
Zachary Rome(8) | | | | | 78,124 | | | | | | * | | | | | | — | | | | ||
David Hough, MD(9) | | | | | — | | | | | | — | | | | | | — | | | | ||
Karen Dawes(10) | | | | | — | | | | | | — | | | | | | — | | | | ||
Karen LaRochelle(11) | | | | | — | | | | | | — | | | | | | — | | | | ||
Paul K. Wotton, Ph.D.(12) | | | | | — | | | | | | — | | | | | | — | | | | ||
Robert Apple(13) | | | | | — | | | | | | — | | | | | | — | | | | ||
Directors and Executive Officers as a group (9 persons) | | | | | 7,314,661 | | | | | | 99.7 | | | | | | 74.2 | | | | | |
Name of Beneficial Owner(1) | | | Number of Shares Beneficially Owned(2) | | | Percentage Owned Prior to the Offering | | | Percentage Owned After the Offering(3) | | |||||||||
5% Stockholders | | | | | | | | | | | | | | | | | | | |
TardiMed Sciences, LLC(4) | | | | | 7,241,745 | | | | | | 86.4% | | | | | | % | | |
Blue Cane Partners, LLC(5) | | | | | 825,000 | | | | | | 10.7% | | | | | | % | | |
Directors and Executive Officers | | | | | | | | | | | | | | | | | | | |
Howard J. Weisman | | | | | — | | | | | | — | | | | | | % | | |
Michael Derby(6) | | | | | 7,241,745 | | | | | | 86.4% | | | | | | % | | |
Zachary Rome | | | | | — | | | | | | — | | | | | | % | | |
Karen LaRochelle | | | | | — | | | | | | — | | | | | | % | | |
John F. Coelho | | | | | — | | | | | | — | | | | | | % | | |
Directors and Executive Officers as a group (5 persons) | | | | | 7,241,745 | | | | | | 86.4% | | | | | | % | | |
Name of Beneficial Owner(1) | | | Number of Shares Beneficially Owned(2) | | | Percentage Owned Prior to the Offering | | | Percentage Owned After the Offering(3) | | |||||||||
5% Stockholders | | | | | | | | | | | | | | | | | | | |
TardiMed Sciences, LLC(4) | | | | | 7,241,745 | | | | | | 86.4% | | | | | | % | | |
Blue Cane Partners, LLC(5) | | | | | 825,000 | | | | | | 10.7% | | | | | | % | | |
Directors and Executive Officers | | | | | | | | | | | | | | | | | | | |
Howard J. Weisman | | | | | — | | | | | | — | | | | | | % | | |
Michael Derby(6) | | | | | 7,241,745 | | | | | | 86.4% | | | | | | % | | |
Zachary Rome | | | | | — | | | | | | — | | | | | | % | | |
Karen LaRochelle | | | | | — | | | | | | — | | | | | | % | | |
John F. Coelho | | | | | — | | | | | | — | | | | | | % | | |
Directors and Executive Officers as a group (5 persons) | | | | | 7,241,745 | | | | | | 86.4% | | | | | | % | | |
Name of Beneficial Owner(1) | | | Number of Shares Beneficially Owned(2) | | | Percentage Owned Prior to the Offering | | | Percentage Owned After the Offering(3) | | |||||||||
5% Stockholders | | | | | | | | | | | | | | | | | | | |
TardiMed Sciences, LLC(4) | | | | | 7,241,745 | | | | | | 86.4% | | | | | | % | | |
Blue Cane Partners, LLC(5) | | | | | 825,000 | | | | | | 10.7% | | | | | | % | | |
Directors and Executive Officers | | | | | | | | | | | | | | | | | | | |
Howard J. Weisman | | | | | — | | | | | | — | | | | | | % | | |
Michael Derby(6) | | | | | 7,241,745 | | | | | | 86.4% | | | | | | % | | |
Zachary Rome | | | | | — | | | | | | — | | | | | | % | | |
Karen LaRochelle | | | | | — | | | | | | — | | | | | | % | | |
John F. Coelho | | | | | — | | | | | | — | | | | | | % | | |
Directors and Executive Officers as a group (5 persons) | | | | | 7,241,745 | | | | | | 86.4% | | | | | | % | | |
Date Available for Sale | | | Shares Eligible for Sale | | | Description | |
Date of Prospectus | | | | | Shares sold in the offering that are not subject to a lock-up | | |
90 Days after Date of Prospectus | | | | | Shares saleable under Rules 144 and 701 that are not subject to a lock-up | | |
| | | | Lock-up released; shares saleable under Rules 144 and 701 | |
Underwriter | | | Number of shares of common stock | | | | | |||
| | |||||||||
| | |||||||||
Total: | | | | | | | |
| | | Per Share of Common Stock | | | Total without Exercise of Over-allotment option | | | Total with Exercise of Over-allotment option | | |||||||||
Public offering price | | | | $ | | | | | $ | | | | | $ | | | |||
Underwriting discount(1) | | | | $ | | | | | $ | | | | | $ | | | |||
Net proceeds to us | | | | $ | | | | | $ | | | | | $ | | |
| | | Page No. | | |||
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | |
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | |
| | December 31, | | |||||||||||||||||||||||
| | 2019 | | 2018 | | | December 31, 2021 | | December 31, 2020 | | ||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | ||||
Current assets | | | | | | | | | | | | | | | | | | | | | | | ||||
Cash | | | $ | 24,947 | | | | $ | 9,322 | | | | | $ | 444,087 | | | | $ | 1,123,625 | | | ||||
Total current assets | | | | 24,947 | | | | | 9,322 | | | | | | 444,087 | | | | | 1,123,625 | | | ||||
Deferred offering costs | | | | 204,779 | | | | | — | | | |||||||||||||||
Total assets | | | $ | 24,947 | | | | $ | 9,322 | | | | | $ | 648,866 | | | | $ | 1,123,625 | | | ||||
LIABILITIES, TEMPORARY EQUITY AND MEMBERS’ DEFICIT | | | | | | | | | | | | |||||||||||||||
LIABILITIES, AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | |||||||||||||||
Current liabilities | | | | | | | | | | | | | | | | | | | | | | | ||||
Accounts payable | | | $ | 41,023 | | | | $ | — | | | | | $ | 736,251 | | | | $ | 346,094 | | | ||||
Accounts payable – related party | | | | 15,325 | | | | | 2,454 | | | | | | 750 | | | | | 102,803 | | | ||||
Accrued expenses | | | | 66,900 | | | | | 4,147 | | | | | | 680,026 | | | | | 578,524 | | | ||||
Accrued interest | | | | — | | | | | 55,175 | | | |||||||||||||||
Notes payable, net of discount of $0 and $2,550,780 | | | | — | | | | | 611,641 | | | |||||||||||||||
SAFE liability | | | | 4,824,217 | | | | | — | | | |||||||||||||||
Warrant liability | | | | 4,516,485 | | | | | 4,057,927 | | | |||||||||||||||
Total current liabilities | | | | 123,248 | | | | | 6,601 | | | | | | 10,757,729 | | | | | 5,752,164 | | | ||||
Total liabilities | | | | 123,248 | | | | | 6,601 | | | | | | 10,757,729 | | | | | 5,752,164 | | | ||||
Temporary equity | | | ||||||||||||||||||||||||
Preferred units, 1,445,173 and 450,000 shares issued and outstanding at December 31, 2019 and 2018; liquidation preference of $765,527 and $232,096 and of December 31, 2019 and 2018, respectively | | | | 765,527 | | | | | 232,096 | | | |||||||||||||||
Commitments and contingencies (Note 7) | | | | | | | | | | | | |||||||||||||||
Members’ deficit | | | | | | | | | | | | |||||||||||||||
Commitments and contingencies (Note 10) | | | | | | | | | | | | |||||||||||||||
Stockholders’ deficit | | | | | | | | | | | | |||||||||||||||
Preferred shares, par value $0.0001; 2,696,439 shares authorized; 2,696,439 shares issued and outstanding at December 31, 2021 and 2020, respectively; aggregate liquidation preference of $2,808,148 | | | | 270 | | | | | 270 | | | |||||||||||||||
Common stock, par value $0.0001; 20,000,000 shares authorized at December 31, 2021 and 2020; 6,913,492 and 5,775,898 shares issued and outstanding at December 31, 2021 and 2020, respectively | | | | 691 | | | | | 578 | | | |||||||||||||||
Additional paid-in capital | | | | 8,828,425 | | | | | 4,079,891 | | | |||||||||||||||
Accumulated deficit | | | | (863,828) | | | | | (229,375) | | | | | | (18,938,249) | | | | | (8,709,278) | | | ||||
Total members’ deficit | | | | (863,828) | | | | | (229,375) | | | |||||||||||||||
Total liabilities, temporary equity and members’ deficit | | | $ | 24,947 | | | | $ | 9,322 | | | |||||||||||||||
Total stockholders’ deficit | | | | (10,108,863) | | | | | (4,628,539) | | | |||||||||||||||
Total liabilities, and stockholders’ deficit | | | $ | 648,866 | | | | $ | 1,123,625 | | |
| | Years Ended December 31, | | |||||||||||||||||||||||
| | For the Year Ended December 31, 2019 | | For the Period from April 5, 2018 (Inception) through December 31, 2018 | | | 2021 | | 2020 | | ||||||||||||||||
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | ||||
General and administrative | | | $ | 114,496 | | | | $ | 12,342 | | | | | $ | 4,973,245 | | | | $ | 4,629,070 | | | ||||
Research and development | | | | 484,113 | | | | | 204,161 | | | | | | 2,224,555 | | | | | 936,776 | | | ||||
Research and development – license acquired | | | | — | | | | | 5,776 | | | |||||||||||||||
Total operating expenses | | | | 598,609 | | | | | 222,279 | | | | | | 7,197,800 | | | | | 5,565,846 | | | ||||
Loss from operations | | | | (598,609) | | | | | (222,279) | | | | | | (7,197,800) | | | | | (5,565,846) | | | ||||
Other income (expense): | | | | | | | | | | | | |||||||||||||||
Interest expense | | | | (2,805,856) | | | | | (609,458) | | | |||||||||||||||
Loss on issuance of debt | | | | — | | | | | (53,541) | | | |||||||||||||||
Loss on extinguishment of debt | | | | — | | | | | (23,284) | | | |||||||||||||||
Gain on conversion of notes | | | | 59,890 | | | | | — | | | |||||||||||||||
Change in fair value of SAFE | | | | 175,783 | | | | | — | | | |||||||||||||||
Change in fair value warrant liability | | | | (458,558) | | | | | (1,569,383) | | | |||||||||||||||
Change in fair value of derivative | | | | — | | | | | (4,496) | | | |||||||||||||||
Other income | | | | 2,665 | | | | | — | | | |||||||||||||||
Other expense | | | | (5,095) | | | | | — | | | |||||||||||||||
Total other expense | | | | (3,031,171) | | | | | (2,260,162) | | | |||||||||||||||
Net loss | | | $ | (598,609) | | | | $ | (222,279) | | | | | $ | (10,228,971) | | | | $ | (7,826,008) | | | ||||
Proforma weighted average number of common shares outstanding, basic and diluted | | | | 5,775,898 | | | | | 5,775,898 | | | |||||||||||||||
Proforma net loss per share, basic and diluted | | | $ | (0.10) | | | | $ | (0.04) | | | |||||||||||||||
Less: Accrued preferred unit and stock dividend | | | | — | | | | | (19,442) | | | |||||||||||||||
Less: Deemed dividend – beneficial conversion feature on preferred stock | | | | — | | | | | (1,452,422) | | | |||||||||||||||
Net loss attributable to common stockholders | | | $ | (10,228,971) | | | | $ | (9,297,872) | | | |||||||||||||||
Basic and diluted weighted average number of shares outstanding | | | | 6,666,005 | | | | | 5,775,898 | | | |||||||||||||||
Basic and diluted net loss per share attributable to common stockholders | | | $ | (1.53) | | | | $ | (1.61) | | |
| | | Common Stock | | | Accumulated Deficit | | | Total Members' Deficit | | |||||||||||||||
| | | Units | | | Amount | | ||||||||||||||||||
Balance at April 5, 2018 (Inception) | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Contribution from TardiMed | | | | | 5,775,898 | | | | | | — | | | | | | — | | | | | | | | |
Accrued preferred unit dividend | | | | | — | | | | | | — | | | | | | (7,096) | | | | | | (7,096) | | |
Net loss | | | | | — | | | | | | — | | | | | | (222,279) | | | | | | (222,279) | | |
Balance at December 31, 2018 | | | | | 5,775,898 | | | | | $ | — | | | | | $ | (229,375) | | | | | $ | (229,375) | | |
Accrued preferred unit dividend | | | | | — | | | | | | — | | | | | | (35,844) | | | | | | (35,844) | | |
Net loss | | | | | — | | | | | | — | | | | | | (598,609) | | | | | | (598,609) | | |
Balance at December 31, 2019 | | | | | 5,775,898 | | | | | $ | — | | | | | $ | (863,828) | | | | | $ | (863,828) | | |
| | | Preferred Units | | | | Preferred Stock | | | Common Units | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | |||||||||||||||||||||||||||||||||||||||||||||
| | | Units | | | Amount | | | | Shares | | | Amount | | | Units | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | | | | | 1,516,041 | | | | | $ | 765,527 | | | | | | | — | | | | | | — | | | | | | 5,775,898 | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | (863,828) | | | | | $ | (863,828) | | |
Contribution from TardiMed | | | | | 940,000 | | | | | | 470,000 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Investor contributions | | | | | 100,000 | | | | | | 50,000 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Non-cash contribution from TardiMed | | | | | 72,428 | | | | | | 36,214 | | | | | | | 29,086 | | | | | | 3 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 14,540 | | | | | | — | | | | | | 14,543 | | |
Conversion of preferred units to preferred stock | | | | | (2,667,353) | | | | | | (1,341,183) | | | | | | | 2,667,353 | | | | | | 267 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,340,916 | | | | | | — | | | | | | 1,341,183 | | |
Conversion of common units to common stock | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (5,775,898) | | | | | | — | | | | | | 5,775,898 | | | | | | 578 | | | | | | (578) | | | | | | — | | | | | | — | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,262,093 | | | | | | — | | | | | | 2,262,093 | | |
Accrued preferred unit and stock dividend | | | | | 38,884 | | | | | | 19,442 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (19,442) | | | | | | (19,442) | | |
Beneficial conversion feature in connection with notes payable | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 462,920 | | | | | | — | | | | | | 462,920 | | |
Net loss | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,826,008) | | | | | | (7,826,008) | | |
Balance at December 31, 2020 | | | | | — | | | | | | — | | | | | | | 2,696,439 | | | | | $ | 270 | | | | | | — | | | | | $ | — | | | | | | 5,775,898 | | | | | $ | 578 | | | | | $ | 4,079,891 | | | | | $ | (8,709,278) | | | | | $ | (4,628,539) | | |
Common stock issued in connection with conversion of notes payable | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,137,594 | | | | | | 113 | | | | | | 3,412,669 | | | | | | — | | | | | | 3,412,782 | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,335,865 | | | | | | — | | | | | | 1,335,865 | | |
Net loss | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (10,228,971) | | | | | | (10,228,971) | | |
Balance at December 31, 2021 | | | | | — | | | | | $ | — | | | | | | | 2,696,439 | | | | | $ | 270 | | | | | | — | | | | | $ | — | | | | | | 6,913,492 | | | | | $ | 691 | | | | | $ | 8,828,425 | | | | | $ | (18,938,249) | | | | | $ | (10,108,863) | | |
| | Years ended December 31, | | |||||||||||||||||||||||
| | For the Year Ended December 31, 2019 | | For the Period from April 5, 2018 (Inception) through December 31, 2018 | | | 2021 | | 2020 | | ||||||||||||||||
Cash flows from operating activities | | | | | | | | | | | | | | | | | | | | | | | ||||
Net loss | | | $ | (598,609) | | | | $ | (222,279) | | | | | $ | (10,228,971) | | | | $ | (7,826,008) | | | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | | | | | | | | | | | ||||
Research and development-licenses acquired, expense | | | | — | | | | | 5,776 | | | |||||||||||||||
Stock-based compensation | | | | 1,335,865 | | | | | 2,262,093 | | | |||||||||||||||
Amortization of debt discount | | | | 2,550,780 | | | | | 551,752 | | | |||||||||||||||
Loss on issuance of debt | | | | — | | | | | 53,541 | | | |||||||||||||||
Loss on extinguishment of debt | | | | — | | | | | 23,284 | | | |||||||||||||||
Change in fair value of SAFE | | | | (175,783) | | | | | — | | | |||||||||||||||
Gain on conversion of notes | | | | (59,890) | | | | | — | | | |||||||||||||||
Change in fair value warrant liability | | | | 458,558 | | | | | 1,569,383 | | | |||||||||||||||
Change in fair value of derivative | | | | — | | | | | 4,496 | | | |||||||||||||||
Non-cash interest expense | | | | 255,076 | | | | | — | | | |||||||||||||||
Non-cash contribution from TardiMed | | | | 62,587 | | | | | — | | | | | | — | | | | | 50,757 | | | ||||
Changes in assets and liabilities: | | | | | | | | | | | | | | | | | | | | | | | ||||
Accounts payable | | | | 41,023 | | | | | — | | | | | | 352,277 | | | | | 305,071 | | | ||||
Accounts payable – related party | | | | 12,871 | | | | | 2,454 | | | | | | (102,053) | | | | | 87,478 | | | ||||
Accrued expenses | | | | 62,753 | | | | | 4,147 | | | | | | 101,502 | | | | | 511,624 | | | ||||
Accrued interest | | | | — | | | | | 57,707 | | | |||||||||||||||
Net cash used in operating activities | | | | (419,375) | | | | | (209,902) | | | | | | (5,512,639) | | | | | (2,348,822) | | | ||||
Cash flows from investing activities | | | | | | | | | | | | |||||||||||||||
Purchase of research and development licenses | | | | — | | | | | (5,776) | | | |||||||||||||||
Net cash used in investing activities | | | | — | | | | | (5,776) | | | |||||||||||||||
Cash flows from financing activities | | | | | | | | | | | | | | | | | | | | | | | ||||
Proceeds from SAFE investment | | | | 5,000,000 | | | | | — | | | |||||||||||||||
Payment of deferred offering costs | | | | (166,899) | | | | | — | | | |||||||||||||||
Contribution from TardiMed | | | | 435,000 | | | | | 200,000 | | | | | | — | | | | | 470,000 | | | ||||
Contribution from a third-party | | | | — | | | | | 25,000 | | | |||||||||||||||
Proceeds from notes payable | | | | — | | | | | 2,927,500 | | | |||||||||||||||
Third party investor contributions | | | | — | | | | | 50,000 | | | |||||||||||||||
Net cash provided by financing activities | | | | 435,000 | | | | | 225,000 | | | | | | 4,833,101 | | | | | 3,447,500 | | | ||||
Net increase in cash | | | | 15,625 | | | | | 9,322 | | | |||||||||||||||
Cash, beginning of period | | | | 9,322 | | | | | — | | | |||||||||||||||
Cash, end of period | | | $ | 24,947 | | | | $ | 9,322 | | | |||||||||||||||
Non cash financing activities: | | | | | | | | | | | | |||||||||||||||
Accrued preferred unit dividend | | | $ | 35,844 | | | | $ | 7,096 | | | |||||||||||||||
Net (decrease) increase in cash | | | | (679,538) | | | | | 1,098,678 | | | |||||||||||||||
Cash, beginning of year | | | | 1,123,625 | | | | | 24,947 | | | |||||||||||||||
Cash, end of year | | | $ | 444,087 | | | | $ | 1,123,625 | | | |||||||||||||||
Non-cash financing activities: | | | | | | | | | | | | |||||||||||||||
Common stock issued in connection with conversion of notes payable | | | $ | 3,412,782 | | | | $ | — | | | |||||||||||||||
Unpaid offering costs | | | $ | 37,880 | | | | $ | — | | | |||||||||||||||
Deemed dividend – beneficial conversion feature on preferred stock | | | $ | — | | | | $ | 1,452,422 | | | |||||||||||||||
Conversion of preferred units to preferred stock | | | $ | — | | | | $ | 1,341,183 | | | |||||||||||||||
Beneficial conversion feature in connection with notes payable | | | $ | — | | | | $ | 462,920 | | | |||||||||||||||
Accrued preferred unit and stock dividend | | | $ | — | | | | $ | 19,442 | | |
| | | December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Preferred stock | | | | | 1,557,435 | | | | | | 1,557,435 | | |
Unvested restricted stock units | | | | | — | | | | | | 1,377,999 | | |
Common stock warrants | | | | | 1,034,176 | | | | | | 1,034,176 | | |
Convertible notes | | | | | — | | | | | | 1,034,177 | | |
SAFE investment | | | | | 414,808 | | | | | | — | | |
Total | | | | | 3,006,419 | | | | | | 5,003,787 | | |
| | | Year Ended December 31, 2021 | |
Dividend yield | | | — | |
Expected price volatility | | | 50.0% | |
Risk free interest rate | | | 0.06% – 0.07% | |
Expected term (in years) | | | 1.0 – 5.0 | |
| | | Years Ended December 31, | | |||
| | | 2021 | | | 2020 | |
Dividend yield | | | — | | | — | |
Expected price volatility | | | 76.8% – 112.1% | | | 108.7% – 114.4% | |
Risk free interest rate | | | 0.05% – 1.09% | | | 0.10% – 0.38% | |
Expected term (in years) | | | 1.0 – 5.0 | | | 1.0 – 5.0 | |
| | | Year Ended December 31, 2020 | |
Contingent interest rate | | | 15.0% | |
Interest rate | | | 10.0% | |
Expected term | | | 0.8 – 1.0 | |
| | | Fair value measured at December 31, 2021 | | |||||||||||||||||||||
| | | Total carrying value at December 31, 2021 | | | Quoted prices in active markets (Level 1) | | | Significant other observable inputs (Level 2) | | | Significant unobservable inputs (Level 3) | | ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
SAFE liability | | | | $ | 4,824,217 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,824,217 | | |
Warrant liability | | | | $ | 4,516,485 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,516,485 | | |
| | | Fair value measured at December 31, 2020 | | |||||||||||||||||||||
| | | Total carrying value at December 31, 2020 | | | Quoted prices in active markets (Level 1) | | | Significant other observable inputs (Level 2) | | | Significant unobservable inputs (Level 3) | | ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Warrant liability | | | | $ | 4,057,927 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,057,927 | | |
Contingent Interest | | | | $ | 59,890 | | | | | $ | — | | | | | $ | — | | | | | $ | 59,890 | | |
| | | SAFE Liability | | | Warrant Liability | | | Contingent Interest | | |||||||||
Balance at December 31, 2019 | | | �� | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of warrants in connection with convertible notes | | | | | — | | | | | | 2,488,544 | | | | | | — | | |
Contingent interest in connection with notes payable | | | | | — | | | | | | — | | | | | | 55,394 | | |
Change in fair value | | | | | — | | | | | | 1,569,383 | | | | | | 4,496 | | |
Balance at December 31, 2020 | | | | $ | — | | | | | $ | 4,057,927 | | | | | $ | 59,890 | | |
Gain on conversion of notes | | | | | — | | | | | | — | | | | | | (59,890) | | |
Issuance of SAFE | | | | | 5,000,000 | | | | | | — | | | | | | — | | |
Change in fair value | | | | | (175,783) | | | | | | 458,558 | | | | | | — | | |
Balance at December 31, 2021 | | | | $ | 4,824,217 | | | | | $ | 4,516,485 | | | | | $ | — | | |
| | | December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Accrued expenses: | | | | | | | | | | | | | |
Employee and related expenses | | | | $ | 680,026 | | | | | $ | 499,752 | | |
Research and development | | | | | — | | | | | | 4,000 | | |
Professional fees | | | | | — | | | | | | 74,772 | | |
Total accrued expenses | | | | $ | 680,026 | | | | | $ | 578,524 | | |
Issuance date | | | Principal Balance | | | Contingent Interest | | | Unamortized Debt Discount | | | Notes Payable as of December 31, 2020 | | ||||||||||||
October 26, 2020 | | | | $ | 2,250,000 | | | | | $ | 43,445 | | | | | $ | (1,843,151) | | | | | $ | 450,295 | | |
October 29, 2020 | | | | | 750,000 | | | | | | 14,470 | | | | | | (620,548) | | | | | | 143,922 | | |
November 6, 2020 | | | | | 102,532 | | | | | | 1,974 | | | | | | (87,082) | | | | | | 17,424 | | |
| | | | $ | 3,102,532 | | | | | $ | 59,890 | | | | | $ | (2,550,780) | | | | | $ | 611,641 | | |
| Principal value of convertible notes | | | | $ | 3,102,532 | | |
| Original issue discount | | | | | (172,500) | | |
| Discount resulting from allocation of proceeds to warrant liability | | | | | (2,488,544) | | |
| Discount resulting from beneficial conversion feature | | | | | (462,920) | | |
| Amortization of discount | | | | | 551,752 | | |
| Loss on issuance of debt | | | | | 53,541 | | |
| Loss on extinguishment of debt | | | | | 23,284 | | |
| Change in fair value of derivative | | | | | 4,496 | | |
| Net carrying value of senior secured convertible notes | | | | $ | 611,641 | | |
| | | As of December 31, | | |||||||||
| | | 2019 | | | 2018 | | ||||||
Accrued expenses: | | | | | | | | | | | | | |
Research and development | | | | $ | 66,900 | | | | | $ | 4,147 | | |
Total accrued expenses | | | | $ | 66,900 | | | | | $ | 4,147 | | |
| | | Preferred Units | | |||||||||
| | | Shares | | | Amount | | ||||||
Balance at April 5, 2018 (Inception) | | | | | — | | | | | $ | — | | |
Contribution from TardiMed | | | | | 400,000 | | | | | | 200,000 | | |
Contribution from a third-party | | | | | 50,000 | | | | | | 25,000 | | |
Accrued preferred unit dividend | | | | | — | | | | | | 7,096 | | |
Balance at December 31, 2018 | | | | | 450,000 | | | | | $ | 232,096 | | |
Contribution from TardiMed | | | | | 870,000 | | | | | | 435,000 | | |
Non-cash contribution from TardiMed | | | | | 125,173 | | | | | | 62,587 | | |
Accrued preferred unit dividend | | | | | — | | | | | | 35,844 | | |
Balance at December 31, 2019 | | | | | 1,445,173 | | | | | $ | 765,527 | | |
| | | Number of Shares | | | Weighted Average Grant-Date Fair Value | | ||||||
Unvested as of January 1, 2020 | | | | | — | | | | | $ | — | | |
Granted | | | | | 1,377,999 | | | | | $ | 8.98 | | |
Unvested as of December 31, 2020 | | | | | 1,377,999 | | | | | $ | 8.98 | | |
Forfeited | | | | | (1,377,999) | | | | | $ | 8.98 | | |
Unvested as of December 31, 2021 | | | | | — | | | | | $ | — | | |
| | | Current | | | Deferred | | | Total | | |||||||||
Federal | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
State | | | | | — | | | | | | — | | | | | | — | | |
Foreign | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Net operating loss carryforwards | | | | $ | 2,030 | | | | | $ | 797 | | |
Research & development credits | | | | | 11 | | | | | | 11 | | |
Accrued expenses | | | | | 166 | | | | | | 144 | | |
Equity based compensation | | | | | — | | | | | | 591 | | |
Other temporary differences | | | | | — | | | | | | 20 | | |
Gross deferred tax assets | | | | | 2,207 | | | | | | 1,563 | | |
Valuation allowance | | | | | (2,207) | | | | | | (1,563) | | |
Net deferred tax asset | | | | $ | — | | | | | $ | — | | |
| | | For the years ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Tax provision at statutory rate | | | | | 21.0% | | | | | | 21.0% | | |
State taxes, net of federal benefit | | | | | 3.7% | | | | | | 3.9% | | |
Share based compensation | | | | | (9.2)% | | | | | | —% | | |
Debt conversion | | | | | (6.7)% | | | | | | —% | | |
Permanent items | | | | | 0.4% | | | | | | —% | | |
Other | | | | | —% | | | | | | (0.7)% | | |
Warrant liability | | | | | (0.9)% | | | | | | (4.2)% | | |
Change in valuation reserve | | | | | (8.3)% | | | | | | (20.0)% | | |
Income taxes provision (benefit) | | | | | —% | | | | | | —% | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2018 | | ||||||
Net Loss | | | | $ | (598,609) | | | | | $ | (222,279) | | |
Cumulative Dividends | | | | | (35,844) | | | | | | (7,096) | | |
Net Loss applicable to common unit holder | | | | $ | (634,453) | | | | | $ | (229,375) | | |
Weighted average number of common shares outstanding, basic and diluted | | | | | 5,775,898 | | | | | | 5,775,898 | | |
Pro forma net loss per share, basic and diluted | | | | $ | (0.10) | | | | | $ | (0.04) | | |
Pro forma net loss applicable to common unit holder per share, basic and diluted | | | | $ | (0.11) | | | | | $ | (0.04) | | |
| | | March 31 2022 | | | December 31, 2021 | | ||||||
| | | (Unaudited) | | | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash | | | | $ | 49,383 | | | | | $ | 444,087 | | |
Total current assets | | | | | 49,383 | | | | | | 444,087 | | |
Deferred offering costs | | | | | 466,436 | | | | | | 204,779 | | |
Deferred financing costs | | | | | 25,100 | | | | | | — | | |
Total assets | | | | $ | 540,919 | | | | | $ | 648,866 | | |
LIABILITIES, AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable | | | | $ | 2,157,462 | | | | | $ | 736,251 | | |
Accounts payable – related party | | | | | 98,250 | | | | | | 750 | | |
Accrued expenses | | | | | 876,695 | | | | | | 680,026 | | |
SAFE liability | | | | | 3,190,000 | | | | | | 4,824,217 | | |
Warrant liability | | | | | 2,282,719 | | | | | | 4,516,485 | | |
Total current liabilities | | | | | 8,605,126 | | | | | | 10,757,729 | | |
Total liabilities | | | | | 8,605,126 | | | | | | 10,757,729 | | |
Commitments and contingencies (Note 7) | | | | | | | | | | | | | |
Stockholders’ deficit | | | | | | | | | | | | | |
Preferred shares, par value $0.0001; 2,696,439 shares authorized; 2,696,439 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively; aggregate liquidation preference of $2,808,148 | | | | | 270 | | | | | | 270 | | |
Common stock, par value $0.0001; 20,000,000 shares authorized at March 31, 2022 and December 31, 2021; 6,913,492 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | | | | | 691 | | | | | | 691 | | |
Additional paid-in capital | | | | | 9,009,619 | | | | | | 8,828,425 | | |
Accumulated deficit | | | | | (17,074,787) | | | | | | (18,938,249) | | |
Total stockholders’ deficit | | | | | (8,064,207) | | | | | | (10,108,863) | | |
Total liabilities, and stockholders’ deficit | | | | $ | 540,919 | | | | | $ | 648,866 | | |
| | | Three Months Ended March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Operating expenses | | | | | | | | | | | | | |
General and administrative | | | | $ | 933,817 | | | | | $ | 1,286,992 | | |
Research and development | | | | | 1,070,704 | | | | | | 427,955 | | |
Total operating expenses | | | | | 2,004,521 | | | | | | 1,714,947 | | |
Loss from operations | | | | | (2,004,521) | | | | | | (1,714,947) | | |
Other income (expense): | | | | | | | | | | | | | |
Interest expense | | | | | — | | | | | | (2,805,856) | | |
Gain on conversion of notes | | | | | — | | | | | | 59,890 | | |
Change in fair value of SAFE | | | | | 1,634,217 | | | | | | (2,305,967) | | |
Change in fair value warrant liability | | | | | 2,233,766 | | | | | | (453,371) | | |
Total other income (expense) | | | | | 3,867,983 | | | | | | (5,505,304) | | |
Net income (loss) | | | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Basic weighted average number of shares outstanding | | | | | 6,913,492 | | | | | | 5,909,793 | | |
Diluted weighted average number of shares outstanding | | | | | 9,120,412 | | | | | | 5,909,793 | | |
Basic net income (loss) per share | | | | $ | 0.22 | | | | | $ | (1.22) | | |
Diluted net income (loss) per share | | | | $ | 0.16 | | | | | $ | (1.22) | | |
| | | Preferred Stock | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | |||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||
Balance at January 1, 2022 | | | | | 2,696,439 | | | | | $ | 270 | | | | | | 6,913,492 | | | | | $ | 691 | | | | | $ | 8,828,425 | | | | | $ | (18,938,249) | | | | | $ | (10,108,863) | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 181,194 | | | | | | — | | | | | | 181,194 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,863,462 | | | | | | 1,863,462 | | |
Balance at March 31, 2022 | | | | | 2,696,439 | | | | | $ | 270 | | | | | | 6,913,492 | | | | | $ | 691 | | | | | $ | 9,009,619 | | | | | $ | (17,074,787) | | | | | $ | (8,064,207) | | |
| | | Preferred Stock | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | |||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||
Balance at January 1, 2021 | | | | | 2,696,439 | | | | | $ | 270 | | | | | | 5,775,898 | | | | | $ | 578 | | | | | $ | 4,079,891 | | | | | $ | (8,709,278) | | | | | $ | (4,628,539) | | |
Common stock issued in connection with conversion of notes payable | | | | | — | | | | | | — | | | | | | 1,137,594 | | | | | | 113 | | | | | | 3,412,669 | | | | | | — | | | | | | 3,412,782 | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 511,316 | | | | | | — | | | | | | 511,316 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,220,251) | | | | | | (7,220,251) | | |
Balance at March 31, 2021 | | | | | 2,696,439 | | | | | $ | 270 | | | | | | 6,913,492 | | | | | $ | 691 | | | | | $ | 8,003,876 | | | | | $ | (15,929,529) | | | | | $ | (7,924,692) | | |
| | | Three months ended March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | | | | | | | | | | | | | |
Stock-based compensation | | | | | 181,194 | | | | | | 511,316 | | |
Amortization of debt discount | | | | | — | | | | | | 2,550,780 | | |
Change in fair value of SAFE | | | | | (1,634,217) | | | | | | 2,305,967 | | |
Gain on conversion of notes | | | | | — | | | | | | (59,890) | | |
Change in fair value warrant liability | | | | | (2,233,766) | | | | | | 453,371 | | |
Non-cash interest expense | | | | | — | | | | | | 255,076 | | |
Changes in assets and liabilities: | | | | | | | | | | | | | |
Accounts payable | | | | | 1,134,454 | | | | | | 155,332 | | |
Accounts payable – related party | | | | | 97,500 | | | | | | (100,138) | | |
Accrued expenses | | | | | 196,669 | | | | | | 364,119 | | |
Net cash used in operating activities | | | | | (394,704) | | | | | | (784,318) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Proceeds from SAFE investment | | | | | — | | | | | | 5,000,000 | | |
Net cash provided by financing activities | | | | | — | | | | | | 5,000,000 | | |
Net (decrease) increase in cash | | | | | (394,704) | | | | | | 4,215,682 | | |
Cash, beginning of period | | | | | 444,087 | | | | | | 1,123,625 | | |
Cash, end of period | | | | $ | 49,383 | | | | | $ | 5,339,307 | | |
Non-cash financing activities: | | | | | | | | | | | | | |
Common stock issued in connection with conversion of notes payable | | | | $ | — | | | | | $ | 3,412,782 | | |
Unpaid offering costs | | | | $ | 261,657 | | | | | $ | 58,664 | | |
Unpaid financing fees | | | | $ | 25,100 | | | | | $ | — | | |
| | | June 30, 2020 | | | December 31, 2019 | | ||||||
| | | (Unaudited) | | | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash | | | | $ | 26,865 | | | | | $ | 24,947 | | |
Total assets | | | | $ | 26,865 | | | | | $ | 24,947 | | |
LIABILITIES, TEMPORARY EQUITY, AND MEMBERS’ AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable | | | | $ | 304,412 | | | | | $ | 41,023 | | |
Accounts payable – related party | | | | | 7,988 | | | | | | 15,325 | | |
Accrued expenses | | | | | 88,830 | | | | | | 66,900 | | |
Total current liabilities | | | | | 401,230 | | | | | | 123,248 | | |
Total liabilities | | | | | 401,230 | | | | | | 123,248 | | |
Temporary equity | | | | | | | | | | | | | |
Preferred units, 1,516,141 shares issued and outstanding at December 31, 2019; aggregate liquidation preference of $765,527 as of December 31, 2019 | | | | | — | | | | | | 765,527 | | |
Preferred shares, par value $.0001; 2,696,439 shares authorized; 2,696,439 shares issued and outstanding at June 30, 2020; aggregate liquidation preference of $2,808,148 | | | | | 2,808,148 | | | | | | — | | |
Commitments and contingencies (Note 7) | | | | | | | | | | | | | |
Members’ and stockholders deficit | | | | | | | | | | | | | |
Common stock – member units | | | | | — | | | | | | — | | |
Common stock, par value $.0001; 20,000,000 shares authorized at June 30, 2020; 5,775,898 shares issued and outstanding at June 30, 2020 | | | | | — | | | | | | — | | |
Additional paid-in capital | | | | | (497,079) | | | | | | — | | |
Accumulated deficit | | | | | (2,685,434) | | | | | | (863,828) | | |
Total members’ and stockholders’ deficit | | | | | (3,182,513) | | | | | | (863,828) | | |
Total liabilities, temporary equity, and members’ and stockholders’ deficit | | | | $ | 26,865 | | | | | $ | 24,947 | | |
| | | Six Months Ended June 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Operating expenses | | | | | | | | | | | | | |
General and administrative | | | | $ | 1,532,217 | | | | | $ | 36,915 | | |
Research and development | | | | | 269,947 | | | | | | 215,357 | | |
Total operating expenses | | | | | 1,802,164 | | | | | | 252,272 | | |
Loss from operations | | | | | (1,802,164) | | | | | | (252,272) | | |
Net loss | | | | $ | (1,802,164) | | | | | $ | (252,272) | | |
Less: Accrued preferred unit and stock dividend | | | | | (19,442) | | | | | | (12,804) | | |
Less: Deemed dividend – beneficial conversion feature on preferred stock | | | | | (1,452,422) | | | | | | — | | |
Net loss attributable to common stockholders | | | | $ | (3,274,028) | | | | | $ | (265,076) | | |
Weighted average number of common shares outstanding, basic and diluted | | | | | 5,775,898 | | | | | | 5,775,898 | | |
Net loss per share, basic and diluted | | | | $ | (0.31) | | | | | $ | (0.04) | | |
| | | Common Units | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Members’ and Stockholders’ Deficit | | |||||||||||||||||||||||||||
| | | Units | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||
Balance at January 1, 2020 | | | | | 5,775,898 | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | (863,828) | | | | | $ | (863,828) | | |
Conversion of common units to common stock | | | | | (5,775,898) | | | | | | — | | | | | | 5,775,898 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | 955,344 | | | | | | — | | | | | | 955,344 | | |
Accrued preferred unit and stock dividend | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (19,442) | | | | | | (19,442) | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,802,164) | | | | | | (1,802,164) | | |
Deemed dividend – beneficial conversion feature on preferred stock | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,452,423) | | | | | | — | | | | | | (1,452,423) | | |
Balance at June 30, 2020 | | | | | — | | | | | $ | — | | | | | | 5,775,898 | | | | | $ | — | | | | | $ | (497,079) | | | | | $ | (2,685,434) | | | | | $ | (3,182,513) | | |
|
| | | Common Stock | | | Accumulated Deficit | | | Total Members’ and Stockholders’ Deficit | | |||||||||||||||
| | | Units | | | Amount | | ||||||||||||||||||
Balance at January 1, 2019 | | | | | 5,775,898 | | | | | $ | — | | | | | $ | (229,375) | | | | | $ | (229,375) | | |
Accrued preferred unit dividend | | | | | — | | | | | | — | | | | | | (12,804) | | | | | | (12,804) | | |
Net loss | | | | | — | | | | | | — | | | | | | (252,272) | | | | | | (252,272) | | |
Balance at June 30, 2019 | | | | | 5,775,898 | | | | | $ | — | | | | | $ | (494,451) | | | | | $ | (494,451) | | |
| | | Six Months Ended June 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net loss | | | | $ | (1,802,164) | | | | | $ | (252,272) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Stock-based compensation | | | | | 955,344 | | | | | | — | | |
Non-cash contribution from TardiMed | | | | | 50,757 | | | | | | 31,293 | | |
Changes in assets and liabilities: | | | | | | | | | | | | | |
Accounts payable | | | | | 263,388 | | | | | | 30,218 | | |
Accounts payable – related party | | | | | (7,337) | | | | | | 1,045 | | |
Accrued expenses | | | | | 21,930 | | | | | | (4,147) | | |
Net cash used in operating activities | | | | | (518,082) | | | | | | (193,863) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Contribution from TardiMed | | | | | 470,000 | | | | | | 225,000 | | |
Third party investor contributions | | | | | 50,000 | | | | | | — | | |
Net cash provided by financing activities | | | | | 520,000 | | | | | | 225,000 | | |
Net increase in cash | | | | | 1,918 | | | | | | 31,137 | | |
Cash, beginning of period | | | | | 24,947 | | | | | | 9,322 | | |
Cash, end of period | | | | $ | 26,865 | | | | | $ | 40,459 | | |
Non cash financing activities: | | | | | | | | | | | | | |
Deemed dividend – beneficial conversion feature on preferred stock | | | | $ | 1,452,423 | | | | | $ | — | | |
Accrued preferred unit and stock dividend | | | | $ | 19,442 | | | | | $ | 12,804 | | |
| | | Three months ended March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Numerator: | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Amount allocated to participating common shareholders(1) | | | | | (361,902) | | | | | | — | | |
Net income (loss) allocated to common shareholders | | | | $ | 1,501,560 | | | | | $ | (7,220,251) | | |
Denominator: | | | | | | | | | | | | | |
Basic weighted average number of shares outstanding | | | | | 6,913,492 | | | | | | 5,909,793 | | |
Add: | | | | | | | | | | | | | |
Warrants | | | | | 649,486 | | | | | | — | | |
Conversion of preferred stock | | | | | 1,557,435 | | | | | | — | | |
Diluted weighted average number of shares outstanding | | | | | 9,120,412 | | | | | | 5,909,793 | | |
Basic net income (loss) per share | | | | $ | 0.22 | | | | | $ | (1.22) | | |
Diluted net income (loss) per share | | | | $ | 0.16 | | | | | $ | (1.22) | | |
| | | March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Preferred stock | | | | | — | | | | | | 1,557,435 | | |
Unvested restricted stock units | | | | | 1,342,666 | | | | | | 1,377,999 | | |
Common stock warrants | | | | | 384,690 | | | | | | 1,034,176 | | |
SAFE investment | | | | | 414,808 | | | | | | 641,437 | | |
Total | | | | | 2,142,164 | | | | | | 4,611,047 | | |
| | | June 30, 2020 | | | December 31, 2019 | | ||||||
Accrued expenses: | | | | | | | | | | | | | |
Research and development | | | | $ | 9,600 | | | | | $ | 66,900 | | |
Audit fees | | | | | 20,600 | | | | | | — | | |
Employee and related expenses | | | | | 58,630 | | | | | | — | | |
Total accrued expenses | | | | $ | 88,830 | | | | | $ | 66,900 | | |
| | | Six Months Ended June 30, 2020 | | | Year Ended December 31, 2019 | | ||||||||||||||||||
| | | Shares | | | Amount | | | Units | | | Amount | | ||||||||||||
Opening balance | | | | | 1,516,041 | | | | | $ | 765,527 | | | | | | 450,000 | | | | | $ | 232,096 | | |
Contribution from TardiMed | | | | | 940,000 | | | | | | 470,000 | | | | | | 870,000 | | | | | | 435,000 | | |
Investor contributions | | | | | 100,000 | | | | | | 50,000 | | | | | | — | | | | | | — | | |
Non-cash contribution from TardiMed | | | | | 101,514 | | | | | | 50,757 | | | | | | 125,173 | | | | | | 62,587 | | |
Accrued preferred unit dividend | | | | | 38,884 | | | | | | 19,442 | | | | | | — | | | | | | 35,844 | | |
Deemed dividend – beneficial conversion feature on preferred stock | | | | | — | | | | | | 1,452,422 | | | | | | — | | | | | | — | | |
Ending balance | | | | | 2,696,439 | | | | | $ | 2,808,148 | | | | | | 1,445,173 | | | | | $ | 765,527 | | |
| | | Preferred Units | | |||||||||
| | | Units | | | Amount | | ||||||
Balance at January 1, 2019 | | | | | 464,192 | | | | | $ | 232,096 | | |
Contribution from TardiMed | | | | | 450,000 | | | | | | 225,000 | | |
Non-cash contribution from TardiMed | | | | | 62,587 | | | | | | 31,293 | | |
Accrued preferred unit dividend | | | | | 25,609 | | | | | | 12,804 | | |
Balance at June 30, 2019 | | | | | 1,002,388 | | | | | $ | 501,193 | | |
| | | Three months ended March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Dividend yield | | | | | 0% | | | | | | 0% | | |
Expected price volatility | | | | | 50.0% | | | | | | 50.0% | | |
Risk free interest rate | | | | | 1.35% | | | | | | 0.09% | | |
Expected term (in years) | | | | | 0.8 | | | | | | 1.3 | | |
| | | Three months ended March 31, | | |||
| | | 2022 | | | 2021 | |
Dividend yield | | | 0% | | | 0% | |
Expected price volatility | | | 95.9 – 105.0% | | | 104.0 – 112.1% | |
Risk free interest rate | | | 0.69% – 2.44% | | | 0.06% – 0.81% | |
Expected term (in years) | | | 0.3 – 4 | | | 1 – 5 | |
| | | Fair value measured at March 31, 2022 | | |||||||||||||||||||||
| | | Total carrying value at March 31, 2022 | | | Quoted prices in active markets (Level 1) | | | Significant other observable inputs (Level 2) | | ��� | Significant unobservable inputs (Level 3) | | ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
SAFE liability | | | | $ | 3,190,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,190,000 | | |
Warrant liability | | | | $ | 2,282,719 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,282,719 | | |
| | | Fair value measured at December 31, 2021 | | |||||||||||||||||||||
| | | Total carrying value at December 31, 2021 | | | Quoted prices in active markets (Level 1) | | | Significant other observable inputs (Level 2) | | | Significant unobservable inputs (Level 3) | | ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
SAFE liability | | | | $ | 4,824,217 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,824,217 | | |
Warrant liability | | | | $ | 4,516,485 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,516,485 | | |
| | | SAFE Liability | | | Warrant Liability | | ||||||
Balance at December 31, 2021 | | | | $ | 4,824,217 | | | | | $ | 4,516,485 | | |
Change in fair value | | | | | (1,634,217) | | | | | | (2,233,766) | | |
Balance at March 31, 2022 | | | | $ | 3,190,000 | | | | | $ | 2,282,719 | | |
| | | March 31, 2022 | | | December 31, 2021 | | ||||||
| | | (Unaudited) | | | | | | | | |||
Employee and related expenses | | | | $ | 815,691 | | | | | $ | 680,026 | | |
Professional fees | | | | | 56,104 | | | | | | — | | |
Research and development | | | | | 4,900 | | | | | | — | | |
Total accrued expenses | | | | $ | 876,695 | | | | | $ | 680,026 | | |
| | | Number of Shares | | | Weighted Average Exercise Price | | | Total Intrinsic Value | | | Weighted Average Remaining Contractual Life (in years) | | ||||||||||||
Outstanding as of December 31, 2019 | | | | | — | | | | | $ | — | | | | | $ | — | | | | | | — | | |
Granted | | | | | 787,499 | | | | | | 0.19 | | | | | $ | 4,236,391 | | | | | | 9.8 | | |
Outstanding as of June 30, 2020 | | | | | 787,499 | | | | | $ | 0.19 | | | | | $ | 4,236,391 | | | | | | 9.8 | | |
Options vested and expected to vest as of June 30, 2020 | | | | | 787,499 | | | | | $ | 0.19 | | | | | $ | 4,236,391 | | | | | | 9.8 | | |
Options vested and exercisable as of June 30, 2020 | | | | | 84,375 | | | | | $ | 0.19 | | | | | $ | 453,898 | | | | | | 9.8 | | |
| | | Number of Shares | | | Weighted Average Grant-Date Fair Value | | ||||||
Unvested as of December 31, 2021 | | | | | — | | | | | $ | — | | |
Granted | | | | | 1,342,666 | | | | | $ | 10.87 | | |
Unvested as of March 31, 2022 | | | | | 1,342,666 | | | | | $ | 10.87 | | |
| SEC Filing Fee | | | | $ | 2,395.78 | | |
| FINRA Fee | | | | $ | 3,268.63 | | |
| Underwriter Legal Fees and Expenses. | | | | $ | 100,000.00 | | |
| Nasdaq Fee | | | | $ | 50,000.00 | | |
| Printing Expenses | | | | $ | 85,000.00 | | |
| Accounting Fees and Expenses | | | | $ | 120,000.00 | | |
| Legal Fees and Expenses | | | | $ | 415,000.00 | | |
| Transfer Agent and Registrar Expenses | | | | $ | 24,100.00 | | |
| Miscellaneous | | | | $ | 5,236.00 | | |
| Total | | | | $ | 805,000.00 | | |
| | | Number of Shares | | | Weighted Average Grant-Date Fair Value | | ||||||
Unvested as of January 1, 2020 | | | | | — | | | | | $ | — | | |
Granted | | | | | 1,377,999 | | | | | $ | 8.98 | | |
Unvested as of December 31, 2020 | | | | | 1,377,999 | | | | | $ | 8.98 | | |
Forfeited | | | | | (1,377,999) | | | | | $ | 8.98 | | |
Unvested as of December 31, 2021 | | | | | — | | | | | $ | — | | |
| | | Current | | | Deferred | | | Total | | |||||||||
Federal | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
State | | | | | — | | | | | | — | | | | | | — | | |
Foreign | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Net operating loss carryforwards | | | | $ | 2,030 | | | | | $ | 797 | | |
Research & development credits | | | | | 11 | | | | | | 11 | | |
Accrued expenses | | | | | 166 | | | | | | 144 | | |
Equity based compensation | | | | | — | | | | | | 591 | | |
Other temporary differences | | | | | — | | | | | | 20 | | |
Gross deferred tax assets | | | | | 2,207 | | | | | | 1,563 | | |
Valuation allowance | | | | | (2,207) | | | | | | (1,563) | | |
Net deferred tax asset | | | | $ | — | | | | | $ | — | | |
| | | For the years ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Tax provision at statutory rate | | | | | 21.0% | | | | | | 21.0% | | |
State taxes, net of federal benefit | | | | | 3.7% | | | | | | 3.9% | | |
Share based compensation | | | | | (9.2)% | | | | | | —% | | |
Debt conversion | | | | | (6.7)% | | | | | | —% | | |
Permanent items | | | | | 0.4% | | | | | | —% | | |
Other | | | | | —% | | | | | | (0.7)% | | |
Warrant liability | | | | | (0.9)% | | | | | | (4.2)% | | |
Change in valuation reserve | | | | | (8.3)% | | | | | | (20.0)% | | |
Income taxes provision (benefit) | | | | | —% | | | | | | —% | | |
| | | March 31 2022 | | | December 31, 2021 | | ||||||
| | | (Unaudited) | | | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash | | | | $ | 49,383 | | | | | $ | 444,087 | | |
Total current assets | | | | | 49,383 | | | | | | 444,087 | | |
Deferred offering costs | | | | | 466,436 | | | | | | 204,779 | | |
Deferred financing costs | | | | | 25,100 | | | | | | — | | |
Total assets | | | | $ | 540,919 | | | | | $ | 648,866 | | |
LIABILITIES, AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable | | | | $ | 2,157,462 | | | | | $ | 736,251 | | |
Accounts payable – related party | | | | | 98,250 | | | | | | 750 | | |
Accrued expenses | | | | | 876,695 | | | | | | 680,026 | | |
SAFE liability | | | | | 3,190,000 | | | | | | 4,824,217 | | |
Warrant liability | | | | | 2,282,719 | | | | | | 4,516,485 | | |
Total current liabilities | | | | | 8,605,126 | | | | | | 10,757,729 | | |
Total liabilities | | | | | 8,605,126 | | | | | | 10,757,729 | | |
Commitments and contingencies (Note 7) | | | | | | | | | | | | | |
Stockholders’ deficit | | | | | | | | | | | | | |
Preferred shares, par value $0.0001; 2,696,439 shares authorized; 2,696,439 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively; aggregate liquidation preference of $2,808,148 | | | | | 270 | | | | | | 270 | | |
Common stock, par value $0.0001; 20,000,000 shares authorized at March 31, 2022 and December 31, 2021; 6,913,492 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | | | | | 691 | | | | | | 691 | | |
Additional paid-in capital | | | | | 9,009,619 | | | | | | 8,828,425 | | |
Accumulated deficit | | | | | (17,074,787) | | | | | | (18,938,249) | | |
Total stockholders’ deficit | | | | | (8,064,207) | | | | | | (10,108,863) | | |
Total liabilities, and stockholders’ deficit | | | | $ | 540,919 | | | | | $ | 648,866 | | |
| | | Three Months Ended March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Operating expenses | | | | | | | | | | | | | |
General and administrative | | | | $ | 933,817 | | | | | $ | 1,286,992 | | |
Research and development | | | | | 1,070,704 | | | | | | 427,955 | | |
Total operating expenses | | | | | 2,004,521 | | | | | | 1,714,947 | | |
Loss from operations | | | | | (2,004,521) | | | | | | (1,714,947) | | |
Other income (expense): | | | | | | | | | | | | | |
Interest expense | | | | | — | | | | | | (2,805,856) | | |
Gain on conversion of notes | | | | | — | | | | | | 59,890 | | |
Change in fair value of SAFE | | | | | 1,634,217 | | | | | | (2,305,967) | | |
Change in fair value warrant liability | | | | | 2,233,766 | | | | | | (453,371) | | |
Total other income (expense) | | | | | 3,867,983 | | | | | | (5,505,304) | | |
Net income (loss) | | | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Basic weighted average number of shares outstanding | | | | | 6,913,492 | | | | | | 5,909,793 | | |
Diluted weighted average number of shares outstanding | | | | | 9,120,412 | | | | | | 5,909,793 | | |
Basic net income (loss) per share | | | | $ | 0.22 | | | | | $ | (1.22) | | |
Diluted net income (loss) per share | | | | $ | 0.16 | | | | | $ | (1.22) | | |
| | | Preferred Stock | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | |||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||
Balance at January 1, 2022 | | | | | 2,696,439 | | | | | $ | 270 | | | | | | 6,913,492 | | | | | $ | 691 | | | | | $ | 8,828,425 | | | | | $ | (18,938,249) | | | | | $ | (10,108,863) | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 181,194 | | | | | | — | | | | | | 181,194 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,863,462 | | | | | | 1,863,462 | | |
Balance at March 31, 2022 | | | | | 2,696,439 | | | | | $ | 270 | | | | | | 6,913,492 | | | | | $ | 691 | | | | | $ | 9,009,619 | | | | | $ | (17,074,787) | | | | | $ | (8,064,207) | | |
| | | Preferred Stock | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | |||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||
Balance at January 1, 2021 | | | | | 2,696,439 | | | | | $ | 270 | | | | | | 5,775,898 | | | | | $ | 578 | | | | | $ | 4,079,891 | | | | | $ | (8,709,278) | | | | | $ | (4,628,539) | | |
Common stock issued in connection with conversion of notes payable | | | | | — | | | | | | — | | | | | | 1,137,594 | | | | | | 113 | | | | | | 3,412,669 | | | | | | — | | | | | | 3,412,782 | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 511,316 | | | | | | — | | | | | | 511,316 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,220,251) | | | | | | (7,220,251) | | |
Balance at March 31, 2021 | | | | | 2,696,439 | | | | | $ | 270 | | | | | | 6,913,492 | | | | | $ | 691 | | | | | $ | 8,003,876 | | | | | $ | (15,929,529) | | | | | $ | (7,924,692) | | |
| | | Three months ended March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | | | | | | | | | | | | | |
Stock-based compensation | | | | | 181,194 | | | | | | 511,316 | | |
Amortization of debt discount | | | | | — | | | | | | 2,550,780 | | |
Change in fair value of SAFE | | | | | (1,634,217) | | | | | | 2,305,967 | | |
Gain on conversion of notes | | | | | — | | | | | | (59,890) | | |
Change in fair value warrant liability | | | | | (2,233,766) | | | | | | 453,371 | | |
Non-cash interest expense | | | | | — | | | | | | 255,076 | | |
Changes in assets and liabilities: | | | | | | | | | | | | | |
Accounts payable | | | | | 1,134,454 | | | | | | 155,332 | | |
Accounts payable – related party | | | | | 97,500 | | | | | | (100,138) | | |
Accrued expenses | | | | | 196,669 | | | | | | 364,119 | | |
Net cash used in operating activities | | | | | (394,704) | | | | | | (784,318) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Proceeds from SAFE investment | | | | | — | | | | | | 5,000,000 | | |
Net cash provided by financing activities | | | | | — | | | | | | 5,000,000 | | |
Net (decrease) increase in cash | | | | | (394,704) | | | | | | 4,215,682 | | |
Cash, beginning of period | | | | | 444,087 | | | | | | 1,123,625 | | |
Cash, end of period | | | | $ | 49,383 | | | | | $ | 5,339,307 | | |
Non-cash financing activities: | | | | | | | | | | | | | |
Common stock issued in connection with conversion of notes payable | | | | $ | — | | | | | $ | 3,412,782 | | |
Unpaid offering costs | | | | $ | 261,657 | | | | | $ | 58,664 | | |
Unpaid financing fees | | | | $ | 25,100 | | | | | $ | — | | |
| | | Three months ended March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Numerator: | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Amount allocated to participating common shareholders(1) | | | | | (361,902) | | | | | | — | | |
Net income (loss) allocated to common shareholders | | | | $ | 1,501,560 | | | | | $ | (7,220,251) | | |
Denominator: | | | | | | | | | | | | | |
Basic weighted average number of shares outstanding | | | | | 6,913,492 | | | | | | 5,909,793 | | |
Add: | | | | | | | | | | | | | |
Warrants | | | | | 649,486 | | | | | | — | | |
Conversion of preferred stock | | | | | 1,557,435 | | | | | | — | | |
Diluted weighted average number of shares outstanding | | | | | 9,120,412 | | | | | | 5,909,793 | | |
Basic net income (loss) per share | | | | $ | 0.22 | | | | | $ | (1.22) | | |
Diluted net income (loss) per share | | | | $ | 0.16 | | | | | $ | (1.22) | | |
| | | March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Preferred stock | | | | | — | | | | | | 1,557,435 | | |
Unvested restricted stock units | | | | | 1,342,666 | | | | | | 1,377,999 | | |
Common stock warrants | | | | | 384,690 | | | | | | 1,034,176 | | |
SAFE investment | | | | | 414,808 | | | | | | 641,437 | | |
Total | | | | | 2,142,164 | | | | | | 4,611,047 | | |
| | | Three months ended March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Dividend yield | | | | | 0% | | | | | | 0% | | |
Expected price volatility | | | | | 50.0% | | | | | | 50.0% | | |
Risk free interest rate | | | | | 1.35% | | | | | | 0.09% | | |
Expected term (in years) | | | | | 0.8 | | | | | | 1.3 | | |
| | | Three months ended March 31, | | |||
| | | 2022 | | | 2021 | |
Dividend yield | | | 0% | | | 0% | |
Expected price volatility | | | 95.9 – 105.0% | | | 104.0 – 112.1% | |
Risk free interest rate | | | 0.69% – 2.44% | | | 0.06% – 0.81% | |
Expected term (in years) | | | 0.3 – 4 | | | 1 – 5 | |
| | | Fair value measured at March 31, 2022 | | |||||||||||||||||||||
| | | Total carrying value at March 31, 2022 | | | Quoted prices in active markets (Level 1) | | | Significant other observable inputs (Level 2) | | ��� | Significant unobservable inputs (Level 3) | | ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
SAFE liability | | | | $ | 3,190,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,190,000 | | |
Warrant liability | | | | $ | 2,282,719 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,282,719 | | |
| | | Fair value measured at December 31, 2021 | | |||||||||||||||||||||
| | | Total carrying value at December 31, 2021 | | | Quoted prices in active markets (Level 1) | | | Significant other observable inputs (Level 2) | | | Significant unobservable inputs (Level 3) | | ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
SAFE liability | | | | $ | 4,824,217 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,824,217 | | |
Warrant liability | | | | $ | 4,516,485 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,516,485 | | |
| | | SAFE Liability | | | Warrant Liability | | ||||||
Balance at December 31, 2021 | | | | $ | 4,824,217 | | | | | $ | 4,516,485 | | |
Change in fair value | | | | | (1,634,217) | | | | | | (2,233,766) | | |
Balance at March 31, 2022 | | | | $ | 3,190,000 | | | | | $ | 2,282,719 | | |
| | | March 31, 2022 | | | December 31, 2021 | | ||||||
| | | (Unaudited) | | | | | | | | |||
Employee and related expenses | | | | $ | 815,691 | | | | | $ | 680,026 | | |
Professional fees | | | | | 56,104 | | | | | | — | | |
Research and development | | | | | 4,900 | | | | | | — | | |
Total accrued expenses | | | | $ | 876,695 | | | | | $ | 680,026 | | |
| | | Number of Shares | | | Weighted Average Grant-Date Fair Value | | ||||||
Unvested as of December 31, 2021 | | | | | — | | | | | $ | — | | |
Granted | | | | | 1,342,666 | | | | | $ | 10.87 | | |
Unvested as of March 31, 2022 | | | | | 1,342,666 | | | | | $ | 10.87 | | |
| | | Number of Shares | | | Weighted Average Grant-Date Fair Value | | ||||||
Unvested as of January 1, 2020 | | | | | — | | | | | $ | — | | |
Granted | | | | | 1,377,999 | | | | | $ | 8.98 | | |
Unvested as of December 31, 2020 | | | | | 1,377,999 | | | | | $ | 8.98 | | |
Forfeited | | | | | (1,377,999) | | | | | $ | 8.98 | | |
Unvested as of December 31, 2021 | | | | | — | | | | | $ | — | | |
| | | Current | | | Deferred | | | Total | | |||||||||
Federal | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
State | | | | | — | | | | | | — | | | | | | — | | |
Foreign | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Net operating loss carryforwards | | | | $ | 2,030 | | | | | $ | 797 | | |
Research & development credits | | | | | 11 | | | | | | 11 | | |
Accrued expenses | | | | | 166 | | | | | | 144 | | |
Equity based compensation | | | | | — | | | | | | 591 | | |
Other temporary differences | | | | | — | | | | | | 20 | | |
Gross deferred tax assets | | | | | 2,207 | | | | | | 1,563 | | |
Valuation allowance | | | | | (2,207) | | | | | | (1,563) | | |
Net deferred tax asset | | | | $ | — | | | | | $ | — | | |
| | | For the years ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Tax provision at statutory rate | | | | | 21.0% | | | | | | 21.0% | | |
State taxes, net of federal benefit | | | | | 3.7% | | | | | | 3.9% | | |
Share based compensation | | | | | (9.2)% | | | | | | —% | | |
Debt conversion | | | | | (6.7)% | | | | | | —% | | |
Permanent items | | | | | 0.4% | | | | | | —% | | |
Other | | | | | —% | | | | | | (0.7)% | | |
Warrant liability | | | | | (0.9)% | | | | | | (4.2)% | | |
Change in valuation reserve | | | | | (8.3)% | | | | | | (20.0)% | | |
Income taxes provision (benefit) | | | | | —% | | | | | | —% | | |
| | | March 31 2022 | | | December 31, 2021 | | ||||||
| | | (Unaudited) | | | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash | | | | $ | 49,383 | | | | | $ | 444,087 | | |
Total current assets | | | | | 49,383 | | | | | | 444,087 | | |
Deferred offering costs | | | | | 466,436 | | | | | | 204,779 | | |
Deferred financing costs | | | | | 25,100 | | | | | | — | | |
Total assets | | | | $ | 540,919 | | | | | $ | 648,866 | | |
LIABILITIES, AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable | | | | $ | 2,157,462 | | | | | $ | 736,251 | | |
Accounts payable – related party | | | | | 98,250 | | | | | | 750 | | |
Accrued expenses | | | | | 876,695 | | | | | | 680,026 | | |
SAFE liability | | | | | 3,190,000 | | | | | | 4,824,217 | | |
Warrant liability | | | | | 2,282,719 | | | | | | 4,516,485 | | |
Total current liabilities | | | | | 8,605,126 | | | | | | 10,757,729 | | |
Total liabilities | | | | | 8,605,126 | | | | | | 10,757,729 | | |
Commitments and contingencies (Note 7) | | | | | | | | | | | | | |
Stockholders’ deficit | | | | | | | | | | | | | |
Preferred shares, par value $0.0001; 2,696,439 shares authorized; 2,696,439 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively; aggregate liquidation preference of $2,808,148 | | | | | 270 | | | | | | 270 | | |
Common stock, par value $0.0001; 20,000,000 shares authorized at March 31, 2022 and December 31, 2021; 6,913,492 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | | | | | 691 | | | | | | 691 | | |
Additional paid-in capital | | | | | 9,009,619 | | | | | | 8,828,425 | | |
Accumulated deficit | | | | | (17,074,787) | | | | | | (18,938,249) | | |
Total stockholders’ deficit | | | | | (8,064,207) | | | | | | (10,108,863) | | |
Total liabilities, and stockholders’ deficit | | | | $ | 540,919 | | | | | $ | 648,866 | | |
| | | Three Months Ended March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Operating expenses | | | | | | | | | | | | | |
General and administrative | | | | $ | 933,817 | | | | | $ | 1,286,992 | | |
Research and development | | | | | 1,070,704 | | | | | | 427,955 | | |
Total operating expenses | | | | | 2,004,521 | | | | | | 1,714,947 | | |
Loss from operations | | | | | (2,004,521) | | | | | | (1,714,947) | | |
Other income (expense): | | | | | | | | | | | | | |
Interest expense | | | | | — | | | | | | (2,805,856) | | |
Gain on conversion of notes | | | | | — | | | | | | 59,890 | | |
Change in fair value of SAFE | | | | | 1,634,217 | | | | | | (2,305,967) | | |
Change in fair value warrant liability | | | | | 2,233,766 | | | | | | (453,371) | | |
Total other income (expense) | | | | | 3,867,983 | | | | | | (5,505,304) | | |
Net income (loss) | | | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Basic weighted average number of shares outstanding | | | | | 6,913,492 | | | | | | 5,909,793 | | |
Diluted weighted average number of shares outstanding | | | | | 9,120,412 | | | | | | 5,909,793 | | |
Basic net income (loss) per share | | | | $ | 0.22 | | | | | $ | (1.22) | | |
Diluted net income (loss) per share | | | | $ | 0.16 | | | | | $ | (1.22) | | |
| | | Preferred Stock | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | |||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||
Balance at January 1, 2022 | | | | | 2,696,439 | | | | | $ | 270 | | | | | | 6,913,492 | | | | | $ | 691 | | | | | $ | 8,828,425 | | | | | $ | (18,938,249) | | | | | $ | (10,108,863) | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 181,194 | | | | | | — | | | | | | 181,194 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,863,462 | | | | | | 1,863,462 | | |
Balance at March 31, 2022 | | | | | 2,696,439 | | | | | $ | 270 | | | | | | 6,913,492 | | | | | $ | 691 | | | | | $ | 9,009,619 | | | | | $ | (17,074,787) | | | | | $ | (8,064,207) | | |
| | | Preferred Stock | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | |||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||
Balance at January 1, 2021 | | | | | 2,696,439 | | | | | $ | 270 | | | | | | 5,775,898 | | | | | $ | 578 | | | | | $ | 4,079,891 | | | | | $ | (8,709,278) | | | | | $ | (4,628,539) | | |
Common stock issued in connection with conversion of notes payable | | | | | — | | | | | | — | | | | | | 1,137,594 | | | | | | 113 | | | | | | 3,412,669 | | | | | | — | | | | | | 3,412,782 | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 511,316 | | | | | | — | | | | | | 511,316 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,220,251) | | | | | | (7,220,251) | | |
Balance at March 31, 2021 | | | | | 2,696,439 | | | | | $ | 270 | | | | | | 6,913,492 | | | | | $ | 691 | | | | | $ | 8,003,876 | | | | | $ | (15,929,529) | | | | | $ | (7,924,692) | | |
| | | Three months ended March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | | | | | | | | | | | | | |
Stock-based compensation | | | | | 181,194 | | | | | | 511,316 | | |
Amortization of debt discount | | | | | — | | | | | | 2,550,780 | | |
Change in fair value of SAFE | | | | | (1,634,217) | | | | | | 2,305,967 | | |
Gain on conversion of notes | | | | | — | | | | | | (59,890) | | |
Change in fair value warrant liability | | | | | (2,233,766) | | | | | | 453,371 | | |
Non-cash interest expense | | | | | — | | | | | | 255,076 | | |
Changes in assets and liabilities: | | | | | | | | | | | | | |
Accounts payable | | | | | 1,134,454 | | | | | | 155,332 | | |
Accounts payable – related party | | | | | 97,500 | | | | | | (100,138) | | |
Accrued expenses | | | | | 196,669 | | | | | | 364,119 | | |
Net cash used in operating activities | | | | | (394,704) | | | | | | (784,318) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Proceeds from SAFE investment | | | | | — | | | | | | 5,000,000 | | |
Net cash provided by financing activities | | | | | — | | | | | | 5,000,000 | | |
Net (decrease) increase in cash | | | | | (394,704) | | | | | | 4,215,682 | | |
Cash, beginning of period | | | | | 444,087 | | | | | | 1,123,625 | | |
Cash, end of period | | | | $ | 49,383 | | | | | $ | 5,339,307 | | |
Non-cash financing activities: | | | | | | | | | | | | | |
Common stock issued in connection with conversion of notes payable | | | | $ | — | | | | | $ | 3,412,782 | | |
Unpaid offering costs | | | | $ | 261,657 | | | | | $ | 58,664 | | |
Unpaid financing fees | | | | $ | 25,100 | | | | | $ | — | | |
| | | Three months ended March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Numerator: | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Amount allocated to participating common shareholders(1) | | | | | (361,902) | | | | | | — | | |
Net income (loss) allocated to common shareholders | | | | $ | 1,501,560 | | | | | $ | (7,220,251) | | |
Denominator: | | | | | | | | | | | | | |
Basic weighted average number of shares outstanding | | | | | 6,913,492 | | | | | | 5,909,793 | | |
Add: | | | | | | | | | | | | | |
Warrants | | | | | 649,486 | | | | | | — | | |
Conversion of preferred stock | | | | | 1,557,435 | | | | | | — | | |
Diluted weighted average number of shares outstanding | | | | | 9,120,412 | | | | | | 5,909,793 | | |
Basic net income (loss) per share | | | | $ | 0.22 | | | | | $ | (1.22) | | |
Diluted net income (loss) per share | | | | $ | 0.16 | | | | | $ | (1.22) | | |
| | | March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Preferred stock | | | | | — | | | | | | 1,557,435 | | |
Unvested restricted stock units | | | | | 1,342,666 | | | | | | 1,377,999 | | |
Common stock warrants | | | | | 384,690 | | | | | | 1,034,176 | | |
SAFE investment | | | | | 414,808 | | | | | | 641,437 | | |
Total | | | | | 2,142,164 | | | | | | 4,611,047 | | |
| | | Three months ended March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Dividend yield | | | | | 0% | | | | | | 0% | | |
Expected price volatility | | | | | 50.0% | | | | | | 50.0% | | |
Risk free interest rate | | | | | 1.35% | | | | | | 0.09% | | |
Expected term (in years) | | | | | 0.8 | | | | | | 1.3 | | |
| | | Three months ended March 31, | | |||
| | | 2022 | | | 2021 | |
Dividend yield | | | 0% | | | 0% | |
Expected price volatility | | | 95.9 – 105.0% | | | 104.0 – 112.1% | |
Risk free interest rate | | | 0.69% – 2.44% | | | 0.06% – 0.81% | |
Expected term (in years) | | | 0.3 – 4 | | | 1 – 5 | |
| | | Fair value measured at March 31, 2022 | | |||||||||||||||||||||
| | | Total carrying value at March 31, 2022 | | | Quoted prices in active markets (Level 1) | | | Significant other observable inputs (Level 2) | | ��� | Significant unobservable inputs (Level 3) | | ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
SAFE liability | | | | $ | 3,190,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,190,000 | | |
Warrant liability | | | | $ | 2,282,719 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,282,719 | | |
| | | Fair value measured at December 31, 2021 | | |||||||||||||||||||||
| | | Total carrying value at December 31, 2021 | | | Quoted prices in active markets (Level 1) | | | Significant other observable inputs (Level 2) | | | Significant unobservable inputs (Level 3) | | ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
SAFE liability | | | | $ | 4,824,217 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,824,217 | | |
Warrant liability | | | | $ | 4,516,485 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,516,485 | | |
| | | SAFE Liability | | | Warrant Liability | | ||||||
Balance at December 31, 2021 | | | | $ | 4,824,217 | | | | | $ | 4,516,485 | | |
Change in fair value | | | | | (1,634,217) | | | | | | (2,233,766) | | |
Balance at March 31, 2022 | | | | $ | 3,190,000 | | | | | $ | 2,282,719 | | |
| | | March 31, 2022 | | | December 31, 2021 | | ||||||
| | | (Unaudited) | | | | | | | | |||
Employee and related expenses | | | | $ | 815,691 | | | | | $ | 680,026 | | |
Professional fees | | | | | 56,104 | | | | | | — | | |
Research and development | | | | | 4,900 | | | | | | — | | |
Total accrued expenses | | | | $ | 876,695 | | | | | $ | 680,026 | | |
| | | Number of Shares | | | Weighted Average Grant-Date Fair Value | | ||||||
Unvested as of December 31, 2021 | | | | | — | | | | | $ | — | | |
Granted | | | | | 1,342,666 | | | | | $ | 10.87 | | |
Unvested as of March 31, 2022 | | | | | 1,342,666 | | | | | $ | 10.87 | | |
| SEC Filing Fee | | | | $ | 2,666 | | |
| FINRA Fee | | | | $ | 4,813 | | |
| Underwriter Legal Fees and Expenses | | | | $ | | | |
| Nasdaq Fee | | | | $ | | | |
| Printing Expenses | | | | $ | | | |
| Accounting Fees and Expenses | | | | $ | | | |
| Legal Fees and Expenses | | | | $ | | | |
| Transfer Agent and Registrar Expenses | | | | $ | | | |
| Miscellaneous | | | | $ | | | |
| Total | | | | $ | | | |
Exhibit No. | | | Description of Document | |
1.1 | | | Form of Underwriting Agreement** | |
3.1 | | | | |
3.2 | | | Form of Amended and Restated Certificate of Incorporation of PaxMedica, Inc., to be effective upon completion of this offering*** | |
3.3 | | | | |
3.4 | | | | |
3.5 | | | | |
4.1 | | | | |
4.2 | | | | |
4.3 | | | Form of Representative Warrant** | |
5.1 | | | Opinion of | |
| | | | PAXMEDICA, INC. | |
| | | | /s/ Howard J. Weisman Howard J. Weisman | |
| | | | Chief Executive Officer | |
| | | | (Principal Executive Officer) | |
| Signature | | | Title | | | Date | |
| /s/ Howard J. Weisman Howard J. Weisman | | | Chief Executive Officer and Director (Principal Executive Officer) | | | | |
| /s/ | | | Chief (Principal Financial and Accounting Officer) | | | | |
| * Zachary Rome | | | Chief Operating Officer and Director | | | ||
| ||||||||
| * Michael Derby | | | Executive Chairman and Director | | | ||
| ||||||||
| * Karen LaRochelle | | | Director | | | | |
| | | | Director | | | ||
|
| *By: | | | | |