Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2022 | Feb. 10, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 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, $0.0001 par value per share | |
Trading Symbol | NBSE | |
Security Exchange Name | NASDAQ | |
Entity's Reporting Status Current | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33,155,356 | |
Entity Central Index Key | 0001173281 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 17,386,326 | $ 23,152,663 |
Prepaid insurance | 188,266 | 319,699 |
Other prepaid expenses and current assets | 391,655 | 1,176,303 |
Total current assets | 17,966,247 | 24,648,665 |
EQUIPMENT, net | 1,934,100 | 2,156,851 |
OTHER ASSETS | ||
Right-of-use asset, operating lease asset | 5,409,574 | 5,614,698 |
Security deposit | 273,215 | 273,215 |
Total other assets | 5,682,789 | 5,887,913 |
TOTAL ASSETS | 25,583,136 | 32,693,429 |
CURRENT LIABILITIES | ||
Accounts payable | 369,505 | 1,843,027 |
Accrued expenses and other current liabilities | 1,227,656 | 1,662,660 |
Operating lease liabilities | 469,118 | 553,066 |
Finance lease liabilities | 78,987 | 107,632 |
Total current liabilities | 2,145,266 | 4,166,385 |
Long-term operating lease liability | 5,214,074 | 5,335,164 |
TOTAL LIABILITIES | 7,359,340 | 9,501,549 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding as of December 31, 2022 and September 30, 2022 | ||
Common stock, $0.0001 par value; 250,000,000 shares authorized; 33,155,356 and 33,008,657 shares issued and outstanding as of December 31, 2022 and September 30, 2022, respectively | 3,315 | 3,300 |
Additional paid-in capital | 125,333,873 | 125,932,933 |
Accumulated deficit | (107,113,392) | (102,744,353) |
TOTAL STOCKHOLDERS' EQUITY | 18,223,796 | 23,191,880 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 25,583,136 | $ 32,693,429 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Sep. 30, 2022 |
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 | 33,155,356 | 33,008,657 |
Common stock, outstanding | 33,155,356 | 33,008,657 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING EXPENSES | ||
General and administrative | $ 2,596,412 | $ 2,935,710 |
Research and development | 1,351,407 | 4,369,257 |
Restructuring | 652,451 | 0 |
TOTAL OPERATING EXPENSES | 4,600,270 | 7,304,967 |
LOSS FROM OPERATIONS | (4,600,270) | (7,304,967) |
OTHER INCOME (EXPENSE) | ||
Interest expense | (1,868) | (15,219) |
Interest income | 147,604 | 1,254 |
Equity in losses on equity method investment | 0 | (415,744) |
Other income, net | 85,495 | 5,860 |
Total other income (expense), net | 231,231 | (423,849) |
NET LOSS | $ (4,369,039) | $ (7,728,816) |
BASIC LOSS PER SHARE (in dollars per share) | $ (0.13) | $ (0.24) |
DILUTED LOSS PER SHARE (in dollars per share) | $ (0.13) | $ (0.24) |
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||
BASIC | 33,015,035 | 32,725,718 |
DILUTED | 33,015,035 | 32,725,718 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
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 | $ 0 | 793,204 | 0 | 793,204 |
Issuance of stock | $ 0 | 0 | 0 | 0 |
Issuance of stock (in shares) | 4,441 | |||
Exercise of stock options | $ 4 | 38 | 0 | 42 |
Exercise of stock options (in shares) | 42,250 | |||
Net loss | $ 0 | 0 | (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, 2022 | $ 3,300 | 125,932,933 | (102,744,353) | 23,191,880 |
Balance, beginning, shares at Sep. 30, 2022 | 33,008,657 | |||
Stock-based compensation expense | $ 0 | (509,072) | 0 | (509,072) |
Issuance of common stock and commitment obligation as fee for future financing | $ (15) | 89,988 | 0 | 89,973 |
Issuance of common stock and commitment obligation as fee for future financing (in shares) | 146,699 | |||
Net loss | $ 0 | 0 | (4,369,039) | (4,369,039) |
Balance, ending at Dec. 31, 2022 | $ 3,315 | $ 125,333,873 | $ (107,113,392) | $ 18,223,796 |
Balance, ending, shares at Dec. 31, 2022 | 33,155,356 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | ||
Net loss | $ (4,369,039) | $ (7,728,816) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Stock-based compensation | (509,072) | 793,204 |
Depreciation and amortization | 198,563 | 181,490 |
Loss on marketable securities | 0 | 30 |
Loss on disposal of fixed assets | 65,532 | 7,595 |
Equity in losses on equity method investment | 0 | 415,744 |
Amortization of right-of-use assets | 120,094 | 0 |
Non-cash expense from right-of-use assets | 0 | 103,599 |
Changes in operating assets and liabilities | ||
Prepaid insurance, other prepaid expenses and current assets | 924,581 | 877,266 |
Other long-term assets | 0 | 160,423 |
Accounts payable | (1,496,850) | (680,142) |
Accrued expenses and other current liabilities | (501,649) | 665,134 |
Operating lease liability | (120,008) | (63,973) |
Net cash used in operating activities | (5,687,848) | (5,268,446) |
Cash flows from investing activities | ||
Purchase of laboratory and office equipment | (49,844) | (123,876) |
Purchase of marketable securities | 0 | (14,986,818) |
Sale of marketable securities | 0 | 14,986,788 |
Net cash used in investing activities | (49,844) | (123,906) |
Cash flows from financing activities | ||
Principal payment of financed insurance | 0 | (148,385) |
Principal payment of finance lease liability | (28,645) | (26,632) |
Proceeds from exercise of stock options | 0 | 42 |
Net cash used in financing activities | (28,645) | (174,975) |
Net decrease in cash and cash equivalents | (5,766,337) | (5,567,327) |
Cash and cash equivalents, beginning of period | 23,152,663 | 52,893,387 |
Cash and cash equivalents, end of period | 17,386,326 | 47,326,060 |
Non-cash investing and financing activities: | ||
Issuance of common stock and commitment obligation as fee for future financing | 30,000 | 0 |
Equity issuance costs, unpaid | 59,973 | 0 |
Sale of laboratory equipment in other prepaid expenses and current assets | 8,500 | 0 |
Impairment of right-of-use asset and lease liability | 85,030 | 0 |
Purchases of laboratory and office equipment in accounts payable | $ 0 | $ 65,970 |
Organization, Description of Bu
Organization, Description of Business and Liquidity | 3 Months Ended |
Dec. 31, 2022 | |
Organization, Description of Business and Liquidity | |
Organization, Description of Business and Liquidity | 1. Organization, Description of Business and Liquidity NeuBase Therapeutics, Inc. and its 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. NeuBase plans to use its platform to address diseases which have a genetic source, with an initial focus on gene silencing in myotonic dystrophy type 1 (“DM1”), Huntington’s disease (“HD”), and oncology, and in gene editing 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 disclosed programs are NT-0100 in HD, NT-0200 in DM1 and NT-0300 in KRAS The NT-0100 program is a PATrOL™-enabled therapeutic program being developed to target the mutant expansion in the HD DNA or RNA. The NT-0100 program includes proprietary PNAs which have the potential to be highly selective for the mutant copy of the gene versus the wild-type allele, the expectation being that the resultant therapy will be applicable for all HD patients as it directly targets the expansion itself, and the potential to be delivered systemically and address the brain and whole-body manifestations of the disease. PATrOL™-enabled drugs also have the unique ability to open DNA and 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 RNA. 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 KRAS In October 2022, the Company announced plans to expand its focus to include the advancement of the differentiated gene editing capabilities of its platform. The Company is currently identifying and evaluating multiple indications for potential future development. Liquidity and Going Concern The Company has had no revenues from product sales and has incurred operating losses since inception. As of December 31, 2022, the Company had $17.4 million in cash and cash equivalents, and during the three months ended December 31, 2022, incurred a loss from operations of $4.6 million and used $5.7 million of cash in operating activities. The Company expects to continue to incur substantial operating losses and negative cash flows from operations for the foreseeable future and may never become profitable. Accordingly, there are material risks and uncertainties that raised substantial doubt about the Company’s ability to continue as a going concern. In October 2022, as further discussed below, the Company announced a restructuring plan to reduce its operating expenses and extend its cash runway into the second quarter of calendar year 2024 based on current operating plans and estimates. Management believes it is probable that the restructuring plan will be effectively implemented within the next twelve months and that the restructuring plan, when implemented, will mitigate the conditions that gave rise to substantial doubt about the Company’s ability to continue as a going concern. Because the Company has sufficient resources on hand to fund operations through at least the next twelve months from the date these consolidated financial statements were available to be issued, the substantial doubt has been alleviated. There can be no assurance that the Company will be successful in acquiring additional funding, that the Company’s projections of its future working capital needs will prove accurate, or that any additional funding would be sufficient to continue operations in future years. 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. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Dec. 31, 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, 2022 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 21, 2022. 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 considerations related to the impacts that the current economic environment 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 December 31, 2022 and 2021 have been excluded from the computation of diluted weighted average shares outstanding, as they would be anti-dilutive: As of December 31, 2022 2021 Common stock purchase options 7,310,686 7,197,404 Restricted stock units — 10,000 Common stock purchase warrants 180,000 875,312 7,490,686 8,082,716 Recent Accounting Pronouncements In May 2021, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2021-04, “Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40)” (“ASU 2021-04”). This guidance reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. ASU 2021-04 provides guidance for a modification or an exchange of a freestanding equity-classified written call option that is not within the scope of another Topic. It specifically addresses: (1) how an entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange; (2) how an entity should measure the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange; and (3) how an entity should recognize the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange. The Company adopted this guidance as of October 1, 2022, with no impact upon adoption. 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; therefore, it will be effective beginning with the Company’s financial statements issued for the fiscal year ending September 30, 2023. While the adoption of this guidance will not have an impact on the Company’s consolidated balance sheet or statement of operations, the adoption of this guidance may require additional annual disclosures in the Company’s financial statements for the fiscal year ending September 30, 2023, which the Company is currently in the process of assessing. 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. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). This guidance introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. ASU 2016-13 also provides updated guidance regarding the impairment of available-for-sale debt securities and includes additional disclosure requirements. The new guidance is effective for public business entities that meet the definition of a Smaller Reporting Company as defined by the Securities and Exchange Commission for interim and annual periods beginning after December 15, 2022. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. |
Other Prepaid Expenses and Curr
Other Prepaid Expenses and Current Assets | 3 Months Ended |
Dec. 31, 2022 | |
Other Prepaid Expenses and Current Assets | |
Other Prepaid Expenses and Current Assets | The Company’s prepaid expenses and other current assets consisted of the following: As of December 31, As of September 30, 2022 2022 Unaudited Audited Prepaid research and development expense $ 67,027 $ 805,542 Accounts receivable 150,000 — Franchise tax receivable — 127,715 Other prepaid expenses and current assets 174,628 243,046 Total $ 391,655 $ 1,176,303 |
Equipment
Equipment | 3 Months Ended |
Dec. 31, 2022 | |
Equipment | |
Equipment | 4. Equipment The Company’s equipment consisted of the following: As of December 31, As of September 30, 2022 2022 Unaudited Audited Laboratory equipment $ 3,048,579 $ 3,175,019 Office equipment 259,978 259,978 Leasehold improvements 17,958 17,958 Total 3,326,515 3,452,955 Accumulated depreciation and amortization (1,392,415) (1,296,104) Equipment, net $ 1,934,100 $ 2,156,851 Depreciation expense for the three months ended December 31, 2022 and 2021 was approximately $0.2 million and $0.2 million, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Dec. 31, 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 December 31, As of September 30, 2022 2022 Unaudited Audited Accrued compensation and benefits $ 171,572 $ 768,324 Accrued consulting settlement 225,000 150,000 Accrued professional fees 241,808 191,516 Accrued research and development 20,684 512,570 Accrued franchise tax 217,440 36,542 Accrued restructuring 316,032 — Other accrued expenses 35,120 3,708 Total $ 1,227,656 $ 1,662,660 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity | |
Stockholders' Equity | 6. Stockholders’ Equity Equity Purchase Agreement On December 28, 2022, the Company entered into a purchase agreement (the “Equity Purchase Agreement”) with Alumni Capital LP, a Delaware limited partnership (“Alumni Capital”), pursuant to which the Company agreed to sell, and Alumni Capital agreed to purchase, upon request of the Company in one or more transactions, a number of shares of the Company’s common stock providing aggregate gross proceeds to the Company of up to $3,000,000 (subject to the right, but not the obligation, of the Company to increase such amount up to $10,000,000 pursuant to the terms of the Equity Purchase Agreement) (the “Maximum Investment Amount”). The Equity Purchase Agreement expires upon the earlier of the aggregate gross proceeds from the sale of shares of common stock meeting the Maximum Investment Amount or December 28, 2024. Among other limitations, unless otherwise agreed upon by Alumni Capital, each individual sale of shares of common stock will be limited to a sale of shares of common stock of up to $500,000 (subject to the right of the Company and Alumni Capital to mutually agree to increase such figure to $1,000,000) and further limited to no more than the number of shares of common stock that would result in the direct or indirect beneficial ownership by Alumni Capital of more than 9.99% of the then-outstanding shares of common stock. Alumni Capital will purchase the shares of common stock under the Equity Purchase Agreement at the lowest traded price of the common stock during the three ( 3 Upon execution of the Equity Purchase Agreement, the Company issued 146,699 shares of common stock to Alumni Capital. The Company will issue to Alumni Capital, on December 28, 2023, shares of common stock in an amount equal to one-half of one percent (0.5%) of the Investment Amount (as defined in the Equity Purchase Agreement) divided by the closing price of the common stock on the third business day prior to the date of issuance and delivery of such shares of common stock. In addition, the Company will issue to Alumni Capital, on the date of expiration of the Equity Purchase Agreement, shares of common stock in an amount equal to one-half of one percent (0.5%) of the Investment Amount divided by the closing price of the common stock on the third business day prior to the date of issuance and delivery of such shares of common stock. If the Company elects to increase the Maximum Investment Amount, it shall issue to Alumni Capital Increase Commitment Shares (as defined in the Equity Purchase Agreement) (based on each increase of Investment Amount) within five ( 5 As of December 31, 2022, the Company has not sold any shares of common stock under the Equity Purchase Agreement. Warrants Below is a summary of the Company’s issued and outstanding warrants as of December 31, 2022: Warrants Expiration date Exercise Price Per Share 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 Per Share (in years) Outstanding as of September 30, 2022 180,000 $ 7.80 Expired — — Outstanding as of December 31, 2022 180,000 7.80 1.0 Exercisable as of December 31, 2022 180,000 $ 7.80 1.0 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Dec. 31, 2022 | |
Stock-Based Compensation | |
Stock-Based Compensation | 7. Stock-Based Compensation As of December 31, 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 December 31, 2022, 935,495 common shares were available for future grants under the 2019 Plan. As of December 31, 2022, 291,667 shares of common stock were authorized under the Company’s 2016 Consolidated Stock Incentive Plan (the “2016 Plan”) and 228,041 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 months ended December 31, 2022 and 2021: Three Months ended December 31, 2022 2021 General and administrative $ 276,336 $ 327,131 Research and development (785,408) 466,073 Total $ (509,072) $ 793,204 Stock-based compensation expense for the three months ended December 31, 2022 and 2021 includes the reversal of expense previously recognized for unvested stock options of $0.8 million that were forfeited during the period. The stock-based compensation expense benefit included in the Research and development expense category is primarily the result of stock options forfeited in connection with the Company’s restructuring, see Note 8. Stock Options Below is a table summarizing the options issued and outstanding as of and for the three months ended December 31, 2022: Weighted Weighted Average Total Average Remaining Aggregate Exercise Contractual Life Intrinsic Stock Options Price Per Share (in years) Value Outstanding at September 30, 2022 7,629,281 $ 3.08 Granted 390,000 0.28 Forfeited (708,595) 5.01 Outstanding at December 31, 2022 7,310,686 2.66 6.4 $ 476,723 Exercisable as of December 31, 2022 5,048,630 $ 2.76 5.3 $ 476,723 As of December 31, 2022, unrecognized compensation costs associated with the stock options of $1.4 million will be recognized over an estimated weighted average amortization period of 1.1 years. The intrinsic value of options exercised during the three months ended December 31, 2021 was $0.1 million. No options were exercised during the three months ended December 31, 2022. The weighted average grant date fair value of options granted during the three months ended December 31, 2022 and 2021 was $0.19 and $2.33, respectively. Key assumptions used to estimate the fair value of the stock options granted during the three months ended December 31, 2022 and 2021 included: Three months Ended December 31, 2022 2021 Expected term of options (years) 5.3 – 6.1 5.1 – 6.1 Expected common stock price volatility 79.2% – 82.4% 73.8% – 74.5% Risk-free interest rate 3.8% – 4.3% 1.1% – 1.4% Expected dividend yield — — |
Restructuring
Restructuring | 3 Months Ended |
Dec. 31, 2022 | |
Restructuring | |
Restructuring | 8. Restructuring Restructuring charges relate primarily to the Company’s strategic restructuring to expand its focus to include the advancement of the differentiated gene editing capabilities of its platform. The Company recognized restructuring costs of $0.7 million during the three months ended December 31, 2022, comprised primarily of contract termination costs of $0.6 million and termination benefits related to headcount reductions of $0.1 million. Employee termination benefits were recognized at the date employees were notified and post-employment benefits were accrued as the obligation was probable and estimable. The following table summarizes activity in the Company’s restructuring-related liability during the three months ended December 31, 2022: Liability at Restructuring Payments/ Liability at September 30, 2022 Charges Utilization December 31, 2022 Employee-related costs $ — $ 97,627 $ (97,627) $ — Research and development contract termination costs — 540,058 (228,948) 311,110 Other — 14,766 (9,844) 4,922 Total Accrued restructuring $ — $ 652,451 $ (336,419) $ 316,032 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 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. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 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, 2022 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 21, 2022. 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 considerations related to the impacts that the current economic environment 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 December 31, 2022 and 2021 have been excluded from the computation of diluted weighted average shares outstanding, as they would be anti-dilutive: As of December 31, 2022 2021 Common stock purchase options 7,310,686 7,197,404 Restricted stock units — 10,000 Common stock purchase warrants 180,000 875,312 7,490,686 8,082,716 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2021, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2021-04, “Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40)” (“ASU 2021-04”). This guidance reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. ASU 2021-04 provides guidance for a modification or an exchange of a freestanding equity-classified written call option that is not within the scope of another Topic. It specifically addresses: (1) how an entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange; (2) how an entity should measure the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange; and (3) how an entity should recognize the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange. The Company adopted this guidance as of October 1, 2022, with no impact upon adoption. 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; therefore, it will be effective beginning with the Company’s financial statements issued for the fiscal year ending September 30, 2023. While the adoption of this guidance will not have an impact on the Company’s consolidated balance sheet or statement of operations, the adoption of this guidance may require additional annual disclosures in the Company’s financial statements for the fiscal year ending September 30, 2023, which the Company is currently in the process of assessing. 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. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). This guidance introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. ASU 2016-13 also provides updated guidance regarding the impairment of available-for-sale debt securities and includes additional disclosure requirements. The new guidance is effective for public business entities that meet the definition of a Smaller Reporting Company as defined by the Securities and Exchange Commission for interim and annual periods beginning after December 15, 2022. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies | |
Schedule of dilutive securities excluded from the computation of diluted weighted average shares | As of December 31, 2022 2021 Common stock purchase options 7,310,686 7,197,404 Restricted stock units — 10,000 Common stock purchase warrants 180,000 875,312 7,490,686 8,082,716 |
Other Prepaid Expenses and Cu_2
Other Prepaid Expenses and Current Assets (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Other Prepaid Expenses and Current Assets | |
Schedule of prepaid expenses and other current assets | As of December 31, As of September 30, 2022 2022 Unaudited Audited Prepaid research and development expense $ 67,027 $ 805,542 Accounts receivable 150,000 — Franchise tax receivable — 127,715 Other prepaid expenses and current assets 174,628 243,046 Total $ 391,655 $ 1,176,303 |
Equipment (Tables)
Equipment (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Equipment | |
Schedule of equipment | As of December 31, As of September 30, 2022 2022 Unaudited Audited Laboratory equipment $ 3,048,579 $ 3,175,019 Office equipment 259,978 259,978 Leasehold improvements 17,958 17,958 Total 3,326,515 3,452,955 Accumulated depreciation and amortization (1,392,415) (1,296,104) Equipment, net $ 1,934,100 $ 2,156,851 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Current Liabilities | |
Schedule of accrued expenses and other current liabilities | As of December 31, As of September 30, 2022 2022 Unaudited Audited Accrued compensation and benefits $ 171,572 $ 768,324 Accrued consulting settlement 225,000 150,000 Accrued professional fees 241,808 191,516 Accrued research and development 20,684 512,570 Accrued franchise tax 217,440 36,542 Accrued restructuring 316,032 — Other accrued expenses 35,120 3,708 Total $ 1,227,656 $ 1,662,660 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity | |
Schedule of warrants issued and outstanding | Below is a summary of the Company’s issued and outstanding warrants as of December 31, 2022: Warrants Expiration date Exercise Price Per Share 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 Per Share (in years) Outstanding as of September 30, 2022 180,000 $ 7.80 Expired — — Outstanding as of December 31, 2022 180,000 7.80 1.0 Exercisable as of December 31, 2022 180,000 $ 7.80 1.0 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Stock-Based Compensation | |
Schedule of stock-based compensation expense | Three Months ended December 31, 2022 2021 General and administrative $ 276,336 $ 327,131 Research and development (785,408) 466,073 Total $ (509,072) $ 793,204 |
Schedule of stock options issued and outstanding | Weighted Weighted Average Total Average Remaining Aggregate Exercise Contractual Life Intrinsic Stock Options Price Per Share (in years) Value Outstanding at September 30, 2022 7,629,281 $ 3.08 Granted 390,000 0.28 Forfeited (708,595) 5.01 Outstanding at December 31, 2022 7,310,686 2.66 6.4 $ 476,723 Exercisable as of December 31, 2022 5,048,630 $ 2.76 5.3 $ 476,723 |
Schedule of key assumptions used to estimate the fair value of the stock options granted | Three months Ended December 31, 2022 2021 Expected term of options (years) 5.3 – 6.1 5.1 – 6.1 Expected common stock price volatility 79.2% – 82.4% 73.8% – 74.5% Risk-free interest rate 3.8% – 4.3% 1.1% – 1.4% Expected dividend yield — — |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Restructuring | |
Summary of company's restructuring-related liability | The following table summarizes activity in the Company’s restructuring-related liability during the three months ended December 31, 2022: Liability at Restructuring Payments/ Liability at September 30, 2022 Charges Utilization December 31, 2022 Employee-related costs $ — $ 97,627 $ (97,627) $ — Research and development contract termination costs — 540,058 (228,948) 311,110 Other — 14,766 (9,844) 4,922 Total Accrued restructuring $ — $ 652,451 $ (336,419) $ 316,032 |
Organization, Description of _2
Organization, Description of Business and Liquidity (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | |
Organization, Description of Business and Liquidity | |||
Cash and cash equivalents | $ 17,386,326 | $ 23,152,663 | |
Loss from operations | (4,600,270) | $ (7,304,967) | |
Private NeuBase | |||
Organization, Description of Business and Liquidity | |||
Cash and cash equivalents | 17,400,000 | ||
Loss from operations | (4,600,000) | ||
Net cash used in operating activities | $ (5,700,000) |
Significant Accounting Polici_4
Significant Accounting Policies - Potentially dilutive securities outstanding (Details) - shares | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Significant Accounting Policies | ||
Antidilutive securities excluded from computation of net loss per common share | 7,490,686 | 8,082,716 |
Common stock purchase options | ||
Significant Accounting Policies | ||
Antidilutive securities excluded from computation of net loss per common share | 7,310,686 | 7,197,404 |
Restricted stock units | ||
Significant Accounting Policies | ||
Antidilutive securities excluded from computation of net loss per common share | 10,000 | |
Common stock purchase warrants | ||
Significant Accounting Policies | ||
Antidilutive securities excluded from computation of net loss per common share | 180,000 | 875,312 |
Other Prepaid Expenses and Cu_3
Other Prepaid Expenses and Current Assets (Details) - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 |
Other Prepaid Expenses and Current Assets | ||
Prepaid research and development expense | $ 67,027 | $ 805,542 |
Accounts receivable | 150,000 | |
Franchise tax receivable | 127,715 | |
Other prepaid expenses and current assets | 174,628 | 243,046 |
Total | $ 391,655 | $ 1,176,303 |
Equipment (Details)
Equipment (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | |
Equipment | |||
Property, plant and equipment, gross | $ 3,326,515 | $ 3,452,955 | |
Accumulated depreciation and amortization | (1,392,415) | (1,296,104) | |
Equipment, net | 1,934,100 | 2,156,851 | |
Depreciation | 200,000 | $ 200,000 | |
Laboratory equipment | |||
Equipment | |||
Property, plant and equipment, gross | 3,048,579 | 3,175,019 | |
Office equipment | |||
Equipment | |||
Property, plant and equipment, gross | 259,978 | 259,978 | |
Leasehold improvements | |||
Equipment | |||
Property, plant and equipment, gross | $ 17,958 | $ 17,958 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 |
Accrued Expenses and Other Current Liabilities | ||
Accrued compensation and benefits | $ 171,572 | $ 768,324 |
Accrued consulting settlement | 225,000 | 150,000 |
Accrued professional fees | 241,808 | 191,516 |
Accrued research and development | 20,684 | 512,570 |
Accrued franchise tax | 217,440 | 36,542 |
Accrued restructuring | 316,032 | 0 |
Other accrued expenses | 35,120 | 3,708 |
Total | $ 1,227,656 | $ 1,662,660 |
Stockholders' Equity - Warrants
Stockholders' Equity - Warrants issued and outstanding (Details) - USD ($) | 3 Months Ended | |
Dec. 28, 2022 | Dec. 31, 2022 | |
Warrants | ||
Warrants, outstanding at the beginning of the period | 180,000 | |
Warrants, outstanding at the end of the period | 180,000 | |
Warrants, Exercisable at the end of the period | 180,000 | |
Weighted-average exercise price, outstanding at the beginning of the period | $ 7.80 | |
Weighted-average exercise price, outstanding at the end of the period | 7.80 | |
Weighted-average exercise price, exercisable at the end of the period | $ 7.80 | |
Weighted-average remaining contractual life, outstanding at the end of the period | 1 year | |
Weighted-average remaining contractual life, exercisable at the end of the period | 1 year | |
Equity Purchase Agreement | ||
Warrants | ||
Proceeds from issuance of common stock | $ 3,000,000 | |
Equity purchase agreement number of business days | 5 years | |
Equity Purchase Agreement | Common Stock | ||
Warrants | ||
Stock issued during period value new issues | $ 500,000 | |
Stock issued during period, shares, new issues | 146,699 | |
Percentage of common stock held in investment | 0.50% | |
Equity purchase agreement before purchase on common stock | 3 years | |
Equity Purchase Agreement | Maximum | ||
Warrants | ||
Proceeds from issuance of common stock | $ 10,000,000 | |
Equity Purchase Agreement | Maximum | Common Stock | ||
Warrants | ||
Stock issued during period value new issues | $ 1,000,000 | |
July 6, 2023 | ||
Warrants | ||
Exercise price of warrants (in dollars per share) | $ 8.73 | |
Warrants, outstanding at the end of the period | 105,000 | |
September 20, 2024 | ||
Warrants | ||
Exercise price of warrants (in dollars per share) | $ 6.50 | |
Warrants, outstanding at the end of the period | 75,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based compensation expense (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-Based Compensation | ||
Total stock based compensation | $ (509,072) | $ 793,204 |
General and administrative | ||
Stock-Based Compensation | ||
Total stock based compensation | 276,336 | 327,131 |
Research and development | ||
Stock-Based Compensation | ||
Total stock based compensation | $ (785,408) | $ 466,073 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock options (Details) | 3 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Stock Options | |
Outstanding, Beginning balance | shares | 7,629,281 |
Granted | shares | 390,000 |
Forfeited | shares | (708,595) |
Outstanding, Ending balance | shares | 7,310,686 |
Exercisable | shares | 5,048,630 |
Weighted Average Exercise Price | |
Outstanding, Beginning balance | $ / shares | $ 3.08 |
Granted | $ / shares | 0.28 |
Forfeited | $ / shares | 5.01 |
Outstanding, Ending balance | $ / shares | 2.66 |
Exercisable | $ / shares | $ 2.76 |
Weighted Average Remaining Contractual Life (in years) and Aggregate Intrinsic Value | |
Outstanding | 6 years 4 months 24 days |
Exercisable | 5 years 3 months 18 days |
Outstanding | $ | $ 476,723 |
Exercisable | $ | $ 476,723 |
Stock-Based Compensation - Key
Stock-Based Compensation - Key assumptions used to estimate the fair value of the stock options granted (Details) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Key assumptions used to estimate the fair value of the stock options granted | ||
Expected common stock price volatility, minimum | 79.20% | 73.80% |
Expected common stock price volatility, maximum | 82.40% | 74.50% |
Risk-free interest rate, minimum | 3.80% | 1.10% |
Risk-free interest rate, maximum | 4.30% | 1.40% |
Minimum | ||
Key assumptions used to estimate the fair value of the stock options granted | ||
Expected term of options (years) | 5 years 3 months 18 days | 5 years 1 month 6 days |
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 | 6 years 1 month 6 days |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional information (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-Based Compensation | ||
Stock-based compensation | $ (509,072) | $ 793,204 |
Unrecognized compensation costs | $ 1,400,000 | |
Weighted-average amortization period | 1 year 1 month 6 days | |
Intrinsic value of stock options exercised | $ 0 | $ 100,000 |
Weighted average grant date fair value of options granted | $ 0.19 | $ 2.33 |
Unvested stock options | ||
Stock-Based Compensation | ||
Stock-based compensation | $ 800,000 | $ 800,000 |
2016 Plan | ||
Stock-Based Compensation | ||
Number of common stock authorized | 291,667 | |
Common shares were available for future grants | 228,041 | |
2019 Plan | ||
Stock-Based Compensation | ||
Number of common stock authorized | 6,018,136 | |
Common shares were available for future grants | 935,495 |
Restructuring (Details)
Restructuring (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
Restructuring | |
Restructuring costs | $ 0.7 |
Headcount reductions | 0.1 |
Termination fees | $ 0.6 |
Restructuring - Summarizes of C
Restructuring - Summarizes of Company's restructuring-related liability (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Accrued restructuring Liability | $ 0 | |
Restructuring Charges | 652,451 | $ 0 |
Payments/Utilization | (336,419) | |
Accrued restructuring Liability | 316,032 | |
Employee-related costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Accrued restructuring Liability | 0 | |
Restructuring Charges | 97,627 | |
Payments/Utilization | (97,627) | |
Accrued restructuring Liability | 0 | |
Research and development contract termination costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 540,058 | |
Payments/Utilization | (228,948) | |
Accrued restructuring Liability | 311,110 | |
Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Accrued restructuring Liability | 0 | |
Restructuring Charges | 14,766 | |
Payments/Utilization | (9,844) | |
Accrued restructuring Liability | $ 4,922 |