Annovis Bio (ANVS) 10-K 3 Mar 21 2020 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2020	Mar. 01, 2021	Jun. 30, 2020
Document and Entity Information
Entity Registrant Name	Annovis Bio, Inc.
Document Type	10-K
Document Period End Date	Dec. 31, 2020
Entity Current Reporting Status	Yes
Entity Well Known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Public Float			$ 18,689,114
Entity Common Stock, Shares Outstanding		6,946,904
Entity Central Index Key	0001477845
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false

Balance Sheets

Balance Sheets - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 8,074,658	$ 1,858
Grant receivable		735,075
Prepaid expenses and other current assets	44,676	10,579
Total current assets	8,119,334	747,512
Long-term assets:
Deferred offering costs		369,595
Total long-term assets		369,595
Total assets	8,119,334	1,117,107
Current liabilities:
Accounts payable	341,856	1,233,877
Accrued expenses	236,524	776,871
Total current liabilities	578,380	2,010,748
Long-term liabilities:
Derivative liability		106,000
Convertible promissory notes, net of unamortized deferred financing fees of $7,431 and debt discount of $22,762 at December 31, 2019		499,807
Total long-term liabilities		605,807
Total liabilities	578,380	2,616,555
Commitments and contingencies (Note 8)
Stockholders' equity (deficit):
Preferred stock - $0.0001 par value, 2,000,000 and 0 shares authorized at December 31, 2020 and 2019, respectively
Common stock - $0.0001 par value, 35,000,000 and 10,150,000 shares authorized at December 31, 2020 and 2019, respectively, and 6,891,608 and 282,614 shares issued and outstanding at December 31, 2020 and 2019, respectively	689	28
Additional paid-in capital	21,779,340	200,600
Accumulated deficit	(14,239,075)	(8,777,028)
Total stockholders' equity (deficit)	7,540,954	(8,576,400)
Total liabilities and stockholders' equity (deficit)	8,119,334	1,117,107
Series A Redeemable convertible preferred stock
Long-term liabilities:
Redeemable convertible preferred stock	0	6,509,303
Series A-1 Redeemable convertible preferred stock
Long-term liabilities:
Redeemable convertible preferred stock	$ 0	$ 567,649

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Unamortized deferred financing fees		$ 7,431
Debt discount		$ 22,762
Par value	$ 0.0001	$ 0.0001
Preferred stock, authorized (shares)	2,000,000	0
Common stock, par value (dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized (shares)	35,000,000	10,150,000
Common stock, issued (shares)	6,891,608	282,614
Common stock, outstanding (shares)	6,891,608	282,614
Redeemable convertible preferred stock
Par value	$ 0.0001	$ 0.0001
Series A Redeemable convertible preferred stock
Shares authorized	0	5,133,159
Shares issued	0	5,133,159
Shares outstanding	0	5,133,159
Series A-1 Redeemable convertible preferred stock
Shares authorized	0	1,111,111
Shares issued	0	630,722
Shares outstanding	0	630,722

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Operating expenses:
Research and development	$ 3,054,025	$ 776,256
General and administrative	3,586,196	829,366
Total operating expenses	6,640,221	1,605,622
Operating loss	(6,640,221)	(1,605,622)
Other income (expense):
Change in fair value of derivative liability	(26,500)	(79,500)
Interest income (expense), net	47,225	(40,933)
Grant income	1,157,449	735,075
Total other income (expense)	1,178,174	614,642
Loss before income taxes	(5,462,047)	(990,980)
Net loss	$ (5,462,047)	$ (990,980)
Basic and diluted loss per common share	$ (0.87)	$ (3.51)
Weighted average number of common shares outstanding, basic and diluted	6,308,961	282,614

Statements of Changes in Redeem

Statements of Changes in Redeemable Convertible Preferred Stock	12 Months Ended
	Dec. 31, 2020USD ($)shares
Series A Redeemable convertible preferred stock
Changes in Redeemable Convertible Preferred Stock
Balance | $	$ 6,509,303
Balance, shares | shares	5,133,159
Conversion of redeemable convertible preferred stock to common stock upon completion of initial public offering | $	$ (6,509,303)
Conversion of redeemable convertible preferred stock to common stock upon completion of initial public offering, shares | shares	(5,133,159)
Balance | $	$ 0
Balance, shares | shares	0
Series A-1 Redeemable convertible preferred stock
Changes in Redeemable Convertible Preferred Stock
Balance | $	$ 567,649
Balance, shares | shares	630,722
Conversion of redeemable convertible preferred stock to common stock upon completion of initial public offering | $	$ (567,649)
Conversion of redeemable convertible preferred stock to common stock upon completion of initial public offering, shares | shares	(630,722)
Balance | $	$ 0
Balance, shares | shares	0

Statements of Changes in Stockh

Statements of Changes in Stockholders' Equity (Deficit) - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2018	$ 28	$ 192,117	$ (7,786,048)	$ (7,593,903)
Balance, shares at Dec. 31, 2018	282,614
Changes in Stockholders' Equity
Share based compensation expense		8,483		8,483
Net loss			(990,980)	(990,980)
Balance at Dec. 31, 2019	$ 28	200,600	(8,777,028)	(8,576,400)
Balance, shares at Dec. 31, 2019	282,614
Changes in Stockholders' Equity
Conversion of redeemable convertible preferred stock to common stock upon completion of initial public offering	$ 412	7,076,540		7,076,952
Conversion of redeemable convertible preferred stock to common stock upon completion of initial public offering, shares	4,117,089
Conversion of convertible promissory notes, including embedded derivative, to common stock upon completion of initial public offering	$ 12	672,512		672,524
Conversion of convertible promissory notes, including embedded derivative, to common stock upon completion of initial public offering, shares	118,470
Issuance of common shares	$ 230	11,955,565		11,955,795
Issuance of common shares (in shares)	2,300,000
Exercise of stock options	$ 5	9,212		$ 9,217
Exercise of stock options, shares	48,435			48,435
Issuance of common stock to consultants and advisors	$ 2	122,748		$ 122,750
Issuance of common stock to consultants and advisors, shares	25,000
Share based compensation expense		1,742,163		1,742,163
Net loss			(5,462,047)	(5,462,047)
Balance at Dec. 31, 2020	$ 689	$ 21,779,340	$ (14,239,075)	$ 7,540,954
Balance, shares at Dec. 31, 2020	6,891,608

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net loss	$ (5,462,047)	$ (990,980)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of deferred financing fees	129	1,191
Amortization of debt discount	396	3,738
Share-based compensation expense, including stock issued to consultants and advisors	1,864,913	8,483
Change in fair value of derivative liability	26,500	79,500
Changes in assets and liabilities:
Grant receivable	735,075	(735,075)
Prepaid expenses and other current assets	(34,097)	5,101
Accounts payable	(695,660)	969,091
Accrued expenses	(406,032)	182,409
Net cash used in operating activities	(3,970,823)	(476,542)
Cash flows from financing activities:
Proceeds from initial public offering of common stock, net of offering costs	12,034,406
Proceeds from issuance of convertible promissory notes		530,000
Proceeds from exercise of stock options	9,217
Payment of deferred offering costs		(78,611)
Payment of deferred financing fees		(8,301)
Net cash provided by financing activities	12,043,623	443,088
Net increase (decrease) in cash	8,072,800	(33,454)
Cash and cash equivalents, beginning of year	1,858	35,312
Cash and cash equivalents, end of year	8,074,658	1,858
Supplemental disclosure of cash flow information
Deferred offering costs in accounts payable and accrued expenses		290,984
Deferred financing fees in accounts payable and accrued expenses		$ 321
Conversion of redeemable convertible preferred stock to common stock	7,076,952
Conversion of convertible promissory notes, including embedded derivative, to common stock	$ 672,524

Nature of Business and Liquidit

Nature of Business and Liquidity	12 Months Ended
	Dec. 31, 2020
Nature of Business and Liquidity
Nature of Business and Liquidity	(1) Nature of Business and Liquidity Annovis Bio, Inc. (the “Company” or “Annovis”) was incorporated on April 29, 2008, under the laws of the State of Delaware. Annovis is a clinical-stage drug platform company addressing neurodegeneration such as Alzheimer’s disease (“AD”), Parkinson’s disease (“PD”) and Alzheimer’s disease in Down syndrome (“AD-DS”). The Company’s lead compound, ANVS401, is a small molecule administered orally that attacks neurodegeneration by entering the brain and inhibiting the translation of multiple neurotoxic proteins thereby improving axonal transport. Since its founding, the Company has been engaged in organizational activities, including raising capital, and research and development activities. The Company has not generated substantial revenues and has not yet achieved profitable operations, nor has it ever generated positive cash flows from operations. There is no assurance that profitable operations, if achieved, could be sustained on a continuing basis. The Company is subject to those risks associated with any clinical stage pharmaceutical company that has substantial expenditures for research and development. There can be no assurance that the Company’s research and development projects will be successful, that products developed will obtain necessary regulatory approval, or that any approved product will be commercially viable. In addition, the Company operates in an environment of rapid technological change and is largely dependent on the services of its employees and consultants. Further, the Company’s future operations are dependent on the success of the Company’s efforts to raise additional capital. The Company incurred net losses of $5,462,047 and $990,980 for the years ended December 31, 2020 and 2019, respectively, and had an accumulated deficit of $14,239,075 as of December 31, 2020. The Company anticipates incurring additional losses until such time, if ever, that it can generate significant revenue from its product candidates currently in development. The Company’s primary source of capital has been the issuance of equity securities. On January 28, 2020, the Company announced the pricing of its initial public offering (the “IPO”) of 2,000,000 shares of its common stock at an initial offering price of $6.00 per share. In addition, the Company granted the underwriters a 45-day option to purchase up to an additional 300,000 shares of common stock at the public offering price. The Company’s common stock commenced trading on the NYSE American on January 29, 2020 under the ticker symbol “ANVS”. The IPO closed on January 31, 2020, at which time the underwriters exercised their option to purchase 300,000 additional shares of the Company’s common stock, bringing the total number of shares of common stock sold by the Company to 2,300,000 shares. The gross proceeds from the IPO were approximately $13.8 million. The net proceeds of the IPO were approximately $12.0 million after deducting underwriting discounts, commissions and offering expenses payable by the Company. In conjunction with the IPO, the Company granted the underwriters 100,000 warrants to purchase shares of Company common stock at an exercise price of $7.50 per share, which is 125% of initial public offering price. Upon the closing of the IPO, outstanding redeemable convertible preferred stock and convertible promissory notes converted into shares of Company common stock totaling 4,117,089 and 118,470, respectively. As of the date these financial statements are issued, management believes that the current cash and cash equivalents are sufficient to fund operations and capital requirements for at least the next 12 months. The Company will need to raise additional capital to complete clinical development of and to commercially develop its product candidates. There is no assurance that such financing will be available when needed or on acceptable terms.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	(2) Summary of Significant Accounting Policies (a) Basis of Presentation The accompanying financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). (b) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Due to the uncertainty of factors surrounding the estimates or judgments used in the preparation of the financial statements, actual results may materially vary from these estimates. Significant items subject to such estimates and assumptions include share-based compensation expense, the valuation of the derivative liability and contingent liabilities. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. Accounting estimates used in the preparation of these financial statements change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. (c) Basic and Diluted Net Income (Loss) per Share Basic net income (loss) per share is determined using the weighted average number of shares of common stock outstanding during each period. Diluted net income (loss) per share includes the effect, if any, from the potential exercise or conversion of securities, such as redeemable convertible preferred stock, convertible promissory notes and stock options, which would result in the issuance of incremental shares of common stock. The computation of diluted net income (loss) per shares does not include the conversion of securities that would have an anti-dilutive effect. (d) Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. At times, the Company’s cash balances may exceed the current insured amounts under the Federal Deposit Insurance Corporation (“FDIC”). Total cash was $8,074,658 and $1,858 as of December 31, 2020 and 2019, respectively. (e) Deferred Offering Costs Included in long-term assets as of December 31, 2019, were deferred offering costs of $369,595 incurred in connection with the Company’s IPO which primarily consisted of direct incremental legal, printing, listing and accounting fees. Offering costs of $601,635 were offset against proceeds received in the IPO and charged to additional paid-in capital in the year ended December 31, 2020. Of these offering costs, $78,611 was paid during the year ended December 31, 2019. (f) Fair Value of Financial Instruments The Company’s financial instruments include, cash and cash equivalents, accounts payable, accrued expenses, a derivative liability and debt. Cash and cash equivalents and the derivative liability are reported at fair value. The recorded carrying amount of accounts payable and accrued expenses reflect their fair value due to their short-term nature. The carrying value of the interest-bearing debt approximates fair value based upon the borrowing rates currently available to the Company for loans with similar terms and maturities. (g) Research and Development Research and development costs are expensed as incurred and are primarily comprised of personnel-related expenses and external research and development expenses incurred under arrangements with third parties, such as contract research organizations and consultants. At the end of each reporting period, the Company compares the payments made to each service provider to the estimated progress towards completion of the related project. Factors that the Company considers in preparing these estimates include the number of patients enrolled in studies, milestones achieved, and other criteria related to the efforts of its vendors. These estimates will be subject to change as additional information becomes available. Depending on the timing of payments to vendors and estimated services provided, the Company will record net prepaid or accrued expenses related to these costs. (h) Grant Income Grants received are recognized as grant income in the statements of operations as and when they are earned for the specific research and development projects for which these grants are designated. Grants payments received in excess of grant income earned are recognized as deferred grant on the balance sheet and grant income earned in excess of grant payments received is recognized as grant receivable on the balance sheets. (i) Share-Based Compensation Share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period. Forfeitures are recognized in compensation expense in the period when they occur. Determining the appropriate fair value of share-based awards requires the use of subjective assumptions, including, in the case of stock options, the expected life of the option and expected share price volatility. The expected life of options was estimated using the simplified method, as the Company has limited historical information to develop reasonable expectations about future exercise patterns and post-vesting employment. The Company uses the Black-Scholes option pricing model to value its option awards. The assumptions used in calculating the fair value of share-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and management uses different assumptions, share-based compensation expense could be materially different for future awards. Upon exercise of stock options, the Company issues shares first from treasury stock, if available, then from authorized but unissued shares. (j) Income Taxes The Company provides for income taxes using the asset and liability approach. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. As of December 31, 2020 and 2019, the Company had a full valuation allowance against its deferred tax assets. The Company is subject to the provisions of ASC 740, Income Taxes, which prescribes a more likely-than-not threshold for the financial statement recognition of uncertain tax positions. ASC 740 clarifies the accounting for income taxes by prescribing a minimum recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. There are currently no open federal or state tax audits. The Company has not recorded any liability for uncertain tax positions at December 31, 2020 or December 31, 2019. (k) Recent Accounting Pronouncements In March 2018, the FASB issued ASU 2018‑5—Income Taxes (Topic 740): Amendments to SEC Paragraphs pursuant to SEC Staff Accounting Bulletin No. 118. This ASU provided guidance related to Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin No. 118 (“SAB 118”), which addresses the accounting implications of the Tax Cuts and Jobs Act of 2107 (the “Tax Act”). SAB 118 allows a company to record provisional amounts during a measurement period not to extend beyond one year of the enactment date and was effective upon issuance. The Tax Act did not have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU No. 2018‑13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The new guidance improves and clarifies the fair value measurement disclosure requirement of ASC 820. The new disclosure requirements include the changes in unrealized gains or losses included in other comprehensive income for recurring Level 3 fair value measurement held at the end of reporting period and the explicit requirement to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The other provisions of ASU 2018‑13 also include eliminated and modified disclosure requirements. The guidance is effective for fiscal years beginning after December 15, 2019 with early adoption permitted. The adoption of ASU 2018-13 in the year ended December 31, 2020 did not have a significant impact on the Company’s financial statements. In December 2019, the FASB issued ASU No. 2019‑12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in ASU 2019‑12 simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying and amending existing guidance. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company does not believe the adoption of this standard will have a significant impact on its financial statements. (l) Reverse Stock Split On July 31, 2019, the board of directors (the “Board”) and shareholders of the Company approved a reverse stock split of the Company’s common stock at a ratio of one share for every 1.4 shares previously held. All common stock share and per-share data included in these financial statements have been retroactively adjusted to reflect the reverse stock split.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2020
Fair Value Measurements
Fair Value Measurements	(3) Fair Value Measurements The Company measures certain assets and liabilities at fair value in accordance with ASC 820, Fair Value Measurements and Disclosures. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability (the exit price) in an orderly transaction between market participants at the measurement date. The guidance in ASC 820 outlines a valuation framework and creates a fair value hierarchy that serves to increase the consistency and comparability of fair value measurements and the related disclosures. In determining fair value, the Company maximizes the use of quoted prices and observable inputs. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. The fair value hierarchy is broken down into three levels based on the source of inputs as follows: Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities. Level 2—Valuations based on observable inputs and quoted prices in active markets for similar assets and liabilities. Level 3—Valuations based on unobservable inputs and models that are supported by little or no market activity. The following table provides the carrying value and fair value of certain financial assets and liabilities of the Company measured at fair value on a recurring basis as of December 31, 2020 and December 31, 2019: Fair Value Measurement at December 31, 2020 Carrying Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 8,074,658 $ 8,074,658 $ — $ — Fair Value Measurement at December 31, 2019 Carrying Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 1,858 $ 1,858 $ — $ — Derivative liability $ 106,000 $ — $ — $ The derivative liability was associated with the March 2019 issuance of convertible promissory notes (see Note 7). The Company computed the fair value at the date of issuance of $26,500 related to the embedded share settlement feature providing for conversion of the notes at a 20% discount to the price of the shares issued in a Qualified Financing. The Company estimated the fair value using a probability weighted approach. Using the same methodology, the Company determined the fair value of the derivative liability immediately prior to the closing of the IPO was $132,500 and at December 31, 2019 was $106,000. The change in the fair value of the derivative liability is reflected in the statements of operations.

Grant Receivable

Grant Receivable	12 Months Ended
	Dec. 31, 2020
Grant Receivable
Grant Receivable	(4) Grant Receivable In September 2019, as modified in September 2020, the Company received a Notice of Award for a $1.9 million grant from the National Institute on Aging of the National Institutes of Health (the “NIH”) to cover costs of long-term chronic toxicology studies of ANVS401 in rats and dogs. The Company began the long-term chronic toxicology studies in November 2019. The Company recognized grant income of $1,157,449 and $735,075 for the years ended December 31, 2020 and 2019, respectively, in connection with the NIH grant. The Company received payments under the grant of $1,892,524 and $0 during the years ended December 31, 2020 and 2019, respectively and recorded a grant receivable of $0 and $735,075 as of December 31, 2020 and 2019, respectively, to reflect unreimbursed, eligible costs incurred under the grant. As of December 31, 2020, remaining funds available under the grant were $36,754.

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	12 Months Ended
	Dec. 31, 2020
Prepaid Expenses and Other Current Assets
Prepaid Expenses and Other Current Assets	(5) Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: As of December 31, 2020 2019 Prepaid insurance $ 26,542 $ — Prepaid expenses 11,690 4,135 Security deposit 6,444 6,444 $ 44,676 $ 10,579

Accrued Expenses

Accrued Expenses	12 Months Ended
	Dec. 31, 2020
Accrued Expenses
Accrued Expenses	(6) Accrued Expenses Accrued expenses consisted of the following: As of December 31, 2020 2019 Payroll and related benefits $ 16,493 $ 131,530 Accrued interest expense — 36,041 Accrued professional and clinical fees 216,198 103,300 Accrued license payments 3,833 506,000 $ 236,524 $ 776,871 See Note 8 for further detail on the accrued license payments.

Convertible Promissory Notes

Convertible Promissory Notes	12 Months Ended
	Dec. 31, 2020
Convertible Promissory Notes.
Convertible Promissory Notes	(7) Convertible Promissory Notes In March 2019, the Company issued convertible promissory notes (the “Notes”) to various investors in the aggregate principal amount of $530,000. Interest accrued at 8% compounded annually on all Notes. The maturity date was the earlier of a Liquidity Event or upon the written demand of the holders of a majority of the outstanding principal amount of the Notes made any time after December 31, 2023. A Liquidity Event was defined as (i) the date of the closing of a merger or reorganization of the Company with another entity; (ii) the sale of substantially all of the assets of the Company in which the Company’s stockholders own less than 50% of the equity securities after the event; or (iii) a liquidation of the Company. The Company incurred costs of $8,622 in connection with the issuance of the Notes. In addition, on issuance, the Company recognized a discount associated with the Notes of $26,500 related to the fair value of an embedded derivative reflecting the share-settlement provision upon the closing of a Qualified Financing. Unamortized deferred financing fees and debt discount were deducted from the face amount of the Notes on the balance sheets. The Company amortized the deferred financing fees and debt discount over the term of the Notes as additional interest expense using the effective interest method. The effective interest rate on the Notes was 9.8%. The Company made no cash payments for interest during the years ended December 31, 2020 or 2019. On January 31, 2020, the Company closed its IPO. In accordance with the terms of the Notes, the outstanding Notes plus accrued interest converted into 118,470 shares of Company common stock at a 20% discount to the initial offering price of shares issued in the IPO.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies
Commitments and Contingencies	(8) Commitments and Contingencies (a) Leases The Company leases its office facilities under a month-to-month operating lease. Total rental expense was $41,603 and $34,351 for the years ended December 31, 2020 and 2019, respectively. (b) License Agreement In November 2008, the Company licensed the rights to certain chemical compounds, know-how and intellectual property rights that may be suitable for the development of human therapeutics. Currently, the intellectual property rights are owned by a subsidiary of Horizon Therapeutics, PLC (“Licensor”). Payments by the Company under the license agreement include a one-time non-refundable fee of $50,000, a minimum annual fee of $40,000 commencing in 2009, milestone payments upon attainment of certain milestone events, royalties based on net sales of products covered by the patent-related rights and a portion of any sublicense income received by the Company. The Company is responsible for the development and commercialization of the licensed products. In May 2012, such license agreement was amended. The minimum annual fee was increased to $46,000 and may be deferred by the Company until the Company raises at least $2 million in equity financing, then the aggregate annual payments of all amounts will become payable. The Company had deferred payment of the minimum annual fees prior to the IPO. During the year ended December 31, 2020, the Company paid an aggregate of $494,000 to the Licensor in satisfaction of deferred minimum annual fees through November 2020. At December 31, 2020 and December 31, 2019, the Company had accrued $3,833 and $506,000, respectively, in license payments under the terms of this license, included in accrued liabilities. Expenses related to the license agreement are recognized in general and administrative expense in the statements of operations. In further consideration for the licenses granted, the Company shall make the following milestone payments to Licensor based upon the attainment of each milestone event indicated below. Milestone Event Amount Commencement of Phase II $ 230,000 Commencement of Phase III $ 575,000 Filing of an NDA for Regulatory Approval (or equivalent in Europe or Japan) $ 1,150,000 Receipt of Regulatory Approval in the United States $ 5,750,000 Receipt of Regulatory Approval outside the United States $ 5,750,000 No milestones have been achieved as of December 31, 2020. Royalties shall be paid to Licensor assessed on net sales of licensed products on a country-by-country basis in an amount equal to 5.75%. Should the Company be required to obtain a license from a third party in order to sell a licensed product, the Company may deduct 50% of the royalties on such licensed product paid to the third party subject to certain minimums. In addition to the royalties the Company shall pay Licensor 9.2% of all sublicense income attributable to licensed products. The Licensor also granted the Company a buy-out option which may be exercised at any time during the term of the agreement. The option price will be as follows: $500,000 if exercised prior to the commencement of the first Phase II clinical trial; $1,000,000 if exercised on or after the commencement of the first Phase II clinical trial and prior to the commencement of the first Phase III clinical trial; $5,000,000 if exercised on or after the commencement of the first Phase III clinical trial and prior to the filing of a New Drug Application (“NDA”) with the FDA for the first licensed product; and $8,000,000 if exercised on or after the filing of an NDA for the first licensed product. The Company has the right to terminate the agreement at any time by giving 90 days advance notice subject to the payment of any amounts due under the agreement at that time. If the Company does not terminate the agreement or exercise the buy-out option, the term of the agreement shall continue until the expiration of the Company’s obligation to make royalty payments. Such royalty payments continue for each product in each country until the later of the expiration of the related patent or 10 years after the initial sale of the product in the respective country. The agreement may also be terminated for cause by either party upon the breach of the material obligations of the other party or the bankruptcy or liquidation of the other party. (c) Employment Agreements The Company has agreements with its executive officers that provide for severance payments to the employee upon termination of the agreement by the Company for any reason other than for cause, death or disability or by the employee for good reason The maximum aggregate severance payments under the agreements were approximately $720,000 at December 31, 2020. (d) Litigation The Company is subject, from time to time, to claims by third parties under various legal disputes. The defense of such claims, or any adverse outcome relating to any such claims, could have a material adverse effect on the Company’s liquidity, financial condition and cash flows. At December 31, 2020 and December 31, 2019, the Company did not have any pending legal actions. (e) Risks and Uncertainties In March 2020, the clinical trial sites participating in the Company's Phase 2a trial in AD patients in collaboration with the Alzheimer's Disease Cooperative Study temporarily suspended enrollment of new patients because of the ongoing COVID-19 pandemic. Prior to suspension of enrollment, 14 patients had been enrolled and completed treatment, out of a total trial size of 24 patients. The trial sites have reopened and patient recruitment and treatment have resumed. In addition, due to restrictions related to COVID-19 during 2020, the Company experienced delays in opening clinical trial sites for its Phase 2a clinical trial in AD and PD (the “AD/PD Trial”). In early 2021, all of the remaining sites which are participating in the AD/PD Trial opened for recruitment and treatment of patients. Although the Company currently believes its clinical trials will be completed on time, the extent to which the COVID-19 pandemic could have a material impact on the clinical trials is dependent on the spread of the disease and government and healthcare system responses to such spread, which are presently highly uncertain. Management continues to evaluate the potential impact. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Redeemable Convertible Preferre

Redeemable Convertible Preferred Stock and Stockholders' Equity	12 Months Ended
	Dec. 31, 2020
Redeemable Convertible Preferred Stock and Stockholders' Equity
Redeemable Convertible Preferred Stock and Stockholders' Equity	(9) Redeemable Convertible Preferred Stock and Stockholders’ Equity (a) Overview The Company closed its IPO on January 31, 2020, issuing 2,300,000 shares of common stock. In connection with the closing of the Company’s IPO, the then-outstanding 5,133,159 shares of Series A and 630,722 shares of Series A‑1 redeemable convertible preferred stock converted into an aggregate of 4,117,089 shares of Company common stock. Each share of redeemable convertible preferred stock was converted into the number of shares of common stock determined by dividing the original issue price by the applicable conversion price. The Series A‑1 conversion price was $1.26, and the Series A conversion price was $0.70, as adjusted for the reverse stock split discussed in Note 2. The Company’s Amended and Restated Certificate of Incorporation was adopted on January 31, 2020 to authorize the issuance of two classes of stock to be designated, respectively, common stock and preferred stock. The total number of shares which the Company is authorized to issue is 37,000,000, each with a par value of $0.0001 per share. Of these shares, 35,000,000 shall be common stock and 2,000,000 shall be preferred stock. (b) Common Stock 1. Dividends Subject to the rights of holders of all classes of Company stock outstanding having rights that are senior to or equivalent to holders of common stock, the holders of the common stock are entitled to receive dividends when and as declared by the Board. 2. Liquidation Subject to the rights of holders of all classes of stock outstanding having rights that are senior to or equivalent to holders of common stock as to liquidation, upon the liquidation, dissolution or winding up of the Company, the assets of the Company will be distributed to the holders of common stock. 3. Voting The holders of common stock are entitled to one vote for each share of common stock held. There is no cumulative voting. (c) Preferred Stock Preferred stock may be issued from time to time by the Board in one or more series. (d) Warrants In conjunction with the IPO, the Company granted the underwriters 100,000 warrants to purchase shares of Company common stock at an exercise price of $7.50 per share, which is 125% of the initial public offering price. The warrants have a five-year term and are not exercisable prior to January 29, 2021. All of the warrants were outstanding at December 31, 2020, and the Company accounts for the warrants as a component of stockholders’ equity.

Share-Based Compensation

Share-Based Compensation	12 Months Ended
	Dec. 31, 2020
Share-Based Compensation
Share-Based Compensation	(10) Share-Based Compensation Effective upon the closing of the Company’s IPO on January 31, 2020, the Company’s 2019 Equity Incentive Plan (the “2019 Plan”) became effective, succeeding the Company’s previous equity incentive plan. The previous plan had 352,282 options outstanding as of the effective date of the 2019 Plan. Under the 2019 Plan, 1,000,000 shares are authorized to be issued and no new options may be issued under the previous plan, although shares subject to grants which are cancelled or forfeited will again be available under the 2019 Plan. As of December 31, 2020, 168,664 shares were available for future grants. The 2019 Plan provides for grants to employees, members of the Board, consultants and advisors to the Company, in the form of stock options, stock awards and other equity-based awards. The amount and terms of grants are determined by the Board. Stock options have a maximum term of 10 years after date of grant and are exercisable in cash or as otherwise determined by the Board. As of December 31, 2020, and 2019, options to purchase common shares of the Company outstanding were as follows: Weighted Average Remaining Weighted Contractual Number of Average Term Shares Exercise Price (Years) Outstanding at December 31, 2018 353,565 $ 0.19 Granted — — Exercised — — Forfeited (1,283) 0.14 Outstanding at December 31, 2019 352,282 0.19 Granted 810,000 3.46 Exercised (48,435) 0.19 Forfeited (2,381) 0.14 Outstanding at December 31, 2020 1,111,466 2.57 8.4 Exercisable at December 31, 2020 1,061,466 2.54 8.3 As of December 31, 2020, the aggregate intrinsic value of options outstanding was $5,523,826 and options exercisable was $5,303,326. 810,000 options were issued during the year ended December 31, 2020. Under the grant agreements, 50,000 of the options vest after one year and the remainder of the options were vested and exercisable upon grant. These options have a 10-year term. No options were issued during the year ended December 31, 2019. The weighted average grant date fair value of options issued during the year ended December 31, 2020 was $2.19. The fair value was estimated using the Black Sholes option pricing model using the following weighted average assumptions: Year Ended December 31, 2020 Risk-free interest rate 0.38 % Expected life 5.00 Expected volatility 80 % Expected dividend yield — During the year ended December 31, 2020, the Company granted stock awards totaling 25,000 shares to consultants and advisors for services rendered which were vested upon grant. Based on the closing price of the Company’s common stock on the NYSE American on the date of grant, these awards had an aggregate fair value of $122,750, which was recognized in share-based compensation expense upon grant. No stock awards were issued during the year ended December 31, 2019. As of December 31, 2020, there was no unrecognized compensation expense related to stock awards. Share-based compensation expense in the statements of operations, including the fair value of stock awards to consultants and advisors for services rendered, for the years ended December 31, 2020 and 2019 was $1,864,913 and $8,483, respectively, of which $138,704 and $0, respectively, was included in research and development and the remainder in general and administrative expense. As of December 31, 2020 there was $31,970 unrecognized compensation expense related to unvested options . That cost is expected to be recognized over a weighted-average period of 0.3 years .

Net Loss Per Share

Net Loss Per Share	12 Months Ended
	Dec. 31, 2020
Net Loss Per Share
Net Loss Per Share	(11) Net Loss Per Share The Company has reported a net loss for the years ended December 31, 2020 and 2019, and the basic and diluted net loss per share attributable to common stockholders are the same for both years because all redeemable convertible preferred stock, convertible promissory notes and stock options have been excluded from the computation of diluted weighted-average shares outstanding because such securities would have an antidilutive impact. The following table sets forth the computation of basic and diluted net loss per share: Year Ended December 31, 2020 2019 Numerator Net loss $ (5,462,047) $ (990,980) Denominator Weighted-average common shares outstanding, basic and diluted 6,308,961 282,614 Net loss per share, basic and diluted $ (0.87) $ (3.51) Potential common shares issuable upon conversion of preferred stock and exercise of stock options that are excluded from the computation of diluted weighted-average shares outstanding are as follows: December 31, 2020 2019 Redeemable convertible preferred stock, as converted — 4,117,089 Stock options 1,111,466 352,282 Warrants 100,000 —

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2020
Income Taxes
Income Taxes	(12) Income Taxes The federal and state provision (benefit) for income taxes was $0 for the years ended December 31, 2020 and 2019. A reconciliation of income tax benefit computed at the statutory federal income tax rate to income taxes as reflected in the financial statements for the years ended December 31, 2020 and 2019 is as follows: Year Ended December 31, 2020 2019 Federal income tax benefit at statutory rate 21.0 % 21.0 % State and local tax, net of federal benefit 7.6 % 8.0 % Permanent differences (0.8) % 0.4 % Research and development credit 1.9 % — % Change in valuation allowance (29.7) % (29.4) % Effective income tax rate 0.0 % 0.0 % Deferred taxes are recognized for temporary differences between the basis of assets and liabilities for financial statement and income tax purposes. The significant components of the Company’s deferred tax assets are comprised of the following: As of December 31, 2020 2019 Net operating loss carryforwards $ 2,460,773 $ 1,430,716 Stock compensation 547,628 37,708 Convertible debt — 24,049 Research and development tax credit carryforwards 241,414 137,826 Total deferred tax assets 3,249,815 1,630,299 Less valuation allowance (3,249,815) (1,630,299) Net deferred taxes $ — $ — As of December 31, 2020, the Company had U.S. federal net operating loss (“NOL”) carryforwards of $7,821,413, which may be available to offset future income tax liabilities. Federal NOL carryforwards generated in 2017 and prior of $2,764,240 will expire beginning in 2032. The remaining federal NOL carryforwards generated in 2018 and later do not expire. As of December 31, 2020, the Company also had U.S. state NOL carryforwards of $10,368,296 which may be available to offset future income tax liabilities and will expire beginning in 2028. The Company has recorded a full valuation allowance against its net deferred tax assets as of December 31, 2020 and 2019 because the Company has determined that is it more likely than not that these assets will not be fully realized due to historic net operating losses incurred. The Company experienced a net change in valuation allowance of $1,619,516 and $291,575 in the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020, the Company had federal research and development tax credit carryforwards of $241,414 available to reduce future tax liabilities which expire beginning in 2028. Under the provisions of the Internal Revenue Code, the NOL and tax credit carryforwards are subject to review and possible adjustment by the Internal Revenue Service and state tax authorities. NOL and tax credit carryforwards may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant stockholders over a three-year period in excess of 50%, as defined under Sections 382 and 383 of the Internal Revenue Code as well as similar state provisions. This could limit the amount of tax attributes that can be utilized annually to offset future taxable income or tax liabilities. The amount of the annual limitation is determined based on the value of the Company immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. The Company has completed financings since its inception, including its IPO which closed on January 31, 2020, which may have resulted in a change in control as defined by Sections 382 and 383 of the Internal Revenue Code, or could result in a change in control in the future. The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by federal and state jurisdictions, where applicable. The Company’s tax years from 2017 to the present remain open for review. All open years may be examined to the extent that tax credits or NOL carryforwards are used in future periods. The Company will recognize interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2020, the Company had no accrued interest or penalties related to uncertain tax positions and no amounts have been recognized in the Company’s statements of operations. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. Previously, NOLs generated after December 31, 2017 were limited to 80% of taxable income in future years. In addition, the CARES Act allows NOLs incurred in 2018, 2019 and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The NOL carryback provision of the CARES Act had no impact on the Company due to its tax losses generated during all prior years.

Related-Party Transactions

Related-Party Transactions	12 Months Ended
	Dec. 31, 2020
Related-Party Transactions
Related-Party Transactions	(13) Related-Party Transactions As discussed in Note 7, in March 2019 the Company issued Notes in the aggregate principal amount of $530,000. Three of the Company’s directors purchased an aggregate of $305,000 of the Notes. On January 31, 2020, the Company closed its IPO and the outstanding Notes plus accrued interest held by directors converted into 71,429 shares of Company common stock.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2020
Summary of Significant Accounting Policies
Basis of Presentation	(a) Basis of Presentation The accompanying financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”).
Use of Estimates	(b) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Due to the uncertainty of factors surrounding the estimates or judgments used in the preparation of the financial statements, actual results may materially vary from these estimates. Significant items subject to such estimates and assumptions include share-based compensation expense, the valuation of the derivative liability and contingent liabilities. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. Accounting estimates used in the preparation of these financial statements change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes.
Basic and Diluted Net Income (Loss) per Share	(c) Basic and Diluted Net Income (Loss) per Share Basic net income (loss) per share is determined using the weighted average number of shares of common stock outstanding during each period. Diluted net income (loss) per share includes the effect, if any, from the potential exercise or conversion of securities, such as redeemable convertible preferred stock, convertible promissory notes and stock options, which would result in the issuance of incremental shares of common stock. The computation of diluted net income (loss) per shares does not include the conversion of securities that would have an anti-dilutive effect.
Cash and Cash Equivalents	(d) Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. At times, the Company’s cash balances may exceed the current insured amounts under the Federal Deposit Insurance Corporation (“FDIC”). Total cash was $8,074,658 and $1,858 as of December 31, 2020 and 2019, respectively.
Deferred Offering Costs	(e) Deferred Offering Costs Included in long-term assets as of December 31, 2019, were deferred offering costs of $369,595 incurred in connection with the Company’s IPO which primarily consisted of direct incremental legal, printing, listing and accounting fees. Offering costs of $601,635 were offset against proceeds received in the IPO and charged to additional paid-in capital in the year ended December 31, 2020. Of these offering costs, $78,611 was paid during the year ended December 31, 2019.
Fair Value of Financial Instruments	(f) Fair Value of Financial Instruments The Company’s financial instruments include, cash and cash equivalents, accounts payable, accrued expenses, a derivative liability and debt. Cash and cash equivalents and the derivative liability are reported at fair value. The recorded carrying amount of accounts payable and accrued expenses reflect their fair value due to their short-term nature. The carrying value of the interest-bearing debt approximates fair value based upon the borrowing rates currently available to the Company for loans with similar terms and maturities.
Research and Development	(g) Research and Development Research and development costs are expensed as incurred and are primarily comprised of personnel-related expenses and external research and development expenses incurred under arrangements with third parties, such as contract research organizations and consultants. At the end of each reporting period, the Company compares the payments made to each service provider to the estimated progress towards completion of the related project. Factors that the Company considers in preparing these estimates include the number of patients enrolled in studies, milestones achieved, and other criteria related to the efforts of its vendors. These estimates will be subject to change as additional information becomes available. Depending on the timing of payments to vendors and estimated services provided, the Company will record net prepaid or accrued expenses related to these costs.
Grant Income	(h) Grant Income Grants received are recognized as grant income in the statements of operations as and when they are earned for the specific research and development projects for which these grants are designated. Grants payments received in excess of grant income earned are recognized as deferred grant on the balance sheet and grant income earned in excess of grant payments received is recognized as grant receivable on the balance sheets.
Share-Based Compensation	(i) Share-Based Compensation Share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period. Forfeitures are recognized in compensation expense in the period when they occur. Determining the appropriate fair value of share-based awards requires the use of subjective assumptions, including, in the case of stock options, the expected life of the option and expected share price volatility. The expected life of options was estimated using the simplified method, as the Company has limited historical information to develop reasonable expectations about future exercise patterns and post-vesting employment. The Company uses the Black-Scholes option pricing model to value its option awards. The assumptions used in calculating the fair value of share-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and management uses different assumptions, share-based compensation expense could be materially different for future awards. Upon exercise of stock options, the Company issues shares first from treasury stock, if available, then from authorized but unissued shares.
Income Taxes	(j) Income Taxes The Company provides for income taxes using the asset and liability approach. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. As of December 31, 2020 and 2019, the Company had a full valuation allowance against its deferred tax assets. The Company is subject to the provisions of ASC 740, Income Taxes, which prescribes a more likely-than-not threshold for the financial statement recognition of uncertain tax positions. ASC 740 clarifies the accounting for income taxes by prescribing a minimum recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. There are currently no open federal or state tax audits. The Company has not recorded any liability for uncertain tax positions at December 31, 2020 or December 31, 2019.
Recent Accounting Pronouncements	(k) Recent Accounting Pronouncements In March 2018, the FASB issued ASU 2018‑5—Income Taxes (Topic 740): Amendments to SEC Paragraphs pursuant to SEC Staff Accounting Bulletin No. 118. This ASU provided guidance related to Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin No. 118 (“SAB 118”), which addresses the accounting implications of the Tax Cuts and Jobs Act of 2107 (the “Tax Act”). SAB 118 allows a company to record provisional amounts during a measurement period not to extend beyond one year of the enactment date and was effective upon issuance. The Tax Act did not have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU No. 2018‑13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The new guidance improves and clarifies the fair value measurement disclosure requirement of ASC 820. The new disclosure requirements include the changes in unrealized gains or losses included in other comprehensive income for recurring Level 3 fair value measurement held at the end of reporting period and the explicit requirement to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The other provisions of ASU 2018‑13 also include eliminated and modified disclosure requirements. The guidance is effective for fiscal years beginning after December 15, 2019 with early adoption permitted. The adoption of ASU 2018-13 in the year ended December 31, 2020 did not have a significant impact on the Company’s financial statements. In December 2019, the FASB issued ASU No. 2019‑12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in ASU 2019‑12 simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying and amending existing guidance. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company does not believe the adoption of this standard will have a significant impact on its financial statements.
Reverse Stock Split	(l) Reverse Stock Split On July 31, 2019, the board of directors (the “Board”) and shareholders of the Company approved a reverse stock split of the Company’s common stock at a ratio of one share for every 1.4 shares previously held. All common stock share and per-share data included in these financial statements have been retroactively adjusted to reflect the reverse stock split.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2020
Fair Value Measurements
Schedule of carrying value and fair value of financial assets and liabilities measured at fair value on a recurring basis	Fair Value Measurement at December 31, 2020 Carrying Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 8,074,658 $ 8,074,658 $ — $ — Fair Value Measurement at December 31, 2019 Carrying Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 1,858 $ 1,858 $ — $ — Derivative liability $ 106,000 $ — $ — $

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	12 Months Ended
	Dec. 31, 2020
Prepaid Expenses and Other Current Assets
Schedule of prepaid expenses and other current assets	As of December 31, 2020 2019 Prepaid insurance $ 26,542 $ — Prepaid expenses 11,690 4,135 Security deposit 6,444 6,444 $ 44,676 $ 10,579

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2020
Accrued Expenses
Schedule of accrued expenses	As of December 31, 2020 2019 Payroll and related benefits $ 16,493 $ 131,530 Accrued interest expense — 36,041 Accrued professional and clinical fees 216,198 103,300 Accrued license payments 3,833 506,000 $ 236,524 $ 776,871

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies
Schedule of milestone payments	Milestone Event Amount Commencement of Phase II $ 230,000 Commencement of Phase III $ 575,000 Filing of an NDA for Regulatory Approval (or equivalent in Europe or Japan) $ 1,150,000 Receipt of Regulatory Approval in the United States $ 5,750,000 Receipt of Regulatory Approval outside the United States $ 5,750,000

Share-Based Compensation (Table

Share-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2020
Share-Based Compensation
Schedule of stock option activity	Weighted Average Remaining Weighted Contractual Number of Average Term Shares Exercise Price (Years) Outstanding at December 31, 2018 353,565 $ 0.19 Granted — — Exercised — — Forfeited (1,283) 0.14 Outstanding at December 31, 2019 352,282 0.19 Granted 810,000 3.46 Exercised (48,435) 0.19 Forfeited (2,381) 0.14 Outstanding at December 31, 2020 1,111,466 2.57 8.4 Exercisable at December 31, 2020 1,061,466 2.54 8.3
Schedule of weighted average assumptions used to determine fair value of options	Year Ended December 31, 2020 Risk-free interest rate 0.38 % Expected life 5.00 Expected volatility 80 % Expected dividend yield —

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	12 Months Ended
	Dec. 31, 2020
Net Loss Per Share
Schedule of basic and diluted net loss per share	Year Ended December 31, 2020 2019 Numerator Net loss $ (5,462,047) $ (990,980) Denominator Weighted-average common shares outstanding, basic and diluted 6,308,961 282,614 Net loss per share, basic and diluted $ (0.87) $ (3.51)
Schedule of shares excluded from the computation of diluted weighted-average shares outstanding	December 31, 2020 2019 Redeemable convertible preferred stock, as converted — 4,117,089 Stock options 1,111,466 352,282 Warrants 100,000 —

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2020
Income Taxes
Reconciliation of income tax benefit computed at the statutory federal income tax rate to income taxes as reflected in the financial statements	Year Ended December 31, 2020 2019 Federal income tax benefit at statutory rate 21.0 % 21.0 % State and local tax, net of federal benefit 7.6 % 8.0 % Permanent differences (0.8) % 0.4 % Research and development credit 1.9 % — % Change in valuation allowance (29.7) % (29.4) % Effective income tax rate 0.0 % 0.0 %
Schedule of significant components of deferred tax assets	As of December 31, 2020 2019 Net operating loss carryforwards $ 2,460,773 $ 1,430,716 Stock compensation 547,628 37,708 Convertible debt — 24,049 Research and development tax credit carryforwards 241,414 137,826 Total deferred tax assets 3,249,815 1,630,299 Less valuation allowance (3,249,815) (1,630,299) Net deferred taxes $ — $ —

Nature of Business and Liquid_2

Nature of Business and Liquidity (Details)	Jan. 31, 2020USD ($)$ / sharesshares	Dec. 31, 2020USD ($)shares	Dec. 31, 2019USD ($)
Nature of Business and Liquidity
Revenue		$ 0
Net losses		(5,462,047)	$ (990,980)
Accumulated deficit		(14,239,075)	$ (8,777,028)
Gross proceeds from issuance of common shares		$ 12,034,406
Underwriters warrants
Nature of Business and Liquidity
Number of warrants issued | shares	100,000
Exercise price | $ / shares	$ 7.50
Percentage of exercise price to the share offering price	125.00%
Over-Allotment Option
Nature of Business and Liquidity
Term of underwriters' option	45 days
Common Stock
Nature of Business and Liquidity
Issuance of common stock | shares		2,300,000
Number of shares issued for the conversion of redeemable convertible preferred stock | shares		4,117,089
Number of common shares issued upon conversion of notes		118,470
Common Stock | IPO and Over-Allotment Option
Nature of Business and Liquidity
Issuance of common stock | shares	2,300,000
Gross proceeds from issuance of common shares	$ 13,800,000
Net proceeds from issuance of common shares	$ 12,000,000
Common Stock | IPO
Nature of Business and Liquidity
Issuance of common stock | shares	2,000,000
Share price | $ / shares	$ 6
Number of shares issued for the conversion of redeemable convertible preferred stock | shares	4,117,089
Number of common shares issued upon conversion of notes	118,470
Common Stock | Over-Allotment Option
Nature of Business and Liquidity
Issuance of common stock | shares	300,000

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details)	Jul. 31, 2019	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Summary of Significant Accounting Policies
Cash and cash equivalents		$ 8,074,658	$ 1,858
Deferred offering costs			369,595
Offering costs offset against proceeds received in IPO		$ 601,635
Payment of offering cost			$ 78,611
Reverse stock split, conversion ratio	0.7143

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	1 Months Ended
	Mar. 31, 2019	Dec. 31, 2020	Jan. 30, 2020	Dec. 31, 2019
Fair Value Measurements
Cash and cash equivalents, Carrying Value		$ 8,074,658		$ 1,858
Derivative liability, Carrying Value				106,000
Fair value of derivative liability associated with issuance of convertible promissory notes	$ 26,500		$ 132,500	106,000
Terms of convertible promissory notes, percentage of discount to be applied to conversion shares	20.00%
Recurring
Fair Value Measurements
Cash and cash equivalents, Carrying Value		8,074,658		1,858
Derivative liability, Carrying Value				106,000
Recurring | Level 1
Fair Value Measurements
Cash and cash equivalents, Fair Value		$ 8,074,658		1,858
Recurring | Level 3
Fair Value Measurements
Derivative liability, Fair Value				$ 106,000

Grant Receivable (Details)

Grant Receivable (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Sep. 30, 2019
Grant Receivable
Grant income	$ 1,157,449	$ 735,075
Grant receivable		735,075
NIH
Grant Receivable
Notice of Award, grant amount			$ 1,900,000
Grant income	1,157,449	735,075
Proceeds from grants	1,892,524	0
Grant receivable	0	$ 735,075
Remining funds available	$ 36,754

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Prepaid Expenses and Other Current Assets
Prepaid insurance	$ 26,542
Prepaid expenses	11,690	$ 4,135
Security deposit	6,444	6,444
Total prepaid expenses and other current assets	$ 44,676	$ 10,579

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Accrued Expenses
Payroll and related benefits	$ 16,493	$ 131,530
Accrued interest expense		36,041
Accrued professional and clinical fees	216,198	103,300
Accrued license payments	3,833	506,000
Total accrued expenses	$ 236,524	$ 776,871

Convertible Promissory Notes (D

Convertible Promissory Notes (Details)	Jan. 31, 2020USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Mar. 31, 2019USD ($)
Convertible Promissory Notes
Debt discount			$ 22,762	$ 26,500
Common Stock
Convertible Promissory Notes
Number of common shares issued upon conversion of notes		118,470
Common Stock | IPO
Convertible Promissory Notes
Number of common shares issued upon conversion of notes	118,470
Percentage of discount to the initial offering price of shares issued in the IPO	20.00%
Convertible promissory notes
Convertible Promissory Notes
Aggregate principal amount				$ 530,000
Stated interest rate				8.00%
Debt issuance costs incurred				$ 8,622
Effective interest rate				9.80%
Cash payments for interest		$ 0	$ 0

Commitments and Contingencies -

Commitments and Contingencies - Leases (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases
Rental expense	$ 41,603	$ 34,351

Commitments and Contingencies_2

Commitments and Contingencies - License Agreement (Details)	1 Months Ended		12 Months Ended
	May 31, 2012USD ($)	Nov. 30, 2008USD ($)	Dec. 31, 2020USD ($)item	Dec. 31, 2019USD ($)
License Agreements
Accrued license payments			$ 3,833	$ 506,000
License Agreement
License Agreements
Payments in in satisfaction of deferred annual fees			494,000
License Agreement | Horizon Therapeutics, PLC
License Agreements
One-time non-refundable fee		$ 50,000
Minimum annual commitment		$ 40,000
Amended License Agreement
License Agreements
Deferrable minimum annual commitment	$ 46,000
Threshold amount of equity financing	$ 2,000,000
Accrued license payments			$ 3,833	$ 506,000
Amended License Agreement | Horizon Therapeutics, PLC
License Agreements
Number of milestones achieved | item			0
Percentage of net sales used to calculate royalties payable			5.75%
Percentage of reduction in royalties payable if third-party license is required			50.00%
Percentage of sublicense income to be paid in addition to royalty payments			9.20%
Period for advance notice of termination			90 days
Term of license agreement			10 years
Amended License Agreement | Horizon Therapeutics, PLC | Exercise of by-out option on or after commencement of first Phase II clinical trial
License Agreements
Buy-out option price			$ 500,000
Amended License Agreement | Horizon Therapeutics, PLC | Exercise of by-out option prior to commencement of first Phase II clinical trial and prior to the commencement of the first Phase III clinical trial
License Agreements
Buy-out option price			1,000,000
Amended License Agreement | Horizon Therapeutics, PLC | Exercise of by-out option prior to commencement of first Phase III clinical trial and prior to the filing of a NDA with the FDA
License Agreements
Buy-out option price			5,000,000
Amended License Agreement | Horizon Therapeutics, PLC | Exercise of by-out option on or after the filing of a NDA for the first licensed product
License Agreements
Buy-out option price			8,000,000
Amended License Agreement | Horizon Therapeutics, PLC | Commencement of Phase II
License Agreements
Amount of milestone payment			230,000
Amended License Agreement | Horizon Therapeutics, PLC | Commencement of Phase III
License Agreements
Amount of milestone payment			575,000
Amended License Agreement | Horizon Therapeutics, PLC | Filing of an NDA for Regulatory Approval (or equivalent in Europe or Japan)
License Agreements
Amount of milestone payment			1,150,000
Amended License Agreement | Horizon Therapeutics, PLC | Receipt of Regulatory Approval in the United States
License Agreements
Amount of milestone payment			5,750,000
Amended License Agreement | Horizon Therapeutics, PLC | Receipt of Regulatory Approval outside the United States
License Agreements
Amount of milestone payment			$ 5,750,000

Commitments and Contingencies_3

Commitments and Contingencies - Employment Agreements (Details)	Dec. 31, 2020USD ($)
Executive Officers
Employment Agreements
Maximum aggregate severance payments	$ 720,000

Commitments and Contingencies_4

Commitments and Contingencies - Risks and Uncertainties (Details)	Mar. 31, 2020item
Commitments and Contingencies
Number of patients who completed treatment prior to temporary suspension of enrollment	14
Total number of enrolled patients in the Phase 2a trial	24

Redeemable Convertible Prefer_2

Redeemable Convertible Preferred Stock and Stockholders' Equity - Common and Preferred Stock (Details)	Jan. 31, 2020Voteitem$ / sharesshares	Dec. 31, 2020$ / sharesshares	Dec. 31, 2019$ / sharesshares
Redeemable Convertible Preferred Stock and Stockholders' Equity
Number of classes of stock designated | item	2
Number of common and preferred shares authorized	37,000,000
Common stock, par value (dollars per share) | $ / shares	$ 0.0001	$ 0.0001	$ 0.0001
Preferred stock, par value (dollars per share) | $ / shares	$ 0.0001
Number of common shares authorized	35,000,000	35,000,000	10,150,000
Number of preferred shares authorized	2,000,000	2,000,000	0
Number of vote for each share of common stock | Vote	1
Series A Redeemable convertible preferred stock
Redeemable Convertible Preferred Stock and Stockholders' Equity
Conversion of redeemable convertible preferred stock to common stock, shares		5,133,159
Series A Redeemable convertible preferred stock | IPO
Redeemable Convertible Preferred Stock and Stockholders' Equity
Conversion of redeemable convertible preferred stock to common stock, shares	5,133,159
Conversion price | $ / shares	$ 0.70
Series A-1 Redeemable convertible preferred stock
Redeemable Convertible Preferred Stock and Stockholders' Equity
Conversion of redeemable convertible preferred stock to common stock, shares		630,722
Series A-1 Redeemable convertible preferred stock | IPO
Redeemable Convertible Preferred Stock and Stockholders' Equity
Conversion of redeemable convertible preferred stock to common stock, shares	630,722
Conversion price | $ / shares	$ 1.26
Common Stock
Redeemable Convertible Preferred Stock and Stockholders' Equity
Issuance of common stock		2,300,000
Number of shares issued for the conversion of redeemable convertible preferred stock		4,117,089
Common Stock | IPO and Over-Allotment Option
Redeemable Convertible Preferred Stock and Stockholders' Equity
Issuance of common stock	2,300,000
Common Stock | IPO
Redeemable Convertible Preferred Stock and Stockholders' Equity
Issuance of common stock	2,000,000
Number of shares issued for the conversion of redeemable convertible preferred stock	4,117,089

Redeemable Convertible Prefer_3

Redeemable Convertible Preferred Stock and Stockholders' Equity - Warrants (Details) - Underwriters warrants	Jan. 31, 2020$ / sharesshares
Warrants
Number of warrants issued | shares	100,000
Exercise price | $ / shares	$ 7.50
Percentage of exercise price to the share offering price	125.00%
Warrant term	5 years

Share-Based Compensation (Detai

Share-Based Compensation (Details) - USD ($)	Jan. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
Number of Shares
Outstanding at beginning of the period		352,282	353,565
Granted		810,000	0
Exercised		(48,435)
Forfeited		(2,381)	(1,283)
Outstanding at end of the period		1,111,466	352,282
Exercisable at end of period		1,061,466
Weighted Average Exercise Price
Outstanding at beginning of the period (in dollars per share)		$ 0.19	$ 0.19
Granted (in dollars per share)		3.46
Exercised (in dollars per share)		0.19
Forfeited (in dollars per share)		0.14	0.14
Outstanding at end of the period (in dollars per share)		2.57	$ 0.19
Exercisable at end of period (in dollars per share)		$ 2.54
Weighted Average Remaining Contractual Term
Outstanding at end of the period (in years)		8 years 4 months 24 days
Exercisable at end of period (in years)		8 years 3 months 18 days
Additional disclosures
Aggregate intrinsic value of options outstanding		$ 5,523,826
Aggregate intrinsic value of options exercisable		$ 5,303,326
Weighted average grant date fair value		$ 2.19
Share-based compensation expense, including stock issued to consultants and advisors		$ 1,864,913	$ 8,483
Research and Development Expense
Additional disclosures
Share-based compensation expense, including stock issued to consultants and advisors		$ 138,704	$ 0
One year vesting period
Number of Shares
Granted		50,000
Consultants and advisors
Additional disclosures
Number of shares issued to consultants and advisors		25,000	0
Fair value of stock awards granted		$ 122,750
Unrecognized compensation expense		$ 0
Stock Options
Estimated fair value of options
Risk-free interest rate		0.38%
Expected life		5 years
Expected volatility		80.00%
Expected dividend yield		0.00%
Additional disclosures
Term of award		10 years
Unrecognized compensation expense		$ 31,970
Weighted-average recognition period		3 months 18 days
2019 Plan
Additional disclosures
Shares authorized	1,000,000
Shares available for future grants		168,664
2019 Plan | Stock Options
Additional disclosures
Term of award	10 years
2018 Plan | Stock Options
Number of Shares
Outstanding at end of the period	352,282
Additional disclosures
Shares available for future grants	0

Net Loss Per Share - Basic and

Net Loss Per Share - Basic and diluted net loss per share (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Numerator
Net loss	$ (5,462,047)	$ (990,980)
Denominator
Weighted-average common shares outstanding, basic and diluted	6,308,961	282,614
Net loss per share, basic and diluted	$ (0.87)	$ (3.51)

Net Loss Per Share - Potential

Net Loss Per Share - Potential shares excluded from calculation (Details) - shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Redeemable convertible preferred stock, as converted
Net Loss Per Share
Antidilutive securities excluded from computation of earnings per share		4,117,089
Stock Options
Net Loss Per Share
Antidilutive securities excluded from computation of earnings per share	1,111,466	352,282
Warrants
Net Loss Per Share
Antidilutive securities excluded from computation of earnings per share	100,000

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of income tax benefit (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Federal and state provision (benefit) for income taxes
Federal provision (benefit) for income taxes	$ 0	$ 0
State provision (benefit) for income taxes	$ 0	$ 0
Reconciliation of income tax benefit computed at the statutory federal income tax rate to income taxes as reflected in the financial statements
Federal income tax benefits at statutory rate	21.00%	21.00%
State and local tax, net of federal benefit	7.60%	8.00%
Permanent differences	(0.80%)	0.40%
Research and development credit	1.90%
Change in valuation allowance	(29.70%)	(29.40%)
Effective income tax rate	0.00%	0.00%

Income Taxes - Deferred taxes (

Income Taxes - Deferred taxes (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Deferred taxes
Net operating loss carryforwards	$ 2,460,773	$ 1,430,716
Stock compensation	547,628	37,708
Convertible debt		24,049
Research and development tax credit carryforwards	241,414	137,826
Total deferred tax assets	3,249,815	1,630,299
Less valuation allowance	(3,249,815)	(1,630,299)
Net deferred taxes	$ 0	$ 0

Income Taxes - Additional discl

Income Taxes - Additional disclosures (Details) - USD ($)	Jan. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
Income taxes
Net change in valuation allowance		$ 1,619,516	$ 291,575
Accrued interest or penalties		0	$ 0
Recognized income tax interest and penalties		0
U.S. federal
Income taxes
Net operating loss carryforwards		7,821,413
U.S. federal | Research Tax Credit Carryforward
Income taxes
Tax credit carryforward		241,414
U.S. federal | Generated in 2017 and prior
Income taxes
Net operating loss carryforwards		2,764,240
State
Income taxes
Net operating loss carryforwards		$ 10,368,296
Common Stock
Income taxes
Issuance of common stock		2,300,000
Common Stock | IPO and Over-Allotment Option
Income taxes
Issuance of common stock	2,300,000

Related-Party Transactions (Det

Related-Party Transactions (Details)	Jan. 31, 2020USD ($)	Mar. 31, 2019USD ($)director	Dec. 31, 2020USD ($)
Common Stock
Related-Party Transactions
Number of common shares issued upon conversion of notes			118,470
Convertible promissory notes
Related-Party Transactions
Aggregate principal amount		$ 530,000
Directors | Issuance of convertible promissory notes to related parties | Convertible promissory notes
Related-Party Transactions
Aggregate principal amount		$ 305,000
Number of directors who purchased convertible promissory notes issued by the Company | director		3
Directors | Conversion of promissory notes to common stock | Common Stock
Related-Party Transactions
Number of common shares issued upon conversion of notes	71,429