Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2020 | Aug. 13, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | VistaGen Therapeutics, Inc. | |
Entity Central Index Key | 0001411685 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | NV | |
Entity File Number | 001-37761 | |
Entity Common Stock, Shares Outstanding | 73,998,057 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,545,900 | $ 1,355,100 |
Prepaid expenses and other current assets | 633,000 | 225,100 |
Total current assets | 2,178,900 | 1,580,200 |
Property and equipment, net | 184,200 | 209,600 |
Right of use asset - operating lease | 3,492,100 | 3,579,600 |
Deferred offering costs | 263,900 | 355,100 |
Security deposits and other assets | 47,800 | 47,800 |
Total assets | 6,166,900 | 5,772,300 |
Current liabilities: | ||
Accounts payable | 1,307,300 | 1,836,600 |
Accrued expenses | 607,800 | 561,500 |
Current notes payable, including accrued interest | 428,900 | 56,500 |
Operating lease obligation - current portion | 325,700 | 313,400 |
Financing lease obligation - current portion | 3,400 | 3,300 |
Total current liabilities | 2,673,100 | 2,771,300 |
Non-current liabilities: | ||
Non-current portion of notes payable | 124,700 | 0 |
Accrued dividends on Series B Preferred Stock | 5,347,600 | 5,011,800 |
Operating lease obligation - non-current portion | 3,631,100 | 3,715,600 |
Financing lease obligation - non-current portion | 2,100 | 3,000 |
Total non-current liabilities | 9,105,500 | 8,730,400 |
Total liabilities | 11,778,600 | 11,501,700 |
Commitments and contingencies | ||
Stockholders' equity (deficit): | ||
Common stock, $0.001 par value; 175,000,000 shares authorized at June 30, 2020 and March 31, 2020; 55,937,472 and 49,348,707 shares issued and outstanding at June 30, 2020 and March 31, 2020, respectively | 55,900 | 49,300 |
Additional paid-in capital | 203,330,700 | 200,092,800 |
Treasury stock, at cost, 135,665 shares of common stock held at June 30, 2020 and March 31, 2020 | (3,968,100) | (3,968,100) |
Accumulated deficit | (205,034,200) | (201,907,400) |
Total stockholders' (deficit) equity | (5,611,700) | (5,729,400) |
Total liabilities and stockholders' (deficit) equity | 6,166,900 | 5,772,300 |
Series A Preferred Stock | ||
Stockholders' equity (deficit): | ||
Preferred stock | 500 | 500 |
Series B Preferred Stock | ||
Stockholders' equity (deficit): | ||
Preferred stock | 1,200 | 1,200 |
Series C Preferred Stock | ||
Stockholders' equity (deficit): | ||
Preferred stock | $ 2,300 | $ 2,300 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2020 | Mar. 31, 2020 |
Stockholders deficit: | ||
Preferred stock, par value | $ .001 | $ 0.001 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $ .001 | $ 0.001 |
Common stock, authorized | 175,000,000 | 175,000,000 |
Common stock, issued | 55,937,472 | 49,348,707 |
Common stock, outstanding | 55,937,472 | 49,348,707 |
Treasury stock | 135,665 | 135,665 |
Series A Preferred Stock | ||
Stockholders deficit: | ||
Preferred stock, authorized | 500,000 | 500,000 |
Preferred stock, issued | 500,000 | 500,000 |
Preferred stock, outstanding | 500,000 | 500,000 |
Series B Preferred Stock | ||
Stockholders deficit: | ||
Preferred stock, authorized | 4,000,000 | 4,000,000 |
Preferred stock, issued | 1,160,240 | 1,160,240 |
Preferred stock, outstanding | 1,160,240 | 1,160,240 |
Series C Preferred Stock | ||
Stockholders deficit: | ||
Preferred stock, authorized | 3,000,000 | 3,000,000 |
Preferred stock, issued | 2,318,012 | 2,318,012 |
Preferred stock, outstanding | 2,318,012 | 2,318,012 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating expenses: | ||
Research and development | $ 1,731,200 | $ 4,313,900 |
General and administrative | 1,390,600 | 1,910,100 |
Total operating expenses | 3,121,800 | 6,224,000 |
Loss from operations | (3,121,800) | (6,224,000) |
Other income (expenses), net: | ||
Interest income (expense), net | (3,200) | 16,500 |
Other income | 600 | 0 |
Loss before income taxes | (3,124,400) | (6,207,500) |
Income taxes | (2,400) | (2,400) |
Net loss and comprehensive loss | (3,126,800) | (6,209,900) |
Accrued dividends on Series B Preferred stock | (335,800) | (302,500) |
Net loss attributable to common stockholders | $ (3,462,600) | $ (6,512,400) |
Basic and diluted net loss attributable to common stockholders per common share | $ (.07) | $ (.15) |
Weighted average shares used in computing basic and diluted net loss attributable to common stockholders per common share | 51,321,355 | 42,622,965 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (3,126,800) | $ (6,209,900) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 25,400 | 26,200 |
Stock-based compensation | 674,600 | 1,063,000 |
Amortization of fair value of common stock issued for services | 0 | 69,100 |
Amortization of fair value of warrants issued for services | 0 | 10,300 |
Changes in operating assets and liabilities: | ||
Receivable from supplier | 0 | 300,000 |
Prepaid expenses and other current assets | 39,200 | (80,900) |
Right of use asset - operating lease | 87,500 | 81,700 |
Operating lease liability | (72,200) | (61,100) |
Accounts payable and accrued expenses | (434,400) | 40,200 |
Net cash used in operating activities | (2,806,700) | (4,761,400) |
Cash flows from investing activities: | ||
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Net proceeds from issuance of common stock and warrants, including units | 62,600 | 0 |
Expense related to registration of shares underlying outstanding warrants | (29,400) | 0 |
Net proceeds from sale of common stock under equity line | 2,790,600 | 0 |
Proceeds from issuance of note under Payroll Protection Plan | 224,400 | 0 |
Repayment of capital lease obligation | (800) | (700) |
Repayment of notes payable | (49,900) | (41,100) |
Net cash provided by (used in) financing activities | 2,997,500 | (41,800) |
Net increase (decrease) in cash and cash equivalents | 190,800 | (4,803,200) |
Cash and cash equivalents at beginning of period | 1,355,100 | 13,100,300 |
Cash and cash equivalents at end of period | 1,545,900 | 8,297,100 |
Supplemental disclosure of noncash activites: | ||
Insurance premiums settled by issuing note payable | 322,200 | 230,200 |
Accrued dividends on Series B Preferred | $ 335,800 | $ 320,600 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Series A Preferred Stock | Series B Preferred Stock | Series C Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Total |
Beginning balance (in shares) at Mar. 31, 2019 | 500,000 | 1,160,240 | 2,318,012 | 42,758,630 | ||||
Beginning balance at Mar. 31, 2019 | $ 500 | $ 1,200 | $ 2,300 | $ 42,800 | $ 192,129,900 | $ (3,968,100) | $ (181,133,400) | $ 7,075,200 |
Accrued dividends on Series B Preferred stock | (302,500) | (302,500) | ||||||
Stock-based compensation expense | 1,063,000 | 1,063,000 | ||||||
Net loss | (6,209,900) | (6,209,900) | ||||||
Ending balance (in shares) at Jun. 30, 2019 | 500,000 | 1,160,240 | 2,318,012 | 42,758,630 | ||||
Ending balance at Jun. 30, 2019 | $ 500 | $ 1,200 | $ 2,300 | $ 42,800 | 192,890,400 | (3,968,100) | (187,343,300) | 1,625,800 |
Beginning balance (in shares) at Mar. 31, 2020 | 500,000 | 1,160,240 | 2,318,012 | 49,348,707 | ||||
Beginning balance at Mar. 31, 2020 | $ 500 | $ 1,200 | $ 2,300 | $ 49,300 | 200,092,800 | (3,968,100) | (201,907,400) | (5,729,400) |
Proceeds from sale of units of common stock and warrants for cash in private placement (in shares) | 125,000 | |||||||
Proceeds from sale of units of common stock and warrants for cash in private placement | $ 200 | 49,800 | 50,000 | |||||
Net proceeds from sale of common stock under equity line (in shares) | 6,201,995 | |||||||
Net proceeds from sale of common stock under equity line | $ 6,200 | 2,741,300 | 2,747,500 | |||||
Issuance of common stock at fair value for professional services (in shares) | 233,645 | |||||||
Issuance of common stock at fair value for professional services | $ 200 | 124,800 | 125,000 | |||||
Sale of common stock pursuant to 2019 Employee Stock Purchase Plan (in shares) | 28,125 | |||||||
Sale of common stock pursuant to 2019 Employee Stock Purchase Plan | 12,600 | 12,600 | ||||||
Expenses related to S-3 registration statement for shares underlying outstanding warrants | (29,400) | (29,400) | ||||||
Accrued dividends on Series B Preferred stock | (335,800) | (335,800) | ||||||
Stock-based compensation expense | 674,600 | 674,600 | ||||||
Net loss | (3,126,800) | (3,126,800) | ||||||
Ending balance (in shares) at Jun. 30, 2020 | 500,000 | 1,160,240 | 2,318,012 | 55,937,472 | ||||
Ending balance at Jun. 30, 2020 | $ 500 | $ 1,200 | $ 2,300 | $ 55,900 | $ 20,330,700 | $ (3,968,100) | $ (205,034,200) | $ (5,611,700) |
Description of Business
Description of Business | 3 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | VistaGen Therapeutics. Inc., a Nevada corporation (which may be referred to as VistaGen Company we our us CNS SAD AjDA MDD N-methyl-D-aspartate receptor VistaStem (NCEs CardioSafe Our Product Candidates PH94B is a novel, first-in-class neuroactive nasal spray with therapeutic potential in a wide range of indications involving anxiety or phobia. Self-administered in microgram-level doses, PH94B does not require systemic uptake and distribution to produce its rapid-onset anti-anxiety effects. We are initially developing PH94B as a potential rapid-onset (within 15 minutes), non-sedating, non-addictive new generation acute treatment of anxiety in adult patients with SAD, and as an acute treatment for adult patients with AjDA. With its rapid-onset pharmacology, lack of systemic exposure and excellent safety profile, we believe PH94B also has potential as a novel treatment for postpartum anxiety ( PPA PTSD POA PH10 is an odorless, fast-acting synthetic neurosteroid delivered intranasally that has therapeutic potential in a wide range of neuropsychiatric indications involving depression. Self-administered in microgram-level doses, PH10 does not require systemic uptake and distribution to produce its rapid-onset antidepressant effects. We are initially developing PH10 as a potential rapid-onset, non-sedating, non-addictive new generation stand-alone treatment of MDD. With its rapid-onset pharmacology, lack of systemic exposure, and exceptional safety profile in all studies to date, we believe PH10 also has potential as a novel treatment for postpartum depression ( PPD TRD SI AV-101 (4-Cl-KYN) is a novel, oral prodrug that targets the NMDAR, an ionotropic glutamate receptor in the brain. Abnormal NMDAR function is associated with numerous CNS diseases and disorders. AV-101’s active metabolite, 7-chloro-kynurenic acid ( 7-Cl-KYNA NP VistaStem is applying pluripotent stem cell ( hPSC CT RM Bayer Agreement Sublicensing and Collaboration Agreements Our product candidates are protected through a combination of patents, trade secrets, and proprietary know-how. If approved, they may also be eligible for periods of regulatory exclusivity. Our intellectual property portfolio includes issued U.S. and foreign patents, as well as U.S. and foreign patent applications. Subsidiaries As noted above, VistaStem, a California corporation, is our wholly-owned subsidiary. Our Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q ( Report |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States ( U.S. GAAP The accompanying unaudited Condensed Consolidated Financial Statements and notes to the Condensed Consolidated Financial Statements contained in this Report should be read in conjunction with our audited Consolidated Financial Statements for our fiscal year ended March 31, 2020 contained in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission ( SEC The accompanying unaudited Condensed Consolidated Financial Statements have been prepared assuming we will continue as a going concern. As a clinical-stage biopharmaceutical company having not yet developed commercial products or achieved sustainable revenues, we have experienced recurring losses and negative cash flows from operations resulting in a deficit of approximately $205.0 million accumulated from inception (May 1998) through June 30, 2020. We expect losses and negative cash flows from operations to continue for the foreseeable future as we engage in further development of PH94B, PH10 and AV-101, execute our drug rescue programs and pursue potential drug development and regenerative medicine opportunities. Since our inception in May 1998 through June 30, 2020, we have financed our operations and technology acquisitions primarily through the issuance and sale of our equity and debt securities for cash proceeds of approximately $86.1 million, as well as from an aggregate of approximately $17.7 million of government research grant awards (excluding the fair market value of government sponsored and funded clinical trials), strategic collaboration payments, intellectual property licensing and other revenues. Additionally, we have issued equity securities with an approximate value at issuance of $38.2 million in noncash acquisitions of product licenses and in settlements of certain liabilities, including liabilities for professional services rendered to us or as compensation for such services. Recent Developments At June 30, 2020, we had cash and cash equivalents of approximately $1.5 million. As more completely described in Note 8, Capital Stock Lincoln Park LPC Agreement LPC Registration Statement SEC Subsequent Events As more completely described in Note 11, Sublicensing and Collaboration Agreements Subsequent Events EverInsight Agreement Pherin As described more completely in Note 12, Subsequent Events Underwriting Agreement Public Offering hares Over-Allotment Option Option Shares Exercised Option Shares Going Concern Although the transactions described above have generated approximately $20.0 million in net cash procceds for us between April 1, 2020 and the date of this Report, we believe it is possible that our cash position at June 30, 2020, together with such net proceeds will not be sufficient to fund our planned operations for the twelve months following the issuance of these financial statements, which raises substantial doubt that we can continue as a going concern. During the next twelve months, subject to securing appropriate and adequate additional financing, we plan to prepare for and launch (i) a pivotal Phase 3 clinical trial of PH94B for acute treatment of anxiety in adult patients with SAD, (ii) a small exploratory open-label Phase 2A study of PH94B for acute treatment of adult patients with AjDA, and (iii) several nonclinical studies involving PH94B, PH10 and AV-101. When necessary and advantageous, we plan to raise additional capital, through the sale of our equity securities in one or more (i) private placements to accredited investors, (ii) public offerings and/or (iii) in strategic licensing and development collaborations involving one or more of our drug candidates in markets outside the United States, similar to the Everinsight Agreement. Subject to certain restrictions, our Registration Statement on Form S-3 (Registration No. 333-234025) (the S-3 Registration Statement As we have been in the past, we expect that, when and as necessary, we will be successful in raising additional capital from the sale of our equity securities either in one or more public offerings or in one or more private placement transactions with individual accredited investors and institutions. In addition to the potential sale of our equity securities, we may also seek to enter research, development and/or commercialization collaborations similar to the EverInsight Agreement and the Bayer Agreement that could generate revenue or provide funding, including non-dilutive funding, for development of one or more of our CNS product candidate programs. We may also seek additional government grant awards or agreements similar to our prior agreement with the U.S. National Institutes of Health ( NIH Our future working capital requirements will depend on many factors, including, without limitation, potential impacts related to the current COVID-19 pandemic, the scope and nature of opportunities related to our success and the success of certain other companies in nonclinical and clinical trials, including our development and commercialization of our current product candidates and various applications of our stem cell technology platform, the availability of, and our ability to obtain, government grant awards and agreements, and our ability to enter into collaborations on terms acceptable to us. To further advance the clinical development of PH94B, PH10, and AV-101 and, to a lesser extent, our stem cell technology platform, as well as support our operating activities, we plan to continue to carefully manage our routine operating costs, including our employee headcount and related expenses, as well as costs relating to regulatory consulting, contract manufacturing, research and development, investor and public relations, business development, legal, intellectual property acquisition and protection, public company compliance and other professional services and operating costs. Notwithstanding the foregoing, there can be no assurance that our current strategic collaborations under the EverInsight Agreement and the Bayer Agreement, will generate revenue from future potential milestone payments, or that future financings or government or other strategic collaborations will be available to us in sufficient amounts, in a timely manner, or on terms acceptable to us, if at all. If we are unable to obtain substantial additional financing on a timely basis when needed in 2021 or thereafter, our business, financial condition, and results of operations may be harmed, the price of our stock may decline, we may be required to reduce, defer, or discontinue certain of our research and development activities and we may not be able to continue as a going concern. As noted above, these Condensed Consolidated Financial Statements do not include any adjustments that might result from the negative outcome of this uncertainty. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include those relating to revenue recognition, share-based compensation, right-of-use assets and lease liabilities and assumptions that have been used historically to value warrants and warrant modifications. Revenue Recognition We generate revenue from collaborative research and development arrangements, licensing and technology transfer agreements, including strategic licenses or sublicenses, and government grants. We expect that our primary source of revenue beginning in the second fiscal quarter of our current fiscal year will be from the EverInsight Agreement involving clinical development and commercialization of PH94B for acute treatment of anxiety in adults with SAD, and potentially other anxiety-related disorders, in Greater China, South Korea, and Southeast Asia, which is described in more detail in Note 11, Sublicensing and Collaboration Agreements. Sublicensing and Collaborative Agreements Under Accounting Standards Codification ( ASC Revenue from Contracts with Customers (Topic 606) Performance Obligations We assess whether each promised good or service is distinct for the purpose of identifying the performance obligations in the contract. This assessment involves subjective determinations and requires judgments about the individual promised goods or services and whether such components are separable from the other aspects of the contractual relationship. In assessing whether a promised good or service is distinct in the evaluation of a collaboration arrangement subject to Topic 606, we consider factors such as the research, manufacturing and commercialization capabilities of the collaboration partner and the availability of the associated expertise in the general marketplace. Collaboration arrangements can have several promised goods or services including a license for our intellectual property, product supply and development and regulatory services. When the customer could not obtain the intended benefit of the contract from a promised good or service without one or more other promises in the contract, the promise is determined to be not distinct in the context of the contract and is combined with other promises until the combined promises are distinct to identify performance obligations. We have determined that the Everinsight Agreement includes a single combined performance obligation that includes both the license to intellectual property and development and regulatory services. Arrangements can include promises for optional additional items, which are considered marketing offers and are accounted for as separate contracts when the customer elects such options. Arrangements that include a promise for future supply of product for either clinical development or commercial supply and optional research and development services at the customer’s or the Company’s discretion are generally considered as options. We assess whether these options provide a material right to the customer and if so, such material rights are accounted for as separate performance obligations. When the customer exercises an option, any additional payments related to the option are recorded in revenue when the customer obtains control of the goods or services. Transaction Price Arrangements may have both fixed and variable consideration. For collaboration agreements, the non-refundable upfront fees and product supply selling prices are considered fixed, while milestone payments are considered variable consideration when determining the transaction price. At the inception of each arrangement, we evaluate whether the development milestones are considered probable of being achieved and estimate an amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the value of the associated milestone is included in the transaction price. Milestone payments that are not within our control or the licensee’s control, such as approvals from regulators, are generally not considered probable of being achieved until such approvals are received. For sales-based royalties, including commercial milestone payments based on the level of sales, for which the license is deemed to be the predominant item to which the royalties relate, we recognize revenue at the later of when (a) the related sales occur, or (b) the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). In determining the transaction price, we adjust consideration for the effects of the time value of money if the timing of payments provides us with a significant benefit of financing. We do not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the licensee and the transfer of the promised goods or services to the licensee will be one year or less. Allocation of Consideration As part of the accounting for collaboration arrangements, we must develop assumptions that require judgment to determine the stand-alone selling price of each performance obligation identified in the contract. The transaction price is allocated to the identified performance obligations in proportion to their stand-alone selling prices ( SSP Timing of Recognition Significant management judgment is required to determine the level of effort required under collaboration arrangements and the period over which we expect to complete our performance obligations under the arrangement. The performance period or measure of progress is estimated at the inception of the arrangement and re-evaluated in each reporting period. This re-evaluation may shorten or lengthen the period over which revenue is recognized. Changes to these estimates are recorded on a cumulative catch up basis. Revenue is recognized for products at a point in time and for licenses of functional intellectual property at the point in time the customer can use and benefit from the license. For performance obligations that are services, revenue is recognized over time using an output or input method. For performance obligations that are a combination of licenses to intellectual property and interdependent services, the nature of the combined performance obligation is considered when determining the method and measure of progress that best represents the satisfaction of the performance obligation. For the single combined performance obligation of the EverInsight Agreement, the measure of progress is stand-ready straight-line over the period in which we expect to perform the services related to the license of PH94B. We have recorded no receivables, contract assets, or contract liabilities as of June 30, 2020 related to the EverInsight Agreement, as there are no rights and obligations as of that date. In subsequent periods, the difference between revenue recognized to-date and the consideration invoiced to-date will be recognized as either a contract asset/unbilled revenue (revenue earned exceeds invoices) or a contract liability/deferred revenue (invoices exceed revenue earned). Contract Costs Subsequent to June 30, 2020, we expect to make cash payments aggregating $345,000 for sublicense fees which we are obligated to make pursuant to our PH94B license from Pherin, and fees for consulting services exclusively related to the EverInsight Agreement. Additionally, on June 24, 2020, we issued 233,645 unregistered shares of our common stock, valued at $125,000, as partial compensation for consulting services exclusively related to the EverInsight Agreement. These sublicense fees and consulting payments were incurred solely as a result of obtaining the EverInsight Agreement, and will, accordingly, be capitalized as contract acquisition costs. Capitalized contract acquisition costs are amortized over the period in which we expect to satisfy the performance obligations under the arrangement and will be included in general and administrative expenses. At June 30, 2020, the $125,000 fair value of the common stock issued has been recorded as a prepaid asset. In subsequent periods, the aggregate costs of $470,000 incurred to obtain the EverInsight Agreement will be capitalized as contract acquisition costs and amortized as indicated. In the quarter ended June 30, 2020, no amounts were amortized to expense, as services have not yet commenced under the arrangement. Research and Development Expenses Research and development expenses are composed of both internal and external costs. Internal costs include salaries and employment-related expenses, including stock-based compensation expense, of scientific personnel and direct project costs. External research and development expenses consist primarily of costs associated with clinical and non-clinical development of PH94B, PH10, AV-101, and stem cell research and development costs, and costs related to the application and prosecution of patents related to those product candidates and, to a lesser extent, our stem cell technology platform. All such costs are charged to expense as incurred. We also record accruals for estimated ongoing clinical trial costs. Clinical trial costs represent costs incurred by contract research organizations ( CRO Stock-Based Compensation We recognize compensation cost for all stock-based awards to employees and non-employee consultants based on the grant date fair value of the award. We record non-cash, stock-based compensation expense over the period during which the employee or other grantee is required to perform services in exchange for the award, which generally represents the scheduled vesting period. We have not granted restricted stock awards to employees nor do we have any awards with market or performance conditions. Non-cash expense attributable to compensatory grants of shares of our common stock to non-employees is determined by the quoted market price of the stock on the date of grant and is either recognized as fully-earned at the time of the grant or amortized ratably over the term of the related service agreement, depending on the terms of the specific agreement. The table below summarizes stock-based compensation expense included in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended June 30, 2020. Three Months Ended June 30, 2020 2019 Research and development expense $ 226,600 $ 390,600 General and administrative expense 448,000 672,400 Total stock-based compensation expense $ 674,600 $ 1,063,000 Expense amounts reported above include $2,500 and $1,500 in research and development expense and general and administrative expense, respectively, attributable to our 2019 Employee Stock Purchase Plan for the quarter ended June 30, 2020. During the quarter ended June 30, 2020, we granted from our 2019 Omnibus Equity Incentive Plan (the 2019 Plan Assumption: Weighted Average Range Market price per share at grant date $ 0.41 $ 0.40 to 0.54 Exercise price per share $ 0.41 $ 0.40 to 0.55 Risk-free interest rate 0.39 % 0.35% to 0.44 % Expected term in years 5.36 5.20 to 5.94 Volatility 84.10 % 82.93% to 85.85 % Dividend rate 0.0 % 0.0 % Shares 1,945,000 Fair Value per share $ 0.28 At June 30, 2020, there were stock options outstanding under our 2016 Equity Incentive Plan (the 2016 Plan Leases, Right-of-Use Assets and Lease Liabilities On April 1, 2019, we adopted Financial Accounting Standards Board ( FASB ASU Leases ASC Leases (Topic 842): ASC 842 We determine whether an arrangement is an operating or financing lease at contract inception. Operating lease assets represent our right to use an underlying asset for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date of the lease based upon the present value of lease payments over the lease term. When determining the lease term, we include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. In determining the present value of the lease payments, we use the interest rate implicit in the lease when it is readily determinable and we use our estimated incremental borrowing rate based upon information available at the commencement date when the implicit rate is not readily determinable. The lease payments used to determine our operating lease assets include lease incentives and stated rent increases and may include escalation or other clauses linked to rates of inflation or other factors when determinable and are recognized in our operating lease assets in our condensed consolidated balance sheets. Our operating leases are reflected in right of use asset – operating leases, other current liabilities and non-current operating lease liability in our condensed consolidated balance sheets. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Short-term leases, defined as leases that have a lease term of 12 months or less at the commencement date, are excluded from this treatment and are recognized on a straight-line basis over the term of the lease. Our accounting for financing leases, previously referred to as “capital leases” under earlier guidance, remained substantially unchanged with our adoption of ASC 842. Financing leases are included in property and equipment, net and as current and non-current financing lease liabilities in our condensed consolidated balance sheets. Refer to Note 10, Commitments and Contingencies, Comprehensive Loss We have no components of other comprehensive loss other than net loss, and accordingly our comprehensive loss is equivalent to our net loss for the periods presented. Loss per Common Share Basic net loss attributable to common stockholders per share of common stock excludes the effect of dilution and is computed by dividing net loss increased by the accrual of dividends on outstanding shares of our Series B 10% Convertible Preferred Stock ( Series B Preferred As a result of our net loss for all periods presented, potentially dilutive securities were excluded from the computation of diluted net loss per share, as their effect would be antidilutive. Potentially dilutive securities excluded in determining diluted net loss attributable to common stockholders per common share are as follows: At June 30, At March 31, 2020 2020 Series A Preferred stock issued and outstanding (1) 750,000 750,000 Series B Preferred stock issued and outstanding (2) 1,160,240 1,160,240 Series C Preferred stock issued and outstanding (3) 2,318,012 2,318,012 Outstanding options under the Company's Amended and Restated 2016 (formerly 2008) Stock Incentive Plan and 2019 Omnibus Equity Incentive Plan 11,948,088 10,003,088 Outstanding warrants to purchase common stock 26,589,834 26,555,281 Total 42,766,174 40,786,621 ____________ (1) Assumes exchange under the terms of the October 11, 2012 Note Exchange and Purchase Agreement, as amended (2) Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series B 10% Convertible Preferred Stock, effective May 5, 2015; excludes shares of unegistered common stock issuable in payment of dividends on Series B Preferred upon conversion (3) Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series C Convertible Preferred Stock, effective January 25, 2016 Fair Value Measurements We do not use derivative instruments for hedging of market risks or for trading or speculative purposes. We carried no assets or liabilities that are measured on a recurring basis at fair value at June 30, 2020 or March 31, 2020. Recent Accounting Pronouncements Other than as described in our Form 10-K for our fiscal year ended March 31, 2020, we do not expect that accounting standards that have been issued or proposed by the Financial Accounting Standards Board (FASB |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Jun. 30, 2020 | |
Other Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets are composed of the following at June 30, 2020 and March 31, 2020: June 30, March 31, 2020 2020 Clinical and nonclinical materials and contract services $ 115,200 $ 115,200 Fair value of securities issued for professional services 125,000 - Insurance 391,200 107,200 All other 1,600 2,700 $ 633,000 $ 225,100 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment is composed of the following at June 30, 2020 and March 31, 2020: June 30, March 31, 2020 2020 Laboratory equipment $ 892,500 $ 892,500 Tenant improvements 214,400 214,400 Computers and network equipment 54,600 54,600 Office furniture and equipment 84,600 84,600 1,246,100 1,246,100 Accumulated depreciation and amortization (1,061,900 ) (1,036,500 ) Property and equipment, net $ 184,200 $ 209,600 Included in amounts reported above for office furniture and equipment is the right-of-use asset related to a financing lease of certain office equipment. Amounts associated with assets subject to the financing lease at June 30, 2020 and March 31, 2020 are as follows: June 30, March 31, 2020 2020 Office equipment subject to financing lease $ 14,700 $ 14,700 Accumulated depreciation (10,100 ) (9,400 ) Net book value of office equipment subject to financing lease $ 4,600 $ 5,300 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Jun. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued expenses are composed of the following at June 30, 2020 and March 31, 2020: June 30, March 31, 2020 2020 Accrued expenses for clinical and nonclinical materials, development and contract services $ 397,100 $ 462,300 Accrued professional services 194,600 76,500 All other 16,100 22,700 $ 607,800 $ 561,500 |
Notes Payable
Notes Payable | 3 Months Ended |
Jun. 30, 2020 | |
Notes Payable [Abstract] | |
Notes Payable | The following table summarizes our unsecured promissory notes at June 30, 2020 and March 31, 2020: June 30, 2020 March 31, 2020 Principal Accrued Principal Accrued Balance Interest Total Balance Interest Total 7.30% and 6.30% Notes payable to insurance premium financing company (current) $ 328,800 $ - $ 328,800 $ 56,500 $ - $ 56,500 1% Note payable under Paycheck Protection Program 224,400 400 224,800 - - - less: current portion (99,700 ) (400 ) (100,100 ) - - - Non-current portion $ 124,700 $ - $ 124,700 $ - $ - $ - Total current notes payable $ 428,500 $ 400 $ 428,900 $ 56,500 $ - $ 56,500 In May 2020, we executed a 6.30% promissory note in the principal amount of $322,200 in connection with certain insurance policy premiums. The note is payable in monthly installments of $33,200, including principal and interest, through March 2021, and had an outstanding principal balance of $290,800 at June 30, 2020. In February 2020, we executed a 7.30% promissory note in the principal amount of $62,600 in connection with other insurance policy premiums. That note is payable in monthly installments of $6,500 including principal and interest, through December 2020 and had an outstanding principal balance of $38,000 at June 30, 2020. In April 2020, we entered into a note payable agreement (the PPP Loan Agreement Lender SBA PPP CARES Act PPP Loan |
Capital Stock
Capital Stock | 3 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Capital Stock | Common Stock Purchase Agreement with Lincoln Park Capital Fund On March 24, 2020, we entered into a purchase agreement and a registration rights agreement with Lincoln Park Capital Fund ( LPC LPC Agreement Initial Purchase Shares Initial Purchase Commitment Shares LPC Registration Statement Commencement Date On any business day during the term of the LPC Agreement, we have the right, in our sole discretion, to direct LPC to purchase up to 100,000 shares on such business day (the “ Regular Purchase accelerated purchases and additional accelerated purchases as described in the LPC Agreement Subsequent Events, Sale of Common Stock and Warrants in the Spring 2020 Private Placement In April 2020, in a self-directed private placement, we sold to an accredited investor units to purchase an aggregate of 125,000 unregistered shares of our common stock and four-year warrants to purchase 125,000 shares of our common stock at an exercise price of $0.50 per share and we received cash proceeds of $50,000 (the Spring 2020 Private Placement Registration Statement for shares underlying warrants issued in Private Placements On May 1, 2020, we filed a registration statement on Form S-3 (Registration No. 333-237968) to register approximately 12.1 million shares of common stock underlying outstanding warrants that we had issued in earlier private placement offerings, including the Spring 2020 Private Placement, as well as common stock underlying warrants that had been previously issued to various consultants as full or partial compensation for their services. Included in the registration statement were shares of our common stock underlying approximately 5.8 million outstanding warrants to purchase shares of our common stock that had been modified in December 2019 to temporarily reduce, for a period of two years or, if sooner, until the expiration of the warrant, the exercise price of such warrants to $0.50 per share, in order to more closely align the exercise price of the warrants with the trading price of our common stock at that time (the Winter 2019 Warrant Modification Warrant Registration Statement Warrants Outstanding The following table summarizes warrants outstanding and exercisable as of June 30, 2020 subsequent to the issuance in the Spring 2020 Private Placement described above. The weighted average exercise price of outstanding and exercisable warrants at June 30, 2020 is $1.64 per share and $1.80 per share, respectively. Warrants Warrants Exercise Outstanding at Exercisable at Price Expiration June 30, June 30, per Share Date 2020 2020 $ 0.50 3/25/2021 to 4/30/2024 8,151,312 8,026,312 $ 0.73 7/25/2025 3,870,077 - $ 0.805 12/31/2022 80,431 80,431 $ 1.50 12/13/2022 9,596,200 9,596,200 $ 1.82 3/7/2023 1,388,931 1,388,931 $ 3.51 12/31/2021 50,000 50,000 $ 5.30 5/16/2021 2,705,883 2,705,883 $ 7.00 9/2/2020 to 3/3/2023 747,000 747,000 26,589,834 22,594,757 At June 30, 2020, with the effectiveness of the Warrant Registration Statement in May 2020, the shares of common stock underlying essentially all of the outstanding warrants except those having an exercise price of $7.00 per share have been registered for resale by the warrant holders. The warrants exercisable at $0.73 per share become exercisable on July 25, 2020. Additionally, no outstanding warrant is subject to any down round anti-dilution protection features and all of the outstanding warrants are exercisable by the holders only by payment in cash of the stated exercise price per share. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Contract Research and Development Agreement with Cato Research Ltd. Cato Holding Company ( CHC CBV CRL CRO In July 2017, we entered into a Master Services Agreement ( MSA License and Option Agreements with Pherin Pharmaceuticals, Inc. During our fiscal year ended March 31, 2019, we issued an aggregate of 2,556,361 shares of our unregistered common stock having an issue-date fair market value of $4,250,000 to Pherin to acquire exclusive worldwide licenses to develop and commercialize PH94B and PH10. We recorded the acquisition of the licenses as research and development expense during our fiscal year ended March 31, 2019. During the quarters ended June 30, 2020 and 2019, we recorded $10,000 and $30,000, respectively, as research and development expense for monthly support payments to Pherin under the terms of the PH94B and PH10 license agreements. Our liability for such monthly support payments terminated in April 2020 under the terms of the PH10 license agreement. We recorded no amounts payable to Pherin at June 30, 2020 or March 31, 2020. At June 30,2020, Pherin held approximately 2.4% of our outstanding common stock. Consulting Agreement During the quarters ended June 30, 2020 and 2019, we engaged a consulting firm headed by one of the independent members of our Board to provide various market research studies, competitive analyses, and commercial advisory projects for certain of our CNS pipeline candidates pursuant to which we recorded research and development expense of $15,000 and $27,700 for the quarters ended June 30, 2020 and 2019, respectively. We recorded accounts payable and accrued expenses of $15,000 at June 30, 2020 and no amounts payable at March 31, 2020 related to these projects and services. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Operating Leases We lease our headquarters office and laboratory space in South San Francisco, California under the terms of a lease that expires on July 31, 2022 and that provides an option to renew for an additional five years at then-current market rates. Consistent with the guidance in Accounting Standards Codification Topic 842, Leases ( ASC 842 The following table summarizes the presentation of the operating lease in our Condensed Consolidated Balance Sheet at June 30, 2020 and March 31, 2020: As of June 30, 2020 As of March 31, 2020 Assets Right of use asset – operating lease $ 3,492,100 $ 3,579,600 Liabilities Current operating lease obligation $ 325,700 $ 313,400 Non-current operating lease obligation 3,631,100 3,715,600 Total operating lease liability $ 3,956,800 $ 4,029,000 The following table summarizes the effect of operating lease costs in the Company’s condensed consolidated statements of operations for the three months ended June 30, 2020 and 2019: For the Three Months Ended For the Three Months Ended June 30, 2020 June 30, 2019 Operating lease cost $ 212,800 $ 208,800 The minimum (base rental) lease payments related to our South San Francisco operating lease are expected to be as follows: Fiscal Years Ending March 31, 2021 (remaining nine months) $ 488,000 2022 668,400 2023 726,000 2024 766,000 2025 789,000 Thereafter 1,931,400 Total lease expense 5,368,800 Less imputed interest (1,412,000 ) Present value of operating lease liabilities $ 3,956,800 The remaining lease term, including the assumed five-year extension at the expiration of the current lease period, and the discount rate assumption for our South San Francisco operating lease is as follows: As of June 30, 2020 Assumed remaining lease term in years 7.08 Assumed discount rate 8.54 % The interest rate implicit in lease contracts is typically not readily determinable and, as such, we used our estimated incremental borrowing rate based on information available at the adoption of ASC 842, which represents an internally developed rate that would be incurred to borrow, on a collateralized basis, over a similar term, an amount equal to the lease payments in a similar economic environment. Supplemental disclosure of cash flow information related to our operating lease included in cash flows used by operating activities in the condensed consolidated statements of cash flows is as follows: For the Three Months Ended For the Three Months Ended June 30, 2020 June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities $ 197,500 $ 188,200 During the three months ended June 30, 2020, we recorded no new right of use assets arising from new lease liabilities. We also lease a small office in the San Francisco Bay Area under a month-to-month arrangement at insignificant cost and have made an accounting policy election not to apply the ASC 842 operating lease recognition requirements to such short-term lease. We recognize the lease payments for this lease in general and administrative expense over the lease term. We recorded rent expense of $3,500 and $3,400 for the three months ended June 30, 2020 and 2019, respectively, attributable to this lease. |
Sublicensing and Collaborative
Sublicensing and Collaborative Agreements | 3 Months Ended |
Jun. 30, 2020 | |
Sublicensing And Collaborative Agreements | |
Sublicensing and Collaborative Agreements | PH94B Sublicense Agreement with EverInsight On June 24, 2020, we entered into a license and collaboration agreement (the EverInsight Agreement EverInsight Territory Under the terms of the EverInsight Agreement, EverInsight is be responsible for all costs related to developing, obtaining regulatory approval of, and commercializing PH94B for treatment of SAD, and potentially other anxiety-related indications, in the Territory. A joint development committee has been established between us and EverInsight to coordinate and review the development and commercialization plans with respect to PH94B in the Territory. We are responsible to pursue clinical development and regulatory submissions of PH94B for acute treatment of anxiety in adults with SAD, and potentially other anxiety-related indications, in the United States on a ‘‘best efforts’’ basis, with no guarantee of success. EverInsight has the option to participate in the global Phase 3 clinical trials of PH94B and will assume all direct costs and expenses of conducting such clinical trial in the Territory and a portion of the indirect costs of the global trial. We will transfer all development data (nonclinical and clinical data) and our regulatory documentation related to PH94B throughout the term as it is developed or generated or otherwise comes into our control. We will grant to EverInsight a Right of Reference to all of our regulatory documentation and our development data. Under the terms of the EverInsight Agreement, EverInsight agreed to pay us a non-refundable upfront license payment of $5.0 million within 30 business days of the effective date of the agreement. Refer to Note 12, Subsequent Events We have determined that we have one combined performance obligation for the license to develop and commercialize PH94B in the Territory and related development and regulatory services. In addition, EverInsight has an option that will create manufacturing obligations for us during development upon exercise by EverInsight. These option for manufacturing services was evaluated and determined not to include a material right. Development and commercialization milestones were not considered probable at inception and are therefore were excluded from the initial transaction price. The royalties were excluded from the initial transaction price because they relate to a license of intellectual property and are subject to the royalty constraint. We recognize revenue as the combined performance obligation is satisfied over time using an output method. The measure of progress is stand-ready straight-line over the period in which we expect to perform the services related to the license of PH94B. As of June 30, 2020, no revenue related to this agreement has been recognized. As of June 30, 2020, the aggregate amount of the transaction price allocated to the remaining performance obligation is $5.0 million and will be recognized as revenue as the services are completed, which is expected to occur over approximately the next four years beginning in the quarter ending September 30, 2020. Unless earlier terminated due to certain material breaches of the contract, or otherwise, the License Agreement will expire on a jurisdiction-by-jurisdiction basis until the latest to occur of expiration of the last valid claim under a licensed patent of PH94B in such jurisdiction, the expiration of regulatory exclusivity in such jurisdiction or ten years after the first commercial sale of PH94B in such jurisdiction. BlueRock Therapeutics Sublicense Agreement In December 2016, we entered into an Exclusive License and Sublicense Agreement with BlueRock Therapeutics, LP, a next generation regenerative medicine company established in December 2016 by Bayer AG and Versant Ventures ( BlueRock Therapeutics UHN Bayer Agreement |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | We have evaluated subsequent events through the date of this Report and have identified the following matters requiring disclosure: Registered Public Offering of Common Stock On August 2, 2020, we entered into an underwriting agreement (the Underwriting Agreement Underwriter Public Offering Shares Over-Allotment Option Option Shares Exercised Option Shares Receipt of $5,000,000 Upfront License Payment from EverInsight On August 3, 2020, we received the $5,000,000 non-dilutive upfront license fee payment from EverInsight , which resulted in net cash proceeds to us of approximately $4.655 million after the sublicense payment we agreed to make to Pherin pursuant to our PH94B license from Pherin, and payment for consulting services related to the EverInsight Agreement. Exercise of Warrants During July 2020, holders of warrants to purchase an aggregate of 228,000 shares of our common stock exercised such warrants, and we received aggregate cash proceeds of $114,000. We issued 228,000 registered shares of our common stock upon these exercises pursuant to the effectiveness of the Warrant Registration Statement. Sales of Common Stock under the LPC Agreement During July 2020, we sold an additional 100,000 registered shares of our common stock to LPC under the terms of the LPC Agreement and received cash proceeds of $51,000. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include those relating to revenue recognition, share-based compensation, right-of-use assets and lease liabilities and assumptions that have been used historically to value warrants and warrant modifications. |
Revenue Recognition | We generate revenue from collaborative research and development arrangements, licensing and technology transfer agreements, including strategic licenses or sublicenses, and government grants. We expect that our primary source of revenue beginning in the second fiscal quarter of our current fiscal year will be from the EverInsight Agreement involving clinical development and commercialization of PH94B for acute treatment of anxiety in adults with SAD, and potentially other anxiety-related disorders, in Greater China, South Korea, and Southeast Asia, which is described in more detail in Note 11, Sublicensing and Collaboration Agreements. Sublicensing and Collaborative Agreements Under Accounting Standards Codification ( ASC Revenue from Contracts with Customers (Topic 606) Performance Obligations We assess whether each promised good or service is distinct for the purpose of identifying the performance obligations in the contract. This assessment involves subjective determinations and requires judgments about the individual promised goods or services and whether such components are separable from the other aspects of the contractual relationship. In assessing whether a promised good or service is distinct in the evaluation of a collaboration arrangement subject to Topic 606, we consider factors such as the research, manufacturing and commercialization capabilities of the collaboration partner and the availability of the associated expertise in the general marketplace. Collaboration arrangements can have several promised goods or services including a license for our intellectual property, product supply and development and regulatory services. When the customer could not obtain the intended benefit of the contract from a promised good or service without one or more other promises in the contract, the promise is determined to be not distinct in the context of the contract and is combined with other promises until the combined promises are distinct to identify performance obligations. We have determined that the Everinsight Agreement includes a single combined performance obligation that includes both the license to intellectual property and development and regulatory services. Arrangements can include promises for optional additional items, which are considered marketing offers and are accounted for as separate contracts when the customer elects such options. Arrangements that include a promise for future supply of product for either clinical development or commercial supply and optional research and development services at the customer’s or the Company’s discretion are generally considered as options. We assess whether these options provide a material right to the customer and if so, such material rights are accounted for as separate performance obligations. When the customer exercises an option, any additional payments related to the option are recorded in revenue when the customer obtains control of the goods or services. Transaction Price Arrangements may have both fixed and variable consideration. For collaboration agreements, the non-refundable upfront fees and product supply selling prices are considered fixed, while milestone payments are considered variable consideration when determining the transaction price. At the inception of each arrangement, we evaluate whether the development milestones are considered probable of being achieved and estimate an amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the value of the associated milestone is included in the transaction price. Milestone payments that are not within our control or the licensee’s control, such as approvals from regulators, are generally not considered probable of being achieved until such approvals are received. For sales-based royalties, including commercial milestone payments based on the level of sales, for which the license is deemed to be the predominant item to which the royalties relate, we recognize revenue at the later of when (a) the related sales occur, or (b) the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). In determining the transaction price, we adjust consideration for the effects of the time value of money if the timing of payments provides us with a significant benefit of financing. We do not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the licensee and the transfer of the promised goods or services to the licensee will be one year or less. Allocation of Consideration As part of the accounting for collaboration arrangements, we must develop assumptions that require judgment to determine the stand-alone selling price of each performance obligation identified in the contract. The transaction price is allocated to the identified performance obligations in proportion to their stand-alone selling prices ( SSP Timing of Recognition Significant management judgment is required to determine the level of effort required under collaboration arrangements and the period over which we expect to complete our performance obligations under the arrangement. The performance period or measure of progress is estimated at the inception of the arrangement and re-evaluated in each reporting period. This re-evaluation may shorten or lengthen the period over which revenue is recognized. Changes to these estimates are recorded on a cumulative catch up basis. Revenue is recognized for products at a point in time and for licenses of functional intellectual property at the point in time the customer can use and benefit from the license. For performance obligations that are services, revenue is recognized over time using an output or input method. For performance obligations that are a combination of licenses to intellectual property and interdependent services, the nature of the combined performance obligation is considered when determining the method and measure of progress that best represents the satisfaction of the performance obligation. For the single combined performance obligation of the EverInsight Agreement, the measure of progress is stand-ready straight-line over the period in which we expect to perform the services related to the license of PH94B. We have recorded no receivables, contract assets, or contract liabilities as of June 30, 2020 related to the EverInsight Agreement, as there are no rights and obligations as of that date. In subsequent periods, the difference between revenue recognized to-date and the consideration invoiced to-date will be recognized as either a contract asset/unbilled revenue (revenue earned exceeds invoices) or a contract liability/deferred revenue (invoices exceed revenue earned). Contract Costs Subsequent to June 30, 2020, we expect to make cash payments aggregating $345,000 for sublicense fees which we are obligated to make pursuant to our PH94B license from Pherin, and fees for consulting services exclusively related to the EverInsight Agreement. Additionally, on June 24, 2020, we issued 233,645 unregistered shares of our common stock, valued at $125,000, as partial compensation for consulting services exclusively related to the EverInsight Agreement. These sublicense fees and consulting payments were incurred solely as a result of obtaining the EverInsight Agreement, and will, accordingly, be capitalized as contract acquisition costs. Capitalized contract acquisition costs are amortized over the period in which we expect to satisfy the performance obligations under the arrangement and will be included in general and administrative expenses. At June 30, 2020, the $125,000 fair value of the common stock issued has been recorded as a prepaid asset. In subsequent periods, the aggregate costs of $470,000 incurred to obtain the EverInsight Agreement will be capitalized as contract acquisition costs and amortized as indicated. In the quarter ended June 30, 2020, no amounts were amortized to expense, as services have not yet commenced under the arrangement. |
Research and Development Expenses | Research and development expenses are composed of both internal and external costs. Internal costs include salaries and employment-related expenses, including stock-based compensation expense, of scientific personnel and direct project costs. External research and development expenses consist primarily of costs associated with clinical and non-clinical development of PH94B, PH10, AV-101, and stem cell research and development costs, and costs related to the application and prosecution of patents related to those product candidates and, to a lesser extent, our stem cell technology platform. All such costs are charged to expense as incurred. We also record accruals for estimated ongoing clinical trial costs. Clinical trial costs represent costs incurred by contract research organizations ( CRO |
Stock-Based Compensation | We recognize compensation cost for all stock-based awards to employees and non-employee consultants based on the grant date fair value of the award. We record non-cash, stock-based compensation expense over the period during which the employee or other grantee is required to perform services in exchange for the award, which generally represents the scheduled vesting period. We have not granted restricted stock awards to employees nor do we have any awards with market or performance conditions. Non-cash expense attributable to compensatory grants of shares of our common stock to non-employees is determined by the quoted market price of the stock on the date of grant and is either recognized as fully-earned at the time of the grant or amortized ratably over the term of the related service agreement, depending on the terms of the specific agreement. The table below summarizes stock-based compensation expense included in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended June 30, 2020. Three Months Ended June 30, 2020 2019 Research and development expense $ 226,600 $ 390,600 General and administrative expense 448,000 672,400 Total stock-based compensation expense $ 674,600 $ 1,063,000 Expense amounts reported above include $2,500 and $1,500 in research and development expense and general and administrative expense, respectively, attributable to our 2019 Employee Stock Purchase Plan for the quarter ended June 30, 2020. During the quarter ended June 30, 2020, we granted from our 2019 Omnibus Equity Incentive Plan (the 2019 Plan Assumption: Weighted Average Range Market price per share at grant date $ 0.41 $ 0.40 to 0.54 Exercise price per share $ 0.41 $ 0.40 to 0.55 Risk-free interest rate 0.39 % 0.35% to 0.44 % Expected term in years 5.36 5.20 to 5.94 Volatility 84.10 % 82.93% to 85.85 % Dividend rate 0.0 % 0.0 % Shares 1,945,000 Fair Value per share $ 0.28 At June 30, 2020, there were stock options outstanding under our 2016 Equity Incentive Plan (the 2016 Plan |
Leases, Right-of- Use Assets and Lease Liabilities | On April 1, 2019, we adopted Financial Accounting Standards Board ( FASB ASU Leases ASC Leases (Topic 842): ASC 842 We determine whether an arrangement is an operating or financing lease at contract inception. Operating lease assets represent our right to use an underlying asset for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date of the lease based upon the present value of lease payments over the lease term. When determining the lease term, we include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. In determining the present value of the lease payments, we use the interest rate implicit in the lease when it is readily determinable and we use our estimated incremental borrowing rate based upon information available at the commencement date when the implicit rate is not readily determinable. The lease payments used to determine our operating lease assets include lease incentives and stated rent increases and may include escalation or other clauses linked to rates of inflation or other factors when determinable and are recognized in our operating lease assets in our condensed consolidated balance sheets. Our operating leases are reflected in right of use asset – operating leases, other current liabilities and non-current operating lease liability in our condensed consolidated balance sheets. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Short-term leases, defined as leases that have a lease term of 12 months or less at the commencement date, are excluded from this treatment and are recognized on a straight-line basis over the term of the lease. Our accounting for financing leases, previously referred to as “capital leases” under earlier guidance, remained substantially unchanged with our adoption of ASC 842. Financing leases are included in property and equipment, net and as current and non-current financing lease liabilities in our condensed consolidated balance sheets. Refer to Note 10, Commitments and Contingencies, |
Comprehensive Loss | We have no components of other comprehensive loss other than net loss, and accordingly our comprehensive loss is equivalent to our net loss for the periods presented. |
Loss per Common Share | Basic net loss attributable to common stockholders per share of common stock excludes the effect of dilution and is computed by dividing net loss increased by the accrual of dividends on outstanding shares of our Series B 10% Convertible Preferred Stock ( Series B Preferred As a result of our net loss for all periods presented, potentially dilutive securities were excluded from the computation of diluted net loss per share, as their effect would be antidilutive. Potentially dilutive securities excluded in determining diluted net loss attributable to common stockholders per common share are as follows: At June 30, At March 31, 2020 2020 Series A Preferred stock issued and outstanding (1) 750,000 750,000 Series B Preferred stock issued and outstanding (2) 1,160,240 1,160,240 Series C Preferred stock issued and outstanding (3) 2,318,012 2,318,012 Outstanding options under the Company's Amended and Restated 2016 (formerly 2008) Stock Incentive Plan and 2019 Omnibus Equity Incentive Plan 11,948,088 10,003,088 Outstanding warrants to purchase common stock 26,589,834 26,555,281 Total 42,766,174 40,786,621 ____________ (1) Assumes exchange under the terms of the October 11, 2012 Note Exchange and Purchase Agreement, as amended (2) Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series B 10% Convertible Preferred Stock, effective May 5, 2015; excludes shares of unegistered common stock issuable in payment of dividends on Series B Preferred upon conversion (3) Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series C Convertible Preferred Stock, effective January 25, 2016 |
Fair Value Measurements | We do not use derivative instruments for hedging of market risks or for trading or speculative purposes. We carried no assets or liabilities that are measured on a recurring basis at fair value at June 30, 2020 or March 31, 2020. |
Recent Accounting Pronouncements | Other than as described in our Form 10-K for our fiscal year ended March 31, 2020, we do not expect that accounting standards that have been issued or proposed by the Financial Accounting Standards Board (FASB |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of stock-based compensation expense | Three Months Ended June 30, 2020 2019 Research and development expense $ 226,600 $ 390,600 General and administrative expense 448,000 672,400 Total stock-based compensation expense $ 674,600 $ 1,063,000 |
Fair value assumptions | Assumption: Weighted Average Range Market price per share at grant date $ 0.41 $ 0.40 to 0.54 Exercise price per share $ 0.41 $ 0.40 to 0.55 Risk-free interest rate 0.39 % 0.35% to 0.44 % Expected term in years 5.36 5.20 to 5.94 Volatility 84.10 % 82.93% to 85.85 % Dividend rate 0.0 % 0.0 % Shares 1,945,000 Fair Value per share $ 0.28 |
Schedule of potentially dilutive securities excluded from computation of earnings per share | At June 30, At March 31, 2020 2020 Series A Preferred stock issued and outstanding (1) 750,000 750,000 Series B Preferred stock issued and outstanding (2) 1,160,240 1,160,240 Series C Preferred stock issued and outstanding (3) 2,318,012 2,318,012 Outstanding options under the Company's Amended and Restated 2016 (formerly 2008) Stock Incentive Plan and 2019 Omnibus Equity Incentive Plan 11,948,088 10,003,088 Outstanding warrants to purchase common stock 26,589,834 26,555,281 Total 42,766,174 40,786,621 ____________ (1) Assumes exchange under the terms of the October 11, 2012 Note Exchange and Purchase Agreement, as amended (2) Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series B 10% Convertible Preferred Stock, effective May 5, 2015; excludes shares of unegistered common stock issuable in payment of dividends on Series B Preferred upon conversion (3) Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series C Convertible Preferred Stock, effective January 25, 2016 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Other Assets [Abstract] | |
Prepaid expenses and other current assets | June 30, March 31, 2020 2020 Clinical and nonclinical materials and contract services $ 115,200 $ 115,200 Fair value of securities issued for professional services 125,000 - Insurance 391,200 107,200 All other 1,600 2,700 $ 633,000 $ 225,100 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | June 30, March 31, 2020 2020 Laboratory equipment $ 892,500 $ 892,500 Tenant improvements 214,400 214,400 Computers and network equipment 54,600 54,600 Office furniture and equipment 84,600 84,600 1,246,100 1,246,100 Accumulated depreciation and amortization (1,061,900 ) (1,036,500 ) Property and equipment, net $ 184,200 $ 209,600 June 30, March 31, 2020 2020 Office equipment subject to financing lease $ 14,700 $ 14,700 Accumulated depreciation (10,100 ) (9,400 ) Net book value of office equipment subject to financing lease $ 4,600 $ 5,300 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued expenses | June 30, March 31, 2020 2020 Accrued expenses for clinical and nonclinical materials, development and contract services $ 397,100 $ 462,300 Accrued professional services 194,600 76,500 All other 16,100 22,700 $ 607,800 $ 561,500 |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Notes Payable [Abstract] | |
Notes payable | June 30, 2020 March 31, 2020 Principal Accrued Principal Accrued Balance Interest Total Balance Interest Total 7.30% and 6.30% Notes payable to insurance premium financing company (current) $ 328,800 $ - $ 328,800 $ 56,500 $ - $ 56,500 1% Note payable under Paycheck Protection Program 224,400 400 224,800 - - - less: current portion (99,700 ) (400 ) (100,100 ) - - - Non-current portion $ 124,700 $ - $ 124,700 $ - $ - $ - Total current notes payable $ 428,500 $ 400 $ 428,900 $ 56,500 $ - $ 56,500 |
Capital Stock (Tables)
Capital Stock (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Warrants outstanding | Warrants Warrants Exercise Outstanding at Exercisable at Price Expiration June 30, June 30, per Share Date 2020 2020 $ 0.50 3/25/2021 to 4/30/2024 8,151,312 8,026,312 $ 0.73 7/25/2025 3,870,077 - $ 0.805 12/31/2022 80,431 80,431 $ 1.50 12/13/2022 9,596,200 9,596,200 $ 1.82 3/7/2023 1,388,931 1,388,931 $ 3.51 12/31/2021 50,000 50,000 $ 5.30 5/16/2021 2,705,883 2,705,883 $ 7.00 9/2/2020 to 3/3/2023 747,000 747,000 26,589,834 22,594,757 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Presentation of operating lease | As of June 30, 2020 As of March 31, 2020 Assets Right of use asset – operating lease $ 3,492,100 $ 3,579,600 Liabilities Current operating lease obligation $ 325,700 $ 313,400 Non-current operating lease obligation 3,631,100 3,715,600 Total operating lease liability $ 3,956,800 $ 4,029,000 |
Operating lease costs | For the Three Months Ended For the Three Months Ended June 30, 2020 June 30, 2019 Operating lease cost $ 212,800 $ 208,800 |
Expected lease expense | Fiscal Years Ending March 31, 2021 (remaining nine months) $ 488,000 2022 668,400 2023 726,000 2024 766,000 2025 789,000 Thereafter 1,931,400 Total lease expense 5,368,800 Less imputed interest (1,412,000 ) Present value of operating lease liabilities $ 3,956,800 |
Other lease disclosure | As of June 30, 2020 Assumed remaining lease term in years 7.08 Assumed discount rate 8.54 % |
Supplemental disclosure of cash flow information | For the Three Months Ended For the Three Months Ended June 30, 2020 June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities $ 197,500 $ 188,200 |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Accumulated deficit during its development stage | $ (205,034,200) | $ (201,907,400) | ||
Cash and cash equivalents | $ 1,545,900 | $ 1,355,100 | $ 8,297,100 | $ 13,100,300 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Stock option expense | $ 674,600 | $ 1,063,000 |
Research and Development Expense | ||
Stock option expense | 226,600 | 390,600 |
General and Administrative Expense | ||
Stock option expense | $ 448,000 | $ 672,400 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - 2019 Plan | 3 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Market price per share at grant date | $ .41 |
Exercise price per share | $ .41 |
Risk-free interest rate | 0.39% |
Estimated term in years | 5 years 4 months 10 days |
Volatility | 84.10% |
Dividend rate | 0.00% |
Shares | shares | 1,954,000 |
Fair value per share | $ .28 |
Minimum | |
Market price per share at grant date | .40 |
Exercise price per share | $ .40 |
Risk-free interest rate | 0.35% |
Estimated term in years | 5 years 2 months 12 days |
Volatility | 82.93% |
Maximum | |
Market price per share at grant date | $ .54 |
Exercise price per share | $ .55 |
Risk-free interest rate | 0.44% |
Estimated term in years | 5 years 11 months 8 days |
Volatility | 85.85% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details 2) - shares | 3 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
Antidilutive securities | 42,766,174 | 40,786,621 | |
Series A Preferred Stock | |||
Antidilutive securities | [1] | 750,000 | 750,000 |
Series B Preferred Stock | |||
Antidilutive securities | [2] | 1,160,240 | 1,160,240 |
Series C Preferred Stock | |||
Antidilutive securities | [3] | 2,318,012 | 2,318,012 |
Amended and Restated 2016 (formerly 2008) Stock Incentive Plan and 2019 Omnibus Equity Incentive Plan | |||
Antidilutive securities | 11,948,088 | 10,003,088 | |
Warrant | |||
Antidilutive securities | 26,589,834 | 26,555,281 | |
[1] | Assumes exchange under the terms of the October 11, 2012 Note Exchange and Purchase Agreement, as amended. | ||
[2] | Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series B 10% Convertible Preferred Stock, effective May 5, 2015; excludes shares of unegistered common stock issuable in payment of dividends on Series B Preferred upon conversion. | ||
[3] | Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series C Convertible Preferred Stock, effective January 25, 2016. |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Other Assets [Abstract] | ||
Clinical and nonclinical materials and contract services | $ 115,200 | $ 115,200 |
Fair value of securities issued for professional services | 125,000 | 0 |
Insurance | 391,200 | 107,200 |
All other | 1,600 | 2,700 |
Total | $ 633,000 | $ 225,100 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Property and equipment, gross | $ 1,246,100 | $ 1,246,100 |
Accumulated depreciation and amortization | (1,061,900) | (1,036,500) |
Property and equipment, net | 184,200 | 209,600 |
Laboratory Equipment | ||
Property and equipment, gross | 892,500 | 892,500 |
Tenant Improvements | ||
Property and equipment, gross | 214,400 | 214,400 |
Computers and Network Equipment | ||
Property and equipment, gross | 54,600 | 54,600 |
Office Furniture And Equipment | ||
Property and equipment, gross | $ 84,600 | $ 84,600 |
Property and Equipment (Detai_2
Property and Equipment (Details 1) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Property And Equipment | ||
Office equipment subject to financing lease | $ 14,700 | $ 14,700 |
Accumulated depreciation | (10,100) | (9,400) |
Net book value of office equipment subject to financing lease | $ 4,600 | $ 5,300 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued expenses for clinical and nonclinical materials, development and contract services | $ 397,100 | $ 462,300 |
Accrued professional services | 194,600 | 76,500 |
All other | 16,100 | 22,700 |
Total | $ 607,800 | $ 561,500 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Principal balance | $ 428,500 | $ 56,500 |
Accrued interest | 400 | 0 |
Total | 428,900 | 56,500 |
Current portion | (100,100) | 0 |
Non-current portion | 124,700 | 0 |
Notes Payable 1 | ||
Principal balance | 328,800 | 56,500 |
Accrued interest | 0 | 0 |
Total | 328,800 | 56,500 |
Notes Payable 2 | ||
Principal balance | 224,400 | 0 |
Accrued interest | 400 | 0 |
Total | $ 224,800 | $ 0 |
Capital Stock (Details)
Capital Stock (Details) | 3 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Warrants outstanding | 26,589,834 |
Warrants exercisable | 22,594,757 |
Warrant 1 | |
Average per share | $ / shares | $ .50 |
Expiration date range | 3/25/2021 to 4/30/2024 |
Warrants outstanding | 8,151,312 |
Warrants exercisable | 8,026,312 |
Warrant 2 | |
Average per share | $ / shares | $ .73 |
Expiration date range | 7/25/2025 |
Warrants outstanding | 3,870,077 |
Warrants exercisable | 0 |
Warrant 3 | |
Average per share | $ / shares | $ .805 |
Expiration date range | 12/31/2022 |
Warrants outstanding | 80,431 |
Warrants exercisable | 80,431 |
Warrant 4 | |
Average per share | $ / shares | $ 1.50 |
Expiration date range | 12/13/2022 |
Warrants outstanding | 9,596,200 |
Warrants exercisable | 9,596,200 |
Warrant 5 | |
Average per share | $ / shares | $ 1.82 |
Expiration date range | 3/7/2023 |
Warrants outstanding | 1,388,931 |
Warrants exercisable | 1,388,931 |
Warrant 6 | |
Average per share | $ / shares | $ 3.51 |
Expiration date range | 12/31/2021 |
Warrants outstanding | 50,000 |
Warrants exercisable | 50,000 |
Warrant 7 | |
Average per share | $ / shares | $ 5.30 |
Expiration date range | 5/16/2021 |
Warrants outstanding | 2,705,883 |
Warrants exercisable | 2,705,883 |
Warrant 8 | |
Average per share | $ / shares | $ 7 |
Expiration date range | 9/2/2020 to 3/3/2023 |
Warrants outstanding | 747,000 |
Warrants exercisable | 747,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | |
Cato Research Ltd. | |||
Related party expense | $ 124,800 | $ 1,405,100 | |
Accounts payable and accrued expenses | 422,800 | $ 578,800 | |
Pherin Pharmaceuticals, Inc. | |||
Accounts payable and accrued expenses | 0 | 0 | |
Consulting Agreement | |||
Research and development expense | 15,000 | $ 27,700 | |
Accounts payable and accrued expenses | $ 15,000 | $ 15,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Assets | ||
Right of use asset - operating lease | $ 3,492,100 | $ 3,579,600 |
Liabilities | ||
Current operating lease obligation | 325,700 | 313,400 |
Non-current operating lease obligation | 3,631,100 | 3,715,600 |
Total operating lease liability | $ 3,956,800 | $ 4,029,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Details 1) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease cost | $ 212,800 | $ 208,800 |
Commitments and Contingencies_4
Commitments and Contingencies (Details 2) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
2021 (remaining nine months) | $ 488,000 | |
2022 | 668,400 | |
2023 | 726,000 | |
2024 | 766,000 | |
2025 | 789,000 | |
Thereafter | 1,931,400 | |
Total lease expense | 5,368,800 | |
Less imputed interest | (1,412,000) | |
Present value of operating lease liabilities | $ 3,956,800 | $ 4,029,000 |
Commitments and Contingencies_5
Commitments and Contingencies (Details 3) | Jun. 30, 2020 |
Commitments and Contingencies Disclosure [Abstract] | |
Assumed remaining lease term in years | 7 years 29 days |
Assumed discount rate | 8.54% |
Commitments and Contingencies_6
Commitments and Contingencies (Details 4) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 197,500 | $ 188,200 |
Commitments and Contingencies_7
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rent expense | $ 3,500 | $ 3,400 |