| Delaware (State or other jurisdiction of incorporation or organization) | | | 2834 (Primary Standard Industrial Classification Code Number) | | | 81-1822909 (I.R.S. Employer Identification No.) | |
| Spencer G. Feldman, Esq. Kenneth A. Schlesinger, Esq. Olshan Frome Wolosky LLP 1325 Avenue of the Americas, 15th Floor New York, NY 10019 Tel.: (212) 451-2300 | | | Henry C.W. Nisser, Esq. Executive Vice President & General Counsel Alzamend Neuro, Inc. 100 Park Avenue, Suite 1658 New York, NY 10017 Tel.: (646) 650-5044 | | | Rick A. Werner, Esq. Haynes and Boone LLP 30 Rockefeller Plaza, 26th Floor New York, NY 10112 Tel.: (212) 659-7300 | |
| Large accelerated filer ☐ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☒ | | | Smaller reporting company ☒ | |
| | | | Emerging growth company ☒ | |
| | | Per Share | | | Total | | ||||||
Public offering price | | | | $ | | | | | $ | | | ||
Underwriting discount(1)(2) | | | | $ | | | | | $ | | | ||
Proceeds, before expenses, to us | | | | $ | | | | | $ | | | |
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| | | | F-1 | | |
| | | Year Ended April 30, | | | Nine Months Ended January 31, | | ||||||||||||||||||
| | | 2019 | | | 2020 | | | 2020 | | | 2021 | | ||||||||||||
Statements of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development | | | | $ | 3,700,083 | | | | | $ | 1,069,418 | | | | | $ | 826,642 | | | | | $ | 1,018,021 | | |
General and administrative | | | | | 1,308,800 | | | | | | 3,354,743 | | | | | | 2,338,240 | | | | | | 2,713,891 | | |
Total operating expenses | | | | | 5,008,883 | | | | | | 4,424,161 | | | | | | 3,164,882 | | | | | | 3,731,912 | | |
Loss from operations | | | | | (5,008,883) | | | | | | (4,424,161) | | | | | | (3,164,882) | | | | | | (3,731,912) | | |
Total other income (expense), net | | | | | 146,387 | | | | | | 13,925 | | | | | | 11,436 | | | | | | (57,822) | | |
Net loss | | | | $ | (4,862,496) | | | | | $ | (4,410,236) | | | | | $ | (3,153,446) | | | | | $ | (3,789,734) | | |
Basic and diluted net loss per common share | | | | $ | (0.08) | | | | | $ | (0.06) | | | | | $ | (0.04) | | | | | $ | (0.05) | | |
Basic and diluted weighted average common shares outstanding | | | | | 58,843,040 | | | | | | 71,253,580 | | | | | | 71,036,787 | | | | | | 72,262,858 | | |
Pro forma net loss per share attributable to common stockholders, basic and diluted (unaudited)(1) | | | | | | | | | | $ | (0.05) | | | | | | | | | | | $ | (0.04) | | |
Weighted-average shares outstanding used in computing pro forma net loss per share attributable to common stockholders, basic and diluted (unaudited)(1) | | | | | | | | | | | 88,753,580 | | | | | | | | | | | | 89,762,858 | | |
| | | As of January 31, 2021 | | |||||||||||||||
| | | Actual | | | Pro Forma(1) | | | Pro Forma, As Adjusted(2) | | |||||||||
| | | | | | | | | (unaudited) | | | (unaudited) | | ||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 40,737 | | | | | $ | 40,737 | | | | | $ | 11,350,737 | | |
Working capital(3) | | | | | (1,295,947) | | | | | | (1,295,947) | | | | | | 10,014,053 | | |
Total assets | | | | | 802,007 | | | | | | 802,007 | | | | | | 12,112,007 | | |
Total liabilities | | | | | 2,097,954 | | | | | | 2,097,954 | | | | | | 2,097,954 | | |
Convertible preferred stock | | | | | 75 | | | | | | — | | | | | | — | | |
Accumulated deficit | | | | | 15,575,603 | | | | | | 15,575,603 | | | | | | 15,575,603 | | |
Total stockholders’ (deficit) equity | | | | | (1,295,947) | | | | | | (1,295,947) | | | | | | 10,014,053 | | |
| Payment | | | Due Date | | | Event | |
| $ 50,000 | | | November 1, 2019 | | | Pre-IND meeting | |
| $ 65,000 | | | December 31, 2021 | | | IND application filing | |
| $ 190,000 | | | 12 months from IND filing date | | | Upon first dosing of patient in a clinical trial | |
| $ 500,000 | | | 12 months from first patient dosing | | | Upon completion of first clinical trial | |
| $ 1,250,000 | | | 24 months from completion of the first clinical trial | | | Upon first patient treated in a Phase III clinical trial | |
| $10,000,000 | | | 8 years from the effective date of the | | | Upon FDA approval | |
| Payment | | | Due Date | | | Event | |
| | | | agreement | | | | |
| Payment | | | Due Date | | | Event | |
| $ 50,000 | | | January 1, 2022 | | | IND application filing | |
| $ 50,000 | | | 12 months from IND application filing date | | | Upon first dosing of patient in first Phase I clinical trial | |
| $ 175,000 | | | 12 months from first patient dosed in Phase I | | | Upon completion of first Phase I clinical trial | |
| $ 500,000 | | | 24 months from completion of first Phase I Trial | | | Upon completion of first Phase II clinical trial | |
| $ 1,000,000 | | | 12 months from completion of the first Phase II clinical trial | | | Upon first patient treated in a Phase III clinical trial | |
| $10,000,000 | | | 7 years from the effective date of the agreement | | | Upon receipt of FDA BLA approval | |
| Payment | | | Due Date | | | Event | |
| $ 30,000 | | | Completed September 2019 | | | Pre-IND meeting | |
| Payment | | | Due Date | | | Event | |
| $ 50,000 | | | December 31, 2022 | | | IND application filing | |
| $ 150,000 | | | 12 months from IND filing date | | | Upon first dosing of patient in a clinical trial | |
| $ 400,000 | | | 12 months from first patient dosing | | | Upon completion of first clinical trial | |
| $1,000,000 | | | 36 months from completion of the first Phase II clinical trial | | | Upon first patient treated in a Phase III clinical trial | |
| $8,000,000 | | | August 1, 2029 | | | First commercial sale | |
| | | As of January 31, 2021 | | |||||||||||||||
| | | Actual | | | Pro Forma | | | Pro Forma As Adjusted | | |||||||||
| | | | | | | | | (unaudited) | | | (unaudited) | | ||||||
Cash | | | | $ | 40,737 | | | | | $ | 40,737 | | | | | $ | 11,350,737 | | |
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; | | | | | | | | | | | | | | | | | | | |
Series A Convertible Preferred Stock, $0.0001 stated value per share, 1,360,000 shares designated; 750,000 shares issued and outstanding as of January 31, 2021 and April 30, 2020, respectively | | | | | 75 | | | | | | — | | | | | | — | | |
Common stock, $0.0001 par value; 300,000,000 shares authorized; 64,762,858 shares issued and outstanding as of January 31, 2021 | | | | | 6,476 | | | | | | 7,976 | | | | | | 8,226 | | |
Additional paid-in capital | | | | | 29,156,400 | | | | | | 29,154,975 | | | | | | 40,464,725 | | |
Note receivable for common stock – related party | | | | | (14,883,295) | | | | | | (14,883,295) | | | | | | (14,883,295) | | |
Accumulated deficit | | | | | (15,575,603) | | | | | | (15,575,603) | | | | | | (15,575,603) | | |
Total stockholders’ equity (deficit) | | | | | (1,295,947) | | | | | | (1,295,947) | | | | | | 10,014,053 | | |
Total capitalization | | | | $ | (1,295,947) | | | | | $ | (1,295,947) | | | | | $ | 10,014,053 | | |
| Assumed initial public offering price per share | | | | | | | | | | $ | 5.00 | | |
| Historical net tangible book value per share as of January 31, 2021 | | | | $ | (0.02) | | | | | | | | |
| Pro forma increase in net tangible book value per share as of January 31, 2021 | | | | | 0.00 | | | | | | | | |
| Pro forma net tangible book value per share as of January 31, 2021 | | | | | (0.02) | | | | | | | | |
| Increase in pro forma, as adjusted net tangible book value per share attributable to new investors purchasing shares in this offering | | | | | 0.14 | | | | | | | | |
| Pro forma, as adjusted net tangible book value per share after this offering | | | | | | | | | | $ | 0.12 | | |
| Dilution per share to new investors purchasing shares in this offering | | | | | | | | | | $ | 4.88 | | |
| | | Number | | | Shares Purchased Percent | | | Total Consideration | | | Weighted- Average Price Per Share | | ||||||||||||||||||
| | | Amount | | | Percent | | ||||||||||||||||||||||||
Existing stockholders | | | | | 79,762,858 | | | | | | 97.0% | | | | | $ | 27,191,345 | | | | | | 68.5% | | | | | $ | 0.34 | | |
New public investors | | | | | 2,500,000 | | | | | | 3.0 | | | | | | 12,500,000 | | | | | | 31.5 | | | | | | 5.00 | | |
Total | | | | | 82,262,858 | | | | | | 100.0% | | | | | $ | 39,691,345 | | | | | | 100.0% | | | | | | | | |
| | | For the Nine Months Ended January 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
| | | (Unaudited) | | |||||||||
OPERATING EXPENSES | | | | ||||||||||
Research and development | | | | $ | 1,018,021 | | | | | $ | 826,642 | | |
General and administrative | | | | | 2,713,891 | | | | | | 2,338,240 | | |
Total operating expenses | | | | | 3,731,912 | | | | | | 3,164,882 | | |
Loss from operations | | | | | (3,731,912) | | | | | | (3,164,882) | | |
OTHER INCOME (EXPENSE), NET | | | | | | | | | | | | | |
Gain on extinguishment of debt | | | | | 62,418 | | | | | | — | | |
Interest expense | | | | | (108,181) | | | | | | — | | |
Interest expense – related party | | | | | (13,765) | | | | | | — | | |
Interest income – related party | | | | | 1,706 | | | | | | 11,436 | | |
Total other income (expense), net | | | | | (57,822) | | | | | | 11,436 | | |
NET LOSS | | | | $ | (3,789,734) | | | | | $ | (3,153,446) | | |
Basic and diluted net loss per common share | | | | $ | (0.05) | | | | | $ | (0.04) | | |
Basic and diluted weighted average common shares outstanding | | | | | 72,262,858 | | | | | | 71,036,787 | | |
| | | For the Nine Months Ended January 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Stock compensation expense | | | | $ | 1,670,058 | | | | | $ | 1,374,531 | | |
Professional fees | | | | | 546,613 | | | | | | 557,895 | | |
Salary and benefits | | | | | 337,690 | | | | | | 313,255 | | |
Other general and administrative expenses | | | | | 159,530 | | | | | | 92,559 | | |
Total general and administrative expenses | | | | $ | 2,713,891 | | | | | $ | 2,338,240 | | |
| | | For the Nine Months Ended January 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Professional fees | | | | $ | 902,582 | | | | | $ | 488,956 | | |
Licenses and fees | | | | | 50,000 | | | | | | 50,000 | | |
Stock compensation expense | | | | | 65,439 | | | | | | 287,686 | | |
Total research and development expenses | | | | $ | 1,018,021 | | | | | $ | 826,642 | | |
| | | For the Year Ended April 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
OPERATING EXPENSES | | | | | | | | | | | | | |
Research and development | | | | $ | 1,069,418 | | | | | $ | 3,700,083 | | |
General and administrative | | | | | 3,354,743 | | | | | | 1,308,800 | | |
Total operating expenses | | | | | 4,424,161 | | | | | | 5,008,883 | | |
Loss from operations | | | | | (4,424,161) | | | | | | (5,008,883) | | |
OTHER INCOME (EXPENSE), NET | | | | | | | | | | | | | |
Interest income – related party | | | | | 13,925 | | | | | | 146,387 | | |
Total other income (expense), net | | | | | 13,925 | | | | | | 146,387 | | |
NET LOSS | | | | $ | (4,410,236) | | | | | $ | (4,862,496) | | |
Basic and diluted net loss per common share | | | | $ | (0.06) | | | | | $ | (0.08) | | |
Basic and diluted weighted average common shares outstanding | | | | | 71,253,580 | | | | | | 58,843,040 | | |
| | | For the Year Ended April 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Stock compensation expense | | | | $ | 1,945,741 | | | | | $ | 396,170 | | |
Professional fees | | | | | 861,348 | | | | | | 545,771 | | |
Salary and benefits | | | | | 427,306 | | | | | | 96,460 | | |
Management services | | | | | — | | | | | | 160,000 | | |
Other general and administrative expenses | | | | | 120,348 | | | | | | 110,399 | | |
Total general and administrative expenses | | | | $ | 3,354,743 | | | | | $ | 1,308,800 | | |
| | | 2020 | | | 2019 | | ||||||
Licenses and fees | | | | $ | 50,487 | | | | | $ | 2,489,600 | | |
Professional fees | | | | | 709,432 | | | | | | 1,142,887 | | |
Stock compensation expense | | | | | 309,499 | | | | | | — | | |
Other research and development expenses | | | | | — | | | | | | 67,596 | | |
Total research and development expenses | | | | $ | 1,069,418 | | | | | $ | 3,700,083 | | |
Payment | | | Due Date | | | Event | | |||
| $ | 50,000 | | | | November 1, 2019 | | | Pre-IND meeting | |
| $ | 65,000 | | | | December 31, 2021 | | | IND application filing | |
| $ | 190,000 | | | | 12 months from IND filing date | | | Upon first dosing of patient in a clinical trial | |
| $ | 500,000 | | | | 12 months from first patient dosing | | | Upon completion of first clinical trial | |
| $ | 1,250,000 | | | | 24 months from completion of the first clinical trial | | | Upon first patient treated in a Phase III clinical trial | |
| $ | 10,000,000 | | | | 8 years from the effective date of the agreement | | | Upon FDA approval | |
Payment | | | Due Date | | | Event | | |||
| $ | 50,000 | | | | January 1, 2022 | | | Upon IND application filing | |
| $ | 50,000 | | | | 12 months from IND application filing date | | | Upon first dosing of patient in first Phase I clinical trial | |
| $ | 175,000 | | | | 12 months from first patient dosed in Phase I | | | Upon completion of first Phase I clinical trial | |
| $ | 500,000 | | | | 24 months from completion of first Phase I clinical trial | | | Upon completion of first Phase II clinical trial | |
| $ | 1,000,000 | | | | 12 months from completion of the first Phase II clinical trial | | | Upon first patient treated in a Phase III clinical trial | |
| $ | 10,000,000 | | | | 7 years from the effective date of the agreement | | | Upon FDA BLA approval | |
Payment | | | Due Date | | | Event | | |||
| $ | 30,000 | | | | Completed September 2019 | | | Pre-IND meeting | |
| $ | 50,000 | | | | December 31, 2022 | | | IND application filing | |
| $ | 150,000 | | | | 12 months from IND filing date | | | Upon first dosing of patient in a clinical trial | |
| $ | 400,000 | | | | 12 months from first patient dosing | | | Upon completion of first clinical trial | |
| $ | 1,000,000 | | | | 36 months from completion of the first Phase II clinical trial | | | Upon first patient treated in a Phase III clinical trial | |
| $ | 8,000,000 | | | | August 1, 2029 | | | First commercial sale | |
Payment | | | Due Date | | | Event | | |||
| $ | 50,000 | | | | January 1, 2022 | | | IND application filing | |
| $ | 50,000 | | | | 12 months from IND application filing date | | | Upon first dosing of patient in first Phase I clinical trial | |
| $ | 175,000 | | | | 12 months from first patient dosed in Phase I | | | Upon completion of first Phase I clinical trial | |
| $ | 500,000 | | | | 24 months from completion of first Phase I trial | | | Upon completion of first Phase II clinical trial | |
| $ | 1,000,000 | | | | 12 months from completion of the first Phase II clinical trial | | | Upon first patient treated in a Phase III clinical trial | |
| $ | 10,000,000 | | | | 7 years from the effective date of the agreement | | | Upon receipt of FDA BLA approval | |
Payment | | | Due Date | | | Event | | |||
| $ | 50,000 | | | | November 1, 2019 | | | Pre-IND meeting | |
| $ | 65,000 | | | | December 31, 2021 | | | IND application filing | |
| $ | 190,000 | | | | 12 months from IND filing date | | | Upon first dosing of patient in a clinical trial | |
| $ | 500,000 | | | | 12 months from first patient dosing | | | Upon completion of first clinical trial | |
| $ | 1,250,000 | | | | 24 months from completion of the first clinical trial | | | Upon first patient treated in a Phase III clinical trial | |
| $ | 10,000,000 | | | | 8 years from the effective date of the agreement | | | Upon FDA approval | |
Payment | | | Due Date | | | Event | | |||
| $ | 30,000 | | | | Completed September 2019 | | | Pre-IND meeting | |
| $ | 50,000 | | | | December 31, 2022 | | | IND application filing | |
| $ | 150,000 | | | | 12 months from IND filing date | | | Upon first dosing of patient in a clinical trial | |
| $ | 400,000 | | | | 12 months from first patient dosing | | | Upon completion of first clinical trial | |
| $ | 1,000,000 | | | | 36 months from completion of the first Phase II clinical trial | | | Upon first patient treated in a Phase III clinical trial | |
| $ | 8,000,000 | | | | August 1, 2029 | | | First commercial sale | |
Name | | | Age | | | Position | |
Milton C. (Todd) Ault III | | | 50 | | | Founder and Executive Chairman of the Board | |
Stephan Jackman | | | 45 | | | Chief Executive Officer and Director | |
Henry C.W. Nisser | | | 52 | | | Executive Vice President, General Counsel and Director | |
Kenneth S. Cragun | | | 60 | | | Senior Vice President of Finance | |
David Katzoff | | | 59 | | | Chief Operating Officer | |
Lien T. Escalona | | | 52 | | | Chief Financial Officer | |
William B. Horne | | | 52 | | | Director | |
Mark Gustafson | | | 61 | | | Director nominee | |
Lynne Fahey McGrath, M.P.H., Ph.D. | | | 66 | | | Director nominee | |
Jeffrey Oram | | | 53 | | | Director nominee | |
Andrew H. Woo, M.D., Ph.D. | | | 58 | | | Director nominee | |
Name and principal position | | | Year | | | Salary ($) | | | Bonus ($) | | | Stock Awards ($) | | | Option Awards ($)(1) | | | All Other Compensation ($) | | | Total ($) | | |||||||||||||||||||||
Stephan Jackman Chief Executive Officer | | | | | 2020 | | | | | | 187,500(2) | | | | | | 12,500 | | | | | | — | | | | | | 1,946,130 | | | | | | — | | | | | | 2,146,130 | | |
| | | 2019 | | | | | | 50,000 | | | | | | — | | | | | | — | | | | | | 3,356,289 | | | | | | — | | | | | | 3,406,289 | | | ||
Kenneth S. Cragun Senior Vice President of Finance | | | | | 2020 | | | | | | 86,667 | | | | | | — | | | | | | — | | | | | | 973,065 | | | | | | — | | | | | | 1,059,723 | | |
| | | 2019 | | | | | | 20,000 | | | | | | — | | | | | | — | | | | | | 1,091,700 | | | | | | — | | | | | | 1,111,700 | | | ||
Henry C.W. Nisser Executive Vice President and General Counsel | | | | | 2020 | | | | | | 50,000 | | | | | | — | | | | | | — | | | | | | 802,366 | | | | | | — | | | | | | 852,366 | | |
| | | 2019 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | OUTSTANDING EQUITY AWARDS AT APRIL 30, 2020 | | | | |||||||||||||||||||||||||
| | | Option Awards | | | | |||||||||||||||||||||||||
Name | | | Number of Securities Underlying Unexercised Options (#) Exercisable | | | Number of Securities Underlying Unexercised Options (#) Unexercisable | | | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) | | | Option Exercise Price ($) | | | Option Expiration Date | | |||||||||||||||
Stephan Jackman | | | | | 0 | | | | | | 1,000,000 | | | | | | 1,000,000 | | | | | $ | 1.00 | | | | | | 11/1/2021 | | |
| | | | | 0 | | | | | | 1,000,000 | | | | | | 1,000,000 | | | | | $ | 1.00 | | | | | | 11/1/2022 | | |
| | | | | 1,062,500 | | | | | | 1,937,500 | | | | | | 0 | | | | | $ | 1.00 | | | | | | 11/16/2028 | | |
| | | | | 0 | | | | | | 2,000,000 | | | | | | 2,000,000 | | | | | $ | 1.50 | | | | | | 11/18/2029 | | |
Kenneth S. Cragun | | | | | 500,000 | | | | | | 1,000,000 | | | | | | 0 | | | | | $ | 1.00 | | | | | | 12/15/2028 | | |
| | | | | 0 | | | | | | 1,000,000 | | | | | | 1,000,000 | | | | | $ | 1.50 | | | | | | 11/18/2029 | | |
Henry C.W. Nisser | | | | | 286,462 | | | | | | 963,538 | | | | | | 0 | | | | | $ | 1.00 | | | | | | 5/1/2029 | | |
| | | Shares Beneficially Owned Before the Offering | | | Shares Beneficially Owned After the Offering | | ||||||||||||||||||
Name of Beneficial Owner | | | Shares | | | Percentage | | | Shares | | | Percentage | | ||||||||||||
5% Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | |
Ault Life Sciences, Inc.(1) | | | | | 15,000,000 | | | | | | 18.2% | | | | | | 15,000,000 | | | | | | 17.7% | | |
Ault Life Sciences Fund, LLC(2) | | | | | 15,000,000 | | | | | | 17.2% | | | | | | 15,000,000 | | | | | | 16.7% | | |
Congregation Chazon Avrohom(3) | | | | | 5,902,735 | | | | | | 7.2% | | | | | | 5,902,735 | | | | | | 7.0% | | |
Spartan Capital Securities, LLC(4) | | | | | 5,338,272 | | | | | | 6.5% | | | | | | 5,373,272 | | | | | | 6.3% | | |
Digital Power Lending, LLC(5) | | | | | 4,444,555 | | | | | | 5.3% | | | | | | 6,444,555 | | | | | | 7.5% | | |
University of South Florida Research Foundation(6) | | | | | 4,208,920 | | | | | | 5.1% | | | | | | 4,208,920 | | | | | | 5.0% | | |
Directors and Executive Officers: | | | | | | | | | | | | | | | | | | | | | | | | | |
Milton C. (Todd) Ault III(1) (2) (5) (7) | | | | | 36,944,555 | | | | | | 40.5% | | | | | | 38,944,555 | | | | | | 41.5% | | |
Stephan Jackman(8) | | | | | 2,000,000 | | | | | | 2.4% | | | | | | 2,000,000 | | | | | | 2.3% | | |
Henry C.W. Nisser(8) | | | | | 677,083 | | | | | | * | | | | | | 677,083 | | | | | | * | | |
Kenneth S. Cragun(8) | | | | | 968,750 | | | | | | 1.2% | | | | | | 968,750 | | | | | | 1.1% | | |
David Katzoff(9) | | | | | 730,125 | | | | | | * | | | | | | 730,125 | | | | | | * | | |
Lien T. Escalona | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
William B. Horne(8) | | | | | 2,631,944 | | | | | | 3.1% | | | | | | 2,631,944 | | | | | | 3.0% | | |
Mark Gustafson | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Lynne Fahey McGrath, M.P.H., Ph.D. | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Jeffrey Oram | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Andrew H. Woo, M.D., Ph.D. | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
All directors, director nominees and executive officers as a group (11 persons) | | | | | 43,952,457 | | | | | | 44.7% | | | | | | 45,952,457 | | | | | | 45.6% | | |
Underwriter | | | Number of Shares | | |||
Spartan Capital Securities, LLC | | | | | | | |
Total | | | | | 2,500,000 | | |
| | | | | | | | | Total | | |||||||||
| | | Per Share | | | No Exercise | | | Full Exercise | | |||||||||
Public offering price | | | | $ | | | | | $ | | | | | $ | | | |||
Underwriting discount to be paid by us(1) | | | | $ | | | | | $ | | | | | $ | | | |||
Total | | | | $ | | | | | $ | | | | | $ | | | |||
Proceeds, before expenses, to us | | | | $ | | | | | $ | | | | | $ | | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | |
| | | | | F-25 | | | |
| | | | | F-26 | | | |
| | | | | F-27 | | | |
| | | | | F-28 | | | |
| | | | | F-29 | | | |
| | | | | F-30 | | |
| | | January 31, 2021 | | | April 30, 2020 | | ||||||
| | | (unaudited) | | | | | | | | |||
ASSETS | | | | | | | | | | | | | |
CURRENT ASSETS | | | | | | | | | | | | | |
Cash | | | | $ | 40,737 | | | | | $ | 90,285 | | |
Note receivable, related party, net | | | | | — | | | | | | 100,915 | | |
Prepaid expenses and other current assets | | | | | 761,270 | | | | | | 1,622,815 | | |
TOTAL CURRENT ASSETS | | | | | 802,007 | | | | | | 1,814,015 | | |
TOTAL ASSETS | | | | $ | 802,007 | | | | | $ | 1,814,015 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | | | | | | |
Accounts payable and accrued liabilities | | | | $ | 877,019 | | | | | $ | 929,639 | | |
Related party payable | | | | | 64,343 | | | | | | 62,667 | | |
Short-term advances, related party | | | | | 800,000 | | | | | | — | | |
Convertible notes, net | | | | | 308,804 | | | | | | — | | |
Convertible notes, related party, net | | | | | 47,788 | | | | | | — | | |
TOTAL CURRENT LIABILITIES | | | | | 2,097,954 | | | | | | 992,306 | | |
TOTAL LIABILITIES | | | | $ | 2,097,954 | | | | | $ | 992,306 | | |
COMMITMENTS AND CONTINGENCIES | | | | | | | | | | | | | |
STOCKHOLDERS’ EQUITY (DEFICIT) | | | | | | | | | | | | | |
Convertible Preferred stock, $0.0001 par value: 10,000,000 shares authorized; Series A Convertible Preferred Stock, $0.0001 stated value per share, 1,360,000 shares designated; 750,000 shares issued and outstanding as of January 31, 2021 and April 30, 2020, respectively | | | | | 75 | | | | | | 75 | | |
Common stock, $0.0001 par value: 300,000,000 shares authorized; 64,762,858 shares issued and outstanding as of January 31, 2021 and April 30, 2020 | | | | | 6,476 | | | | | | 6,476 | | |
Additional paid-in capital | | | | | 29,156,400 | | | | | | 27,584,227 | | |
Note receivable for common stock – related party | | | | | (14,883,295) | | | | | | (14,983,200) | | |
Accumulated deficit | | | | | (15,575,603) | | | | | | (11,785,869) | | |
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) | | | | | (1,295,947) | | | | | | 821,709 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | | | | $ | 802,007 | | | | | $ | 1,814,015 | | |
| | | For the Nine Months Ended January 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
OPERATING EXPENSES | | | | | | | | | | | | | |
Research and development | | | | $ | 1,018,021 | | | | | $ | 826,642 | | |
General and administrative | | | | | 2,713,891 | | | | | | 2,338,240 | | |
Total operating expenses | | | | | 3,731,912 | | | | | | 3,164,882 | | |
Loss from operations | | | | | (3,731,912) | | | | | | (3,164,882) | | |
OTHER INCOME (EXPENSE), NET | | | | | | | | | | | | | |
Gain on extinguishment of debt | | | | | 62,418 | | | | | | — | | |
Interest expense | | | | | (108,181) | | | | | | — | | |
Interest expense – related party | | | | | (13,765) | | | | | | — | | |
Interest income – related party | | | | | 1,706 | | | | | | 11,436 | | |
Total other income (expense), net | | | | | (57,822) | | | | | | 11,436 | | |
NET LOSS | | | | $ | (3,789,734) | | | | | $ | (3,153,446) | | |
Basic and diluted net loss per common share | | | | $ | (0.05) | | | | | $ | (0.04) | | |
Basic and diluted weighted average common shares outstanding | | | | | 72,262,858 | | | | | | 71,036,787 | | |
| | | For the Nine Months Ended January 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss | | | | $ | (3,789,734) | | | | | $ | (3,153,446) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Interest expense – debt discount | | | | | 97,446 | | | | | | — | | |
Interest expense – debt discount, related party | | | | | 12,088 | | | | | | — | | |
Gain on extinguishment of debt | | | | | (62,418) | | | | | | — | | |
Stock-based compensation to employees and consultants | | | | | 1,735,497 | | | | | | 1,662,217 | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Prepaid expenses and other current assets | | | | | 605,279 | | | | | | (142,651) | | |
Accounts payable and accrued expenses | | | | | (52,312) | | | | | | (497,831) | | |
Related party payable | | | | | — | | | | | | (16,666) | | |
Net cash used in operating activities | | | | | (1,454,154) | | | | | | (2,148,437) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Proceeds from repayments of notes receivable – related party | | | | | 100,915 | | | | | | 105,000 | | |
Net cash provided by investing activities | | | | | 100,915 | | | | | | 105,000 | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from the issuance of common stock and warrants, net | | | | | — | | | | | | 2,288,395 | | |
Advances from related party payable | | | | | 1,676 | | | | | | — | | |
Proceeds from short-term advances, related party | | | | | 800,000 | | | | | | — | | |
Proceeds from note payable | | | | | 62,110 | | | | | | — | | |
Proceeds from note receivable for common stock – related party | | | | | 99,905 | | | | | | 6,000 | | |
Proceeds from convertible note payable | | | | | 290,000 | | | | | | — | | |
Proceeds from convertible note payable, related party | | | | | 50,000 | | | | | | — | | |
Net cash provided by financing activities | | | | | 1,303,691 | | | | | | 2,294,395 | | |
Net (decrease) increase in cash | | | | | (49,548) | | | | | | 250,958 | | |
Cash at beginning of period | | | | | 90,285 | | | | | | 42,606 | | |
Cash at end of period | | | | $ | 40,737 | | | | | $ | 293,564 | | |
Supplemental disclosures of cash flow information: | | | | | | | | | | | | | |
Non-cash financing activities: | | | | | | | | | | | | | |
Issuance of common stock for prepaid consulting services | | | | $ | — | | | | | $ | 683,379 | | |
Fair value of warrants issued in connection with convertible notes payable | | | | $ | 78,642 | | | | | $ | — | | |
Fair value of warrants issued in connection with convertible notes payable, related party | | | | $ | 14,300 | | | | | $ | — | | |
| | | Series A Convertible Preferred Stock | | | Common Stock | | | Additional Paid-In Capital | | | Note Receivable for Common Stock – Related Party | | | Accumulated Deficit | | | Total | | | | | ||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | | ||||||||||||||||||||||||||||||||||||||
BALANCES, April 30, 2020 | | | | | 750,000 | | | | | $ | 75 | | | | | | 64,762,858 | | | | | $ | 6,476 | | | | | $ | 27,584,227 | | | | | $ | (14,983,200) | | | | | $ | (11,785,869) | | | | | $ | 821,709 | | | | ||
Stock-based compensation to employees and consultants | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,479,231 | | | | | | — | | | | | | — | | | | | | 1,479,231 | | | | ||
Proceeds from note receivable – related party for common stock | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 99,905 | | | | | | — | | | | | | 99,905 | | | | ||
Fair value of warrants issued in connection with convertible notes | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 78,642 | | | | | | — | | | | | | — | | | | | | 78,642 | | | | ||
Fair value of warrants issued in connection with convertible notes – related party | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 14,300 | | | | | | — | | | | | | — | | | | | | 14,300 | | | | ||
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,789,734) | | | | | | (3,789,734) | | | | ||
BALANCES, January 31, 2021 | | | | | 750,000 | | | | | $ | 75 | | | | | | 64,762,858 | | | | | $ | 6,476 | | | | | $ | 29,156,400 | | | | | $ | (14,883,295) | | | | | $ | (15,575,603) | | | | | $ | (1,295,947) | | | |
| | | Series A Convertible Preferred Stock | | | Common Stock | | | Additional Paid-In Capital | | | Note Receivable for Common Stock – Related Party | | | Accumulated Deficit | | | Total | | | | | ||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | | ||||||||||||||||||||||||||||||||||||||
BALANCES, April 30, 2019 | | | | | 750,000 | | | | | $ | 75 | | | | | | 61,878,465 | | | | | $ | 6,188 | | | | | $ | 22,686,285 | | | | | $ | (15,000,000) | | | | | $ | (7,375,633) | | | | | $ | 316,915 | | | | ||
Issuance of common stock | | | | | — | | | | | | — | | | | | | 2,284,393 | | | | | | 228 | | | | | | 2,288,107 | | | | | | — | | | | | | — | | | | | | 2,288,335 | | | | ||
Stock-based compensation to employees and consultants | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,293,915 | | | | | | — | | | | | | — | | | | | | 1,293,915 | | | | ||
Proceeds from note receivable – related party for common stock | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,000 | | | | | | — | | | | | | 6,000 | | | | ||
Issuance of common stock for services | | | | | — | | | | | | — | | | | | | 600,000 | | | | | | 60 | | | | | | 808,319 | | | | | | — | | | | | | — | | | | | | 808,379 | | | | ||
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,153,446) | | | | | | (3,153,446) | | | | ||
BALANCES, January 31, 2020 | | | | | 750,000 | | | | | $ | 75 | | | | | | 64,762,858 | | | | | $ | 6,476 | | | | | $ | 27,076,626 | | | | | $ | (14,994,000) | | | | | $ | (10,529,079) | | | | | $ | 1,560,098 | | | |
| | | For the Nine Months Ended January 31, | | | | | |||||||||
| | | 2021 | | | 2020 | | | ||||||||
Series A convertible preferred stock | | | | | 15,000,000 | | | | | | 15,000,000 | | | | ||
Stock options(1) | | | | | 16,300,000 | | | | | | 16,175,000 | | | | ||
Warrants | | | | | 6,769,635 | | | | | | 6,652,035 | | | | ||
Convertible notes | | | | | 245,999 | | | | | | — | | | | ||
| | | | | 38,315,634 | | | | | | 37,827,035 | | | |
| | | January 31, 2021 | | | April 30, 2020 | | ||||||
Prepaid consulting fees | | | | $ | 744,210 | | | | | $ | 1,513,602 | | |
Interest receivable | | | | | — | | | | | | 77,153 | | |
Other prepaid expenses | | | | | 850 | | | | | | 15,850 | | |
Other receivables | | | | | 16,210 | | | | | | 16,210 | | |
Total prepaid expenses and other current assets | | | | $ | 761,270 | | | | | $ | 1,622,815 | | |
| | | | | | | | | Outstanding Options | | | |||||||||||||||||||||||
| | | Shares Available for Grant | | | Number of Options | | | Weighted Average Exercise Price | | | Weighted Average Remaining Contractual Life (years) | | | Aggregate Intrinsic Value | | | |||||||||||||||||
Balance at April 30, 2020 | | | | | 575,000 | | | | | | 19,425,000 | | | | | $ | 0.5228 | | | | | | 6.89 | | | | | $ | 15,609,500 | | | | ||
Options granted | | | | | (125,000) | | | | | | 125,000 | | | | | $ | 1.5000 | | | | | | | | | | | | | | | | ||
Balance at January 31, 2021 | | | | | 450,000 | | | | | | 19,550,000 | | | | | $ | 0.7015 | | | | | | 6.16 | | | | | $ | 15,609,500 | | | | ||
Options vested and expected to vest at January 31, 2021 | | | | | | | | | | | 17,550,000 | | | | | $ | 0.6675 | | | | | | 6.72 | | | | | $ | 14,609,500 | | | | | |
Options exercisable at January 31, 2021 | | | | | | | | | | | 12,352,030 | | | | | $ | 0.4399 | | | | | | 6.14 | | | | | $ | 13,093,857 | | | |
| | | | | | | | | Outstanding Options | | | |||||||||||||||||||||||
| | | Shares Available for Grant | | | Number of Options | | | Weighted Average Exercise Price | | | Weighted Average Remaining Contractual Life (years) | | | Aggregate Intrinsic Value | | | |||||||||||||||||
Balance at April 30, 2019 | | | | | 4,290,000 | | | | | | 15,710,000 | | | | | $ | 0.5228 | | | | | | 6.89 | | | | | $ | 15,352,000 | | | | ||
Options granted | | | | | (1,800,000) | | | | | | 1,800,000 | | | | | $ | 1.5000 | | | | | | | | | | | | | | | | ||
Options cancelled | | | | | 35,000 | | | | | | (35,000) | | | | | $ | 1.0000 | | | | | | | | | | | | | | | | ||
Balance at January 31, 2020 | | | | | 2,525,000 | | | | | | 17,475,000 | | | | | $ | 0.6964 | | | | | | 6.72 | | | | | $ | 15,609,500 | | | | ||
Options vested and expected to vest at January 31, 2020 | | | | | | | | | | | 15,475,000 | | | | | $ | 0.6616 | | | | | | 7.70 | | | | | $ | 14,609,500 | | | | | |
Options exercisable at January 31, 2020 | | | | | | | | | | | 9,191,134 | | | | | $ | 0.2491 | | | | | | 6.72 | | | | | $ | 12,240,741 | | | |
| | | For the Nine Months Ended January 31, | | | | | |||||||||
| | | 2021 | | | 2020 | | | ||||||||
Expected term (in years) | | | | | 6.25 | | | | | | 5.21 | | | | ||
Volatility | | | | | 100.1% | | | | | | 71.0% | | | | ||
Risk-free interest rate | | | | | 0.51% | | | | | | 1.78% | | | | ||
Dividend yield | | | | | 0.0% | | | | | | 0.0% | | | |
| | | For the Nine Months Ended January 31, | | | | | |||||||||
| | | 2021 | | | 2020 | | | ||||||||
Research and development | | | | $ | 65,439 | | | | | $ | 287,686 | | | | ||
General and administrative | | | | | 1,670,058 | | | | | | 1,374,531 | | | | ||
Total | | | | $ | 1,735,497 | | | | | $ | 1,662,217 | | | |
| Outstanding | | | Exercisable | | |||||||||||||||||||||||||||
| Exercise Price | | | Number Outstanding | | | Weighted Average Remaining Contractual Life (years) | | | Weighted Average Exercise Price | | | Number Exercisable | | | Weighted Average Exercise Price | | |||||||||||||||
| $1.00 | | | | | 500,000 | | | | | | 3.1 | | | | | $ | 1.00 | | | | | | 183,333 | | | | | $ | 1.00 | | |
| $1.75 | | | | | 175,772 | | | | | | 3.8 | | | | | $ | 1.75 | | | | | | 43,943 | | | | | $ | 1.75 | | |
| $3.00 | | | | | 6,093,683 | | | | | | 3.2 | | | | | $ | 3.00 | | | | | | 2,034,587 | | | | | $ | 3.00 | | |
| $1.00 – $3.00 | | | | | 6,769,635 | | | | | | 3.5 | | | | | $ | 2.82 | | | | | | 2,261,863 | | | | | $ | 2.81 | | |
| | | For the Nine Months Ended January 31, | | | | | |||
| | | 2021 | | | 2020 | | | ||
Common stock price | | | $1.50 | | | $1.00 – $1.50 | | | ||
Expected term (in years) | | | 5.00 | | | 2.50 | | | ||
Volatility | | | 103.70% | | | 69.35% | | | ||
Risk-free interest rate | | | 0.27% – 0.28% | | | 2.53% | | | ||
Dividend yield | | | 0.00% | | | 0.00% | | |
| | | April 30, 2020 | | | April 30, 2019 | | ||||||
ASSETS | | | | | | | | | | | | | |
CURRENT ASSETS | | | | | | | | | | | | | |
Cash | | | | $ | 90,285 | | | | | $ | 42,606 | | |
Note receivable, related party, net | | | | | 100,915 | | | | | | 205,915 | | |
Prepaid expenses and other current assets | | | | | 1,622,815 | | | | | | 1,252,396 | | |
TOTAL CURRENT ASSETS | | | | | 1,814,015 | | | | | | 1,500,917 | | |
TOTAL ASSETS | | | | $ | 1,814,015 | | | | | $ | 1,500,917 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | | | | | | |
Accounts payable and accrued liabilities | | | | $ | 929,639 | | | | | $ | 1,104,669 | | |
Related party payable | | | | | 62,667 | | | | | | 79,333 | | |
TOTAL CURRENT LIABILITIES | | | | | 992,306 | | | | | | 1,184,002 | | |
COMMITMENTS AND CONTINGENCIES (Note 13) | | | | | | | | | | | | | |
STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Convertible Preferred stock, $0.0001 par value: 10,000,000 shares authorized; Series A Convertible Preferred Stock, $0.0001 stated value per share, 1,360,000 shares | | | | | 75 | | | | | | 75 | | |
Common stock, $0.0001 par value: 300,000,000 shares authorized; 64,762,858 and 61,878,465 shares issued and outstanding as of April 30, 2020 and 2019, respectively | | | | | 6,476 | | | | | | 6,188 | | |
Additional paid-in capital | | | | | 27,584,227 | | | | | | 22,686,285 | | |
Note receivable for common stock – related party | | | | | (14,983,200) | | | | | | (15,000,000) | | |
Accumulated deficit | | | | | (11,785,869) | | | | | | (7,375,633) | | |
TOTAL STOCKHOLDERS’ EQUITY | | | | | 821,709 | | | | | | 316,915 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | $ | 1,814,015 | | | | | $ | 1,500,917 | | |
| | | For the Year Ended April 30, | | | | | |||||||||
| | | 2020 | | | 2019 | | | ||||||||
OPERATING EXPENSES | | | | | | | | | | | | | | | ||
Research and development | | | | $ | 1,069,418 | | | | | $ | 3,700,083 | | | | ||
General and administrative | | | | | 3,354,743 | | | | | | 1,308,800 | | | | ||
Total operating expenses | | | | | 4,424,161 | | | | | | 5,008,883 | | | | ||
Loss from operations | | | | | (4,424,161) | | | | | | (5,008,883) | | | | ||
OTHER INCOME (EXPENSE), NET | | | | | | | | | | | | | | | ||
Interest income – related party | | | | | 13,925 | | | | | | 146,387 | | | | ||
Total other income (expense), net | | | | | 13,925 | | | | | | 146,387 | | | | ||
NET LOSS | | | | $ | (4,410,236) | | | | | $ | (4,862,496) | | | | ||
Basic and diluted net loss per common share | | | | $ | (0.06) | | | | | $ | (0.08) | | | | ||
Basic and diluted weighted average common shares outstanding | | | | | 71,253,580 | | | | | | 58,843,040 | | | |
| | | For the Nine Months Ended January 31, | | | | | |||||||||
| | | 2021 | | | 2020 | | | ||||||||
Series A convertible preferred stock | | | | | 15,000,000 | | | | | | 15,000,000 | | | | ||
Stock options(1) | | | | | 16,300,000 | | | | | | 16,175,000 | | | | ||
Warrants | | | | | 6,769,635 | | | | | | 6,652,035 | | | | ||
Convertible notes | | | | | 245,999 | | | | | | — | | | | ||
| | | | | 38,315,634 | | | | | | 37,827,035 | | | |
| | | January 31, 2021 | | | April 30, 2020 | | ||||||
Prepaid consulting fees | | | | $ | 744,210 | | | | | $ | 1,513,602 | | |
Interest receivable | | | | | — | | | | | | 77,153 | | |
Other prepaid expenses | | | | | 850 | | | | | | 15,850 | | |
Other receivables | | | | | 16,210 | | | | | | 16,210 | | |
Total prepaid expenses and other current assets | | | | $ | 761,270 | | | | | $ | 1,622,815 | | |
| | | | | | | | | Outstanding Options | | | |||||||||||||||||||||||
| | | Shares Available for Grant | | | Number of Options | | | Weighted Average Exercise Price | | | Weighted Average Remaining Contractual Life (years) | | | Aggregate Intrinsic Value | | | |||||||||||||||||
Balance at April 30, 2020 | | | | | 575,000 | | | | | | 19,425,000 | | | | | $ | 0.5228 | | | | | | 6.89 | | | | | $ | 15,609,500 | | | | ||
Options granted | | | | | (125,000) | | | | | | 125,000 | | | | | $ | 1.5000 | | | | | | | | | | | | | | | | ||
Balance at January 31, 2021 | | | | | 450,000 | | | | | | 19,550,000 | | | | | $ | 0.7015 | | | | | | 6.16 | | | | | $ | 15,609,500 | | | | ||
Options vested and expected to vest at January 31, 2021 | | | | | | | | | | | 17,550,000 | | | | | $ | 0.6675 | | | | | | 6.72 | | | | | $ | 14,609,500 | | | | | |
Options exercisable at January 31, 2021 | | | | | | | | | | | 12,352,030 | | | | | $ | 0.4399 | | | | | | 6.14 | | | | | $ | 13,093,857 | | | |
| | | | | | | | | Outstanding Options | | | |||||||||||||||||||||||
| | | Shares Available for Grant | | | Number of Options | | | Weighted Average Exercise Price | | | Weighted Average Remaining Contractual Life (years) | | | Aggregate Intrinsic Value | | | |||||||||||||||||
Balance at April 30, 2019 | | | | | 4,290,000 | | | | | | 15,710,000 | | | | | $ | 0.5228 | | | | | | 6.89 | | | | | $ | 15,352,000 | | | | ||
Options granted | | | | | (1,800,000) | | | | | | 1,800,000 | | | | | $ | 1.5000 | | | | | | | | | | | | | | | | ||
Options cancelled | | | | | 35,000 | | | | | | (35,000) | | | | | $ | 1.0000 | | | | | | | | | | | | | | | | ||
Balance at January 31, 2020 | | | | | 2,525,000 | | | | | | 17,475,000 | | | | | $ | 0.6964 | | | | | | 6.72 | | | | | $ | 15,609,500 | | | | ||
Options vested and expected to vest at January 31, 2020 | | | | | | | | | | | 15,475,000 | | | | | $ | 0.6616 | | | | | | 7.70 | | | | | $ | 14,609,500 | | | | | |
Options exercisable at January 31, 2020 | | | | | | | | | | | 9,191,134 | | | | | $ | 0.2491 | | | | | | 6.72 | | | | | $ | 12,240,741 | | | |
| | | For the Nine Months Ended January 31, | | | | | |||||||||
| | | 2021 | | | 2020 | | | ||||||||
Expected term (in years) | | | | | 6.25 | | | | | | 5.21 | | | | ||
Volatility | | | | | 100.1% | | | | | | 71.0% | | | | ||
Risk-free interest rate | | | | | 0.51% | | | | | | 1.78% | | | | ||
Dividend yield | | | | | 0.0% | | | | | | 0.0% | | | |
| | | For the Nine Months Ended January 31, | | | | | |||||||||
| | | 2021 | | | 2020 | | | ||||||||
Research and development | | | | $ | 65,439 | | | | | $ | 287,686 | | | | ||
General and administrative | | | | | 1,670,058 | | | | | | 1,374,531 | | | | ||
Total | | | | $ | 1,735,497 | | | | | $ | 1,662,217 | | | |
| Outstanding | | | Exercisable | | |||||||||||||||||||||||||||
| Exercise Price | | | Number Outstanding | | | Weighted Average Remaining Contractual Life (years) | | | Weighted Average Exercise Price | | | Number Exercisable | | | Weighted Average Exercise Price | | |||||||||||||||
| $1.00 | | | | | 500,000 | | | | | | 3.1 | | | | | $ | 1.00 | | | | | | 183,333 | | | | | $ | 1.00 | | |
| $1.75 | | | | | 175,772 | | | | | | 3.8 | | | | | $ | 1.75 | | | | | | 43,943 | | | | | $ | 1.75 | | |
| $3.00 | | | | | 6,093,683 | | | | | | 3.2 | | | | | $ | 3.00 | | | | | | 2,034,587 | | | | | $ | 3.00 | | |
| $1.00 – $3.00 | | | | | 6,769,635 | | | | | | 3.5 | | | | | $ | 2.82 | | | | | | 2,261,863 | | | | | $ | 2.81 | | |
| | | For the Nine Months Ended January 31, | | | | | |||
| | | 2021 | | | 2020 | | | ||
Common stock price | | | $1.50 | | | $1.00 – $1.50 | | | ||
Expected term (in years) | | | 5.00 | | | 2.50 | | | ||
Volatility | | | 103.70% | | | 69.35% | | | ||
Risk-free interest rate | | | 0.27% – 0.28% | | | 2.53% | | | ||
Dividend yield | | | 0.00% | | | 0.00% | | |
| | | For the Year Ended April 30, | | | | | |||||||||
| | | 2020 | | | 2019 | | | ||||||||
Cash flows from operating activities: | | | | | | | | | | | | | | | ||
Net loss | | | | $ | (4,410,236) | | | | | $ | (4,862,496) | | | | ||
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | | | ||
Accretion of original issue discount on notes receivable – related party | | | | | — | | | | | | (36,667) | | | | ||
Issuance of common stock for license fees | | | | | — | | | | | | 2,227,923 | | | | ||
Stock-based compensation to employees and consultants | | | | | 1,801,516 | | | | | | 396,170 | | | | ||
Non-cash consulting expense from issuance of common stock | | | | | 562,277 | | | | | | — | | | | ||
Changes in operating assets and liabilities: | | | | | | | | | | | | | | | ||
Prepaid expenses and other current assets | | | | | (124,317) | | | | | | 215,289 | | | | ||
Accounts payable and accrued expenses | | | | | (175,030) | | | | | | 1,014,581 | | | | ||
Net cash used in operating activities | | | | | (2,345,790) | | | | | | (1,045,200) | | | | ||
Cash flows from investing activities: | | | | | | | | | | | | | | | ||
Loans to related party | | | | | — | | | | | | (558,000) | | | | ||
Proceeds from repayments of notes receivable – related party | | | | | 105,000 | | | | | | 792,085 | | | | ||
Net cash provided by investing activities | | | | | 105,000 | | | | | | 234,085 | | | | ||
Cash flows from financing activities: | | | | | | | | | | | | | | | ||
Proceeds for issuance of common stock and warrants, net | | | | | 2,288,335 | | | | | | 236,023 | | | | ||
Advances from related party payable | | | | | (16,666) | | | | | | 72,697 | | | | ||
Proceeds from note receivable for common stock – related party | | | | | 16,800 | | | | | | — | | | | ||
Net cash provided by financing activities | | | | | 2,288,469 | | | | | | 308,720 | | | | ||
Net increase (decrease) in cash | | | | | 47,679 | | | | | | (502,395) | | | | ||
Cash at beginning of period | | | | | 42,606 | | | | | | 545,001 | | | | ||
Cash at end of period | | | | $ | 90,285 | | | | | $ | 42,606 | | | | ||
Supplemental disclosures of cash flow information: | | | | | | | | | | | | | | | ||
Non-cash financing activities: | | | | | | | | | | | | | | | ||
Issuance of common stock for note receivable – related party | | | | $ | — | | | | | $ | 15,000,000 | | | | ||
Issuance of common stock for prepaid consulting services | | | | $ | 683,379 | | | | | $ | — | | | |
| | | April 30, 2020 | | | April 30, 2019 | | ||||||
ASSETS | | | | | | | | | | | | | |
CURRENT ASSETS | | | | | | | | | | | | | |
Cash | | | | $ | 90,285 | | | | | $ | 42,606 | | |
Note receivable, related party, net | | | | | 100,915 | | | | | | 205,915 | | |
Prepaid expenses and other current assets | | | | | 1,622,815 | | | | | | 1,252,396 | | |
TOTAL CURRENT ASSETS | | | | | 1,814,015 | | | | | | 1,500,917 | | |
TOTAL ASSETS | | | | $ | 1,814,015 | | | | | $ | 1,500,917 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | | | | | | |
Accounts payable and accrued liabilities | | | | $ | 929,639 | | | | | $ | 1,104,669 | | |
Related party payable | | | | | 62,667 | | | | | | 79,333 | | |
TOTAL CURRENT LIABILITIES | | | | | 992,306 | | | | | | 1,184,002 | | |
COMMITMENTS AND CONTINGENCIES (Note 13) | | | | | | | | | | | | | |
STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Convertible Preferred stock, $0.0001 par value: 10,000,000 shares authorized; Series A Convertible Preferred Stock, $0.0001 stated value per share, 1,360,000 shares | | | | | 75 | | | | | | 75 | | |
Common stock, $0.0001 par value: 300,000,000 shares authorized; 64,762,858 and 61,878,465 shares issued and outstanding as of April 30, 2020 and 2019, respectively | | | | | 6,476 | | | | | | 6,188 | | |
Additional paid-in capital | | | | | 27,584,227 | | | | | | 22,686,285 | | |
Note receivable for common stock – related party | | | | | (14,983,200) | | | | | | (15,000,000) | | |
Accumulated deficit | | | | | (11,785,869) | | | | | | (7,375,633) | | |
TOTAL STOCKHOLDERS’ EQUITY | | | | | 821,709 | | | | | | 316,915 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | $ | 1,814,015 | | | | | $ | 1,500,917 | | |
| | | Series A Convertible Preferred Stock | | | Common Stock | | | Additional Paid-In Capital | | | Note Receivable for Common Stock-Related Party | | | Accumulated Deficit | | | ||||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | | Total | | |||||||||||||||||||||||||||||||||
BALANCES, April 30, 2018 | | | | | 750,000 | | | | | $ | 75 | | | | | | 49,493,196 | | | | | $ | 4,949 | | | | | $ | 4,827,408 | | | | | $ | — | | | | | $ | (2,513,137) | | | | | $ | 2,319,295 | | |
Issuance of common stock and warrants | | | | | — | | | | | | — | | | | | | 157,346 | | | | | | 16 | | | | | | 236,007 | | | | | | — | | | | | | — | | | | | | 236,023 | | |
Issuance of common stock to related party | | | | | — | | | | | | — | | | | | | 10,000,000 | | | | | | 1,000 | | | | | | 14,999,000 | | | | | | (15,000,000) | | | | | | — | | | | | | — | | |
Stock-based compensation to employees and consultants | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 396,170 | | | | | | — | | | | | | — | | | | | | 396,170 | | |
Issuance of common stock for license fees | | | | | — | | | | | | — | | | | | | 2,227,923 | | | | | | 223 | | | | | | 2,227,700 | | | | | | — | | | | | | — | | | | | | 2,227,923 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,862,496) | | | | | | (4,862,496) | | |
BALANCES, April 30, 2019 | | | | | 750,000 | | | | | | 75 | | | | | | 61,878,465 | | | | | | 6,188 | | | | | | 22,686,285 | | | | | | (15,000,000) | | | | | | (7,375,633) | | | | | | 316,915 | | |
Issuance of common stock and warrants, net | | | | | — | | | | | | — | | | | | | 2,284,393 | | | | | | 228 | | | | | | 2,288,107 | | | | | | — | | | | | | — | | | | | | 2,288,335 | | |
Stock-based compensation to employees and consultants | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,801,516 | | | | | | — | | | | | | — | | | | | | 1,801,516 | | |
Proceeds from note receivable – related party for common stock | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 16,800 | | | | | | — | | | | | | 16,800 | | |
Issuance of common stock for services | | | | | — | | | | | | — | | | | | | 600,000 | | | | | | 60 | | | | | | 808,319 | | | | | | — | | | | | | — | | | | | | 808,379 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,410,236) | | | | | | (4,410,236) | | |
BALANCES, April 30, 2020 | | | | | 750,000 | | | | | $ | 75 | | | | | | 64,762,858 | | | | | $ | 6,476 | | | | | $ | 27,584,227 | | | | | $ | (14,983,200) | | | | | $ | (11,785,869) | | | | | $ | 821,709 | | |
| | For the Year Ended April 30, | | | For the Nine Months Ended January 31, | | | | |||||||||||||||||||||
| | 2020 | | 2019 | | | 2021 | | 2020 | | | ||||||||||||||||||
Series A convertible preferred stock | | | | 15,000,000 | | | | | 15,000,000 | | | | | | 15,000,000 | | | | | 15,000,000 | | | | ||||||
Stock options(1) | | | | 16,175,000 | | | | | 8,210,000 | | | | | | 16,300,000 | | | | | 16,175,000 | | | | ||||||
Warrants | | | | 6,652,135 | | | | | 5,584,172 | | | | | | 6,769,635 | | | | | 6,652,035 | | | | ||||||
Convertible notes | | | | 245,999 | | | | | — | | | | |||||||||||||||||
| | | | 37,827,135 | | | | | 28,794,172 | | | | | | 38,315,634 | | | | | 37,827,035 | | | |
| | April 30, 2020 | | April 30, 2019 | | | January 31, 2021 | | April 30, 2020 | | ||||||||||||||||
Prepaid consulting fees | | | $ | 1,513,602 | | | | $ | 1,151,667 | | | | | $ | 744,210 | | | | $ | 1,513,602 | | | ||||
Interest receivable | | | | 77,153 | | | | | 63,229 | | | | | | — | | | | | 77,153 | | | ||||
Other prepaid expenses | | | | 15,850 | | | | | 21,290 | | | | | | 850 | | | | | 15,850 | | | ||||
Other receivables | | | | 16,210 | | | | | 16,210 | | | | | | 16,210 | | | | | 16,210 | | | ||||
Total prepaid expenses and other current assets | | | $ | 1,622,815 | | | | $ | 1,252,396 | | | | | $ | 761,270 | | | | $ | 1,622,815 | | |
| | | April 30, 2020 | | | April 30, 2019 | | ||||||
Deferred income tax asset: | | | | | | | | | | | | | |
Net operating loss carryover | | | | $ | 2,333,201 | | | | | $ | 1,541,317 | | |
Other temporary differences | | | | | 511,093 | | | | | | 120,739 | | |
Total deferred tax asset | | | | | 2,844,294 | | | | | | 1,662,056 | | |
Valuation allowance | | | | | (2,844,294) | | | | | | (1,662,056) | | |
Deferred income tax asset, net of allowance | | | | $ | — | | | | | $ | — | | |
| | | For the Year Ended April 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Federal and State | | | | | | | | | | | | | |
Current | | | | $ | — | | | | | $ | — | | |
Deferred | | | | | (2,844,294) | | | | | | (1,662,056) | | |
Valuation allowance | | | | | 2,844,294 | | | | | | 1,662,056 | | |
Income tax provision (benefit) | | | | $ | — | | | | | $ | — | | |
| | | For the Year Ended April 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Tax benefit at U.S. Federal statutory tax rate | | | | | -21.0% | | | | | | -21.0% | | |
Increase (decrease) in tax rate resulting from: | | | | | | | | | | | | | |
Allowance against deferred tax assets | | | | | 20.9% | | | | | | 20.9% | | |
Nondeductible meals & entertainment expense and other | | | | | 0.1% | | | | | | 0.1% | | |
Taxes in respect of prior years | | | | | — | | | | | | — | | |
Changes in federal tax rate | | | | | — | | | | | | — | | |
Effective tax rate | | | | | 0.0% | | | | | | 0.0% | | |
| | | Shares Available for Grant | | | Outstanding Options | | ||||||||||||||||||||||||
| Number of Options | | | Weighted Average Exercise Price | | | Weighted Average Remaining Contractual Life (Years) | | | Aggregate Intrinsic Value | | ||||||||||||||||||||
Balance at April 30, 2018 | | | | | 5,000,000 | | | | | | 7,500,000 | | | | | $ | 0.0004 | | | | | | 8.00 | | | | | $ | 7,497,000 | | |
Increase to plan shares | | | | | 7,500,000 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Options granted | | | | | (8,210,000) | | | | | | 8,210,000 | | | | | $ | 1.0000 | | | | | | | | | | | | | | |
Balance at April 30, 2019 | | | | | 4,290,000 | | | | | | 15,710,000 | | | | | $ | 0.5228 | | | | | | 7.51 | | | | | $ | 15,352,000 | | |
Options cancelled/forfeited | | | | | 35,000 | | | | | | (35,000) | | | | | $ | 1.0000 | | | | | | | | | | | | | | |
Options granted | | | | | (3,750,000) | | | | | | 3,750,000 | | | | | $ | 1.4267 | | | | | | | | | | | | | | |
Balance at April 30, 2020 | | | | | 575,000 | | | | | | 19,425,000 | | | | | $ | 0.6964 | | | | | | 6.89 | | | | | $ | 15,609,500 | | |
Options vested and expected to vest at April 30, 2019 | | | | | | | | | | | 17,425,000 | | | | | $ | 0.6616 | | | | | | 7.45 | | | | | $ | 14,609,500 | | |
Options exercisable at April 30, 2019 | | | | | | | | | | | 10,424,452 | | | | | $ | 0.3053 | | | | | | 6.60 | | | | | $ | 12,454,020 | | |
| | | | | | | | | Outstanding Options | | | |||||||||||||||||||||||
| | | Shares Available for Grant | | | Number of Options | | | Weighted Average Exercise Price | | | Weighted Average Remaining Contractual Life (years) | | | Aggregate Intrinsic Value | | | |||||||||||||||||
Balance at April 30, 2020 | | | | | 575,000 | | | | | | 19,425,000 | | | | | $ | 0.5228 | | | | | | 6.89 | | | | | $ | 15,609,500 | | | | ||
Options granted | | | | | (125,000) | | | | | | 125,000 | | | | | $ | 1.5000 | | | | | | | | | | | | | | | | ||
Balance at January 31, 2021 | | | | | 450,000 | | | | | | 19,550,000 | | | | | $ | 0.7015 | | | | | | 6.16 | | | | | $ | 15,609,500 | | | | ||
Options vested and expected to vest at January 31, 2021 | | | | | | | | | | | 17,550,000 | | | | | $ | 0.6675 | | | | | | 6.72 | | | | | $ | 14,609,500 | | | | | |
Options exercisable at January 31, 2021 | | | | | | | | | | | 12,352,030 | | | | | $ | 0.4399 | | | | | | 6.14 | | | | | $ | 13,093,857 | | | |
| | | | | | | | | Outstanding Options | | | |||||||||||||||||||||||
| | | Shares Available for Grant | | | Number of Options | | | Weighted Average Exercise Price | | | Weighted Average Remaining Contractual Life (years) | | | Aggregate Intrinsic Value | | | |||||||||||||||||
Balance at April 30, 2019 | | | | | 4,290,000 | | | | | | 15,710,000 | | | | | $ | 0.5228 | | | | | | 6.89 | | | | | $ | 15,352,000 | | | | ||
Options granted | | | | | (1,800,000) | | | | | | 1,800,000 | | | | | $ | 1.5000 | | | | | | | | | | | | | | | | ||
Options cancelled | | | | | 35,000 | | | | | | (35,000) | | | | | $ | 1.0000 | | | | | | | | | | | | | | | | ||
Balance at January 31, 2020 | | | | | 2,525,000 | | | | | | 17,475,000 | | | | | $ | 0.6964 | | | | | | 6.72 | | | | | $ | 15,609,500 | | | | ||
Options vested and expected to vest at January 31, 2020 | | | | | | | | | | | 15,475,000 | | | | | $ | 0.6616 | | | | | | 7.70 | | | | | $ | 14,609,500 | | | | | |
Options exercisable at January 31, 2020 | | | | | | | | | | | 9,191,134 | | | | | $ | 0.2491 | | | | | | 6.72 | | | | | $ | 12,240,741 | | | |
| | For the Year Ended April 30, | | | For the Nine Months Ended January 31, | | | | |||||||||||||||
| | 2020 | | 2019 | | | 2021 | | 2020 | | | ||||||||||||
Expected term (in years) | | 2.50 – 6.25 | | 3.00 –��6.25 | | | | | 6.25 | | | | | 5.21 | | | | ||||||
Volatility | | 65.80% – 72.35% | | 83.40% | | | | | 100.1% | | | | | 71.0% | | | | ||||||
Risk-free interest rate | | 1.52% – 2.36% | | 2.50% – 2.95% | | | | | 0.51% | | | | | 1.78% | | | | ||||||
Dividend yield | | — | | — | | | | | 0.0% | | | | | 0.0% | | | |
| | For the Year Ended April 30, | | | For the Nine Months Ended January 31, | | | | |||||||||||||||||||||
| | 2020 | | 2019 | | | 2021 | | 2020 | | | ||||||||||||||||||
Research and development | | | $ | 309,499 | | | | $ | 2,227,923 | | | | | $ | 65,439 | | | | $ | 287,686 | | | | ||||||
General and administrative | | | | 1,945,741 | | | | | 396,170 | | | | | | 1,670,058 | | | | | 1,374,531 | | | | ||||||
Total | | | $ | 2,255,240 | | | | $ | 2,624,093 | | | | | $ | 1,735,497 | | | | $ | 1,662,217 | | | |
| Outstanding | | | Exercisable | | |||||||||||||||||||||||||||
| Exercise Price | | | Number Outstanding | | | Weighted Average Remaining Contractual Life (years) | | | Weighted Average Exercise Price | | | Number Exercisable | | | Weighted Average Exercise Price | | |||||||||||||||
| $1.00 | | | | | 500,000 | | | | | | 3.1 | | | | | $ | 1.00 | | | | | | 183,333 | | | | | $ | 1.00 | | |
| $1.75 | | | | | 175,772 | | | | | | 3.8 | | | | | $ | 1.75 | | | | | | 43,943 | | | | | $ | 1.75 | | |
| $3.00 | | | | | 6,093,683 | | | | | | 3.2 | | | | | $ | 3.00 | | | | | | 2,034,587 | | | | | $ | 3.00 | | |
| $1.00 – $3.00 | | | | | 6,769,635 | | | | | | 3.5 | | | | | $ | 2.82 | | | | | | 2,261,863 | | | | | $ | 2.81 | | |
| | | For the Nine Months Ended January 31, | | | | | |||
| | | 2021 | | | 2020 | | | ||
Common stock price | | | $1.50 | | | $1.00 – $1.50 | | | ||
Expected term (in years) | | | 5.00 | | | 2.50 | | | ||
Volatility | | | 103.70% | | | 69.35% | | | ||
Risk-free interest rate | | | 0.27% – 0.28% | | | 2.53% | | | ||
Dividend yield | | | 0.00% | | | 0.00% | | |
Outstanding | | | Exercisable | | ||||||||||||||||||||||||||||||
Exercise Price | | | Number Outstanding | | | Weighted Average Remaining Contractual Life (Years) | | | Weighted Average Exercise Price | | | Number Exercisable | | | Weighted Average Exercise Price | | ||||||||||||||||||
| $ | 1.00 | | | | | | 500,000 | | | | | | 3.8 | | | | | $ | 1.00 | | | | | | 108,333 | | | | | $ | 1.00 | | |
| $ | 1.20 | | | | | | 5,500 | | | | | | 0.3 | | | | | $ | 1.20 | | | | | | 4,888 | | | | | $ | 1.20 | | |
| $ | 1.75 | | | | | | 175,772 | | | | | | 4.5 | | | | | $ | 1.75 | | | | | | 14,647 | | | | | $ | 1.75 | | |
| $ | 3.00 | | | | | | 5,970,863 | | | | | | 3.9 | | | | | $ | 3.00 | | | | | | 1,126,397 | | | | | $ | 3.00 | | |
| $ | 1.00 – $3.00 | | | | | | 6,652,135 | | | | | | 4.3 | | | | | $ | 2.82 | | | | | | 1,254,265 | | | | | $ | 2.81 | | |
| | | April 30, 2020 | | | April 30, 2019 | | ||||||
ASSETS | | | | | | | | | | | | | |
CURRENT ASSETS | | | | | | | | | | | | | |
Cash | | | | $ | 90,285 | | | | | $ | 42,606 | | |
Note receivable, related party, net | | | | | 100,915 | | | | | | 205,915 | | |
Prepaid expenses and other current assets | | | | | 1,622,815 | | | | | | 1,252,396 | | |
TOTAL CURRENT ASSETS | | | | | 1,814,015 | | | | | | 1,500,917 | | |
TOTAL ASSETS | | | | $ | 1,814,015 | | | | | $ | 1,500,917 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | | | | | | |
Accounts payable and accrued liabilities | | | | $ | 929,639 | | | | | $ | 1,104,669 | | |
Related party payable | | | | | 62,667 | | | | | | 79,333 | | |
TOTAL CURRENT LIABILITIES | | | | | 992,306 | | | | | | 1,184,002 | | |
COMMITMENTS AND CONTINGENCIES (Note 13) | | | | | | | | | | | | | |
STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Convertible Preferred stock, $0.0001 par value: 10,000,000 shares authorized; Series A Convertible Preferred Stock, $0.0001 stated value per share, 1,360,000 shares | | | | | 75 | | | | | | 75 | | |
Common stock, $0.0001 par value: 300,000,000 shares authorized; 64,762,858 and 61,878,465 shares issued and outstanding as of April 30, 2020 and 2019, respectively | | | | | 6,476 | | | | | | 6,188 | | |
Additional paid-in capital | | | | | 27,584,227 | | | | | | 22,686,285 | | |
Note receivable for common stock – related party | | | | | (14,983,200) | | | | | | (15,000,000) | | |
Accumulated deficit | | | | | (11,785,869) | | | | | | (7,375,633) | | |
TOTAL STOCKHOLDERS’ EQUITY | | | | | 821,709 | | | | | | 316,915 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | $ | 1,814,015 | | | | | $ | 1,500,917 | | |
| | | For the Year Ended April 30, | | | | | |||||||||
| | | 2020 | | | 2019 | | | ||||||||
OPERATING EXPENSES | | | | | | | | | | | | | | | ||
Research and development | | | | $ | 1,069,418 | | | | | $ | 3,700,083 | | | | ||
General and administrative | | | | | 3,354,743 | | | | | | 1,308,800 | | | | ||
Total operating expenses | | | | | 4,424,161 | | | | | | 5,008,883 | | | | ||
Loss from operations | | | | | (4,424,161) | | | | | | (5,008,883) | | | | ||
OTHER INCOME (EXPENSE), NET | | | | | | | | | | | | | | | ||
Interest income – related party | | | | | 13,925 | | | | | | 146,387 | | | | ||
Total other income (expense), net | | | | | 13,925 | | | | | | 146,387 | | | | ||
NET LOSS | | | | $ | (4,410,236) | | | | | $ | (4,862,496) | | | | ||
Basic and diluted net loss per common share | | | | $ | (0.06) | | | | | $ | (0.08) | | | | ||
Basic and diluted weighted average common shares outstanding | | | | | 71,253,580 | | | | | | 58,843,040 | | | |
| | | For the Year Ended April 30, | | | | | |||||||||
| | | 2020 | | | 2019 | | | ||||||||
Cash flows from operating activities: | | | | | | | | | | | | | | | ||
Net loss | | | | $ | (4,410,236) | | | | | $ | (4,862,496) | | | | ||
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | | | ||
Accretion of original issue discount on notes receivable – related party | | | | | — | | | | | | (36,667) | | | | ||
Issuance of common stock for license fees | | | | | — | | | | | | 2,227,923 | | | | ||
Stock-based compensation to employees and consultants | | | | | 1,801,516 | | | | | | 396,170 | | | | ||
Non-cash consulting expense from issuance of common stock | | | | | 562,277 | | | | | | — | | | | ||
Changes in operating assets and liabilities: | | | | | | | | | | | | | | | ||
Prepaid expenses and other current assets | | | | | (124,317) | | | | | | 215,289 | | | | ||
Accounts payable and accrued expenses | | | | | (175,030) | | | | | | 1,014,581 | | | | ||
Net cash used in operating activities | | | | | (2,345,790) | | | | | | (1,045,200) | | | | ||
Cash flows from investing activities: | | | | | | | | | | | | | | | ||
Loans to related party | | | | | — | | | | | | (558,000) | | | | ||
Proceeds from repayments of notes receivable – related party | | | | | 105,000 | | | | | | 792,085 | | | | ||
Net cash provided by investing activities | | | | | 105,000 | | | | | | 234,085 | | | | ||
Cash flows from financing activities: | | | | | | | | | | | | | | | ||
Proceeds for issuance of common stock and warrants, net | | | | | 2,288,335 | | | | | | 236,023 | | | | ||
Advances from related party payable | | | | | (16,666) | | | | | | 72,697 | | | | ||
Proceeds from note receivable for common stock – related party | | | | | 16,800 | | | | | | — | | | | ||
Net cash provided by financing activities | | | | | 2,288,469 | | | | | | 308,720 | | | | ||
Net increase (decrease) in cash | | | | | 47,679 | | | | | | (502,395) | | | | ||
Cash at beginning of period | | | | | 42,606 | | | | | | 545,001 | | | | ||
Cash at end of period | | | | $ | 90,285 | | | | | $ | 42,606 | | | | ||
Supplemental disclosures of cash flow information: | | | | | | | | | | | | | | | ||
Non-cash financing activities: | | | | | | | | | | | | | | | ||
Issuance of common stock for note receivable – related party | | | | $ | — | | | | | $ | 15,000,000 | | | | ||
Issuance of common stock for prepaid consulting services | | | | $ | 683,379 | | | | | $ | — | | | |
| | | Series A Convertible Preferred Stock | | | Common Stock | | | Additional Paid-In Capital | | | Note Receivable for Common Stock-Related Party | | | Accumulated Deficit | | | ||||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | | Total | | |||||||||||||||||||||||||||||||||
BALANCES, April 30, 2018 | | | | | 750,000 | | | | | $ | 75 | | | | | | 49,493,196 | | | | | $ | 4,949 | | | | | $ | 4,827,408 | | | | | $ | — | | | | | $ | (2,513,137) | | | | | $ | 2,319,295 | | |
Issuance of common stock and warrants | | | | | — | | | | | | — | | | | | | 157,346 | | | | | | 16 | | | | | | 236,007 | | | | | | — | | | | | | — | | | | | | 236,023 | | |
Issuance of common stock to related party | | | | | — | | | | | | — | | | | | | 10,000,000 | | | | | | 1,000 | | | | | | 14,999,000 | | | | | | (15,000,000) | | | | | | — | | | | | | — | | |
Stock-based compensation to employees and consultants | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 396,170 | | | | | | — | | | | | | — | | | | | | 396,170 | | |
Issuance of common stock for license fees | | | | | — | | | | | | — | | | | | | 2,227,923 | | | | | | 223 | | | | | | 2,227,700 | | | | | | — | | | | | | — | | | | | | 2,227,923 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,862,496) | | | | | | (4,862,496) | | |
BALANCES, April 30, 2019 | | | | | 750,000 | | | | | | 75 | | | | | | 61,878,465 | | | | | | 6,188 | | | | | | 22,686,285 | | | | | | (15,000,000) | | | | | | (7,375,633) | | | | | | 316,915 | | |
Issuance of common stock and warrants, net | | | | | — | | | | | | — | | | | | | 2,284,393 | | | | | | 228 | | | | | | 2,288,107 | | | | | | — | | | | | | — | | | | | | 2,288,335 | | |
Stock-based compensation to employees and consultants | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,801,516 | | | | | | — | | | | | | — | | | | | | 1,801,516 | | |
Proceeds from note receivable – related party for common stock | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 16,800 | | | | | | — | | | | | | 16,800 | | |
Issuance of common stock for services | | | | | — | | | | | | — | | | | | | 600,000 | | | | | | 60 | | | | | | 808,319 | | | | | | — | | | | | | — | | | | | | 808,379 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,410,236) | | | | | | (4,410,236) | | |
BALANCES, April 30, 2020 | | | | | 750,000 | | | | | $ | 75 | | | | | | 64,762,858 | | | | | $ | 6,476 | | | | | $ | 27,584,227 | | | | | $ | (14,983,200) | | | | | $ | (11,785,869) | | | | | $ | 821,709 | | |
| | | For the Year Ended April 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Series A convertible preferred stock | | | | | 15,000,000 | | | | | | 15,000,000 | | |
Stock options(1) | | | | | 16,175,000 | | | | | | 8,210,000 | | |
Warrants | | | | | 6,652,135 | | | | | | 5,584,172 | | |
| | | | | 37,827,135 | | | | | | 28,794,172 | | |
| | | April 30, 2020 | | | April 30, 2019 | | ||||||
Prepaid consulting fees | | | | $ | 1,513,602 | | | | | $ | 1,151,667 | | |
Interest receivable | | | | | 77,153 | | | | | | 63,229 | | |
Other prepaid expenses | | | | | 15,850 | | | | | | 21,290 | | |
Other receivables | | | | | 16,210 | | | | | | 16,210 | | |
Total prepaid expenses and other current assets | | | | $ | 1,622,815 | | | | | $ | 1,252,396 | | |
| | | April 30, 2020 | | | April 30, 2019 | | ||||||
Deferred income tax asset: | | | | | | | | | | | | | |
Net operating loss carryover | | | | $ | 2,333,201 | | | | | $ | 1,541,317 | | |
Other temporary differences | | | | | 511,093 | | | | | | 120,739 | | |
Total deferred tax asset | | | | | 2,844,294 | | | | | | 1,662,056 | | |
Valuation allowance | | | | | (2,844,294) | | | | | | (1,662,056) | | |
Deferred income tax asset, net of allowance | | | | $ | — | | | | | $ | — | | |
| | | For the Year Ended April 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Federal and State | | | | | | | | | | | | | |
Current | | | | $ | — | | | | | $ | — | | |
Deferred | | | | | (2,844,294) | | | | | | (1,662,056) | | |
Valuation allowance | | | | | 2,844,294 | | | | | | 1,662,056 | | |
Income tax provision (benefit) | | | | $ | — | | | | | $ | — | | |
| | | For the Year Ended April 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Tax benefit at U.S. Federal statutory tax rate | | | | | -21.0% | | | | | | -21.0% | | |
Increase (decrease) in tax rate resulting from: | | | | | | | | | | | | | |
Allowance against deferred tax assets | | | | | 20.9% | | | | | | 20.9% | | |
Nondeductible meals & entertainment expense and other | | | | | 0.1% | | | | | | 0.1% | | |
Taxes in respect of prior years | | | | | — | | | | | | — | | |
Changes in federal tax rate | | | | | — | | | | | | — | | |
Effective tax rate | | | | | 0.0% | | | | | | 0.0% | | |
| | | Shares Available for Grant | | | Outstanding Options | | ||||||||||||||||||||||||
| Number of Options | | | Weighted Average Exercise Price | | | Weighted Average Remaining Contractual Life (Years) | | | Aggregate Intrinsic Value | | ||||||||||||||||||||
Balance at April 30, 2018 | | | | | 5,000,000 | | | | | | 7,500,000 | | | | | $ | 0.0004 | | | | | | 8.00 | | | | | $ | 7,497,000 | | |
Increase to plan shares | | | | | 7,500,000 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Options granted | | | | | (8,210,000) | | | | | | 8,210,000 | | | | | $ | 1.0000 | | | | | | | | | | | | | | |
Balance at April 30, 2019 | | | | | 4,290,000 | | | | | | 15,710,000 | | | | | $ | 0.5228 | | | | | | 7.51 | | | | | $ | 15,352,000 | | |
Options cancelled/forfeited | | | | | 35,000 | | | | | | (35,000) | | | | | $ | 1.0000 | | | | | | | | | | | | | | |
Options granted | | | | | (3,750,000) | | | | | | 3,750,000 | | | | | $ | 1.4267 | | | | | | | | | | | | | | |
Balance at April 30, 2020 | | | | | 575,000 | | | | | | 19,425,000 | | | | | $ | 0.6964 | | | | | | 6.89 | | | | | $ | 15,609,500 | | |
Options vested and expected to vest at April 30, 2019 | | | | | | | | | | | 17,425,000 | | | | | $ | 0.6616 | | | | | | 7.45 | | | | | $ | 14,609,500 | | |
Options exercisable at April 30, 2019 | | | | | | | | | | | 10,424,452 | | | | | $ | 0.3053 | | | | | | 6.60 | | | | | $ | 12,454,020 | | |
| | | For the Year Ended April 30, | | |||
| | | 2020 | | | 2019 | |
Expected term (in years) | | | 2.50 – 6.25 | | | 3.00 – 6.25 | |
Volatility | | | 65.80% – 72.35% | | | 83.40% | |
Risk-free interest rate | | | 1.52% – 2.36% | | | 2.50% – 2.95% | |
Dividend yield | | | — | | | — | |
| | | For the Year Ended April 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Research and development | | | | $ | 309,499 | | | | | $ | 2,227,923 | | |
General and administrative | | | | | 1,945,741 | | | | | | 396,170 | | |
Total | | | | $ | 2,255,240 | | | | | $ | 2,624,093 | | |
| | | For the Year Ended April 30, 2019 | | |||
Expected term (in years) | | | | | 2.50 | | |
Volatility | | | | | 69.35% | | |
Risk-free interest rate | | | | | 2.53% | | |
Dividend yield | | | | | — | | |
Outstanding | | | Exercisable | | ||||||||||||||||||||||||||||||
Exercise Price | | | Number Outstanding | | | Weighted Average Remaining Contractual Life (Years) | | | Weighted Average Exercise Price | | | Number Exercisable | | | Weighted Average Exercise Price | | ||||||||||||||||||
| $ | 1.00 | | | | | | 500,000 | | | | | | 3.8 | | | | | $ | 1.00 | | | | | | 108,333 | | | | | $ | 1.00 | | |
| $ | 1.20 | | | | | | 5,500 | | | | | | 0.3 | | | | | $ | 1.20 | | | | | | 4,888 | | | | | $ | 1.20 | | |
| $ | 1.75 | | | | | | 175,772 | | | | | | 4.5 | | | | | $ | 1.75 | | | | | | 14,647 | | | | | $ | 1.75 | | |
| $ | 3.00 | | | | | | 5,970,863 | | | | | | 3.9 | | | | | $ | 3.00 | | | | | | 1,126,397 | | | | | $ | 3.00 | | |
| $ | 1.00 – $3.00 | | | | | | 6,652,135 | | | | | | 4.3 | | | | | $ | 2.82 | | | | | | 1,254,265 | | | | | $ | 2.81 | | |
Payment | | | Due Date | | | Event | | |||
| $ | 50,000 | | | | January 1, 2022 | | | Upon IND application filing | |
| $ | 50,000 | | | | 12 months from IND application filing date | | | Upon first dosing of patient in first Phase I clinical trial | |
| $ | 175,000 | | | | 12 months from first patient dosed in Phase I | | | Upon completion of first Phase I clinical trial | |
| $ | 500,000 | | | | 24 months from completion of first Phase I clinical trial | | | Upon completion of first Phase II clinical trial | |
| $ | 1,000,000 | | | | 12 months from completion of the first Phase II clinical trial | | | Upon first patient treated in a Phase III clinical trial | |
| $ | 10,000,000 | | | | 7 years from the effective date of the agreement | | | Upon FDA BLA approval | |
Payment | | | Due Date | | | Event | | |||
| $ | 50,000 | | | | November 1, 2019 | | | Pre-IND meeting | |
| $ | 65,000 | | | | December 31, 2021 | | | IND application filing | |
| $ | 190,000 | | | | 12 months from IND filing date | | | Upon first dosing of patient in a clinical trial | |
| $ | 500,000 | | | | 12 months from first patient dosing | | | Upon completion of first clinical trial | |
| $ | 1,250,000 | | | | 24 months from completion of the first clinical trial | | | Upon first patient treated in a Phase III clinical trial | |
| $ | 10,000,000 | | | | 8 years from the effective date of the agreement | | | Upon FDA approval | |
Payment | | | Due Date | | | Event | | |||
| $ | 30,000 | | | | Completed September 2019 | | | Pre-IND meeting | |
| $ | 50,000 | | | | December 31, 2022 | | | IND application filing | |
| $ | 150,000 | | | | 12 months from IND filing date | | | Upon first dosing of patient in a clinical trial | |
| $ | 400,000 | | | | 12 months from first patient dosing | | | Upon completion of first clinical trial | |
| $ | 1,000,000 | | | | 36 months from completion of the first Phase II clinical trial | | | Upon first patient treated in a Phase III clinical trial | |
| $ | 8,000,000 | | | | August 1, 2029 | | | First commercial sale | |
| SEC Registration Fee | | | | $ | 1,568 | | |
| FINRA Filing Fee | | | | | 2,656 | | |
| Initial Nasdaq Capital Market Listing Fee | | | | | 25,000 | | |
| Printing Fees and Expenses | | | | | 2,500 | | |
| Accounting Fees and Expenses | | | | | 75,000 | | |
| Legal Fees and Expenses | | | | | 200,000 | | |
| Underwriter Expenses | | | | | 200,000 | | |
| Transfer Agent and Registrar Fees | | | | | 5,000 | | |
| Miscellaneous Fees and Expenses | | | | | 3,276 | | |
| Total | | | | $ | 515,000 | | |
Exhibit No. | | | Exhibit Description | | | | |
10.11 | | | Securities Purchase Agreement with Ault Life Sciences Fund, LLC, dated April 30, 2019 (incorporated by reference to Exhibit 4.2 of Form 1-A/A filed with the SEC on February 4, 2020). | | | ||
10.12 | | | | | |||
10.13 | | | | | |||
10.14 | | | | | |||
10.15 | | | | | |||
10.16 | | | | | |||
10.17 | | | | | |||
23.1* | | | | | |||
23.2 | | | | | |||
23.3 | | | | | |||
23.4 | | | | | |||
23.5 | | | | | |||
23.6 | | | | | |||
24.1 | | | | |
| | | | ALZAMEND NEURO, INC. | | |||
| Date: June | | | By: | | | /s/ Stephan Jackman Stephan Jackman Chief Executive Officer (principal executive officer) | |
| Date: June | | | By: | | | /s/ Lien T. Escalona Lien T. Escalona Chief Financial Officer (principal financial and accounting officer) | |
| Name | | | Title | | | Date | |
| By: /s/ Stephan Jackman Stephan Jackman | | | Chief Executive Officer and Director (principal executive officer) | | | June | |
| By: /s/ Lien T. Escalona Lien T. Escalona | | | Chief Financial Officer (principal financial and accounting officer) | | | June | |
| By: Milton C. Ault, III Milton C. Ault, III | | | Founder and Executive Chairman of the Board | | | June | |
| By: /s/ Henry C.W. Nisser Henry C.W. Nisser | | | Executive Vice President, General Counsel and Director | | | June | |
| By: William B. Horne William B. Horne | | | Director | | | June | |