Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 12, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Entity File Number | 001-39169 | |
Entity Registrant Name | Kiromic BioPharma, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-4762913 | |
Entity Address, Address Line One | 7707 Fannin Street | |
Entity Address, Address Line Two | Suite 140 | |
Entity Address, City or Town | Houston | |
Entity Address State Or Province | TX | |
Entity Address, Postal Zip Code | 77054 | |
City Area Code | 832 | |
Local Phone Number | 968-4888 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | KRBP | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 15,839,112 | |
Entity Central Index Key | 0001792581 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 6,510,600 | $ 25,353,900 |
Accounts receivable | 16,200 | |
Prepaid expenses and other current assets | 1,522,600 | 1,699,400 |
Total current assets | 8,033,200 | 27,069,500 |
Property and equipment, net | 9,157,700 | 3,629,000 |
Operating lease right-of-use asset | 2,298,300 | |
Other assets | 31,100 | 31,100 |
Total Assets | 19,520,300 | 30,729,600 |
Current Liabilities: | ||
Accounts payable | 4,163,700 | 2,214,300 |
Accrued expenses and other current liabilities | 1,154,600 | 741,000 |
Note payable | 114,900 | 454,500 |
Operating lease liability - short term | 535,600 | |
Total current liabilities | 5,968,800 | 3,409,800 |
Operating lease liability - long term | 1,770,300 | |
Total Liabilities | 7,739,100 | 3,409,800 |
Commitments and contingencies | ||
Stockholders' Equity: | ||
Common stock, $0.001 par value: 300,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 15,839,112 and 15,488,516 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | 9,300 | 9,300 |
Preferred Stock | ||
Additional paid-in capital | 94,791,300 | 94,527,000 |
Accumulated deficit | (83,019,400) | (67,216,500) |
Total Stockholders' Equity | 11,781,200 | 27,319,800 |
Total Liabilities and Stockholders' Equity | $ 19,520,300 | $ 30,729,600 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Condensed Consolidated Balance Sheets | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized | 300,000,000 | 300,000,000 |
Common stock, issued | 15,839,112 | 15,488,516 |
Common stock, outstanding | 15,839,112 | 15,488,516 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating expenses: | ||||
Research and development | $ 3,880,700 | $ 2,658,100 | $ 6,806,500 | $ 4,543,700 |
General and administrative | 4,551,700 | 2,314,100 | 8,990,800 | 4,385,100 |
Total operating expenses | 8,432,400 | 4,972,200 | 15,797,300 | 8,928,800 |
Loss from operations | (8,432,400) | (4,972,200) | (15,797,300) | (8,928,800) |
Other income (expense) | ||||
Gain on loan extinguishment | 105,800 | |||
Interest expense | (2,700) | (2,100) | (5,500) | (5,800) |
Total other income (expense) | (2,700) | (2,100) | (5,500) | 100,000 |
Net loss | $ (8,435,100) | $ (4,974,300) | $ (15,802,800) | $ (8,828,800) |
Net loss per share, basic | $ (0.54) | $ (0.68) | $ (1.02) | $ (1.21) |
Net loss per share, diluted | $ (0.54) | $ (0.68) | $ (1.02) | $ (1.21) |
Weighted average common shares outstanding, basic | 15,732,063 | 7,345,147 | 15,637,777 | 7,345,147 |
Weighted average common shares outstanding, diluted | 15,732,063 | 7,345,147 | 15,637,777 | 7,345,147 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance at beginning of period at Dec. 31, 2020 | $ 1,200 | $ 52,988,700 | $ (41,627,800) | $ 11,362,100 |
Balance at beginning of period (in shares) at Dec. 31, 2020 | 7,332,999 | |||
Common stock discount amortization | 24,700 | 24,700 | ||
Warrants underlying common stock issuance | (24,700) | (24,700) | ||
Stock compensation expense | 945,200 | 945,200 | ||
Net loss | (3,854,500) | (3,854,500) | ||
Balance at end of period at Mar. 31, 2021 | $ 1,200 | 53,933,900 | (45,482,300) | 8,452,800 |
Balance at end of period (in shares) at Mar. 31, 2021 | 7,332,999 | |||
Balance at beginning of period at Dec. 31, 2020 | $ 1,200 | 52,988,700 | (41,627,800) | 11,362,100 |
Balance at beginning of period (in shares) at Dec. 31, 2020 | 7,332,999 | |||
Net loss | (8,828,800) | |||
Balance at end of period at Jun. 30, 2021 | $ 1,300 | 55,327,800 | (50,456,600) | 4,872,500 |
Balance at end of period (in shares) at Jun. 30, 2021 | 7,387,500 | |||
Balance at beginning of period at Mar. 31, 2021 | $ 1,200 | 53,933,900 | (45,482,300) | 8,452,800 |
Balance at beginning of period (in shares) at Mar. 31, 2021 | 7,332,999 | |||
Common stock discount amortization | 24,900 | 24,900 | ||
Warrants underlying common stock issuance | (24,900) | (24,900) | ||
Exercised stock options | $ 100 | 125,300 | 125,400 | |
Exercised stock options (in shares) | 18,891 | |||
Released restricted stock units (in shares) | 35,610 | |||
Stock compensation expense | 1,268,600 | 1,268,600 | ||
Net loss | (4,974,300) | (4,974,300) | ||
Balance at end of period at Jun. 30, 2021 | $ 1,300 | 55,327,800 | (50,456,600) | 4,872,500 |
Balance at end of period (in shares) at Jun. 30, 2021 | 7,387,500 | |||
Balance at beginning of period at Dec. 31, 2021 | $ 9,300 | 94,527,000 | (67,216,500) | 27,319,800 |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 15,488,516 | |||
Common stock discount amortization | 85,100 | 85,100 | ||
Warrants underlying common stock issuance | (85,100) | (85,100) | ||
Released restricted stock units (in shares) | 97,071 | |||
Stock compensation expense | 80,100 | 80,100 | ||
Net loss | (7,367,800) | (7,367,800) | ||
Balance at end of period at Mar. 31, 2022 | $ 9,300 | 94,607,100 | (74,584,300) | 20,032,100 |
Balance at end of period (in shares) at Mar. 31, 2022 | 15,585,587 | |||
Balance at beginning of period at Dec. 31, 2021 | $ 9,300 | 94,527,000 | (67,216,500) | 27,319,800 |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 15,488,516 | |||
Net loss | (15,802,800) | |||
Balance at end of period at Jun. 30, 2022 | $ 9,300 | 94,791,300 | (83,019,400) | 11,781,200 |
Balance at end of period (in shares) at Jun. 30, 2022 | 15,839,112 | |||
Balance at beginning of period at Mar. 31, 2022 | $ 9,300 | 94,607,100 | (74,584,300) | 20,032,100 |
Balance at beginning of period (in shares) at Mar. 31, 2022 | 15,585,587 | |||
Common stock discount amortization | 85,900 | 85,900 | ||
Warrants underlying common stock issuance | (85,900) | (85,900) | ||
Released restricted stock units (in shares) | 253,525 | |||
Stock compensation expense | 184,200 | 184,200 | ||
Net loss | (8,435,100) | (8,435,100) | ||
Balance at end of period at Jun. 30, 2022 | $ 9,300 | $ 94,791,300 | $ (83,019,400) | $ 11,781,200 |
Balance at end of period (in shares) at Jun. 30, 2022 | 15,839,112 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (15,802,800) | $ (8,828,800) |
Adjustments to reconcile net loss to net cash used for operating activities: | ||
Depreciation | 581,900 | 202,400 |
Stock compensation expense | 264,300 | 2,213,800 |
Gain on loan extinguishment | (105,800) | |
Operating lease interest expense | 139,200 | |
Changes in operating assets and liabilities, net of effects from acquisitions: | ||
Accounts receivable | 16,200 | |
Prepaid expenses and other current assets | 176,800 | 151,500 |
Accounts payable | 794,500 | 41,800 |
Accrued expenses and other current liabilities | 413,600 | (19,000) |
Operating lease liability | (131,700) | |
Net cash used for operating activities | (13,548,000) | (6,344,100) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (4,955,700) | (590,600) |
Net cash used for investing activities | (4,955,700) | (590,600) |
Cash flows from financing activities: | ||
Repayments of note payable | (339,600) | (270,800) |
Exercise of stock options | 125,400 | |
Net cash used for financing activities | (339,600) | (145,400) |
Net change in cash and cash equivalents | (18,843,300) | (7,080,100) |
Cash and cash equivalents: | ||
Beginning of year | 25,353,900 | 10,150,500 |
End of period | 6,510,600 | 3,070,400 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest on note payable | 5,500 | 5,800 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Offering cost accruals | 438,300 | |
Accounts payable and accruals for property and equipment | 1,154,900 | $ 14,500 |
ASC 842 right-of-use asset/liability implementation | 2,232,700 | |
Right-of-use asset/liability acquired through lease liability | $ 204,800 |
ORGANIZATION
ORGANIZATION | 6 Months Ended |
Jun. 30, 2022 | |
ORGANIZATION | |
ORGANIZATION | KIROMIC BIOPHARMA, INC. Notes to Condensed Consolidated Financial Statements (Unaudited) 1. ORGANIZATION Nature of Business Kiromic BioPharma, Inc. and subsidiaries (the "Company") is a clinical stage fully integrated biotherapeutics company formed under the Texas Business Organizations Code in December 2012. The Company is an artificial intelligence-driven, end-to-end CAR-T and gene therapy company, developing the first multi-indication allogeneic CAR-T cell therapy, that exploits the natural potency of Gamma Delta T-cells (“GDTs”) to target solid cancers. The Company maintains offices in Houston, Texas. The Company has not generated any revenues to date. From a development standpoint, the Company utilizes innovative engineered and non-engineered GDT manufacturing technologies and is developing proprietary, virus-free gene editing tools, to develop novel therapies for solid tumors that we believe will be effective and cost-efficient. The Procel, Isocel, and Deltacel product platform candidates consist of allogeneic cell therapy candidates that are currently in the preclinical development stage. Our Procel product candidate consists of engineered GDTs targeting PD-L1. Our Isocel product candidate consists of engineered GDTs targeting Mesothelin Isoform 2 positive tumors (“Iso-Meso”). Our Deltacel product candidate consists of non-engineered GDTs that have been expanded, enriched, and activated ex-vivo through a proprietary process, and are used to treat solid tumors regardless of the specific tumor antigen expression. The Company currently has one clinical trial candidate with the Procel product candidate platform titled ALEXIS-PRO-1. The Company currently has one clinical trial candidate with the Isocel product candidate platform titled ALEXIS-ISO-1. The ALEXIS-PRO-1 clinical trial candidate is our allogeneic GDT therapy product candidate targeting PD-L1. The ALEXIS-ISO-1 clinical trial candidate is our allogeneic GDT therapy product candidate targeting an isoform of Mesothelin that is preferentially present on tumor cells, namely Iso-Meso. The Company filed two investigational new drug (“IND”) applications in May 2021 for ALEXIS-PRO-1 and ALEXIS-ISO-1. The Food and Drug Administration (“FDA”) placed these applications under a clinical hold in June 2021. On July 13, 2021, the Company received the FDA’s formal clinical hold letters, which asked the Company to address key components regarding the chemical, manufacturing, and control components of the IND applications. Those components included tracing of all reagents used in manufacturing, flow chart of manufacturing processes, and certificate of analysis. The Company is currently working on addressing the FDA’s comments. Going Concern— These condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred significant losses and negative cash flows from operations since inception and expects to incur additional losses until such time that it can generate significant revenue from the commercialization of its product candidates. The Company had negative cash flow from operations of $13,548,000 for the six months ended June 30, 2022, and an accumulated deficit of $83,019,400 as of June 30, 2022. To date, the Company has relied on equity and debt financing to fund its operations. The Company’s product candidates are still in the early stages of development, and substantial additional financing will be needed by the Company to fund its operations and ongoing research and development efforts prior to the commercialization, if any, of its product candidates. The Company does not have sufficient cash on hand or available liquidity to meet its obligations through the twelve months following the date the condensed consolidated financial statements are issued. This condition raises substantial doubt about the Company’s ability to continue as a going concern. Given its projected operating requirements and its existing cash and cash equivalents, management’s plans include evaluating different strategies to obtain the required funding of future operations. These plans may include, but are not limited to, obtaining funding from current or new investors. However, there can be no assurance that the Company will be able to secure financing, or if available, that it will be sufficient to meet its needs or on favorable terms. Therefore, the plans cannot be deemed probable of being implemented. As a result, the Company has concluded that management’s plans do not alleviate substantial doubt about the Company’s ability to continue as a going concern. In the event the Company is unable to secure financing sufficient to allow it to meet its obligations as they become due, the Company may need to file a voluntary petition for relief under the United States Bankruptcy Code in order to implement a restructuring plan or liquidation. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information (Accounting Standards Codification ("ASC") 270, Interim Reporting) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information necessary for a full presentation of financial position, results of operations, and cash flows in conformity with GAAP. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of the Company for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2021. The results of operations for the period ended June 30, 2022 are not necessarily indicative of the operating results that may be expected for a full year. The condensed consolidated balance sheet as of December 31, 2021 contains financial information taken from the audited Company consolidated financial statements as of that date. All intercompany balances were eliminated upon consolidation. Use of Estimates Cash and Cash Equivalents Concentrations of Credit Risk and Other Uncertainties The Company is subject to certain risks and uncertainties from changes in any of the following areas that the Company believes could have a material adverse effect on future financial position or results of operations: the ability to obtain regulatory approval and market acceptance of, and reimbursement for, the Company’s product candidates; the performance of third-party clinical research organizations and manufacturers; protection of the intellectual property; litigation or claims against the Company based on intellectual property, patent, product, regulatory or other factors; the Company’s ability to attract and retain employees necessary to support commercial success; and changes in the industry or customer requirements including the emergence of competitive products with new capabilities. Deposit Deferred Public Offering Costs —In the six months ended June 30, 2021, the Company began incurring costs in connection with the filing of a Registration Statements on Form S-1 and Form S-1/A for a public offering, which were deferred in other current assets in accordance with ASC 505-10-25, Equity, in the condensed consolidated balance sheets. Public offering costs consist of legal, accounting, and other costs directly related to the Company's efforts to raise capital. As of June 30, 2022 and 2021, $0 and $478,900 of deferred costs related to the public offering were classified as prepaid expenses and other current assets on the condensed consolidated balance sheets. Property and Equipment 1 Estimated useful lives of property and equipment are as follows for the major classes of assets: Asset Description Estimated Lives Laboratory Equipment 3 - 8 Leasehold Improvements 1 - 7 Office Furniture, Fixtures, and Equipment 5 Software 3 - 5 Internal Use Software Development Costs Impairment of Long-Lived Assets — Comprehensive Loss Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which such temporary differences are expected to be recovered or settled. The Company records valuation allowances to reduce deferred income tax assets to the amount that is more likely than not to be realized. The Company records uncertain tax positions in accordance with ASC 740, Income Taxes Research and Development Expense The Company accrues and expenses costs of services provided by contract research organizations in connection with preclinical studies and contract manufacturing organizations engaged to manufacture clinical trial material, costs of licensing technology, and costs of services provided by research organizations and service providers. Upfront payments and milestone payments made for the licensing of technology are expensed as research and development in the period in which they are incurred if the technology is not expected to have any alternative future uses other than the specific research and development project for which it was intended. Nonrefundable advance payments for goods or services to be received in the future for use in research and development activities are recorded as prepaid expenses. The prepaid amounts are expensed as the related goods are delivered or the services are performed rather than when the payment is made. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. The Company accounts for financial instruments in accordance with ASC 820, Fair Value Measurements and Disclosures Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2—Quoted prices in non-active markets or in active markets for similar assets or liabilities, observable inputs other than quoted prices, and inputs that are not directly observable but are corroborated by observable market data. Level 3—Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. There were no changes in the fair value hierarchy levels during the three and six months ended June 30, 2022 or 2021. Nonvested Stock Options and Restricted Stock Units The vesting conditions for stock options and restricted stock units include annual vesting, monthly vesting, and fully vesting upon grant date. Annual vesting conditions are for four years. Monthly vesting conditions range from 10 10-year The vesting conditions for restricted stock units include cliff vesting conditions. Certain restricted stock units vest with a range of 6 to 12 months following the expiration of employee lock-up agreements. Certain restricted stock units vest based on the later of achievement of key milestones or the expiration of employee lock-up agreements. When nonvested restricted stock units are vested, they are released to the grantee within sixty days. Stock-Based Compensation Compensation—Stock Compensation The Company estimates the grant-date fair value of stock options using the Black-Scholes model and the assumptions used to value such stock options are determined as follows: Expected Term. Risk-Free Interest Rate. Volatility. Dividend Yield. Common Stock Valuations. During the three and six months ended June 30, 2022 and 2021, the closing price listed on the Nasdaq Capital Market for the Company’s common stock on the date of the grant was used as the common stock valuation. Segment Data Recently Issued Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases transition method, an entity initially applies the transition requirements in Topic 842 at that Topic’s effective date with the effects of initially applying Topic 842 recognized as a cumulative effect adjustment to the opening balance of retained earnings (or other components of equity or net assets, as appropriate) in the period of adoption. On October 16, 2019, the FASB changed the effective date of this standard applicable to the Company as an emerging growth company to January 1, 2022. Accordingly, the Company has adopted Topic 842 beginning in the first quarter of 2022. Modified retroactive transition approach will be required for operating leases existing at or entered into after the beginning of the earliest comparative period presented. The Company notes that adopting the new standard liability In June 2016, FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) |
NET LOSS PER SHARE OF COMMON ST
NET LOSS PER SHARE OF COMMON STOCK | 6 Months Ended |
Jun. 30, 2022 | |
NET LOSS PER COMMON SHARE | |
NET LOSS PER SHARE OF COMMON STOCK | 3. NET LOSS PER SHARE OF COMMON STOCK Basic and diluted net loss per share of common stock is determined by dividing net loss less deemed dividends by the weighted-average shares of common stock outstanding during the period. For all periods presented, the shares of common stock underlying the stock options, and restricted stock units have been excluded from the calculation because their effect would be anti-dilutive. Therefore, the weighted-average shares of common stock outstanding used to calculate both basic and diluted loss per share of common stock are the same. The following table illustrates the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Net loss $ (8,435,100) $ (4,974,300) $ (15,802,800) $ (8,828,800) Less: initial public offering Common Stock discount amortization (24,900) (24,900) (49,600) (49,600) Less: public offering Common Stock discount amortization (61,000) — (121,400) — Net loss attributable to common shareholders, basic and diluted $ (8,521,000) $ (4,999,200) $ (15,973,800) $ (8,878,400) Weighted average common shares outstanding, basic and diluted 15,732,063 7,345,147 15,637,777 7,345,147 Net loss per common share, basic and diluted $ (0.54) $ (0.68) $ (1.02) $ (1.21) For the three and six months ended June 30, 2022 and 2021, potentially dilutive securities excluded from the computations of diluted weighted-average shares of common stock outstanding were: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Stock options — — — 167 Restricted stock units — 34,668 — 66,668 Total — 34,668 — 66,835 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2022 | |
PROPERTY AND EQUIPMENT | |
PROPERTY AND EQUIPMENT | 4. PROPERTY AND EQUIPMENT Property and equipment consisted of the following as of June 30, 2022 and December 31, 2021: June 30, December 31, 2022 2021 Equipment $ 2,468,300 $ 1,593,100 Leasehold improvements 7,184,700 1,464,700 Office furniture, fixtures, and equipment 137,300 16,600 Software 359,500 359,500 Construction in progress 621,300 1,226,600 10,771,100 4,660,500 Less: Accumulated depreciation (1,613,400) (1,031,500) Total $ 9,157,700 $ 3,629,000 Depreciation expense was $399,100 and $106,800 for the three months ended June 30, 2022 and 2021, respectively, and $581,900 and $202,400 for the six months ended June 30, 2022 and 2021, respectively. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 6 Months Ended |
Jun. 30, 2022 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 5. Accrued expenses and other current liabilities consisted of the following as of June 30, 2022 and December 31, 2021: June 30, December 31, 2022 2021 Accrued consulting and outside services $ 504,100 $ 467,100 Accrued compensation 650,500 273,900 Total $ 1,154,600 $ 741,000 |
LOAN PAYABLE
LOAN PAYABLE | 6 Months Ended |
Jun. 30, 2022 | |
LOAN PAYABLE | |
LOAN PAYABLE | 6. On May 1, 2020, the Company received a loan in the principal amount of $115,600 (the “SBA Loan”) under the Paycheck Protection Program (“PPP”), which was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) administered by the U.S. Small Business Administration (the “SBA”). The intent and purpose of the PPP is to support companies, during the COVID-19 pandemic, by providing funds for certain specified business expenses, with a focus on payroll. As a qualifying business as defined by the SBA, the Company used the proceeds from this loan to primarily help maintain its payroll. The term of the SBA Loan promissory note (“the Note”) is two years , though it may be payable sooner in connection with an event of default under the Note. The SBA Loan carries a fixed interest rate of one percent per year, with the first payment due seven months from the date of initial cash receipt. Under the CARES Act and the PPP, certain amounts of loans made under the PPP may be forgiven if the recipients use the loan proceeds for eligible purposes, including payroll costs and certain rent or utility costs, and meet other requirements regarding, among other things, the maintenance of employment and compensation levels. The Note provides for customary events of default, including, among others, those relating to failure to make payment, bankruptcy, materially false or misleading representations to the SBA, and adverse changes in the Company’s financial condition or business operations that may materially affect its ability to pay the SBA Loan. During the year ended December 31, 2020, the Company applied for forgiveness of the SBA Loan in accordance with the terms of the CARES Act. On February 16, 2021, the SBA granted forgivenes s of the SBA Loan and all applicable interest. On the date of forgiveness, the principal and accrued interest totaled $105,800 . The forgiveness was classified as a gain on loan extinguishment in the condensed consolidated statement of operations. |
NOTE PAYABLE
NOTE PAYABLE | 6 Months Ended |
Jun. 30, 2022 | |
NOTE PAYABLE | |
NOTE PAYABLE | 7. In November 2021, the Company entered into a financing arrangement for its Director and Officer Insurance policy. The total amount financed was approximately $665,900 with an annual interest rate of 4.59% , to be paid over a period of ten months . As of June 30, 2022 and December 31, 2021, the remaining payable balance on the financed amount was $114,900 and $454,500 , respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 8. License Agreements Legal Proceedings The Company disputes Terrell’s claims and allegations in the Action and intends to vigorously defend against them. On May 21, 2021, the Company filed a motion to dismiss Terrell’s claims in the actions with prejudice, arguing that (i) Terrell’s options-related claims fail because his 2014 and January 2017 agreements were explicitly superseded by a later options agreement, under which Terrell relinquished his prior options; and (ii) Terrell is not entitled to indemnification because the Action relates to contracts between the Company and Terrell in his personal capacity, and not in connection with any activities or duties of Terrell in his official capacity as former director. In response to the motion, filed on June 21, 2021, Terrell withdrew his claim for indemnification, but opposed the portion seeking dismissal of his declaratory judgment claim. The motion was fully briefed with the filing of the Company’s reply brief on July 7, 2021. Oral argument was held before the Vice Chancellor on October 20, 2021. During oral argument, the Vice Chancellor invited the parties to submit supplemental letter briefs on the question of whether the Court of Chancery even had the authority to adjudicate the Action in light of the delegation of authority in Terrell’s most recent stock option agreement with the Company (the “SOA”) to the Company’s Compensation Committee to resolve all disputes regarding the interpretation of the SOA. The parties submitted simultaneous supplemental letters briefs on this issue on November 15, 2021. On January 20, 2022, the Vice Chancellor issued her decision on our motion to dismiss, ruling that the Action is stayed until the Compensation Committee itself resolves whether it has sole authority to resolve the parties’ contract interpretation dispute. Subsequently, the parties agreed upon a process for coordinating submissions and/or presentations to the Compensation Committee. The parties made their respective written submissions to the Compensation Committee on March 31, 2022. As of June 30, 2022, the parties were awaiting the Compensation Committee’s determination(s). As of June 30, 2022, the Action was stayed. See Item 1. Legal Proceedings in this report for further information. In a separate matter, on or about August 17 and 23, 2021, Tony Tontat, who at the time was the Chief Financial Officer and a member of the Board, submitted substantially identical reports (the “Complaints”) through the Company’s complaint hotline. These Complaints, alleged, among other topics, risks associated with the Company’s public disclosures in securities filings and in statements made to the public, investors, and potential investors regarding (i) the anticipated timing of the FDA authorization of the IND applications and (ii) the anticipated timing of human clinical trials. These Complaints were subsequently submitted to the Audit Committee of the Board. After receiving the Complaints, the Audit Committee recommended that the Board form, and the Board did in turn form, a Special Committee comprised of three independent directors (the “Special Committee”) to review the Complaints and other related issues (the “Internal Review”). The Special Committee retained an independent counsel to assist it in conducting the Internal Review. On February 2, 2022, following the conclusion of the Internal Review, the Company’s Special Committee reported the results of its Internal Review to the Board. The Board approved certain actions to address the fact that the Company had received communications from the FDA on June 16 and June 17, 2021 that the FDA was placing the IND applications that the Company submitted to the FDA on May 14 and May 17, 2021 for the ALEXIS-PRO-1 and ALEXIS-ISO-1 product candidates, respectively, on clinical hold (the “June 16 and 17 FDA Communications”). On July 13, 2021, the Company received the FDA’s formal clinical hold letters, which asked the Company to address key components regarding the chemical, manufacturing, and control components of the IND applications. On July 16, 2021, the Company issued a press release disclosing that it had received comments from the FDA on the two INDs, but did not use the term “clinical hold.” The Company then consummated a public offering of $40 million of its common stock pursuant to the Registration Statement on July 2, 2021. On August 13, 2021, the Company issued a press release announcing that these INDs were placed on clinical hold. The Company did not disclose the June 16 and 17, 2021 FDA Communications in (i) the Registration Statement on Form S-1 (Registration No. 333-257427) that was filed on June 25, 2021 and declared effective on June 29, 2021, nor the final prospectus contained therein dated June 29, 2021 (collectively, the “Registration Statement”); or (ii) the Form 10-Q for the fiscal quarter ended June 30, 2021 that was filed with the Securities and Exchange Commission on August 13, 2021. As a result of the disclosure omission of the June 16 and 17 FDA Communications, on March 7, 2022, entities related to Sabby Management LLC (the “Sabby Entities”) and Empery Asset Management, LP (the “Empery Entities”) filed a complaint in the United States District Court for the Southern District of New York asserting claims against the Company and certain current and former officers and directors of the Company for alleged violations of Sections 11, 12, and 15 of the Securities Act of 1933 in connection with the purchase of common stock through the Company’s public offering that closed on July 2, 2021. On July 1, 2022, the defendants filed motions to dismiss the complaint. In response, on July 22, 2022, the plaintiffs amended their complaint to, among other things, include ThinkEquity LLC as a defendant. The plaintiffs seek unspecified damages; rescission to the extent they still hold the Company’s securities, or if sold, rescissory damages; reasonable costs and expenses, including attorneys’ and experts’ fees; and other unspecified equitable and injunctive relief. The Court directed the defendants to respond to the amended complaint by August 12, 2022. At the parties’ request, the Court extended the defendants’ response date to September 12, 2022 to allow the parties time to discuss a potential resolution. Those discussions are ongoing. The Company has evaluated that it is reasonably possible that the Sabby Entities’ and Empery Entities’ claims may result in an estimated loss ranging between . This estimated range of loss excludes any legal and others costs that we will incur in connection with the defense of this action, and any legal and other costs incurred by the other defendants that we are required to reimburse. Subject to certain exceptions, the Company is obligated to indemnify the defendants in this action, including ThinkEquity, for their reasonable costs incurred in connection with this action and those costs could be substantial. On August 5, 2022, Ronald H. Karp filed a class action complaint in the United States District Court for the Southern District of New York covering the same subject matter as the Sabby Entities’ and Empery Entities’ claim discussed above asserting claims against the Company and certain current and former officers and directors for alleged violations of Sections 11, 12, and 15 of the Securities Act of 1933 in connection with the purchase of common stock through the Company’s public offering that closed on July 2, 2021 and Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 promulgated thereunder in connection with the certain statements and acts made by the defendants between June 25, 2021 and August 13, 2021. The Company has evaluated the Karp class claims and has determined that it is not possible to estimate a potential range of loss at this time. The Company regularly assesses all contingencies and believes, based on information presently known, the Company is not involved in any other matters that would have a material effect on the Company’s financial position, results of operations and cash flows. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
LEASES | 9 . The Company adopted FASB ASU No. 2016-02, Leases (Topic 842) on January 1, 2022, using the modified retrospective method, in which it did not restate prior periods. Upon adoption, the Company elected the package of practical expedients permitted under the transition guidance within Topic 842 which, among other things, allowed the Company to carry forward the historical lease classification. In our implementation of ASU No. 2016-02 the Company elected to discount lease obligations using our incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. The Company’s incremental borrowing rate represents the rate of interest that it would have to pay to borrow over a similar term an amount equal to the lease payments in a similar economic environment. The Company considers publicly available data for instruments with similar terms and characteristics when determining its incremental borrowing rates. In addition, we elected the practical expedient to account for the lease and non-lease components on a combined basis. The Company intends to use the full lease term under the existing lease agreement as the lease term, which is currently set to expire on April 30, 2026. As of June 30, 2022, the Company is not able to determine if any renewal options will be exercised. The Company leases its premises in Houston, Texas under an operating lease which was renewed on November 19, 2020. This renewed lease agreement will commence under an operating lease agreement that is noncancelable from commencement until May 1, 2024. On March 22, 2021, the Company’s board of directors approved a lease expansion within its premises in Houston, Texas. The amended lease agreement commenced on August 1, 2021 under an operating lease agreement that is noncancelable from commencement until May 1, 2024. The amended lease agreement adds approximately 15,385 square feet. The Company has the option to cancel the lease thereafter until the agreement expires on May 1, 2026. The termination date is effective after a 90-day notice of cancellation. Two further amendments were executed in 2021. The agreements commenced on November 1, 2021, and December 1, 2021 under an operating lease agreement that is noncancelable from commencement until May 1, 2024. The amended lease agreement adds approximately 3,684 square feet. The Company has the option to cancel the lease thereafter until the agreement expires on May 1, 2026. The termination date is effective after a 90-day notice of cancellation. An amendment to the lease agreement was executed in January 2022 and commenced May 1, 2022. The amendment will add approximately 9,352 square feet. The Company has the option to cancel the lease thereafter until the agreement expires on May 1, 2026. The termination date is effective after a 90-day monthly rent is $4,800 per month, in year three and four monthly rent is $4,896 per month, and in year five monthly rent is $5,000 per month. If the Company exercises the cancellation option, the Company must also pay the lessor a termination payment equal to three months of base rent. The following table indicates the balance sheet line items that include the right-of-use assets and lease liabilities for our operating lease: June 30, 2022 Operating lease Right-of-Use Asset Operating lease $ 2,298,300 Total right-of use asset $ 2,298,300 Lease Liabilities Operating lease - short term $ (535,600) Operating lease - long term (1,770,300) Total lease liabilities $ (2,305,900) For the three and six months ended June 30, 2022, the components of lease expense were as follows: Three Months Ended Six Months Ended June 30, June 30, Operating lease cost allocated to research and development expense $ 131,300 213,700 Operating lease cost allocated to general and administrative expense 38,200 106,300 Total lease expense $ 169,500 $ 320,000 Weighted-average remaining lease term 3.84 3.84 Weighted-average discount rate 7.12 % 7.12 % As of June 30, 2022 the maturities of the Company’s operating lease liabilities were as follows: Maturity of Lease Liabilities Operating lease 2022 $ 338,800 2023 684,300 2024 687,700 2025 694,300 2026 232,600 Total lease payments 2,637,700 Less: imputed interest (331,800) Present value of lease payments $ 2,305,900 The Company maintains a month to month lease in Arlington, VA, which is considered a short term lease. The Company elected to exclude this lease from the determination of the right-of-use asset and lease liability, as permitted under ASC 842. The Company will recognize the lease payments in profit or loss in the statement of operations on a straight-line basis over the term of the lease. The monthly rent expense as of June 30, 2022 is $2,500 per month. For the three and six months ended June 30, 2022, short-term lease were as follows: Three Months Ended Six Months Ended June 30, June 30, Short-term lease expense $ 7,500 $ 15,000 Under ASC 840, rent expense recognized under the leases was $74,900 and $143,900 for the three and six months ended June 30, 2021. |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 6 Months Ended |
Jun. 30, 2022 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | 10 . As of June 30, 2022 and December 31, 2021, the Company was authorized to issue 300,000,000 shares of common stock and 60,000,000 shares of Preferred Stock, of which 24,000,000 shares were designated as Series A-1 Preferred Stock and 16,500,000 shares were designated as Series B Preferred Stock. Common Stock On July 2, 2021, the Company received net proceeds of $37,118,100 from its public offering, after deducting underwriting discounts and commissions of $2,494,900 and other offering expenses of $457,000 incurred. The Company issued and sold 8,000,000 shares of common stock in the public offering at a price of $5.00 per share. Below is a table that outlines the initial value of issuances allocated to the IPO and public offering of common stock and the IPO and public offering common stock discount amortization, during the six months ended June 30: 2022 2021 Common Stock Balance at January 1, $ 48,264,300 $ 11,975,400 Common stock initial public offering discount amortization 24,700 24,700 Common stock public offering discount amortization 60,400 — Balance at March 31, $ 48,349,400 $ 12,000,100 Common stock initial public offering discount amortization 24,900 24,900 Common stock public offering discount amortization 61,000 — Balance at June 30, $ 48,435,300 $ 12,025,000 The Company has never paid dividends and has no plans to pay dividends on common stock. As of December 31, 2017, the Company adopted the 2017 Plan. As of June 25, 2021, the Company adopted the 2021 Plan. Under the 2021 Plan, the Board approved an additional 200,000 shares to be reserved and authorized under the 2021 Plan plus any unallocated shares from the 2017 Plan. On June 22, 2022, the Board approved an additional 1,000,000 shares to be reserved and authorized under 2021 Plan. There were 1,149,682 shares and 433,895 shares available for issuance as of June 30, 2022, and December 31, 2021, respectively. Representative’s Warrants In connection with the IPO on October 15, 2020, the Company granted the underwriters warrants (the “Underwriters’ Warrants”) to purchase an aggregate of 62,500 shares of common stock at an exercise price of $15.00 per share, which is 125% of the initial public offering price. The Underwriters’ Warrants have a five-year term and were not exercisable prior to April 13, 2021. All of the Underwriters’ Warrants were outstanding and exercisable at June 30, 2022. These warrants were equity classified. As of June 30, 2022 and December 31, 2021, the warrant fair values of $207,700 and $257,300 , respectively, is reflected as additional paid-in capital. On the issuance date, the Black-Scholes option-pricing model was used to estimate the fair value of the warrants with the following weighted-average assumptions on October 15, 2020: Risk-free interest rate 0.18 % Expected volatility 94.08 % Expected life (years) 2.74 Expected dividend yield 0 % In connection with the public offering on July 2, 2021, the Company granted the underwriters warrants (the “Additional Underwriters’ Warrants”) to purchase an aggregate of 400,000 shares of common stock at an exercise price of $6.25 per share, which is 125% of the initial public offering price. The Additional Underwriters’ Warrants have a five-year term and are not exercisable prior to January 2, 2022. All of the Additional Underwriters’ Warrants were outstanding at June 30, 2022. These warrants were equity classified. As of June 30, 2022 and December 31, 2021, the fair value of the warrants was $807,900 and $929,300 , respectively, and is reflected as additional paid-in capital. On the issuance date, the Black-Scholes option-pricing model was used to estimate the fair value of the warrants with the following weighted-average assumptions on July 2, 2021: Risk-free interest rate 0.40 % Expected volatility 98.27 % Expected life (years) 2.75 Expected dividend yield 0 % |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2022 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 11. 2017 Stock Incentive Plan— Stock Options The Black-Scholes option-pricing model was used to estimate the fair value of stock options with the following weighted-average assumptions for the six months ended June 30, 2022 and 2021: June 30, June 30, 2022 2021 Risk-free interest rate 1.09 % 1.09 % Expected volatility 83.34 % 83.34 % Expected life (years) 6.22 6.22 Expected dividend yield 0 % 0 % The following table summarizes the activity for all stock options outstanding at June 30 under the 2017 Plan: 2022 2021 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Options outstanding at beginning of year 380,909 $ 8.57 489,718 $ 10.03 Granted — — 147,038 8.47 Exercised — — (18,891) 6.64 Cancelled and forfeited (42,037) 9.19 (59,430) 17.86 Balance at June 30 338,872 $ 8.49 558,435 $ 8.90 Options exercisable at June 30: 334,964 $ 8.50 391,572 $ 8.84 Weighted average grant date fair value for options granted and expected to be vested during the period: $ — $ 8.47 The following table summarizes additional information about stock options outstanding and exercisable at June 30, 2022 and 2021 under the 2017 Plan: Options Outstanding Options Exercisable Weighted Average Weighted Weighted Remaining Average Aggregate Average Aggregate As of Options Contractual Exercise Intrinsic Options Exercise Intrinsic June 30, Outstanding Life Price Value Exercisable Price Value 2022 338,872 5.52 $ 8.49 — 334,964 $ 8.50 — 2021 558,435 7.43 $ 8.90 — 391,572 $ 8.84 — Total stock compensation expense recognized from stock-based compensation awards classified as stock options were recognized in the condensed consolidated statements of operations for the three and six months ended June 30, 2022 and 2021 as follows: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Research and development $ 3,000 $ 22,900 $ 52,000 $ 41,900 General and administrative 7,000 54,900 15,000 156,900 Total $ 10,000 $ 77,800 $ 67,000 $ 198,800 On August 20, 2020, the board of directors canceled and terminated 15,792 stock options, granted during the quarter ended June 30, 2020 to four non-employees. Thereafter, on August 20, 2020, the board of directors granted 21,112 stock options to the same individuals with a grant date fair value of $12.81 per share. There were 3,959 stock option grants that were considered vested on the grant date. The effects of the stock option modifications resulted in $14,000 and $34,900 of stock compensation expense allocable to general and administrative for the three and six months ended June 30, 2021, respectively. Included in that amount were $6,400 and $16,000 of incremental compensation costs resulting from the modifications for the three and six months ended June 30, 2021, respectively. As of June 30, 2022, total unrecognized stock compensation expense is $21,400 related to unvested stock options to be recognized over the remaining weighted-average vesting period of 0.57 years. 2017 Stock Incentive Plan—Restricted Stock Units The 2017 Plan permits the Company to grant equity awards for up to 1,708,615 shares of the Company’s common stock awards, including incentive stock options; non-statutory stock options; and conditional share awards to employees, directors, and consultants of the Company. All granted shares that are canceled, forfeited, or expired are returned to the 2017 Plan and are available for grant in conjunction with the issuance of new common stock awards. Restricted stock units (“RSUs”) vest over a specified amount of time or when certain performance metrics are achieved by the Company. In the six months ended June 30, 2022 and 2021, the fair value of the shares of common stock underlying restricted stock units was determined by the closing stock price listed on the Nasdaq Capital Market on the grant date. The following table summarizes the activity for all RSUs outstanding at June 30 under the 2017 Plan: 2022 2021 Weighted Average Weighted Average Grant Date Grant Date Fair Value Fair Value Shares Per Share Shares Per Share Nonvested RSUs at beginning of year, as restated 510,851 $ 12.48 946,245 $ 12.81 Granted — — 166,660 7.98 Vested (10,682) 8.64 (36,791) 6.44 Cancelled and forfeited (335,719) 12.79 (627) 9.00 Nonvested RSUs at June 30, 164,450 $ 12.09 1,075,487 $ 12.28 Subsequent to the issuance of the December 31, 2021 consolidated financial statements, the Company identified an error related to the calculation of the number of vested shares of restricted stock units related to the Company’s 2017 Equity Incentive Plan. The Company used an incorrect number of vested shares of restricted stock units for the year ended December 31, 2021. Accordingly, the Company restated the number of vested shares of restricted stock units for the year ended December 31, 2021 from 37,802 shares to 393,909 shares, and the resulting total non-vested restricted stock units at December 31, 2021 from 866,958 shares to 510,851 shares. Additionally, the weighted average grant date fair value of vested shares for the year ended December 31, 2021 was restated from $6.51 per share to $11.21 per share, and the weighted average grant date fair value for total nonvested restricted stock units as of December 31, 2021 was restated from $12.16 per share to $12.48 per share. This change did not have any impact on our earnings per share calculations, nor did it have any impact on any previous disclosures related to potentially dilutive securities excluded from the computations of diluted weighted-average shares of common stock outstanding. The Company has evaluated the materiality of this error and concluded that it is not material to the December 31, 2021 consolidated financial statements. Further, the Company will also prospectively restate the previously reported financial information for the related error in future and annual filings for the year ending December 31, 2022. Total stock compensation expense recognized from stock-based compensation awards classified as restricted stock units were recognized in the condensed consolidated statements of operations for the three and six months ended June 30, 2022 and 2021, as follows: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Research and development $ 1,900 $ 866,100 $ 13,900 $ 1,133,800 General and administrative 2,400 283,800 (4,700) 840,300 Total $ 4,300 $ 1,149,900 $ 9,200 $ 1,974,100 On August 20, 2020, the board of directors canceled and terminated RSUs, granted during the quarter ended June 30, 2020. The cancelled RSUs were originally granted to individuals with a grant date fair value of $ per share. Thereafter, on August 20, 2020, the board of directors granted RSUs to the same individuals with a grant date fair value of $ per share. of the RSU grants were considered vested on the grant date. The RSU grants were modified for employees and non-employees. The effects of the RSU modifications resulted in $ and $ of stock compensation expense allocable to research and development and general and administrative, respectively, during the three months ended June 30, 2021. Included in those amounts were incremental compensation costs of $ and $ of stock compensation expense allocable to research and development and general and administrative, respectively, during the three months ended June 30, 2021. The effects of the RSU modifications resulted in $ and $ of stock compensation expense allocable to research and development and general and administrative, respectively, during the six months ended June 30, 2021. Included in those amounts were incremental compensation costs of $ and $ of stock compensation expense allocable to research and development and general and administrative, respectively, during the six months ended June 30, 2021. 2021 Stock Incentive Plan—Restricted Stock Units The 2021 Plan permits the Company to grant equity awards for up to 1,217,292 shares of the Company’s common stock awards, including incentive stock options; non-statutory stock options; and conditional share awards to employees, directors, and consultants of the Company. All granted shares that are canceled, forfeited, or expired are returned to the 2021 Plan and are available for grant in conjunction with the issuance of new common stock awards. RSUs vest over a specified amount of time or when certain performance metrics are achieved by the Company. In the six months ended June 30, 2022, the fair value of the shares of common stock underlying restricted stock units was determined by the closing stock price listed on the Nasdaq Capital Market on the grant date. The following table summarizes the activity for all RSUs outstanding at June 30, 2022 and 2021 under the 2021 Plan: 2022 2021 Weighted Average Weighted Average Grant Date Grant Date Fair Value Fair Value Shares Per Share Shares Per share Nonvested RSUs at beginning of year 62,049 $ 5.52 — $ — Granted — — 23,613 8.47 Vested — — (4,723) 8.47 Cancelled and forfeited (3,939) 4.22 — — Nonvested RSUs at June 30, 58,110 $ 5.61 18,890 $ 8.47 Total stock compensation expense recognized from stock-based compensation awards classified as restricted stock units were recognized in the condensed consolidated statements of operations for the three and six months ended June 30, 2022 and 2021, as follows: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Research and development $ 17,400 $ — $ 25,700 $ — General and administrative 19,900 40,900 29,800 40,900 Total $ 37,300 $ 40,900 $ 55,500 $ 40,900 2021 Stock Incentive Plan — Stock Options The Black-Scholes option-pricing model was used to estimate the fair value of stock options with the following weighted average assumptions for the month ended June 30: June 30, 2022 Risk-free interest rate 2.99 % Expected volatility 119.55 % Expected life (years) 5.10 Expected dividend yield 0 % In the six months ended June 30, 2022, the fair value of the common shares underlying the stock options was determined by the closing stock price listed on the Nasdaq Capital Market on the grant date. The following table summarizes the activity for all stock options outstanding at June 30 under the 2021 Plan: 2022 Weighted Average Exercise Shares Price Options outstanding at beginning of year — $ — Granted 734,400 0.43 Exercised — — Cancelled and forfeited — — Balance at June 30 734,400 $ 0.43 Options exercisable at June 30: 367,200 $ 0.43 Weighted average grant date fair value for options granted and expected to be vested during the period: $ 0.36 The following table summarizes additional information about stock options outstanding and exercisable at June 30, 2022 under the 2021 Plan: Options Outstanding Options Exercisable Weighted Average Weighted Weighted Remaining Average Aggregate Average Aggregate As of Options Contractual Exercise Intrinsic Options Exercise Intrinsic June 30, Outstanding Life Price Value Exercisable Price Value 2022 734,400 10.00 $ 0.43 — 367,200 $ 0.43 — Total stock compensation expense recognized from stock-based compensation awards classified as stock options were recognized in the condensed consolidated statements of operations for the three and six months ended June 30, 2022 and 2021, as follows: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Research and development $ — $ — $ — $ — General and administrative 132,600 — 132,600 — Total $ 132,600 $ — $ 132,600 $ — As of June 30, 2022, total unrecognized stock compensation expense is $131,300, related to unvested stock options to be recognized over the remaining weighted-average vesting period of 0.5 years. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2022 | |
INCOME TAXES | |
INCOME TAXES | 12. The Company’s effective tax rate from continuing operations was 0% for the three and six months ended June 30, 2022 and 2021. The Company recorded no income tax provision for the three and six months ended June 30, 2022 or 2021. The provision for income taxes during the interim reporting periods is calculated by applying an estimate of the annual effective tax rate for the full fiscal year to “ordinary” income or loss for the reporting period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including changes in the mix of the pre-tax income and the jurisdictions to which it relates, changes in tax laws, business reorganizations and settlements with taxing authorities. The income tax rates vary from the US federal statutory rate of 21% primarily due to the full valuation allowance on the Company’s deferred tax assets. The Company has recorded the full valuation allowance based on an evaluation of both positive and negative evidence, including latest forecasts and cumulative losses in recent years. The Company has concluded that it was more likely than not that none of its deferred tax assets would be realized. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information (Accounting Standards Codification ("ASC") 270, Interim Reporting) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information necessary for a full presentation of financial position, results of operations, and cash flows in conformity with GAAP. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of the Company for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2021. The results of operations for the period ended June 30, 2022 are not necessarily indicative of the operating results that may be expected for a full year. The condensed consolidated balance sheet as of December 31, 2021 contains financial information taken from the audited Company consolidated financial statements as of that date. All intercompany balances were eliminated upon consolidation. |
Use of Estimates | Use of Estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Concentrations of Credit Risk and Other Uncertainties | Concentrations of Credit Risk and Other Uncertainties The Company is subject to certain risks and uncertainties from changes in any of the following areas that the Company believes could have a material adverse effect on future financial position or results of operations: the ability to obtain regulatory approval and market acceptance of, and reimbursement for, the Company’s product candidates; the performance of third-party clinical research organizations and manufacturers; protection of the intellectual property; litigation or claims against the Company based on intellectual property, patent, product, regulatory or other factors; the Company’s ability to attract and retain employees necessary to support commercial success; and changes in the industry or customer requirements including the emergence of competitive products with new capabilities. |
Deposit | Deposit |
Deferred Public Offering Costs | Deferred Public Offering Costs —In the six months ended June 30, 2021, the Company began incurring costs in connection with the filing of a Registration Statements on Form S-1 and Form S-1/A for a public offering, which were deferred in other current assets in accordance with ASC 505-10-25, Equity, in the condensed consolidated balance sheets. Public offering costs consist of legal, accounting, and other costs directly related to the Company's efforts to raise capital. As of June 30, 2022 and 2021, $0 and $478,900 of deferred costs related to the public offering were classified as prepaid expenses and other current assets on the condensed consolidated balance sheets. |
Property and Equipment | Property and Equipment 1 Estimated useful lives of property and equipment are as follows for the major classes of assets: Asset Description Estimated Lives Laboratory Equipment 3 - 8 Leasehold Improvements 1 - 7 Office Furniture, Fixtures, and Equipment 5 Software 3 - 5 |
Internal Use Software Development Costs | Internal Use Software Development Costs |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets — |
Comprehensive Loss | Comprehensive Loss |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which such temporary differences are expected to be recovered or settled. The Company records valuation allowances to reduce deferred income tax assets to the amount that is more likely than not to be realized. The Company records uncertain tax positions in accordance with ASC 740, Income Taxes |
Research and Development Expense | Research and Development Expense The Company accrues and expenses costs of services provided by contract research organizations in connection with preclinical studies and contract manufacturing organizations engaged to manufacture clinical trial material, costs of licensing technology, and costs of services provided by research organizations and service providers. Upfront payments and milestone payments made for the licensing of technology are expensed as research and development in the period in which they are incurred if the technology is not expected to have any alternative future uses other than the specific research and development project for which it was intended. Nonrefundable advance payments for goods or services to be received in the future for use in research and development activities are recorded as prepaid expenses. The prepaid amounts are expensed as the related goods are delivered or the services are performed rather than when the payment is made. |
Fair Value Measurements | Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. The Company accounts for financial instruments in accordance with ASC 820, Fair Value Measurements and Disclosures Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2—Quoted prices in non-active markets or in active markets for similar assets or liabilities, observable inputs other than quoted prices, and inputs that are not directly observable but are corroborated by observable market data. Level 3—Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. There were no changes in the fair value hierarchy levels during the three and six months ended June 30, 2022 or 2021. |
Nonvested Stock Options and Restricted Stock Units | Nonvested Stock Options and Restricted Stock Units The vesting conditions for stock options and restricted stock units include annual vesting, monthly vesting, and fully vesting upon grant date. Annual vesting conditions are for four years. Monthly vesting conditions range from 10 10-year The vesting conditions for restricted stock units include cliff vesting conditions. Certain restricted stock units vest with a range of 6 to 12 months following the expiration of employee lock-up agreements. Certain restricted stock units vest based on the later of achievement of key milestones or the expiration of employee lock-up agreements. When nonvested restricted stock units are vested, they are released to the grantee within sixty days. |
Stock-Based Compensation | Stock-Based Compensation Compensation—Stock Compensation The Company estimates the grant-date fair value of stock options using the Black-Scholes model and the assumptions used to value such stock options are determined as follows: Expected Term. Risk-Free Interest Rate. Volatility. Dividend Yield. Common Stock Valuations. During the three and six months ended June 30, 2022 and 2021, the closing price listed on the Nasdaq Capital Market for the Company’s common stock on the date of the grant was used as the common stock valuation. |
Segment Data | Segment Data |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases transition method, an entity initially applies the transition requirements in Topic 842 at that Topic’s effective date with the effects of initially applying Topic 842 recognized as a cumulative effect adjustment to the opening balance of retained earnings (or other components of equity or net assets, as appropriate) in the period of adoption. On October 16, 2019, the FASB changed the effective date of this standard applicable to the Company as an emerging growth company to January 1, 2022. Accordingly, the Company has adopted Topic 842 beginning in the first quarter of 2022. Modified retroactive transition approach will be required for operating leases existing at or entered into after the beginning of the earliest comparative period presented. The Company notes that adopting the new standard liability In June 2016, FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of estimated useful lives of property and equipment | Asset Description Estimated Lives Laboratory Equipment 3 - 8 Leasehold Improvements 1 - 7 Office Furniture, Fixtures, and Equipment 5 Software 3 - 5 |
NET LOSS PER SHARE OF COMMON _2
NET LOSS PER SHARE OF COMMON STOCK (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
NET LOSS PER COMMON SHARE | |
Schedule of earnings per share, basic and diluted | Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Net loss $ (8,435,100) $ (4,974,300) $ (15,802,800) $ (8,828,800) Less: initial public offering Common Stock discount amortization (24,900) (24,900) (49,600) (49,600) Less: public offering Common Stock discount amortization (61,000) — (121,400) — Net loss attributable to common shareholders, basic and diluted $ (8,521,000) $ (4,999,200) $ (15,973,800) $ (8,878,400) Weighted average common shares outstanding, basic and diluted 15,732,063 7,345,147 15,637,777 7,345,147 Net loss per common share, basic and diluted $ (0.54) $ (0.68) $ (1.02) $ (1.21) |
Schedule of antidilutive securities excluded from computation of earnings per share | Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Stock options — — — 167 Restricted stock units — 34,668 — 66,668 Total — 34,668 — 66,835 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
PROPERTY AND EQUIPMENT | |
Schedule of property and equipment | June 30, December 31, 2022 2021 Equipment $ 2,468,300 $ 1,593,100 Leasehold improvements 7,184,700 1,464,700 Office furniture, fixtures, and equipment 137,300 16,600 Software 359,500 359,500 Construction in progress 621,300 1,226,600 10,771,100 4,660,500 Less: Accumulated depreciation (1,613,400) (1,031,500) Total $ 9,157,700 $ 3,629,000 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of accrued expenses and other current liabilities | June 30, December 31, 2022 2021 Accrued consulting and outside services $ 504,100 $ 467,100 Accrued compensation 650,500 273,900 Total $ 1,154,600 $ 741,000 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
Schedule of lessee's operating lease right-of-use assets and lease liabilities | June 30, 2022 Operating lease Right-of-Use Asset Operating lease $ 2,298,300 Total right-of use asset $ 2,298,300 Lease Liabilities Operating lease - short term $ (535,600) Operating lease - long term (1,770,300) Total lease liabilities $ (2,305,900) |
Schedule of components of lease expense | Three Months Ended Six Months Ended June 30, June 30, Operating lease cost allocated to research and development expense $ 131,300 213,700 Operating lease cost allocated to general and administrative expense 38,200 106,300 Total lease expense $ 169,500 $ 320,000 Weighted-average remaining lease term 3.84 3.84 Weighted-average discount rate 7.12 % 7.12 % |
Schedule of maturities of operating lease liabilities | As of June 30, 2022 the maturities of the Company’s operating lease liabilities were as follows: Maturity of Lease Liabilities Operating lease 2022 $ 338,800 2023 684,300 2024 687,700 2025 694,300 2026 232,600 Total lease payments 2,637,700 Less: imputed interest (331,800) Present value of lease payments $ 2,305,900 |
Schedule of short-term lease expense | Three Months Ended Six Months Ended June 30, June 30, Short-term lease expense $ 7,500 $ 15,000 |
STOCKHOLDERS EQUITY (Tables)
STOCKHOLDERS EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity | |
Schedule of initial value of issuances allocated to IPO common stock, IPO common stock discount amortized and value of IPO common stock converted into additional paid-in-capital | 2022 2021 Common Stock Balance at January 1, $ 48,264,300 $ 11,975,400 Common stock initial public offering discount amortization 24,700 24,700 Common stock public offering discount amortization 60,400 — Balance at March 31, $ 48,349,400 $ 12,000,100 Common stock initial public offering discount amortization 24,900 24,900 Common stock public offering discount amortization 61,000 — Balance at June 30, $ 48,435,300 $ 12,025,000 |
Common Stock Warrants - Representative | Initial Public Offering | |
Stockholders' Equity | |
Schedule of assumptions used to estimate fair value of warrants | Risk-free interest rate 0.18 % Expected volatility 94.08 % Expected life (years) 2.74 Expected dividend yield 0 % |
Common Stock Warrants - Representative | Public Offering | |
Stockholders' Equity | |
Schedule of assumptions used to estimate fair value of warrants | Risk-free interest rate 0.40 % Expected volatility 98.27 % Expected life (years) 2.75 Expected dividend yield 0 % |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Stock Incentive Plan 2017 | Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of assumptions used to estimate fair value of stock options | June 30, June 30, 2022 2021 Risk-free interest rate 1.09 % 1.09 % Expected volatility 83.34 % 83.34 % Expected life (years) 6.22 6.22 Expected dividend yield 0 % 0 % |
Schedule of stock option activity | 2022 2021 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Options outstanding at beginning of year 380,909 $ 8.57 489,718 $ 10.03 Granted — — 147,038 8.47 Exercised — — (18,891) 6.64 Cancelled and forfeited (42,037) 9.19 (59,430) 17.86 Balance at June 30 338,872 $ 8.49 558,435 $ 8.90 Options exercisable at June 30: 334,964 $ 8.50 391,572 $ 8.84 Weighted average grant date fair value for options granted and expected to be vested during the period: $ — $ 8.47 Options Outstanding Options Exercisable Weighted Average Weighted Weighted Remaining Average Aggregate Average Aggregate As of Options Contractual Exercise Intrinsic Options Exercise Intrinsic June 30, Outstanding Life Price Value Exercisable Price Value 2022 338,872 5.52 $ 8.49 — 334,964 $ 8.50 — 2021 558,435 7.43 $ 8.90 — 391,572 $ 8.84 — |
Schedule of stock-based compensation | Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Research and development $ 3,000 $ 22,900 $ 52,000 $ 41,900 General and administrative 7,000 54,900 15,000 156,900 Total $ 10,000 $ 77,800 $ 67,000 $ 198,800 |
Stock Incentive Plan 2017 | Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of restricted stock unit activity | 2022 2021 Weighted Average Weighted Average Grant Date Grant Date Fair Value Fair Value Shares Per Share Shares Per Share Nonvested RSUs at beginning of year, as restated 510,851 $ 12.48 946,245 $ 12.81 Granted — — 166,660 7.98 Vested (10,682) 8.64 (36,791) 6.44 Cancelled and forfeited (335,719) 12.79 (627) 9.00 Nonvested RSUs at June 30, 164,450 $ 12.09 1,075,487 $ 12.28 |
Schedule of stock-based compensation | Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Research and development $ 1,900 $ 866,100 $ 13,900 $ 1,133,800 General and administrative 2,400 283,800 (4,700) 840,300 Total $ 4,300 $ 1,149,900 $ 9,200 $ 1,974,100 |
Stock Incentive Plan 2021 | Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of assumptions used to estimate fair value of stock options | June 30, 2022 Risk-free interest rate 2.99 % Expected volatility 119.55 % Expected life (years) 5.10 Expected dividend yield 0 % |
Schedule of stock option activity | 2022 Weighted Average Exercise Shares Price Options outstanding at beginning of year — $ — Granted 734,400 0.43 Exercised — — Cancelled and forfeited — — Balance at June 30 734,400 $ 0.43 Options exercisable at June 30: 367,200 $ 0.43 Weighted average grant date fair value for options granted and expected to be vested during the period: $ 0.36 Options Outstanding Options Exercisable Weighted Average Weighted Weighted Remaining Average Aggregate Average Aggregate As of Options Contractual Exercise Intrinsic Options Exercise Intrinsic June 30, Outstanding Life Price Value Exercisable Price Value 2022 734,400 10.00 $ 0.43 — 367,200 $ 0.43 — |
Schedule of stock-based compensation | Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Research and development $ — $ — $ — $ — General and administrative 132,600 — 132,600 — Total $ 132,600 $ — $ 132,600 $ — |
Stock Incentive Plan 2021 | Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of restricted stock unit activity | 2022 2021 Weighted Average Weighted Average Grant Date Grant Date Fair Value Fair Value Shares Per Share Shares Per share Nonvested RSUs at beginning of year 62,049 $ 5.52 — $ — Granted — — 23,613 8.47 Vested — — (4,723) 8.47 Cancelled and forfeited (3,939) 4.22 — — Nonvested RSUs at June 30, 58,110 $ 5.61 18,890 $ 8.47 |
Schedule of stock-based compensation | Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Research and development $ 17,400 $ — $ 25,700 $ — General and administrative 19,900 40,900 29,800 40,900 Total $ 37,300 $ 40,900 $ 55,500 $ 40,900 |
ORGANIZATION (Details)
ORGANIZATION (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
ORGANIZATION | |||
Cash flow from operations | $ (13,548,000) | $ (6,344,100) | |
Accumulated deficit | $ (83,019,400) | $ (67,216,500) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Jun. 30, 2022 USD ($) item | Jun. 30, 2021 USD ($) |
Deferred costs | ||
Number of lease facilities with deposit held by lessor | item | 1 | |
Prepaid expenses and other current assets | ||
Deferred costs | ||
Deferred Offering Costs | $ | $ 0 | $ 478,900 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Property and Equipment | |||||
Impairment of long-lived assets held-for-use | $ 0 | $ 0 | |||
Unrecognized tax benefits, interest or penalties | $ 0 | $ 0 | $ 0 | $ 0 | |
Minimum | |||||
Property and Equipment | |||||
Property plant and equipment useful life | 1 year | ||||
Maximum | |||||
Property and Equipment | |||||
Property plant and equipment useful life | 8 years | ||||
Laboratory equipment | Minimum | |||||
Property and Equipment | |||||
Property plant and equipment useful life | 3 years | ||||
Laboratory equipment | Maximum | |||||
Property and Equipment | |||||
Property plant and equipment useful life | 8 years | ||||
Leasehold improvements | Minimum | |||||
Property and Equipment | |||||
Property plant and equipment useful life | 1 year | ||||
Leasehold improvements | Maximum | |||||
Property and Equipment | |||||
Property plant and equipment useful life | 7 years | ||||
Office furniture, fixtures, and equipment | |||||
Property and Equipment | |||||
Property plant and equipment useful life | 5 years | ||||
Software | Minimum | |||||
Property and Equipment | |||||
Property plant and equipment useful life | 3 years | ||||
Software | Maximum | |||||
Property and Equipment | |||||
Property plant and equipment useful life | 5 years | ||||
Software development costs | |||||
Property and Equipment | |||||
Property plant and equipment useful life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value Measurements (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Changes in fair value hierarchy levels | $ 0 | $ 0 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nonvested Stock Options (Details) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Nonvested Stock Options | ||
Expected dividend yield | 0% | |
Monthly Vesting Conditions | Minimum | Restricted Stock Units | ||
Nonvested Stock Options | ||
Vesting period | 6 months | |
Monthly Vesting Conditions | Maximum | Restricted Stock Units | ||
Nonvested Stock Options | ||
Vesting period | 12 months | |
Stock Incentive Plan 2017 | ||
Nonvested Stock Options | ||
Expiration period | 10 years | |
Stock Incentive Plan 2017 | Stock Options | ||
Nonvested Stock Options | ||
Expected dividend yield | 0% | 0% |
Stock Incentive Plan 2017 | Annual Vesting Conditions | ||
Nonvested Stock Options | ||
Vesting period | 4 years | |
Stock Incentive Plan 2017 | Monthly Vesting Conditions | Minimum | ||
Nonvested Stock Options | ||
Vesting period | 10 months | |
Stock Incentive Plan 2017 | Monthly Vesting Conditions | Maximum | ||
Nonvested Stock Options | ||
Vesting period | 48 months |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently issued accounting pronouncements (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2022 | |
Adoption of accounting pronouncements | ||
Operating lease liability | $ 2,305,900 | |
Operating lease right-of-use asset | $ 2,298,300 | |
Cumulative Effect, Period of Adoption, Adjustment | ||
Adoption of accounting pronouncements | ||
Operating lease liability | $ 2,232,700 | |
Operating lease right-of-use asset | $ 2,232,700 | |
Accounting Standards Update [Extensible Enumeration] | us-gaap:AccountingStandardsUpdate201602Member |
NET LOSS PER SHARE OF COMMON _3
NET LOSS PER SHARE OF COMMON STOCK - Computation of basic and diluted earnings per share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
NET LOSS PER COMMON SHARE | ||||||
Net loss | $ (8,435,100) | $ (7,367,800) | $ (4,974,300) | $ (3,854,500) | $ (15,802,800) | $ (8,828,800) |
Less: Initial Public Offering Common Stock discount amortization | (24,900) | (24,900) | (49,600) | (49,600) | ||
Less: public offering Common Stock discount amortization | (61,000) | (121,400) | ||||
Net loss attributable to common shareholders, basic | (8,521,000) | (4,999,200) | (15,973,800) | (8,878,400) | ||
Net loss attributable to common shareholders, diluted | $ (8,521,000) | $ (4,999,200) | $ (15,973,800) | $ (8,878,400) | ||
Weighted average common shares outstanding, basic | 15,732,063 | 7,345,147 | 15,637,777 | 7,345,147 | ||
Weighted average common shares outstanding, diluted | 15,732,063 | 7,345,147 | 15,637,777 | 7,345,147 | ||
Net loss per common share, basic | $ (0.54) | $ (0.68) | $ (1.02) | $ (1.21) | ||
Net loss per common share, diluted | $ (0.54) | $ (0.68) | $ (1.02) | $ (1.21) |
NET LOSS PER SHARE OF COMMON _4
NET LOSS PER SHARE OF COMMON STOCK - Dilutive Securities Excluded From the Computations of Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Dilutive Securities Excluded From the Computations of Earnings Per Share | ||
Potentially dilutive securities | 34,668 | 66,835 |
Stock Options | ||
Dilutive Securities Excluded From the Computations of Earnings Per Share | ||
Potentially dilutive securities | 167 | |
Restricted Stock Units | ||
Dilutive Securities Excluded From the Computations of Earnings Per Share | ||
Potentially dilutive securities | 34,668 | 66,668 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT | |||||
Property, Plant and Equipment, Gross | $ 10,771,100 | $ 10,771,100 | $ 4,660,500 | ||
Less: Accumulated depreciation | (1,613,400) | (1,613,400) | (1,031,500) | ||
Total | 9,157,700 | 9,157,700 | 3,629,000 | ||
Depreciation | 399,100 | $ 106,800 | 581,900 | $ 202,400 | |
Equipment | |||||
PROPERTY AND EQUIPMENT | |||||
Property, Plant and Equipment, Gross | 2,468,300 | 2,468,300 | 1,593,100 | ||
Leasehold improvements | |||||
PROPERTY AND EQUIPMENT | |||||
Property, Plant and Equipment, Gross | 7,184,700 | 7,184,700 | 1,464,700 | ||
Office furniture, fixtures, and equipment | |||||
PROPERTY AND EQUIPMENT | |||||
Property, Plant and Equipment, Gross | 137,300 | 137,300 | 16,600 | ||
Software | |||||
PROPERTY AND EQUIPMENT | |||||
Property, Plant and Equipment, Gross | 359,500 | 359,500 | 359,500 | ||
Construction in progress | |||||
PROPERTY AND EQUIPMENT | |||||
Property, Plant and Equipment, Gross | $ 621,300 | $ 621,300 | $ 1,226,600 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||
Accrued consulting and outside services | $ 504,100 | $ 467,100 |
Accrued compensation | 650,500 | 273,900 |
Total | $ 1,154,600 | $ 741,000 |
LOAN PAYABLE (Details)
LOAN PAYABLE (Details) - SBA Loan - USD ($) | Feb. 16, 2021 | May 01, 2020 |
Current loan payable | ||
Principal amount | $ 115,600 | |
Loan term | 2 years | |
Loan fixed interest rate | 1% | |
Loan first payment due | 7 months | |
Loan forgiveness | $ 105,800 |
NOTE PAYABLE (Details)
NOTE PAYABLE (Details) - USD ($) | 1 Months Ended | ||
Nov. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Note payable | |||
Note payable | $ 114,900 | $ 454,500 | |
Director and Officer Insurance Policy Financing | |||
Note payable | |||
Note payable | $ 665,900 | $ 114,900 | $ 454,500 |
Interest rate | 4.59% | ||
Note term | 10 months |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Legal proceedings (Details) - USD ($) | Jul. 02, 2021 | Mar. 22, 2021 | Mar. 07, 2022 |
Strategic Alliance Agreement | |||
Legal proceedings | |||
Proceeds from issuance of common stock | $ 40,000,000 | ||
Jason Terrell - 2014 Consulting Agreement | |||
Legal proceedings | |||
Number of stock options sought | 500,000 | ||
Stock option exercise price | $ 0.50 | ||
Jason Terrell - 2017 Non-employee Director Options Agreement | |||
Legal proceedings | |||
Number of stock options sought | 500,005 | ||
Stock option exercise price | $ 0.17 | ||
Sabby Volatility Warrant Master Fund Ltd | Minimum | |||
Legal proceedings | |||
Estimated loss from legal complaint | $ 0 | ||
Sabby Volatility Warrant Master Fund Ltd | Maximum | |||
Legal proceedings | |||
Estimated loss from legal complaint | $ 8,100,000 |
LEASES - Lease information (Det
LEASES - Lease information (Details) | 2 Months Ended | 6 Months Ended | ||
May 01, 2022 USD ($) item | Aug. 01, 2021 USD ($) | Dec. 31, 2021 item USD ($) | Jun. 30, 2022 | |
Leases | ||||
Lease, Practical Expedients, Package [true false] | true | |||
Additional office space leased | 9,352 | 15,385 | 3,684 | |
Period of time after notice of cancellation that the lease effectively terminates | 90 days | 90 days | 90 days | |
Number of lease amendments executed | item | 2 | |||
Number of months rent due as a termination payment if lease cancellation option exercised | item | 3 | |||
Monthly rent - Years one and two | $ 4,800 | |||
Monthly rent - Years three and four | 4,896 | |||
Monthly rent - Year five | $ 5,000 |
LEASES - Balance sheet disclosu
LEASES - Balance sheet disclosures (Details) | Jun. 30, 2022 USD ($) |
Leases | |
Operating lease right-of-use asset | $ 2,298,300 |
Operating lease liability - short term | (535,600) |
Operating lease liability - long term | (1,770,300) |
Total lease liabilities | $ (2,305,900) |
LEASES - Components of lease ex
LEASES - Components of lease expense (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Operating leases | ||
Operating lease cost | $ 169,500 | $ 320,000 |
Weighted-average remaining lease term | 3 years 10 months 2 days | 3 years 10 months 2 days |
Weighted-average discount rate | 7.12% | 7.12% |
Research and development | ||
Operating leases | ||
Operating lease cost | $ 131,300 | $ 213,700 |
General and administrative | ||
Operating leases | ||
Operating lease cost | $ 38,200 | $ 106,300 |
LEASES - Operating lease liabil
LEASES - Operating lease liability maturities (Details) | Jun. 30, 2022 USD ($) |
Operating leases | |
2022 | $ 338,800 |
2023 | 684,300 |
2024 | 687,700 |
2025 | 694,300 |
2026 | 232,600 |
Total lease payments | 2,637,700 |
Less: imputed interest | (331,800) |
Present value of lease payments | $ 2,305,900 |
LEASES - Short-term Lease (Deta
LEASES - Short-term Lease (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases | ||||
Short-term lease expense | $ 7,500 | $ 15,000 | ||
Monthly rent expense on short-term lease | $ 2,500 | |||
Rent expense | $ 74,900 | $ 143,900 |
STOCKHOLDERS EQUITY - Informati
STOCKHOLDERS EQUITY - Information (Details) - $ / shares | 6 Months Ended | |||
Jun. 22, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 25, 2021 | |
Stockholder's equity (Deficit) | ||||
Preferred stock, authorized | 60,000,000 | 60,000,000 | ||
Common stock, authorized | 300,000,000 | 300,000,000 | ||
Dividend paid | $ 0 | |||
Shares available for issuance | 1,149,682 | 433,895 | ||
Stock Incentive Plan 2021 | ||||
Stockholder's equity (Deficit) | ||||
Additional shares authorized | 1,000,000 | |||
Authorized shares | 200,000 | |||
Series A-1 Preferred Stock | ||||
Stockholder's equity (Deficit) | ||||
Preferred stock, authorized | 24,000,000 | 24,000,000 | ||
Series B Preferred Stock | ||||
Stockholder's equity (Deficit) | ||||
Preferred stock, authorized | 16,500,000 | 16,500,000 |
STOCKHOLDERS EQUITY - Common St
STOCKHOLDERS EQUITY - Common Stock (Details) - USD ($) | 3 Months Ended | ||||
Jul. 02, 2021 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Common stock | |||||
Beginning balance | $ 48,349,400 | $ 48,264,300 | $ 12,000,100 | $ 11,975,400 | |
Common stock discount amortization | 85,900 | 85,100 | 24,900 | 24,700 | |
Ending Balance | 48,435,300 | 48,349,400 | 12,025,000 | 12,000,100 | |
Initial Public Offering | |||||
Common stock | |||||
Common stock discount amortization | 24,900 | 24,700 | $ 24,900 | $ 24,700 | |
Public Offering | |||||
Common stock | |||||
Proceeds from issuance of common stock net of issuance costs | $ 37,118,100 | ||||
Underwriting discounts and commissions | 2,494,900 | ||||
Offering expenses | $ 457,000 | ||||
Shares issued | 8,000,000 | ||||
Share price | $ 5 | ||||
Common stock discount amortization | $ 61,000 | $ 60,400 |
STOCKHOLDERS EQUITY - Represent
STOCKHOLDERS EQUITY - Representative's Warrants (Details) | Jul. 02, 2021 $ / shares shares | Oct. 15, 2020 $ / shares shares | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Initial Public Offering | ||||
Weighted average valuation assumptions | ||||
Warrants fair value | $ | $ 207,700 | $ 257,300 | ||
Common Stock Warrants - Representative | Initial Public Offering | ||||
Weighted average valuation assumptions | ||||
Warrants and Rights Outstanding, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueOptionPricingModelMember | |||
Warrants and Rights Outstanding, Term | 5 years | |||
Warrants | ||||
Number of warrants granted | shares | 62,500 | |||
Warrant exercise price | $ / shares | $ 15 | |||
Exercise price as a percentage of the initial offering price | 125% | |||
Common Stock Warrants - Representative | Public Offering | ||||
Weighted average valuation assumptions | ||||
Warrants fair value | $ | $ 807,900 | $ 929,300 | ||
Warrants and Rights Outstanding, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueOptionPricingModelMember | |||
Warrants and Rights Outstanding, Term | 5 years | |||
Warrants | ||||
Number of warrants granted | shares | 400,000 | |||
Warrant exercise price | $ / shares | $ 6.25 | |||
Exercise price as a percentage of the initial offering price | 125% | |||
Common Stock Warrants - Representative | Measurement Input, Risk Free Interest Rate | Initial Public Offering | ||||
Weighted average valuation assumptions | ||||
Warrants and Rights Outstanding, Measurement Input | 0.0018 | |||
Common Stock Warrants - Representative | Measurement Input, Risk Free Interest Rate | Public Offering | ||||
Weighted average valuation assumptions | ||||
Warrants and Rights Outstanding, Measurement Input | 0.0040 | |||
Common Stock Warrants - Representative | Measurement Input, Price Volatility | Initial Public Offering | ||||
Weighted average valuation assumptions | ||||
Warrants and Rights Outstanding, Measurement Input | 0.9408 | |||
Common Stock Warrants - Representative | Measurement Input, Price Volatility | Public Offering | ||||
Weighted average valuation assumptions | ||||
Warrants and Rights Outstanding, Measurement Input | 0.9827 | |||
Common Stock Warrants - Representative | Measurement Input, Expected Term | Initial Public Offering | ||||
Weighted average valuation assumptions | ||||
Warrants and Rights Outstanding, Term | 2 years 8 months 26 days | |||
Common Stock Warrants - Representative | Measurement Input, Expected Term | Public Offering | ||||
Weighted average valuation assumptions | ||||
Warrants and Rights Outstanding, Term | 2 years 9 months | |||
Common Stock Warrants - Representative | Measurement Input, Expected Dividend Rate | Initial Public Offering | ||||
Weighted average valuation assumptions | ||||
Warrants and Rights Outstanding, Measurement Input | 0 | |||
Common Stock Warrants - Representative | Measurement Input, Expected Dividend Rate | Public Offering | ||||
Weighted average valuation assumptions | ||||
Warrants and Rights Outstanding, Measurement Input | 0 |
STOCK-BASED COMPENSATION - Weig
STOCK-BASED COMPENSATION - Weighted-average Assumptions (Details) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Weighted average assumptions | ||
Expected dividend yield | 0% | |
Stock Incentive Plan 2017 | Stock Options | ||
Weighted average assumptions | ||
Risk-free interest rate | 1.09% | 1.09% |
Expected volatility | 83.34% | 83.34% |
Expected life (years) | 6 years 2 months 19 days | 6 years 2 months 19 days |
Expected dividend yield | 0% | 0% |
Stock Incentive Plan 2021 | Stock Options | ||
Weighted average assumptions | ||
Risk-free interest rate | 2.99% | |
Expected volatility | 119.55% | |
Expected life (years) | 5 years 1 month 6 days | |
Expected dividend yield | 0% |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Options (Details) - Stock Options | 6 Months Ended | |
Jun. 30, 2022 $ / shares shares | Jun. 30, 2021 $ / shares shares | |
Stock Incentive Plan 2017 | ||
Stock option activity | ||
Options outstanding at beginning of year | shares | 380,909 | 489,718 |
Granted | shares | 147,038 | |
Exercised | shares | (18,891) | |
Cancelled and forfeited | shares | (42,037) | (59,430) |
Balance at end of period | shares | 338,872 | 558,435 |
Options exercisable at June 30: | shares | 334,964 | 391,572 |
Weighted average exercise price | ||
Options outstanding at beginning of year | $ 8.57 | $ 10.03 |
Granted | 8.47 | |
Exercised | 6.64 | |
Cancelled and forfeited | 9.19 | 17.86 |
Balance at end of period | 8.49 | 8.90 |
Options exercisable at June 30: | $ 8.50 | 8.84 |
Weighted average grant date fair value for options granted and expected to be vested during the year: | $ 8.47 | |
Additional stock option information | ||
Options outstanding, number | shares | 338,872 | 558,435 |
Options outstanding, weighted average remaining contractual life | 5 years 6 months 7 days | 7 years 5 months 4 days |
Options outstanding, weighted average exercise price | $ 8.49 | $ 8.90 |
Options exercisable, number | shares | 334,964 | 391,572 |
Options exercisable, weighted average exercise price | $ 8.50 | $ 8.84 |
Stock Incentive Plan 2021 | ||
Stock option activity | ||
Granted | shares | 734,400,000 | |
Balance at end of period | shares | 734,400,000 | |
Options exercisable at June 30: | shares | 367,200,000 | |
Weighted average exercise price | ||
Granted | $ 0.43 | |
Balance at end of period | 0.43 | |
Options exercisable at June 30: | 0.43 | |
Weighted average grant date fair value for options granted and expected to be vested during the year: | $ 0.36 | |
Additional stock option information | ||
Options outstanding, number | shares | 734,400,000 | |
Options outstanding, weighted average remaining contractual life | 10 years | |
Options outstanding, weighted average exercise price | $ 0.43 | |
Options exercisable, number | shares | 367,200,000 | |
Options exercisable, weighted average exercise price | $ 0.43 |
STOCK-BASED COMPENSATION - St_2
STOCK-BASED COMPENSATION - Stock Option Modifications (Details) - Stock Options | 3 Months Ended | 6 Months Ended | |||
Aug. 20, 2020 employee $ / shares shares | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) $ / shares shares | |
Stock Incentive Plan 2017 | |||||
Stock compensation expense | |||||
Stock compensation expense | $ 10,000 | $ 77,800 | $ 67,000 | $ 198,800 | |
Cancelled and forfeited | shares | 42,037 | 59,430 | |||
Number of individuals affected by modifications | employee | 4 | ||||
Granted | shares | 147,038 | ||||
Weighted average grant date fair value for options granted and expected to be vested during the year: | $ / shares | $ 8.47 | ||||
Total unrecognized stock compensation expense | 21,400 | $ 21,400 | |||
Weighted-average period over which cost not yet recognized is expected to be recognized | 6 months 25 days | ||||
Stock Incentive Plan 2017 | Research and development | |||||
Stock compensation expense | |||||
Stock compensation expense | 3,000 | 22,900 | $ 52,000 | $ 41,900 | |
Stock Incentive Plan 2017 | General and administrative | |||||
Stock compensation expense | |||||
Stock compensation expense | 7,000 | 54,900 | 15,000 | 156,900 | |
Effect of modifications on stock compensation expense | 14,000 | 34,900 | |||
Incremental compensation costs | $ 6,400 | $ 16,000 | |||
Stock Incentive Plan 2017 | Four Nonemployees | |||||
Stock compensation expense | |||||
Cancelled and forfeited | shares | 15,792 | ||||
Granted | shares | 21,112 | ||||
Weighted average grant date fair value for options granted and expected to be vested during the year: | $ / shares | $ 12.81 | ||||
Options vested | shares | 3,959 | ||||
Stock Incentive Plan 2021 | |||||
Stock compensation expense | |||||
Stock compensation expense | 132,600 | $ 132,600 | |||
Granted | shares | 734,400,000 | ||||
Weighted average grant date fair value for options granted and expected to be vested during the year: | $ / shares | $ 0.36 | ||||
Total unrecognized stock compensation expense | 131,300 | $ 131,300 | |||
Weighted-average period over which cost not yet recognized is expected to be recognized | 6 months | ||||
Stock Incentive Plan 2021 | General and administrative | |||||
Stock compensation expense | |||||
Stock compensation expense | $ 132,600 | $ 132,600 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock Units (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Aug. 20, 2020 individual employee $ / shares shares | Apr. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) $ / shares shares | Dec. 31, 2021 $ / shares shares | Jun. 25, 2021 shares | Jan. 31, 2017 shares | |
Stock Incentive Plan 2017 | Restricted Stock Units | |||||||||
Restricted stock units | |||||||||
Authorized shares | 1,708,615 | ||||||||
Number of individuals affected by modifications | individual | 5 | ||||||||
Stock compensation expense | $ | $ 4,300 | $ 1,149,900 | $ 9,200 | $ 1,974,100 | |||||
Restricted stock unit activity | |||||||||
Nonvested RSUs at beginning of year | 510,851 | 946,245 | 946,245 | ||||||
Granted | 946,245 | 166,660 | |||||||
Vested | 0 | (10,682) | (36,791) | ||||||
Cancelled and forfeited | (709,334) | (335,719) | (627) | ||||||
Nonvested RSUs at end of period | 164,450 | 1,075,487 | 164,450 | 1,075,487 | 510,851 | ||||
Weighted average grant day fair value per share | |||||||||
Nonvested RSUs at beginning of year | $ / shares | $ 12.48 | $ 12.81 | $ 12.81 | ||||||
Granted | $ / shares | $ 12.81 | 7.98 | |||||||
Vested | $ / shares | 8.64 | 6.44 | |||||||
Cancelled and forfeited | $ / shares | $ 12.87 | 12.79 | 9 | ||||||
Nonvested RSUs at end of period | $ / shares | $ 12.09 | $ 12.28 | $ 12.09 | $ 12.28 | $ 12.48 | ||||
Stock Incentive Plan 2017 | Restricted Stock Units | Research and development | |||||||||
Restricted stock units | |||||||||
Stock compensation expense | $ | $ 1,900 | $ 866,100 | $ 13,900 | $ 1,133,800 | |||||
Effect of modifications on stock compensation expense | $ | 268,900 | 536,600 | |||||||
Incremental compensation costs | $ | 20,600 | 41,000 | |||||||
Stock Incentive Plan 2017 | Restricted Stock Units | General and administrative | |||||||||
Restricted stock units | |||||||||
Stock compensation expense | $ | 2,400 | 283,800 | $ (4,700) | 840,300 | |||||
Effect of modifications on stock compensation expense | $ | $ 621,800 | 1,178,300 | |||||||
Incremental compensation costs | $ | $ 45,200 | $ 89,900 | |||||||
Stock Incentive Plan 2017 | Restricted Stock Units | Non-Employees | |||||||||
Restricted stock units | |||||||||
Number of individuals affected by modifications | individual | 2 | ||||||||
Stock Incentive Plan 2017 | Restricted Stock Units | Employees | |||||||||
Restricted stock units | |||||||||
Number of individuals affected by modifications | employee | 3 | ||||||||
Stock Incentive Plan 2017 | Restricted Stock Units | Previously Reported | |||||||||
Restricted stock unit activity | |||||||||
Nonvested RSUs at beginning of year | 866,958 | ||||||||
Vested | (37,802) | ||||||||
Nonvested RSUs at end of period | 866,958 | ||||||||
Weighted average grant day fair value per share | |||||||||
Nonvested RSUs at beginning of year | $ / shares | $ 12.16 | ||||||||
Vested | $ / shares | $ 6.51 | ||||||||
Nonvested RSUs at end of period | $ / shares | $ 12.16 | ||||||||
Stock Incentive Plan 2017 | Restricted Stock Units | Restated | |||||||||
Restricted stock unit activity | |||||||||
Nonvested RSUs at beginning of year | 510,851 | ||||||||
Vested | (393,909) | ||||||||
Nonvested RSUs at end of period | 510,851 | ||||||||
Weighted average grant day fair value per share | |||||||||
Nonvested RSUs at beginning of year | $ / shares | $ 12.48 | ||||||||
Vested | $ / shares | $ 11.21 | ||||||||
Nonvested RSUs at end of period | $ / shares | $ 12.48 | ||||||||
Stock Incentive Plan 2021 | |||||||||
Restricted stock units | |||||||||
Authorized shares | 200,000 | ||||||||
Stock Incentive Plan 2021 | Maximum | |||||||||
Restricted stock units | |||||||||
Authorized shares | 1,217,292 | 1,217,292 | |||||||
Stock Incentive Plan 2021 | Restricted Stock Units | |||||||||
Restricted stock units | |||||||||
Stock compensation expense | $ | $ 37,300 | $ 40,900 | $ 55,500 | $ 40,900 | |||||
Restricted stock unit activity | |||||||||
Nonvested RSUs at beginning of year | 62,049 | ||||||||
Granted | 23,613 | ||||||||
Vested | (4,723) | ||||||||
Cancelled and forfeited | (3,939) | ||||||||
Nonvested RSUs at end of period | 58,110 | 18,890 | 58,110 | 18,890 | 62,049 | ||||
Weighted average grant day fair value per share | |||||||||
Nonvested RSUs at beginning of year | $ / shares | $ 5.52 | ||||||||
Granted | $ / shares | $ 8.47 | ||||||||
Vested | $ / shares | 8.47 | ||||||||
Cancelled and forfeited | $ / shares | 4.22 | ||||||||
Nonvested RSUs at end of period | $ / shares | $ 5.61 | $ 8.47 | $ 5.61 | $ 8.47 | $ 5.52 | ||||
Stock Incentive Plan 2021 | Restricted Stock Units | Research and development | |||||||||
Restricted stock units | |||||||||
Stock compensation expense | $ | $ 17,400 | $ 25,700 | |||||||
Stock Incentive Plan 2021 | Restricted Stock Units | General and administrative | |||||||||
Restricted stock units | |||||||||
Stock compensation expense | $ | $ 19,900 | $ 40,900 | $ 29,800 | $ 40,900 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
INCOME TAXES | ||||
Effective tax rate from continuing operations | 0% | 0% | 0% | 0% |
Income tax provision | $ 0 | $ 0 | $ 0 | $ 0 |
Federal statutory rate | 21% | |||
Realized deferred tax assets | $ 0 | $ 0 |