Cover
Cover - shares | 9 Months Ended | |
Jun. 30, 2020 | Aug. 06, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --09-30 | |
Entity File Number | 001-37606 | |
Entity Registrant Name | ANAVEX LIFE SCIENCES CORP. | |
Entity Central Index Key | 0001314052 | |
Entity Tax Identification Number | 98-0608404 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 51 West 52nd Street | |
Entity Address, Address Line Two | 7th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Country | US | |
Entity Address, Postal Zip Code | 10019 | |
City Area Code | 844 | |
Local Phone Number | 689-3939 | |
Title of 12(b) Security | Common Stock Par Value $0.001 | |
Trading Symbol | AVXL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 60,190,619 |
INTERIM CONDENSED CONSOLIDATED
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2020 | Sep. 30, 2019 |
Current | ||
Cash and cash equivalents | $ 27,619,145 | $ 22,185,630 |
Incentive and tax receivables | 3,547,972 | 2,642,745 |
Prepaid expenses and deposits | 438,631 | 500,998 |
Deferred costs | 24,508 | |
Total Current Assets | 31,630,256 | 25,329,373 |
Total Assets | 31,630,256 | 25,329,373 |
Current Liabilities | ||
Accounts payable | 3,980,204 | 3,523,332 |
Accrued liabilities | 2,968,994 | 1,516,342 |
Total Liabilities | 6,949,198 | 5,039,674 |
Capital stock Authorized: 10,000,000 preferred stock, par value $0.001 per share | 0 | 0 |
Capital stock Authorized: 100,000,000 common shares, par value $0.001 per share Issued and outstanding: 60,082,291 common shares (September 30, 2019 - 52,650,251) | 60,083 | 52,652 |
Additional paid-in capital | 178,332,979 | 153,633,807 |
Accumulated deficit | (153,712,004) | (133,396,760) |
Total Stockholders' Equity | 24,681,058 | 20,289,699 |
Total Liabilities and Stockholders' Equity | $ 31,630,256 | $ 25,329,373 |
INTERIM CONDENSED CONSOLIDATE_2
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2020 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common shares, authorized | 100,000,000 | 100,000,000 |
Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common shares, issued | 60,082,291 | 52,650,251 |
Common shares, outstanding | 60,082,291 | 52,650,251 |
INTERIM CONDENSED CONSOLIDATE_3
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Operating expenses | ||||
General and administrative | $ 1,381,477 | $ 1,388,729 | $ 4,453,654 | $ 5,211,287 |
Research and development | 6,725,002 | 5,758,446 | 19,126,717 | 17,549,442 |
Total operating expenses | (8,106,479) | (7,147,175) | (23,580,371) | (22,760,729) |
Other income (expenses) | ||||
Grant income | 0 | 74,944 | 149,888 | 223,999 |
Research and development incentive income | 1,319,913 | 552,335 | 2,980,456 | 1,727,007 |
Interest income, net | 56,096 | 34,838 | 172,996 | 165,103 |
Gain on settlement of accounts payable | 0 | 36,978 | 0 | 36,978 |
Foreign exchange gain (loss), net | 248,665 | (54,546) | (24,182) | (4,854) |
Total other income, net | 1,624,674 | 644,549 | 3,279,158 | 2,148,233 |
Net loss before provision for income taxes | (6,481,805) | (6,502,626) | (20,301,213) | (20,612,496) |
Income tax expense, current | (4,817) | (19,300) | (14,031) | (76,065) |
Net loss and comprehensive loss | $ (6,486,622) | $ (6,521,926) | $ (20,315,244) | $ (20,688,561) |
Net Loss per share | ||||
Basic and diluted | $ (0.11) | $ (0.13) | $ (0.35) | $ (0.43) |
Weighted average number of shares outstanding | ||||
Basic and diluted | 59,105,399 | 49,622,465 | 57,401,387 | 47,691,921 |
INTERIM CONDENSED CONSOLIDATE_4
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash Flows used in Operating Activities | ||
Net loss | $ (20,315,244) | $ (20,688,561) |
Adjustments to reconcile net loss to net cash used in operations: | ||
Stock-based compensation | 4,216,306 | 5,194,343 |
Changes in non-cash working capital balances related to operations: | ||
Incentive and tax receivables | (905,227) | (1,780,150) |
Prepaid expenses and deposits | 62,367 | 829,576 |
Accounts payable | 456,872 | 267,061 |
Accrued liabilities | 1,452,652 | 184,920 |
Net cash used in operating activities | (15,032,274) | (15,992,811) |
Cash Flows provided by Financing Activities | ||
Issuance of common shares | 20,490,297 | 14,361,379 |
Deferred financing charges | (24,508) | (50,000) |
Net cash provided by financing activities | 20,465,789 | 14,311,379 |
Increase (decrease) in cash and cash equivalents during the period | 5,433,515 | (1,681,432) |
Cash and cash equivalents, beginning of period | 22,185,630 | 22,930,638 |
Cash and cash equivalents, end of period | $ 27,619,145 | $ 21,249,206 |
INTERIM CONDENSED CONSOLIDATE_5
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Common Shares To Be Issued [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Sep. 30, 2018 | $ 45,935 | $ 129,377,542 | $ (107,101,781) | $ 22,321,696 | |
Balance Beginning (in shares) at Sep. 30, 2018 | 45,933,472 | ||||
Commitment shares | $ 27 | (27) | |||
Shares issued under 2015 Purchase Agreement - Commitment shares (in shares) | 23,701 | ||||
Purchase shares | $ 4,849 | 13,192,755 | 13,197,604 | ||
Shares issued under 2015 Purchase Agreement - Purchase shares (in shares) | 4,848,995 | ||||
Purchase shares | $ 375 | 1,163,400 | 1,163,775 | ||
Shares issued under 2019 Purchase Agreement - Purchase shares (in shares) | 375,000 | ||||
Commitment shares | $ 324 | (324) | |||
Shares issued under 2019 Purchase Agreement - Commitment shares (in shares) | 328,157 | ||||
Shares issued pursuant to cashless exercise of warrants | $ 1 | (1) | |||
Shares issued pursuant to cashless exercise of warrants (in shares) | 546 | ||||
Share based compensation | 5,194,343 | 5,194,343 | |||
Net loss | (20,688,561) | (20,688,561) | |||
Ending balance, value at Jun. 30, 2019 | $ 51,511 | 148,927,688 | (127,790,342) | 21,188,857 | |
Balance Ending (in shares) at Jun. 30, 2019 | 51,509,871 | ||||
Beginning balance, value at Mar. 31, 2019 | $ 48,175 | 138,696,975 | (292,700) | (121,268,416) | 17,184,034 |
Balance Beginning (in shares) at Mar. 31, 2019 | 48,173,241 | ||||
Commitment shares | $ 14 | (14) | |||
Shares issued under 2015 Purchase Agreement - Commitment shares (in shares) | 14,070 | ||||
Purchase shares | $ 2,619 | 7,833,451 | 292,700 | 8,128,770 | |
Shares issued under 2015 Purchase Agreement - Purchase shares (in shares) | 2,619,403 | ||||
Purchase shares | $ 375 | 1,163,400 | 1,163,775 | ||
Shares issued under 2019 Purchase Agreement - Purchase shares (in shares) | 375,000 | ||||
Commitment shares | $ 328 | (328) | |||
Shares issued under 2019 Purchase Agreement - Commitment shares (in shares) | 328,157 | ||||
Share based compensation | 1,234,204 | 1,234,204 | |||
Net loss | (6,521,926) | (6,521,926) | |||
Ending balance, value at Jun. 30, 2019 | $ 51,511 | 148,927,688 | (127,790,342) | 21,188,857 | |
Balance Ending (in shares) at Jun. 30, 2019 | 51,509,871 | ||||
Beginning balance, value at Sep. 30, 2019 | $ 52,652 | 153,633,807 | (133,396,760) | 20,289,699 | |
Balance Beginning (in shares) at Sep. 30, 2019 | 52,650,521 | ||||
Purchase shares | $ 7,365 | 20,482,932 | 20,490,297 | ||
Shares issued under 2019 Purchase Agreement - Purchase shares (in shares) | 7,364,584 | ||||
Commitment shares | $ 65 | (65) | |||
Shares issued under 2019 Purchase Agreement - Commitment shares (in shares) | 66,465 | ||||
Shares issued pursuant to cashless exercise of options | $ 1 | (1) | |||
Shares issued pursuant to cashless exercise of options (in shares) | 721 | ||||
Share based compensation | 4,216,306 | 4,216,306 | |||
Net loss | (20,315,244) | (20,315,244) | |||
Ending balance, value at Jun. 30, 2020 | $ 60,083 | 178,332,979 | (153,712,004) | 24,681,058 | |
Balance Ending (in shares) at Jun. 30, 2020 | 60,082,291 | ||||
Beginning balance, value at Mar. 31, 2020 | $ 58,666 | 171,958,462 | (147,225,382) | 24,791,746 | |
Balance Beginning (in shares) at Mar. 31, 2020 | 58,664,946 | ||||
Purchase shares | $ 1,400 | 5,123,405 | 5,124,805 | ||
Shares issued under 2019 Purchase Agreement - Purchase shares (in shares) | 1,400,000 | ||||
Commitment shares | $ 16 | (16) | |||
Shares issued under 2019 Purchase Agreement - Commitment shares (in shares) | 16,624 | ||||
Shares issued pursuant to cashless exercise of options | $ 1 | (1) | |||
Shares issued pursuant to cashless exercise of options (in shares) | 721 | ||||
Share based compensation | 1,251,129 | 1,251,129 | |||
Net loss | (6,486,622) | (6,486,622) | |||
Ending balance, value at Jun. 30, 2020 | $ 60,083 | $ 178,332,979 | $ (153,712,004) | $ 24,681,058 | |
Balance Ending (in shares) at Jun. 30, 2020 | 60,082,291 |
Business Description and Basis
Business Description and Basis of Presentation | 9 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 Business Description and Basis of Presentation Anavex Life Sciences Corp. (the “Company”) is a clinical stage biopharmaceutical company engaged in the development of differentiated therapeutics by applying precision medicine to central nervous system (“CNS”) diseases with high unmet need. Anavex analyzes genomic data from clinical studies to identify biomarkers, which are used to select patients that will receive the therapeutic benefit for the treatment of neurodegenerative and neurodevelopmental diseases. The Company’s lead compound ANAVEX®2-73 is being developed to treat Alzheimer’s disease, Parkinson’s disease and potentially other central nervous system diseases, including rare diseases, such as Rett syndrome, a rare severe neurological monogenic disorder caused by mutations in the X-linked gene, methyl-CpG-binding protein 2 (“MECP2”). Basis of Presentation These unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim reporting. Accordingly, certain information and note disclosures normally included in the annual financial statements in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the disclosures are adequate to make the information presented not misleading. These accompanying unaudited interim condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary for fair presentation of the information contained herein. The consolidated balance sheet as of September 30, 2019 was derived from the audited annual financial statements but does not include all disclosures required by U.S. GAAP. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended September 30, 2019 filed with the SEC on December 16, 2019. The Company follows the same accounting policies in the preparation of interim reports. Operating results for the nine months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending September 30, 2020. Liquidity All of the Company’s potential drug compounds are in the clinical development stage and the Company cannot be certain that its research and development efforts will be successful or, if successful, that its potential drug compounds will ever be approved for sales to pharmaceutical companies or generate commercial revenues. To date, we have not generated any revenues from our operations. The Company expects the business to continue to experience negative cash flows for the foreseeable future and cannot predict when, if ever, our business might become profitable. The Company believes that its existing cash and cash equivalents, along with existing financial commitments from third parties, will be sufficient to meet its cash commitments for at least the next two years after the date that these interim condensed consolidated financial statements are issued. The process of drug development can be costly, and the timing and outcomes of clinical trials is uncertain. The assumptions upon which the Company has based its estimates are routinely evaluated and may be subject to change. The actual amount of the Company’s expenditures will vary depending upon a number of factors including but not limited to the design, timing and duration of future clinical trials, the progress of the Company’s research and development programs and the level of financial resources available. The Company has the ability to adjust its operating plan spending levels based on the timing of future clinical trials. Other than our rights related to the Sales Agreement and the 2019 Purchase Agreement (each as defined below), there can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis, if and when it is needed, we will be forced to delay or scale down some or all of our research and development activities. In December 2019, a novel strain of coronavirus, COVID-19, was reported to have surfaced in Wuhan, China. In March 2020, the World Health Organization (“WHO”) declared COVID-19 to be a global pandemic as a result of the rapid spread of the virus beyond its point of origin. The global outbreak of COVID-19 continues to rapidly evolve as of the date these interim condensed consolidated financial statements are issued. As such, it is uncertain as to the full magnitude that the outbreak will have on the Company’s financial condition and future results of operations. Management is actively monitoring the global situation on its business, including on its clinical trials and operations and financial condition. Given the daily evolution of the COVID-19 situation, and the global responses to curb its spread, the Company is not able to estimate the effects of COVID-19 on its results of operations or financial condition for the year ending September 30, 2020. On March 27, 2020, the President of the United States signed into law the “Coronavirus Aid, Relief, and Economic Security (CARES) Act.” The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, increased limitations on qualified charitable contributions, and technical corrections to tax depreciation methods for qualified improvement property. The enactment of the CARES Act did not have any material impact on the Company’s interim condensed consolidated financial statements. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to accounting for research and development costs, valuation and recoverability of deferred tax assets, asset impairment, stock-based compensation and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes 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 accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Adjustment of Prior Period Financial Statements As previously disclosed in Note 1 to the Company’s consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended September 30, 2019, the Company adjusted amounts to previously reported consolidated financial statements which were immaterial. These adjustments were identified in connection with the preparation of the consolidated financial statements for the year ended September 30, 2019 and related to the timing of recognition of research and development incentive income. Previously the Company accounted for research and development incentive income when received in cash. During the year ended September 30, 2019, based on a continuing assessment regarding the Company’s eligibility for the incentive programs under which it was receiving such income, the Company determined that the income should have been accrued and recorded in the period in which the qualifying research and development expenditures were incurred. These interim condensed consolidated financial statements for the three and nine months ended June 30, 2020 have been similarly adjusted to reflect the adjusted research and development incentive income for the three and nine months accordingly in the amount of $ 552,335 1,477,007 Principles of Consolidation These consolidated financial statements include the accounts of Anavex Life Sciences Corp. and its wholly-owned subsidiaries, Anavex Australia Pty Limited, a company incorporated under the laws of Australia, Anavex Germany GmbH, a company incorporated under the laws of Germany, and Anavex Canada Ltd., a company incorporated under the laws of the Province of Ontario, Canada. All inter-company transactions and balances have been eliminated. Fair Value Measurements The fair value hierarchy under GAAP is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and Level 3 - assets and liabilities whose significant value drivers are unobservable by little or no market activity and that are significant to the fair value of the assets or liabilities. The book value of cash and cash equivalents and accounts payable and accrued liabilities approximate their fair values due to the short-term maturity of those instruments. At June 30, 2020 and September 30, 2019, the Company did not have any Level 3 assets or liabilities. Basic and Diluted Loss per Share Basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the weighted average number of all potentially dilutive securities convertible into shares of common stock that were outstanding during the period. As of June 30, 2020, loss per share excludes 10,576,266 8,812,933 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Jun. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | Note 2 Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2016, Topic 842, Leases was issued to replace the leases requirements in Topic 840, Leases. The main difference between previous U.S. GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. A lessee should recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. The accounting applied by a lessor is largely unchanged from that applied under previous U.S. GAAP. The Company elected to the package of practical expedients permitted under the transition guidance that allowed, among other things, the historical lease classifications to be carried forward without reassessment. Further, the Company elected to not recognize lease assets and lease liabilities for leases with a term of 12 months or less. The adoption of this standard on October 1, 2019 did not have any impact on the Company's results of operations, financial condition, cash flows, and financial statement disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which simplifies the accounting for share-based payments to nonemployees for goods and services by aligning it with the accounting for share-based payments to employees, with certain exceptions. The new guidance was effective for the Company beginning on October 1, 2019 and was required to be applied retrospectively with the cumulative effect recognized at the date of initial application. The adoption of this standard on October 1, 2019 did not have any impact on the Company's results of operations, financial condition, cash flows, and financial statement disclosures. Recent Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, "Simplifying the Accounting for Income Taxes (ASC 740)", which is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying and amending existing guidance to improve consistent application. ASU 2019-12 is effective for the Company on October 1, 2021. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements but does not expect such guidance to have a material impact. |
Other Income
Other Income | 9 Months Ended |
Jun. 30, 2020 | |
Other Income | |
Other Income Disclosure [TextBlock] | Note 3 Other Income Grant Income During the year ended September 30, 2017, the Company was awarded grant funding in the amount of $ 597,886 The grant income was deferred when received and amortized to other income as the related research and development expenditures were incurred. During the three and nine months ended June 30, 2020, the Company recognized $ 0 149,888 74,944 223,999 Research and development incentive income The Company is eligible to obtain certain research and development tax credits, including the New York City Biotechnology Tax Credit (“NYC Biotech credit”), and the Australian research and development tax incentive credit (the “Australia R&D credit”) through a program administered through the Australian Tax Office (the “ATO”), which provides for a cash refund based on a percentage of certain research and development activities undertaken in Australia by the Company’s wholly owned subsidiary, Anavex Australia Pty Ltd. (“Anavex Australia”). Research and development incentive income during the three and nine months ended June 30, 2020 and 2019 represents the receipt by the Company’s Australian subsidiary, of the Australian research and development incentive credit, (the “ATO R&D Credit”), as well as receipt by the Company of the New York City Biotechnology Credit (“NYC Biotech credit”). During the three and nine months ended June 30, 2020, the Company recorded research and development incentive income of $ 1,319,913 1,923,000 2,980,456 4,471,000 552,335 1,727,007 |
Equity Offering Agreements
Equity Offering Agreements | 9 Months Ended |
Jun. 30, 2020 | |
Equity Offering Agreements | |
Equity Offering Agreements [TextBlock] | Note 4 Equity Offering Agreements Sales Agreement The Company has entered into an Amended and Restated Sales Agreement dated May 1, 2020 (the “Sales Agreement”) with Cantor Fitzgerald & Co. and SVB Leerink LLC (together the “Sales Agents”), pursuant to which the Company may offer and sell shares of common stock, for aggregate gross sale proceeds of up to $ 50,000,000 Upon delivery of a placement notice based on the Company’s instructions and subject to the terms and conditions of the Sales Agreement, the Sales Agents may sell the Shares by methods deemed to be an “at the market offering” offering, in negotiated transactions at market prices prevailing at the time of sale or at prices related to such prevailing market prices, or by any other method permitted by law, including negotiated transactions, subject to the prior written consent of the Company. The Company is not obligated to make any sales of Shares under the Sales Agreement. The Company or Sales Agents may suspend or terminate the offering of Shares upon notice to the other party, subject to certain conditions. The Sales Agents will act as agent on a commercially reasonable efforts basis consistent with their normal trading and sales practices and applicable state and federal law, rules and regulations and the rules of Nasdaq. The Company has agreed to pay the Sales Agents commissions for their services of up to 3.0 2015 Purchase Agreement On October 21, 2015, the Company entered into a $ 50,000,000 50,000,000 36 During the nine months ended June 30, 2019, the Company issued an aggregate of 4,872,696 4,848,995 13,197,604 23,701 2019 Purchase Agreement On June 7, 2019, the Company entered into a $ 50,000,000 50,000,000 36 The Company may direct Lincoln Park, at its sole discretion, and subject to certain conditions, to purchase up to 200,000 shares of common stock on any business day (a “Regular Purchase”). The amount of a Regular Purchase may be increased under certain circumstances up to 250,000 shares, provided that Lincoln Park’s committed obligation for Regular Purchases on any business day shall not exceed $2,000,000. In the event we purchase the full amount allowed for a Regular Purchase on any given business day, we may also direct Lincoln Park to purchase additional amounts as accelerated and additional accelerated purchases. The purchase price of shares of common stock related to the future funding will be based on the then prevailing market prices of such shares at the time of sales as described in the 2019 Purchase Agreement. The Company’s sale of shares of Common Stock to Lincoln Park subsequent to the Amendment Date is limited to 12,016,457 19.99 In consideration for entering into the 2019 Purchase Agreement, the Company issued to Lincoln Park 324,383 162,191 During the nine months ended June 30, 2020, the Company issued to Lincoln Park an aggregate of 7,431,049 703,157 7,364,584 375,000 20,490,297 1,163,775 66,465 328,157 24,875,198 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Disclosure [Text Block] | Note 5 Commitments and Contingencies a) Leases During the three and nine months ended June 30, 2020, the Company incurred office lease expense of $ 58,554 169,469 49,546 127,807 b) Litigation The Company is subject to claims and legal proceedings that arise in the ordinary course of business. Such matters are inherently uncertain, and there can be no guarantee that the outcome of any such matter will be decided favorably to the Company or that the resolution of any such matter will not have a material adverse effect upon the Company's consolidated financial statements. The Company does not believe that any of such pending claims and legal proceedings will have a material adverse effect on its consolidated financial statements. c) Share Purchase Warrants A summary of the status of the Company’s outstanding share purchase warrants is presented below: Schedule of exercisable share purchase warrants outstanding Number of Shares Weighted Average Exercise Price ($) Balance, September 30, 2019 350,000 4.19 Granted 150,000 3.17 Balance, June 30, 2020 500,000 3.88 At June 30, 2020, the Company had share purchase warrants outstanding as follows: Schedule of share purchase warrants outstanding Number Exercise Price Expiry Date 350,000 $ 4.19 June 30, 2021 150,000 $ 3.17 May 6, 2024 500,000 d) Stock–based Compensation Plan 2015 Stock Option Plan On September 18, 2015, the Company’s board of directors (the “Board”) approved a 2015 Omnibus Incentive Plan (the “2015 Plan”), which provides for the grant of stock options and restricted stock awards to directors, officers, employees and consultants of the Company. The maximum number of our common shares reserved for issue under the plan is 6,050,553 The 2015 Plan provides that it may be administered by the Board, or the Board may delegate such responsibility to a committee. The exercise price will be determined by the Board at the time of grant shall be at least equal to the fair market value on such date. If the grantee is a 10% stockholder on the grant date, then the exercise price shall not be less than 110% of fair market value of the Company’s shares of common stock on the grant date. Stock options may be granted under the 2015 Plan for an exercise period of up to ten years from the date of grant of the option or such lesser periods as may be determined by the Board, subject to earlier termination in accordance with the terms of the 2015 Plan. 2019 Stock Option Plan On January 15, 2019, the Board approved the 2019 Omnibus Incentive Plan (the “2019 Plan”), which provides for the grant of stock options and restricted stock awards to directors, officers, employees, consultants and advisors of the Company. Under the terms of the 2019 Plan, 6,000,000 The 2019 Plan provides that it may be administered by the Board, or the Board may delegate such responsibility to a committee. The exercise price will be determined by the board of directors at the time of grant shall be at least equal to the fair market value on such date. If the grantee is a 10% stockholder on the grant date, then the exercise price shall not be less than 110% of fair market value of the Company’s shares of common stock on the grant date. Stock options may be granted under the 2019 Plan for an exercise period of up to ten years from the date of grant of the option or such lesser periods as may be determined by the Board, subject to earlier termination in accordance with the terms of the 2019 Plan. A summary of the status of Company’s outstanding stock purchase options is presented below: Schedule of outstanding stock purchase options Number of Shares Weighted Average Exercise Price ($) Weighted Average Grant Date Fair Value ($) Aggregate intrinsic value ($) Outstanding, September 30, 2019 8,462,933 3.58 4,115,032 Granted 1,695,000 2.96 2.27 Forfeited (68,332 ) 3.01 Exercised (13,335 ) 3.15 Outstanding, June 30, 2020 10,076,266 3.48 17,818,714 Exercisable, June 30, 2020 7,284,183 3.67 12,366,473 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted market price of the Company’s stock for the options that were in-the-money at June 30, 2020. During the three and nine months ended June 30, 2020, the Company recognized stock-based compensation expense of $ 1,251,129 4,216,306 1,234,204 5,194,343 Schedule of general and administrative expenses and research and development expenses Three months ended June 30, Nine months ended June 30, 2020 2019 2020 2019 General and administrative $ 575,451 $ 579,636 $ 1,863,869 $ 2,586,223 Research and development 675,678 654,568 2,352,437 2,608,120 Total share based compensation $ 1,251,129 $ 1,234,204 $ 4,216,306 $ 5,194,343 An amount of approximately $ 4,858,000 The fair value of each option award is estimated on the date of grant using the Black Scholes option pricing model based on the following weighted average assumptions: Schedule of weighted average assumptions for fair value of each option award 2020 2019 Risk-free interest rate 1.57 % 2.91 % Expected life of options (years) 5.53 5.59 Annualized volatility 97.80 % 105.96 % Dividend rate 0.00 % 0.00 % |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, Topic 842, Leases was issued to replace the leases requirements in Topic 840, Leases. The main difference between previous U.S. GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. A lessee should recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. The accounting applied by a lessor is largely unchanged from that applied under previous U.S. GAAP. The Company elected to the package of practical expedients permitted under the transition guidance that allowed, among other things, the historical lease classifications to be carried forward without reassessment. Further, the Company elected to not recognize lease assets and lease liabilities for leases with a term of 12 months or less. The adoption of this standard on October 1, 2019 did not have any impact on the Company's results of operations, financial condition, cash flows, and financial statement disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which simplifies the accounting for share-based payments to nonemployees for goods and services by aligning it with the accounting for share-based payments to employees, with certain exceptions. The new guidance was effective for the Company beginning on October 1, 2019 and was required to be applied retrospectively with the cumulative effect recognized at the date of initial application. The adoption of this standard on October 1, 2019 did not have any impact on the Company's results of operations, financial condition, cash flows, and financial statement disclosures. Recent Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, "Simplifying the Accounting for Income Taxes (ASC 740)", which is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying and amending existing guidance to improve consistent application. ASU 2019-12 is effective for the Company on October 1, 2021. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements but does not expect such guidance to have a material impact. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of exercisable share purchase warrants outstanding | Schedule of exercisable share purchase warrants outstanding Number of Shares Weighted Average Exercise Price ($) Balance, September 30, 2019 350,000 4.19 Granted 150,000 3.17 Balance, June 30, 2020 500,000 3.88 |
Schedule of share purchase warrants outstanding | Schedule of share purchase warrants outstanding Number Exercise Price Expiry Date 350,000 $ 4.19 June 30, 2021 150,000 $ 3.17 May 6, 2024 500,000 |
Schedule of outstanding stock purchase options | Schedule of outstanding stock purchase options Number of Shares Weighted Average Exercise Price ($) Weighted Average Grant Date Fair Value ($) Aggregate intrinsic value ($) Outstanding, September 30, 2019 8,462,933 3.58 4,115,032 Granted 1,695,000 2.96 2.27 Forfeited (68,332 ) 3.01 Exercised (13,335 ) 3.15 Outstanding, June 30, 2020 10,076,266 3.48 17,818,714 Exercisable, June 30, 2020 7,284,183 3.67 12,366,473 |
Schedule of general and administrative expenses and research and development expenses | Schedule of general and administrative expenses and research and development expenses Three months ended June 30, Nine months ended June 30, 2020 2019 2020 2019 General and administrative $ 575,451 $ 579,636 $ 1,863,869 $ 2,586,223 Research and development 675,678 654,568 2,352,437 2,608,120 Total share based compensation $ 1,251,129 $ 1,234,204 $ 4,216,306 $ 5,194,343 |
Schedule of weighted average assumptions for fair value of each option award | Schedule of weighted average assumptions for fair value of each option award 2020 2019 Risk-free interest rate 1.57 % 2.91 % Expected life of options (years) 5.53 5.59 Annualized volatility 97.80 % 105.96 % Dividend rate 0.00 % 0.00 % |
Business Description and Basi_2
Business Description and Basis of Presentation (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Research and development incentive income | $ 552,335 | $ 1,477,007 | ||
Loss per share for potentially dilutive common shares | 10,576,266 | 8,812,933 |
Other Income (Details Narrative
Other Income (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2017 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Grant income | $ 0 | $ 74,944 | $ 149,888 | $ 223,999 | |
Research and development incentive income | 1,319,913 | $ 552,335 | $ 2,980,456 | 1,727,007 | |
Australia, Dollars | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Research and development incentive income | $ 1,923,000 | $ 4,471,000 | |||
Clinical Study Grant [Member] | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Grant income | $ 597,886 |
Equity Offering Agreements (Det
Equity Offering Agreements (Details Narrative) - USD ($) | May 01, 2020 | Jun. 07, 2019 | Oct. 21, 2015 | Jun. 30, 2020 | Jun. 30, 2019 |
Entity Listings [Line Items] | |||||
Gross sale proceeds | $ 20,490,297 | $ 14,361,379 | |||
Equity Offering Sales Agreement [Member] | Cantor Fitzgerald & Co [Member] | |||||
Entity Listings [Line Items] | |||||
Gross sale proceeds | $ 50,000,000 | ||||
Percentage of gross proceeds from sales | 3.00% | ||||
2015 Purchase Agreement [Member] | Lincoln Park Capital Fund, LLC [Member] | |||||
Entity Listings [Line Items] | |||||
Total number of shares obligated to purchase | $ 50,000,000 | ||||
Agreement term | 36 months | ||||
Number of share issued | 4,872,696 | ||||
Number of shares issued for aggregate purchase price | 4,848,995 | ||||
Number of shares issued for aggregate purchase price, value | $ 13,197,604 | ||||
Number of shares issued for commitment | 23,701 | ||||
2019 Purchase Agreement [Member] | Lincoln Park Capital Fund, LLC [Member] | |||||
Entity Listings [Line Items] | |||||
Total number of shares obligated to purchase | $ 50,000,000 | ||||
Agreement term | 36 months | ||||
Number of share issued | 324,383 | 7,431,049 | 703,157 | ||
Number of shares issued for aggregate purchase price | 7,364,584 | 375,000 | |||
Number of shares issued for aggregate purchase price, value | $ 20,490,297 | $ 1,163,775 | |||
Number of shares issued for commitment | 66,465 | 328,157 | |||
Description of purchases price | The Company may direct Lincoln Park, at its sole discretion, and subject to certain conditions, to purchase up to 200,000 shares of common stock on any business day (a “Regular Purchase”). The amount of a Regular Purchase may be increased under certain circumstances up to 250,000 shares, provided that Lincoln Park’s committed obligation for Regular Purchases on any business day shall not exceed $2,000,000. In the event we purchase the full amount allowed for a Regular Purchase on any given business day, we may also direct Lincoln Park to purchase additional amounts as accelerated and additional accelerated purchases. The purchase price of shares of common stock related to the future funding will be based on the then prevailing market prices of such shares at the time of sales as described in the 2019 Purchase Agreement. | ||||
Pro rata basic number of shares obligated to purchase | 162,191 | ||||
Amount of shares remain available | $ 24,875,198 | ||||
2019 Purchase Agreement [Member] | Lincoln Park Capital Fund, LLC [Member] | Common Stock [Member] | |||||
Entity Listings [Line Items] | |||||
Percentage of gross proceeds from sales | 19.99% | ||||
Number of share issued | 12,016,457 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - Purchase Warrants [Member] | 9 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Purchase Warrants Balance, at beginning | shares | 350,000 |
Weighted Average Exercise Price Balance, at beginning | $ / shares | $ 4.19 |
Share Purchase Warrants Granted | shares | 150,000 |
Weighted Average Exercise Price Granted | $ / shares | $ 3.17 |
Share Purchase Warrants Balance, at ending | shares | 500,000 |
Weighted Average Exercise Price Balance, at ending | $ / shares | $ 3.88 |
Commitments and Contingencies_3
Commitments and Contingencies (Details 1) | Jun. 30, 2020$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number | 500,000 |
Purchase Warrants 1 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number | 350,000 |
Exercise Price | $ / shares | $ 4.19 |
Expiry Date | Jun. 30, 2021 |
Purchase Warrants 2 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number | 150,000 |
Exercise Price | $ / shares | $ 3.17 |
Expiry Date | May 6, 2024 |
Commitments and Contingencies_4
Commitments and Contingencies (Details 2) - 2015 Omnibus Incentive Plan [Member] | 9 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding at beginning | shares | 8,462,933 |
Weighted Average Exercise Price Outstanding at beginning | $ 3.58 |
Aggregate intrinsic value Outstanding at beginning | $ | $ 4,115,032 |
Options Granted | shares | 1,695,000 |
Weighted Average Exercise Price Granted | $ 2.96 |
Weighted Average Grant Date Fair Value Granted | $ 2.27 |
Options Forfeited | shares | (68,332) |
Weighted Average Exercise Price Forfeited | $ 3.01 |
Options Exercised | shares | (13,335) |
Weighted Average Exercise Price Exercised | $ 3.15 |
Options Exercisable at ending | shares | 10,076,266 |
Weighted Average Exercise Price Outstanding at ending | $ 3.48 |
Aggregate intrinsic value Outstanding at ending | $ | $ 17,818,714 |
Options Exercisable | shares | 7,284,183 |
Weighted Average Exercise Price Exercisable at ending | $ 3.67 |
Aggregate intrinsic value Exercisable at ending | $ | $ 12,366,473 |
Commitments and Contingencies_5
Commitments and Contingencies (Details 3) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Loss Contingencies [Line Items] | ||||
Total share based compensation | $ 1,251,129 | $ 1,234,204 | $ 4,216,306 | $ 5,194,343 |
General and Administrative Expense [Member] | ||||
Loss Contingencies [Line Items] | ||||
Total share based compensation | 575,451 | 579,636 | 1,863,869 | 2,586,223 |
Research and Development Expense [Member] | ||||
Loss Contingencies [Line Items] | ||||
Total share based compensation | $ 675,678 | $ 654,568 | $ 2,352,437 | $ 2,608,120 |
Commitments and Contingencies_6
Commitments and Contingencies (Details 4) | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Risk-free interest rate | 1.57% | 2.91% |
Expected life of options (years) | 5 years 6 months 10 days | 5 years 7 months 2 days |
Annualized volatility | 97.80% | 105.96% |
Dividend rate | 0.00% | 0.00% |
Commitments and Contingencies_7
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Lease expense | $ 58,554 | $ 49,546 | $ 169,469 | $ 127,807 |
Stock-based compensation expense | $ 1,251,129 | $ 1,234,204 | 4,216,306 | $ 5,194,343 |
Remaining stock based compensation | $ 4,858,000 | |||
2015 Omnibus Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of common shares reserved for future issuance | 6,050,553 | 6,050,553 | ||
Description of grant option | The exercise price will be determined by the Board at the time of grant shall be at least equal to the fair market value on such date. If the grantee is a 10% stockholder on the grant date, then the exercise price shall not be less than 110% of fair market value of the Company’s shares of common stock on the grant date. Stock options may be granted under the 2015 Plan for an exercise period of up to ten years from the date of grant of the option or such lesser periods as may be determined by the Board, subject to earlier termination in accordance with the terms of the 2015 Plan. | |||
2019 Omnibus Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Description of grant option | The exercise price will be determined by the board of directors at the time of grant shall be at least equal to the fair market value on such date. If the grantee is a 10% stockholder on the grant date, then the exercise price shall not be less than 110% of fair market value of the Company’s shares of common stock on the grant date. Stock options may be granted under the 2019 Plan for an exercise period of up to ten years from the date of grant of the option or such lesser periods as may be determined by the Board, subject to earlier termination in accordance with the terms of the 2019 Plan. | |||
Additional shares of common stock available for issuance | 6,000,000 |