Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2022 | Aug. 05, 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 | 001-35963 | |
Entity Registrant Name | NEUBASE THERAPEUTICS, INC. | |
Entity Incorporation, State Code | DE | |
Entity Tax Identification Number | 46-5622433 | |
Entity Address, Address Line One | 350 Technology Drive, | |
Entity Address, City or Town | Pittsburgh | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 15219 | |
City Area Code | 412 | |
Local Phone Number | 763-3350 | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Trading Symbol | NBSE | |
Security Exchange Name | NASDAQ | |
Entity's Reporting Status Current | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 32,258,657 | |
Entity Central Index Key | 0001173281 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 29,846,825 | $ 52,893,387 |
Prepaid insurance | 460,804 | 499,061 |
Other prepaid expenses and current assets | 1,314,057 | 1,536,186 |
Total current assets | 31,621,686 | 54,928,634 |
EQUIPMENT, net | 2,351,286 | 2,463,882 |
OTHER ASSETS | ||
Investment | 0 | 415,744 |
Right-of-use asset, operating lease asset | 5,750,602 | 5,945,295 |
Security deposit | 273,215 | 253,615 |
Other long-term assets | 0 | 160,423 |
Total other assets | 6,023,817 | 6,775,077 |
TOTAL ASSETS | 39,996,789 | 64,167,593 |
CURRENT LIABILITIES | ||
Accounts payable | 1,655,789 | 1,807,885 |
Accrued expenses and other current liabilities | 1,868,860 | 1,747,746 |
Insurance note payable | 0 | 148,385 |
Operating lease liabilities | 560,252 | 382,576 |
Finance lease liabilities | 115,652 | 107,632 |
Total current liabilities | 4,200,553 | 4,194,224 |
Long-term operating lease liability | 5,463,797 | 5,794,096 |
Long-term finance lease liability | 20,108 | 109,500 |
TOTAL LIABILITIES | 9,684,458 | 10,097,820 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding as of June 30, 2022 and September 30, 2021 | 0 | 0 |
Common stock, $0.0001 par value; 250,000,000 shares authorized; 32,258,657 and 32,721,493 shares issued and outstanding as of June 30, 2022 and September 30, 2021, respectively | 3,225 | 3,272 |
Additional paid-in capital | 125,421,571 | 123,034,404 |
Accumulated deficit | (95,112,465) | (68,967,903) |
Total stockholders' equity | 30,312,331 | 54,069,773 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 39,996,789 | $ 64,167,593 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Sep. 30, 2021 |
Condensed Consolidated Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 250,000,000 | 250,000,000 |
Common stock, issued | 32,258,657 | 32,721,493 |
Common stock, outstanding | 32,258,657 | 32,721,493 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
OPERATING EXPENSES | ||||
General and administrative | $ 3,603,999 | $ 3,470,104 | $ 9,633,422 | $ 8,833,214 |
Research and development | 4,756,609 | 2,480,961 | 15,961,536 | 7,675,014 |
Research and development, Vera acquisition | 0 | 2,888,029 | 0 | 2,888,029 |
TOTAL OPERATING EXPENSES | 8,360,608 | 8,839,094 | 25,594,958 | 19,396,257 |
LOSS FROM OPERATIONS | (8,360,608) | (8,839,094) | (25,594,958) | (19,396,257) |
OTHER INCOME (EXPENSE) | ||||
Interest expense | (2,819) | (3,074) | (21,354) | (19,271) |
Interest income | 37,147 | 2,054 | 41,846 | 11,520 |
Change in fair value of warrant liabilities | 0 | 215,547 | 0 | 936,256 |
Equity in losses on equity method investment | 0 | (37,215) | (415,744) | (98,754) |
Other (expense) income, net | (165,437) | (1,087) | (154,352) | 315,637 |
Total other income (expense), net | (131,109) | 176,225 | (549,604) | 1,145,388 |
NET LOSS | $ (8,491,717) | $ (8,662,869) | $ (26,144,562) | $ (18,250,869) |
BASIC LOSS PER SHARE (in dollars per share) | $ (0.26) | $ (0.29) | $ (0.80) | $ (0.72) |
DILUTED LOSS PER SHARE (in dollars per share) | $ (0.26) | $ (0.29) | $ (0.80) | $ (0.72) |
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||||
BASIC | 32,258,657 | 30,092,493 | 32,556,035 | 25,482,082 |
DILUTED | 32,258,657 | 30,092,493 | 32,556,035 | 25,482,082 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance, beginning at Sep. 30, 2020 | $ 2,315 | $ 74,850,935 | $ (43,558,602) | $ 31,294,648 |
Balance, beginning, shares at Sep. 30, 2020 | 23,154,084 | |||
Stock-based compensation expense | 1,176,585 | 1,176,585 | ||
Issuance of restricted stock for services (in shares) | 1,931 | |||
Exercise of stock options | $ 2 | 112,444 | 112,446 | |
Exercise of stock options (in shares) | 21,576 | |||
Net loss | (4,066,431) | (4,066,431) | ||
Balance, ending at Dec. 31, 2020 | $ 2,317 | 76,139,964 | (47,625,033) | 28,517,248 |
Balance, ending, shares at Dec. 31, 2020 | 23,177,591 | |||
Balance, beginning at Sep. 30, 2020 | $ 2,315 | 74,850,935 | (43,558,602) | 31,294,648 |
Balance, beginning, shares at Sep. 30, 2020 | 23,154,084 | |||
Net loss | (18,250,869) | |||
Balance, ending at Jun. 30, 2021 | $ 3,271 | 122,081,896 | (61,809,471) | 60,275,696 |
Balance, ending, shares at Jun. 30, 2021 | 32,716,827 | |||
Balance, beginning at Dec. 31, 2020 | $ 2,317 | 76,139,964 | (47,625,033) | 28,517,248 |
Balance, beginning, shares at Dec. 31, 2020 | 23,177,591 | |||
Stock-based compensation expense | 942,108 | 942,108 | ||
Issuance of restricted stock for services (in shares) | 2,433 | |||
Net loss | (5,521,569) | (5,521,569) | ||
Balance, ending at Mar. 31, 2021 | $ 2,317 | 77,082,072 | (53,146,602) | 23,937,787 |
Balance, ending, shares at Mar. 31, 2021 | 23,180,024 | |||
Stock-based compensation expense | 625,182 | 625,182 | ||
Issuance of restricted stock for services (in shares) | 2,692 | |||
Exercise of stock options | $ 3 | (3) | ||
Exercise of stock options (in shares) | 25,476 | |||
Issuance of common stock, net of issuance costs | $ 920 | 42,615,456 | 42,616,376 | |
Issuance of common stock, net of issuance costs (in shares) | 9,200,000 | |||
Issuance of common stock, Vera acquisition | $ 31 | 1,759,189 | 1,759,220 | |
Issuance of common stock, Vera acquisition (in shares) | 308,635 | |||
Net loss | (8,662,869) | (8,662,869) | ||
Balance, ending at Jun. 30, 2021 | $ 3,271 | 122,081,896 | (61,809,471) | 60,275,696 |
Balance, ending, shares at Jun. 30, 2021 | 32,716,827 | |||
Balance, beginning at Sep. 30, 2021 | $ 3,272 | 123,034,404 | (68,967,903) | 54,069,773 |
Balance, beginning, shares at Sep. 30, 2021 | 32,721,493 | |||
Stock-based compensation expense | 793,204 | 793,204 | ||
Issuance of restricted stock for services (in shares) | 4,441 | |||
Exercise of stock options | $ 4 | 38 | 42 | |
Exercise of stock options (in shares) | 42,250 | |||
Net loss | (7,728,816) | (7,728,816) | ||
Balance, ending at Dec. 31, 2021 | $ 3,276 | 123,827,646 | (76,696,719) | 47,134,203 |
Balance, ending, shares at Dec. 31, 2021 | 32,768,184 | |||
Balance, beginning at Sep. 30, 2021 | $ 3,272 | 123,034,404 | (68,967,903) | 54,069,773 |
Balance, beginning, shares at Sep. 30, 2021 | 32,721,493 | |||
Net loss | (26,144,562) | |||
Balance, ending at Jun. 30, 2022 | $ 3,225 | 125,421,571 | (95,112,465) | 30,312,331 |
Balance, ending, shares at Jun. 30, 2022 | 32,258,657 | |||
Balance, beginning at Dec. 31, 2021 | $ 3,276 | 123,827,646 | (76,696,719) | 47,134,203 |
Balance, beginning, shares at Dec. 31, 2021 | 32,768,184 | |||
Stock-based compensation expense | 952,828 | 952,828 | ||
Forfeiture of common stock | $ (51) | 51 | ||
Forfeiture of common stock (in shares) | (509,527) | |||
Net loss | (9,924,029) | (9,924,029) | ||
Balance, ending at Mar. 31, 2022 | $ 3,225 | 124,780,525 | (86,620,748) | 38,163,002 |
Balance, ending, shares at Mar. 31, 2022 | 32,258,657 | |||
Stock-based compensation expense | 641,046 | 641,046 | ||
Net loss | (8,491,717) | (8,491,717) | ||
Balance, ending at Jun. 30, 2022 | $ 3,225 | $ 125,421,571 | $ (95,112,465) | $ 30,312,331 |
Balance, ending, shares at Jun. 30, 2022 | 32,258,657 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | ||
Net loss | $ (26,144,562) | $ (18,250,869) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Stock-based compensation | 2,387,078 | 2,743,875 |
Research and development expense, Vera acquisition | 0 | 2,888,029 |
Change in fair value of warrant liabilities | 0 | (936,256) |
Depreciation and amortization | 567,744 | 251,701 |
Loss on marketable securities | 30 | 15,024 |
Loss on disposal of fixed assets | 0 | 1,087 |
Equity in losses on equity method investment | 415,744 | 98,754 |
Gain on sale of intellectual property | 0 | (316,724) |
Amortization of right-of-use assets | 359,306 | 69,423 |
Changes in operating assets and liabilities | ||
Prepaid insurance, other prepaid expenses and current assets | 260,386 | (166,420) |
Long-term prepaid insurance | 0 | 145,250 |
Security deposit | (19,600) | (253,565) |
Other long-term assets | 160,423 | 0 |
Accounts payable | (164,339) | (173,913) |
Accrued expenses and other current liabilities | 121,114 | 394,258 |
Operating lease liability | (317,236) | 58,809 |
Net cash used in operating activities | (22,373,912) | (13,431,537) |
Cash flows from investing activities | ||
Purchase of laboratory and office equipment | (442,905) | (1,096,781) |
Purchase of marketable securities | (14,986,818) | (44,992,196) |
Sale of marketable securities | 14,986,788 | 44,977,172 |
Cash paid for Vera acquisition | 0 | (1,100,040) |
Net cash used in investing activities | (442,935) | (2,211,845) |
Cash flows from financing activities | ||
Principal payment of financed insurance | (148,385) | (235,248) |
Principal payment of finance lease liability | (81,372) | 0 |
Proceeds from issuance of stock, net of issuance costs | 0 | 42,616,376 |
Proceeds from exercise of stock options | 42 | 112,446 |
Net cash (used in) provided by financing activities | (229,715) | 42,493,574 |
Net (decrease) increase in cash and cash equivalents | (23,046,562) | 26,850,192 |
Cash and cash equivalents, beginning of period | 52,893,387 | 31,992,283 |
Cash and cash equivalents, end of period | 29,846,825 | 58,842,475 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 0 | 10,400 |
Cash paid for income taxes | 0 | 0 |
Non-cash investing and financing activities: | ||
Issuance of common stock, Vera acquisition | 0 | 1,759,220 |
Purchases of laboratory and office equipment in accounts payable | 12,243 | 188,452 |
Preferred shares in DepYmed received as consideration for sale of intellectual property | 0 | 316,724 |
Insurance financed through note payable | 0 | 391,625 |
Right-of-use asset obtained in exchange for operating lease liabilities | $ 164,613 | $ 0 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Jun. 30, 2022 | |
Organization and Description of Business | |
Organization and Description of Business | 1. Organization and Description of Business NeuBase Therapeutics, Inc. and subsidiaries (the “Company” or “NeuBase”) is developing a modular peptide-nucleic acid (“PNA”) antisense oligo (“PATrOL™”) platform to address genetic diseases, with a single, cohesive approach. The PATrOL™-enabled anti-gene therapies are designed to improve upon current genetic medicine strategies by combining the advantages of synthetic approaches with the precision of antisense technologies. NeuBase plans to use its platform to address diseases which have a genetic source, with an initial focus on Myotonic Dystrophy Type 1 (“DM1”), Huntington’s disease (“HD”) and oncology applications. NeuBase is a preclinical-stage biopharmaceutical company and continues to develop its clinical and regulatory strategy with its internal research and development team with a view toward prioritizing market introduction as quickly as possible. NeuBase’s programs are NT-0100 in HD, NT-0200 in DM1 and NT-0300 in KRAS-driven cancers: ● The NT-0100 program is a PATrOL™-enabled therapeutic program being developed to target the mutant expansion in the HD messenger ribonucleic acid (“mRNA”). The NT-0100 program includes proprietary PNAs which have the potential to be highly selective for the mutant transcript versus the wild-type transcribed allele and the expectation to be applicable for all HD patients as it directly targets the expansion itself and has the potential to be delivered systemically. PATrOL™-enabled drugs also have the unique ability to open RNA secondary structures and bind to either the primary nucleotide sequences or the secondary and/or tertiary structures. ● The NT-0200 program is a PATrOL™-enabled therapeutic program being developed to target the mutant expansion in the DM1 disease mRNA. The NT-0200 program has the potential to be highly selective for the mutant transcript versus the wild-type transcribed allele and the expectation to be effective for nearly all DM1 patients as it directly targets the expansion itself. ● The NT-0300 program is a PATrOL™-enabled therapeutic program being developed to target the mutated KRAS gene. The program is comprised of candidate compounds that target two activating mutations in the KRAS gene: G12D and G12V. NeuBase believes these candidate compounds, and subsequent further optimized compounds, have the potential to inhibit transcription and/or translation of the oncogenic mutations and slow or stop tumor growth. NeuBase believes its three aforementioned programs address unmet needs for diseases that currently have no effective therapeutics that target the etiologies of these conditions. NeuBase further believes there is a large opportunity in the U.S. and European markets for drugs in these areas. Liquidity and Going Concern The Company has had no revenues from product sales and has incurred operating losses since inception. As of June 30, 2022, the Company had $29.8 million in cash and cash equivalents, and during the nine months ended June 30, 2022, incurred a loss from operations of $25.6 million and used $22.4 million of cash in operating activities. The accompanying unaudited condensed consolidated financial statements have been prepared assuming the Company will continue to operate as a going concern, which contemplates the realization of assets and settlement of liabilities in the normal course of business, and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from uncertainty related to its ability to continue as a going concern. The Company’s future liquidity and capital funding requirements will depend on numerous factors, including: ● its ability to raise additional funds to finance its operations; ● its ability to maintain compliance with the listing requirements of The Nasdaq Capital Market (“Nasdaq”) ● the outcome, costs and timing of preclinical and clinical trial results for the Company’s current or future product candidates; ● the extent and amount of any indemnification claims; ● litigation expenses and the extent and amount of any indemnification claims; ● the emergence and effect of competing or complementary products; ● its ability to maintain, expand and defend the scope of its intellectual property portfolio, including the amount and timing of any payments the Company may be required to make, or that it may receive, in connection with the licensing, filing, prosecution, defense and enforcement of any patents or other intellectual property rights; ● its ability to retain its current employees and the need and ability to hire additional management and scientific and medical personnel; ● the trading price of its common stock; and ● its ability to increase the number of authorized shares outstanding to facilitate future financing events. The Company will likely need to raise substantial additional funds through issuance of equity or debt or completion of a licensing transaction for one or more of the Company’s pipeline assets. If the Company is unable to maintain sufficient financial resources, its business, financial condition and results of operations will be materially and adversely affected. This could affect future development and business activities and potential future clinical studies and/or other future ventures. Failure to obtain additional equity or debt financing will have a material, adverse impact on the Company’s business operations. There can be no assurance that the Company will be able to obtain the needed financing on acceptable terms or at all. Additionally, any equity financings will likely have a dilutive effect on the holdings of the Company’s existing stockholders. The Company expects to incur substantial operating losses and negative cash flows from operations for the foreseeable future. Accordingly, there are material risks and uncertainties that raise substantial doubt about the Company’s ability to continue as a going concern. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2022 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the year ended September 30, 2021 included in the Company’s Annual Report on Form 10-K (the “Annual Report”) filed with the U.S. Securities and Exchange Commission (“SEC”) on December 23, 2021. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated during the consolidation process. The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, the accompanying unaudited condensed consolidated financial statements for the periods presented reflect all adjustments, consisting of only normal, recurring adjustments, necessary to fairly state the Company’s financial position, results of operations and cash flows. The unaudited condensed consolidated financial statements for the interim periods are not necessarily indicative of results for the full year. The preparation of these unaudited condensed consolidated financial statements requires the Company to make estimates and judgments that affect the amounts reported in the financial statements and the accompanying notes. The Company’s actual results may differ from these estimates under different assumptions or conditions. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. The most significant estimates in the Company’s unaudited condensed consolidated financial statements relate to the valuation of stock-based compensation, the valuation of licenses, the fair value of warrant liabilities and the valuation allowance of deferred tax assets resulting from net operating losses. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. The Company assesses and updates estimates each period to reflect current information, such as the economic considerations related to the impact that the novel coronavirus disease (“COVID-19”) could have on its significant accounting estimates. Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected. Fair Value Measurements Fair value measurements are based on the premise that fair value is an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the following three-tier fair value hierarchy has been used in determining the inputs used in measuring fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities on the reporting date. Level 2 – Pricing inputs are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Pricing inputs are generally unobservable and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require management’s judgment or estimation of assumptions that market participants would use in pricing the assets or liabilities. The fair values are therefore determined using factors that involve considerable judgment and interpretations, including but not limited to private and public comparables, third-party appraisals, discounted cash flow models, and fund manager estimates. Financial instruments measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Management’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The use of different assumptions and/or estimation methodologies may have a material effect on estimated fair values. Accordingly, the fair value estimates disclosed, or initial amounts recorded may not be indicative of the amount that the Company or holders of the instruments could realize in a current market exchange. Net Loss Per Share Basic net loss per share is computed by dividing net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted net loss per share includes the dilutive effect, if any, from the potential exercise or conversion of securities, such as convertible debt, warrants and stock options that would result in the issuance of incremental shares of common stock. In computing the basic and diluted net loss per share applicable to common stockholders, the weighted average number of shares remains the same for both calculations due to the fact that when a net loss exists, dilutive shares are not included in the calculation as the impact is anti-dilutive. The following potentially dilutive securities outstanding as of June 30, 2022 and 2021 have been excluded from the computation of diluted weighted average shares outstanding, as they would be anti-dilutive: As of June 30, 2022 2021 Common stock purchase options 8,212,778 7,002,421 Restricted stock units — 10,000 Common stock purchase warrants 180,000 820,939 8,392,778 7,833,360 Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The adoption of this standard as of October 1, 2021, did not impact the Company’s consolidated financial statements and related disclosures. In November 2021, the FASB issued ASU No. 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance”, which amends disclosures to increase transparency of government assistance, including (i) the types of assistance, (ii) accounting for the assistance and (iii) the effect of the assistance on an entity’s financial statements. The standard is effective for all business entities for annual periods beginning after December 15, 2021. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In June 2022, the FASB issued ASU 2022-03, “ASC Subtopic 820 Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” (“ASU 2022-03”). ASU 2022-03 amends ASC 820 to clarify that a contractual sales restriction is not considered in measuring an equity security at fair value and to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. ASU 2022-03 applies to both holders and issuers of equity and equity-linked securities measured at fair value. The amendments in this ASU are effective for the Company in fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Company is currently evaluating the impact of this pronouncement on its consolidated financial statements and related disclosures. |
Other Prepaid Expenses and Othe
Other Prepaid Expenses and Other Current Assets | 9 Months Ended |
Jun. 30, 2022 | |
Other Prepaid Expenses and Other Current Assets | |
Other Prepaid Expenses and Other Current Assets | 3. Other Prepaid Expenses and Other Current Assets The Company’s prepaid expenses and other current assets consisted of the following: As of June 30, As of September 30, 2022 2021 Prepaid research and development expense $ 670,420 $ 583,267 Prepaid rent — 172,518 Other prepaid expenses and other current assets 643,637 780,401 Total $ 1,314,057 $ 1,536,186 |
Equipment
Equipment | 9 Months Ended |
Jun. 30, 2022 | |
Equipment | |
Equipment | 4. Equipment The Company’s equipment consisted of the following: As of June 30, As of September 30, 2022 2021 Laboratory equipment $ 3,182,369 $ 2,737,390 Office equipment 259,978 259,978 Leasehold improvements 10,128 — Total 3,452,475 2,997,368 Accumulated depreciation (1,101,189) (533,486) Property, plant and equipment, net $ 2,351,286 $ 2,463,882 Depreciation expense for the three months ended June 30, 2022 and 2021 was approximately $0.2 million and $0.1 million, respectively. Depreciation expense for the nine months ended June 30, 2022 and 2021 was approximately $0.6 million and $0.3 million, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Jun. 30, 2022 | |
Accrued Expenses and Other Current Liabilities | |
Accrued Expenses and Other Current Liabilities | 5. Accrued Expenses and Other Current Liabilities The Company’s accrued expenses and other current liabilities consisted of the following: As of June 30, As of September 30, 2022 2021 Accrued compensation and benefits $ 959,405 $ 880,707 Accrued consulting settlement 75,000 200,000 Accrued professional fees 441,116 299,557 Accrued research and development 182,410 297,047 Accrued franchise tax 123,546 30,720 Other accrued expenses 87,383 39,715 Total $ 1,868,860 $ 1,747,746 |
Notes Payable
Notes Payable | 9 Months Ended |
Jun. 30, 2022 | |
Notes Payable | |
Notes Payable | 6. Notes Payable Insurance Note Payable As of September 30, 2021, the Company had the following insurance note payable outstanding: Stated Balance at Balance at Maturity Interest Original June 30, September 30, Date Rate Principal 2022 2021 Insurance Note Payable 2021 Insurance Note January 2022 4.99 % $ 391,625 $ — $ 148,385 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity | |
Stockholders' Equity | 7. Stockholders’ Equity Warrants Below is a summary of the Company’s issued and outstanding warrants as of June 30, 2022: Warrants Expiration date Exercise Price Outstanding July 6, 2023 8.73 105,000 September 20, 2024 6.50 75,000 180,000 Weighted Weighted Average Average Remaining Exercise Contractual Life Warrants Price (in years) Outstanding as of September 30, 2021 895,939 $ 18.35 Expired (715,939) 21.01 Outstanding as of June 30, 2022 180,000 7.80 1.5 Exercisable as of June 30, 2022 180,000 $ 7.80 1.5 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Jun. 30, 2022 | |
Stock-Based Compensation | |
Stock-Based Compensation | 8. Stock-Based Compensation As of June 30, 2022, an aggregate of 6,018,136 shares of common stock were authorized under the Company’s 2019 Stock Incentive Plan (the “2019 Plan”), subject to an “evergreen” provision that will automatically increase the maximum number of shares of common stock that may be issued under the term of the 2019 Plan. As of June 30, 2022, 864,396 common shares were available for future grants under the 2019 Plan. As of June 30, 2022, 291,667 shares of common stock were authorized under the Company’s 2016 Consolidated Stock Incentive Plan (the “2016 Plan”) and 147,041 common shares were available for future grants under the 2016 Plan. The Company recorded stock-based compensation expense in the following expense categories of its unaudited condensed consolidated statements of operations for the three and nine months ended June 30, 2022 and 2021: Three Months ended June 30, Nine Months Ended June 30, 2022 2021 2022 2021 General and administrative $ 507,435 $ 574,353 $ 1,389,227 $ 1,865,512 Research and development 133,611 50,829 997,851 878,363 Total $ 641,046 $ 625,182 $ 2,387,078 $ 2,743,875 Stock Options Below is a table summarizing the options issued and outstanding as of and for the nine months ended June 30, 2022: Weighted Weighted Average Total Average Remaining Aggregate Exercise Contractual Life Intrinsic Stock Options Price (in years) Value Outstanding at September 30, 2021 7,397,154 $ 3.13 Granted 1,510,366 2.14 Exercised (42,250) 0.00 Forfeited (652,492) 4.67 Outstanding at June 30, 2022 8,212,778 2.84 6.9 $ 3,430,544 Exercisable as of June 30, 2022 5,628,339 $ 2.49 6.0 $ 3,429,894 As of June 30, 2022, unrecognized compensation costs associated with the stock options of $3.1 million will be recognized over an estimated weighted-average amortization period of 1.4 years. The intrinsic value of options exercised during the nine months ended June 30, 2022 and 2021 was $0.1 million and $0.06 million, respectively. The weighted average grant date fair value of options granted during the nine months ended June 30, 2022 and 2021 was $1.40 and $4.29, respectively. Key assumptions used to estimate the fair value of the stock options granted during the nine months ended June 30, 2022 and 2021 included: Nine Months Ended June 30, 2022 2021 Expected term of options (years) 5.1 - 6.1 5.5 - 7.0 Expected common stock price volatility 73.8% - 77.2% 83% - 83.7% Risk-free interest rate 1.1% - 3.1% 0.6% - 1.3% Expected dividend yield 0% 0% Restricted Stock A summary of the changes in the unvested restricted stock during the nine months ended June 30, 2022 is as follows: Weighted Average Grant Date Unvested Restricted Fair Value Stock Price Unvested as of September 30, 2021 — $ — Granted 4,441 3.94 Vested (4,441) 3.94 Unvested as of June 30, 2022 — — Total unrecognized expense remaining $ — Weighted-average years expected to be recognized over — Restricted Stock Units Below is a table summarizing the restricted stock units granted and outstanding as of and for the nine months ended June 30, 2022: Weighted Average Grant Date Restricted Stock Fair Value Units Price Unvested as of September 30, 2021 10,000 $ 5.09 Forfeited (10,000) 5.09 Unvested as of June 30, 2022 — — Total unrecognized expense remaining $ — Weighted-average years expected to be recognized over — |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | 9. Commitments and Contingencies Litigation The Company has become involved in certain legal proceedings and claims which arise in the normal course of business. The Company believes that an adverse outcome is unlikely, and it cannot reasonably estimate the potential loss at this point. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the Company’s results of operations, prospects, cash flows, financial position and brand. Costs associated with the Company’s involvement in legal proceedings are expensed as incurred. Securities Litigation On February 14, 2018, plaintiff Jeevesh Khanna, commenced an action in the Southern District of New York, against Ohr Pharmaceutical, Inc. (“Ohr”), which entered into a merger agreement with NeuBase Therapeutics, Inc. on January 2, 2019 and which merger closed on July 12, 2019, and several of its current and former officers and directors, alleging that they violated federal securities laws between June 24, 2014 and January 4, 2018. On August 7, 2018, the lead plaintiffs, now George Lehman and Insured Benefit Plans, Inc. filed an amended complaint, alleging a putative class period of April 8, 2014 through January 4, 2018. The plaintiffs did not quantify any alleged damages in their complaint, but, in addition to attorneys’ fees and costs, they seek to maintain the action as a class action and to recover damages on behalf of themselves and other persons who purchased or otherwise acquired Ohr common stock during the putative class period and purportedly suffered financial harm as a result. Ohr and the individuals dispute these claims and are defending the matter vigorously. On September 17, 2018, Ohr filed a motion to dismiss the complaint. On September 20, 2019, the district court issued an opinion and order granting the motion to dismiss. On October 23, 2019, the plaintiffs filed a notice of appeal of that order dismissing the action. After full briefing and oral argument, on October 9, 2020, the U.S. Court of Appeals for the Second Circuit issued a summary order affirming the district court’s order granting the motion to dismiss and remanding the action to the district court to make a determination on the record related to plaintiffs’ request for leave to file an amended complaint. On remand, the district court denied plaintiffs’ subsequent request to amend and dismissed with prejudice plaintiffs’ claims. On December 16, 2020, plaintiffs filed a notice of appeal of that order denying plaintiffs leave to amend. On December 16, 2021, the Second Circuit affirmed the decision and order of the district court denying plaintiffs’ motion for leave to amend, thereby dismissing the appeal and action in its entirety. Plaintiffs have neither sought reconsideration of the Second Circuit’s decision nor filed a writ of certiorari for review by the Supreme Court. This matter is now considered closed. Derivative Lawsuit On May 3, 2018, plaintiff Adele J. Barke, derivatively on behalf of Ohr, commenced an action against Michael Ferguson, Orin Hirschman, Thomas M. Riedhammer, June Almenoff and Jason Slakter in the Supreme Court, State of New York, alleging that the action was brought in the right and for the benefit of Ohr seeking to remedy their “breach of fiduciary duties, corporate waste and unjust enrichment that occurred between June 24, 2014 and the present.” It does not quantify any alleged damages. On March 30, 2022, plaintiff filed a notice of voluntary dismissal of the complaint in this action. This matter is now considered closed. Joint Proxy Statement Lawsuit Following the issuance of the preliminary joint proxy statement/prospectus related to the merger of the Company and Ohr, on March 18, 2019, the Gomez Action was filed by an individual shareholder in the United States District Court for the Southern District of New York against Ohr and its board of directors. The plaintiff in the Gomez Action alleges that the preliminary joint proxy/prospectus statement filed by Ohr with the SEC on March 8, 2019 contained false and misleading statements and omitted material information in violation of Section 14(a) of the Exchange Act and SEC Rule 14a-9 promulgated thereunder, and further that the individual defendants are liable for those alleged misstatements and omissions under Section 20(a) of the Exchange Act. On March 19, 2019, the Barke Action was filed in the United States District Court for the Southern District of New York asserting similar Section 14(a) and Section 20(a) claims against Ohr’s board of directors and additionally naming NeuBase and Ohr Acquisition Corp., but not Ohr, as defendants. On March 20, 2019, the Wheby Action was filed in the United States District Court for District of Delaware asserting similar claims under Section 14(a) and Section 20(a) and naming as defendants Ohr and its board of directors, NeuBase, and Ohr Acquisition Corp. On March 20, 2019, the Lowinger Action was filed in the Court of Chancery of the State of Delaware asserting a breach of fiduciary duty claim against Ohr’s board of directors arising out of the same facts and circumstances regarding certain alleged omissions in the preliminary joint proxy/prospectus statement. On April 4, 2019, the Garaygordobil Action was filed in the United States District Court for the Southern District of New York asserting similar Section 14(a) and Section 20(a) claims against Ohr and its board of directors. Each of the Gomez, Barke, Garaygordobil, and Lowinger Actions have been dismissed, and on July 12, 2019, the Company and Ohr consummated the Merger. On March 23, 2022, plaintiffs in the Wheby Action filed a notice of voluntary dismissal of the complaint and this case was closed. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2022 | |
Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the year ended September 30, 2021 included in the Company’s Annual Report on Form 10-K (the “Annual Report”) filed with the U.S. Securities and Exchange Commission (“SEC”) on December 23, 2021. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated during the consolidation process. The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, the accompanying unaudited condensed consolidated financial statements for the periods presented reflect all adjustments, consisting of only normal, recurring adjustments, necessary to fairly state the Company’s financial position, results of operations and cash flows. The unaudited condensed consolidated financial statements for the interim periods are not necessarily indicative of results for the full year. The preparation of these unaudited condensed consolidated financial statements requires the Company to make estimates and judgments that affect the amounts reported in the financial statements and the accompanying notes. The Company’s actual results may differ from these estimates under different assumptions or conditions. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. The most significant estimates in the Company’s unaudited condensed consolidated financial statements relate to the valuation of stock-based compensation, the valuation of licenses, the fair value of warrant liabilities and the valuation allowance of deferred tax assets resulting from net operating losses. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. The Company assesses and updates estimates each period to reflect current information, such as the economic considerations related to the impact that the novel coronavirus disease (“COVID-19”) could have on its significant accounting estimates. Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected. |
Fair Value Measurements | Fair Value Measurements Fair value measurements are based on the premise that fair value is an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the following three-tier fair value hierarchy has been used in determining the inputs used in measuring fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities on the reporting date. Level 2 – Pricing inputs are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Pricing inputs are generally unobservable and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require management’s judgment or estimation of assumptions that market participants would use in pricing the assets or liabilities. The fair values are therefore determined using factors that involve considerable judgment and interpretations, including but not limited to private and public comparables, third-party appraisals, discounted cash flow models, and fund manager estimates. Financial instruments measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Management’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The use of different assumptions and/or estimation methodologies may have a material effect on estimated fair values. Accordingly, the fair value estimates disclosed, or initial amounts recorded may not be indicative of the amount that the Company or holders of the instruments could realize in a current market exchange. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted net loss per share includes the dilutive effect, if any, from the potential exercise or conversion of securities, such as convertible debt, warrants and stock options that would result in the issuance of incremental shares of common stock. In computing the basic and diluted net loss per share applicable to common stockholders, the weighted average number of shares remains the same for both calculations due to the fact that when a net loss exists, dilutive shares are not included in the calculation as the impact is anti-dilutive. The following potentially dilutive securities outstanding as of June 30, 2022 and 2021 have been excluded from the computation of diluted weighted average shares outstanding, as they would be anti-dilutive: As of June 30, 2022 2021 Common stock purchase options 8,212,778 7,002,421 Restricted stock units — 10,000 Common stock purchase warrants 180,000 820,939 8,392,778 7,833,360 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The adoption of this standard as of October 1, 2021, did not impact the Company’s consolidated financial statements and related disclosures. In November 2021, the FASB issued ASU No. 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance”, which amends disclosures to increase transparency of government assistance, including (i) the types of assistance, (ii) accounting for the assistance and (iii) the effect of the assistance on an entity’s financial statements. The standard is effective for all business entities for annual periods beginning after December 15, 2021. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In June 2022, the FASB issued ASU 2022-03, “ASC Subtopic 820 Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” (“ASU 2022-03”). ASU 2022-03 amends ASC 820 to clarify that a contractual sales restriction is not considered in measuring an equity security at fair value and to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. ASU 2022-03 applies to both holders and issuers of equity and equity-linked securities measured at fair value. The amendments in this ASU are effective for the Company in fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Company is currently evaluating the impact of this pronouncement on its consolidated financial statements and related disclosures. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Significant Accounting Policies | |
Schedule of anti dilutive securities excluded from the computation of diluted weighted average shares | As of June 30, 2022 2021 Common stock purchase options 8,212,778 7,002,421 Restricted stock units — 10,000 Common stock purchase warrants 180,000 820,939 8,392,778 7,833,360 |
Other Prepaid Expenses and Ot_2
Other Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Other Prepaid Expenses and Other Current Assets | |
Summary of prepaid expenses and other current assets | As of June 30, As of September 30, 2022 2021 Prepaid research and development expense $ 670,420 $ 583,267 Prepaid rent — 172,518 Other prepaid expenses and other current assets 643,637 780,401 Total $ 1,314,057 $ 1,536,186 |
Equipment (Tables)
Equipment (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Equipment | |
Schedule of equipment | As of June 30, As of September 30, 2022 2021 Laboratory equipment $ 3,182,369 $ 2,737,390 Office equipment 259,978 259,978 Leasehold improvements 10,128 — Total 3,452,475 2,997,368 Accumulated depreciation (1,101,189) (533,486) Property, plant and equipment, net $ 2,351,286 $ 2,463,882 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Accrued Expenses and Other Current Liabilities | |
Schedule of accrued expenses and other current liabilities | As of June 30, As of September 30, 2022 2021 Accrued compensation and benefits $ 959,405 $ 880,707 Accrued consulting settlement 75,000 200,000 Accrued professional fees 441,116 299,557 Accrued research and development 182,410 297,047 Accrued franchise tax 123,546 30,720 Other accrued expenses 87,383 39,715 Total $ 1,868,860 $ 1,747,746 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Notes Payable | |
Schedule of insurance notes payable outstanding | As of September 30, 2021, the Company had the following insurance note payable outstanding: Stated Balance at Balance at Maturity Interest Original June 30, September 30, Date Rate Principal 2022 2021 Insurance Note Payable 2021 Insurance Note January 2022 4.99 % $ 391,625 $ — $ 148,385 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity | |
Schedule of warrants issued and outstanding | Warrants Expiration date Exercise Price Outstanding July 6, 2023 8.73 105,000 September 20, 2024 6.50 75,000 180,000 Weighted Weighted Average Average Remaining Exercise Contractual Life Warrants Price (in years) Outstanding as of September 30, 2021 895,939 $ 18.35 Expired (715,939) 21.01 Outstanding as of June 30, 2022 180,000 7.80 1.5 Exercisable as of June 30, 2022 180,000 $ 7.80 1.5 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Stock-Based Compensation | |
Schedule of stock-based compensation expense | The Company recorded stock-based compensation expense in the following expense categories of its unaudited condensed consolidated statements of operations for the three and nine months ended June 30, 2022 and 2021: Three Months ended June 30, Nine Months Ended June 30, 2022 2021 2022 2021 General and administrative $ 507,435 $ 574,353 $ 1,389,227 $ 1,865,512 Research and development 133,611 50,829 997,851 878,363 Total $ 641,046 $ 625,182 $ 2,387,078 $ 2,743,875 |
Summary of stock options issued and outstanding | Below is a table summarizing the options issued and outstanding as of and for the nine months ended June 30, 2022: Weighted Weighted Average Total Average Remaining Aggregate Exercise Contractual Life Intrinsic Stock Options Price (in years) Value Outstanding at September 30, 2021 7,397,154 $ 3.13 Granted 1,510,366 2.14 Exercised (42,250) 0.00 Forfeited (652,492) 4.67 Outstanding at June 30, 2022 8,212,778 2.84 6.9 $ 3,430,544 Exercisable as of June 30, 2022 5,628,339 $ 2.49 6.0 $ 3,429,894 |
Schedule of key assumptions used to estimate the fair value of the stock options granted | Key assumptions used to estimate the fair value of the stock options granted during the nine months ended June 30, 2022 and 2021 included: Nine Months Ended June 30, 2022 2021 Expected term of options (years) 5.1 - 6.1 5.5 - 7.0 Expected common stock price volatility 73.8% - 77.2% 83% - 83.7% Risk-free interest rate 1.1% - 3.1% 0.6% - 1.3% Expected dividend yield 0% 0% |
Summary of changes in the outstanding restricted stock | A summary of the changes in the unvested restricted stock during the nine months ended June 30, 2022 is as follows: Weighted Average Grant Date Unvested Restricted Fair Value Stock Price Unvested as of September 30, 2021 — $ — Granted 4,441 3.94 Vested (4,441) 3.94 Unvested as of June 30, 2022 — — Total unrecognized expense remaining $ — Weighted-average years expected to be recognized over — |
Summary of restricted stock units granted and outstanding | Below is a table summarizing the restricted stock units granted and outstanding as of and for the nine months ended June 30, 2022: Weighted Average Grant Date Restricted Stock Fair Value Units Price Unvested as of September 30, 2021 10,000 $ 5.09 Forfeited (10,000) 5.09 Unvested as of June 30, 2022 — — Total unrecognized expense remaining $ — Weighted-average years expected to be recognized over — |
Organization and Description _2
Organization and Description of Business (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | |
Cash and cash equivalents | $ 29,846,825 | $ 29,846,825 | $ 52,893,387 | ||
Loss from operations | (8,360,608) | $ (8,839,094) | (25,594,958) | $ (19,396,257) | |
Private NeuBase | |||||
Cash and cash equivalents | $ 29,800,000 | 29,800,000 | |||
Loss from operations | 25,600,000 | ||||
Used cash in operating activities | $ 22,400,000 |
Significant Accounting Polici_4
Significant Accounting Policies - Potentially dilutive securities outstanding (Details) - shares | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 8,392,778 | 7,833,360 |
Common stock purchase options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 8,212,778 | 7,002,421 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 10,000 | |
Common stock purchase warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 180,000 | 820,939 |
Other Prepaid Expenses and Ot_3
Other Prepaid Expenses and Other Current Assets (Details) - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Other Prepaid Expenses and Other Current Assets | ||
Prepaid research and development expense | $ 670,420 | $ 583,267 |
Prepaid rent | 172,518 | |
Other prepaid expenses and other current assets | 643,637 | 780,401 |
Total | $ 1,314,057 | $ 1,536,186 |
Equipment (Details)
Equipment (Details) - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Property, Plant and Equipment, Gross | $ 3,452,475 | $ 2,997,368 |
Accumulated depreciation | (1,101,189) | (533,486) |
Property, plant and equipment, net | 2,351,286 | 2,463,882 |
Laboratory equipment | ||
Property, Plant and Equipment, Gross | 3,182,369 | 2,737,390 |
Office equipment | ||
Property, Plant and Equipment, Gross | 259,978 | $ 259,978 |
Leasehold improvements | ||
Property, Plant and Equipment, Gross | $ 10,128 |
Equipment - Additional Informat
Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equipment | ||||
Depreciation | $ 200 | $ 100 | $ 600 | $ 300 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Accrued Expenses and Other Current Liabilities | ||
Accrued compensation and benefits | $ 959,405 | $ 880,707 |
Accrued consulting settlement | 75,000 | 200,000 |
Accrued professional fees | 441,116 | 299,557 |
Accrued research and development | 182,410 | 297,047 |
Accrued franchise tax | 123,546 | 30,720 |
Other accrued expenses | 87,383 | 39,715 |
Total | $ 1,868,860 | $ 1,747,746 |
Notes Payable - Insurance notes
Notes Payable - Insurance notes payable outstanding (Details) - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Short-term Debt [Line Items] | ||
Outstanding balance | $ 0 | $ 148,385 |
2021 Insurance Note | ||
Short-term Debt [Line Items] | ||
Stated Interest Rate (as a percent) | 4.99% | |
Original Principal | $ 391,625 | |
Outstanding balance | $ 148,385 |
Stockholders' Equity - Warrants
Stockholders' Equity - Warrants issued and outstanding (Details) | 9 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Warrants [Roll Forward] | |
Warrants, Outstanding at the beginning of the period | shares | 895,939 |
Warrants, Expired | shares | (715,939) |
Warrants, Outstanding at the end of the period | shares | 180,000 |
Warrants, Exercisable at the end of the period | shares | 180,000 |
Weighted average exercise price, Outstanding at the beginning of the period | $ / shares | $ 18.35 |
Weighted average exercise price, Expired | $ / shares | 21.01 |
Weighted average exercise price, Outstanding at the end of the period | $ / shares | 7.80 |
Weighted average exercise price, Exercisable at the end of the period | $ / shares | $ 7.80 |
Weighted average remaining contractual term, Outstanding at the end of the period | 1 year 6 months |
Weighted average remaining contractual term, Exercisable at the end of the period | 1 year 6 months |
July 6, 2023 | |
Warrants [Roll Forward] | |
Exercise price of warrants (in dollars per share) | $ / shares | $ 8.73 |
Warrants, Outstanding at the end of the period | shares | 105,000 |
September 20, 2024 | |
Warrants [Roll Forward] | |
Exercise price of warrants (in dollars per share) | $ / shares | $ 6.50 |
Warrants, Outstanding at the end of the period | shares | 75,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based compensation expense (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Stock-Based Compensation expense | ||||
Total stock based compensation for options granted | $ 641,046 | $ 625,182 | $ 2,387,078 | $ 2,743,875 |
General and administrative | ||||
Stock-Based Compensation expense | ||||
Total stock based compensation for options granted | 507,435 | 574,353 | 1,389,227 | 1,865,512 |
Research and development | ||||
Stock-Based Compensation expense | ||||
Total stock based compensation for options granted | $ 133,611 | $ 50,829 | $ 997,851 | $ 878,363 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock options (Details) - Stock Options | 9 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Stock Options | |
Outstanding, Beginning balance | shares | 7,397,154 |
Granted | shares | 1,510,366 |
Exercised | shares | (42,250) |
Forfeited | shares | (652,492) |
Outstanding, Ending balance | shares | 8,212,778 |
Exercisable | shares | 5,628,339 |
Weighted Average Exercise Price per Share | |
Outstanding, Beginning balance | $ / shares | $ 3.13 |
Granted | $ / shares | 2.14 |
Exercised | $ / shares | 0 |
Forfeited | $ / shares | 4.67 |
Outstanding, Ending balance | $ / shares | 2.84 |
Exercisable | $ / shares | $ 2.49 |
Weighted Average remaining contractual term (years) and Aggregate Intrinsic Value | |
Outstanding | 6 years 10 months 24 days |
Exercisable | 6 years |
Outstanding | $ | $ 3,430,544 |
Exercisable | $ | $ 3,429,894 |
Stock-Based Compensation - Key
Stock-Based Compensation - Key Assumptions Estimate Fair Value Of Stock Options (Details) | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Key assumptions used to estimate the fair value of the stock options granted | ||
Expected dividend yield | 0% | 0% |
Minimum | ||
Key assumptions used to estimate the fair value of the stock options granted | ||
Expected term of options (years) | 5 years 1 month 6 days | 5 years 6 months |
Expected common stock price volatility, minimum | 73.80% | 83% |
Risk-free interest rate, minimum | 1.10% | 0.60% |
Maximum | ||
Key assumptions used to estimate the fair value of the stock options granted | ||
Expected term of options (years) | 6 years 1 month 6 days | 7 years |
Expected common stock price volatility, maximum | 77.20% | 83.70% |
Risk-free interest rate, maximum | 3.10% | 1.30% |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2022 | Sep. 30, 2021 | |
Stock-Based Compensation | ||
Weighted-average years expected to be recognized over | 1 year 4 months 24 days | |
Unvested restricted stock | ||
Stock-Based Compensation | ||
Unvested, Beginning balance | 0 | |
Granted | 4,441 | |
Vested | 4,441 | |
Unvested, Ending balance | 0 | |
Total unrecognized expense remaining | $ 0 | |
Weighted-average years expected to be recognized over | 0 years | |
Weighted Average Grant Date Fair Value Price | ||
Unvested, Beginning balance | $ 0 | $ 0 |
Granted | 3.94 | |
Vested | 3.94 | |
Unvested, Ending balance | $ 0 | 0 |
Restricted stock units | ||
Stock-Based Compensation | ||
Unvested, Beginning balance | 10,000 | |
Forfeited | (10,000) | |
Weighted-average years expected to be recognized over | 0 years | |
Weighted Average Grant Date Fair Value Price | ||
Unvested, Beginning balance | 5.09 | |
Forfeited | $ 5.09 | |
Unvested, Ending balance | $ 5.09 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional information (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Stock-Based Compensation | ||
Unrecognized compensation costs | $ 3,100 | |
Weighted-average amortization period | 1 year 4 months 24 days | |
Intrinsic value of stock options exercised | $ 100 | $ 60 |
Weighted average grant date fair value of options granted | $ 1.40 | $ 4.29 |
Unvested restricted stock | ||
Stock-Based Compensation | ||
Weighted-average amortization period | 0 years | |
2016 Plan | ||
Stock-Based Compensation | ||
Number of common stock authorized | 291,667 | |
Common shares were available for future grants | 147,041 | |
2019 Plan | ||
Stock-Based Compensation | ||
Number of common stock authorized | 6,018,136 | |
Common shares were available for future grants | 864,396 |