Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Sep. 30, 2019 | Nov. 13, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Vitality Biopharma, Inc. | |
Entity Central Index Key | 0001438943 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Reporting Status Current | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 50,840,147 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2019 | Mar. 31, 2019 |
Current Assets | ||
Cash | $ 3,958,464 | $ 5,982,741 |
Accounts receivable, net | 19,360 | |
Prepaid expense and other current assets | 19,089 | 50,547 |
Total current assets | 3,977,553 | 6,052,648 |
Deposits | 32,662 | 22,662 |
Operating lease right-of-use asset | 186,322 | |
Total Assets | 4,196,537 | 6,075,310 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 1,157,914 | 716,671 |
Accounts payable - related party | 5,200 | |
Advance | 296,653 | 296,653 |
Operating lease liability, current portion | 118,832 | |
Derivative liability | 1,796 | 35,710 |
Total current liabilities | 1,575,195 | 1,054,234 |
Operating lease liability, net of current portion | 68,723 | |
Total liabilities | 1,643,918 | 1,054,234 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Common stock, par value $0.001 per share; 1,000,000,000 shares authorized; 50,840,147 and 52,290,147 shares issued and outstanding, respectively | 50,640 | 52,090 |
Additional paid-in-capital | 47,502,211 | 47,150,489 |
Accumulated deficit | (45,000,232) | (42,181,503) |
Total stockholders' equity | 2,552,619 | 5,021,076 |
Total liabilities and stockholders' equity | $ 4,196,537 | $ 6,075,310 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Mar. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 50,840,147 | 52,290,147 |
Common stock, shares outstanding | 50,840,147 | 52,290,147 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating expenses: | ||||
General and administrative | $ 726,881 | $ 643,274 | $ 1,587,100 | $ 1,123,975 |
Research and development | 294,521 | 492,041 | 623,009 | 1,065,671 |
Rent - related party | 7,800 | 15,600 | ||
Total operating expenses | 1,021,402 | 1,143,115 | 2,210,109 | 2,205,246 |
Loss from operations | (1,021,402) | (1,143,115) | (2,210,109) | (2,205,246) |
Other income (expense) | ||||
Change in fair value of derivative liability | 9,366 | (44,956) | 33,914 | (62,349) |
Other income | 617 | 23,524 | ||
Total other income (expenses), net | 9,983 | (44,956) | 57,438 | (62,349) |
Loss from continuing operations | (1,011,419) | (1,188,071) | (2,152,671) | (2,267,595) |
Loss from discontinued operations | (216,031) | (32,726) | (666,058) | (88,421) |
Net loss | $ (1,227,450) | $ (1,220,797) | $ (2,818,729) | $ (2,356,016) |
Net loss per common share | ||||
Loss from continuing operations | $ (0.02) | $ (0.05) | $ (0.04) | $ (0.10) |
Loss from discontinued operations | $ 0 | $ 0 | $ (0.01) | $ 0 |
Weighted average number of common shares outstanding Basic and diluted | 52,195,581 | 24,328,136 | 52,242,606 | 24,301,786 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Changes In Stockholders' Equity (Deficiency) (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in-Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Mar. 31, 2018 | $ 24,075 | $ 22,343,135 | $ (22,044,936) | $ 322,274 |
Balance, shares at Mar. 31, 2018 | 24,275,147 | |||
Issuance of common stock and warrants | $ 333 | 499,667 | 500,000 | |
Issuance of common stock and warrants, shares | 333,334 | |||
Fair value of vested restricted common stock | 213,761 | 213,761 | ||
Fair value of vested stock options | 783,670 | 783,670 | ||
Fair value of common stock issued for services | $ 75 | 113,175 | 113,250 | |
Fair value of common stock issued for services, shares | 75,000 | |||
Net Loss | (2,356,016) | (2,356,016) | ||
Balance at Sep. 30, 2018 | $ 24,483 | 23,953,408 | (24,400,952) | (423,061) |
Balance, shares at Sep. 30, 2018 | 24,683,481 | |||
Balance at Jun. 30, 2018 | $ 24,112 | 22,820,524 | (23,180,155) | (335,519) |
Balance, shares at Jun. 30, 2018 | 24,312,647 | |||
Issuance of common stock and warrants | $ 333 | 499,667 | 500,000 | |
Issuance of common stock and warrants, shares | 333,334 | |||
Fair value of vested restricted common stock | 106,880 | 106,880 | ||
Fair value of vested stock options | 462,250 | 462,250 | ||
Fair value of common stock issued for services | $ 38 | 64,087 | 64,125 | |
Fair value of common stock issued for services, shares | 37,500 | |||
Net Loss | (1,220,797) | (1,220,797) | ||
Balance at Sep. 30, 2018 | $ 24,483 | 23,953,408 | (24,400,952) | (423,061) |
Balance, shares at Sep. 30, 2018 | 24,683,481 | |||
Balance at Mar. 31, 2019 | $ 52,090 | 47,150,489 | (42,181,503) | 5,021,076 |
Balance, shares at Mar. 31, 2019 | 52,290,147 | |||
Fair value of vested stock options | 350,272 | 350,272 | ||
Cancellation of shares | $ (1,450) | 1,450 | ||
Cancellation of shares, shares | (1,450,000) | |||
Net Loss | (2,818,729) | (2,818,729) | ||
Balance at Sep. 30, 2019 | $ 50,640 | 47,502,211 | (45,000,232) | 2,552,619 |
Balance, shares at Sep. 30, 2019 | 50,840,147 | |||
Balance at Jun. 30, 2019 | $ 52,090 | 47,390,394 | (43,772,782) | 3,669,702 |
Balance, shares at Jun. 30, 2019 | 52,290,147 | |||
Fair value of vested stock options | 110,367 | 110,367 | ||
Cancellation of shares | $ (1,450) | 1,450 | ||
Cancellation of shares, shares | (1,450,000) | |||
Net Loss | (1,227,450) | (1,227,450) | ||
Balance at Sep. 30, 2019 | $ 50,640 | $ 47,502,211 | $ (45,000,232) | $ 2,552,619 |
Balance, shares at Sep. 30, 2019 | 50,840,147 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities | ||
Net loss | $ (2,818,729) | $ (2,356,016) |
Net loss from discontinued operations | (666,058) | (88,421) |
Net loss from continuing operations | (2,152,671) | (2,267,595) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Fair value of vested stock options | 350,272 | 783,670 |
Fair value of vested restricted common stock | 213,761 | |
Fair value of common stock issued for services | 113,250 | |
Operating lease expense | 62,103 | |
Change in fair value of derivative liability | (33,914) | 62,349 |
Changes in operating assets and liabilities: | ||
Prepaid expense and other current assets | 18,704 | (5,000) |
Prepaid expense, related party | 2,600 | |
Deposits | (10,000) | |
Accounts payable and accrued liabilities | 473,413 | 114,198 |
Accounts payable - related party | (5,200) | 7,800 |
Operating lease liability | (60,870) | |
Net cash used in operating activities- continuing operations | (1,358,163) | (974,967) |
Net cash used in operating activities- discontinued operations | (666,114) | (94,643) |
Net cash used in operating activities | (2,024,277) | (1,069,610) |
Financing activities | ||
Advance from unrelated party | 250,000 | |
Proceeds from sale of common stock and warrants | 500,000 | |
Net cash provided by financing activities | 750,000 | |
Net decrease in cash | (2,024,277) | (319,610) |
Cash and cash equivalents - beginning of period | 5,982,741 | 656,290 |
Cash and cash equivalents - end of period | 3,958,464 | 336,680 |
Cash paid during the period for: | ||
Interest | ||
Income taxes | ||
Supplemental non-cash investing and financing activities: | ||
Initial recognition of operating lease right-of-use assets and operating lease obligations upon adoption of new lease accounting standard | 248,425 | |
Cancellation of shares | $ 1,450 |
Business Operations and Summary
Business Operations and Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Operations and Summary of Significant Accounting Policies | 1. BUSINESS OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Vitality Biopharma, Inc. (the “Company”, “we”, “us” or “our”), was incorporated in the State of Nevada on June 29, 2007. The Company’s fiscal year end is March 31. In 2015, the Company developed a new class of cannabinoids known as cannabosides, which were discovered through application of the Company’s proprietary enzymatic bioprocessing technologies. In 2016, the Company received approvals from the U.S. Drug Enforcement Administration (the “DEA”) and the State of California to initiate studies and manufacturing scale-up at its research and development facilities in order to develop cannabosides. Currently, we do not have any commercial products and have not yet generated any revenues from our cannabinoid prodrug pharmaceuticals. Liquidity The Company is engaged in the research and development of cannabinoid prodrug pharmaceuticals and since we do not have any commercial products currently available in the marketplace, the Company has generated only minimal revenues from sales of products or services. As reflected in the accompanying financial statements, during the six months ended September 30, 2019, the Company incurred a net loss of $2,818,729 and used $2,024,277 of cash in our operating activities. As of September 30, 2019, we had $3,958,464 of cash on hand, stockholders’ equity of $2,552,619 and had working capital of $2,402,358. Our total expenditures for the year following September 30, 2019, are expected to be approximately $3,500,000, which is comprised of approximately $3,000,000 of research and development and general operating expenses, and approximately $500,000 of strategic partnership investments. Given that we have discretion over the amount of cash that we will invest in research and development and strategic partnership investments, and based on the funds we had available on September 30, 2019, we believe that we have sufficient capital to fund our anticipated operating expenses and investment activity for at least one year from the date that the financial statements are issued. While we believe that our existing cash balances will be sufficient to fund our currently planned level of operations and investment activity, we may require additional financing to fund our planned future operations in the event that we encounter unanticipated difficulties, or if our estimates of the amount of cash necessary to operate our business prove to be wrong, and we use our available financial resources faster than we currently expect. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Basis of Presentation of Unaudited Condensed Financial Information The unaudited condensed financial statements of the Company for the three and six months ended September 30, 2019 and 2018 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, applied on a consistent basis, and pursuant to the requirements for reporting on Form 10-Q and the requirements of Regulation S-K and Regulation S-X promulgated under the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete audited financial statements. However, the information included in these financial statements reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair presentation of the Company’s financial position and the results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal year or any future annual or interim period. The balance sheet information as of March 31, 2019 was derived from the Company’s audited financial statements as of and for the year ended March 31, 2019 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on July 15, 2019. These financial statements should be read in conjunction with that report. 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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. Significant estimates and assumptions by management include, among others, reserves for accounts receivable, the fair value of equity instruments issued for services, and assumptions used in the valuation of derivative liabilities and the valuation allowance for deferred tax assets, and the accrual of potential liabilities. Leases Prior to April 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases Leases Financial Assets and Liabilities Measured at Fair Value The Company uses various inputs in determining the fair value of its investments and measures these assets on a recurring basis. Financial assets recorded at fair value in the balance sheets are categorized by the level of objectivity associated with the inputs used to measure their fair value. Authoritative guidance provided by FASB defines the following levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these financial assets: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. Level 3 Unobservable inputs based on the Company’s assumptions. The carrying value of cash and accounts payable and accrued liabilities approximates their fair value because of the short maturity of these instruments. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. As of September 30, 2019 and March 31, 2019, the Company’s balance sheet includes Level 3 liabilities comprised of the fair value of derivative liabilities of $1,796 and $35,710, respectively (see Note 5). These derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. The following table sets forth a summary of the changes in the estimated fair value of our derivative liabilities during the six-month periods ended September 30, 2019 and 2018: Six months ended September 30, 2019 Six months ended September 30, 2018 Fair value at beginning of period $ 35,710 $ 153,042 Net change in the fair value of derivative liabilities (33,914 ) 62,349 Fair value at end of period $ 1,796 $ 215,391 Derivative Financial Instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company uses a probability weighted average Black-Scholes-Merton model to value the derivative instruments at inception and on subsequent valuation dates through the September 30, 2019 reporting date. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Share-Based Payments The Company issues stock options and warrants, shares of common stock, and equity interests as share-based compensation to employees and non-employees. The Company accounts for its share-based compensation to employees in accordance with FASB ASC 718, Compensation – Stock Compensation In prior periods up to March 31, 2019, the Company accounted for share-based compensation issued to non-employees and consultants in accordance with the provisions of FASB ASC 505-50, Equity - Based Payments to Non-Employees In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting Basic and Diluted Loss Per Share Basic loss per share is computed by dividing the net loss applicable to common stockholders by the weighted average number of outstanding common shares during the period. Diluted loss per share is computed by dividing net loss applicable to common stockholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued. Diluted loss per share excludes all potential common shares if their effect is anti-dilutive. The following potentially dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive: Six months ended September 30, 2019 September 30, 2018 Options 6,546,710 3,456,710 Warrants 1,135,003 1,301,670 Total 7,681,713 4,758,380 Research and Development Research and development costs consist primarily of fees paid to consultants and outside service providers, patent fees and costs, and other expenses relating to the acquisition, design, development and testing of the Company’s treatments and product candidates. Research and development costs are expensed as incurred. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326) Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 2. DISCONTINUED OPERATIONS In October 2018, the Company acquired Summit Healthtech, Inc. (renamed Vitality Healthtech, Inc.), a specialty healthcare clinic. In connection with the acquisition of Summit Healthtech, Inc., the Company issued 1,450,000 shares of its common stock to Dr. Arif Karim, the former owner of the specialty healthcare clinic. Dr. Karim had entered into an employment agreement with Summit Healthtech, Inc. prior to the acquisition. In addition to the clinical operations of Summit Healthcare, Inc., the Company was engaged in the business of selling research diagnostic testing kits (such business, collectively with the clinical operations of Summit Healthcare, Inc., referred to in this Quarterly Report as, the “Company’s clinical and test kit operations”) In May 2019 the Company decided to close the Company’s clinical and test kit operations. The Company’s clinical and test kit operations meet the discontinued operations criteria and are reported as such in all periods presented on the accompanying condensed consolidated financial statements. During the six months ended September 30, 2019, costs to close the Company’s clinical and test kit operations, primarily made up of severance and related benefits, totaled approximately $165,000, and are included in loss from discontinued operations. On October 30, 2019, we reached a settlement with Dr. Arif Karim, whereby the Company and Dr. Karim released all claims against each other, including any claims under the Executive Employment Agreement between Vitality Healthtech, Inc. and Dr. Karim dated October 12, 2018, and the Share Purchase Agreement by and among The Control Center, Inc., Dr. Karim and Vitality Healthtech, Inc. dated October 12, 2018. In exchange for the releases, the Company paid Dr. Karim $120,000, which is included in the costs to close the Company’s clinical and test kit operations, and the 1,450,000 shares of the Company’s common stock issued to Dr. Karim were cancelled. The following table presents the summarized components of loss from discontinued operations for the Company’s clinical and test kit operations: Three Months Ended September 30, 2019 2018 Revenue $ - $ 38,239 Cost of sales 1,813 14,709 Research and development - 13,524 General and administrative 214,218 42,732 Loss from discontinued operations $ (216,031 ) $ (32,726 ) Six Months Ended September 30, 2019 2018 Revenue $ 44,698 $ 62,833 Cost of sales 143,232 40,457 Research and development 4,361 27,315 General and administrative 563,163 83,482 Loss from discontinued operations $ (666,058 ) $ (88,421 ) |
Operating Lease
Operating Lease | 6 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Operating Lease | 3. OPERATING LEASE The Company has an operating lease agreement for its office space with a remaining lease term of 20 months. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company accounts for the lease and non-lease components of its office lease as a single lease component. Lease expense is recognized on a straight-line basis over the lease term. Under ASC 842, an operating lease right-of-use (“ROU”) asset and liability is recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in lease arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives. The adoption of ASC 842 did not have a significant impact on our liquidity. The components of lease expense and supplemental cash flow information related to leases for the period are as follows: Three Months Ended September 30, 2019 Lease Cost Operating lease cost (included in general and administrative expenses in the Company’s unaudited condensed statement of operations) $ 38,588 Other Information Cash paid for amounts included in the measurement of lease liabilities for the three months ended September 30, 2019 $ 33,783 Weighted average remaining lease term – operating leases (in years) 1.45 Average discount rate – operating leases 6.0 % The supplemental balance sheet information related to leases for the period is as follows: At September 30, 2019 Operating leases Long-term right-of-use asset $ 186,322 Short-term operating lease liability $ 118,832 Long-term operating lease liability 68,723 Total operating lease liabilities $ 187,555 Maturities of the Company’s lease liabilities are as follows: Year Ending March 31 Operating Lease 2020 (remaining 6 months) $ 67,960 2021 128,205 Total lease payments 196,165 Less: Imputed interest/present value discount (8,610 ) Present value of lease liabilities $ 187,555 Lease expenses were $46,388 and $7,800 during the three months ended September 30, 2019 and September 30, 2018, respectively. |
Advance
Advance | 6 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Advance | 4. ADVANCE In July 2018, we received a payment from a third party in the amount of $296,653. The purpose of this payment was not specified at the time it was received, and the third party making such payment has failed to respond to our requests for additional information. We have recorded this payment as an advance and, at September 30, 2019, it is included in current liabilities on the accompanying financial statements. |
Derivative Liability
Derivative Liability | 6 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Liability | 5. DERIVATIVE LIABILITY In May 2015, the Company issued certain warrants which included a fundamental transaction provision that could give rise to an obligation to pay cash to the warrant holder. In addition, the warrants contained an anti-dilution provision that allows for the automatic reset of the exercise price of the warrants upon future sale of the Company’s common stock, warrants, options, convertible debt or any other equity-linked securities at an issuance, exercise or conversion price below the current exercise price of the warrants. As such the Company determined that the warrant fundamental transaction provision and exercise price created a derivative instrument. In accordance with the FASB authoritative guidance, the fair value of the warrants was recognized as a derivative instrument and is re-measured at the end of each reporting period with the change in value reported in the statement of operations. At March 31, 2019, the balance of the derivative liabilities was $35,710. During the six months ended September 30, 2019, the Company recorded a decrease in derivative liability of $33,914. At September 30, 2019, the balance of the derivative liabilities was $1,796. At September 30, 2019 and March 31, 2019, the derivative liabilities were valued using a probability weighted Black-Scholes-Merton pricing model with the following assumptions: September 30, 2019 March 31, 2019 Conversion feature: Risk-free interest rate 1.75 % 2.63 % Expected volatility 206 % 177 % Expected life (in years) .62 year 1.13 years Expected dividend yield - - Fair Value: Warrant liability $ 1,796 $ 35,710 The risk-free interest rate was based on rates established by the Federal Reserve Bank. The Company uses the historical volatility of its common stock to estimate the future volatility for its common stock. The expected life of the warrants was determined by the expiration date of the warrants. The expected dividend yield was based on the fact that the Company has not paid dividends to its common stockholders in the past and does not expect to pay dividends to its common stockholders in the future. |
Stock Options
Stock Options | 6 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Options | 6. STOCK OPTIONS During the six months ended September 30, 2019, the Company granted to directors and employees options to purchase an aggregate of 3,250,000 shares of the Company’s common stock with exercise prices of $0.30 to $0.35 per share, that expire ten years from the date of grant, and all have vesting periods of 24 months. The fair value of each option award was estimated on the date of grant using the Black-Scholes-Merton option pricing model based on the following assumptions: (i) volatility rate of 176.50%, (ii) discount rate of 1.73%, (iii) zero expected dividend yield, and (iv) expected life of 6 years, which is the average of the term of the options and their vesting periods. The total fair value of the option grants to employees at their grant dates was approximately $1,026,000. A summary of the Company’s stock option activity during the six months ended September 30, 2019 is as follows: Shares Weighted Balance outstanding at March 31, 2019 3,456,710 $ 1.46 Granted 3,250,000 0.34 Exercised - Expired - - Cancelled (160,000 ) 1.92 Balance outstanding at September 30, 2019 6,546,710 $ 0.89 Balance exercisable at September 30, 2019 3,190,878 $ 1.24 A summary of the Company’s stock options outstanding and exercisable as of September 30, 2019 is as follows: Number of Options Weighted Average Exercise Price Weighted Average Grant- date Stock Price Options Outstanding, September 30, 2019 750,000 $ 0.30 $ 0.30 2,500,000 $ 0.35 $ 0.35 1,664,542 $ 0.50 $ 0.50 128,000 $ 0.96 $ 0.96 130,000 $ 1.00 $ 10.00 517,500 $ 1.50-1.95 $ 1.50-1.950 687,500 $ 2.00 – 2.79 $ 2.00 – 2.79 123,334 $ 3.10 – 3.80 $ 3.10 – 3.80 45,834 $ 4.00 – 4.70 $ 4.00 – 4.70 6,546,710 Options Exercisable, September 30, 2019 1,664,542 $ 0.50 $ 0.50 128,000 $ 0.96 $ 0.96 130,000 $ 1.00 $ 10.00 436,668 $ 1.50-1.95 $ 1.50-1.95 662,500 $ 2.00 – 2.79 $ 2.00 – 2.79 123,334 $ 3.10 – 3.80 $ 3.10 – 3.80 45,834 $ 4.00 – 4.70 $ 4.00 – 4.70 3,190,878 During the six months ended September 30, 2019, we expensed total stock-based compensation related to stock options of $325,272, and the remaining unamortized cost of the outstanding stock-based awards at September 30, 2019 was approximately $926,000. The remaining unamortized cost will be amortized on a straight-line basis over a weighted average remaining vesting period of one year. At September 30, 2019, the 6,546,710 outstanding stock options had no intrinsic value. |
Warrants
Warrants | 6 Months Ended |
Sep. 30, 2019 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrants | 7. WARRANTS At September 30, 2019, warrants to purchase common shares were outstanding as follows: Shares Weighted Balance at March 31, 2019 1,135,003 $ 2.19 Granted - - Exercised - - Expired - - Balance outstanding and exercisable at September 30, 2019 1,135,003 $ 2.19 At September 30, 2019, the 1,135,003 outstanding warrants had no intrinsic value. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. COMMITMENTS AND CONTINGENCIES SEC Subpoena On August 19, 2016, we filed a resale registration statement on Form S-1 (“Form S-1”) with the SEC to register 2,650,000 shares of our common stock and 7,950,000 shares of our common stock issuable upon exercise of certain warrants. On or about December 10, 2016, we were advised that the SEC staff was conducting (i) a private investigation (a “Private Investigation”) pursuant to Section 20(a) of the Securities Act and Section 21(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and (ii) an examination under Section 8(e) of the Securities Act (a “Section 8(e) Examination”) with respect to this Form S-1. The Company has been cooperating fully with the staff of the Enforcement Division of the SEC in connection with these matters. On or about November 14, 2018, we were advised by the staff of the Enforcement Division that, based on the information the staff had as of such date, it was terminating the Section 8(e) Examination but that the Private Investigation would remain open. The Company continues to cooperate in such investigation. |
Business Operations and Summa_2
Business Operations and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity | Liquidity The Company is engaged in the research and development of cannabinoid prodrug pharmaceuticals and since we do not have any commercial products currently available in the marketplace, the Company has generated only minimal revenues from sales of products or services. As reflected in the accompanying financial statements, during the six months ended September 30, 2019, the Company incurred a net loss of $2,818,729 and used $2,024,277 of cash in our operating activities. As of September 30, 2019, we had $3,958,464 of cash on hand, stockholders’ equity of $2,552,619 and had working capital of $2,402,358. Our total expenditures for the year following September 30, 2019, are expected to be approximately $3,500,000, which is comprised of approximately $3,000,000 of research and development and general operating expenses, and approximately $500,000 of strategic partnership investments. Given that we have discretion over the amount of cash that we will invest in research and development and strategic partnership investments, and based on the funds we had available on September 30, 2019, we believe that we have sufficient capital to fund our anticipated operating expenses and investment activity for at least one year from the date that the financial statements are issued. While we believe that our existing cash balances will be sufficient to fund our currently planned level of operations and investment activity, we may require additional financing to fund our planned future operations in the event that we encounter unanticipated difficulties, or if our estimates of the amount of cash necessary to operate our business prove to be wrong, and we use our available financial resources faster than we currently expect. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. |
Basis of Presentation of Unaudited Condensed Financial Information | Basis of Presentation of Unaudited Condensed Financial Information The unaudited condensed financial statements of the Company for the three and six months ended September 30, 2019 and 2018 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, applied on a consistent basis, and pursuant to the requirements for reporting on Form 10-Q and the requirements of Regulation S-K and Regulation S-X promulgated under the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete audited financial statements. However, the information included in these financial statements reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair presentation of the Company’s financial position and the results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal year or any future annual or interim period. The balance sheet information as of March 31, 2019 was derived from the Company’s audited financial statements as of and for the year ended March 31, 2019 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on July 15, 2019. These financial statements should be read in conjunction with that report. |
Use of Estimates | 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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. Significant estimates and assumptions by management include, among others, reserves for accounts receivable, the fair value of equity instruments issued for services, and assumptions used in the valuation of derivative liabilities and the valuation allowance for deferred tax assets, and the accrual of potential liabilities. |
Leases | Leases Prior to April 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases Leases |
Financial Assets and Liabilities Measured at Fair Value | Financial Assets and Liabilities Measured at Fair Value The Company uses various inputs in determining the fair value of its investments and measures these assets on a recurring basis. Financial assets recorded at fair value in the balance sheets are categorized by the level of objectivity associated with the inputs used to measure their fair value. Authoritative guidance provided by FASB defines the following levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these financial assets: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. Level 3 Unobservable inputs based on the Company’s assumptions. The carrying value of cash and accounts payable and accrued liabilities approximates their fair value because of the short maturity of these instruments. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. As of September 30, 2019 and March 31, 2019, the Company’s balance sheet includes Level 3 liabilities comprised of the fair value of derivative liabilities of $1,796 and $35,710, respectively (see Note 5). These derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. The following table sets forth a summary of the changes in the estimated fair value of our derivative liabilities during the six-month periods ended September 30, 2019 and 2018: Six months ended September 30, 2019 Six months ended September 30, 2018 Fair value at beginning of period $ 35,710 $ 153,042 Net change in the fair value of derivative liabilities (33,914 ) 62,349 Fair value at end of period $ 1,796 $ 215,391 |
Derivative Financial Instruments | Derivative Financial Instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company uses a probability weighted average Black-Scholes-Merton model to value the derivative instruments at inception and on subsequent valuation dates through the September 30, 2019 reporting date. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. |
Share-Based Payments | Share-Based Payments The Company issues stock options and warrants, shares of common stock, and equity interests as share-based compensation to employees and non-employees. The Company accounts for its share-based compensation to employees in accordance with FASB ASC 718, Compensation – Stock Compensation In prior periods up to March 31, 2019, the Company accounted for share-based compensation issued to non-employees and consultants in accordance with the provisions of FASB ASC 505-50, Equity - Based Payments to Non-Employees In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting |
Basic and Diluted Loss Per Share | Basic and Diluted Loss Per Share Basic loss per share is computed by dividing the net loss applicable to common stockholders by the weighted average number of outstanding common shares during the period. Diluted loss per share is computed by dividing net loss applicable to common stockholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued. Diluted loss per share excludes all potential common shares if their effect is anti-dilutive. The following potentially dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive: Six months ended September 30, 2019 September 30, 2018 Options 6,546,710 3,456,710 Warrants 1,135,003 1,301,670 Total 7,681,713 4,758,380 |
Research and Development | Research and Development Research and development costs consist primarily of fees paid to consultants and outside service providers, patent fees and costs, and other expenses relating to the acquisition, design, development and testing of the Company’s treatments and product candidates. Research and development costs are expensed as incurred. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326) Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements. |
Business Operations and Summa_3
Business Operations and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Fair Value of Derivative Liabilities | The following table sets forth a summary of the changes in the estimated fair value of our derivative liabilities during the six-month periods ended September 30, 2019 and 2018: Six months ended September 30, 2019 Six months ended September 30, 2018 Fair value at beginning of period $ 35,710 $ 153,042 Net change in the fair value of derivative liabilities (33,914 ) 62,349 Fair value at end of period $ 1,796 $ 215,391 |
Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potentially dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive: Six months ended September 30, 2019 September 30, 2018 Options 6,546,710 3,456,710 Warrants 1,135,003 1,301,670 Total 7,681,713 4,758,380 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations for Summit Healthcare | The following table presents the summarized components of loss from discontinued operations for the Company’s clinical and test kit operations: Three Months Ended September 30, 2019 2018 Revenue $ - $ 38,239 Cost of sales 1,813 14,709 Research and development - 13,524 General and administrative 214,218 42,732 Loss from discontinued operations $ (216,031 ) $ (32,726 ) Six Months Ended September 30, 2019 2018 Revenue $ 44,698 $ 62,833 Cost of sales 143,232 40,457 Research and development 4,361 27,315 General and administrative 563,163 83,482 Loss from discontinued operations $ (666,058 ) $ (88,421 ) |
Operating Lease (Tables)
Operating Lease (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Lease Expenses | The components of lease expense and supplemental cash flow information related to leases for the period are as follows: Three Months Ended September 30, 2019 Lease Cost Operating lease cost (included in general and administrative expenses in the Company’s unaudited condensed statement of operations) $ 38,588 Other Information Cash paid for amounts included in the measurement of lease liabilities for the three months ended September 30, 2019 $ 33,783 Weighted average remaining lease term – operating leases (in years) 1.45 Average discount rate – operating leases 6.0 % |
Schedule of Supplement Related to Lease | The supplemental balance sheet information related to leases for the period is as follows: At September 30, 2019 Operating leases Long-term right-of-use asset $ 186,322 Short-term operating lease liability $ 118,832 Long-term operating lease liability 68,723 Total operating lease liabilities $ 187,555 |
Schedule of Maturities of Lease Liabilities | Maturities of the Company’s lease liabilities are as follows: Year Ending March 31 Operating Lease 2020 (remaining 6 months) $ 67,960 2021 128,205 Total lease payments 196,165 Less: Imputed interest/present value discount (8,610 ) Present value of lease liabilities $ 187,555 |
Derivative Liability (Tables)
Derivative Liability (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Valuation Assumptions for Derivative Liabilities | At September 30, 2019 and March 31, 2019, the derivative liabilities were valued using a probability weighted Black-Scholes-Merton pricing model with the following assumptions: September 30, 2019 March 31, 2019 Conversion feature: Risk-free interest rate 1.75 % 2.63 % Expected volatility 206 % 177 % Expected life (in years) .62 year 1.13 years Expected dividend yield - - Fair Value: Warrant liability $ 1,796 $ 35,710 |
Stock Options (Tables)
Stock Options (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | A summary of the Company’s stock option activity during the six months ended September 30, 2019 is as follows: Shares Weighted Balance outstanding at March 31, 2019 3,456,710 $ 1.46 Granted 3,250,000 0.34 Exercised - Expired - - Cancelled (160,000 ) 1.92 Balance outstanding at September 30, 2019 6,546,710 $ 0.89 Balance exercisable at September 30, 2019 3,190,878 $ 1.24 |
Schedule of Stock Options Outstanding and Exercisable | A summary of the Company’s stock options outstanding and exercisable as of September 30, 2019 is as follows: Number of Options Weighted Average Exercise Price Weighted Average Grant- date Stock Price Options Outstanding, September 30, 2019 750,000 $ 0.30 $ 0.30 2,500,000 $ 0.35 $ 0.35 1,664,542 $ 0.50 $ 0.50 128,000 $ 0.96 $ 0.96 130,000 $ 1.00 $ 10.00 517,500 $ 1.50-1.95 $ 1.50-1.950 687,500 $ 2.00 – 2.79 $ 2.00 – 2.79 123,334 $ 3.10 – 3.80 $ 3.10 – 3.80 45,834 $ 4.00 – 4.70 $ 4.00 – 4.70 6,546,710 Options Exercisable, September 30, 2019 1,664,542 $ 0.50 $ 0.50 128,000 $ 0.96 $ 0.96 130,000 $ 1.00 $ 10.00 436,668 $ 1.50-1.95 $ 1.50-1.95 662,500 $ 2.00 – 2.79 $ 2.00 – 2.79 123,334 $ 3.10 – 3.80 $ 3.10 – 3.80 45,834 $ 4.00 – 4.70 $ 4.00 – 4.70 3,190,878 |
Warrants (Tables)
Warrants (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Warrants and Rights Note Disclosure [Abstract] | |
Summary of Warrants Activity | At September 30, 2019, warrants to purchase common shares were outstanding as follows: Shares Weighted Balance at March 31, 2019 1,135,003 $ 2.19 Granted - - Exercised - - Expired - - Balance outstanding and exercisable at September 30, 2019 1,135,003 $ 2.19 |
Business Operations and Summa_4
Business Operations and Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Apr. 02, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 |
Net loss | $ (1,227,450) | $ (1,220,797) | $ (2,818,729) | $ (2,356,016) | |||||
Net cash used in operating activities | (2,024,277) | (1,069,610) | |||||||
Cash on hand | 3,958,464 | 3,958,464 | $ 5,982,741 | ||||||
Stockholders' equity | 2,552,619 | $ (423,061) | 2,552,619 | $ (423,061) | $ 3,669,702 | 5,021,076 | $ (335,519) | $ 322,274 | |
Working capital | 2,402,358 | 2,402,358 | 4,998,414 | ||||||
Total expected expenditure for operating expenses and investment activity | 3,500,000 | ||||||||
Operating lease, right-of-use asset | 186,322 | 186,322 | |||||||
Lease liabilities for operating leases | 187,555 | 187,555 | |||||||
Fair value of derivative liabilities | $ 1,796 | 1,796 | $ 35,710 | ||||||
Accounting Standards Update 2016-02 [Member] | |||||||||
Operating lease, right-of-use asset | $ 248,425 | ||||||||
Lease liabilities for operating leases | 248,425 | ||||||||
Cumulative-effect adjustment to accumulated deficit | $ 0 | ||||||||
Research and Development and General Operating Expenses [Member] | |||||||||
Total expected expenditure for operating expenses and investment activity | 3,000,000 | ||||||||
Strategic Partnership Investments [Member] | |||||||||
Total expected expenditure for operating expenses and investment activity | $ 500,000 |
Business Operations and Summa_5
Business Operations and Summary of Significant Accounting Policies - Schedule of Fair Value of Derivative Liabilities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Fair value at beginning of period | $ 35,710 | $ 1,753,042 | ||
Net change in the fair value of derivative liabilities | $ (9,366) | $ 44,956 | (33,914) | 62,349 |
Fair value at end of period | $ 1,796 | $ 215,391 | $ 1,796 | $ 215,391 |
Business Operations and Summa_6
Business Operations and Summary of Significant Accounting Policies - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 6 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive securities excluded from computation of earnings per share | 7,681,713 | 4,758,380 |
Options [Member] | ||
Antidilutive securities excluded from computation of earnings per share | 6,546,710 | 3,456,710 |
Warrants [Member] | ||
Antidilutive securities excluded from computation of earnings per share | 1,135,003 | 1,301,670 |
Discontinued Operations (Detail
Discontinued Operations (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Severance and related benefits | $ 294,521 | $ 492,041 | $ 623,009 | $ 1,065,671 | |
Capital expenditure, discontinued operations | 1,450,000 | ||||
Dr. Karim [Member] | |||||
Cost of disposal paid | $ 120,000 | ||||
Clinical and Test Kit Operations [Member] | |||||
Severance and related benefits | $ 165,000 | ||||
Summit Health tech Inc [Member] | Dr Arif Karim [Member] | |||||
Common stock, shares issued | 1,450,000 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Discontinued Operations for Summit Healthcare (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Revenue | $ 38,239 | $ 44,698 | $ 62,833 | |
Cost of sales | 1,813 | 14,709 | 143,232 | 40,457 |
Research and development | 13,524 | 4,361 | 27,315 | |
General and administrative | 214,218 | 42,732 | 563,163 | 83,482 |
Loss from discontinued operations | $ (216,031) | $ (32,726) | $ (666,058) | $ (88,421) |
Operating Lease (Details Narra
Operating Lease (Details Narrative) - USD ($) | 6 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating lease remaining lease term | 20 months | |
Lease expenses | $ 62,103 | |
Operating Lease Agreement [Member] | ||
Lease expenses | $ 46,388 | $ 7,800 |
Operating Lease - Schedule of L
Operating Lease - Schedule of Lease Expenses (Details) | 6 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost (included in general and administrative expenses in the Company's unaudited condensed statement of operations) | $ 38,588 |
Cash paid for amounts included in the measurement of lease liabilities | $ 33,783 |
Weighted average remaining lease term - operating leases (in years) | 1 year 5 months 12 days |
Average discount rate - operating leases | 6.00% |
Operating Lease - Schedule of S
Operating Lease - Schedule of Supplement Related to Lease (Details) - USD ($) | Sep. 30, 2019 | Mar. 31, 2019 |
Leases [Abstract] | ||
Operating leases: Long-term right-of-use asset | $ 186,322 | |
Operating leases: Short-term operating lease liability | 118,832 | |
Operating leases: Long-term operating lease liability | 68,723 | |
Operating leases: Total operating lease liabilities | $ 187,555 |
Operating Lease - Schedule of M
Operating Lease - Schedule of Maturities of Lease Liabilities (Details) | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2020 (remaining 6 months) | $ 67,960 |
2021 | 128,205 |
Total lease payments | 196,165 |
Less: Imputed interest/present value discount | (8,610) |
Present value of lease liabilities | $ 187,555 |
Advance (Details Narrative)
Advance (Details Narrative) - USD ($) | Sep. 30, 2019 | Mar. 31, 2019 | Jul. 31, 2018 |
Receivables [Abstract] | |||
Advance | $ 296,653 | $ 296,653 | $ 296,653 |
Derivative Liability (Details N
Derivative Liability (Details Narrative) - USD ($) | 6 Months Ended | |||
Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Derivative liabilities | $ 1,796 | $ 35,710 | $ 215,391 | $ 1,753,042 |
Decrease in derivative liability | $ 33,914 |
Derivative Liability - Schedule
Derivative Liability - Schedule of Valuation Assumptions for Derivative Liabilities (Details) | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair Value: Warrant liability | $ 1,796 | $ 1,753,042 | $ 35,710 | $ 215,391 |
Risk-free Interest Rate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Warrant liability, measurement input | 1.75 | 2.63 | ||
Expected Volatility [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Warrant liability, measurement input | 206 | 177 | ||
Expected Life [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Warrant Liability, term | 7 months 13 days | 1 year 1 month 16 days | ||
Expected Dividend Yield [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Warrant liability, measurement input | 0 | 0 |
Stock Options (Details Narrativ
Stock Options (Details Narrative) - USD ($) | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options to purchase an aggregate | 3,250,000 | ||
Common stock with exercise prices | $ 0.34 | ||
Stock option expiration term | 10 years | ||
Stock option granted, vesting periods | 24 months | ||
Volatility rate | 176.50% | ||
Discount rate | 1.73% | ||
Expected life | 6 years | ||
Fair value of the option grants | $ 1,026,000 | ||
Stock-based compensation expense | 350,272 | $ 783,670 | |
Unamortized cost of outstanding stock-based awards | $ 926,000 | ||
Weighted average remaining vesting period | 1 year | ||
Outstanding stock options intrinsic value | 6,546,710 | 3,456,710 | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock with exercise prices | $ 0.30 | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock with exercise prices | $ 0.35 |
Stock Options - Summary of Stoc
Stock Options - Summary of Stock Option Activity (Details) | 6 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Shares Outstanding, Beginning Balance Outstanding | shares | 3,456,710 |
Shares, Granted | shares | 3,250,000 |
Shares, Exercised | shares | |
Shares, Expired | shares | |
Shares, Cancelled | shares | (160,000) |
Shares Outstanding, Ending Balance | shares | 6,546,710 |
Shares, Balance Exercisable | shares | 3,190,878 |
Weighted Average Exercise Price, Outstanding Beginning Balance | $ / shares | $ 1.46 |
Weighted Average Exercise Price, Granted | $ / shares | 0.34 |
Weighted Average Exercise Price, Exercised | $ / shares | |
Weighted Average Exercise Price, Expired | $ / shares | |
Weighted Average Exercise Price, Cancelled | $ / shares | 1.92 |
Weighted Average Exercise Price, Outstanding Ending Balance | $ / shares | 0.89 |
Weighted Average Exercise Price, Balance Exercisable | $ / shares | $ 1.24 |
Stock Options - Schedule of Sto
Stock Options - Schedule of Stock Options Outstanding and Exercisable (Details) - $ / shares | 6 Months Ended | |
Sep. 30, 2019 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options Outstanding | 6,546,710 | 3,456,710 |
Weighted Average Grant-date Stock Price, Options Outstanding | $ 0.34 | |
Number of Options Exercisable | 3,190,878 | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Grant-date Stock Price, Options Outstanding | $ 0.30 | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Grant-date Stock Price, Options Outstanding | $ 0.35 | |
Stock Options One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options Outstanding | 750,000 | |
Weighted Average Exercise Price, Options Outstanding | $ 0.30 | |
Weighted Average Grant-date Stock Price, Options Outstanding | $ 0.30 | |
Number of Options Exercisable | 1,664,542 | |
Weighted Average Exercise Price, Options Exercisable | $ 0.50 | |
Weighted Average Grant-date Stock Price, Options Exercisable | $ 0.50 | |
Stock Options Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options Outstanding | 2,500,000 | |
Weighted Average Exercise Price, Options Outstanding | $ 0.35 | |
Weighted Average Grant-date Stock Price, Options Outstanding | $ 0.35 | |
Number of Options Exercisable | 128,000 | |
Weighted Average Exercise Price, Options Exercisable | $ 0.96 | |
Weighted Average Grant-date Stock Price, Options Exercisable | $ 0.96 | |
Stock Options Three [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options Outstanding | 1,664,542 | |
Weighted Average Exercise Price, Options Outstanding | $ 0.50 | |
Weighted Average Grant-date Stock Price, Options Outstanding | $ 0.50 | |
Number of Options Exercisable | 130,000 | |
Weighted Average Exercise Price, Options Exercisable | $ 1 | |
Weighted Average Grant-date Stock Price, Options Exercisable | $ 10 | |
Stock Options Four [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options Outstanding | 128,000 | |
Weighted Average Exercise Price, Options Outstanding | $ 0.96 | |
Weighted Average Grant-date Stock Price, Options Outstanding | $ 0.96 | |
Number of Options Exercisable | 436,668 | |
Stock Options Four [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Exercise Price, Options Exercisable | $ 1.50 | |
Weighted Average Grant-date Stock Price, Options Exercisable | 1.50 | |
Stock Options Four [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Exercise Price, Options Exercisable | 1.95 | |
Weighted Average Grant-date Stock Price, Options Exercisable | $ 1.95 | |
Stock Options Five [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options Outstanding | 130,000 | |
Weighted Average Exercise Price, Options Outstanding | $ 1 | |
Weighted Average Grant-date Stock Price, Options Outstanding | 10 | |
Weighted Average Exercise Price, Options Exercisable | 662,500 | |
Stock Options Five [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Exercise Price, Options Exercisable | 2 | |
Weighted Average Grant-date Stock Price, Options Exercisable | 2 | |
Stock Options Five [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Exercise Price, Options Exercisable | 2.79 | |
Weighted Average Grant-date Stock Price, Options Exercisable | $ 2.79 | |
Stock Options Six [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options Outstanding | 517,500 | |
Number of Options Exercisable | 123,334 | |
Stock Options Six [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Exercise Price, Options Outstanding | $ 1.50 | |
Weighted Average Grant-date Stock Price, Options Outstanding | 1.50 | |
Weighted Average Exercise Price, Options Exercisable | 3.10 | |
Weighted Average Grant-date Stock Price, Options Exercisable | 3.10 | |
Stock Options Six [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Exercise Price, Options Outstanding | 1.95 | |
Weighted Average Grant-date Stock Price, Options Outstanding | 1.950 | |
Weighted Average Exercise Price, Options Exercisable | 3.80 | |
Weighted Average Grant-date Stock Price, Options Exercisable | $ 3.80 | |
Stock Options Seven [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options Outstanding | 687,500 | |
Number of Options Exercisable | 45,834 | |
Stock Options Seven [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Exercise Price, Options Outstanding | $ 2 | |
Weighted Average Grant-date Stock Price, Options Outstanding | 2 | |
Weighted Average Exercise Price, Options Exercisable | 4 | |
Weighted Average Grant-date Stock Price, Options Exercisable | 4 | |
Stock Options Seven [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Exercise Price, Options Outstanding | 2.79 | |
Weighted Average Grant-date Stock Price, Options Outstanding | 2.79 | |
Weighted Average Exercise Price, Options Exercisable | 4.70 | |
Weighted Average Grant-date Stock Price, Options Exercisable | $ 4.70 | |
Stock Options Eight [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options Outstanding | 123,334 | |
Stock Options Eight [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Exercise Price, Options Outstanding | $ 3.10 | |
Weighted Average Grant-date Stock Price, Options Outstanding | 3.10 | |
Stock Options Eight [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Exercise Price, Options Outstanding | 3.80 | |
Weighted Average Grant-date Stock Price, Options Outstanding | $ 3.80 | |
Stock Options Nine [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options Outstanding | 45,834 | |
Stock Options Nine [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Exercise Price, Options Outstanding | $ 4 | |
Weighted Average Grant-date Stock Price, Options Outstanding | 4 | |
Stock Options Nine [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Exercise Price, Options Outstanding | 4.70 | |
Weighted Average Grant-date Stock Price, Options Outstanding | $ 4.70 |
Warrants (Details Narrative)
Warrants (Details Narrative) | Sep. 30, 2019shares |
Warrants [Member] | |
Outstanding warrants | 1,135,003 |
Warrants - Summary of Warrants
Warrants - Summary of Warrants Activity (Details) - Warrants [Member] | 6 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Number of Shares, Warrants Outstanding, Beginning Balance | shares | 1,135,003 |
Number of Shares, Warrants Grants | shares | |
Number of Shares, Warrants Exercised | shares | |
Number of Shares, Warrants Expired | shares | |
Number of Shares, Warrants Outstanding and Exercisable Ending Balance | shares | 1,135,003 |
Weighted Average Exercise Price, Warrants Outstanding, Beginning Balance | $ / shares | $ 2.19 |
Weighted Average Exercise Price, Warrants Outstanding, Granted | $ / shares | |
Weighted Average Exercise Price, Warrants Outstanding, Exercised | $ / shares | |
Weighted Average Exercise Price, Warrants Outstanding, Expired | $ / shares | |
Weighted Average Exercise Price, Warrants Outstanding, Outstanding and Exercisable, Ending Balance | $ / shares | $ 2.19 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | Aug. 19, 2016shares |
Common Stock One [Member] | |
Common stock issuable upon exercise of certain warrants | 2,650,000 |
Common Stock Two [Member] | |
Common stock issuable upon exercise of certain warrants | 7,950,000 |