Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 31, 2022 | Feb. 10, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | NEUROONE MEDICAL TECHNOLOGIES Corp | |
Trading Symbol | NMTC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --09-30 | |
Entity Common Stock, Shares Outstanding | 16,363,946 | |
Amendment Flag | false | |
Entity Central Index Key | 0001500198 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Dec. 31, 2022 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-40439 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-0863354 | |
Entity Address, Address Line One | 7599 Anagram Drive | |
Entity Address, City or Town | Eden Prairie | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55344 | |
Local Phone Number | 426-1383 | |
City Area Code | 952 | |
Title of 12(b) Security | Common stock, $0.001 par value | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 4,667,432 | $ 8,160,329 |
Short-term investments | 2,975,194 | 2,981,010 |
Accounts receivable | 95,319 | 33,237 |
Inventory | 903,554 | 704,538 |
Prepaid and other assets | 325,488 | 296,649 |
Total current assets | 8,966,987 | 12,175,763 |
Intangible assets, net | 106,313 | 111,892 |
Right-of-use asset | 252,119 | 181,355 |
Property and equipment, net | 334,801 | 353,599 |
Total assets | 9,660,220 | 12,822,609 |
Current liabilities: | ||
Accounts payable | 861,638 | 927,662 |
Accrued expenses | 473,085 | 715,839 |
Deferred revenue | 1,455,188 | |
Total current liabilities | 1,334,723 | 3,098,689 |
Operating lease liability, long term | 153,721 | 119,556 |
Total liabilities | 1,488,444 | 3,218,245 |
Commitments and contingencies (Note 4) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized as of December 31, 2022 and September 30, 2022; no shares issued or outstanding as of December 31, 2022 and September 30, 2022. | ||
Common stock, $0.001 par value; 100,000,000 shares authorized as of December 31, 2022 and September 30, 2022; 16,238,464 and 16,216,540 shares issued and outstanding as of December 31, 2022 and September 30, 2022, respectively. | 16,239 | 16,217 |
Additional paid–in capital | 60,715,118 | 60,414,959 |
Accumulated deficit | (52,559,581) | (50,826,812) |
Total stockholders’ equity | 8,171,776 | 9,604,364 |
Total liabilities and stockholders’ equity | $ 9,660,220 | $ 12,822,609 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2022 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 16,238,464 | 16,216,540 |
Common stock, shares outstanding | 16,238,464 | 16,216,540 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
Product revenue | $ 114,579 | $ 33,748 |
Cost of product revenue | 126,886 | 46,844 |
Product gross loss | (12,307) | (13,096) |
Collaborations revenue | 1,455,188 | 6,374 |
Operating expenses: | ||
Selling, general and administrative | 1,663,737 | 1,742,141 |
Research and development | 1,563,496 | 1,060,462 |
Total operating expenses | 3,227,233 | 2,802,603 |
Loss from operations | (1,784,352) | (2,809,325) |
Other income | 51,583 | 1,850 |
Loss before income taxes | (1,732,769) | (2,807,475) |
Provision for income taxes | ||
Net loss | $ (1,732,769) | $ (2,807,475) |
Net loss per share: | ||
Basic and diluted (in Dollars per share) | $ (0.11) | $ (0.18) |
Number of shares used in per share calculations: | ||
Basic and diluted (in Shares) | 16,230,997 | 15,408,480 |
Condensed Statements of Opera_2
Condensed Statements of Operations (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
Net loss per share Diluted | $ (0.11) | $ (0.18) |
Number of shares used in per share calculations Diluted | 16,230,997 | 15,408,480 |
Condensed Statements of Changes
Condensed Statements of Changes in Stockholders’ Equity (unaudited) - USD ($) | Common Stock | Additional Paid–In Capital | Accumulated Deficit | Total |
Balance at beginning at Sep. 30, 2021 | $ 12,010 | $ 47,369,090 | $ (40,827,199) | $ 6,553,901 |
Balance at beginning (in Shares) at Sep. 30, 2021 | 12,010,019 | |||
Issuance of common stock in connection with public offering | $ 4,172 | 13,346,410 | 13,350,582 | |
Issuance of common stock in connection with public offering (in Shares) | 4,172,057 | |||
Issuance cost in connection with public offering | (1,352,280) | (1,352,280) | ||
Stock-based compensation | 203,072 | 203,072 | ||
Issuance of common stock upon vesting of restricted stock units | $ 6 | (6) | ||
Issuance of common stock upon vesting of restricted stock units (in Shares) | 5,646 | |||
Net loss | (2,807,475) | (2,807,475) | ||
Balance at ending at Dec. 31, 2021 | $ 16,188 | 59,566,286 | (43,634,674) | 15,947,800 |
Balance at ending (in Shares) at Dec. 31, 2021 | 16,187,722 | |||
Balance at beginning at Sep. 30, 2022 | $ 16,217 | 60,414,959 | (50,826,812) | 9,604,364 |
Balance at beginning (in Shares) at Sep. 30, 2022 | 16,216,540 | |||
Stock-based compensation | 300,181 | 300,181 | ||
Issuance of common stock upon vesting of restricted stock units | $ 22 | (22) | ||
Issuance of common stock upon vesting of restricted stock units (in Shares) | 21,924 | |||
Net loss | (1,732,769) | (1,732,769) | ||
Balance at ending at Dec. 31, 2022 | $ 16,239 | $ 60,715,118 | $ (52,559,581) | $ 8,171,776 |
Balance at ending (in Shares) at Dec. 31, 2022 | 16,238,464 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities | ||
Net loss | $ (1,732,769) | $ (2,807,475) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization and depreciation | 35,889 | 25,161 |
Stock-based compensation | 300,181 | 203,072 |
Amortization of discounts and premiums on short-term investments | (20,765) | |
Non-cash lease expense | 26,772 | 26,235 |
Change in assets and liabilities: | ||
Accounts receivable | (62,082) | 23,708 |
Inventory | (199,016) | (130,828) |
Prepaid and other assets | 74,948 | 13,649 |
Accounts payable | (154,098) | 291,172 |
Deferred revenue | (1,455,188) | (6,374) |
Accrued expenses, operating leases and other liabilities | (306,125) | (317,456) |
Net cash used in operating activities | (3,492,253) | (2,679,136) |
Investing activities | ||
Purchases of short-term investments | (1,473,419) | |
Maturities of short-term investments | 1,500,000 | |
Purchase of property and equipment | (11,512) | (61,491) |
Net cash provided by (used in) investing activities | 15,069 | (61,491) |
Financing activities | ||
Proceeds from issuance of common stock attributed to the public offering | 13,350,582 | |
Deferred issuance costs related to the at-the-market offering program and issuance costs related to the public offering | (15,713) | (1,326,978) |
Net cash (used in) provided by financing activities | (15,713) | 12,023,604 |
Net (decrease) increase in cash | (3,492,897) | 9,282,977 |
Cash at beginning of period | 8,160,329 | 6,901,346 |
Cash at end of period | 4,667,432 | 16,184,323 |
Supplemental non-cash financing and investing transactions: | ||
Unpaid deferred offering and issuance costs attributed to the at-the-market offering program and public offering | 88,074 | 322 |
Modification of right-of-use asset and associated lease liability | 97,536 | |
Reclass of deferred offering costs to additional paid-in capital in connection with public offering | $ 24,980 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Dec. 31, 2022 | |
Organization and Nature of Operations [Abstract] | |
Description of Business and Basis of Presentation | NOTE 1 – Description of Business and Basis of Presentation NeuroOne Medical Technologies Corporation (the “Company” or “NeuroOne”), a Delaware corporation, is an early-stage medical technology company developing comprehensive neuromodulation electroencephalogram (cEEG) and stereoelectrocencephalography (sEEG) recording, monitoring, ablation, and brain stimulation solutions to diagnose and treat patients with epilepsy, Parkinson’s disease, dystonia, essential tremors, chronic pain due to failed back surgeries and other related neurological disorders. The Company received 510(k) clearance from the U.S. Food and Drug Administration (“FDA”) for its Evo cortical technology in November 2019 and in October 2022, the Company received 510(k) from the FDA clearance for its Evo sEEG electrode technology for temporary (less than 30 days) use with recording, monitoring, and stimulation equipment for the recording, monitoring, and stimulation of electrical signals at the subsurface level of the brain. The Company is based in Eden Prairie, Minnesota. Global Economic Conditions Generally, worldwide economic conditions remain uncertain, particularly due to the effects of the COVID-19 pandemic and increased inflation. The general economic and capital market conditions both in the U.S. and worldwide, have been volatile in the past and at times have adversely affected the Company’s access to capital and increased the cost of capital. The capital and credit markets may not be available to support future capital raising activity on favorable terms or at all. If economic conditions continue to decline, the Company’s future cost of equity or debt capital and access to the capital markets could be adversely affected. The COVID-19 pandemic that began in late 2019 introduced significant volatility to the global economy, disrupted supply chains and had a widespread adverse effect on the financial markets. Additionally, the Company’s operating results could be materially impacted by changes in the overall macroeconomic environment and other economic factors. Changes in economic conditions, supply chain constraints, logistics challenges, labor shortages, the conflict in Ukraine, and steps taken by governments and central banks, particularly in response to the COVID-19 pandemic as well as other stimulus and spending programs, have led to higher inflation, which has led to an increase in costs and has caused changes in fiscal and monetary policy, including increased interest rates. Basis of presentation The accompanying unaudited condensed financial statements have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. The condensed financial statements may not include all disclosures required by U.S. GAAP; however, the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and the notes thereto for the year ended September 30, 2022 included in the Annual Report on Form 10-K. The condensed balance sheet at September 30, 2022 was derived from the audited financial statements of the Company. In the opinion of management, all adjustments, consisting of only normal recurring adjustments that are necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, have been made. The results of operations for the interim periods are not necessarily indicative of the operating results for the full fiscal year or any future periods. |
Going Concern
Going Concern | 3 Months Ended |
Dec. 31, 2022 | |
Going Concern [Abstract] | |
Going Concern | NOTE 2 – Going Concern The accompanying condensed financial statements have been prepared on the basis that the Company will continue as a going concern. The Company has incurred losses since inception, negative cash flows from operations, and an accumulated deficit of $52.6 million as of December 31, 2022. To date, the Company’s revenues have not been sufficient to cover its full operating costs, and as such, has been dependent on funding operations through the issuance of debt and sale of equity securities. The Company does not have adequate liquidity to fund its operations without raising additional funds and such actions are not solely within the control of the Company. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this condition. If the Company is unable to raise additional funds, or the Company’s anticipated operating results are not achieved, management believes planned expenditures may need to be reduced in order to extend the time period that existing resources can fund the Company’s operations. The Company intends to fund ongoing activities by utilizing its current cash, cash equivalents and short-term investments on hand, from product and collaborations revenue and by raising additional capital through equity or debt financings. If management is unable to obtain the necessary capital, it may have a material adverse effect on the operations of the Company and the development of its technology, or the Company may have to cease operations altogether. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 3 – Summary of Significant Accounting Policies Management’s Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with an original contractual maturity on date of purchase of less than or equal to three months to be classified and presented as cash equivalents on the Balance Sheets. Cash equivalents are stated at cost, which approximates fair value. The Company’s cash and cash equivalents may include demand deposit accounts with large financial institutions, institutional money market funds, U.S. Treasury securities, and corporate notes and bonds. The Company monitors the creditworthiness of the financial institutions, institutional money market funds, and corporations in which the Company invests its surplus funds. The Company has experienced no credit losses from its cash and cash equivalent investments. Short Term Investment The Company invests its excess cash in United States (“U.S.”) Treasury securities and highly rated corporate securities. The Company intends and has the ability to hold these investments to maturity. Securities with original maturity dates of more than three months are reported as held-to-maturity investments and are recorded at amortized cost, which approximates fair value due to the negligible risk of changes in value due to interest rates. All investments held as of December 31, 2022 and September 30, 2022 had contractual maturities of less than one year. The amortized cost and estimated fair values of the Company’s investments as of December 31, 2022 and September 30, 2022 are as follows: December 31, 2022 Unrealized Unrealized Amortized Holding Holding Fair Short-term: U.S. treasury and corporate notes $ 2,975,194 $ — $ 769 $ 2,974,425 Total $ 2,975,194 $ — $ 769 $ 2,974,425 September 30, 2022 Unrealized Unrealized Amortized Holding Holding Fair Short-term: U.S. treasury and corporate notes $ 2,981,010 $ — $ 2,870 $ 2,978,140 Total $ 2,981,010 $ — $ 2,870 $ 2,978,140 Revenue Recognition The Company entered into a development and distribution agreement which has current and future revenue recognition implications. See “Note 7 – Zimmer Development Agreement.” In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under its agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. Product Revenue Revenues from product sales are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. At the inception of each customer contract, performance obligations are identified and the total transaction price is allocated to the performance obligations. The Company commenced commercial sales of cEEG strip/grid and electrode cable assembly products in the first quarter of fiscal year 2021. Cost of Product Revenue Cost of product revenue consists of the manufacturing and materials costs incurred by the Company’s third-party contract manufacturer in connection with the Company’s strip and grid cortical electrodes (the “Strip/Grid Products”) and outside supplier materials costs in connection with the . In addition, cost of product revenue includes royalty fees incurred in connection with the Company’s license agreements. Collaborations Revenue A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in Account Standards Codification (“ASC”) Topic 606. (“ASC 606”). Performance obligations may include license rights, development services, and services associated with regulatory submission and approval processes. Significant management judgment is required to determine the level of effort required under an arrangement and the period over which the Company expects to complete its performance obligations under the arrangement. If the Company cannot reasonably estimate when its performance obligations are either completed or become inconsequential, then revenue recognition is deferred until the Company can reasonably make such estimates. Revenue is then recognized over the remaining estimated period of performance using the cumulative catch-up method. As part of the accounting for collaboration arrangements, the Company must develop assumptions that require judgment to determine the stand-alone selling price of each performance obligation identified in the contract. The Company uses key assumptions to determine the stand-alone selling price, which may include forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical and regulatory success. The Company allocates the total transaction price to each performance obligation based on the estimated relative standalone selling prices of the promised goods or service underlying each performance obligation. Licenses of intellectual property Milestone payments Royalties Fair Value of Financial Instruments The Company’s accounting for fair value measurements of assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring or nonrecurring basis adheres to the Financial Accounting Standards Board (“FASB”) fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: ● Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the Company at the measurement date. ● Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. ● Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. As of December 31, 2022 and September 30, 2022, the fair values of cash, cash equivalents, short-term investments, accounts receivable, inventory, prepaid and other assets, accounts payable and accrued expenses approximated their carrying values because of the short-term nature of these assets or liabilities. There were no transfers between fair value hierarchy levels during the three months ended December 31, 2022 and 2021. Intellectual Property The Company has entered into two licensing agreements with major research institutions, which allow for access to certain patented technology and know-how. Payments under those agreements are capitalized and amortized to general and administrative expense over the expected useful life of the acquired technology. Property and Equipment Property and equipment is recorded at cost and reduced by accumulated depreciation. Depreciation expense is recognized over the estimated useful lives of the assets using the straight-line method. The estimated useful life for equipment and furniture ranges from three to seven years and three years for software. Tangible assets acquired for research and development activities and that have alternative use are capitalized over the useful life of the acquired asset. Estimated useful lives are periodically reviewed, and, when appropriate, changes are made prospectively. Software purchased for internal use consists primarily of amounts paid for perpetual licenses to third-party software providers and installation costs. When certain events or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts. Maintenance and repairs are charged directly to expense as incurred. Impairment of Long-Lived Assets The Company evaluates its long-lived assets, which consist of licensed intellectual property, property and equipment and right of use assets for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. The Company assesses the recoverability of long-lived assets by determining whether or not the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. Allowances for Doubtful Accounts The Company records a provision for doubtful accounts, when appropriate, based on historical experience and a detailed assessment of the collectability of its accounts receivable. In estimating the allowance for doubtful accounts, the Company considers, among other factors, the aging of the accounts receivable, its historical write-offs, the credit worthiness of each customer, and general economic conditions. Account balances are charged off against the allowance when the Company believes that it is probable that the receivable will not be recovered. Actual write-offs may be in excess of the Company’s estimated allowance. Inventories Inventories are stated at the lower of cost (using the first-in, first-out “FIFO” method) or net realizable value. The Company calculates inventory valuation adjustments for excess and obsolete inventory, when appropriate, based on current inventory levels, movement, expected useful lives, and estimated future demand of the products and spare parts. The Company’s inventory is currently comprised of cEEG strip/grid and electrode cable assembly work-in-process and finished good product. The Strip/Grid Products are produced by a third-party contract manufacturer and the Electrode Cable Assembly Products are obtained from outside suppliers. Research and Development Costs Research and development costs are charged to expense as incurred. Research and development expenses may include costs incurred in performing research and development activities, including clinical trial costs, manufacturing costs for both clinical and pre-clinical materials as well as other contracted services, license fees, and other external costs. Non-refundable advance payments for goods and services that will be used in future research and development activities are expensed when the activity is performed or when the goods have been received, rather than when payment is made, in accordance with ASC 730, Research and Development Selling, General and Administrative Selling, general and administrative expenses consist primarily of personnel-related costs including stock-based compensation for personnel in functions not directly associated with research and development activities. Other significant costs include legal and litigation costs relating to corporate matters, intellectual property costs, professional fees for consultants assisting with regulatory, clinical, product development, financial matters, and sales and marketing in connection with the commercial sales of the Company’s products. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the provisions of ASC 718, Compensation — Stock Compensation Income Taxes For the Company, income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax base and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. Net Loss Per Share For the Company, basic loss per share of common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted earnings or loss per share of common stock is computed similarly to basic earnings or loss per share except the weighted average shares outstanding are increased to include additional shares from the assumed exercise of any common stock equivalents, if dilutive. The Company’s warrants, stock options and restricted stock units are considered common stock equivalents for this purpose. Diluted earnings is computed utilizing the treasury method for the warrants, stock options and restricted stock units. No incremental common stock equivalents were included in calculating diluted loss per share because such inclusion would be anti-dilutive given the net loss reported for both the three months ended December 31, 2022 and 2021. The following potential common shares were not considered in the computation of diluted net loss per share as their effect would have been anti-dilutive for the three months ended December 31: 2022 2021 Warrants 7,103,344 6,753,444 Stock options 1,313,646 1,111,226 Restricted stock units 392,500 6,888 Unissued vested restricted stock units 7,322 — Recent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, “ Financial Instruments – Credit Losses” In August 2020, FASB issued ASU 2020-06 , Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 4 – Commitments and Contingencies WARF License Agreement The Company has entered into an exclusive start-up company license agreement with the Wisconsin Alumni Research Foundation (“WARF”) for WARF’s neural probe array and thin film micro electrode technology (the “WARF License”). The WARF License grants to the Company an exclusive license to make, use and sell, in the United States only, products that employ certain licensed patents for a neural probe array or thin-film micro electrode array and method. The Company agreed to pay WARF a royalty equal to a single-digit percentage of our product sales pursuant to the WARF License, with a minimum annual royalty payment of $50,000 for 2020, $100,000 for 2021 and $150,000 for 2022 and each calendar year thereafter that the WARF License is in effect. If the Company or any of its sublicensees contest the validity of any licensed patent, the royalty rate will be doubled during the pendency of such contest and, if the contested patent is found to be valid and would be infringed by the Company if not for the WARF License, the royalty rate will be tripled for the remaining term of the WARF License. WARF may terminate the WARF License on 30 days’ written notice if we default on the payments of amounts due to WARF or fail to timely submit development reports, actively pursue our development plan or breach any other covenant in the WARF License and fail to remedy such default in 90 days or in the event of certain bankruptcy events involving us. The WARF License otherwise expires by its terms on the date that no valid claims on the patents licensed thereunder remain. The Company expects the latest expiration of a licensed patent to occur in 2030. During the three months ended December 31, 2022 and 2021, $37,500 and $25,000 in royalty fees were incurred related to the WARF License, respectively and were reflected as a component of cost of product revenue. Mayo Agreement The Company has an exclusive license and development agreement with the Mayo Foundation for Medical Education and Research (“Mayo”) related to certain intellectual property and development services for thin film micro electrode technology (“Mayo Agreement”). If the Company is successful in obtaining regulatory approval, the Company is to pay royalties to Mayo based on a percentage of net sales of products of the licensed technology through the term of the Mayo Agreement, set to expire May 25, 2037. Facility Leases Headquarters Lease On October 7, 2019, the Company entered into a non-cancellable lease agreement (the “Lease”) with certain landlords (together, the “Landlord”) pursuant to which the Company has agreed to lease office space located at 7599 Anagram Drive, Eden Prairie, Minnesota (the “Premises”). The Company took possession of the Premises on November 1, 2019, with the term of the Lease ending 65 months after such date, unless terminated earlier (the “Term”). The initial base rent for the Premises is $6,410 per month for the first 17 months, increasing to $7,076 per month by the end of the Term. In addition, as long as the Company is not in default under the Lease, the Company shall be entitled to an abatement of its base rent for the first 5 months. In addition, the Company will pay its pro rata share of the Landlord’s annual operating expenses associated with the premises, calculated as set forth in the Lease of which the Company is entitled to an abatement of these operating expense for the first 3 months. Los Gatos Lease On July 1, 2021, the Company entered into a non-cancellable facility lease (the “Los Gatos Lease”), pursuant to which the Company agreed to rent office space for its research and development operations located at 718 University Avenue, Suite #111, Los Gatos, California. The facility space under the Los Gatos Lease is approximately 1,162 square feet. The Company took possession of the office space on July 2, 2021. The initial monthly rent under the Los Gatos Lease was approximately $4,241. On November 4, 2022, the Los Gatos Lease was extended for an additional two years to December 31, 2024. The rent under the extended Los Gatos Lease ranges from $4,453 to $4,632 per month beginning on January 1, 2023. During the three months ended December 31, 2022 and 2021, rent expense associated with the facility leases amounted to $42,474 and $43,045, respectively. Supplemental cash flow information related to the operating leases was as follows: For the three months ended 2022 2021 Cash paid for amounts included in the measurement of lease liability: Operating cash flows from operating leases $ 32,928 $ 32,435 Right-of -use assets obtained in exchange for lease obligations: Modification of right-of-use asset and associated lease liability $ 97,536 $ — Supplemental balance sheet information related to the operating leases was as follows: As of As of Right-of-use assets $ 252,119 $ 181,355 Lease liabilities $ 272,405 $ 202,895 Weighted average remaining lease term (years) 2.2 2.4 Weighted average discount rate 7.8 % 6.9 % Maturity of the lease liabilities was as follows: Calendar Year As of 2023 $ 135,773 2024 139,969 2025 21,227 Total lease payments 296,969 Less imputed interest (24,564 ) Total 272,405 Short-term portion (118,684 ) Long-term portion $ 153,721 In the ordinary course of business, from time to time, the Company may be subject to a broad range of claims and legal proceedings that relate to contractual allegations, patent infringement and other claims. The Company establishes accruals when applicable for matters and commitments which it believes losses are probable and can be reasonably estimated. To date, no loss contingency for such matters and potential commitments have been recorded. Although it is not possible to predict with certainty the outcome of these matters or potential commitments, the Company is of the opinion that the ultimate resolution of these matters and potential commitments will not have a material adverse effect on its results of operations or financial position. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 3 Months Ended |
Dec. 31, 2022 | |
Supplemental Balance Sheet Information [Abstract] | |
Supplemental Balance Sheet Information | NOTE 5 – Supplemental Balance Sheet Information Prepaid and other assets Prepaid and other assets consisted of the following: As of As of Prepaids $ 221,701 $ 296,649 Deferred offering costs 103,787 — Total $ 325,488 $ 296,649 Inventory Inventory consisted of the following: As of As of Work-in-process $ 903,554 $ 630,570 Finished goods — 73,968 Total $ 903,554 $ 704,538 Intangibles Intangible assets rollforward is as follows: Useful Life Net Intangibles, September 30, 2022 12-13 years $ 111,892 Less: amortization (5,579 ) Net Intangibles, December 31, 2022 $ 106,313 Amortization expense was $5,579 for each of the three month periods ended December 31, 2022 and 2021. Property and Equipment Property and equipment held for use by category are presented in the following table: As of As of Equipment and furniture $ 549,573 $ 538,061 Software 1,895 1,895 Total property and equipment 551,468 539,956 Less accumulated depreciation (216,667 ) (186,357 ) Property and equipment, net $ 334,801 $ 353,599 Depreciation expense was $30,310 and $19,582 for the three month periods ended December 31, 2022 and 2021, respectively. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Liabilities [Abstract] | |
Accrued Expenses | NOTE 6 – Accrued Expenses Accrued expenses consisted of the following: As of As of Accrued payroll $ 186,517 $ 521,368 Operating lease liability, short term 118,684 83,339 Royalty Payments 145,883 111,132 Other 22,001 — Total $ 473,085 $ 715,839 |
Zimmer Development Agreement
Zimmer Development Agreement | 3 Months Ended |
Dec. 31, 2022 | |
Zimmer Development Agreement [Abstract] | |
Zimmer Development Agreement | NOTE 7 – Zimmer Development Agreement On July 20, 2020, the Company entered into an exclusive development and distribution agreement (as amended from time to time, the “Zimmer Development Agreement”) with Zimmer, Inc. (“Zimmer”), pursuant to which the Company granted Zimmer exclusive global rights to distribute the Strip/Grid Products and electrode cable assembly products (the “Electrode Cable Assembly Products”). Additionally, the Company granted Zimmer the exclusive right and license to distribute certain depth electrodes developed by the Company (“sEEG Products”, and together with the Strip/Grid Products and Electrode Cable Assembly Products, the “Products”). The parties have agreed to collaborate with respect to development activities under the Zimmer Development Agreement through a joint development committee composed of an equal number of representatives of Zimmer and the Company. Under the terms of the Zimmer Development Agreement, the Company is responsible for all costs and expenses related to developing the Products, and Zimmer is responsible for all costs and expenses related to the commercialization of the Products. In addition to the Zimmer Development Agreement, Zimmer and the Company have entered into a Manufacturing and Supply Agreement (the “MS Agreement”) and a supplier quality agreement (the “Quality Agreement”) with respect to the manufacturing and supply of the Products. Except as otherwise provided in the Zimmer Development Agreement, the Company is responsible for performing all development activities, including non-clinical and clinical studies directed at obtaining regulatory approval of each Product. Zimmer has agreed to use commercially reasonable efforts to promote, market and sell each Product following the “Product Availability Date” (as defined in the Zimmer Development Agreement) for such Product. Pursuant to the Zimmer Development Agreement, Zimmer made an upfront initial exclusivity fee payment of $2.0 million (the “Initial Exclusivity Fee”) to the Company in fiscal year 2020. On August 2, 2022, the Company entered into a Third Amendment to the Zimmer Development Agreement with Zimmer. Pursuant to the terms and conditions of the Third Amendment, Zimmer made a $3.5 million payment to the Company. ● $1.5 million for the sEEG Exclusivity Maintenance Fee; and ● $2.0 million for satisfaction of each of the milestone events related to the design of sEEG products set forth in the Development Agreement even though the satisfaction was after the deadlines originally identified. In addition, in connection with the Third Amendment, the Company issued Zimmer a warrant to purchase common stock (the “2022 Zimmer Warrant”). The 2022 Zimmer Warrant is exercisable for up to an aggregate of 350,000 shares of the Company’s common stock. The 2022 Zimmer Warrant has an exercise price of $3.00 per share, will be exercisable commencing six months from the issuance date, and will expire on August 2, 2027. The fair value of the 2022 Zimmer Warrant of $0.1 million was based on the Black-Scholes pricing model. Input assumptions used were as follows: a risk-free interest rate of 2.9%; expected volatility of 53.5%; expected life of 5 years; expected dividend yield of 0%; and the underlying fair market of the common stock. The 2022 Zimmer Warrant was classified in stockholders’ equity as the number of shares were fixed and determinable, no cash settlement was required and no other provisions precluded equity treatment. The Zimmer Development Agreement will expire on the tenth anniversary of the date of the first commercial sale of the last Products to achieve a first commercial sale, unless terminated earlier pursuant to its terms. Either party may terminate the Zimmer Development Agreement (x) with written notice for the other party’s material breach following a cure period or (y) if the other party becomes subject to certain insolvency proceedings. In addition, Zimmer may terminate the Zimmer Development Agreement for any reason with 90 days’ written notice, and the Company may terminate the Zimmer Development Agreement if Zimmer acquires or directly or indirectly owns a controlling interest in certain competitors of the Company. The license rights granted to Zimmer under the Strip/Grid Distribution License and sEEG Distribution License shall be exclusive from the effective date of the Third Amendment until the end of the term. The Zimmer Development Agreement and Third Amendment were accounted for under the provisions of ASC 606. In accordance with the provisions under ASC 606, the Company identified five performance obligations under the Zimmer Development Agreement and Third Amendment: (1) the Company’s obligation to grant Zimmer access to its intellectual property; (2) completion of sEEG Product development; (3) completion of Strip/Grid Product development; (4) the provision of sEEG exclusivity maintenance; and (5) completion of sEEG design modifications as requested by Zimmer. All performance obligations under the Zimmer Development Agreement and Third Amendment were met as of December 31, 2022. The aggregate transaction price associated with the Zimmer Development Agreement and Third Amendment was $5.4 million comprising the Initial Exclusivity Fee of $2.0 million and the $3.5 million payment under the Third Amendment, less the fair value of the 2022 Zimmer Warrant of $0.1 million. The transaction price was allocated between performance obligations based on their relative standalone selling prices. The Company used a market based valuation approach and an expected cost plus margin approach with regard to estimating the standalone selling price for the performance obligations. In October 2022, the Company received 510(k) clearance from the FDA for its Evo sEEG electrode technology for temporary (less than 30 days) use with recording, monitoring, and stimulation equipment for the recording, monitoring, and stimulation of electrical signals at the subsurface level of the brain. Accordingly, the Company recognized revenue in the amount of $1,455,188 during the three months ended December 31, 2022 related to the completion of the sEEG exclusivity maintenance milestone. During the three months ended December 31, 2021, the Company recognized revenue in the amount of $6,374 related to sEEG Product development. A reconciliation of the closing balance of deferred revenue related to the Zimmer Development Agreement and Third Amendment is as follows during the three months ended as of December 31, 2022 and 2021: 2022 2021 Deferred Revenue Balance as of beginning of period – September 30 $ 1,455,188 $ 8,622 Revenue recognized (1,455,188 ) (6,374 ) Balance as of end of period – December 31 $ — $ 2,248 Product Revenue Product revenue recognized during the three month periods ended December 31, 2022 and 2021 was $114,579 and $33,748, respectively, related to the Company’s Strip/Grid Products, sEEG Products and Electrode Cable Assembly Products. Advertising Expense Advertising expense is charged to selling, general and administrative expenses during the period that it is incurred. Total advertising expense amounted to $53,026 and $61,335 for the three month periods ended December 31, 2022 and 2021, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 8 – Stock-Based Compensation During the three month periods ended December 31, 2022 and 2021, stock-based compensation expense was included in general and administrative and research and development costs as follows in the accompanying condensed statements of operations. 2022 2021 General and administrative $ 255,465 $ 163,001 Research and development 44,716 40,071 Total stock-based compensation expense $ 300,181 $ 203,072 Stock Options During the three month periods ended December 31, 2022 and 2021, under the 2017 Equity Incentive Plan (the “2017 Plan”) and the 2021 Inducement Plan (the “Inducement Plan”), the Company granted 73,731 and 2,000 stock options, respectively, to its employees and consultants. Vesting generally occurs over an immediate to 48 month period based on a time of service condition. The weighted-average grant date fair value of the grants issued during the three month periods ended December 31, 2022 and 2021 was $0.66 and $1.72 per share, respectively. The total expense for the three months ended December 31, 2022 and 2021 related to stock options was $181,744 and $162,361, respectively. The total number of stock options outstanding as of December 31, 2022 and September 30, 2022 was 1,313,646 and 1,239,915, respectively. The weighted-average assumptions used in the Black-Scholes option-pricing model are as follows for the stock options granted during the three month periods ended December 31, 2022 and 2021: 2022 2021 Expected stock price volatility 53.5 % 56.0 % Expected life of options (years) 5.1 6.0 Expected dividend yield 0 % 0 % Risk free interest rate 4.0 % 1.1 % During the three month periods ended December 31, 2022 and 2021, 127,446 and 18,843 stock options vested, and zero and 13,334 stock options were forfeited during these periods, respectively. Restricted Stock Units There were no restricted stock units (“RSUs”) granted during the three months ended December 31, 2022 and 2021. Additionally, 21,930 and 5,644 RSUs vested during these periods, respectively. The total expense for the three months ended December 31, 2022 and 2021 related to these RSUs was $118,437 and $40,711, respectively. No RSUs were forfeited during the three General As of December 31, 2022, 1,630,141 shares were available in the aggregate for future issuance under the 2017 Equity Incentive Plan and Inducement Plan. Unrecognized stock-based compensation was $1,422,392 as of December 31, 2022. The unrecognized share-based expense is expected to be recognized over a weighted average period of 1.8 years. |
Concentrations
Concentrations | 3 Months Ended |
Dec. 31, 2022 | |
Concentrations [Abstract] | |
Concentrations | NOTE 9 – Concentrations Revenue One customer accounts for all of the Company’s product and collaborations revenue. Supplier concentration One contract manufacturer produces all of the Company’s Strip/Grid Products and sEEG Products. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10 – Income Taxes The effective tax rate for the three months ended December 31, 2022 and 2021 was zero percent. As a result of the analysis of all available evidence as of December 31, 2022 and September 30, 2022, the Company recorded a full valuation allowance on its net deferred tax assets. Consequently, the Company reported no income tax benefit during the three months ended December 31, 2022 and 2021. If the Company’s assumptions change and the Company believes that it will be able to realize these deferred tax assets, the tax benefits relating to any reversal of the valuation allowance on deferred tax assets will be recognized as a reduction of future income tax expense. If the assumptions do not change, each period the Company could record an additional valuation allowance on any increases in the deferred tax assets. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity [Abstract] | |
Stockholders’ Equity | NOTE 11 – Stockholders’ Equity At-The-Market Offering On December 21, 2022, the Company entered into a Capital on Demand TM Public Offering On October 13, 2021, the Company, entered into an Underwriting Agreement (the “Underwriting Agreement”) with Craig-Hallum Capital Group LLC, as underwriter (the “Underwriter”), relating to the issuance and sale of 3,750,000 shares of the Company’s common stock at a price to the public of $3.20 per share. In addition, under the terms of the Underwriting Agreement, the Company granted the Underwriter an option, exercisable for 30 days, to purchase up to an additional 562,500 shares of common stock on the same terms. The base offering closed on October 15, 2021, and the sale of 422,057 shares of common stock subject to the Underwriter’s overallotment option closed on November 15, 2021. The gross proceeds to the Company from this offering were approximately $13.4 million prior to deducting underwriting discounts and other offering expenses payable by the Company in the amount of approximately $1.4 million in the aggregate. Warrant Activity and Summary There was no warrant activity during the three months ended December 31, 2022. The following table summarizes information about warrants outstanding at December 31, 2022: Exercise Price Number Outstanding Weighted Average Number Exercisable at $ 3.00 350,000 4.59 — $ 5.25 4,166,682 3.04 4,166,682 $ 5.61 916,704 1.48 916,704 $ 6.00 45,171 1.50 45,171 $ 7.50 279,727 1.16 279,727 $ 8.25 62,906 1.50 62,906 $ 9.00 1,282,154 0.92 1,282,154 Total 7,103,344 6,753,344 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 12 – Subsequent Events 2017 Plan Evergreen Provision Under the 2017 Plan, the shares reserved automatically increase on January 1st of each year, for a period of not more than ten years from the date the 2017 Plan is approved by the stockholders of the Company, commencing on January 1, 2019 and ending on (and including) January 1, 2027, to an amount equal to 13% of the fully-diluted shares outstanding as of December 31st of the preceding calendar year. Notwithstanding the foregoing, the Board may act prior to January 1st of a given year to provide that there will be no January 1st increase in the share reserve for such year or that the increase in the share reserve for such year will be a lesser number of shares of common stock than would otherwise occur pursuant to the preceding sentence. “Fully Diluted Shares” as of a date means an amount equal to the number of shares of common stock (i) outstanding and (ii) issuable upon exercise, conversion or settlement of outstanding awards under the 2017 Plan and any other outstanding options, warrants or other securities of the Company that are (directly or indirectly) convertible or exchangeable into or exercisable for shares of common stock, in each case as of the close of business of the Company on December 31 of the preceding calendar year. Effective January 1, 2023, 129,479 shares were added to the 2017 Plan as a result of the evergreen provision. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Management’s Use of Estimates | Management’s Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original contractual maturity on date of purchase of less than or equal to three months to be classified and presented as cash equivalents on the Balance Sheets. Cash equivalents are stated at cost, which approximates fair value. The Company’s cash and cash equivalents may include demand deposit accounts with large financial institutions, institutional money market funds, U.S. Treasury securities, and corporate notes and bonds. The Company monitors the creditworthiness of the financial institutions, institutional money market funds, and corporations in which the Company invests its surplus funds. The Company has experienced no credit losses from its cash and cash equivalent investments. |
Short Term Investment | Short Term Investment The Company invests its excess cash in United States (“U.S.”) Treasury securities and highly rated corporate securities. The Company intends and has the ability to hold these investments to maturity. Securities with original maturity dates of more than three months are reported as held-to-maturity investments and are recorded at amortized cost, which approximates fair value due to the negligible risk of changes in value due to interest rates. All investments held as of December 31, 2022 and September 30, 2022 had contractual maturities of less than one year. The amortized cost and estimated fair values of the Company’s investments as of December 31, 2022 and September 30, 2022 are as follows: December 31, 2022 Unrealized Unrealized Amortized Holding Holding Fair Short-term: U.S. treasury and corporate notes $ 2,975,194 $ — $ 769 $ 2,974,425 Total $ 2,975,194 $ — $ 769 $ 2,974,425 September 30, 2022 Unrealized Unrealized Amortized Holding Holding Fair Short-term: U.S. treasury and corporate notes $ 2,981,010 $ — $ 2,870 $ 2,978,140 Total $ 2,981,010 $ — $ 2,870 $ 2,978,140 |
Revenue Recognition | Revenue Recognition The Company entered into a development and distribution agreement which has current and future revenue recognition implications. See “Note 7 – Zimmer Development Agreement.” In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under its agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. Product Revenue Revenues from product sales are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. At the inception of each customer contract, performance obligations are identified and the total transaction price is allocated to the performance obligations. The Company commenced commercial sales of cEEG strip/grid and electrode cable assembly products in the first quarter of fiscal year 2021. Cost of Product Revenue Cost of product revenue consists of the manufacturing and materials costs incurred by the Company’s third-party contract manufacturer in connection with the Company’s strip and grid cortical electrodes (the “Strip/Grid Products”) and outside supplier materials costs in connection with the . In addition, cost of product revenue includes royalty fees incurred in connection with the Company’s license agreements. Collaborations Revenue A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in Account Standards Codification (“ASC”) Topic 606. (“ASC 606”). Performance obligations may include license rights, development services, and services associated with regulatory submission and approval processes. Significant management judgment is required to determine the level of effort required under an arrangement and the period over which the Company expects to complete its performance obligations under the arrangement. If the Company cannot reasonably estimate when its performance obligations are either completed or become inconsequential, then revenue recognition is deferred until the Company can reasonably make such estimates. Revenue is then recognized over the remaining estimated period of performance using the cumulative catch-up method. As part of the accounting for collaboration arrangements, the Company must develop assumptions that require judgment to determine the stand-alone selling price of each performance obligation identified in the contract. The Company uses key assumptions to determine the stand-alone selling price, which may include forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical and regulatory success. The Company allocates the total transaction price to each performance obligation based on the estimated relative standalone selling prices of the promised goods or service underlying each performance obligation. Licenses of intellectual property Milestone payments Royalties |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s accounting for fair value measurements of assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring or nonrecurring basis adheres to the Financial Accounting Standards Board (“FASB”) fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: ● Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the Company at the measurement date. ● Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. ● Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. As of December 31, 2022 and September 30, 2022, the fair values of cash, cash equivalents, short-term investments, accounts receivable, inventory, prepaid and other assets, accounts payable and accrued expenses approximated their carrying values because of the short-term nature of these assets or liabilities. There were no transfers between fair value hierarchy levels during the three months ended December 31, 2022 and 2021. |
Intellectual Property | Intellectual Property The Company has entered into two licensing agreements with major research institutions, which allow for access to certain patented technology and know-how. Payments under those agreements are capitalized and amortized to general and administrative expense over the expected useful life of the acquired technology. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost and reduced by accumulated depreciation. Depreciation expense is recognized over the estimated useful lives of the assets using the straight-line method. The estimated useful life for equipment and furniture ranges from three to seven years and three years for software. Tangible assets acquired for research and development activities and that have alternative use are capitalized over the useful life of the acquired asset. Estimated useful lives are periodically reviewed, and, when appropriate, changes are made prospectively. Software purchased for internal use consists primarily of amounts paid for perpetual licenses to third-party software providers and installation costs. When certain events or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts. Maintenance and repairs are charged directly to expense as incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates its long-lived assets, which consist of licensed intellectual property, property and equipment and right of use assets for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. The Company assesses the recoverability of long-lived assets by determining whether or not the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. |
Allowances for Doubtful Accounts | Allowances for Doubtful Accounts The Company records a provision for doubtful accounts, when appropriate, based on historical experience and a detailed assessment of the collectability of its accounts receivable. In estimating the allowance for doubtful accounts, the Company considers, among other factors, the aging of the accounts receivable, its historical write-offs, the credit worthiness of each customer, and general economic conditions. Account balances are charged off against the allowance when the Company believes that it is probable that the receivable will not be recovered. Actual write-offs may be in excess of the Company’s estimated allowance. |
Inventories | Inventories Inventories are stated at the lower of cost (using the first-in, first-out “FIFO” method) or net realizable value. The Company calculates inventory valuation adjustments for excess and obsolete inventory, when appropriate, based on current inventory levels, movement, expected useful lives, and estimated future demand of the products and spare parts. The Company’s inventory is currently comprised of cEEG strip/grid and electrode cable assembly work-in-process and finished good product. The Strip/Grid Products are produced by a third-party contract manufacturer and the Electrode Cable Assembly Products are obtained from outside suppliers. |
Research and Development Costs | Research and Development Costs Research and development costs are charged to expense as incurred. Research and development expenses may include costs incurred in performing research and development activities, including clinical trial costs, manufacturing costs for both clinical and pre-clinical materials as well as other contracted services, license fees, and other external costs. Non-refundable advance payments for goods and services that will be used in future research and development activities are expensed when the activity is performed or when the goods have been received, rather than when payment is made, in accordance with ASC 730, Research and Development |
Selling, General and Administrative | Selling, General and Administrative Selling, general and administrative expenses consist primarily of personnel-related costs including stock-based compensation for personnel in functions not directly associated with research and development activities. Other significant costs include legal and litigation costs relating to corporate matters, intellectual property costs, professional fees for consultants assisting with regulatory, clinical, product development, financial matters, and sales and marketing in connection with the commercial sales of the Company’s products. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the provisions of ASC 718, Compensation — Stock Compensation |
Income Taxes | Income Taxes For the Company, income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax base and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. |
Net Loss Per Share | Net Loss Per Share For the Company, basic loss per share of common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted earnings or loss per share of common stock is computed similarly to basic earnings or loss per share except the weighted average shares outstanding are increased to include additional shares from the assumed exercise of any common stock equivalents, if dilutive. The Company’s warrants, stock options and restricted stock units are considered common stock equivalents for this purpose. Diluted earnings is computed utilizing the treasury method for the warrants, stock options and restricted stock units. No incremental common stock equivalents were included in calculating diluted loss per share because such inclusion would be anti-dilutive given the net loss reported for both the three months ended December 31, 2022 and 2021. The following potential common shares were not considered in the computation of diluted net loss per share as their effect would have been anti-dilutive for the three months ended December 31: 2022 2021 Warrants 7,103,344 6,753,444 Stock options 1,313,646 1,111,226 Restricted stock units 392,500 6,888 Unissued vested restricted stock units 7,322 — |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, “ Financial Instruments – Credit Losses” In August 2020, FASB issued ASU 2020-06 , Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of invests its excess cash in unit | December 31, 2022 Unrealized Unrealized Amortized Holding Holding Fair Short-term: U.S. treasury and corporate notes $ 2,975,194 $ — $ 769 $ 2,974,425 Total $ 2,975,194 $ — $ 769 $ 2,974,425 September 30, 2022 Unrealized Unrealized Amortized Holding Holding Fair Short-term: U.S. treasury and corporate notes $ 2,981,010 $ — $ 2,870 $ 2,978,140 Total $ 2,981,010 $ — $ 2,870 $ 2,978,140 |
Schedule of computation of diluted net loss per share | 2022 2021 Warrants 7,103,344 6,753,444 Stock options 1,313,646 1,111,226 Restricted stock units 392,500 6,888 Unissued vested restricted stock units 7,322 — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of supplemental cash flow information related to the operating lease | For the three months ended 2022 2021 Cash paid for amounts included in the measurement of lease liability: Operating cash flows from operating leases $ 32,928 $ 32,435 Right-of -use assets obtained in exchange for lease obligations: Modification of right-of-use asset and associated lease liability $ 97,536 $ — |
Schedule of supplemental balance sheet information related to the operating lease | As of As of Right-of-use assets $ 252,119 $ 181,355 Lease liabilities $ 272,405 $ 202,895 Weighted average remaining lease term (years) 2.2 2.4 Weighted average discount rate 7.8 % 6.9 % |
Schedule of maturity of the lease liability | Calendar Year As of 2023 $ 135,773 2024 139,969 2025 21,227 Total lease payments 296,969 Less imputed interest (24,564 ) Total 272,405 Short-term portion (118,684 ) Long-term portion $ 153,721 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Supplemental Balance Sheet Information Table [Abstract] | |
Schedule of prepaid and other assets | As of As of Prepaids $ 221,701 $ 296,649 Deferred offering costs 103,787 — Total $ 325,488 $ 296,649 |
Schedule of inventory consisted | As of As of Work-in-process $ 903,554 $ 630,570 Finished goods — 73,968 Total $ 903,554 $ 704,538 |
Schedule of intangible assets | Useful Life Net Intangibles, September 30, 2022 12-13 years $ 111,892 Less: amortization (5,579 ) Net Intangibles, December 31, 2022 $ 106,313 |
Schedule of property and equipment | As of As of Equipment and furniture $ 549,573 $ 538,061 Software 1,895 1,895 Total property and equipment 551,468 539,956 Less accumulated depreciation (216,667 ) (186,357 ) Property and equipment, net $ 334,801 $ 353,599 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Liabilities [Abstract] | |
Schedule of accrued expenses | As of As of Accrued payroll $ 186,517 $ 521,368 Operating lease liability, short term 118,684 83,339 Royalty Payments 145,883 111,132 Other 22,001 — Total $ 473,085 $ 715,839 |
Zimmer Development Agreement (T
Zimmer Development Agreement (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Zimmer Development Agreement [Abstract] | |
Schedule of deferred revenue | 2022 2021 Deferred Revenue Balance as of beginning of period – September 30 $ 1,455,188 $ 8,622 Revenue recognized (1,455,188 ) (6,374 ) Balance as of end of period – December 31 $ — $ 2,248 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expense | 2022 2021 General and administrative $ 255,465 $ 163,001 Research and development 44,716 40,071 Total stock-based compensation expense $ 300,181 $ 203,072 |
Schedule of weighted-average assumptions used in the Black-Scholes option-pricing model | 2022 2021 Expected stock price volatility 53.5 % 56.0 % Expected life of options (years) 5.1 6.0 Expected dividend yield 0 % 0 % Risk free interest rate 4.0 % 1.1 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity [Abstract] | |
Schedule of summarizes information about warrants outstanding | Exercise Price Number Outstanding Weighted Average Number Exercisable at $ 3.00 350,000 4.59 — $ 5.25 4,166,682 3.04 4,166,682 $ 5.61 916,704 1.48 916,704 $ 6.00 45,171 1.50 45,171 $ 7.50 279,727 1.16 279,727 $ 8.25 62,906 1.50 62,906 $ 9.00 1,282,154 0.92 1,282,154 Total 7,103,344 6,753,344 |
Going Concern (Details)
Going Concern (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accumulated deficit | $ 52.6 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - Schedule of invests its excess cash in unit - U.S. treasury and corporate notes [Member] - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | $ 2,975,194 | $ 2,981,010 |
Unrealized Holding Gains | ||
Unrealized Holding Losses | 769 | 2,870 |
Fair Value | $ 2,974,425 | $ 2,978,140 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of computation of diluted net loss per share - shares | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Computation of Diluted Net Loss Per Share [Abstract] | ||
Warrants | 7,103,344 | 6,753,444 |
Stock options | 1,313,646 | 1,111,226 |
Restricted stock units | 392,500 | 6,888 |
Unissued vested restricted stock units | 7,322 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | 3 Months Ended | 12 Months Ended | |||||
Jan. 01, 2023 USD ($) | Jul. 02, 2021 USD ($) m² | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | |
Commitments and Contingencies (Details) [Line Items] | |||||||
Royalty payments - 2020 | $ 50,000 | ||||||
Royalty payments - 2021 | $ 100,000 | ||||||
Royalty payments - 2022 | $ 150,000 | ||||||
Royalty fee | $ 37,500 | $ 25,000 | |||||
Facility lease agreement, description | The initial base rent for the Premises is $6,410 per month for the first 17 months, increasing to $7,076 per month by the end of the Term. In addition, as long as the Company is not in default under the Lease, the Company shall be entitled to an abatement of its base rent for the first 5 months. In addition, the Company will pay its pro rata share of the Landlord’s annual operating expenses associated with the premises, calculated as set forth in the Lease of which the Company is entitled to an abatement of these operating expense for the first 3 months. | ||||||
Lease space (in Square Meters) | m² | 1,162 | ||||||
Lease rental expense | $ 4,453 | $ 4,241 | |||||
Additional extended term | 2 years | ||||||
Rent expense | $ 42,474 | $ 43,045 | |||||
Mayo Agreement [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Royalty payments | $ 739 | $ 690 | |||||
Los Gatos Lease range [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Lease rental expense | $ 4,632 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of supplemental cash flow information related to the operating lease - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liability: | ||
Operating cash flows from operating leases | $ 32,928 | $ 32,435 |
Right-of -use assets obtained in exchange for lease obligations: | ||
Modification of right-of-use asset and associated lease liability | $ 97,536 |
Commitments and Contingencies_4
Commitments and Contingencies (Details) - Schedule of supplemental balance sheet information related to the operating lease - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 |
Schedule Of Supplemental Balance Sheet Information Related To The Operating Lease Abstract | ||
Right-of-use assets | $ 252,119 | $ 181,355 |
Lease liabilities | $ 272,405 | $ 202,895 |
Weighted average remaining lease term (years) | 2 years 2 months 12 days | 2 years 4 months 24 days |
Weighted average discount rate | 7.80% | 6.90% |
Commitments and Contingencies_5
Commitments and Contingencies (Details) - Schedule of maturity of the lease liability | Dec. 31, 2022 USD ($) |
Schedule Of Maturity Of The Lease Liability Abstract | |
2023 | $ 135,773 |
2024 | 139,969 |
2025 | 21,227 |
Total lease payments | 296,969 |
Less imputed interest | (24,564) |
Total | 272,405 |
Short-term portion | (118,684) |
Long-term portion | $ 153,721 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Balance Sheet Information [Abstract] | ||
Amortization expense | $ 5,579 | $ 5,579 |
Depreciation expense | $ 30,310 | $ 19,582 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information (Details) - Schedule of prepaid and other assets - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 |
Schedule of prepaid and other assets [Abstract] | ||
Prepaids | $ 221,701 | $ 296,649 |
Deferred offering costs | 103,787 | |
Total | $ 325,488 | $ 296,649 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information (Details) - Schedule of inventory consisted - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 |
Schedule of Inventory Consisted [Abstract] | ||
Work-in-process | $ 903,554 | $ 630,570 |
Finished goods | 73,968 | |
Total | $ 903,554 | $ 704,538 |
Supplemental Balance Sheet In_6
Supplemental Balance Sheet Information (Details) - Schedule of intangible assets | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Net Intangibles, beginning | $ 111,892 |
Less: amortization | (5,579) |
Net Intangibles, ending | $ 106,313 |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Net Intangibles, beginning | 12 years |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Net Intangibles, beginning | 13 years |
Supplemental Balance Sheet In_7
Supplemental Balance Sheet Information (Details) - Schedule of property and equipment - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 |
Schedule of Property and Equipment [Abstract] | ||
Equipment and furniture | $ 549,573 | $ 538,061 |
Software | 1,895 | 1,895 |
Total property and equipment | 551,468 | 539,956 |
Less accumulated depreciation | (216,667) | (186,357) |
Property and equipment, net | $ 334,801 | $ 353,599 |
Accrued Expenses (Details) - Sc
Accrued Expenses (Details) - Schedule of accrued expenses - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 |
Schedule of accrued expenses [Abstract] | ||
Accrued payroll | $ 186,517 | $ 521,368 |
Operating lease liability, short term | 118,684 | 83,339 |
Royalty Payments | 145,883 | 111,132 |
Other | 22,001 | |
Total | $ 473,085 | $ 715,839 |
Zimmer Development Agreement (D
Zimmer Development Agreement (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Aug. 02, 2022 | Oct. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Zimmer Development Agreement (Details) [Line Items] | ||||
Initial fee payment | $ 2,000,000 | |||
Aggregate number of warrants exercisable (in Shares) | 350,000 | |||
Warrants exercise price (in Dollars per share) | $ 3 | |||
Fair value of warrants | $ 100,000 | |||
Risk-free interest rate | 2.90% | |||
Expected volatility percentage | 53.50% | 56% | ||
Expected life | 5 years | |||
Expected dividend yield percentage | 0% | 0% | ||
Development agreement | $ 5,400,000 | $ 6,374 | ||
Initial exclusivity fee | 2,000,000 | |||
Milestone Payments | 3,500,000 | |||
Product revenue | 114,579 | 33,748 | ||
Total advertising expense | 53,026 | $ 61,335 | ||
Development Agreement [Member] | ||||
Zimmer Development Agreement (Details) [Line Items] | ||||
Revenue recognized | $ 1,455,188 | |||
Scenario Two [Member] | Development Agreement [Member] | Modified Connector by April 30, 2021 [Member] | ||||
Zimmer Development Agreement (Details) [Line Items] | ||||
Milestone payments paid | $ 3,500,000 | |||
Scenario Two [Member] | Development Agreement [Member] | Modified Connector by September 30, 2021 [Member] | ||||
Zimmer Development Agreement (Details) [Line Items] | ||||
Milestone payments paid | 2,000,000 | |||
Scenario One [Member] | Development Agreement [Member] | April 30, 2021 [Member] | ||||
Zimmer Development Agreement (Details) [Line Items] | ||||
Milestone payments to Neuroone | $ 1,500,000 | |||
Scenario One [Member] | Development Agreement [Member] | On or before June 30, 2021 [Member] | ||||
Zimmer Development Agreement (Details) [Line Items] | ||||
Fair value of warrants | $ 100,000 |
Zimmer Development Agreement _2
Zimmer Development Agreement (Details) - Schedule of deferred revenue - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Revenue | ||
Balance as beginning | $ 1,455,188 | $ 8,622 |
Revenue recognized | (1,455,188) | (6,374) |
Balance as end | $ 2,248 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | |
Stock-Based Compensation (Details) [Line Items] | |||
Granted shares | 73,731 | 2,000 | |
Total number of stock options outstanding | 1,313,646 | 1,239,915 | |
Compensation expense (in Dollars) | |||
Unrecognized stock-based compensation (in Dollars) | $ 1,422,392 | ||
Weighted average period | 1 year 9 months 18 days | ||
2016 and 2017 Equity Incentive Plan [Member] | |||
Stock-Based Compensation (Details) [Line Items] | |||
Future issuance shares | 1,630,141 | ||
Stock Options [Member] | |||
Stock-Based Compensation (Details) [Line Items] | |||
Weighted-average grant date fair value, per share (in Dollars per share) | $ 0.66 | $ 1.72 | |
Board of Directors [Member] | |||
Stock-Based Compensation (Details) [Line Items] | |||
Stock options vested | 127,446 | 18,843 | |
Stock options forfeited | 13,334 | 0 | |
Stock Options [Member] | |||
Stock-Based Compensation (Details) [Line Items] | |||
Total expense (in Dollars) | $ 181,744 | $ 162,361 | |
Restricted Stock Units (RSUs) [Member] | |||
Stock-Based Compensation (Details) [Line Items] | |||
Restricted stock units vested | 21,930 | 5,644 | |
Total expense (in Dollars) | $ 118,437 | $ 40,711 |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details) - Schedule of stock-based compensation expense - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-Based Compensation (Details) - Schedule of stock-based compensation expense [Line Items] | ||
Total stock-based compensation expense | $ 300,181 | $ 203,072 |
Selling, general and administrative [Member] | ||
Stock-Based Compensation (Details) - Schedule of stock-based compensation expense [Line Items] | ||
Total stock-based compensation expense | 255,465 | 163,001 |
Research and development [Member] | ||
Stock-Based Compensation (Details) - Schedule of stock-based compensation expense [Line Items] | ||
Total stock-based compensation expense | $ 44,716 | $ 40,071 |
Stock-Based Compensation (Det_3
Stock-Based Compensation (Details) - Schedule of weighted-average assumptions used in the Black-Scholes option-pricing model | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Weighted Average Assumptions Used In The Black Scholes Option Pricing Model Abstract | ||
Expected stock price volatility | 53.50% | 56% |
Expected life of options (years) | 5 years 1 month 6 days | 6 years |
Expected dividend yield | 0% | 0% |
Risk free interest rate | 4% | 1.10% |
Concentrations (Details)
Concentrations (Details) | 3 Months Ended |
Dec. 31, 2022 | |
Concentrations [Abstract] | |
Number of customer | One |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 0% | 0% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Oct. 13, 2021 | Dec. 21, 2022 | Dec. 31, 2022 | Oct. 15, 2021 | |
Stockholders' Equity (Details) [Line Items] | ||||
Aggregate offering price | $ 14,500,000 | |||
Fixed commission rate | 3% | |||
Deferred costs | $ 103,787 | |||
Additional shares purchased (in Shares) | 562,500 | |||
Public Offering [Member] | ||||
Stockholders' Equity (Details) [Line Items] | ||||
Additional shares purchased (in Shares) | 3,750,000 | 422,057 | ||
Offering price, per share (in Dollars per share) | $ 3.2 | |||
Gross proceeds | 13,400,000 | |||
Other offering issuance costs | $ 1,400,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Schedule of summarizes information about warrants outstanding - Warrant [Member] | 3 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Class of Warrant or Right [Line Items] | |
Number Outstanding, Total | 7,103,344 |
Number Exercisable , Total | 6,753,344 |
3.00 [Member] | |
Class of Warrant or Right [Line Items] | |
Exercise Price, Total (in Dollars per share) | $ / shares | $ 3 |
Number Outstanding, Total | 350,000 |
Weighted Average Remaining Contractual life (Years), Total | 4 years 7 months 2 days |
Number Exercisable , Total | |
5.25 [Member] | |
Class of Warrant or Right [Line Items] | |
Exercise Price, Total (in Dollars per share) | $ / shares | $ 5.25 |
Number Outstanding, Total | 4,166,682 |
Weighted Average Remaining Contractual life (Years), Total | 3 years 14 days |
Number Exercisable , Total | 4,166,682 |
5.61 [Member] | |
Class of Warrant or Right [Line Items] | |
Exercise Price, Total (in Dollars per share) | $ / shares | $ 5.61 |
Number Outstanding, Total | 916,704 |
Weighted Average Remaining Contractual life (Years), Total | 1 year 5 months 23 days |
Number Exercisable , Total | 916,704 |
6.00 [Member] | |
Class of Warrant or Right [Line Items] | |
Exercise Price, Total (in Dollars per share) | $ / shares | $ 6 |
Number Outstanding, Total | 45,171 |
Weighted Average Remaining Contractual life (Years), Total | 1 year 6 months |
Number Exercisable , Total | 45,171 |
7.50 [Member] | |
Class of Warrant or Right [Line Items] | |
Exercise Price, Total (in Dollars per share) | $ / shares | $ 7.5 |
Number Outstanding, Total | 279,727 |
Weighted Average Remaining Contractual life (Years), Total | 1 year 1 month 28 days |
Number Exercisable , Total | 279,727 |
8.25 [Member] | |
Class of Warrant or Right [Line Items] | |
Exercise Price, Total (in Dollars per share) | $ / shares | $ 8.25 |
Number Outstanding, Total | 62,906 |
Weighted Average Remaining Contractual life (Years), Total | 1 year 6 months |
Number Exercisable , Total | 62,906 |
9.00 [Member] | |
Class of Warrant or Right [Line Items] | |
Exercise Price, Total (in Dollars per share) | $ / shares | $ 9 |
Number Outstanding, Total | 1,282,154 |
Weighted Average Remaining Contractual life (Years), Total | 11 months 1 day |
Number Exercisable , Total | 1,282,154 |
Subsequent Events (Details)
Subsequent Events (Details) - shares | 3 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2023 | |
Subsequent Events (Details) [Line Items] | ||
Fully-diluted shares, percentage | 13% | |
Subsequent Event [Member] | ||
Subsequent Events (Details) [Line Items] | ||
Amount of incremental shares authorized | 129,479 |