Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2020 | Feb. 10, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2020 | |
Entity File Number | 333-88480 | |
Entity Registrant Name | NEUBASE THERAPEUTICS, INC. | |
Entity Incorporation, State Code | DE | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Trading Symbol | NBSE | |
Security Exchange Name | NASDAQ | |
Entity's Reporting Status Current | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 23,180,024 | |
Entity Central Index Key | 0001173281 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 27,976,770 | $ 31,992,283 |
Prepaid insurance | 381,067 | 521,617 |
Other prepaid expenses and current assets | 460,322 | 294,640 |
Total Current Assets | 28,818,159 | 32,808,540 |
EQUIPMENT, net | 1,292,388 | 1,166,934 |
OTHER ASSETS | ||
Investment | 298,145 | 323,557 |
Long-term prepaid insurance | 96,833 | 145,250 |
Security Deposit | 253,565 | |
Total Other Assets | 648,543 | 468,807 |
TOTAL ASSETS | 30,759,090 | 34,444,281 |
CURRENT LIABILITIES | ||
Accounts payable | 1,177,955 | 1,505,042 |
Accrued expenses and other current liabilities | 743,848 | 555,883 |
Warrant liabilities | 320,039 | 950,151 |
Insurance note payable | 138,557 | |
Total Liabilities | 2,241,842 | 3,149,633 |
COMMITMENTS AND CONTINGENCIES | ||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding as of December 31, 2020 and September 30, 2020 | 0 | 0 |
Common stock, $0.0001 par value; 250,000,000 shares authorized; 23,177,591 and 23,154,084 shares issued and outstanding as of December 31,2020 and September 30, 2020, respectively | 2,317 | 2,315 |
Additional paid-in capital | 76,139,964 | 74,850,935 |
Accumulated deficit | (47,625,033) | (43,558,602) |
Total stockholders' equity | 28,517,248 | 31,294,648 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 30,759,090 | $ 34,444,281 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Sep. 30, 2020 |
Condensed Consolidated Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 250,000,000 | 250,000,000 |
Common stock, issued | 23,177,591 | 23,154,084 |
Common stock, outstanding | 23,177,591 | 23,154,084 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
OPERATING EXPENSES | ||
General and administrative | $ 2,641,470 | $ 2,554,680 |
Research and development | 2,019,924 | 1,227,686 |
TOTAL OPERATING EXPENSES | 4,661,394 | 3,782,366 |
LOSS FROM OPERATIONS | (4,661,394) | (3,782,366) |
OTHER INCOME (EXPENSE) | ||
Interest expense | (9,737) | (1,311) |
Change in fair value of warrant liabilities | 630,112 | (694,134) |
Loss on disposal of fixed asset | 0 | (3,230) |
Equity in losses on equity method investment | (25,412) | (24,509) |
Total other income (expenses), net | 594,963 | (723,184) |
NET LOSS | $ (4,066,431) | $ (4,505,550) |
BASIC AND DILUTED LOSS PER SHARE (in dollars per share) | $ (0.18) | $ (0.26) |
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||
BASIC AND DILUTED | 23,174,168 | 17,071,678 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance, beginning at Sep. 30, 2019 | $ 1,708 | $ 36,201,758 | $ (26,174,082) | $ 10,029,384 |
Balance, beginning, shares at Sep. 30, 2019 | 17,077,873 | |||
Stock-based compensation expense | 1,504,226 | 1,504,226 | ||
Net loss | (4,505,550) | (4,505,550) | ||
Balance, ending at Dec. 31, 2019 | $ 1,708 | 37,705,984 | (30,679,632) | 7,028,060 |
Balance, ending, shares at Dec. 31, 2019 | 17,077,873 | |||
Balance, beginning at Sep. 30, 2020 | $ 2,315 | 74,850,935 | (43,558,602) | $ 31,294,648 |
Balance, beginning, shares at Sep. 30, 2020 | 23,154,084 | 23,154,084 | ||
Stock-based compensation expense | $ 0 | 1,176,585 | 0 | $ 1,176,585 |
Issuance of restricted stock for services (in shares) | 1,931 | |||
Exercise of stock options | $ 2 | 112,444 | $ 112,446 | |
Exercise of stock options (in shares) | 21,576 | 21,576 | ||
Net loss | $ 0 | 0 | (4,066,431) | $ (4,066,431) |
Balance, ending at Dec. 31, 2020 | $ 2,317 | $ 76,139,964 | $ (47,625,033) | $ 28,517,248 |
Balance, ending, shares at Dec. 31, 2020 | 23,177,591 | 23,177,591 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (4,066,431) | $ (4,505,550) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Stock-based compensation | 1,176,585 | 1,504,226 |
Change in fair value of warrant liabilities | (630,112) | 694,134 |
Depreciation and amortization | 68,117 | 149,746 |
Loss on disposal of fixed asset | 0 | 3,230 |
Equity in losses on equity method investment | 25,412 | 24,509 |
Loss on marketable securities | 14,970 | 0 |
Changes in operating assets and liabilities | ||
Prepaid insurance, other expenses and current assets | (25,132) | (86,880) |
Long-term prepaid insurance | 48,417 | 48,417 |
Security Deposit | (253,565) | 0 |
Accounts payable | (327,087) | (110,641) |
Accrued expenses and other current liabilities | 187,965 | (162,677) |
Net cash used in operating activities | (3,780,861) | (2,441,486) |
Cash flows from investing activities | ||
Purchase of laboratory and office equipment | (193,571) | (68,400) |
Purchase of marketable securities | (15,003,771) | 0 |
Sale of marketable securities | 14,988,801 | 0 |
Net cash used in investing activities | (208,541) | (68,400) |
Cash flows from financing activities | ||
Principal payment of financed insurance | (138,557) | (73,426) |
Proceeds from exercise of stock options | 112,446 | 0 |
Net cash used in financing activities | (26,111) | (73,426) |
Net decrease in cash and cash equivalents | (4,015,513) | (2,583,312) |
Cash and cash equivalents, beginning of period | 31,992,283 | 10,313,966 |
Cash and cash equivalents, end of period | 27,976,770 | 7,730,654 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 10,400 | 1,326 |
Cash paid for income taxes | $ 0 | $ 0 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Dec. 31, 2020 | |
Organization and Description of Business | |
Organization and Description of Business | 1. Organization and Description of Business NeuBase Therapeutics, Inc. and subsidiaries (the “Company” or “NeuBase”) is developing a modular peptide-nucleic acid (“PNA”) antisense oligo (“PATrOL™”) platform to address genetic diseases caused by mutant proteins, with a single, cohesive approach. The PATrOL™-enabled anti-gene therapies are designed to improve upon current genetic medicine strategies by combining the advantages of synthetic approaches with the precision of antisense technologies. NeuBase plans to use its platform to address diseases which have a genetic source, with an initial focus on Huntington’s Disease (“HD”) and Myotonic Dystrophy Type 1 (“DM1”), as well as other genetic disorders and cancer. NeuBase is a pre-clinical-stage biopharmaceutical company and continues to develop its clinical and regulatory strategy with its internal research and development team with a view toward prioritizing market introduction as quickly as possible. NeuBase’s lead programs are NT0100 and NT0200. The NT0100 program is a PATrOL™-enabled therapeutic program being developed to target the mutant expansion in the HD messenger ribonucleic acid (“RNA”). The NT0100 program includes several proprietary PNAs which have the potential to be highly selective for the mutant transcript vs. the wild-type transcribed allele and the expectation to be applicable for all HD patients as it directly targets the expansion itself, and has the potential to be delivered systemically. PATrOL™-enabled drugs also have the unique ability to open RNA secondary structures and bind to either the primary nucleotide sequences or the secondary and/or tertiary structures. NeuBase believes the NT0100 program addresses an unmet need for a disease which currently has no effective therapeutics that target the core etiology of the condition. NeuBase believes there is a large opportunity in the U.S. and European markets for drugs in this space. The NT0200 program is a PATrOL™-enabled therapeutic program being developed to target the mutant expansion in the DM1 disease mRNA. The NT0200 program includes several proprietary PNAs which have the potential to be highly selective for the mutant transcript versus the wild-type transcribed allele and the expectation to be effective for nearly all DM1 patients as it directly targets the expansion itself. NeuBase believes the NT0200 program addresses an unmet need for a disease which currently has no effective therapeutics that target the core etiology of the condition. NeuBase believes there is also a large opportunity in the U.S. and European markets for drugs in this space. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto as of and for the year ended September 30, 2020 included in the Company’s Annual Report on Form 10-K (the “Annual Report”) filed with the SEC on December 23, 2020. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated during the consolidation process. The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, the accompanying unaudited condensed consolidated financial statements for the periods presented reflect all adjustments, consisting of only normal, recurring adjustments, necessary to fairly state the Company’s financial position, results of operations and cash flows. The unaudited condensed consolidated financial statements for the interim periods are not necessarily indicative of results for the full year. The preparation of these unaudited condensed consolidated financial statements requires the Company to make estimates and judgments that affect the amounts reported in the financial statements and the accompanying notes. The Company’s actual results may differ from these estimates under different assumptions or conditions. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. The most significant estimates in the Company’s unaudited condensed consolidated financial statements relate to the valuation of stock-based compensation, the fair value of warrant liabilities and the valuation allowance of deferred tax assets resulting from net operating losses. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. The Company assesses and updates estimates each period to reflect current information, such as the economic considerations related to the impact that the novel coronavirus disease (COVID-19) could have on our significant accounting estimates (see Part II, Item 1A – Risk Factors—“ Our operations may be adversely affected by the coronavirus outbreak, and we face risks that could impact our business ” for further discussion of the effect of the COVID-19 pandemic on our operations). Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected. Fair Value Measurements Fair value measurements are based on the premise that fair value is an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the following three-tier fair value hierarchy has been used in determining the inputs used in measuring fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities on the reporting date. Level 2 – Pricing inputs are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Pricing inputs are generally unobservable and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require management’s judgment or estimation of assumptions that market participants would use in pricing the assets or liabilities. The fair values are therefore determined using factors that involve considerable judgment and interpretations, including but not limited to private and public comparables, third-party appraisals, discounted cash flow models, and fund manager estimates. Financial instruments measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Management’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The use of different assumptions and/or estimation methodologies may have a material effect on estimated fair values. Accordingly, the fair value estimates disclosed or initial amounts recorded may not be indicative of the amount that the Company or holders of the instruments could realize in a current market exchange. Marketable Securities Marketable securities are classified as trading and are carried at fair value. The Company’s marketable securities consist of corporate bonds and highly liquid mutual funds and exchange-traded & closed-end funds which are valued at quoted market prices. The Company had no marketable securities as of December 31, 2020 and September 30, 2020. Net Loss Per Share Basic net loss per share is computed by dividing net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted net loss per share includes the dilutive effect, if any, from the potential exercise or conversion of securities, such as convertible debt, warrants and stock options that would result in the issuance of incremental shares of common stock. In computing the basic and diluted net loss per share applicable to common stockholders, the weighted average number of shares remains the same for both calculations due to the fact that when a net loss exists, dilutive shares are not included in the calculation as the impact is anti-dilutive. The following potentially dilutive securities outstanding as of December 31, 2020 and 2019 have been excluded from the computation of diluted weighted average shares outstanding, as they would be anti-dilutive: As of December 31, 2020 2019 Common stock purchase options 6,633,554 6,466,966 Unvested restricted stock — 5,000 Common stock purchase warrants 820,939 715,939 7,454,493 7,187,905 Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). This guidance introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. ASU 2016-13 also provides updated guidance regarding the impairment of available-for-sale debt securities and includes additional disclosure requirements. The new guidance is effective for public business entities that meet the definition of a Smaller Reporting Company as defined by the Securities and Exchange Commission for interim and annual periods beginning after December 15, 2022. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. |
Liquidity and Going Concern
Liquidity and Going Concern | 3 Months Ended |
Dec. 31, 2020 | |
Liquidity and Going Concern | |
Liquidity and Going Concern | 3. Liquidity and Going Concern The Company has had no revenues from product sales and has incurred operating losses since inception. As of December 31, 2020, the Company had $28.0 million in cash and cash equivalents and during the three months ended December 31, 2020, incurred a loss from operations of $4.7 million and used $3.8 million of cash in operating activities. The accompanying unaudited condensed consolidated financial statements have been prepared assuming the Company will continue to operate as a going concern, which contemplates the realization of assets and settlement of liabilities in the normal course of business, and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from uncertainty related to its ability to continue as a going concern. The Company’s future liquidity and capital funding requirements will depend on numerous factors, including: · its ability to raise additional funds to finance its operations; · its ability to maintain compliance with the listing requirements of The Nasdaq Capital Market (“Nasdaq”); · the outcome, costs and timing of preclinical and clinical trial results for the Company’s current or future product candidates; · the extent and amount of any indemnification claims; · litigation expenses and the extent and amount of any indemnification claims; · the emergence and effect of competing or complementary products; · its ability to maintain, expand and defend the scope of its intellectual property portfolio, including the amount and timing of any payments the Company may be required to make, or that it may receive, in connection with the licensing, filing, prosecution, defense and enforcement of any patents or other intellectual property rights; · its ability to retain its current employees and the need and ability to hire additional management and scientific and medical personnel; · the trading price of its common stock; and · its ability to increase the number of authorized shares outstanding to facilitate future financing events. The Company will likely need to raise substantial additional funds through one or more of the following: issuance of additional debt or equity, or complete a licensing transaction for one or more of the Company’s pipeline assets. If the Company is unable to maintain sufficient financial resources, its business, financial condition and results of operations will be materially and adversely affected. This could affect future development and business activities and potential future clinical studies and/or other future ventures. Failure to obtain additional equity or debt financing will have a material, adverse impact on the Company’s business operations. There can be no assurance that the Company will be able to obtain the needed financing on acceptable terms or at all. Additionally, equity or debt financings will likely have a dilutive effect on the holdings of the Company’s existing stockholders. The Company expects to incur substantial operating losses and negative cash flows from operations for the foreseeable future. Accordingly, there are material risks and uncertainties that raise substantial doubt about the Company’s ability to continue as a going concern. |
Other Prepaid Expenses and Curr
Other Prepaid Expenses and Current Assets | 3 Months Ended |
Dec. 31, 2020 | |
Other Prepaid Expenses and Current Assets | |
Other Prepaid Expenses and Current Assets | 4. Other Prepaid Expenses and Current Assets The Company’s prepaid expenses and current assets consisted of the following: As of December 31, As of September 30, 2020 2020 Prepaid research and development expense $ 106,645 $ 205,641 Prepaid rent 301,481 — Other prepaid expenses and other current assets 52,196 88,999 Total $ 460,322 $ 294,640 |
Equipment
Equipment | 3 Months Ended |
Dec. 31, 2020 | |
Equipment | |
Equipment | 5. Equipment The Company’s equipment consisted of the following: As of December 31, As of September 30, Estimated useful 2020 2020 life (in years) Laboratory equipment $ 1,498,094 $ 1,319,123 5 Office equipment 21,077 6,477 3 Total 1,519,171 1,325,600 Accumulated depreciation (226,783) (158,666) Property, plant and equipment, net $ 1,292,388 $ 1,166,934 Depreciation expense for the three months ended December 31, 2020 and 2019 was approximately $0.07 million and $0.03 million, respectively. |
Investment
Investment | 3 Months Ended |
Dec. 31, 2020 | |
Investment | |
Investment | 6. Investment The Company owns common and preferred shares of DepYmed, Inc. (“DepYmed”), which in aggregate represents approximately 15% ownership of DepYmed. In addition, the Company is entitled to hold two of the six seats on DepYmed’s board of directors. The Company accounts for its investment in DepYmed common shares using the equity method of accounting and records its proportionate share of DepYmed’s net income and losses in the accompanying unaudited condensed consolidated statements of operations. Equity in losses for the three months ended December 31, 2020 and 2019 were approximately $0.03 million and $0.02 million, respectively. The Company accounts for its investment in preferred shares of DepYmed at cost, less any impairment, as the Company determined the preferred stock did not have a readily determinable fair value. As of both December 31, 2020 and September 30, 2020, the carrying amount of the Company’s aggregate investment in DepYmed was $0.3 million. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Dec. 31, 2020 | |
Accrued Expenses and Other Current Liabilities | |
Accrued Expenses and Other Current Liabilities | 7. Accrued Expenses and Other Current Liabilities The Company’s accrued expenses and other current liabilities consisted of the following: As of December 31, As of September 30, 2020 2020 Accrued compensation and benefits $ 57,274 $ 88,527 Accrued professional fees 407,235 241,755 Accrued research and development 40,656 41,313 Accrued franchise tax 194,831 155,865 Other accrued expenses 43,852 28,423 Total $ 743,848 $ 555,883 |
Fair Value
Fair Value | 3 Months Ended |
Dec. 31, 2020 | |
Fair Value | |
Fair Value | 8. Fair Value The following tables present the Company’s fair value hierarchy for its warrant liabilities measured at fair value on a recurring basis at December 31, 2020 and September 30, 2020: Fair Value Measurements as of December 31, 2020 (Level 1) (Level 2) (Level 3) Total Liabilities Warrant liabilities $ — — 320,039 $ 320,039 Fair Value Measurements as of September 30, 2020 (Level 1) (Level 2) (Level 3) Total Liabilities Warrant liabilities $ — — 950,151 $ 950,151 The fair value of the warrant liabilities were determined using the Black-Scholes option pricing model. The following assumptions were used in determining the fair value of the warrant liabilities : As of December 31, 2020 2019 Remaining contractual term (years) 1 - 1.3 2.0- 2.3 Common stock price volatility 73.9% 84.9% - 86.2% Risk-free interest rate 0.1% 1.58% - 1.63% The Company was historically a private company and lacked company-specific historical and implied volatility information, therefore the Company estimated its expected stock volatility based on the historical volatility of a set of publicly traded peer companies. During the three months ended December 31, 2020, the Company utilized its historical volatility in the valuation of warrant liabilities as it had sufficient trading history. The change in fair value of the warrant liabilities for the three months ended December 31,2020 and 2019 is as follows: Fair value as of September 30, 2020 $ 950,151 Change in fair value (630,112) Fair value as of December 31, 2020 $ 320,039 Fair value as of September 30, 2019 $ 496,343 Change in fair value 694,134 Fair value as of December 31, 2019 $ 1,190,477 As of December 31, 2020 and September 30, 2020, the recorded values of cash and cash equivalents, accounts payable and the insurance note payable approximate fair value due to the short-term nature of these instruments. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity | |
Stockholders' Equity | 9. Stockholders’ Equity Warrants Below is a summary of the Company’s issued and outstanding warrants as of December 31, 2020: Warrants Expiration date Exercise Price Outstanding December 13, 2021 $ 55.00 20,627 April 10, 2022 20.00 695,312 July 6, 2023 8.73 105,000 820,939 Weighted Weighted Average Average Remaining Exercise Contractual Life Warrants Price (in years) Outstanding as of September 30, 2020 820,939 $ 19.44 Outstanding as of December 31, 2020 820,939 $ 19.44 Exercisable as of December 31, 2020 803,439 $ 19.67 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Dec. 31, 2020 | |
Stock-Based Compensation | |
Stock-Based Compensation | 10. Stock-Based Compensation As of December 31, 2020, an aggregate of 4,709,277 shares of common stock were authorized under the Company’s 2019 Stock Incentive Plan (the “2019 Plan”), subject to an “evergreen” provision that will automatically increase the maximum number of shares of common stock that may be issued under the term of the 2019 Plan. As of December 31, 2020, 1,216,719 common shares were available for future grants under the 2019 Plan. As of December 31, 2020, 291,667 shares of common stock were authorized under the Company’s 2016 Consolidated Stock Incentive Plan (the “2016 Plan”) and 147,041 common shares were available for future grants under the 2016 Plan. The Company recorded stock-based compensation expense in the following expense categories of its unaudited condensed consolidated statements of operations for the three months ended December 31, 2020 and 2019: Three Months ended December 31, 2020 2019 General and administrative $ 842,279 $ 1,113,111 Research and development 334,306 391,115 Total $ 1,176,585 $ 1,504,226 Stock Options Below is a table summarizing the options issued and outstanding as of and for the three months ended December 31, 2020: Weighted Weighted Average Total Average Remaining Aggregate Exercise Contractual Life Intrinsic Stock Options Price (in years) Value Outstanding at September 30, 2020 6,190,790 $ 2.76 Granted 494,340 7.42 Exercised (21,576) 5.21 Forfeited (30,000) 4.80 Outstanding at December 31, 2020 6,633,554 3.09 8.3 $ 27,071,221 Exercisable as of December 31, 2020 4,409,572 $ 1.51 8.0 $ 24,843,446 As of December 31, 2020, unrecognized compensation costs associated with the stock options of $5.8 million will be recognized over an estimated weighted-average amortization period of 1.4 years. The weighted average grant date fair value of options granted during the three months ended December 31, 2020 and 2019 was $5.20 and $4.78, respectively. Key assumptions used to estimate the fair value of the stock options granted during the three months ended December 31, 2020 and 2019 included: Three Months ended December 31, 2020 2019 Expected term of options (years) 6.0 7.0 Expected common stock price volatility 83.1% - 83.3% 78% - 81.1% Risk-free interest rate 0.6% - 0.7% 1.7% - 1.8% Expected dividend yield — — During the three months ended December 31, 2020, the Company granted a stock option to purchase 225,000 shares to a consultant in recognition of future service to the Company as an employee. The exercisability and vesting of the stock options are subject to the consultant's effective date of employment with the Company, which has not yet occurred as of December 31, 2020, and as a result, the grant-date of such option has not occurred under GAAP. Therefore, the number and fair value of the shares subject to this option are not reflected in the table summarizing the options issued and outstanding as of and for the three months ended December 31, 2020, and did not have impact on unrecognized compensation costs or the estimated weighted-average amortization period above as of December 31, 2020. Restricted Stock A summary of the changes in the unvested restricted stock during the three months ended December 31, 2020 is as follows: Weighted Average Grant Date Unvested Restricted Fair Value Stock Price Unvested as of September 30, 2020 — $ — Granted 1,931 9.06 Vested (1,931) 9.06 Unvested as of December 31, 2020 — $ — |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 11. Commitments and Contingencies Operating Leases In October 2020, the Company entered into a ten-year lease agreement with annual escalating rental payments for office and laboratory space in Pittsburgh, Pennsylvania. The leased premises will serve as the Company’s headquarters upon the commencement of the lease. The initial term of the lease commences upon the landlord’s delivery of the leased premises in tenant improvement readiness condition. The initial term of the lease will extend approximately ten years from delivery of the leased premises to the Company, unless earlier terminated in accordance with the lease. The Company has the right to extend the term of the lease for an additional five-year term. Under the lease, the Company will lease approximately 14,189 square feet of the property. Pursuant to an amendment of the lease agreement during December 2020, the Company will pay an escalating base rent over the life of the lease of approximately $66,000 to $73,000 per month, and the Company will pay its pro rata portion of property expenses and operating expenses for the property. The Company will measure and recognize the ROU asset and operating lease liability upon lease commencement. During the three months ended December 31, 2020, the Company prepaid rent of $0.3 million and paid a security deposit of $0.3 million for this lease agreement. As of December 31, 2020, the lease has not yet commenced, and the Company estimates that the commencement will be in the second calendar quarter of 2021. The Company currently leases its existing office and operating space under operating leases with original terms of less than 12 months and which expire at various dates through November 2021; therefore, the Company’s operating leases are not recognized as ROU assets on the unaudited condensed consolidated balance sheet as of December 31, 2020. Rent expense under the Company’s operating leases totaled approximately $0.03 million and $0.02 million for the three months ended December 31, 2020 and 2019, respectively. The Company continues to operate under its current operating lease in Pittsburgh on a month-to-month basis and will continue to operate under the lease until the Company’s new headquarters and laboratory space is available for use. All terms and conditions remain the same from the current lease. In November 2020, the Company extended the term of its rental of office space in New York until November 2021. Litigation The Company has become involved in certain legal proceedings and claims which arise in the normal course of business. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the Company’s results of operations, prospects, cash flows, financial position and brand. On February 14, 2018, plaintiff Jeevesh Khanna, commenced an action in the Southern District of New York, against Ohr and several current and former officers and directors, alleging that they violated federal securities laws between June 24, 2014 and January 4, 2018. On August 7, 2018, the lead plaintiffs, now George Lehman and Insured Benefit Plans, Inc., filed an amended complaint, stating the class period to be April 8, 2014 through January 4, 2018. The plaintiffs did not quantify any alleged damages in their complaint but, in addition to attorneys’ fees and costs, they seek to maintain the action as a class action and to recover damages on behalf of themselves and other persons who purchased or otherwise acquired Ohr common stock during the putative class period and purportedly suffered financial harm as a result. The Company and the individuals dispute these claims and intend to defend the matter vigorously. On September 17, 2018, Ohr filed a motion to dismiss the complaint. On September 20, 2019, the district court entered an order granting the defendants’ motion to dismiss. On October 23, 2019, the plaintiffs filed a notice of appeal of that order dismissing the action and other related orders by the district court. After full briefing and oral argument, on October 9, 2020, the U.S. Court of Appeals for the Second Circuit issued a summary order affirming the district court’s order granting the motion to dismiss and remanding the action to the district court to make a determination on the record related to plaintiffs’ request for leave to file an amended complaint. On October 16, 2020, the district court requested the parties’ positions as to how they proposed to proceed in light of the Second Circuit’s decision. After letter briefing on this issue and plaintiffs’ alternative request for leave to file a second amended complaint, on November 16, 2020, the district court denied plaintiffs’ request to amend and dismissed with prejudice plaintiffs’ claims. On December 16, 2020, plaintiffs filed a notice of appeal of that order denying plaintiffs leave to amend, and on January 13, 2021, the Second Circuit entered a schedule for plaintiffs-appellants’ opening brief to be filed by March 31, 2021. This litigation could result in substantial costs and a diversion of management’s resources and attention, which could harm the Company’s business and the value of its common stock. On May 3, 2018, plaintiff Adele J. Barke, derivatively on behalf of Ohr, commenced an action against certain former directors of Ohr, including Michael Ferguson, Orin Hirschman, Thomas M. Riedhammer, June Almenoff and Jason S. Slakter in the Supreme Court, State of New York, alleging that the action was brought in the right and for the benefit of Ohr seeking to remedy their “breach of fiduciary duties, corporate waste and unjust enrichment that occurred between June 24, 2014 and the present.” It does not quantify any alleged damages. The Company and the individuals dispute these claims and intend to defend the matter vigorously. Such litigation has been stayed pursuant to a stipulation by the parties, which has been so ordered by the court, pending a decision in the Southern District case on the motion to dismiss, but that status could change. This litigation could result in substantial costs and a diversion of management’s resources and attention, which could harm the Company’s business and the value of its common stock. On March 20, 2019, a putative class action lawsuit was filed in the United States District Court for District of Delaware naming as defendants Ohr and its board of directors, Legacy NeuBase, and Merger Sub, captioned Wheby v. Ohr Pharmaceutical, Inc., et al ., Case No. 1:19-cv-00541-UNA (the “Wheby Action”). The plaintiffs in the Wheby Action allege that the preliminary joint proxy/prospectus statement filed by Ohr with the Securities and Exchange Commission (“SEC”) on March 8, 2019 contained false and misleading statements and omitted material information in violation of Section 14(a) of the Securities Exchange Act and SEC Rule 14a-9 promulgated thereunder, and further that the individual defendants are liable for those alleged misstatements and omissions under Section 20(a) of the Exchange Act. The complaint in the Wheby Action has not been served on, nor was service waived by, any of the named defendants in that action. The action seeks, among other things, to rescind the Ohr Acquisition or an award of damages, and an award of attorneys’ and experts’ fees and expenses. The defendants dispute the claims raised in the Wheby Action. Management believes that the likelihood of an adverse decision from the sole remaining action is unlikely; however, the litigation could result in substantial costs and a diversion of management’s resources and attention, which could harm the Company’s business and the value of its common stock. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2020 | |
Subsequent Events | |
Subsequent Events | 12. Subsequent Events On January 27, 2021, the Company entered into an Asset Purchase Agreement by and among the Company, NeuBase Corporation, the Company’s wholly-owned subsidiary, and Vera Therapeutics, Inc. (“Vera”). Pursuant to the terms of the Asset Purchase Agreement, the Company expects to acquire infrastructure, programs and intellectual property for several peptide-nucleic acid (PNA) scaffolds from Vera for total consideration of approximately $3.7 million, consisting of cash and a number of shares of the Company’s common stock to be determined at the closing of the acquisition. The transaction is expected to close in the first calendar quarter of 2021. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto as of and for the year ended September 30, 2020 included in the Company’s Annual Report on Form 10-K (the “Annual Report”) filed with the SEC on December 23, 2020. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated during the consolidation process. The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, the accompanying unaudited condensed consolidated financial statements for the periods presented reflect all adjustments, consisting of only normal, recurring adjustments, necessary to fairly state the Company’s financial position, results of operations and cash flows. The unaudited condensed consolidated financial statements for the interim periods are not necessarily indicative of results for the full year. The preparation of these unaudited condensed consolidated financial statements requires the Company to make estimates and judgments that affect the amounts reported in the financial statements and the accompanying notes. The Company’s actual results may differ from these estimates under different assumptions or conditions. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. The most significant estimates in the Company’s unaudited condensed consolidated financial statements relate to the valuation of stock-based compensation, the fair value of warrant liabilities and the valuation allowance of deferred tax assets resulting from net operating losses. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. The Company assesses and updates estimates each period to reflect current information, such as the economic considerations related to the impact that the novel coronavirus disease (COVID-19) could have on our significant accounting estimates (see Part II, Item 1A – Risk Factors—“ Our operations may be adversely affected by the coronavirus outbreak, and we face risks that could impact our business ” for further discussion of the effect of the COVID-19 pandemic on our operations). Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected. |
Fair Value Measurements | Fair Value Measurements Fair value measurements are based on the premise that fair value is an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the following three-tier fair value hierarchy has been used in determining the inputs used in measuring fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities on the reporting date. Level 2 – Pricing inputs are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Pricing inputs are generally unobservable and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require management’s judgment or estimation of assumptions that market participants would use in pricing the assets or liabilities. The fair values are therefore determined using factors that involve considerable judgment and interpretations, including but not limited to private and public comparables, third-party appraisals, discounted cash flow models, and fund manager estimates. Financial instruments measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Management’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The use of different assumptions and/or estimation methodologies may have a material effect on estimated fair values. Accordingly, the fair value estimates disclosed or initial amounts recorded may not be indicative of the amount that the Company or holders of the instruments could realize in a current market exchange. |
Marketable Securities | Marketable Securities Marketable securities are classified as trading and are carried at fair value. The Company’s marketable securities consist of corporate bonds and highly liquid mutual funds and exchange-traded & closed-end funds which are valued at quoted market prices. The Company had no marketable securities as of December 31, 2020 and September 30, 2020. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted net loss per share includes the dilutive effect, if any, from the potential exercise or conversion of securities, such as convertible debt, warrants and stock options that would result in the issuance of incremental shares of common stock. In computing the basic and diluted net loss per share applicable to common stockholders, the weighted average number of shares remains the same for both calculations due to the fact that when a net loss exists, dilutive shares are not included in the calculation as the impact is anti-dilutive. The following potentially dilutive securities outstanding as of December 31, 2020 and 2019 have been excluded from the computation of diluted weighted average shares outstanding, as they would be anti-dilutive: As of December 31, 2020 2019 Common stock purchase options 6,633,554 6,466,966 Unvested restricted stock — 5,000 Common stock purchase warrants 820,939 715,939 7,454,493 7,187,905 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). This guidance introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. ASU 2016-13 also provides updated guidance regarding the impairment of available-for-sale debt securities and includes additional disclosure requirements. The new guidance is effective for public business entities that meet the definition of a Smaller Reporting Company as defined by the Securities and Exchange Commission for interim and annual periods beginning after December 15, 2022. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies | |
Schedule of anti dilutive securities excluded from the computation of diluted weighted average shares | As of December 31, 2020 2019 Common stock purchase options 6,633,554 6,466,966 Unvested restricted stock — 5,000 Common stock purchase warrants 820,939 715,939 7,454,493 7,187,905 |
Other Prepaid Expenses and Cu_2
Other Prepaid Expenses and Current Assets (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Other Prepaid Expenses and Current Assets | |
Summary of other prepaid expenses and current assets | As of December 31, As of September 30, 2020 2020 Prepaid research and development expense $ 106,645 $ 205,641 Prepaid rent 301,481 — Other prepaid expenses and other current assets 52,196 88,999 Total $ 460,322 $ 294,640 |
Equipment (Tables)
Equipment (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Equipment | |
Schedule of equipment | As of December 31, As of September 30, Estimated useful 2020 2020 life (in years) Laboratory equipment $ 1,498,094 $ 1,319,123 5 Office equipment 21,077 6,477 3 Total 1,519,171 1,325,600 Accumulated depreciation (226,783) (158,666) Property, plant and equipment, net $ 1,292,388 $ 1,166,934 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Accrued Expenses and Other Current Liabilities | |
Schedule of accrued expenses and other current liabilities | As of December 31, As of September 30, 2020 2020 Accrued compensation and benefits $ 57,274 $ 88,527 Accrued professional fees 407,235 241,755 Accrued research and development 40,656 41,313 Accrued franchise tax 194,831 155,865 Other accrued expenses 43,852 28,423 Total $ 743,848 $ 555,883 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Fair Value | |
Schedule of fair value hierarchy for its warrant liabilities measured at fair value | Fair Value Measurements as of December 31, 2020 (Level 1) (Level 2) (Level 3) Total Liabilities Warrant liabilities $ — — 320,039 $ 320,039 Fair Value Measurements as of September 30, 2020 (Level 1) (Level 2) (Level 3) Total Liabilities Warrant liabilities $ — — 950,151 $ 950,151 |
Schedule of assumptions were used in determining the fair value of the warrant liabilities | As of December 31, 2020 2019 Remaining contractual term (years) 1 - 1.3 2.0- 2.3 Common stock price volatility 73.9% 84.9% - 86.2% Risk-free interest rate 0.1% 1.58% - 1.63% |
Schedule of change in fair value of the warrant liabilities | Fair value as of September 30, 2020 $ 950,151 Change in fair value (630,112) Fair value as of December 31, 2020 $ 320,039 Fair value as of September 30, 2019 $ 496,343 Change in fair value 694,134 Fair value as of December 31, 2019 $ 1,190,477 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity | |
Schedule of warrants issued and outstanding | Warrants Expiration date Exercise Price Outstanding December 13, 2021 $ 55.00 20,627 April 10, 2022 20.00 695,312 July 6, 2023 8.73 105,000 820,939 Weighted Weighted Average Average Remaining Exercise Contractual Life Warrants Price (in years) Outstanding as of September 30, 2020 820,939 $ 19.44 Outstanding as of December 31, 2020 820,939 $ 19.44 Exercisable as of December 31, 2020 803,439 $ 19.67 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Stock-Based Compensation | |
Schedule of stock-based compensation expense | The Company recorded stock-based compensation expense in the following expense categories of its unaudited condensed consolidated statements of operations for the three months ended December 31, 2020 and 2019: Three Months ended December 31, 2020 2019 General and administrative $ 842,279 $ 1,113,111 Research and development 334,306 391,115 Total $ 1,176,585 $ 1,504,226 |
Summary of stock options issued and outstanding | Below is a table summarizing the options issued and outstanding as of and for the three months ended December 31, 2020: Weighted Weighted Average Total Average Remaining Aggregate Exercise Contractual Life Intrinsic Stock Options Price (in years) Value Outstanding at September 30, 2020 6,190,790 $ 2.76 Granted 494,340 7.42 Exercised (21,576) 5.21 Forfeited (30,000) 4.80 Outstanding at December 31, 2020 6,633,554 3.09 8.3 $ 27,071,221 Exercisable as of December 31, 2020 4,409,572 $ 1.51 8.0 $ 24,843,446 |
Schedule of key assumptions used to estimate the fair value of the stock options granted | Key assumptions used to estimate the fair value of the stock options granted during the three months ended December 31, 2020 and 2019 included: Three Months ended December 31, 2020 2019 Expected term of options (years) 6.0 7.0 Expected common stock price volatility 83.1% - 83.3% 78% - 81.1% Risk-free interest rate 0.6% - 0.7% 1.7% - 1.8% Expected dividend yield — — |
Summary of changes in the outstanding restricted stock | A summary of the changes in the unvested restricted stock during the three months ended December 31, 2020 is as follows: Weighted Average Grant Date Unvested Restricted Fair Value Stock Price Unvested as of September 30, 2020 — $ — Granted 1,931 9.06 Vested (1,931) 9.06 Unvested as of December 31, 2020 — $ — |
Significant Accounting Polici_4
Significant Accounting Policies - Marketable Securities (Details) - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
Marketable Securities | ||
Marketable securities | $ 0 | $ 0 |
Significant Accounting Polici_5
Significant Accounting Policies - Potentially dilutive securities outstanding (Details) - shares | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 7,454,493 | 7,187,905 |
Common stock purchase options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 6,633,554 | 6,466,966 |
Unvested restricted stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 5,000 | |
Common stock purchase warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 820,939 | 715,939 |
Liquidity and Going Concern (De
Liquidity and Going Concern (Details) - USD ($) | 3 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Liquidity and Going Concern | ||||
Cash | $ 27,976,770 | $ 7,730,654 | $ 31,992,283 | $ 10,313,966 |
Loss from operations | (4,661,394) | (3,782,366) | ||
Cash in operating activities | $ (3,780,861) | $ (2,441,486) |
Other Prepaid Expenses and Cu_3
Other Prepaid Expenses and Current Assets (Details) - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
Other Prepaid Expenses and Current Assets | ||
Prepaid research and development expense | $ 106,645 | $ 205,641 |
Prepaid rent | 301,481 | |
Other prepaid expenses and other current assets | 52,196 | 88,999 |
Total | $ 460,322 | $ 294,640 |
Equipment (Details)
Equipment (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Sep. 30, 2020 | |
Property, Plant and Equipment, Gross | $ 1,519,171 | $ 1,325,600 |
Accumulated depreciation | (226,783) | (158,666) |
Property, Plant and Equipment, Net | 1,292,388 | 1,166,934 |
Laboratory equipment | ||
Property, Plant and Equipment, Gross | $ 1,498,094 | $ 1,319,123 |
Estimated Useful Life | 5 years | 5 years |
Office equipment | ||
Property, Plant and Equipment, Gross | $ 21,077 | $ 6,477 |
Estimated Useful Life | 3 years | 3 years |
Equipment - Additional Informat
Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equipment | ||
Depreciation | $ 70 | $ 30 |
Investment (Details)
Investment (Details) | 3 Months Ended | ||
Dec. 31, 2020USD ($)director | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Equity in losses on equity method investment | $ 25,412 | $ 24,509 | |
DepYmed | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage of ownership held | 15.00% | ||
Equity in losses on equity method investment | $ (30,000) | $ (20,000) | |
Number of board of directors seats held | director | 2 | ||
Total number of board of directors seats | director | 6 | ||
Carrying amount of the investment | $ 300,000 | $ 300,000 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
Accrued Expenses and Other Current Liabilities | ||
Accrued compensation and benefits | $ 57,274 | $ 88,527 |
Accrued professional fees | 407,235 | 241,755 |
Accrued research and development | 40,656 | 41,313 |
Accrued franchise tax | 194,831 | 155,865 |
Other accrued expenses | 43,852 | 28,423 |
Total | $ 743,848 | $ 555,883 |
Fair Value - Fair Value Measure
Fair Value - Fair Value Measurements (Details) | 3 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) | |
Liabilities | |||
Warrant liabilities | $ 320,039 | $ 950,151 | |
Change in fair value of the warrant liabilities | |||
Fair value as of September 30 | 950,151 | $ 496,343 | |
Change in fair value | (630,112) | 694,134 | |
Fair value at the end | $ 320,039 | $ 1,190,477 | |
Remaining contractual term (years) | Minimum | |||
Liabilities | |||
Warrants and Rights Outstanding, Term | 1 year | 2 years | |
Remaining contractual term (years) | Maximum | |||
Liabilities | |||
Warrants and Rights Outstanding, Term | 1 year 3 months 18 days | 2 years 3 months 18 days | |
Common stock price volatility | |||
Liabilities | |||
Warrants and Rights Outstanding, Measurement Input | 73.9 | ||
Common stock price volatility | Minimum | |||
Liabilities | |||
Warrants and Rights Outstanding, Measurement Input | 84.9 | ||
Common stock price volatility | Maximum | |||
Liabilities | |||
Warrants and Rights Outstanding, Measurement Input | 86.2 | ||
Risk-free interest rate | |||
Liabilities | |||
Warrants and Rights Outstanding, Measurement Input | 0.10 | ||
Risk-free interest rate | Minimum | |||
Liabilities | |||
Warrants and Rights Outstanding, Measurement Input | 1.58 | ||
Risk-free interest rate | Maximum | |||
Liabilities | |||
Warrants and Rights Outstanding, Measurement Input | 1.63 | ||
Fair Value Measurements Level 3 [Member] | |||
Liabilities | |||
Warrant liabilities | $ 320,039 | $ 950,151 |
Stockholders' Equity - Warrants
Stockholders' Equity - Warrants issued and outstanding (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Sep. 30, 2020 | |
Warrants [Roll Forward] | ||
Warrants, Outstanding at the beginning of the period | 820,939 | |
Warrants, Outstanding at the end of the period | 820,939 | 820,939 |
Warrants, Exercisable at the end of the period | 803,439 | |
Weighted average exercise price, Outstanding at the beginning of the period | $ 19.44 | |
Weighted average exercise price, Outstanding at the end of the period | 19.44 | $ 19.44 |
Weighted average exercise price, Exercisable at the end of the period | $ 19.67 | |
Weighted average remaining contractual term, Outstanding at the end of the period | 1 year 4 months 24 days | 1 year 8 months 12 days |
Weighted average remaining contractual term, Exercisable at the end of the period | 1 year 4 months 24 days | |
December 13, 2021 | ||
Warrants [Roll Forward] | ||
Exercise price of warrants (in dollars per share) | $ 55 | |
Warrants, Outstanding at the end of the period | 20,627 | |
April 10, 2022 | ||
Warrants [Roll Forward] | ||
Exercise price of warrants (in dollars per share) | $ 20 | |
Warrants, Outstanding at the end of the period | 695,312 | |
July 6, 2023 | ||
Warrants [Roll Forward] | ||
Exercise price of warrants (in dollars per share) | $ 8.73 | |
Warrants, Outstanding at the end of the period | 105,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock options (Details) | 3 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Stock Options | |
Outstanding, Beginning balance | shares | 6,190,790 |
Granted | shares | 494,340 |
Exercised | shares | (21,576) |
Forfeited | shares | (30,000) |
Outstanding, Ending balance | shares | 6,633,554 |
Exercisable | shares | 4,409,572 |
Weighted Average Exercise Price per Share | |
Outstanding, Beginning balance | $ / shares | $ 2.76 |
Granted | $ / shares | 7.42 |
Exercised | $ / shares | 5.21 |
Forfeited | $ / shares | 4.80 |
Outstanding, Ending balance | $ / shares | 3.09 |
Exercisable | $ / shares | $ 1.51 |
Weighted Average remaining contractual term (years) and Aggregate Intrinsic Value | |
Outstanding | 8 years 3 months 18 days |
Exercisable | 8 years |
Outstanding | $ | $ 27,071,221 |
Exercisable | $ | $ 24,843,446 |
Stock-Based Compensation - Key
Stock-Based Compensation - Key Assumptions Estimate Fair Value Of Stock Options (Details) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Key assumptions used to estimate the fair value of the stock options granted | ||
Expected term of options (years) | 6 years | 7 years |
Expected common stock price volatility, minimum | 83.10% | 78.00% |
Expected common stock price volatility, maximum | 83.30% | 81.10% |
Risk-free interest rate, minimum | 0.60% | 1.70% |
Risk-free interest rate, maximum | 0.70% | 1.80% |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock (Details) | 3 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Unvested Restricted Stock | |
Granted | shares | 1,931 |
Vested | shares | (1,931) |
Weighted-average years expected to be recognized over | 1 year 4 months 24 days |
Weighted Average Grant Date Fair Value Price | |
Granted | $ / shares | $ 9.06 |
Vested | $ / shares | $ 9.06 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock-based compensation expense (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-Based Compensation expense | ||
Total stock based compensation for options granted | $ 1,176,585 | $ 1,504,226 |
General and administrative | ||
Stock-Based Compensation expense | ||
Total stock based compensation for options granted | 842,279 | 1,113,111 |
Research and development | ||
Stock-Based Compensation expense | ||
Total stock based compensation for options granted | $ 334,306 | $ 391,115 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-Based Compensation | ||
Unrecognized compensation costs | $ 5.8 | |
Weighted-average amortization period | 1 year 4 months 24 days | |
Weighted average grant date fair value of options granted | $ 5.20 | $ 4.78 |
Stock options granted to consultant for future services | 225,000 | |
2016 Plan | ||
Stock-Based Compensation | ||
Number of common stock authorized | 291,667 | |
Common shares were available for future grants | 147,041 | |
2019 Plan | ||
Stock-Based Compensation | ||
Number of common stock authorized | 4,709,277 | |
Common shares were available for future grants | 1,216,719 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended | 3 Months Ended | ||
Dec. 31, 2020USD ($) | Oct. 31, 2020ft² | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Commitments and Contingencies | ||||
Lease agreement term | 10 years | |||
Option to extend | true | |||
Initial extension term of lease | 10 years | |||
Option to terminate | true | |||
Additional right to extend term | 5 years | |||
Lease area | ft² | 14,189 | |||
Prepaid rent | $ 300,000 | |||
Security deposit paid | 300,000 | |||
Rent | $ 30,000 | $ 20,000 | ||
Minimum | ||||
Commitments and Contingencies | ||||
Base rent | $ 66,000 | |||
Maximum | ||||
Commitments and Contingencies | ||||
Base rent | $ 73,000 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Jan. 27, 2021USD ($) |
Subsequent Event | Vera Therapeutics Inc | Forecast | |
Subsequent Event [Line Items] | |
Total consideration | $ 3.7 |