Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 01, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-40708 | |
Entity Registrant Name | RENOVORX, INC. | |
Entity Central Index Key | 0001574094 | |
Entity Tax Identification Number | 27-1448452 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 4546 El Camino Real | |
Entity Address, Address Line Two | Suite B1 | |
Entity Address, City or Town | Los Altos | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94022 | |
City Area Code | (650) | |
Local Phone Number | 284-4433 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | RNXT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,908,150 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 17,725 | $ 1,795 |
Prepaid expenses and other current assets | 439 | 115 |
Total current assets | 18,164 | 1,910 |
Leasehold improvements, net | 10 | |
Other assets | 4 | 4 |
Total assets | 18,178 | 1,914 |
Current liabilities: | ||
Accounts payable | 133 | 162 |
Accrued expenses | 492 | 311 |
Promissory note, current | 117 | |
Convertible note | 2,650 | |
Derivative liability | 856 | |
Total current liabilities | 625 | 4,096 |
Promissory note, net of current portion | 23 | |
Total liabilities | 625 | 4,119 |
Commitments and contingencies (Note 8) | ||
Convertible preferred stock, $0.0001 par value; 15,000,000 and 22,360,455 shares authorized; 0 and 3,535,469 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively (aggregate liquidation preference of $0 at September 30, 2021 and $12,782 as of December 31, 2020) | 12,451 | |
Stockholders’ equity (deficit): | ||
Common stock, $0.0001 par value, 250,000,000 and 42,000,000 shares authorized; 8,908,150 and 2,291,497 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 1 | 1 |
Additional paid-in capital | 36,481 | 303 |
Accumulated deficit | (18,929) | (14,960) |
Total stockholders’ equity (deficit) | 17,553 | (14,656) |
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | $ 18,178 | $ 1,914 |
Condensed Balance Sheets (Una_2
Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Temporary equity, par value | $ 0.0001 | $ 0.0001 |
Temporary equity, shares authorized | 15,000,000 | 22,360,455 |
Temporary equity, shares issued | 0 | 3,535,469 |
Temporary equity, shares outstanding | 0 | 3,535,469 |
Temporary equity, liquidation preference | $ 0 | $ 12,782 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 250,000,000 | 42,000,000 |
Common Stock, Shares, Issued | 8,908,150 | 2,291,497 |
Common Stock, Shares, Outstanding | 8,908,150 | 2,291,497 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating expenses: | ||||
Research and development | $ 767 | $ 727 | $ 1,938 | $ 1,934 |
General and administrative | 628 | 183 | 1,377 | 631 |
Total operating expenses | 1,395 | 910 | 3,315 | 2,565 |
Loss from operations | (1,395) | (910) | (3,315) | (2,565) |
Interest expense, net | (208) | (186) | (835) | (355) |
Other income, net | 170 | 119 | ||
Loss (gain) on loan extinguishment | (78) | 62 | ||
Total other expenses, net | (116) | (186) | (654) | (355) |
Net loss | $ (1,511) | $ (1,096) | $ (3,969) | $ (2,920) |
Net loss per share, basic and diluted | $ (0.27) | $ (0.48) | $ (1.09) | $ (1.31) |
Weighted-average shares of common stock outstanding, basic and diluted | 5,620,135 | 2,263,589 | 3,640,988 | 2,233,645 |
Condensed Statements of Convert
Condensed Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Convertible Preferred Stock [Member]Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 12,391 | $ 235 | $ (11,162) | $ (10,926) | |
Beginning balance, shares at Dec. 31, 2019 | 3,508,631 | 2,177,187 | |||
Issuance of common stock upon exercise of stock options | 11 | 11 | |||
Issuance of common stock upon exercise of stock options, shares | 16,666 | ||||
Stock-based compensation expense | 10 | 10 | |||
Net loss | (1,051) | (1,051) | |||
Issuance of restricted stock award to Nonemployee for service | 17 | 17 | |||
Issuance of restricted stock award to Nonemployee for service, shares | 24,478 | ||||
Issuance of Series A-1 convertible preferred stock upon exercise of warrant | $ 25 | ||||
Issuance of Series A-1 convertible preferred stock upon exercise of warrant, shares | 26,838 | ||||
Warrant liability transferred to mezzanine equity upon exercise of warrant | $ 35 | ||||
Ending Balance, value at Mar. 31, 2020 | $ 12,451 | $ 1 | 273 | (12,213) | (11,939) |
Ending Balance, shares at Mar. 31, 2020 | 3,535,469 | 2,218,331 | |||
Beginning balance, value at Dec. 31, 2019 | $ 12,391 | 235 | (11,162) | (10,926) | |
Beginning balance, shares at Dec. 31, 2019 | 3,508,631 | 2,177,187 | |||
Net loss | (2,920) | ||||
Ending Balance, value at Sep. 30, 2020 | $ 12,451 | $ 1 | 288 | (14,082) | (13,793) |
Ending Balance, shares at Sep. 30, 2020 | 3,535,469 | 2,218,331 | |||
Beginning balance, value at Mar. 31, 2020 | $ 12,451 | $ 1 | 273 | (12,213) | (11,939) |
Beginning balance, shares at Mar. 31, 2020 | 3,535,469 | 2,218,331 | |||
Stock-based compensation expense | 8 | 8 | |||
Net loss | (773) | (773) | |||
Ending Balance, value at Jun. 30, 2020 | $ 12,451 | $ 1 | 281 | (12,986) | (12,704) |
Ending Balance, shares at Jun. 30, 2020 | 3,535,469 | 2,218,331 | |||
Stock-based compensation expense | 7 | 7 | |||
Net loss | (1,096) | (1,096) | |||
Ending Balance, value at Sep. 30, 2020 | $ 12,451 | $ 1 | 288 | (14,082) | (13,793) |
Ending Balance, shares at Sep. 30, 2020 | 3,535,469 | 2,218,331 | |||
Beginning balance, value at Dec. 31, 2020 | $ 12,451 | $ 1 | 303 | (14,960) | (14,656) |
Beginning balance, shares at Dec. 31, 2020 | 3,535,469 | 2,233,139 | |||
Issuance of common stock upon exercise of stock options | 34 | 34 | |||
Issuance of common stock upon exercise of stock options, shares | 50,058 | ||||
Stock-based compensation expense | 8 | 8 | |||
Net loss | (1,148) | (1,148) | |||
Ending Balance, value at Mar. 31, 2021 | $ 12,451 | $ 1 | 345 | (16,108) | (15,762) |
Ending Balance, shares at Mar. 31, 2021 | 3,535,469 | 2,283,197 | |||
Beginning balance, value at Dec. 31, 2020 | $ 12,451 | $ 1 | 303 | (14,960) | $ (14,656) |
Beginning balance, shares at Dec. 31, 2020 | 3,535,469 | 2,233,139 | |||
Issuance of common stock upon exercise of stock options, shares | 332,932 | ||||
Net loss | $ (3,969) | ||||
Ending Balance, value at Sep. 30, 2021 | $ 1 | 36,481 | (18,929) | 17,553 | |
Ending Balance, shares at Sep. 30, 2021 | 8,908,150 | ||||
Beginning balance, value at Mar. 31, 2021 | $ 12,451 | $ 1 | 345 | (16,108) | (15,762) |
Beginning balance, shares at Mar. 31, 2021 | 3,535,469 | 2,283,197 | |||
Issuance of common stock upon exercise of stock options | 5 | 5 | |||
Issuance of common stock upon exercise of stock options, shares | 8,300 | ||||
Stock-based compensation expense | 7 | 7 | |||
Net loss | (1,310) | (1,310) | |||
Ending Balance, value at Jun. 30, 2021 | $ 12,451 | $ 1 | 357 | (17,418) | (17,060) |
Ending Balance, shares at Jun. 30, 2021 | 3,535,469 | 2,291,497 | |||
Issuance of common stock upon exercise of stock options | 51 | 51 | |||
Issuance of common stock upon exercise of stock options, shares | 274,574 | ||||
Stock-based compensation expense | 6 | 6 | |||
Net loss | (1,511) | (1,511) | |||
Conversion of convertible preferred stock to common stock upon initial public offering | $ (12,451) | 12,451 | 12,451 | ||
Conversion of convertible preferred stock to common stock upon initial public offering, shares | (3,535,469) | 3,535,469 | |||
Conversion of convertible notes and accrued interest to units upon initial public offering | 5,279 | 5,279 | |||
Conversion of convertible notes and accrued interest to units upon initial public offering, shares | 708,820 | ||||
Reclassification of derivative liability upon conversion of convertible notes | 1,101 | 1,101 | |||
Proceeds from initial public offering, net of underwriters’ commissions, discounts and issuance costs of $2,090 | 14,561 | 14,561 | |||
Proceeds from initial public offering, net of underwriters' commissions, discounts and issuance costs of $2,090, shares | 1,850,000 | ||||
Issuance of common stock upon exercise of warrants issued upon initial public offering | 2,675 | 2,675 | |||
Issuance of common stock upon exercise of warrants issued upon initial public offering, shares | 247,700 | ||||
Reverse stock split adjustment | |||||
Reverse stock split adjustment, shares | 90 | ||||
Ending Balance, value at Sep. 30, 2021 | $ 1 | $ 36,481 | $ (18,929) | $ 17,553 | |
Ending Balance, shares at Sep. 30, 2021 | 8,908,150 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities | ||
Net loss | $ (3,969) | $ (2,920) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 21 | 25 |
Amortization on leasehold improvement | 5 | |
Loss on change in fair value of derivative liability | (118) | |
Gain on loan extinguishment from PPP loan | (140) | |
Loss on loan extinguishment from convertible notes | 78 | |
Amortization of debt discount | 697 | 341 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (324) | 26 |
Accounts payable | (29) | (287) |
Accrued expenses | 421 | 257 |
Net cash used in operating activities | (3,358) | (2,558) |
Investing activities | ||
Expenditures for leasehold improvements | (15) | |
Net cash used in investing activities | (15) | |
Financing activities | ||
Net proceeds from issuance of common stock upon initial public offering | 14,561 | |
Proceeds from exercise of warrants | 2,675 | |
Proceeds from convertible notes | 1,977 | 2,570 |
Proceeds from promissory note | 140 | |
Proceeds from exercise of Series A-1 warrant | 25 | |
Proceeds from exercise of common stock options | 90 | 11 |
Net cash provided by financing activities | 19,303 | 2,746 |
Increase in cash and cash equivalents | 15,930 | 188 |
Cash, cash equivalents, beginning of period | 1,795 | 2,124 |
Cash, cash equivalents, end of period | 17,725 | 2,312 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Derivative liability | 738 | 743 |
Conversion of convertible preferred stock upon initial public offering | 12,451 | |
Conversion of convertible notes upon initial public offering | $ 5,279 |
Business and Principal Activiti
Business and Principal Activities | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Principal Activities | 1. Business and Principal Activities Description of Business RenovoRx, Inc. (the “Company”) was incorporated in the state of Delaware in December 2012 and operates from its headquarters in Los Altos, California. The Company is a clinical-stage biopharmaceutical company focused on developing therapies for the local treatment of solid tumors and conducting a phase 3 pancreatic cancer clinical trial for its lead product candidate RenovoGem™. The Company’s therapy platform, RenovoRx Trans-Arterial Micro-Perfusion, or RenovoTAMP™ utilizes approved chemotherapeutics with validated mechanisms of action and well-established safety and side effect profiles, with the goal of increasing their efficacy, improving their safety, and widening their therapeutic window. Initial Public Offering On August 25, 2021, the Company’s Registration Statement on Form S-1 (File No. 333-258071) relating to its initial public offering (“IPO”) of units of securities, or units, was declared effective by the U.S. Securities and Exchange Commission, (or “SEC”), and its shares of common stock began trading on the Nasdaq Capital Market on August 26, 2021. The transaction formally closed on August 30, 2021. In connection with the IPO, the Company issued and sold an aggregate of 1,850,000 units at a price of $ 9.00 per unit. Each unit consisted of (a) one share of common stock and (b) one warrant to purchase one share of common stock at an exercise price equal to $ 10.80 per share, which is exercisable for a period of five years after the issuance date. The Company also granted the underwriters an over-allotment option, exercisable for 45 days after August 25, 2021, to purchase any combination of up to 277,500 shares of its common stock and/or common stock warrants to purchase 277,500 shares of common stock with an exercise price of $ 10.80 per share. The underwriters exercised their over-allotment option to purchase 277,500 common stock warrants on August 30, 2021. In connection with the IPO, the underwriters were issued a five warrant, exercisable on or after February 25, 2022, to purchase up to 198,875 shares of the Company’s common stock at an exercise price of $ 10.80 . The Company received aggregate gross proceeds of $ 16.7 million from the IPO, paid underwriting discounts and commissions of $ 1.3 million and incurred other expenses of $ 0.8 million. As a result, the net offering proceeds to the Company, after deducting underwriting discounts and commissions and other offering expenses, were $ 14.6 million. Immediately prior to the closing of the IPO, all shares of convertible preferred stock then outstanding were converted into 3,535,469 shares of common stock after giving effect to the reverse stock split. In addition, all of the outstanding Convertible Notes, representing principal and accrued but unpaid interest of $ 5.3 million, converted into an aggregate of 708,820 units. Each unit consisted of (a) one share of common stock and (b) one warrant to purchase one share of common stock at an exercise price equal to $ 10.80 per share, which is exercisable for a period of five years after the issuance date. The 2020 Convertible Notes converted at a 20% discount to the IPO price and the 2021 Convertible Notes converted at a 12.5% discount to the IPO price, see Note 5, Convertible Notes Reverse Stock Split The Company filed a certificate of amendment to its Fifth Amended and Restated Certificate of Incorporation to effect a 1-for-5 reverse stock split of its issued and outstanding preferred stock and common stock, which became effective on August 5, 2021. The number of authorized shares and the par values of the common stock and convertible preferred stock were not adjusted as a result of the reverse stock split. Adjustments corresponding to the reverse stock split were made to the ratio at which the Company’s convertible preferred stock converted into the Company’s common stock. Accordingly, all share and per share amounts related to the common stock, stock options, warrants and restricted stock awards for all periods presented in the accompanying financial statements and notes thereto have been retroactively adjusted, where applicable, to reflect the effect of the reverse stock split. Liquidity and Capital Resources The Company raised $ 14.6 million in net proceeds from its IPO in August 2021 and from the Company’s inception through September 30, 2021, it raised an aggregate of $ 35 .0 million in net cash proceeds from the sale and issuance of convertible preferred stock, convertible notes, issuance of common stock in connection with its IPO and the exercise of warrants. The Company had cash and cash equivalents of $ 17.7 million as of September 30, 2021. The Company has incurred significant losses and negative cash flows from operations since its inception. For the nine months ending September 30, 2021, the Company reported a net loss of $ 4.0 million and an accumulated deficit of $ 18.9 million and does not expect to generate positive cash flows from operations in the foreseeable future. The Company expects to incur significant and increasing losses until regulatory approval is granted for its first product candidate, RenovoGem™. Regulatory approval is not guaranteed and may never be obtained. The Company may seek to raise additional capital through debt financings, private or public equity financings, license agreements, collaborative agreements or other arrangements with other companies, or other sources of financing. There can be no assurance that such financing will be available or will be at terms acceptable to the Company. The inability to raise capital as and when needed would have a negative impact on the Company’s financial condition and its ability to pursue its business strategy. The Company will need to generate significant revenue to achieve profitability, and it may never do so. The Company has reviewed the relevant conditions and events surrounding its ability to continue as a going concern including among others: historical losses, projected future results, including the effects of the novel coronavirus (“COVID-19”) pandemic, cash requirements for the upcoming year, funding capacity, net working capital, total stockholders’ deficit and future access to capital. Based upon the Company’s current operating plan, management believes that its existing cash and cash equivalents as of September 30, 2021 will be sufficient to allow the Company to fund operating, investing and financing cash flow needs for at least twelve months from the date of issuance of these interim condensed financial statements. The accompanying condensed interim financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The accompanying condensed interim financial statements do not reflect any adjustments relating to the recoverability and reclassifications of assets and liabilities that might be necessary if the Company is unable to continue as a going concern. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation and Unaudited Condensed Interim Financial Information The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the SEC for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. The condensed interim financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal, recurring adjustments that are necessary to present fairly the Company’s results for the interim periods presented. The condensed balance sheet as of December 31, 2020, is derived from the Company’s audited financial statements. The results of operations for the three and nine months ended September 30, 2021, are not necessarily indicative of the results to be expected for the year ending December 31, 2021, or for any other future annual or interim period. The accompanying unaudited condensed interim financial statements should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2020, which are included in the Company’s prospectus related to the Company’s IPO, filed with the SEC on August 25, 2021, pursuant to Rule 424(b) under the Securities Act of 1933. Use of Estimates The preparation of unaudited condensed interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed interim financial statements and accompanying notes. The Company bases its estimates on historical experience and market-specific or other relevant assumptions that it believes are reasonable under the circumstances. Assets and liabilities reported in the Company’s condensed balance sheets and expenses and income reported are affected by estimates and assumptions, which are used for, but are not limited to, determining the fair value of assets and liabilities, including the accrual of certain liabilities, the valuation of financial instruments, the fair value of the Company’s common stock, income tax uncertainties, and measurement of stock-based compensation expense. Actual results could differ from such estimates or assumptions. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains bank deposits in federally insured financial institutions and these deposits may exceed federally insured limits. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash and cash equivalents to the extent recorded in the condensed balance sheets. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company is subject to a number of risks similar to other early-stage biopharmaceutical companies, including, but not limited to, the need to obtain adequate additional funding, possible failure of current or future preclinical studies or clinical trials, its reliance on third parties to conduct its clinical trials, the need to obtain regulatory and marketing approvals for its product candidates, competitors developing new technological innovations, the need to successfully commercialize and gain market acceptance of the Company’s product candidates, protection of its proprietary technology, and the need to secure and maintain adequate manufacturing arrangements with third parties. The Company relied, and expects to rely, on a small number of third-party manufacturers to manufacture and supply its RenovoCath devices and its product candidates for clinical trials. These activities could be adversely affected by a significant interruption in supply of these items. If the Company does not successfully commercialize or partner any of its product candidates, it will be unable to generate product revenue or achieve profitability. Deferred Offering Costs The Company incurred offering costs consisting of legal, accounting and other fees and costs directly attributable to the Company’s IPO. For the three and nine months ended September 30, 2021, the Company charged $ 774,000 no Operating Segment The Company operates and manages its business as one reportable and operating segment, which is the development of a platform technology to deliver de-risked small molecules for localized treatment of solid cancer tumors. The Company’s chief executive officer, who is the chief operating decision maker, reviews financial information on an aggregate basis for allocating resources and evaluating financial performance. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of 90 days or less from the purchase date to be cash equivalents. Cash and cash equivalents are held in accounts at financial institutions. Cash equivalents consist of amounts held in a money market account. Such deposits have and will continue to exceed federally insured limits in the foreseeable future. Leasehold Improvements, Net Leasehold improvements are presented at cost, net of accumulated amortization. Amortization expense is recorded using the straight-line method over the shorter of the remaining lease term or the estimated useful life. Convertible Instruments and Embedded Derivatives The Company accounts for certain redemption features that are associated with convertible notes as liabilities at fair value and adjusts the instruments to their fair value at the end of each reporting period. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in other income (expense), net in the condensed statements of operations. Derivative instrument liabilities are classified in the condensed balance sheets as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. As of December 31, 2020, the Company’s only derivative financial instrument was related to the 2020 Convertible Notes, which contained certain redemptive features. The Company completed its IPO on August 30, 2021, which triggered the automatic conversion of all outstanding Convertible Notes, plus accrued interest, into units, consisting of (a) one share of common stock and (b) one five-year warrant to purchase one share of common stock at an exercise price equal to $10.80 per share. Upon the conversion of the Convertible Notes, the outstanding Convertible Notes, plus accrued interest thereon totaling $ 5.3 million, net of unamortized debt discounts, were derecognized into stockholders’ equity (Note 5). Clinical Trial Expenses The Company makes payments in connection with its ongoing Phase 3 clinical trial under contracts with clinical trial sites and contract research organizations that support conducting and managing clinical trials. The financial terms of these agreements are subject to negotiation and vary from contract to contract and may result in uneven payment flows. Generally, these agreements set forth the scope of work to be performed at a fixed fee, unit price or on a time and materials basis. A portion of the obligation to make payments under these contracts depends on factors such as the successful enrollment or treatment of patients or the completion of other clinical trial milestones. Expenses related to clinical trials are accrued based on estimates and/or representations from service providers regarding work performed, including actual level of patient enrollment, completion of patient studies and progress of the clinical trials. Other incidental costs related to patient enrollment or treatment are accrued when reasonably certain. If amounts and obligations to pay under clinical trial agreements are modified (for instance, as a result of changes in the clinical trial protocol or scope of work to be performed), the accruals are adjusted accordingly. Revisions to contractual payment obligations are charged to expense in the period in which the facts that give rise to the revision become reasonably certain. In addition, the clinical trial sites involved in our Phase 3 clinical trial of RenovoGem are charged for the RenovoCath delivery devices used in the trial. The payments received from the clinical trial sites for the devices are adequate to cover the direct costs of manufacturing and offset research and development expenses. Research and Development Expenses Research and development expenses are charged to expense as incurred. Research and development expenses includes personnel costs including salaries, benefits and stock-based compensation for employees related to research and development activities. In addition, expenses for consultants that support clinical trial studies, materials costs, external clinical drug product manufacturing costs, outside services costs, regulatory activities including filing fees, fees for maintaining licenses and other amounts due to third-party agreements, laboratory materials, clinical trial, as noted above, and supplies to support our research activities, as well as allocated facility related costs. Fair Value Measurement Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, or an exit price, in the principal or most advantageous market for that asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurement establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. The Company determined the fair value of financial assets and liabilities using the fair value hierarchy that describes three levels of inputs that may be used to measure fair value, as follows: Level 1—Quoted prices in active markets for identical assets and liabilities; Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. As of September 30, 2021, fair value measurements consisted solely of cash equivalents which comprise money market securities. The carrying amounts of these instruments approximate their fair value. The carrying value of all remaining current assets and current liabilities approximate their fair value. Stock-Based Compensation Expense The Company maintains an equity incentive plan as a long-term incentive for selected employees, consultants, and directors. The plan allows for the issuance of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock grants, and restricted stock units. The Company accounts for stock-based compensation expense by measuring and recognizing compensation expense for all share-based payments made to employees and non-employees based on estimated grant-date fair values. The Company uses the straight-line method to allocate compensation cost to reporting periods over each recipient’s requisite service period, which is generally the vesting period over four years. The Company estimates the fair value of stock options granted to employees and non-employees using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of subjective assumptions, including expected volatility, expected dividend yield, expected term and the risk-free rate of return. Prior to the Company’s IPO, given the absence of a public trading market, the Company’s Board of Directors considered numerous objective and subjective factors to determine the fair value of the common stock at each grant date. These factors included, but were not limited to: (i) contemporaneous third-party valuations of common stock; (ii) the prices for preferred stock sold to outside investors; (iii) the rights and preferences of preferred stock relative to common stock; (iv) the lack of marketability of the Company’s common stock; (v) developments in the business; and (vi) the likelihood of achieving a liquidity event, such as an IPO or sale of the business, given prevailing market conditions. The methodology to determine the fair value of our common stock included estimating the fair value of the enterprise using the “backsolve” method, which is a market approach that assigns an implied enterprise value by accounting for all share class rights and preferences based on the latest round of financing. The total equity value implied was then applied in the context of an option pricing model to determine the value of each class of our shares. Future awards will be based on the closing price of the Company’s common stock as reported on the date of grant to determine the fair value of the award. Emerging Growth Company and Smaller Reporting Company Status The Company is an emerging growth company (“EGC”) as defined in the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”) and may take advantage of reduced reporting requirements that are otherwise applicable to public companies. Section 107 of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with those standards. The Company has elected to use the extended transition period for complying with new or revised accounting standards. From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial position or results of operations upon adoption. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In June 2018, the FASB issued Accounting Standards Updates (“ASU”) No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement -In November 2016, the FASB ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Leases (Topic 842) Leases (Topic 842) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses Codification Improvements to Topic 326, Financing Instruments – Credit Losses , In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In August 2020, the FASB issued ASU No. 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 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements As of September 30, 2021 and December 31, 2020, the Company held $ 16.1 1.7 The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as of September 30, 2021 and December 31, 2020 (in thousands): Schedule of Assets Measured at Fair Value on Recurring Basis Fair Value Measurements at September 30, 2021 using: Assets: Level 1 Level 2 Level 3 Total Money market account $ 16,141 $ - $ - $ 16,141 $ 16,141 $ - $ - $ 16,141 Fair Value Measurements at December 31, 2020 (audited) using: Assets: Level 1 Level 2 Level 3 Total Money market account $ 1,703 $ - $ - $ 1,703 $ 1,703 $ - $ - $ 1,703 Liabilities: Derivative liability – 2020 $ - $ - $ 856 $ 856 $ - $ - $ 856 $ 856 The change in the fair value of the derivative liability is summarized below (in thousands): Schedule of Change in Fair Value of Derivative Liability 2021 2020 Derivative Liability at September 30, 2021 December 31, 2020 (audited) Fair value at beginning of the period $ 856 $ - Initial fair value of instruments issued 363 856 Change in fair value of instruments (118 ) - Conversion upon IPO (1,101 ) - Fair value at end of the period $ - $ 856 The derivative liability in the table above relates to the 2020 and 2021 Convertible Notes and represents the fair value of the redemption-like contingent conversion feature. The Company calculated the fair value of the derivative liability using a probability weighted discounted cash flow analysis. The inputs used to determine the estimated fair value of the derivative were based primarily on the probability of an underlying event occurring that would trigger the embedded derivative and the timing of such event. The Company’s derivative liability was measured at fair value on a recurring basis and was classified as a Level 3 liability. The Company recorded subsequent adjustments to reflect the increase or decrease in estimated fair value at each reporting date in other income (expense), net in the condensed statements of operations (see Note 5, Convertible Notes There were no transfers among Level 1, Level 2 or Level 3 categories during any of the periods presented. The Company had no other financial assets or liabilities that were required to be measured at fair value on a recurring basis. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 4. Accrued Expenses Accrued expenses consisted of the following (in thousands): Schedule of Accrued Expenses September 30, December 31, 2021 2020 (audited) Clinical trials $ 377 $ 171 Research and development 14 — Professional services 80 — Interest — 101 Personnel 13 39 Other 8 — Total accrued expenses $ 492 $ 311 Accrued research and development expenses were primarily related to clinical trials and materials. |
Convertible Notes
Convertible Notes | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Convertible Notes | 5. Convertible Notes In March 2020, the Company entered into a note purchase agreement for the issuance of up to $ 4.0 March 31, 2021 3.0 5 The terms of the 2020 Convertible Notes provided for automatic conversion into equity shares in the next equity financing round with total proceeds of not less than $ 10.0 80 On March 1, 2021, the Company entered into an amendment to the 2020 Convertible Notes which extended the maturity date of the 2020 Convertible Notes from March 31, 2021 to October 30, 2021 and provided for the conversion of the 2020 Convertible Notes into shares of the Company’s common stock upon a Qualified Financing that is an IPO. No other terms of the 2020 Convertible Notes were amended. This amendment was accounted for as a troubled debt restructuring pursuant to FASB ASC Topic 470-60, “ Troubled Debt Restructurings by Debtors. The Company determined that the redemption features contained rights and obligations for conversion were contingent upon a potential future financing event or a change in control. Thus, the embedded redemption features were bifurcated from the face value of the notes and accounted for as a derivative liability to be remeasured at the end of each reporting period. The fair value of the derivative liability at September 30, 2021 and December 31, 2020 was $ 0 and $ 856,000 , respectively. Debt issuance costs were $ 22,000 at December 31, 2020. There were no debt issuance costs as of September 30, 2021. The derivative liability was subject to fair value remeasurement at the end of each reporting period. The debt discount and debt issuance costs were being amortized to interest expense using the effective interest method over the expected term of the 2020 Convertible Notes. For the three and nine months ended September 30, 2021, the Company recognized $ 18,000 and $ 379,000 for amortization of the debt discount and debt issuance costs, respectively. For the three and nine months ended September 30, 2020, the Company recognized $ 153,000 and $ 294,000 for the amortization of the debt discount and debt issuance costs, respectively. This amortization expense is recognized as interest expense in the condensed statements of operations. The effective interest rate of the 2020 Convertible Notes was 0 % at September 30, 2021 and 30.8 % at December 31, 2020, compared to the stated rate of 5 % per annum. The effective interest rate immediately prior to the conversion of the Convertible Notes resulting from the Company’s IPO was 8.6 % per annum. As a result, the Company’s reported interest expense was significantly higher than the contractual cash interest payments. During the three and nine months ended September 30, 2021, the Company recognized interest expense in the condensed statements of operations of $ 25,000 and $ 101,000 , respectively, related to the 2020 Convertible Notes. During the three and nine months ended September 30, 2020, the Company recognized interest expense in the condensed statements of operations of $ 33,000 and $ 63,000 , respectively, related to the 2020 Convertible Notes. In April 2021, the Company entered into a note purchase agreement and a series of convertible note payable agreements (the “2021 Convertible Notes,” together with the 2020 Convertible Notes, the “2020 and 2021 Convertible Notes”) for aggregate borrowings of $ 2.0 million. Outstanding borrowings under the 2021 Convertible Notes and accrued interest were due in April 2022, if not previously converted. The 2021 Notes bore interest at the rate of 5 % per annum. Pursuant to the 2021 Convertible Notes, the outstanding principal and accrued interest are automatically convertible into equity shares in a Qualified Financing at a conversion price per share equal to 87.5 % of the price per share paid by investors purchasing such equity securities in a Qualified Financing. The Company determined that these redemption features in the 2021 Convertible Notes contained rights and obligations for conversion that were contingent upon a potential future financing event or a change in control. Thus, the embedded redemption features were bifurcated from the face value of the note and accounted for as a derivative liability to be remeasured at the end of each reporting period. Upon issuance of the notes, the Company recorded the fair value of the derivative liability of $ 363,000 and debt issuance costs of $ 23,000 , with the offsetting amount being recorded as a debt discount. The discount and debt issuance costs were amortized to interest expense using the effective interest method over the expected term of the 2021 Convertible Notes. For the three and nine months ended September 30, 2021, the Company recognized $ 141,000 and $ 318,000 , respectively, for the amortization of the debt discount and debt issuance costs as interest expense in the condensed statements of operations. The effective interest rate immediately prior to the conversion of the 2021 Convertible Notes resulting from the Company’s IPO was 46.5 % per annum compared to the stated rate of 5 % per annum. During the three and nine months ended September 30, 2021, the Company recognized interest expense in the condensed statements of operations of $ 17,000 and $ 38,000 , respectively, relating to the 2021 Convertible Notes. The Company completed an IPO on August 30, 2021, which triggered the automatic conversion of the outstanding Convertible Notes plus accrued interest into an aggregate of 708,820 units. Each unit consisted of (a) one share of common stock and (b) one five warrant to purchase one share of common stock at an exercise price equal to $ 10.80 per share (Note 7). Upon conversion of the 2020 and 2021 Convertible Notes, the outstanding principal, including debt discount and debt issuance costs for those Convertible Notes of $ 5.3 million, was derecognized into stockholders’ equity. The unamortized debt discount totaling $ 78,000 was recognized as a loss on extinguishment of debt and is included in loss (gain) on loan extinguishment in the Company’s condensed statements of operations. |
Promissory Note
Promissory Note | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Promissory Note | 6. Promissory Note On April 22, 2020, the Company entered into a promissory note with Silicon Valley Bank that provided for the receipt by the Company of loan proceeds of $ 140,000 (the “PPP Loan”), with an interest rate of 1.0 % per annum, pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). Under certain conditions, the loan and accrued interest were forgivable, including if the loan proceeds were used for eligible purposes, including payroll, benefits, rent and utilities, and maintaining payroll levels. In October 2020, t he Paycheck Protection Program Flexibility Act of 2020 extended the deferral period for borrower payments of principal, interest, and fees on all PPP loans from 6 months to 10 months. April 22, 2022 . The PPP Loan contains events of default and other provisions customary for a loan of this type. The Company recorded the PPP Loan as a promissory note in the December 31, 2020 balance sheet as both a current and non-current liability. On February 6, 2021, the Company received notification and confirmation from Silicon Valley Bank that its PPP loan and related accrued interest were forgiven in their entirety by the U.S. Small Business Administration and automatically cancelled. During the nine-months ended September 30, 2021, the $ 140,000 was recorded to loss (gain) on loan extinguishment in the condensed statements of operations. |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Capital Stock | 7. Capital Stock Common Stock On August 25, 2021, the Company’s Registration Statement on Amendment No. 4 to the Form S-1 relating to its IPO was declared effective by the SEC. In connection with the IPO, the Company issued and sold an aggregate of 1,850,000 units at a price of $ 9.00 per unit. Each unit consisted of (a) one share of common stock and (b) one warrant to purchase one share of common stock at an exercise price equal to $ 10.80 per share, which is exercisable for a period of five years after the issuance date. The Company received net proceeds of $ 14.6 million from the IPO, after deducting underwriting discounts and commissions of $ 1.3 million and other costs incurred with the offering of $ 0.8 million. Upon the closing of the IPO, all of the 3,535,469 outstanding shares of the Company’s convertible preferred stock automatically converted into 3,535,469 shares of common stock and the outstanding 2020 and 2021 Convertible Notes, including accrued but unpaid interest, representing $ 5.3 million, converted to 708,820 units, which consisted of (a) one share of common stock and (b) one five warrant to purchase one share of common stock at an exercise price equal to $ 10.80 per share. Upon completion of the offering on August 30, 2021, the Company was authorized to issue 250,000,000 shares of common stock, par value of $ 0.0001 per share and 15,000,000 shares of preferred stock, par value of $ 0.0001 per share. Convertible Preferred Stock Issued and outstanding convertible preferred stock and its principal terms as of December 31, 2020 (audited) were as follows (in thousands, except share and per share amounts): Schedule of Issued and outstanding convertible preferred stock Preferred Series Shares Authorized Shares Aggregate Liquidation Value Net Series A-1 3,542,669 708,533 $ 660 $ 639 Series A-2 3,546,095 709,219 1,150 1,099 Series A-3 2,660,230 532,046 2,227 2,166 Series B 12,611,461 1,585,671 8,745 8,547 Total 22,360,455 3,535,469 $ 12,782 $ 12,451 The Company classified its convertible preferred stock as mezzanine equity on the condensed balance sheets as the shares were contingently redeemable upon deemed liquidation events, such as a change of control. In August 2021, immediately prior to the completion of the IPO and after giving effect to the 1-5 reverse stock split 3,535,469 15,000,000 no |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Contingencies From time to time, the Company may become involved in legal proceedings arising in the ordinary course of business. The Company was not subject to any material legal proceedings during the nine months ended September 30, 2021 and no material legal proceedings are currently pending or threatened. Indemnification In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. As permitted under Delaware law and in accordance with its bylaws, the Company indemnifies its officers and directors for certain events or occurrences while the officer or director is or was serving in such capacity. The Company is also party to indemnification agreements with its officers and directors. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments that the Company could be required to make under these provisions is not determinable. The Company has never incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. The Company is not currently aware of any indemnification claims. Accordingly, the Company has not recorded any liabilities for these indemnification rights and agreements as of September 30, 2021 and December 31, 2020. Operating Leases The Company leases its headquarters in Los Altos, California under a one 18,000 11,000 42,000 33,000 Coronavirus Pandemic In December 2019, a novel strain of coronavirus, which causes the disease known as COVID-19, was reported to have surfaced in Wuhan, China. Since then, COVID-19 has spread globally. In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic. The ongoing COVID-19 global and national health emergency has caused significant disruption in the international and U.S. economies and financial markets. The spread of COVID-19 has caused illness, quarantines, cancellation of events and travel, business and school shutdowns, reduction in business activity and financial transactions, labor shortages, supply chain interruptions and overall economic and financial market instability. In response to public health directives and orders and to help minimize the risk of the virus to employees, the Company has taken precautionary measures, including implementing work-from home and/or hybrid work policies for employees. The COVID-19 global pandemic has also negatively affected, and the Company expects it will continue to negatively affect, our clinical studies. For example, we have faced challenges in conducting our Phase 3 clinical trial, including recruiting subjects and accommodating patient visits. Additionally, the Company’s service providers and their operations may be disrupted, temporarily closed or experience worker or supply shortages, which could result in additional disruptions or delays in shipments of purchased materials or the continued development of our product candidates. To date, the Company has not suffered material supply chain disruptions. The Company is not able to estimate the duration of the pandemic and the potential impact on its business. As the global pandemic of COVID-19 continues to evolve, it could result in significant long-term disruption of global financial markets, reducing the Company’s ability to raise additional capital when needed and on acceptable terms, if at all, which could negatively affect liquidity. The extent to which the COVID-19 pandemic impacts the Company’s clinical development and regulatory efforts will depend on future developments that are highly uncertain and cannot be predicted with confidence, such as the ultimate geographic spread of the disease, the duration of the outbreak, travel restrictions, quarantines and social distancing requirements in the United States and other countries, business closures or business disruptions and the effectiveness of actions taken in the United States and other countries to contain and treat the virus. The Company continues to monitor the COVID-19 situation closely. |
Equity Incentive Plan-Stock-Bas
Equity Incentive Plan-Stock-Based Compensation Expense and Common Stock Warrants | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plan-Stock-Based Compensation Expense and Common Stock Warrants | 9. Equity Incentive Plan-Stock-Based Compensation Expense and Common Stock Warrants 2021 Omnibus Equity Incentive Plan On July 19, 2021, the Company’s Board of Directors adopted the RenovoRx, Inc. 2021 Omnibus Equity Incentive Plan (the “2021 Plan”). The 2021 Plan, which became effective immediately prior to the closing of the IPO, provides for the grant of incentive stock options (“ISO”), non-statutory stock options (“NSO”), restricted stock, restricted stock units, stock appreciation rights, and other stock-based awards to selected employees, directors, and consultants. The Company initially reserved 2,175,000 20,401 The 2021 Plan provides an annual increase on January 1, beginning on January 1, 2022, during the initial ten-year term of the 2021 Plan, equal to the lesser of (A) three percent (3%) of the shares outstanding (on an as-converted basis) on the final day of the immediately preceding calendar year and (B) such lesser number of shares as determined by the Board; provided that shares of common stock issued under the 2021 Plan with respect to an Exempt Award will not count against the share limit. four Options under the 2021 Plan may be granted for periods of up to 10 years and at exercise prices no less than 100% of the estimated fair value of the underlying shares of common stock on the date of grant as determined by the Board of Directors provided that the exercise price of an ISO and NSO granted to a 10% stockholder shall not be less than 110% of the estimated fair value of the shares on the date of grant. The 2021 Plan requires that options be exercised no later than 10 years after the grant. Options granted to employees generally vest ratably on a monthly basis over four years, subject to cliff vesting restrictions. The following is a summary of the stock option award activity during the nine months ended September 30, 2021: Summary of Stock Option Award Activity Number of Stock Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value (in years) (in thousands) Outstanding as of December 31, 2020 997,266 $ 0.42 5.84 $ 276 Granted 238,269 $ 4.94 - - Exercised (332,932 ) $ 0.27 - - Forfeited (23,625 ) $ 0.67 - - Expired (83 ) $ 0.70 - - Outstanding as of September 30, 2021 878,895 $ 0.48 6.58 $ 3,817 Exercisable as of September 30, 2021 603,086 $ 0.53 5.28 $ 3,323 Vested and expected to vest as of September 30, 2021 878,895 $ 1.70 6.58 $ 3,817 As of September 30, 2021, there was $ 364,000 of unrecognized stock-based compensation expense related to options granted but not yet amortized, which will be recognized over a weighted-average period of 2.36 years. For the nine months ended September 30, 2021, the Company utilized the Black-Scholes option-pricing model for estimating the fair value of the stock option granted. The following table presents the assumptions and the Company’s methodology for developing each of the assumptions used: Schedule of Estimate Fair Value of Stock Options Nine Months Ended September 30, 2021 Volatility 41.66 42.13 % Expected life (years) 5.00 10.0 Risk-free interest rate 0.62 1.00 % Dividend rate – % ● Volatility—The Company estimates the expected volatility of its common stock at the date of grant based on the historical volatility of comparable public companies over the expected term. ● Expected life—The expected life is estimated as the contractual term. ● Risk-free interest rate—The risk-free rate for periods within the estimated life of the stock award is based on the U.S. Treasury yield curve in effect at the time of grant. ● Dividend rate—The assumed dividend yield is based upon the Company’s expectation of not paying dividends in the foreseeable future. The following table summarizes the components of stock-based compensation expense recognized in the Company’s condensed statements of operations during the three and nine months ended September 30, 2021 and 2020 (in thousands): Schedule of Stock Based Compensation Expense Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Research and development $ 2 $ 5 $ 5 $ 19 General and administrative 4 2 16 6 Total stock-based compensation expense $ 6 $ 7 $ 21 $ 25 Common Stock Warrants In connection with the IPO, the Company issued warrants to purchase 3,035,195 198,875 August 25, 2026 2,836,320 August 31, 2026 Initial Public Offering The following is a summary of the common stock warrant activity during the nine months ended September 30, 2021: Schedule of Warrant Activity Shares Issuable Upon Exercise of Outstanding Warrants Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value (in years) (in thousands) Outstanding as of December 31, 2020 - $ - - $ - Issued 3,035,195 $ 9.81 - - Exercised (525,200 ) $ 5.10 - - Expired - $ - - - Outstanding as of September 30, 2021 2,509,995 $ 10.80 4.92 $ 27,108 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The Company had no income tax expense for the three and nine months ended September 30, 2021 and 2020. During the nine months ended September 30, 2021 and 2020, the Company had a net operating loss (“NOL”) for each period that generated deferred tax assets for NOL carryforwards. Deferred income tax assets and liabilities are recognized for temporary differences between the financial statements and income tax carrying values using tax rates in effect for the years such differences are expected to reverse. Due to uncertainties surrounding our ability to generate future taxable income and consequently realize such deferred income tax assets, the Company has determined that it is more-likely-than-not that these deferred tax assets will not be realized. Accordingly, the Company has established a full valuation allowance against its deferred tax assets as of September 30, 2021. The Company’s policy is to recognize any interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of September 30, 2021 and December 31, 2020, the Company had no |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 11. Net Loss Per Share The following table sets forth the computation of the basic and diluted net loss per share (in thousands, except share and per share data): Schedule of Computation of Basic and Diluted Net Loss Per Share 2021 2020 2021 2020 Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Numerator: Net loss $ (1,511 ) $ (1,096 ) $ (3,969 ) $ (2,920 ) Denominator: Weighted-average shares of common stock outstanding used in the calculation of basic and diluted net loss per share 5,620,135 2,263,589 3,640,988 2,233,645 Net loss per share, basic and diluted $ (0.27 ) $ (0.48 ) $ (1.09 ) $ (1.31 ) Since the Company had a net loss for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods as the inclusion of all common stock equivalents outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: Schedule of Potentially Anti Dilutive Securities As of September 30, 2021 2020 Options to purchase common stock 878,895 1,012,075 Convertible preferred stock — 3,535,469 Total 878,895 4,547,544 |
Related Party Transaction
Related Party Transaction | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | 12. Related Party Transaction In January 2018, the Company entered into a consulting agreement with one of the Company’s co-founders, Dr. Ramtin Agah, pursuant to which Dr. Agah provides consulting services as the Company’s Chief Medical Officer by overseeing Company-sponsored clinical trials. The Agreement, which was amended on September 1, 2019, and November 11, 2021, continues in force for as long as Dr. Agah is providing consulting services and may be terminated by either party on thirty (30) days’ notice. Dr. Agah was awarded (i) options to purchase 60,000 shares of the Company’s common stock in May 2017, which have vested, (ii) options to purchase 40,000 shares of the Company’s common stock in July 2018, of which 25 % vested after one year and the remainder vests ratably over the 36 month period ending July 2022, (iii) options to purchase 20,000 shares of the Company’s common stock in June 2021, which vest ratably over 24 months from the vesting commencement date of May 14, 2023, and (iv) options to purchase of 52,203 shares of the Company’s common stock in September 2021, which vest ratably over 48 months from the vesting commencement date of August 26, 2021. In December 2018, Dr. Agah’s agreement was amended to provide that he would receive cash compensation of $ 4,000 per month for certain proctoring services, and in September 2019, his compensation was increased to $ 10,000 per month to compensate for additional services he was providing. Effective upon the completion of the IPO, Dr. Agah’s compensation was increased to $ 260,000 annually, based on Dr. Agah spending no less than 24 hours per week on Company matters. Consulting fees paid to Dr. Agah for the three months ending September 30, 2021 and 2020, were $ 42,000 30,000 102,000 90,000 In July 2019, the Company entered into a consulting agreement with the Company’s then Chief Financial Officer , Paul Manners. In February 2020, the Company granted Mr. Manners an option to purchase 28,000 shares of the Company’s common stock, of which 25 % were vested at the grant date and the remainder vested ratably over the following 18 months. The CFO Agreement was amended in December 2020 to increase Mr. Manners hourly rate to $ 150 Consulting fees paid to Mr. Manners for the three months ending September 30, 2021 and 2020, were $ 56,000 12,000 155,000 32,000 Kamran Najmabadi, another co-founder of the Company, has served as our consulting technical engineering advisor on manufacturing and intellectual property matters since January 2020. Mr. Najmabadi served as the Company’s Chief Executive Officer from its inception in December 2009 until January 2013; Chief Technical and Operations Officer from January 2013 until January 2019; and Chief Technology Officer from January 2019 to January 2020. He currently receives cash compensation of $ 3,000 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events The Company has evaluated all events occurring through November 15, 2021, the date on which the unaudited condensed interim financial statements were issued. Since September 30, 2021, the following material subsequent events occurred: In October 2021, 66,923 non-qualified stock options were granted to members of the Board of Directors. In October 2021, the Company filed its Form S-8, Registration Statement Under the Securities Act of 1933 with the SEC. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Unaudited Condensed Interim Financial Information | Basis of Presentation and Unaudited Condensed Interim Financial Information The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the SEC for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. The condensed interim financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal, recurring adjustments that are necessary to present fairly the Company’s results for the interim periods presented. The condensed balance sheet as of December 31, 2020, is derived from the Company’s audited financial statements. The results of operations for the three and nine months ended September 30, 2021, are not necessarily indicative of the results to be expected for the year ending December 31, 2021, or for any other future annual or interim period. The accompanying unaudited condensed interim financial statements should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2020, which are included in the Company’s prospectus related to the Company’s IPO, filed with the SEC on August 25, 2021, pursuant to Rule 424(b) under the Securities Act of 1933. |
Use of Estimates | Use of Estimates The preparation of unaudited condensed interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed interim financial statements and accompanying notes. The Company bases its estimates on historical experience and market-specific or other relevant assumptions that it believes are reasonable under the circumstances. Assets and liabilities reported in the Company’s condensed balance sheets and expenses and income reported are affected by estimates and assumptions, which are used for, but are not limited to, determining the fair value of assets and liabilities, including the accrual of certain liabilities, the valuation of financial instruments, the fair value of the Company’s common stock, income tax uncertainties, and measurement of stock-based compensation expense. Actual results could differ from such estimates or assumptions. |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains bank deposits in federally insured financial institutions and these deposits may exceed federally insured limits. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash and cash equivalents to the extent recorded in the condensed balance sheets. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company is subject to a number of risks similar to other early-stage biopharmaceutical companies, including, but not limited to, the need to obtain adequate additional funding, possible failure of current or future preclinical studies or clinical trials, its reliance on third parties to conduct its clinical trials, the need to obtain regulatory and marketing approvals for its product candidates, competitors developing new technological innovations, the need to successfully commercialize and gain market acceptance of the Company’s product candidates, protection of its proprietary technology, and the need to secure and maintain adequate manufacturing arrangements with third parties. The Company relied, and expects to rely, on a small number of third-party manufacturers to manufacture and supply its RenovoCath devices and its product candidates for clinical trials. These activities could be adversely affected by a significant interruption in supply of these items. If the Company does not successfully commercialize or partner any of its product candidates, it will be unable to generate product revenue or achieve profitability. |
Deferred Offering Costs | Deferred Offering Costs The Company incurred offering costs consisting of legal, accounting and other fees and costs directly attributable to the Company’s IPO. For the three and nine months ended September 30, 2021, the Company charged $ 774,000 no |
Operating Segment | Operating Segment The Company operates and manages its business as one reportable and operating segment, which is the development of a platform technology to deliver de-risked small molecules for localized treatment of solid cancer tumors. The Company’s chief executive officer, who is the chief operating decision maker, reviews financial information on an aggregate basis for allocating resources and evaluating financial performance. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of 90 days or less from the purchase date to be cash equivalents. Cash and cash equivalents are held in accounts at financial institutions. Cash equivalents consist of amounts held in a money market account. Such deposits have and will continue to exceed federally insured limits in the foreseeable future. |
Leasehold Improvements, Net | Leasehold Improvements, Net Leasehold improvements are presented at cost, net of accumulated amortization. Amortization expense is recorded using the straight-line method over the shorter of the remaining lease term or the estimated useful life. |
Convertible Instruments and Embedded Derivatives | Convertible Instruments and Embedded Derivatives The Company accounts for certain redemption features that are associated with convertible notes as liabilities at fair value and adjusts the instruments to their fair value at the end of each reporting period. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in other income (expense), net in the condensed statements of operations. Derivative instrument liabilities are classified in the condensed balance sheets as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. As of December 31, 2020, the Company’s only derivative financial instrument was related to the 2020 Convertible Notes, which contained certain redemptive features. The Company completed its IPO on August 30, 2021, which triggered the automatic conversion of all outstanding Convertible Notes, plus accrued interest, into units, consisting of (a) one share of common stock and (b) one five-year warrant to purchase one share of common stock at an exercise price equal to $10.80 per share. Upon the conversion of the Convertible Notes, the outstanding Convertible Notes, plus accrued interest thereon totaling $ 5.3 million, net of unamortized debt discounts, were derecognized into stockholders’ equity (Note 5). |
Clinical Trial Expenses | Clinical Trial Expenses The Company makes payments in connection with its ongoing Phase 3 clinical trial under contracts with clinical trial sites and contract research organizations that support conducting and managing clinical trials. The financial terms of these agreements are subject to negotiation and vary from contract to contract and may result in uneven payment flows. Generally, these agreements set forth the scope of work to be performed at a fixed fee, unit price or on a time and materials basis. A portion of the obligation to make payments under these contracts depends on factors such as the successful enrollment or treatment of patients or the completion of other clinical trial milestones. Expenses related to clinical trials are accrued based on estimates and/or representations from service providers regarding work performed, including actual level of patient enrollment, completion of patient studies and progress of the clinical trials. Other incidental costs related to patient enrollment or treatment are accrued when reasonably certain. If amounts and obligations to pay under clinical trial agreements are modified (for instance, as a result of changes in the clinical trial protocol or scope of work to be performed), the accruals are adjusted accordingly. Revisions to contractual payment obligations are charged to expense in the period in which the facts that give rise to the revision become reasonably certain. In addition, the clinical trial sites involved in our Phase 3 clinical trial of RenovoGem are charged for the RenovoCath delivery devices used in the trial. The payments received from the clinical trial sites for the devices are adequate to cover the direct costs of manufacturing and offset research and development expenses. |
Research and Development Expenses | Research and Development Expenses Research and development expenses are charged to expense as incurred. Research and development expenses includes personnel costs including salaries, benefits and stock-based compensation for employees related to research and development activities. In addition, expenses for consultants that support clinical trial studies, materials costs, external clinical drug product manufacturing costs, outside services costs, regulatory activities including filing fees, fees for maintaining licenses and other amounts due to third-party agreements, laboratory materials, clinical trial, as noted above, and supplies to support our research activities, as well as allocated facility related costs. |
Fair Value Measurement | Fair Value Measurement Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, or an exit price, in the principal or most advantageous market for that asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurement establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. The Company determined the fair value of financial assets and liabilities using the fair value hierarchy that describes three levels of inputs that may be used to measure fair value, as follows: Level 1—Quoted prices in active markets for identical assets and liabilities; Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. As of September 30, 2021, fair value measurements consisted solely of cash equivalents which comprise money market securities. The carrying amounts of these instruments approximate their fair value. The carrying value of all remaining current assets and current liabilities approximate their fair value. |
Stock-Based Compensation Expense | Stock-Based Compensation Expense The Company maintains an equity incentive plan as a long-term incentive for selected employees, consultants, and directors. The plan allows for the issuance of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock grants, and restricted stock units. The Company accounts for stock-based compensation expense by measuring and recognizing compensation expense for all share-based payments made to employees and non-employees based on estimated grant-date fair values. The Company uses the straight-line method to allocate compensation cost to reporting periods over each recipient’s requisite service period, which is generally the vesting period over four years. The Company estimates the fair value of stock options granted to employees and non-employees using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of subjective assumptions, including expected volatility, expected dividend yield, expected term and the risk-free rate of return. Prior to the Company’s IPO, given the absence of a public trading market, the Company’s Board of Directors considered numerous objective and subjective factors to determine the fair value of the common stock at each grant date. These factors included, but were not limited to: (i) contemporaneous third-party valuations of common stock; (ii) the prices for preferred stock sold to outside investors; (iii) the rights and preferences of preferred stock relative to common stock; (iv) the lack of marketability of the Company’s common stock; (v) developments in the business; and (vi) the likelihood of achieving a liquidity event, such as an IPO or sale of the business, given prevailing market conditions. The methodology to determine the fair value of our common stock included estimating the fair value of the enterprise using the “backsolve” method, which is a market approach that assigns an implied enterprise value by accounting for all share class rights and preferences based on the latest round of financing. The total equity value implied was then applied in the context of an option pricing model to determine the value of each class of our shares. Future awards will be based on the closing price of the Company’s common stock as reported on the date of grant to determine the fair value of the award. |
Emerging Growth Company and Smaller Reporting Company Status | Emerging Growth Company and Smaller Reporting Company Status The Company is an emerging growth company (“EGC”) as defined in the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”) and may take advantage of reduced reporting requirements that are otherwise applicable to public companies. Section 107 of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with those standards. The Company has elected to use the extended transition period for complying with new or revised accounting standards. From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial position or results of operations upon adoption. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In June 2018, the FASB issued Accounting Standards Updates (“ASU”) No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement -In November 2016, the FASB ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Leases (Topic 842) Leases (Topic 842) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses Codification Improvements to Topic 326, Financing Instruments – Credit Losses , In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In August 2020, the FASB issued ASU No. 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 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on Recurring Basis | The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as of September 30, 2021 and December 31, 2020 (in thousands): Schedule of Assets Measured at Fair Value on Recurring Basis Fair Value Measurements at September 30, 2021 using: Assets: Level 1 Level 2 Level 3 Total Money market account $ 16,141 $ - $ - $ 16,141 $ 16,141 $ - $ - $ 16,141 Fair Value Measurements at December 31, 2020 (audited) using: Assets: Level 1 Level 2 Level 3 Total Money market account $ 1,703 $ - $ - $ 1,703 $ 1,703 $ - $ - $ 1,703 Liabilities: Derivative liability – 2020 $ - $ - $ 856 $ 856 $ - $ - $ 856 $ 856 |
Schedule of Change in Fair Value of Derivative Liability | The change in the fair value of the derivative liability is summarized below (in thousands): Schedule of Change in Fair Value of Derivative Liability 2021 2020 Derivative Liability at September 30, 2021 December 31, 2020 (audited) Fair value at beginning of the period $ 856 $ - Initial fair value of instruments issued 363 856 Change in fair value of instruments (118 ) - Conversion upon IPO (1,101 ) - Fair value at end of the period $ - $ 856 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands): Schedule of Accrued Expenses September 30, December 31, 2021 2020 (audited) Clinical trials $ 377 $ 171 Research and development 14 — Professional services 80 — Interest — 101 Personnel 13 39 Other 8 — Total accrued expenses $ 492 $ 311 |
Capital Stock (Tables)
Capital Stock (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Issued and outstanding convertible preferred stock | Issued and outstanding convertible preferred stock and its principal terms as of December 31, 2020 (audited) were as follows (in thousands, except share and per share amounts): Schedule of Issued and outstanding convertible preferred stock Preferred Series Shares Authorized Shares Aggregate Liquidation Value Net Series A-1 3,542,669 708,533 $ 660 $ 639 Series A-2 3,546,095 709,219 1,150 1,099 Series A-3 2,660,230 532,046 2,227 2,166 Series B 12,611,461 1,585,671 8,745 8,547 Total 22,360,455 3,535,469 $ 12,782 $ 12,451 |
Equity Incentive Plan-Stock-B_2
Equity Incentive Plan-Stock-Based Compensation Expense and Common Stock Warrants (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Award Activity | The following is a summary of the stock option award activity during the nine months ended September 30, 2021: Summary of Stock Option Award Activity Number of Stock Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value (in years) (in thousands) Outstanding as of December 31, 2020 997,266 $ 0.42 5.84 $ 276 Granted 238,269 $ 4.94 - - Exercised (332,932 ) $ 0.27 - - Forfeited (23,625 ) $ 0.67 - - Expired (83 ) $ 0.70 - - Outstanding as of September 30, 2021 878,895 $ 0.48 6.58 $ 3,817 Exercisable as of September 30, 2021 603,086 $ 0.53 5.28 $ 3,323 Vested and expected to vest as of September 30, 2021 878,895 $ 1.70 6.58 $ 3,817 |
Schedule of Estimate Fair Value of Stock Options | For the nine months ended September 30, 2021, the Company utilized the Black-Scholes option-pricing model for estimating the fair value of the stock option granted. The following table presents the assumptions and the Company’s methodology for developing each of the assumptions used: Schedule of Estimate Fair Value of Stock Options Nine Months Ended September 30, 2021 Volatility 41.66 42.13 % Expected life (years) 5.00 10.0 Risk-free interest rate 0.62 1.00 % Dividend rate – % |
Schedule of Stock Based Compensation Expense | The following table summarizes the components of stock-based compensation expense recognized in the Company’s condensed statements of operations during the three and nine months ended September 30, 2021 and 2020 (in thousands): Schedule of Stock Based Compensation Expense Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Research and development $ 2 $ 5 $ 5 $ 19 General and administrative 4 2 16 6 Total stock-based compensation expense $ 6 $ 7 $ 21 $ 25 |
Schedule of Warrant Activity | The following is a summary of the common stock warrant activity during the nine months ended September 30, 2021: Schedule of Warrant Activity Shares Issuable Upon Exercise of Outstanding Warrants Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value (in years) (in thousands) Outstanding as of December 31, 2020 - $ - - $ - Issued 3,035,195 $ 9.81 - - Exercised (525,200 ) $ 5.10 - - Expired - $ - - - Outstanding as of September 30, 2021 2,509,995 $ 10.80 4.92 $ 27,108 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of the basic and diluted net loss per share (in thousands, except share and per share data): Schedule of Computation of Basic and Diluted Net Loss Per Share 2021 2020 2021 2020 Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Numerator: Net loss $ (1,511 ) $ (1,096 ) $ (3,969 ) $ (2,920 ) Denominator: Weighted-average shares of common stock outstanding used in the calculation of basic and diluted net loss per share 5,620,135 2,263,589 3,640,988 2,233,645 Net loss per share, basic and diluted $ (0.27 ) $ (0.48 ) $ (1.09 ) $ (1.31 ) |
Schedule of Potentially Anti Dilutive Securities | Schedule of Potentially Anti Dilutive Securities As of September 30, 2021 2020 Options to purchase common stock 878,895 1,012,075 Convertible preferred stock — 3,535,469 Total 878,895 4,547,544 |
Business and Principal Activi_2
Business and Principal Activities (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Aug. 25, 2021 | Aug. 05, 2021 | Aug. 31, 2021 | Aug. 30, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 10.80 | $ 10.80 | |||||||||||
Warrants and Rights Outstanding, Term | 4 years 11 months 1 day | 4 years 11 months 1 day | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 332,932 | ||||||||||||
Stockholders' Equity, Reverse Stock Split | 1-for-5 reverse stock split | 1-5 reverse stock split | |||||||||||
Cash and Cash Equivalents, at Carrying Value | $ 17,725 | $ 17,725 | $ 1,795 | ||||||||||
Net Income (Loss) Attributable to Parent | 1,511 | $ 1,310 | $ 1,148 | $ 1,096 | $ 773 | $ 1,051 | 3,969 | $ 2,920 | |||||
Retained Earnings (Accumulated Deficit) | $ 18,929 | $ 18,929 | $ 14,960 | ||||||||||
IPO [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Sale of Stock, Number of Shares Issued in Transaction | 1,850,000 | ||||||||||||
Sale of Stock, Price Per Share | $ 9 | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 10.80 | $ 10.80 | |||||||||||
Warrants and Rights Outstanding, Term | 5 years | ||||||||||||
Proceeds from Issuance Initial Public Offering | $ 16,700 | $ 14,600 | |||||||||||
Underwriting discounts and commissions | 1,300 | ||||||||||||
Other Expenses | 800 | ||||||||||||
Net proceeds from initial public offering | $ 14,600 | ||||||||||||
Conversion of Stock, Shares Issued | 3,535,469 | ||||||||||||
Debt Conversion, Converted Instrument, Amount | $ 5,300 | ||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 708,820 | ||||||||||||
Debt Instrument, Description | The 2020 Convertible Notes converted at a 20% discount to the IPO price and the 2021 Convertible Notes converted at a 12.5% discount to the IPO price, see Note 5, Convertible Notes. | ||||||||||||
Proceeds from Issuance or Sale of Equity | $ 35,000 | ||||||||||||
IPO [Member] | Underwriter [Member] | Over Allotment Options [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 277,500 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 277,500 | ||||||||||||
IPO [Member] | Underwriter [Member] | Common Stock Warrants [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 10.80 | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 277,500 | ||||||||||||
IPO [Member] | Underwriter [Member] | Warrant [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 10.80 | ||||||||||||
Warrants and Rights Outstanding, Term | 5 years | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 198,875 | ||||||||||||
IPO [Member] | Warrant [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 10.80 | ||||||||||||
Warrants and Rights Outstanding, Term | 5 years |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Aug. 25, 2021 | Aug. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Subsidiary, Sale of Stock [Line Items] | |||||
Payments for deferred offering costs | $ 774,000 | $ 774,000 | |||
Deferred offering costs | $ 0 | $ 0 | $ 0 | ||
[custom:InitialPublicOfferingDescription] | one share of common stock and (b) one five-year warrant to purchase one share of common stock at an exercise price equal to $10.80 per share. | ||||
IPO [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Debt Conversion, Converted Instrument, Amount | $ 5,300,000 |
Schedule of Assets Measured at
Schedule of Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | $ 16,141 | $ 1,703 |
Derivative liabilities | 856 | |
2020 Convertible Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 856 | |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 16,141 | 1,703 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 16,141 | 1,703 |
Derivative liabilities | ||
Fair Value, Inputs, Level 1 [Member] | 2020 Convertible Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | ||
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 16,141 | 1,703 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | ||
Derivative liabilities | ||
Fair Value, Inputs, Level 2 [Member] | 2020 Convertible Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | ||
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | ||
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | ||
Derivative liabilities | 856 | |
Fair Value, Inputs, Level 3 [Member] | 2020 Convertible Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 856 | |
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets |
Schedule of Change in Fair Valu
Schedule of Change in Fair Value of Derivative Liability (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Fair value at beginning of the period | $ 856 | |
Initial fair value of instruments issued | 363 | 856 |
Change in fair value of instruments | (118) | |
Conversion upon IPO | (1,101) | |
Fair value at end of the period | $ 856 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Narrative) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Money market account | $ 16.1 | $ 1.7 |
Schedule of Accrued Expenses (D
Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Clinical trials | $ 377 | $ 171 |
Research and development | 14 | |
Professional services | 80 | |
Interest | 101 | |
Personnel | 13 | 39 |
Other | 8 | |
Total accrued expenses | $ 492 | $ 311 |
Convertible Notes (Details Narr
Convertible Notes (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Aug. 30, 2021 | Apr. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Aug. 25, 2021 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | ||||||||||
Interest Expense | $ 208,000 | $ 186,000 | $ 835,000 | $ 355,000 | ||||||
Warrants and Rights Outstanding, Term | 4 years 11 months 1 day | 4 years 11 months 1 day | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 10.80 | $ 10.80 | ||||||||
IPO [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Conversion of Stock, Shares Converted | 708,820 | |||||||||
Warrants and Rights Outstanding, Term | 5 years | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 10.80 | $ 10.80 | ||||||||
2020 Convertible Notes [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Debt interest rate | 5.00% | 5.00% | ||||||||
Proceeds from debt | $ 10,000,000 | |||||||||
Convertible price per share percentage | 80.00% | |||||||||
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 0 | $ 856,000 | |||||||
Debt Issuance Costs, Net | $ 22,000 | |||||||||
Amortization of Debt Issuance Costs and Discounts | $ 18,000 | 153,000 | $ 379,000 | 294,000 | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 0.00% | 0.00% | 30.80% | |||||||
Interest Expense | $ 25,000 | $ 33,000 | $ 101,000 | $ 63,000 | ||||||
2020 Convertible Notes [Member] | IPO [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 8.60% | 8.60% | ||||||||
2021 Convertible Notes [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Debt interest rate | 5.00% | 5.00% | ||||||||
Derivative Liability, Fair Value, Gross Liability | $ 363,000 | $ 363,000 | ||||||||
Debt Issuance Costs, Net | 23,000 | 23,000 | ||||||||
Amortization of Debt Issuance Costs and Discounts | 141,000 | 318,000 | ||||||||
Interest Expense | $ 17,000 | $ 38,000 | ||||||||
2021 Convertible Notes [Member] | IPO [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 46.50% | 46.50% | ||||||||
2020 and 2021 Convertible Notes [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Convertible notes payable issuance | $ 5,300,000 | $ 5,300,000 | ||||||||
Debt Instrument, Unamortized Discount | $ 78,000 | $ 78,000 | ||||||||
Note Purchase Agreement [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Convertible notes payable issuance | $ 4 | |||||||||
Debt maturity date | Mar. 31, 2021 | |||||||||
Note Purchase Agreement [Member] | 2020 Convertible Notes [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Borrowings of debt | $ 3,000,000 | |||||||||
Debt interest rate | 5.00% | |||||||||
Note Purchase Agreement [Member] | 2021 and 2020 Convertible Notes [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Borrowings of debt | $ 2,000,000 | |||||||||
Note Purchase Agreement [Member] | 2021 Convertible Notes [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Debt interest rate | 5.00% | |||||||||
Convertible price per share percentage | 87.50% |
Promissory Note (Details Narrat
Promissory Note (Details Narrative) - USD ($) | Apr. 22, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Short-term Debt [Line Items] | |||||
Gain (Loss) on Extinguishment of Debt | $ (78,000) | $ 62,000 | |||
PPP Loan [Member] | |||||
Short-term Debt [Line Items] | |||||
Proceeds from Issuance of Debt | $ 140,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | ||||
Debt Instrument, Maturity Date | Apr. 22, 2022 | ||||
Gain (Loss) on Extinguishment of Debt | $ 140,000 |
Schedule of Issued and outstand
Schedule of Issued and outstanding convertible preferred stock (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Aug. 30, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 15,000,000 | 15,000,000 | |
Preferred stock, shares outstanding | 0 | ||
Convertible Preferred Stock Series A - 1 [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 3,542,669 | ||
Preferred stock, shares issued | 708,533 | ||
Preferred stock, shares outstanding | 708,533 | ||
Preferred stock, aggregate liquidation value | $ 660 | ||
Preferred stock, net carrying value | $ 639 | ||
Convertible Preferred Stock Series A2 [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 3,546,095 | ||
Preferred stock, shares issued | 709,219 | ||
Preferred stock, shares outstanding | 709,219 | ||
Preferred stock, aggregate liquidation value | $ 1,150 | ||
Preferred stock, net carrying value | $ 1,099 | ||
Convertible Preferred Stock Series A3 [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 2,660,230 | ||
Preferred stock, shares issued | 532,046 | ||
Preferred stock, shares outstanding | 532,046 | ||
Preferred stock, aggregate liquidation value | $ 2,227 | ||
Preferred stock, net carrying value | $ 2,166 | ||
Convertible Preferred Stock Series B [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 12,611,461 | ||
Preferred stock, shares issued | 1,585,671 | ||
Preferred stock, shares outstanding | 1,585,671 | ||
Preferred stock, aggregate liquidation value | $ 8,745 | ||
Preferred stock, net carrying value | $ 8,547 | ||
Convertible Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 22,360,455 | ||
Preferred stock, shares issued | 3,535,469 | ||
Preferred stock, shares outstanding | 3,535,469 | ||
Preferred stock, aggregate liquidation value | $ 12,782 | ||
Preferred stock, net carrying value | $ 12,451 |
Capital Stock (Details Narrativ
Capital Stock (Details Narrative) - USD ($) $ / shares in Units, $ in Millions | Aug. 25, 2021 | Aug. 25, 2021 | Aug. 05, 2021 | Aug. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Subsidiary, Sale of Stock [Line Items] | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 10.80 | |||||
Warrants and Rights Outstanding, Term | 4 years 11 months 1 day | |||||
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 | 42,000,000 | |||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Preferred Stock, Shares Authorized | 15,000,000 | 15,000,000 | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | |||||
Reverse stock split, description | 1-for-5 reverse stock split | 1-5 reverse stock split | ||||
Preferred stock, shares outstanding | 0 | |||||
Convertible Preferred Stock [Member] | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Conversion of Stock, Shares Converted | 3,535,469 | |||||
Preferred Stock, Shares Authorized | 22,360,455 | |||||
Preferred stock, shares outstanding | 3,535,469 | |||||
Common Stock [Member] | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | 1,850,000 | |||||
Conversion of Stock, Shares Issued | 3,535,469 | 3,535,469 | ||||
IPO [Member] | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | 1,850,000 | |||||
Shares Issued, Price Per Share | $ 9 | $ 9 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 10.80 | $ 10.80 | $ 10.80 | |||
Warrants and Rights Outstanding, Term | 5 years | |||||
[custom:SharesExercisableDescription] | after the issuance date. | |||||
Net proceeds from initial public offering | $ 14.6 | |||||
Underwriting discounts and commissions | 1.3 | |||||
Other Expenses | $ 0.8 | |||||
Conversion of Stock, Shares Converted | 708,820 | |||||
Conversion of Stock, Shares Issued | 3,535,469 | |||||
Debt Conversion, Converted Instrument, Amount | $ 5.3 | |||||
Debt Conversion, Converted Instrument, Shares Issued | 708,820 | |||||
IPO [Member] | Warrant [Member] | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 10.80 | $ 10.80 | ||||
Warrants and Rights Outstanding, Term | 5 years | 5 years |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating lease agreement, description | The Company leases its headquarters in Los Altos, California under a one-year operating lease agreement which expires on May 31, 2022. | |||
Operating lease period | 1 year | 1 year | ||
Operating lease, rent expense | $ 18,000 | $ 11,000 | $ 42,000 | $ 33,000 |
Summary of Stock Option Award A
Summary of Stock Option Award Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Number of Stock Options Outstanding, Beginning Balance | shares | 997,266 |
Weighted Average Exercise Price Outstanding, Beginning Balance | $ / shares | $ 0.42 |
Weighted Average Remaining Contractual Life in Years Outstanding, Beginning Balance | 5 years 10 months 2 days |
Aggregate Intrinsic Value Outstanding, Beginning Balance | $ | $ 276 |
Number of Stock Options, Granted | shares | 238,269 |
Weighted Average Exercise Price, Granted | $ / shares | $ 4.94 |
Number of Stock Options, Exercised | shares | (332,932) |
Weighted Average Exercise Price, Exercised | $ / shares | $ 0.27 |
Number of Stock Options, Forfeited | shares | (23,625) |
Weighted Average Exercise Price, Forfeited | $ / shares | $ 0.67 |
Number of Stock Options, Expired | shares | (83) |
Weighted Average Exercise Price, Expired | $ / shares | $ 0.70 |
Number of Stock Options Outstanding, Ending Balance | shares | 878,895 |
Weighted Average Exercise Price Outstanding, Ending Balance | $ / shares | $ 0.48 |
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm] | 6 years 6 months 29 days |
Aggregate Intrinsic Value Outstanding, Ending Balance | $ | $ 3,817 |
Number of Stock Options, Exercisable | shares | 603,086 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 0.53 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 3 months 10 days |
Aggregate Intrinsic Value, Ecercisable | $ | $ 3,323 |
Number of Stock Options, Vested and expected to vest | shares | 878,895 |
Weighted Average Exercise Price, Vested and expected to vest | $ / shares | $ 1.70 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 6 years 6 months 29 days |
Aggregate Intrinsic Value, Vested and expected to vest | $ | $ 3,817 |
Schedule of Estimate Fair Value
Schedule of Estimate Fair Value of Stock Options (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Minimum Volatility | 41.66% |
Maximum Volatility | 42.13% |
Risk-free interest rate, minimum | 0.62% |
Risk-free interest rate, maximum | 1.00% |
Dividend rate | 0.00% |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life (years) | 5 years |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life (years) | 10 years |
Schedule of Stock Based Compens
Schedule of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 6 | $ 7 | $ 21 | $ 25 |
Research and Development Expense [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 2 | 5 | 5 | 19 |
General and Administrative Expense [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 4 | $ 2 | $ 16 | $ 6 |
Schedule of Warrant Activity (D
Schedule of Warrant Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Warrants Outstanding, Beginning Balance | shares | |
Weighted Average Exercise Price, Beginning Balance | $ / shares | |
Warrants Outstanding, Issued | shares | 3,035,195 |
Weighted Average Exercise Price, Issued | $ / shares | $ 9.81 |
Warrants Outstanding, Exercised | shares | (525,200) |
Weighted Average Exercise Price, Execised | $ / shares | $ 5.10 |
Warrants Outstanding, Expired | shares | |
Weighted Average Exercise Price, Expired | $ / shares | |
Warrants Outstanding, Ending Balance | shares | 2,509,995 |
Weighted Average Exercise Price, Ending Balance | $ / shares | $ 10.80 |
Warrant, Weighted Average Remaining Contractual Life | 4 years 11 months 1 day |
Warrant, Aggregate Intrinsic Value | $ | $ 27,108 |
Equity Incentive Plan-Stock-B_3
Equity Incentive Plan-Stock-Based Compensation Expense and Common Stock Warrants (Details Narrative) - USD ($) | Jul. 19, 2021 | Sep. 30, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 364,000 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 4 months 9 days | |
Warrant granted | 3,035,195 | |
Underwriter [Member] | Warrant [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrant granted | 3,035,195 | |
Underwriter [Member] | Warrant One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 198,875 | |
Warrant expiration date | Aug. 25, 2026 | |
Underwriter [Member] | Warrant Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 2,836,320 | |
Warrant expiration date | Aug. 31, 2026 | |
2021 Omnibus Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for future issuance | 2,175,000 | |
Number of shares available for issuance | 20,401 | |
Incentive plan, description | The 2021 Plan provides an annual increase on January 1, beginning on January 1, 2022, during the initial ten-year term of the 2021 Plan, equal to the lesser of (A) three percent (3%) of the shares outstanding (on an as-converted basis) on the final day of the immediately preceding calendar year and (B) such lesser number of shares as determined by the Board; provided that shares of common stock issued under the 2021 Plan with respect to an Exempt Award will not count against the share limit. | |
Options vesting period | 4 years | |
Options granted, description | Options under the 2021 Plan may be granted for periods of up to 10 years and at exercise prices no less than 100% of the estimated fair value of the underlying shares of common stock on the date of grant as determined by the Board of Directors provided that the exercise price of an ISO and NSO granted to a 10% stockholder shall not be less than 110% of the estimated fair value of the shares on the date of grant. The 2021 Plan requires that options be exercised no later than 10 years after the grant. Options granted to employees generally vest ratably on a monthly basis over four years, subject to cliff vesting restrictions. |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Accrued interest or penalties related to uncertain tax positions | $ 0 | $ 0 |
Schedule of Computation of Basi
Schedule of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||||||
Net loss | $ (1,511) | $ (1,310) | $ (1,148) | $ (1,096) | $ (773) | $ (1,051) | $ (3,969) | $ (2,920) |
Weighted-average shares of common stock outstanding used in the calculation of basic and diluted net loss per share | 5,620,135 | 2,263,589 | 3,640,988 | 2,233,645 | ||||
Net loss per share, basic and diluted | $ (0.27) | $ (0.48) | $ (1.09) | $ (1.31) |
Schedule of Potentially Anti Di
Schedule of Potentially Anti Dilutive Securities (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 878,895 | 4,547,544 |
Share-based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 878,895 | 1,012,075 |
Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 3,535,469 |
Related Party Transaction (Deta
Related Party Transaction (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Feb. 29, 2020 | Jul. 31, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Jun. 30, 2021 | Sep. 30, 2019 | Dec. 31, 2018 | May 31, 2017 | |
Related Party Transaction [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 878,895 | 878,895 | 997,266 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 238,269 | ||||||||||
Dr.Agah [Member] | Consulting Agreement [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 40,000 | 52,203 | 52,203 | 20,000 | 60,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||||||||
Deferred Compensation Arrangement with Individual, Cash Award Granted, Amount | $ 10,000 | $ 4,000 | |||||||||
Dr.Agah [Member] | Consulting Agreement [Member] | IPO [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Deferred Compensation Arrangement with Individual, Cash Award Granted, Amount | $ 260,000 | ||||||||||
Consulting fees | $ 42,000 | $ 30,000 | $ 102,000 | $ 90,000 | |||||||
Paul Manners [Member] | Consulting Agreement [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||||||||
Consulting fees | 56,000 | $ 12,000 | 155,000 | $ 32,000 | $ 150 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 28,000 | ||||||||||
Najmabadi [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Deferred Compensation Arrangement with Individual, Cash Award Granted, Amount | $ 3,000 | $ 3,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - shares | 1 Months Ended | 9 Months Ended |
Oct. 30, 2021 | Sep. 30, 2021 | |
Subsequent Event [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 238,269 | |
Board of Directors Chairman [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 66,923 |