Hepion Pharmaceuticals (HEPA) 10-Q 16 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 10, 2020
Document and Entity Information
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Entity Registrant Name	HEPION PHARMACEUTICALS, INC.
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	HEPA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Ex Transition Period	true
Entity Common Stock, Shares Outstanding		9,025,153
Entity Central Index Key	0001583771
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Interactive Data Current	Yes

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2020	Dec. 31, 2019	[1]
Current assets:
Cash	$ 13,711,334	$ 13,922,972
Prepaid expenses	641,157	465,693
Total current assets	14,352,491	14,388,665
Property and equipment, net	45,476	57,166
Right-of-use assets	614,193	797,913
In-process research and development	3,190,000	3,190,000
Goodwill	1,870,924	1,870,924
Other assets	290,604	306,880
Total assets	20,363,688	20,611,548
Current liabilities:
Accounts payable	1,296,545	491,557
Accrued expenses	2,384,133	851,202
Operating lease liabilities, current	275,296	266,696
Total current liabilities	3,955,974	1,609,455
Contingent consideration	2,560,000	2,430,000
Long-term debt	176,585
Deferred tax liability	409,022	409,022
Operating lease liabilities, non-current	358,470	540,751
Derivative financial instruments, at estimated fair value-warrants	30,831	5,623
Total liabilities	7,490,882	4,994,851
Commitments and contingencies (Note 11)
Stockholders' equity:
Common stock—$0.0001 par value per share; 120,000,000 shares authorized, 9,025,153 and 3,760,255 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively.	901	375
Additional paid in capital	110,309,541	97,651,006
Accumulated deficit	(99,149,764)	(83,751,525)
Total stockholders' equity	12,872,806	15,616,697
Total liabilities and stockholders' equity	20,363,688	20,611,548
Series A
Stockholders' equity:
Convertible preferred stock	855,808	855,808
Series C
Stockholders' equity:
Convertible preferred stock	$ 856,320	$ 861,033
[1]	(1) See Note 2

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	120,000,000	120,000,000
Common stock, shares issued	9,025,153	3,760,255
Common stock, shares outstanding	9,025,153	3,760,255
Series A
Convertible preferred stock, par value	$ 10	$ 10
Convertible preferred stock, shares issued	85,581	85,581
Convertible preferred stock, shares outstanding	85,581	85,581
Series C
Convertible preferred stock, par value	$ 1,000	$ 1,000
Convertible preferred stock, shares issued	1,817	1,827
Convertible preferred stock, shares outstanding	1,817	1,827

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Costs and expenses:
Research and development	$ 3,782,505	$ 846,453	$ 9,370,176	$ 2,120,152
General and administrative	2,448,489	1,064,081	5,823,169	3,407,650
Total operating expenses	6,230,994	1,910,534	15,193,345	5,527,802
Loss from operations	(6,230,994)	(1,910,534)	(15,193,345)	(5,527,802)
Other income (expense):
Change in fair value of debt		(22,197)		(175,992)
Interest expense	(16,159)	(15,354)	(16,159)	(555,441)
Change in fair value of derivative instruments-warrants and contingent consideration	(46,433)	128,402	(155,208)	473,929
Loss before income taxes	(6,293,586)	(1,819,683)	(15,364,712)	(5,785,306)
Income tax benefit (expense)	62,044		(33,527)	961,014
Net loss	(6,231,542)	(1,819,683)	(15,398,239)	(4,824,292)
Deemed dividend (see Note 5)	(5,287)	(8,460)	(5,287)	(5,444,826)
Net loss attributable to common shareholders	$ (6,236,829)	$ (1,828,143)	$ (15,403,526)	$ (10,269,118)
Weighted average common shares outstanding:
Basic and diluted	9,025,139	3,453,628	7,294,790	1,532,927
Net loss per common share: (see Note 10)
Basic and diluted	$ (0.69)	$ (0.53)	$ (2.11)	$ (6.70)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders’ Equity - USD ($)	Preferred StockPreferred StockSeries D	Preferred StockPreferred StockSeries E	Preferred StockSeries A	Preferred StockSeries C	Preferred StockSeries D	Preferred StockSeries E	Common StockPrivate placement	Common Stock	Additional Paid in CapitalPreferred Stock	Additional Paid in CapitalPrivate placement	Additional Paid in Capital	Accumulated Deficit	Preferred Stock	Private placement	Total
Balance at Dec. 31, 2018			$ 855,808	$ 930,311				$ 25			$ 76,652,839	$ (76,714,187)			$ 1,724,796
Balance (in shares) at Dec. 31, 2018			85,581	1,974				247,013
Changes in Stockholders' Equity
Net loss												(1,983,711)			(1,983,711)
Stock based compensation expense											17,506				17,506
Conversion of preferred stock to common				$ (46,000)							46,000
Conversion of preferred stock to common (in shares)				(46)				424
Accretion of discount				$ 24,321							(24,321)
Issuance of stock, net							$ 5			$ 486,278				$ 486,283
Issuance of stock, net (in shares)							47,429
Issuance of common stock, debt redemption								$ 1			149,917				149,918
Issuance of common stock, debt redemption (in shares)								11,882
Balance at Mar. 31, 2019			$ 855,808	$ 908,632				$ 31			77,328,219	(78,697,898)			394,792
Balance (in shares) at Mar. 31, 2019			85,581	1,928				306,748
Balance at Dec. 31, 2018			$ 855,808	$ 930,311				$ 25			76,652,839	(76,714,187)			1,724,796
Balance (in shares) at Dec. 31, 2018			85,581	1,974				247,013
Changes in Stockholders' Equity
Net loss															(4,824,292)
Balance at Sep. 30, 2019			$ 855,808	$ 861,033				$ 345			95,797,628	(81,538,479)			15,976,335
Balance (in shares) at Sep. 30, 2019			85,581	1,827				3,453,755
Balance at Dec. 31, 2018			$ 855,808	$ 930,311				$ 25			76,652,839	(76,714,187)			1,724,796
Balance (in shares) at Dec. 31, 2018			85,581	1,974				247,013
Changes in Stockholders' Equity
Net loss															(7,037,338)
Balance at Dec. 31, 2019			$ 855,808	$ 861,033				$ 375			97,651,006	(83,751,525)			15,616,697	[1]
Balance (in shares) at Dec. 31, 2019			85,581	1,827				3,760,255
Balance at Mar. 31, 2019			$ 855,808	$ 908,632				$ 31			77,328,219	(78,697,898)			394,792
Balance (in shares) at Mar. 31, 2019			85,581	1,928				306,748
Changes in Stockholders' Equity
Net loss												(1,020,899)			(1,020,899)
Stock based compensation expense											17,133				17,133
Conversion of preferred stock to common				$ (85,000)	$ (521,000)	$ (10,570,002)		$ 182			11,175,820
Conversion of preferred stock to common (in shares)				(85)	(521)	(10,570)		1,824,473
Offering costs					$ (29,526)	$ (472,311)					(536,787)				(1,038,624)
Placement agent warrants					(48,250)	(244,895)					293,145
Beneficial conversion feature of preferred stock					(186,692)	(581,350)					768,042
Accretion of beneficial conversion feature					186,692	581,350					(768,042)
Accretion of discount				$ 44,941	$ 286,176	$ 4,311,007					(4,642,124)
Issuance of stock, net	$ 312,600	$ 6,976,201						$ 103	$ 3,802,201	$ 330	5,844,421		$ 11,091,002	$ 330	5,844,524
Issuance of stock, net (in shares)	521	10,570						1,031,071
Warrant exercises								$ 25			2,090,542				2,090,567
Warrant exercises (in shares)								248,877
Issuance of common stock, debt redemption								$ 4			400,059				400,063
Issuance of common stock, debt redemption (in shares)								42,439
Balance at Jun. 30, 2019			$ 855,808	$ 868,573				$ 345			95,772,959	(79,718,797)			17,778,888
Balance (in shares) at Jun. 30, 2019			85,581	1,843				3,453,608
Changes in Stockholders' Equity
Net loss												(1,819,682)			(1,819,683)
Stock based compensation expense											17,129				17,129
Conversion of preferred stock to common				$ (16,000)							16,000
Conversion of preferred stock to common (in shares)				(16)				147
Accretion of discount				$ 8,460							(8,460)
Balance at Sep. 30, 2019			$ 855,808	$ 861,033				$ 345			95,797,628	(81,538,479)			15,976,335
Balance (in shares) at Sep. 30, 2019			85,581	1,827				3,453,755
Balance at Dec. 31, 2019			$ 855,808	$ 861,033				$ 375			97,651,006	(83,751,525)			15,616,697	[1]
Balance (in shares) at Dec. 31, 2019			85,581	1,827				3,760,255
Changes in Stockholders' Equity
Net loss												(4,226,617)			(4,226,617)
Stock based compensation expense											8,246				8,246
Issuance of stock, net								$ 231			6,788,234				6,788,465
Issuance of stock, net (in shares)								2,311,867
Warrant exercises											12,000				12,000
Warrant exercises (in shares)								2,000
Balance at Mar. 31, 2020			$ 855,808	$ 861,033				$ 606			104,459,486	(87,978,142)			18,198,791
Balance (in shares) at Mar. 31, 2020			85,581	1,827				6,074,122
Balance at Dec. 31, 2019			$ 855,808	$ 861,033				$ 375			97,651,006	(83,751,525)			15,616,697	[1]
Balance (in shares) at Dec. 31, 2019			85,581	1,827				3,760,255
Changes in Stockholders' Equity
Net loss															(15,398,239)
Balance at Sep. 30, 2020			$ 855,808	$ 856,320				$ 901			110,309,541	(99,149,764)			12,872,806
Balance (in shares) at Sep. 30, 2020			85,581	1,817				9,025,153
Balance at Mar. 31, 2020			$ 855,808	$ 861,033				$ 606			104,459,486	(87,978,142)			18,198,791
Balance (in shares) at Mar. 31, 2020			85,581	1,827				6,074,122
Changes in Stockholders' Equity
Net loss												(4,940,080)			(4,940,080)
Stock based compensation expense											4,123				4,123
Issuance of stock, net								$ 295			4,460,054				4,460,349
Issuance of stock, net (in shares)								2,950,939
Balance at Jun. 30, 2020			$ 855,808	$ 861,033				$ 901			108,923,663	(92,918,222)			17,723,183
Balance (in shares) at Jun. 30, 2020			85,581	1,827				9,025,061
Changes in Stockholders' Equity
Net loss												(6,231,542)			(6,231,542)
Stock based compensation expense											1,381,165				1,381,165
Conversion of preferred stock to common				$ (10,000)							10,000
Conversion of preferred stock to common (in shares)				(10)				92
Accretion of discount				$ 5,287							(5,287)
Balance at Sep. 30, 2020			$ 855,808	$ 856,320				$ 901			$ 110,309,541	$ (99,149,764)			$ 12,872,806
Balance (in shares) at Sep. 30, 2020			85,581	1,817				9,025,153
[1]	(1) See Note 2

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Cash flows from operating activities:
Net loss	$ (6,231,542)	$ (4,226,617)	$ (1,819,683)	$ (1,983,711)	$ (15,398,239)	$ (4,824,292)	$ (7,037,338)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation					1,393,534	51,768
Depreciation and amortization	7,204		7,268		20,933	20,196
Change in fair value of derivative instrument-warrants					25,208	(403,928)
Change in fair value of contingent consideration					130,000	(70,000)
Change in fair value of debt						175,992
Amortization of debt discount recorded as interest expense						486,608
Non-cash interest for shares issued for debt redemption payments						49,732
Changes in operating assets and liabilities:
Accounts payable and accrued expenses					2,337,919	(425,992)
Prepaid expenses and other assets					(149,149)	(184,962)
Net cash used in operating activities					(11,639,794)	(5,124,878)
Cash flows from investing activities:
Purchase of property and equipment					(11,437)	(45,336)
Proceeds from disposal of property and equipment					2,194
Net cash used in investing activities					(9,243)	(45,336)
Cash flows from financing activities:
Proceeds from the issuance of common stock, net of issuance costs					11,248,814	5,844,530
Proceeds from the exercise of warrants					12,000	2,090,567
Proceeds from debt financing					176,585	1,250,000
Repayment of debt financing						(1,250,000)
Repayment of convertible debt						(785,744)
Net cash provided by financing activities					11,437,399	17,201,731
Net (decrease) increase in cash					(211,638)	12,031,517
Cash at beginning of period		$ 13,922,972		$ 2,832,429	13,922,972	2,832,429	2,832,429
Cash at end of period	$ 13,711,334		$ 14,863,946		13,711,334	14,863,946	$ 13,922,972
Supplementary disclosure of cash flow information:
Cash paid for interest						26,756
Supplementary disclosure of non-cash financing activities:
Accretion of Series C preferred stock discount upon conversion					5,287	4,674,905
Beneficial conversion factor of preferred stock accreted as deemed dividend						768,042
Issuance of common stock for debt redemption						500,248
Adoption of lease accounting						642,405
Warrants issued to placement agent						293,145
Series C
Supplementary disclosure of non-cash financing activities:
Conversion of preferred stock					$ 10,000	147,000
Series D
Cash flows from financing activities:
Proceeds from issuance of preferred stock and warrants						403,120
Supplementary disclosure of non-cash financing activities:
Conversion of preferred stock						521,000
Series E
Cash flows from financing activities:
Proceeds from issuance of preferred stock and warrants						9,649,258
Supplementary disclosure of non-cash financing activities:
Conversion of preferred stock						$ 10,570,002

Business Overview

Business Overview	9 Months Ended
	Sep. 30, 2020
Business Overview
Business Overview	1. Business Overview Hepion Pharmaceuticals, Inc. (we, our, or us) is a biopharmaceutical company headquartered in Edison, New Jersey, focused on the development of pleiotropic drug therapy for treatment of chronic liver disease. This therapeutic approach targets fibrosis and hepatocellular carcinoma (“HCC”) associated with non-alcoholic steatohepatitis (“NASH”), viral hepatitis, and other liver diseases. Our cyclophilin inhibitor, CRV431, is being developed to offer benefits to address these multiple complex pathologies. CRV431 is a cyclophilin inhibitor that targets multiple biochemical pathways involved in the progression of liver disease. Preclinical studies with CRV431 in NASH models demonstrated consistent reductions in liver inflammation, fibrosis, and cancerous tumors. CRV431 additionally shows antiviral activity towards hepatitis B, C, and D viruses which also trigger liver disease. On July 18, 2019, we filed a certificate of amendment (the “Certificate of Amendment”) to our certificate of incorporation (the “Certificate”) to change our name from “ContraVir Pharmaceuticals, Inc.” to “Hepion Pharmaceuticals, Inc.” The name change became effective as of July 18, 2019. We are developing CRV431 as our lead molecule. CRV431 is a cyclophilin inhibitor that targets specific isomerases that play an important role in protein folding in health and in disease. To date, in vitro and/or in vivo studies have demonstrated reductions in HBV DNA, HBsAg, HBeAg, inhibition of virus uptake (NTCP transport inhibition), and stimulation of innate immunity. Importantly, in vivo studies in a NASH model of fibrosis and HCC have repeatedly demonstrated CRV431 reduces fibrosis scores and overall liver tumor burden. Hence, CRV431 is a pleiotropic molecule that may not only treat liver disease but may also serve to reduce important risk factors (e.g., HBV) for developing the disease. We have completed a Phase 1 study with CRV431 demonstrating safety, tolerability, and pharmacokinetics (PK). We are currently conducting a Phase 2a study in NASH patients with fibrosis scores of F2 and F3. The first dosing cohort of 75 mg CRV431 once daily orally is underway. CRV431 On May 10, 2018, we submitted an Investigational New Drug Application (“IND”) to the U.S. Food and Drug Administration (“FDA”) to support initiation of our CRV431 HBV clinical development program in the United States and received approval in June 2018. We completed the first segment of our Phase 1 clinical activities for CRV431 in October 2018 wherein we reached a major clinical milestone of positive data from a Phase I trial of CRV431 in humans. This achievement triggered the first milestone payment, as stated in the Merger Agreement for the acquisition of Ciclofilin Pharmaceuticals, Inc. (“Ciclofilin”) and we paid a related milestone payment of approximately $346,000 to Aurinia Pharmaceuticals, Inc. ("Aurinia") and $654,000 to the former Ciclofilin shareholders along with the issuance of 1,439 shares of our common stock with a fair value of $55,398, representing 2.5% of our issued and outstanding common stock as of June, 2016, to the former Ciclofilin shareholders. Our CEO is a former Ciclofilin shareholder and received approximately $274,000 and 603 shares of common stock and Petrus Wijngaard, a director of our company, received $2,805 and 6 shares of common stock. Additional milestone payments could potentially be payable to the former Ciclofilin shareholders pursuant to the Ciclofilin Merger Agreement as follows: (i) upon receipt of Phase II positive data from a proof of concept clinical trial of CRV431 in humans - 4,317 shares of common stock and $3,000,000, (ii) upon initiation of a Phase III trial of CRV431 - $5,000,000, and (iii) upon acceptance by the FDA of a new drug application for CRV431 - $8,000,000. In addition, on February 14, 2014, Ciclofilin had entered into a Purchase and Sale Agreement to acquire Aurinia’s entire interest in CRV431. This agreement contains future milestone payments payable by us based on clinical and marketing milestones of up to CAD $2.45 million. The milestone payments payable to the former Ciclofilin shareholders will be subject to offset by certain of the clinical and marketing milestone payments payable to Aurinia as follows: (a) the payments to the former Ciclofilin shareholders pursuant to (ii) above would be offset by payment to Aurinia of CAD $450,000, and (b) the payments to the former Ciclofilin shareholders pursuant to (iii) above would be subject to offset by payment to Aurinia of up to CAD $2,000,000. In addition to the above clinical and milestone payments, the Aurinia Agreement provides for the following additional contingent payment obligations: (x) a royalty of 2.5% on net sales of CRV431 which is uncapped, (y) a royalty of 5% on license revenue from CRV431 and (z) a payment equal to 30% of the proceeds from a Liquidity Event (as defined in the Purchase and Sale Agreement) with respect to Ciclofilin, of which approximately $150,000 plus interest will be paid to Aurinia. The maximum obligation under both (y) and (z) is CAD $5,000,000. On June 17, 2019, we submitted an IND to the FDA to support initiation of our CRV431 NASH clinical development program in the United States and received approval in July 2019. We completed dosing of CRV431 in our multiple ascending dose (“MAD”) clinical trial in September 2020.

Basis of Presentation and Going

Basis of Presentation and Going Concern	9 Months Ended
	Sep. 30, 2020
Basis of Presentation and Going Concern
Basis of Presentation and Going Concern	2. Basis of Presentation and Going Concern These unaudited condensed consolidated financial statements have been prepared following the requirements of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim reporting. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, which include only normal recurring adjustments, necessary to present fairly our interim financial information. The consolidated balance sheet as of December 31, 2019 was derived from the audited annual consolidated financial statements but does not include all disclosures required by U.S. GAAP. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2019 contained in our Annual Report on Form 10-K. Principles of Consolidation The accompanying condensed consolidated financial statements include our accounts and the accounts of our subsidiaries, Contravir Research Inc. and Hepion Research Corp, which conduct their operations in Canada. All intercompany balances and transactions have been eliminated in consolidation. Correction of Immaterial Errors In connection with the preparation of our unaudited condensed consolidated financial statements as of and for the period ended September 30, 2020 and 2019, we determined that a revision was required to correct misstatements associated with the classification of certain income tax balances and misstatements related to certain of our income tax disclosures as of and for the year ended December 31, 2019. This resulted in corrections to both the December 31, 2019 consolidated financial statements and certain income tax note disclosures. We corrected the consolidated financial statement presentation as follows: (a) a reclassification of $174,949 for our Canadian deferred tax asset and a corresponding increase of $174,949 to the deferred tax asset valuation allowance (and corresponding correction to income tax disclosure) netting to $0; (b) a reclassification and true ups of $178,941 of prepaid taxes related to our Canadian subsidiary; (c) adjustments to reclassify balances from our Canadian deferred tax asset as an offset to our unrecognized tax position (and corresponding correction to income tax disclosure) in the net amount of $357,566 (inclusive of an opening balance tax withholding accrual); (d) the accrual of a withholding tax and related penalties and interest of $250,255 and corresponding impact to income taxes related to our Canadian subsidiary (adjusted through beginning of year accumulated deficit and stockholders’ equity); (e) reclassifications of $390,270 to correct Canadian deferred tax balances that were incorrectly netted with U.S. deferred tax balances; and (f) the related impact to income tax expense for the establishment of the deferred tax asset valuation allowance and other Canadian tax true-ups in the total net amount of $318,640. We also corrected certain amounts in the income tax note disclosure related to the following: (a) an overstatement of $324,172 to the Stock Compensation & Other deferred tax asset; (b) an understatement of $162,619 in the Federal NOL; (c) an understatement of $37,406 in the State NOL; (d) an overstatement of research and development credits of $143,361; and (d) Corresponding corrections in the net amount of $122,762 were also made in Deferred tax asset valuation allowance within the disclosures in the associated income tax disclosure of deferred tax assets and liabilities. The above corrections had no impact on the previously reported amounts of consolidated cash flows from operating, investing, or financing activities. We assessed the materiality of the misstatements both quantitatively and qualitatively and determined the correction of these errors to be immaterial to all prior consolidated financial statements taken as a whole and, therefore, amending previously filed reports to correct the errors was not required. The following tables present the amounts as reported, net correction adjustments, and corrected amounts for items affected by the corrections for the year ended December 31, 2019: Year ended December 31, 2019 As Net To be Accumulated deficit - beginning of year $ (76,463,932) $ (250,255) $ (76,714,187) Total stockholders' equity - beginning of year $ 1,975,051 $ (250,255) $ 1,724,796 Other assets $ 127,939 $ 178,941 $ 306,880 Total assets $ 20,432,607 $ 178,941 $ 20,611,548 Accrued expenses $ 493,636 $ 357,566 $ 851,202 Total current liabilities $ 1,251,889 $ 357,566 $ 1,609,455 Deferred tax liability $ 18,752 $ 390,270 $ 409,022 Total liabilities $ 4,247,015 $ 747,836 $ 4,994,851 Accumulated deficit $ (83,182,630) $ (568,895) $ (83,751,525) Total stockholders' equity $ 16,185,592 $ (568,895) $ 15,616,697 Total liabilities and stockholders' equity $ 20,432,607 $ 178,941 $ 20,611,548 Income taxes $ 1,227,322 $ (318,640) $ 908,682 Net loss $ (6,718,698) $ (318,640) $ (7,037,338) Net loss attributable to common shareholders $ (12,161,645) $ (318,640) $ (12,480,285) Net loss per common share - basic and diluted $ (5.95) $ — $ (6.11) The following tables present the amounts as reported, net correction adjustments, and corrected amounts for note disclosures affected by the corrections for the year ended December 31, 2019: Year ended December 31, 2019 As Net To be Federal net operating loss (“NOL”) $ 16,650,007 $ 162,619 $ 16,812,626 State NOL 2,401,609 37,406 2,439,015 Research and development credits 1,493,666 (143,361) 1,350,305 Lease liability 242,234 — 242,234 Stock compensation & other 1,213,339 (324,172) 889,167 Deferred tax asset valuation allowance (20,823,235) (122,762) (20,945,997) Total deferred tax asset 1,177,620 (390,270) 787,350 Deferred tax liability (In-Process R&D) (957,000) — (957,000) Right-of-use asset (239,372) — (239,372) Total deferred tax liability (1,196,372) — (1,196,372) Net deferred tax liability $ (18,752) $ (390,270) $ (409,022) In addition, certain disclosures of gross NOLs that are included in the Income Tax Note disclosure in our 2019 Annual Report on Form 10-K are updated as follows to reflect changes to the 2019 gross NOLs and an update to the uncertain tax position as a result of the addition corrections above. As of December 31, 2019 and 2018, we had U.S. federal and state net operating loss carryforwards of $107.3 million and $102.8 million, respectively, which may be available to offset future income tax liabilities and will begin to expire at various dates starting in December 2037. We also had federal and state research and development tax credit carry forwards of approximately $1.2 million as of December 31, 2019, which will begin to expire in December 2027. We had an unrecognized tax position of $283,600, a corresponding accrual for penalties and interest in the amount of $148,400, as a component of income tax expense, accrued through December 31, 2019 and an unrecognized tax position of $185,400 and a corresponding accrual for penalties and interest of $64,800, respectively, as of December 31, 2018. There are no amounts included in the unrecognized tax benefit at December 31, 2019 that will impact the effective rate if recognized. We expect that the entire amount of the unrecognized tax benefit to be reduced to $0 in the next 12 months. Going Concern As of September 30, 2020, we had $13.7 million in cash, we had an accumulated deficit of $99.1 million, and we had working capital of $10.4 million. For the nine months ended September 30, 2020, cash used in operating activities was $11.6 million, and for the three and nine months ended September 30, 2020, we had a net loss of $6.2 million and $15.4 million, respectively. We have not generated revenue to date and have incurred substantial losses and negative cash flows from operations since our inception. We have historically funded our operations through issuances of convertible debt, common stock and preferred stock. We expect to continue to incur losses for the next several years as we expand our research, development and clinical trials of CRV431. We are unable to predict the extent of any future losses or when we will become profitable, if at all. These condensed consolidated financial statements have been prepared under the assumption that we will continue as a going concern. Due to our recurring and expected continuing losses from operations, we have concluded there is substantial doubt in our ability to continue as a going concern within one year of the issuance of these condensed consolidated financial statements without additional capital becoming available to attain further operating efficiencies and, ultimately, to generate revenue. These condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. We will be required to raise additional capital within the next year to continue the development and commercialization of current product candidates and to continue to fund operations at the current cash expenditure levels. We cannot be certain that additional funding will be available on acceptable terms, or at all. To the extent that we raise additional funds by issuing equity securities, our stockholders may experience significant dilution. Any debt financing, if available, may involve restrictive covenants that impact our ability to conduct business. If we are unable to raise additional capital when required or on acceptable terms, we may have to (i) significantly delay, scale back or discontinue the development and/or commercialization of one or more product candidates; (ii) seek collaborators for product candidates at an earlier stage than otherwise would be desirable and on terms that are less favorable than might otherwise be available; or (iii) relinquish or otherwise dispose of rights to technologies, product candidates or products that we would otherwise seek to develop or commercialize on unfavorable terms. COVID-19 Pandemic On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus originating in Wuhan, China (the “COVID-19 outbreak”) and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. As such, it is uncertain as to the full magnitude that the pandemic will have on our financial condition, liquidity, and future results of operations. Management is actively monitoring the global situation and its impact on our financial condition, liquidity, operations, suppliers, industry, and workforce. While we have not experienced delays to date, w e may experience delays in the conduct of clinical testing of our product candidate. We do not know whether planned clinical trials will begin on time, will need to be redesigned or will be completed on schedule, if at all. The COVID-19 pandemic may affect the operations of the FDA and other health authorities, which could result in delays of reviews and approvals, including with respect to our product candidate. The evolving COVID-19 pandemic is also likely to directly or indirectly impact the pace of enrollment in our CRV431 clinical trials for at least the next several months and possibly longer as patients may avoid or may not be able to travel to healthcare facilities and physicians' offices unless due to a health emergency. Clinical trials can be delayed for a variety of reasons, including delays in obtaining regulatory approval to commence a clinical trial, in securing clinical trial agreements with prospective sites with acceptable terms, in obtaining institutional review board approval to conduct a clinical trial at a prospective site, in recruiting patients to participate in a clinical trial, related to the COVID-19 pandemic, or in obtaining sufficient supplies of clinical trial materials. Any delays in completing our clinical trials will increase our costs, slow down our product development, timeliness and approval process and delay our ability to generate revenue. The ultimate impact of the COVID-19 pandemic is highly uncertain and subject to change and we do not yet know the full extent of potential delays or impacts on our business, financing or clinical trial activities or on healthcare systems or the global economy as a whole. Although we cannot estimate the length or gravity of the impact of the COVID-19 outbreak nor estimate the potential impact to our fiscal year 2020 financial statements at this time, if the pandemic continues, it could have a material adverse effect on our results of future operations, financial position, liquidity, and capital resources, and those of the third parties on which we rely in fiscal year 2020. On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), as amended on June 5, 2020 by the Paycheck Protection Program (“PPP”). The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. On April 13, 2020, we were granted a loan (the “Loan”) from JPMorgan Chase Bank, N.A. in the aggregate amount of $176,585, pursuant to the PPP under Division A, Title I of the CARES Act. We are continuing to evaluate and examine the impacts the CARES Act may have on our business, results of operations, financial condition or liquidity. The Loan, which was in the form of a Note dated April 13, 2020 issued by us, matures on April 13, 2022 and bears interest at a rate of 0.98% per annum, payable monthly commencing on November 13, 2020. The Note may be prepaid by us at any time prior to maturity with no prepayment penalties. Funds from the Loan may only be used for payroll costs, rent and utilities. We intend to use the entire Loan amount for qualifying expenses. Under the terms of the PPP, certain amounts of the Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. We believe that we have properly satisfied all eligibility requirements for the PPP loan and we intend to comply with the loan forgiveness provisions in the legislation; however, there can be no assurance that we will obtain full forgiveness of the loan based on the legislation. The PPP Loan is reflected in the condensed consolidated balance sheet as long-term debt based upon the terms and conditions of the Loan agreement.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	3. Summary of Significant Accounting Policies Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of expenses during the reporting period. Changes in estimates and assumptions are reflected in reported results in the period in which they become known. Actual results could differ from those estimates. Our significant accounting policies are disclosed in the audited consolidated financial statements for the year ended December 31, 2019 included in our Form 10-K. Since the date of such consolidated financial statements, there have been no changes to our significant accounting policies. Cash As of September 30, 2020 and December 31, 2019, cash was $13.7 million and $13.9 million, respectively, consisting of checking accounts held at U.S. and Canadian commercial banks. Cash is maintained at financial institutions and, at times, balances may exceed federally insured limits. We have never experienced losses related to these balances. Fair Value of Financial Instruments Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement (“ASC 820”), establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and our own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of us. Unobservable inputs are inputs that reflect our assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC Topic 820 establishes a three-tier fair value hierarchy that distinguishes among the following: · Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that we can access. · Level 2—Valuations based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and models for which all significant inputs are observable, either directly or indirectly. · Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by us in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Financial instruments consist of cash and accounts payable, long-term debt, derivative instruments — warrants and contingent consideration. These financial instruments are stated at their respective historical carrying amounts, which approximate fair value due to their short-term nature, except for derivative instruments — warrants and contingent consideration, which were marked to market at the end of each reporting period. See Note 5 for additional information of the fair value of the derivative liabilities. We recorded contingent consideration from the 2016 acquisition of Ciclofilin, which is required to be carried at fair value. See Note 6 for additional information on the fair value of the contingent consideration. Derivative Financial Instruments We have issued common stock warrants in connection with the execution of certain equity financings. The fair value of the warrants, which were deemed to be derivative instruments based on certain contingent put features, was recorded as a derivative liability under the provisions of ASC Topic 815 Derivatives and Hedging (“ASC 815”) upon issuance. Subsequently, the liability is adjusted to fair value as of the end of each reporting period and the changes in the fair value of derivative liabilities are recorded in the statements of operations under the caption “Change in fair value of derivative financial instruments—warrants.” See Note 5 for additional information. The fair value of the warrants, issued in connection with the October 2015, April 2016, and April 2017 common stock offerings were deemed to be derivative instruments due to certain contingent put features, was determined using the Black-Scholes option pricing model, deemed to be an appropriate model due to the terms of the warrants issued, including a fixed term and exercise price. The warrants, issued in connection with the July 2018 Rights Offering (See Note 5) are deemed to be derivative instruments since if we do not maintain an effective registration statement, we are obligated to deliver registered shares upon exercise and settlement of the warrant because there are further registration and prospectus delivery requirements that are outside our control. Therefore, the fair value of the warrants was determined using the Black-Scholes option pricing model, deemed to be an appropriate model due to the terms of the warrants issued, including a fixed term and exercise price. The fair value of warrants was affected by changes in inputs to the Black-Scholes option pricing model including our stock price, expected stock price volatility, the contractual term, and the risk-free interest rate. This model uses Level 3 inputs, including stock price volatility, in the fair value hierarchy established by ASC 820 Fair Value Measurement. At September 30, 2020 and December 31, 2019, the fair value of all warrants was $30,831 and $5,623, respectively, which are classified as a long-term derivative liability on our condensed consolidated balance sheets. Property, equipment and depreciation As of September 30, 2020 and December 31, 2019, we had $45,476 and $57,166, respectively, of property and equipment, consisting primarily of lab equipment, computer equipment, furniture and fixtures. Expenditures for additions, renewals and improvements will be capitalized at cost. Depreciation will generally be computed on a straight‑line method based on the estimated useful lives of the related assets. The estimated useful lives of the depreciable assets are 3 to 5 years. Leasehold improvements are amortized using the straight-line method over their estimated useful lives, or the remaining term of the lease, whichever is shorter. Depreciation expense for the three months ended September 30, 2020 and 2019 was $7,204 and $7,268, respectively, and was $20,933 and $20,196 for the nine months ended September 30, 2020 and 2019, respectively. Expenditures for repairs and maintenance are charged to operations as incurred. We will periodically evaluate whether current events or circumstances indicate that the carrying value of our depreciable assets may not be recoverable. There were no adjustments to the carrying value of property and equipment at September 30, 2020 or December 31, 2019. Goodwill and In-Process Research & Development In accordance with ASC Topic 350, Intangibles — Goodwill and Other (“ASC Topic 350”), goodwill and acquired IPR&D are determined to have indefinite lives and, therefore, are not amortized. Instead, they are tested for impairment annually, in our fourth quarter, and between annual tests if we become aware of an event or a change in circumstances that would indicate the carrying value may be impaired. In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment, which eliminates Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. We adopted ASU 2017-04 on January 1, 2020, and the adoption of this standard did not have a material effect on our condensed consolidated financial statements. Goodwill relates to amounts that arose in connection with the acquisition of Ciclofilin. Goodwill represents the excess of the purchase price over the fair value of the net assets acquired when accounted for using the acquisition method of accounting for business combinations. As a result of the COVID-19 pandemic, we performed a qualitative assessment of goodwill and determined that it was not more likely than not that the fair value of our reporting was less than its carrying value. There was no impairment of goodwill for the nine months ended September 30, 2020 and 2019. IPR&D acquired in a business combination is capitalized as indefinite-lived assets on our condensed consolidated balance sheets at the acquisition-date fair value. Once the project is completed, the carrying value of the IPR&D is reclassified to other intangible assets, net and is amortized over the estimated useful life of the asset. Post-acquisition research and development expenses related to the IPR&D projects are expensed as incurred. The projected discounted cash flow models used to estimate the fair values of our IPR&D assets, acquired in connection with the Ciclofilin acquisition, reflect significant assumptions regarding the estimates a market participant would make in order to evaluate a drug development asset, including: (i) probability of successfully completing clinical trials and obtaining regulatory approval; (ii) market size, market growth projections, and market share; (iii) estimates regarding the timing of and the expected costs to advance clinical programs to commercialization; (iv) estimates of future cash flows from potential product sales; and (v) a discount rate. These assumptions are based on significant inputs not observable in the market and thus represent Level 3 measurements within the fair value hierarchy. The use of different inputs and assumptions could increase or decrease our estimated discounted future cash flows, the resulting estimated fair values and the amounts of related impairments, if any. If IPR&D becomes impaired or is abandoned, the carrying value of the IPR&D is written down to the revised fair value with the related impairment charge recognized in the period in which the impairment occurs. If the carrying value of the asset becomes impaired as the result of unfavorable data from any ongoing or future clinical trial, changes in assumptions that negatively impact projected cash flows, or because of any other information regarding the prospects of successfully developing or commercializing our programs, we could incur significant charges in the period in which the impairment occurs. As a result of the COVID-19 pandemic, we performed a qualitative assessment of IPR&D and determined that it was not more likely than not that the asset was impaired. There was no impairment of IPR&D for the nine months ended September 30, 2020 and 2019. Income Taxes We account for income taxes under the asset and liability method. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as for operating loss and tax credit carryforwards. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we expect to recover or settle those temporary differences. We recognize the effect of a change in tax rates on deferred tax assets and liabilities in the results of operations in the period that includes the enactment date. We reduce the measurement of a deferred tax asset, if necessary, by a valuation allowance if it is more likely than not that we will not realize some or all of the deferred tax asset. We account for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon technical merits, it is “more-likely-than-not” that the position will be sustained upon examination. Potential interest and penalties associated with unrecognized tax positions are recognized in income tax expense. In April 2019, we transferred New Jersey state net operating loss tax credits and received approximately $1.0 million in connection with the sale of the state net operating losses to a third party recorded as an income tax benefit in the consolidated statement of operations. We received approval for the sale of net operating losses through participation in the New Jersey Technology Business Tax Certificate Transfer (NOL) Program. We continue to maintain a full valuation allowance for our U.S net deferred tax assets. The current period income tax expense is related to our foreign operations. Contingencies In the normal course of business, we are subject to loss contingencies, such as legal proceedings and claims arising out of our business that cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, product and environmental liability, and tax matters. In accordance with ASC Topic 450, Accounting for Contingencies, (“ASC 450”), we record accruals for such loss contingencies when it is probable that a liability will be incurred, and the amount of loss can be reasonably estimated. In accordance with this guidance, we do not recognize gain contingencies until realized. Research and Development Research and development costs, which include expenditures in connection with an in-house research and development laboratory, salaries and staff costs, application and filing for regulatory approval of proposed products, purchased in-process research and development, license costs, regulatory and scientific consulting fees, as well as contract research, insurance and FDA consultants, are accounted for in accordance with ASC Topic 730, Research and Development, (“ASC 730”). Also, as prescribed by this guidance, patent filing and maintenance expenses are considered legal in nature and therefore classified as general and administrative expense, if any. We do not currently have any commercial biopharmaceutical products and do not expect to have such for several years, if at all. Accordingly, our research and development costs are expensed as incurred. While certain of our research and development costs may have future benefits, our policy of expensing all research and development expenditures is predicated on the fact that we have no history of successful commercialization of product candidates to base any estimate of the number of future periods that would be benefited. Also as prescribed by ASC 730, non-refundable advance payments for goods or services that will be used or rendered for future research and development activities should be deferred and capitalized. As the related goods are delivered or the services are performed, or when the goods or services are no longer expected to be provided, the deferred amounts would be recognized as an expense. At September 30, 2020 and December 31, 2019, we had prepaid research and development costs of $0.5 million and $0.4 million, respectively. Share-based payments ASC Topic 718 “Compensation—Stock Compensation” (“ASC 718”) requires companies to measure the cost of employee and non-employee services received in exchange for the award of equity instruments based on the estimated fair value of the award at the date of grant. The expense is to be recognized over the period during which an employee is required to provide services in exchange for the award. Generally, we issue stock options with only service-based vesting conditions and record the expense for awards using the straight-line method. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The estimated expected stock volatility is based on the historical volatility of our own traded stock price. The expected term of stock options has been determined utilizing the “simplified” method for awards that qualify as “plain-vanilla” options. The expected term of stock options granted to non-employees is equal to the contractual term of the option award. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that we have never paid cash dividends and do not expect to pay any cash dividends in the foreseeable future. Foreign Exchange The functional currency of Hepion Pharmaceuticals, Inc. and ContraVir Research Inc. is the U.S. dollar. The functional currency of Hepion Research Corp. is the Canadian dollar. Our reporting currency is the U.S. dollar. The assets and liabilities of Ciclofilin are translated into U.S. dollars using period-end exchange rates; income and expenses are translated using the average exchange rates for the reporting period. Unrealized foreign currency translation adjustments are deferred in accumulated other comprehensive loss, a separate component of shareholders’ equity. The amount of currency translation adjustment was immaterial at September 30, 2020 and December 31, 2019. Transactions in foreign currencies are remeasured into the functional currency of the relevant subsidiaries at the exchange rate in effect at the date of the transaction. Any monetary assets and liabilities arising from these transactions are translated into the functional currency at exchange rates in effect at the balance sheet date or on settlement. Resulting gains and losses are recorded in other foreign exchange (gain) loss within the consolidated statements of operations. The impact of foreign exchange gains (losses) was immaterial at September 30, 2020 and December 31, 2019. Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker views our operations and manages the business in one segment. Net loss per share Basic and diluted net loss per share is presented in conformity with ASC Topic 260, Earnings per Share, (“ASC 260”) for all periods presented. In accordance with this guidance, basic and diluted net loss per common share was determined by dividing net loss attributable to common stockholders by the weighted-average common shares outstanding during the period.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2020
Recent Accounting Pronouncements
Recent Accounting Pronouncements	4. Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12). This guidance will be effective for us in the first quarter of 2021 on a prospective basis, and early adoption is permitted. We are currently evaluating the impact of the new guidance on our condensed consolidated financial statements. In August of 2018, the FASB issued ASU 2018-13 — Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which amends disclosure requirements on fair value measurements in Topic 820. This amendment modifies the valuation process of fair value measurements by removing the disclosure requirements for the valuation processes for Level 3 fair value measurements, clarifying the timing of the measurement uncertainty disclosure, and including the changes in unrealized gains and losses for recurring Level 3 fair value measurements in other comprehensive income if held at the end of the reporting period. It also allows the disclosure of other quantitative information in lieu of the weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019 and should be applied prospectively for the most recent period presented in the initial fiscal year of adoption. We adopted this standard on January 1, 2020 and the impact that this guidance had on our condensed consolidated financial statements was immaterial.

Stockholders' Equity and Deriva

Stockholders' Equity and Derivative Liability - Warrants	9 Months Ended
	Sep. 30, 2020
Stockholders' Equity and Derivative Liability - Warrants
Stockholders' Equity and Derivative Liability - Warrants	5. Stockholders’ Equity and Derivative Liability — Warrants Series A Convertible Preferred Stock On October 14, 2014, our Board of Directors authorized the sale and issuance of up to 1,250,000 shares of Series A Convertible Preferred Stock (the “Series A”). All shares of the Series A were issued between October 2014 and February 2015. Each share of the Series A is convertible at the option of the holder into the number of shares of common stock determined by dividing the stated value of such share by the conversion price that is subject to adjustment. As of September 30, 2020, there were 85,581 shares outstanding. During the nine months ended September 30, 2020, no shares of the Series A were converted. Series C Convertible Preferred Stock Issuance On July 3, 2018, we completed a rights offering pursuant to our effective registration statement on Form S-1. We offered for sale units in the rights offering and each unit sold in connection with the rights offering consisted of 1 share of our Series C Convertible Preferred Stock, or Series C, and common stock warrants (the “Rights Offering”). Upon completion of the offering, pursuant to the rights offering, we sold an aggregate of 10,826 units at an offering price of $1,000 per unit comprised of 10,826 shares of Series C and 88,928 common stock warrants. As of September 30, 2020, there were 1,817 shares outstanding. During the nine months ended September 30, 2020, 10 shares of the Series C were converted into 92 shares of our common stock. Common Stock and Warrant Offering On October 7, 2015, we entered into an underwriting agreement related to the public offering and sale of 8,929 shares of common stock and warrants to purchase up to 5,357 shares of common stock, at a fixed combined price to the public of $1,680 under our prior shelf registration statement on Form S-3. The shares of common stock and warrants were issued separately on October 13, 2015. The warrants were immediately exercisable and will be exercisable for a period of five years from the date of issuance at an exercise price of $2,380.00 per share. There is not, nor is there expected to be, any trading market for the warrants issued in the offering contemplated by the Underwriting Agreement. The gross proceeds to us were $15.0 million, before deducting the underwriting discount and other offering expenses payable by us of approximately $1.5 million. If the warrants were exercised in full, we would receive additional proceeds of approximately $12.8 million. If we consummate any merger, consolidation, sale or other reorganization event in which our common stock is converted into or exchanged for securities, cash or other property (“Fundamental Transaction”), then we shall pay at the holder’s option, exercisable at any time commencing on the occurrence or the consummation of the Fundamental Transaction and continuing for 90 days, an amount of cash equal to the value of the remaining unexercised portion of the warrant as determined in accordance with the Black-Scholes option pricing model on the date of such Fundamental Transaction. As a result of these terms, in accordance with the guidance contained in ASC Topic 815-40, we have determined that the warrants issued in connection with this financing transaction must be recorded as derivative liabilities upon issuance and marked to market on a quarterly basis in our condensed consolidated statements of operations. Upon the issuance of these warrants, the fair value of approximately $4.4 million was recorded as derivative financial instruments liability-warrants. “Refer to Note 6”. The fair value of these liability classified warrants was estimated using the Black-Scholes option pricing model. Other than for the fair value of common stock, we developed our own assumptions for use in the Black-Scholes option pricing model that do not have observable inputs or available market data to support the fair value. This method of valuation involves using inputs such as the fair value of our common stock, our stock price volatility (stock price volatility of comparable companies prior to 2020), the contractual term of the warrants, risk free interest rates and dividend yields. Due to the nature of these inputs, the valuation of the warrants is considered a Level 3 measurement. The following assumptions were used to measure the warrants at issuance and to remeasure the liability as of September 30, 2020 and December 31, 2019: September 30, December 31, 2020 2019 Price of Hepion common stock $ 3.11 $ 5.36 Expected warrant term (years) 0.03 years 0.78 years Risk-free interest rate 0.22 % 1.66 % Expected volatility 136 % 72 % Dividend yield — — On April 4, 2016, we closed a public offering of 8,803 shares of our common stock and warrants to purchase up to 4,401 shares of common stock, at a fixed combined price to the public of $795.20 under our prior shelf registration statement on Form S-3. The warrants were immediately exercisable and will be exercisable for a period of five years from the date of issuance at an exercise price of $952.00 per share. The gross proceeds to us were $7.0 million, before deducting the underwriting discount and other offering expenses payable by us of approximately $0.7 million. If the warrants were exercised in full, we would receive additional proceeds of approximately $4.2 million. If we consummate any merger, consolidation, sale or other reorganization event in which our common stock is converted into or exchanged for securities, cash or other property (“Fundamental Transaction”), then we shall pay at the holder’s option, exercisable at any time commencing on the occurrence or the consummation of the Fundamental Transaction and continuing for 90 days, an amount of cash equal to the value of the remaining unexercised portion of the warrant as determined in accordance with the Black-Scholes option pricing model on the date of such Fundamental Transaction. As a result of these terms, in accordance with the guidance contained in ASC Topic 815-40, we have determined that the warrants issued in connection with this financing transaction must be recorded as derivative liabilities upon issuance and marked to market on a quarterly basis in our condensed consolidated statement of operations. Upon the issuance of these warrants, the fair value of approximately $1.5 million was recorded as derivative financial instruments liability-warrants. “Refer to Note 6”. The fair value of these liability classified warrants was estimated using the Black-Scholes option pricing model. Other than for the fair value of common stock, we developed our own assumptions for use in the Black-Scholes option pricing model that do not have observable inputs or available market data to support the fair value. This method of valuation involves using inputs such as the fair value of our common stock, our stock price volatility (stock price volatility of comparable companies prior to 2020), the contractual term of the warrants, risk free interest rates and dividend yields. Due to the nature of these inputs, the valuation of the warrants is considered a Level 3 measurement. The following assumptions were used to measure the warrants at issuance and to remeasure the liability as of September 30, 2020 and December 31, 2019: September 30, December 31, 2020 2019 Price of Hepion common stock $ 3.11 $ 5.36 Expected warrant term (years) 0.51 years 1.26 years Risk-free interest rate 0.22 % 1.66 % Expected volatility 126 % 75 % Dividend yield — — On April 25, 2017, we closed a public offering of 21,429 shares of our common stock and warrants to purchase up to 10,714 shares of common stock, at a fixed combined price to the public of $560.00 under our prior shelf registration statement on Form S-3. The warrants are immediately exercisable and will be exercisable for a period of five years from the date of issuance at an exercise price of $700.00 per share. The gross proceeds to us were $12.0 million, before deducting the underwriting discount and other offering expenses payable by us of approximately $0.5 million. If the warrants were exercised in full, we would receive additional proceeds of approximately $7.5 million. If we consummate any merger, consolidation, sale or other reorganization event in which our common stock is converted into or exchanged for securities, cash or other property (“Fundamental Transaction”), then we shall pay at the holder’s option, exercisable at any time commencing on the occurrence or the consummation of the Fundamental Transaction and continuing for 90 days, an amount of cash equal to the value of the remaining unexercised portion of the warrant as determined in accordance with the Black-Scholes option pricing model on the date of such Fundamental Transaction. As a result of these terms, in accordance with the guidance contained in ASC Topic 815-40, we have determined that the warrants issued in connection with this financing transaction must be recorded as derivative liabilities upon issuance and marked to market on a quarterly basis in our condensed consolidated statement of operations and comprehensive loss. Upon the issuance of these warrants, the fair value of approximately $4.0 million was recorded as derivative financial instruments liability-warrants. “Refer to Note 6”. The fair value of these liability classified warrants were estimated using the Black-Scholes option pricing model. Other than for the fair value of common stock, we developed our own assumptions for use in the Black-Scholes option pricing model that do not have observable inputs or available market data to support the fair value. This method of valuation involves using inputs such as the fair value of our common stock, our stock price volatility (stock price volatility of comparable companies prior to 2020), the contractual term of the warrants, risk free interest rates and dividend yields. Due to the nature of these inputs, the valuation of the warrants is considered a Level 3 measurement. The following assumptions were used to measure the warrants at issuance and to remeasure the liability as of September 30, 2020 and December 31, 2019: September 30, December 31, 2020 2019 Price of Hepion common stock $ 3.11 $ 5.36 Expected warrant term (years) 1.56 years 2.31 years Risk-free interest rate 0.22 % 1.66 % Expected volatility 116 % 69 % Dividend yield — — The warrants, issued in connection with the July 2018 Rights Offering are deemed to be derivative instruments since if we do not maintain an effective registration statement, we are obligated to deliver registered shares upon exercise and settlement of the warrant because there are further registration and prospectus delivery requirements that are outside of our control. Therefore, the fair value of the warrants was determined using the Black-Scholes option pricing model, deemed to be an appropriate model due to the terms of the warrants issued, including a fixed term and exercise price. The fair value of these liability classified warrants were estimated using the Black-Scholes option pricing model. Other than for the fair value of common stock, we developed our own assumptions for use in the Black-Scholes option pricing model that do not have observable inputs or available market data to support the fair value. This method of valuation involves using inputs such as the fair value of our common stock, our stock price volatility (stock price volatility of comparable companies prior to 2020), the contractual term of the warrants, risk free interest rates and dividend yields. Due to the nature of these inputs, the valuation of the warrants is considered a Level 3 measurement. The following assumptions were used to measure the warrants at issuance and to remeasure the liability as of September 30, 2020 and December 31, 2019: September 30, December 31, 2020 2019 Price of Hepion common stock $ 3.11 $ 5.36 Expected warrant term (years) 2.75 years 3.50 years Risk-free interest rate 0.22 % 1.66 % Expected volatility 118 % 65 % Dividend yield — — The following table sets forth the components of changes in our derivative financial instruments liability balance for the nine months ended September 30, 2020: Number of Derivative Warrants Instrument Date Description Outstanding Liability December 31, 2019 Balance of derivative financial instruments liability 107,998 $ 5,623 Change in fair value of warrants for the nine months ended September 30, 2020 — 25,208 September 30, 2020 Balance of derivative financial instruments liability 107,998 $ 30,831 Common Stock Offering On February 12, 2020, we entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with B. Riley FBR, Inc., as agent (“B. Riley FBR”), pursuant to which we may offer and sell, from time to time, through B. Riley FBR, shares of our common stock, par value $0.0001 per share (the “Common Stock”), having an aggregate offering price of up to $7,000,000 (the “Shares”). The offer and sale of the Shares will be made pursuant to a shelf registration statement on Form S-3 and the related prospectus (File No. 333-229534) filed by us with the Securities and Exchange Commission (the “SEC”) on February 6, 2019, as amended on February 13, 2019, and declared effective by the SEC on February 19, 2019, as supplemented by a prospectus supplement dated February 12, 2020 and filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended (the “Securities Act”). Also, on March 27, 2020, we filed a prospectus supplement to the Form S-3 (File No. 333-229534) pursuant to which we may offer and sell an additional $4.6 million. As of September 30, 2020, under the Sales Agreement we sold 5,262,806 shares of our common stock resulting in net proceeds of $11.2 million from the “at the market offerings”. Pursuant to the Sales Agreement, B. Riley FBR may sell the Shares by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415 of the Securities Act, including sales made by means of ordinary brokers’ transactions, including on The Nasdaq Capital Market, at market prices or as otherwise agreed with B. Riley FBR. B. Riley FBR will use commercially reasonable efforts consistent with its normal trading and sales practices to sell the Shares from time to time, based upon instructions from us, including any price or size limits or other customary parameters or conditions we may impose.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
Fair Value Measurements
Fair Value Measurements	6. Fair Value Measurements The following table presents our liabilities that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy at September 30, 2020 and December 31, 2019. Quoted Prices in Significant Active Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs Description Fair value (Level 1) (Level 2) (Level 3) As of September 30, 2020: Contingent consideration $ 2,560,000 $ — $ — $ 2,560,000 Derivative liabilities related to warrants $ 30,831 $ — $ — $ 30,831 As of December 31, 2019: Contingent consideration $ 2,430,000 $ — $ — $ 2,430,000 Derivative liabilities related to warrants $ 5,623 $ — $ — $ 5,623 The unrealized gains or losses on the derivative liabilities are recorded as a change in fair value of derivative liabilities- warrants in our condensed consolidated statement of operations. See Note 5 for a rollforward of the derivative liability for the nine months ended September 30, 2020. The financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. At each reporting period, we review the assets and liabilities that are subject to ASC 815-40. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs or instruments which trade infrequently and therefore have little or no price transparency are classified as Level 3. Contingent consideration was recorded for the acquisition of Ciclofilin Pharmaceuticals, Inc. (Ciclofilin) on June 10, 2016. The contingent consideration represented the acquisition date fair value of potential future payments, to be paid in cash and our stock, upon the achievement of certain milestones and was estimated based on a probability-weighted discounted cash flow model utilizing a discount rate of 6.5% and a stock price of $19.60. We completed the first segment of our Phase 1 clinical activities for CRV431 in October 2018 wherein we reached a major clinical milestone of positive data from a Phase I trial of CRV431 in humans. This achievement triggered the first milestone payment, as stated in the Merger Agreement for the acquisition of Ciclofilin and in the fourth quarter of 2018, we paid a related milestone payment of $1,000,000 and issued 1,439 shares of our common stock with a fair value of $55,398, representing 2.5% of our issued and outstanding common stock as of June, 2016, to the Ciclofilin shareholders. As of September 30, 2020, due to the uncertainty in the timing of the clinical development of the associated product candidate, the entire balance is classified as a non-current liability. The following table presents the change in fair value of the contingent consideration for the nine months ended September 30, 2020. Acquisition- related Contingent Consideration Liabilities: Balance at December 31, 2019 $ 2,430,000 Change in fair value recorded in earnings 130,000 Balance at September 30, 2020 $ 2,560,000

Indefinite-lived Intangible Ass

Indefinite-lived Intangible Assets and Goodwill	9 Months Ended
	Sep. 30, 2020
Indefinite-lived Intangible Assets and Goodwill
Indefinite-lived Intangible Assets and Goodwill	7. Indefinite-lived Intangible Assets and Goodwill IPR&D Our IPR&D asset consisted of the following at: Indefinite-lived Intangible Asset CRV431 balance at December 31, 2019 $ 3,190,000 Change during the nine months ended September 30, 2020 — CRV431 balance at September 30, 2020 $ 3,190,000 No impairment losses were recorded on IPR&D during the nine months ended September 30, 2020 and 2019. Goodwill The table below provides a roll-forward of our goodwill balance: Amount Goodwill balance at December 31, 2019 $ 1,870,924 Changes during the nine months ended September 30, 2020 — Goodwill balance at September 30, 2020 $ 1,870,924 No impairment losses were recorded to goodwill during the nine months ended September 30, 2020 and 2019.

Accrued Liabilities

Accrued Liabilities	9 Months Ended
	Sep. 30, 2020
Accrued Liabilities
Accrued Liabilities	8. Accrued Liabilities Accrued expenses consisted of the following: September 30, December 31, 2020 2019 Payroll and related costs $ 540,510 $ 346,244 Research and development 1,293,875 12,075 Legal fees 26,856 2,354 Accrued taxes 522,075 431,923 Other 817 58,606 Total accrued expenses $ 2,384,133 $ 851,202

Accounting for Share-Based Paym

Accounting for Share-Based Payments	9 Months Ended
	Sep. 30, 2020
Accounting for Share-Based Payments
Accounting for Share-Based Payments	9. Accounting for Share‑Based Payments On June 3, 2013, we adopted the 2013 Equity Incentive Plan (the “Plan”). Stock options granted under the Plan typically will vest after three years of continuous service from the grant date and will have a contractual term of ten years. At our annual meeting of stockholders on July 30, 2020, we received shareholder approval to increase the number of shares issuable under the Plan to 2,500,000. As of September 30, 2020, we had 35,229 shares available for grant. We classify stock-based compensation expense in our condensed consolidated statement of operations in the same way the award recipient's payroll costs are classified or in which the award recipients' service payments are classified. We recorded stock-based compensation expense as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 General and administrative $ 750,168 $ 10,369 $ 1,066,796 $ 31,107 Research and development 240,509 6,760 326,738 20,661 Total stock-based compensation expense $ 990,677 $ 17,129 $ 1,393,534 $ 51,768 A summary of stock option activity under the Plan is presented as follows: Weighted Weighted Average Average Remaining Number of Exercise Price Exercise Price Intrinsic Contractual Options Per Share Per Share Value Term Balance outstanding, December 31, 2019 41,271 $ 3.24 - $ 2,452.80 $ 194.83 $ 43,182 years Granted 2,423,500 $ 1.63 - $ 3.72 $ 2.50 $ 2,071,270 Forfeited — $ — - $ — $ — $ — Cancelled — $ — - $ — $ — $ — Balance outstanding, September 30, 2020 2,464,771 $ 1.63 - $ 2,452.80 $ 5.96 $ 2,042,540 years Vested awards and those expected to vest at September 30, 2020 2,367,095 $ 3.24 - $ 2,452.80 $ 6.10 $ 1,965,890 years Vested and exercisable at September 30, 2020 23,940 $ 3.24 - $ 2,452.80 $ 357.31 $ — years There were 20,639 options granted to employees during the nine months ended September 30, 2019. The total fair value of the shares vested during the nine months ended September 30, 2019 was de minimis. The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of our common stock for those stock options that had exercise prices lower than the fair value of our common stock. As of September 30, 2020, the unrecognized compensation cost related to non-vested stock options outstanding, net of expected forfeitures, was $7.0 million to be recognized over a weighted-average remaining vesting period of approximately 2.3 years. The following weighted-average assumptions are used in the Black-Scholes valuation model to estimate fair value of stock option awards when granted to employees. Nine Months Ended September 30, 2020 2019 Stock price $ $ Risk-free interest rate % % Dividend yield — — Expected volatility % % Expected term (in years) Risk‑free interest rate —Based on the daily yield curve rates for U.S. Treasury obligations with maturities which correspond to the expected term of our stock options. Dividend yield — We have not paid any dividends on our common stock since inception and do not anticipate paying dividends on our common stock in the foreseeable future. Expected volatility —We base expected volatility on the trading price of our common stock. Expected term —The expected option term represents the period that stock‑based awards are expected to be outstanding based on the simplified method provided in SAB No. 107, which SAB No. 107, options are considered to be “plain vanilla” if they have the following basic characteristics: (i) granted “at‑the‑money”; (ii) exercisability is conditioned upon service through the vesting date; (iii) termination of service prior to vesting results in forfeiture; (iv) limited exercise period following termination of service; and (v) options are non‑transferable and non‑hedgeable. In December 2007, the SEC issued SAB No. 110, Share‑Based Payment , (“SAB No. 110”). SAB No. 110 was effective January 1, 2008 and expresses the views of the Staff of the SEC with respect to extending the use of the simplified method, as discussed in SAB No. 107, in developing an estimate of the expected term of “plain vanilla” share options in accordance with ASC 718. We will use the simplified method until we have the historical data necessary to provide a reasonable estimate of expected life in accordance with SAB No. 107, as amended by SAB No. 110. For the expected term, we have “plain‑vanilla” stock options, and therefore used a simple average of the vesting period and the contractual term for options granted as permitted by SAB No. 107. Forfeitures —ASC 718 allows for the election of forfeitures to be estimated at the time of grant and revised if necessary, in subsequent periods if actual forfeitures differ from those estimates. At April 1, 2016, we determined that we had sufficient history of issuing stock options and decreased our estimated forfeiture rate from 10%, which was based on the historical experience of our former parent, to 3%, which is our actual historical forfeiture rate. The forfeiture rate was 10% through the end of the 3rd fiscal quarter ended March 31, 2016 and was the adjusted to 3% through the end of the fiscal year June 30, 2016 based on the aforementioned historical analysis. The forfeiture rate was 3% for the nine months ended September 30, 2020 and 2019. We will continue to analyze the forfeiture rate on at least an annual basis or when there are any identified triggers that would justify immediate review.

Loss per Share

Loss per Share	9 Months Ended
	Sep. 30, 2020
Loss per Share
Loss per Share	10. Loss per Share Basic and diluted net loss per common share was determined by dividing net loss applicable to common stockholders by the weighted-average common shares outstanding during the period. In addition, the net loss attributable to common stockholders’ is adjusted for the preferred stock deemed dividends related accretion of beneficial conversion feature and other discount on this instrument for the periods in which the preferred stock is outstanding. The following table sets forth the computation of basic and diluted net loss per share for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, Basic and diluted net (loss) income per common share 2020 2019 2020 2019 Numerator: Net loss $ (6,231,542) $ (1,819,683) $ (15,398,239) $ (4,824,292) Preferred stock deemed dividend (5,287) (8,460) (5,287) (5,444,826) Net loss attributable to common stockholders $ (6,236,829) $ (1,828,143) $ (15,403,526) $ (10,269,118) Denominator: Weighted average common shares outstanding 9,025,139 3,453,628 7,294,790 1,532,927 Net loss per share of common stock—basic and diluted $ (0.69) $ (0.53) $ (2.11) $ (6.70) The following outstanding securities at September 30, 2020 and 2019 have been excluded from the computation of basic and diluted weighted shares outstanding, as they would have been anti-dilutive: Nine Months Ended September 30, 2020 2019 Common shares issuable upon conversion of Series A preferred stock 3,184 3,184 Common shares issuable upon conversion of Series C preferred stock 16,747 16,987 Stock options 2,464,771 9,010 Warrants – liability classified 107,998 107,997 Warrants – equity classified 2,428,568 2,733,076 Total 5,021,268 2,870,254 The liability and equity classified warrants disclosed above have been excluded from the computation of basic and diluted earnings per share because the exercise price of the warrants exceeds the average market price of our common stock for the period they were outstanding.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies
Commitments and Contingencies	11. Commitments and Contingencies Contractual Obligations In August 2014, we entered into a lease for corporate office space in Edison, New Jersey. In December 2017, we entered an amendment to the lease for corporate office space in Edison, New Jersey expanding the office footprint and extending the lease for an approximate 5-year period. In May 2018, we entered into a 3-year lease for office equipment to be used at our corporate office space in Edison, New Jersey. In October 2019, we entered into a 3-year lease for office and research laboratory space in Edmonton, Canada. Prior to signing this lease, the space was previously on a month to month basis. Legal Proceedings We are involved in legal proceedings of various types. Significant judgment is required to determine both the likelihood and the estimated amount of a loss related to such matters. Additionally, while any litigation contains an element of uncertainty, we have at this time no reason to believe that the outcome of such proceedings or claims will have a material adverse effect on our condensed consolidated financial condition or results of operations. Leases We account for leases in accordance with ASC Topic 842, Leases , (“ASC 842”). We determine if an arrangement is a lease at contract inception. A lease exists when a contract conveys to the customer the right to control the use of identified property or equipment for a period in exchange for consideration. The definition of a lease embodies two conditions: (1) there is an identified asset in the contract that is land or a depreciable asset (i.e., property and equipment), and (2) the customer has the right to control the use of the identified asset. Operating leases where we are the lessee are included under the caption “Right of Use Assets” on our condensed consolidated balance sheets. The lease liabilities are initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. Key estimates and judgments include how we determine (1) the discount rate used to discount the unpaid lease payments to present value, (2) lease term and (3) lease payments. The Right-Of-Use (“ROU”) asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We adopted ASC 842 in the first quarter of 2019 using an alternative modified retrospective approach, in which prior periods will not be restated. As a result of the adoption, as of January 1, 2019, we recognized an operating lease liability of $0.8 million based on the present value of the minimum rental payments of the leases and a corresponding ROU asset of $0.8 million. As of September 30, 2020, the ROU assets were $0.6 million, the current lease liabilities were $0.3 million, and the non-current lease liabilities were $0.4 million. The discount rate used to account for our operating leases under ASC 842 is our estimated incremental borrowing rate of 6.5%. Rent expense for the three months ended September 30, 2020 and 2019 was $0.1 million and $46,346, respectively, and $0.2 million and $0.2 million for the nine months ended September 30, 2020 and 2019, respectively. The weighted average remaining term of our noncancelable operating leases is 2.38 years. Future minimum rental payments under our noncancelable operating leases at September 30, 2020 is as follows: 2020 $ 71,016 2021 285,932 2022 270,313 2023 53,902 2024 and thereafter — Total 681,163 Present value adjustment (47,397) Lease liability at September 30, 2020 $ 633,766 Employment Agreements We have employment agreements with certain employees which require the funding of a specific level of payments, if certain events, such as a change in control, termination without cause or retirement, occur.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Summary of Significant Accounting Policies
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of expenses during the reporting period. Changes in estimates and assumptions are reflected in reported results in the period in which they become known. Actual results could differ from those estimates. Our significant accounting policies are disclosed in the audited consolidated financial statements for the year ended December 31, 2019 included in our Form 10-K. Since the date of such consolidated financial statements, there have been no changes to our significant accounting policies.
Cash	Cash As of September 30, 2020 and December 31, 2019, cash was $13.7 million and $13.9 million, respectively, consisting of checking accounts held at U.S. and Canadian commercial banks. Cash is maintained at financial institutions and, at times, balances may exceed federally insured limits. We have never experienced losses related to these balances.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement (“ASC 820”), establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and our own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of us. Unobservable inputs are inputs that reflect our assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC Topic 820 establishes a three-tier fair value hierarchy that distinguishes among the following: · Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that we can access. · Level 2—Valuations based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and models for which all significant inputs are observable, either directly or indirectly. · Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by us in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Financial instruments consist of cash and accounts payable, long-term debt, derivative instruments — warrants and contingent consideration. These financial instruments are stated at their respective historical carrying amounts, which approximate fair value due to their short-term nature, except for derivative instruments — warrants and contingent consideration, which were marked to market at the end of each reporting period. See Note 5 for additional information of the fair value of the derivative liabilities. We recorded contingent consideration from the 2016 acquisition of Ciclofilin, which is required to be carried at fair value. See Note 6 for additional information on the fair value of the contingent consideration.
Derivative Financial Instruments	Derivative Financial Instruments We have issued common stock warrants in connection with the execution of certain equity financings. The fair value of the warrants, which were deemed to be derivative instruments based on certain contingent put features, was recorded as a derivative liability under the provisions of ASC Topic 815 Derivatives and Hedging (“ASC 815”) upon issuance. Subsequently, the liability is adjusted to fair value as of the end of each reporting period and the changes in the fair value of derivative liabilities are recorded in the statements of operations under the caption “Change in fair value of derivative financial instruments—warrants.” See Note 5 for additional information. The fair value of the warrants, issued in connection with the October 2015, April 2016, and April 2017 common stock offerings were deemed to be derivative instruments due to certain contingent put features, was determined using the Black-Scholes option pricing model, deemed to be an appropriate model due to the terms of the warrants issued, including a fixed term and exercise price. The warrants, issued in connection with the July 2018 Rights Offering (See Note 5) are deemed to be derivative instruments since if we do not maintain an effective registration statement, we are obligated to deliver registered shares upon exercise and settlement of the warrant because there are further registration and prospectus delivery requirements that are outside our control. Therefore, the fair value of the warrants was determined using the Black-Scholes option pricing model, deemed to be an appropriate model due to the terms of the warrants issued, including a fixed term and exercise price. The fair value of warrants was affected by changes in inputs to the Black-Scholes option pricing model including our stock price, expected stock price volatility, the contractual term, and the risk-free interest rate. This model uses Level 3 inputs, including stock price volatility, in the fair value hierarchy established by ASC 820 Fair Value Measurement. At September 30, 2020 and December 31, 2019, the fair value of all warrants was $30,831 and $5,623, respectively, which are classified as a long-term derivative liability on our condensed consolidated balance sheets.
Property, equipment and depreciation	Property, equipment and depreciation As of September 30, 2020 and December 31, 2019, we had $45,476 and $57,166, respectively, of property and equipment, consisting primarily of lab equipment, computer equipment, furniture and fixtures. Expenditures for additions, renewals and improvements will be capitalized at cost. Depreciation will generally be computed on a straight‑line method based on the estimated useful lives of the related assets. The estimated useful lives of the depreciable assets are 3 to 5 years. Leasehold improvements are amortized using the straight-line method over their estimated useful lives, or the remaining term of the lease, whichever is shorter. Depreciation expense for the three months ended September 30, 2020 and 2019 was $7,204 and $7,268, respectively, and was $20,933 and $20,196 for the nine months ended September 30, 2020 and 2019, respectively. Expenditures for repairs and maintenance are charged to operations as incurred. We will periodically evaluate whether current events or circumstances indicate that the carrying value of our depreciable assets may not be recoverable. There were no adjustments to the carrying value of property and equipment at September 30, 2020 or December 31, 2019.
Goodwill and In-Process Research & Development	Goodwill and In-Process Research & Development In accordance with ASC Topic 350, Intangibles — Goodwill and Other (“ASC Topic 350”), goodwill and acquired IPR&D are determined to have indefinite lives and, therefore, are not amortized. Instead, they are tested for impairment annually, in our fourth quarter, and between annual tests if we become aware of an event or a change in circumstances that would indicate the carrying value may be impaired. In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment, which eliminates Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. We adopted ASU 2017-04 on January 1, 2020, and the adoption of this standard did not have a material effect on our condensed consolidated financial statements. Goodwill relates to amounts that arose in connection with the acquisition of Ciclofilin. Goodwill represents the excess of the purchase price over the fair value of the net assets acquired when accounted for using the acquisition method of accounting for business combinations. As a result of the COVID-19 pandemic, we performed a qualitative assessment of goodwill and determined that it was not more likely than not that the fair value of our reporting was less than its carrying value. There was no impairment of goodwill for the nine months ended September 30, 2020 and 2019. IPR&D acquired in a business combination is capitalized as indefinite-lived assets on our condensed consolidated balance sheets at the acquisition-date fair value. Once the project is completed, the carrying value of the IPR&D is reclassified to other intangible assets, net and is amortized over the estimated useful life of the asset. Post-acquisition research and development expenses related to the IPR&D projects are expensed as incurred. The projected discounted cash flow models used to estimate the fair values of our IPR&D assets, acquired in connection with the Ciclofilin acquisition, reflect significant assumptions regarding the estimates a market participant would make in order to evaluate a drug development asset, including: (i) probability of successfully completing clinical trials and obtaining regulatory approval; (ii) market size, market growth projections, and market share; (iii) estimates regarding the timing of and the expected costs to advance clinical programs to commercialization; (iv) estimates of future cash flows from potential product sales; and (v) a discount rate. These assumptions are based on significant inputs not observable in the market and thus represent Level 3 measurements within the fair value hierarchy. The use of different inputs and assumptions could increase or decrease our estimated discounted future cash flows, the resulting estimated fair values and the amounts of related impairments, if any. If IPR&D becomes impaired or is abandoned, the carrying value of the IPR&D is written down to the revised fair value with the related impairment charge recognized in the period in which the impairment occurs. If the carrying value of the asset becomes impaired as the result of unfavorable data from any ongoing or future clinical trial, changes in assumptions that negatively impact projected cash flows, or because of any other information regarding the prospects of successfully developing or commercializing our programs, we could incur significant charges in the period in which the impairment occurs. As a result of the COVID-19 pandemic, we performed a qualitative assessment of IPR&D and determined that it was not more likely than not that the asset was impaired. There was no impairment of IPR&D for the nine months ended September 30, 2020 and 2019.
Income Taxes	Income Taxes We account for income taxes under the asset and liability method. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as for operating loss and tax credit carryforwards. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we expect to recover or settle those temporary differences. We recognize the effect of a change in tax rates on deferred tax assets and liabilities in the results of operations in the period that includes the enactment date. We reduce the measurement of a deferred tax asset, if necessary, by a valuation allowance if it is more likely than not that we will not realize some or all of the deferred tax asset. We account for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon technical merits, it is “more-likely-than-not” that the position will be sustained upon examination. Potential interest and penalties associated with unrecognized tax positions are recognized in income tax expense. In April 2019, we transferred New Jersey state net operating loss tax credits and received approximately $1.0 million in connection with the sale of the state net operating losses to a third party recorded as an income tax benefit in the consolidated statement of operations. We received approval for the sale of net operating losses through participation in the New Jersey Technology Business Tax Certificate Transfer (NOL) Program. We continue to maintain a full valuation allowance for our U.S net deferred tax assets. The current period income tax expense is related to our foreign operations.
Contingencies	Contingencies In the normal course of business, we are subject to loss contingencies, such as legal proceedings and claims arising out of our business that cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, product and environmental liability, and tax matters. In accordance with ASC Topic 450, Accounting for Contingencies, (“ASC 450”), we record accruals for such loss contingencies when it is probable that a liability will be incurred, and the amount of loss can be reasonably estimated. In accordance with this guidance, we do not recognize gain contingencies until realized.
Research and Development	Research and Development Research and development costs, which include expenditures in connection with an in-house research and development laboratory, salaries and staff costs, application and filing for regulatory approval of proposed products, purchased in-process research and development, license costs, regulatory and scientific consulting fees, as well as contract research, insurance and FDA consultants, are accounted for in accordance with ASC Topic 730, Research and Development, (“ASC 730”). Also, as prescribed by this guidance, patent filing and maintenance expenses are considered legal in nature and therefore classified as general and administrative expense, if any. We do not currently have any commercial biopharmaceutical products and do not expect to have such for several years, if at all. Accordingly, our research and development costs are expensed as incurred. While certain of our research and development costs may have future benefits, our policy of expensing all research and development expenditures is predicated on the fact that we have no history of successful commercialization of product candidates to base any estimate of the number of future periods that would be benefited. Also as prescribed by ASC 730, non-refundable advance payments for goods or services that will be used or rendered for future research and development activities should be deferred and capitalized. As the related goods are delivered or the services are performed, or when the goods or services are no longer expected to be provided, the deferred amounts would be recognized as an expense. At September 30, 2020 and December 31, 2019, we had prepaid research and development costs of $0.5 million and $0.4 million, respectively.
Share-based payments	Share-based payments ASC Topic 718 “Compensation—Stock Compensation” (“ASC 718”) requires companies to measure the cost of employee and non-employee services received in exchange for the award of equity instruments based on the estimated fair value of the award at the date of grant. The expense is to be recognized over the period during which an employee is required to provide services in exchange for the award. Generally, we issue stock options with only service-based vesting conditions and record the expense for awards using the straight-line method. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The estimated expected stock volatility is based on the historical volatility of our own traded stock price. The expected term of stock options has been determined utilizing the “simplified” method for awards that qualify as “plain-vanilla” options. The expected term of stock options granted to non-employees is equal to the contractual term of the option award. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that we have never paid cash dividends and do not expect to pay any cash dividends in the foreseeable future.
Foreign Exchange	Foreign Exchange The functional currency of Hepion Pharmaceuticals, Inc. and ContraVir Research Inc. is the U.S. dollar. The functional currency of Hepion Research Corp. is the Canadian dollar. Our reporting currency is the U.S. dollar. The assets and liabilities of Ciclofilin are translated into U.S. dollars using period-end exchange rates; income and expenses are translated using the average exchange rates for the reporting period. Unrealized foreign currency translation adjustments are deferred in accumulated other comprehensive loss, a separate component of shareholders’ equity. The amount of currency translation adjustment was immaterial at September 30, 2020 and December 31, 2019. Transactions in foreign currencies are remeasured into the functional currency of the relevant subsidiaries at the exchange rate in effect at the date of the transaction. Any monetary assets and liabilities arising from these transactions are translated into the functional currency at exchange rates in effect at the balance sheet date or on settlement. Resulting gains and losses are recorded in other foreign exchange (gain) loss within the consolidated statements of operations. The impact of foreign exchange gains (losses) was immaterial at September 30, 2020 and December 31, 2019.
Segment Information	Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker views our operations and manages the business in one segment.
Net loss per share	Net loss per share Basic and diluted net loss per share is presented in conformity with ASC Topic 260, Earnings per Share, (“ASC 260”) for all periods presented. In accordance with this guidance, basic and diluted net loss per common share was determined by dividing net loss attributable to common stockholders by the weighted-average common shares outstanding during the period.

Basis of Presentation and Goi_2

Basis of Presentation and Going Concern (Tables)	9 Months Ended
	Sep. 30, 2020
Basis of Presentation and Going Concern
Schedule of amounts as reported, net correction adjustments, and corrected amounts for items affected by the corrections	The following tables present the amounts as reported, net correction adjustments, and corrected amounts for items affected by the corrections for the year ended December 31, 2019: Year ended December 31, 2019 As Net To be Accumulated deficit - beginning of year $ (76,463,932) $ (250,255) $ (76,714,187) Total stockholders' equity - beginning of year $ 1,975,051 $ (250,255) $ 1,724,796 Other assets $ 127,939 $ 178,941 $ 306,880 Total assets $ 20,432,607 $ 178,941 $ 20,611,548 Accrued expenses $ 493,636 $ 357,566 $ 851,202 Total current liabilities $ 1,251,889 $ 357,566 $ 1,609,455 Deferred tax liability $ 18,752 $ 390,270 $ 409,022 Total liabilities $ 4,247,015 $ 747,836 $ 4,994,851 Accumulated deficit $ (83,182,630) $ (568,895) $ (83,751,525) Total stockholders' equity $ 16,185,592 $ (568,895) $ 15,616,697 Total liabilities and stockholders' equity $ 20,432,607 $ 178,941 $ 20,611,548 Income taxes $ 1,227,322 $ (318,640) $ 908,682 Net loss $ (6,718,698) $ (318,640) $ (7,037,338) Net loss attributable to common shareholders $ (12,161,645) $ (318,640) $ (12,480,285) Net loss per common share - basic and diluted $ (5.95) $ — $ (6.11) The following tables present the amounts as reported, net correction adjustments, and corrected amounts for note disclosures affected by the corrections for the year ended December 31, 2019: Year ended December 31, 2019 As Net To be Federal net operating loss (“NOL”) $ 16,650,007 $ 162,619 $ 16,812,626 State NOL 2,401,609 37,406 2,439,015 Research and development credits 1,493,666 (143,361) 1,350,305 Lease liability 242,234 — 242,234 Stock compensation & other 1,213,339 (324,172) 889,167 Deferred tax asset valuation allowance (20,823,235) (122,762) (20,945,997) Total deferred tax asset 1,177,620 (390,270) 787,350 Deferred tax liability (In-Process R&D) (957,000) — (957,000) Right-of-use asset (239,372) — (239,372) Total deferred tax liability (1,196,372) — (1,196,372) Net deferred tax liability $ (18,752) $ (390,270) $ (409,022)

Stockholder_s Equity and Deriva

Stockholder’s Equity and Derivative Liability - Warrants (Tables)	9 Months Ended
	Sep. 30, 2020
Schedule of changes in derivative financial instruments liability balance	Number of Derivative Warrants Instrument Date Description Outstanding Liability December 31, 2019 Balance of derivative financial instruments liability 107,998 $ 5,623 Change in fair value of warrants for the nine months ended September 30, 2020 — 25,208 September 30, 2020 Balance of derivative financial instruments liability 107,998 $ 30,831
October 13 2015
Schedule of assumptions used to measure the warrants to remeasure liability	September 30, December 31, 2020 2019 Price of Hepion common stock $ 3.11 $ 5.36 Expected warrant term (years) 0.03 years 0.78 years Risk-free interest rate 0.22 % 1.66 % Expected volatility 136 % 72 % Dividend yield — —
April 4 2016
Schedule of assumptions used to measure the warrants to remeasure liability	September 30, December 31, 2020 2019 Price of Hepion common stock $ 3.11 $ 5.36 Expected warrant term (years) 0.51 years 1.26 years Risk-free interest rate 0.22 % 1.66 % Expected volatility 126 % 75 % Dividend yield — —
April 25 2017
Schedule of assumptions used to measure the warrants to remeasure liability	September 30, December 31, 2020 2019 Price of Hepion common stock $ 3.11 $ 5.36 Expected warrant term (years) 1.56 years 2.31 years Risk-free interest rate 0.22 % 1.66 % Expected volatility 116 % 69 % Dividend yield — —
July 3 2018
Schedule of assumptions used to measure the warrants to remeasure liability	September 30, December 31, 2020 2019 Price of Hepion common stock $ 3.11 $ 5.36 Expected warrant term (years) 2.75 years 3.50 years Risk-free interest rate 0.22 % 1.66 % Expected volatility 118 % 65 % Dividend yield — —

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value Measurements
Schedule of liabilities measured and recognized at fair value on a recurring basis	Quoted Prices in Significant Active Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs Description Fair value (Level 1) (Level 2) (Level 3) As of September 30, 2020: Contingent consideration $ 2,560,000 $ — $ — $ 2,560,000 Derivative liabilities related to warrants $ 30,831 $ — $ — $ 30,831 As of December 31, 2019: Contingent consideration $ 2,430,000 $ — $ — $ 2,430,000 Derivative liabilities related to warrants $ 5,623 $ — $ — $ 5,623
Schedule of changes in fair value of contingent consideration	The following table presents the change in fair value of the contingent consideration for the nine months ended September 30, 2020. Acquisition- related Contingent Consideration Liabilities: Balance at December 31, 2019 $ 2,430,000 Change in fair value recorded in earnings 130,000 Balance at September 30, 2020 $ 2,560,000

Indefinite-lived Intangible A_2

Indefinite-lived Intangible Assets and Goodwill (Tables)	9 Months Ended
	Sep. 30, 2020
Indefinite-lived Intangible Assets and Goodwill
Schedule of IPR&D asset	Indefinite-lived Intangible Asset CRV431 balance at December 31, 2019 $ 3,190,000 Change during the nine months ended September 30, 2020 — CRV431 balance at September 30, 2020 $ 3,190,000
Schedule of roll-forward of goodwill balance	Amount Goodwill balance at December 31, 2019 $ 1,870,924 Changes during the nine months ended September 30, 2020 — Goodwill balance at September 30, 2020 $ 1,870,924

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2020
Accrued Liabilities
Schedule of accrued liabilities	September 30, December 31, 2020 2019 Payroll and related costs $ 540,510 $ 346,244 Research and development 1,293,875 12,075 Legal fees 26,856 2,354 Accrued taxes 522,075 431,923 Other 817 58,606 Total accrued expenses $ 2,384,133 $ 851,202

Accounting for Share-Based Pa_2

Accounting for Share-Based Payments (Tables)	9 Months Ended
	Sep. 30, 2020
Accounting for Share-Based Payments
Schedule of stock based compensation expense	Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 General and administrative $ 750,168 $ 10,369 $ 1,066,796 $ 31,107 Research and development 240,509 6,760 326,738 20,661 Total stock-based compensation expense $ 990,677 $ 17,129 $ 1,393,534 $ 51,768
Summary of stock option activity	Weighted Weighted Average Average Remaining Number of Exercise Price Exercise Price Intrinsic Contractual Options Per Share Per Share Value Term Balance outstanding, December 31, 2019 41,271 $ 3.24 - $ 2,452.80 $ 194.83 $ 43,182 years Granted 2,423,500 $ 1.63 - $ 3.72 $ 2.50 $ 2,071,270 Forfeited — $ — - $ — $ — $ — Cancelled — $ — - $ — $ — $ — Balance outstanding, September 30, 2020 2,464,771 $ 1.63 - $ 2,452.80 $ 5.96 $ 2,042,540 years Vested awards and those expected to vest at September 30, 2020 2,367,095 $ 3.24 - $ 2,452.80 $ 6.10 $ 1,965,890 years Vested and exercisable at September 30, 2020 23,940 $ 3.24 - $ 2,452.80 $ 357.31 $ — years
Schedule of weighted-average assumptions used to estimate fair value of stock option awards granted to employees	Nine Months Ended September 30, 2020 2019 Stock price $ $ Risk-free interest rate % % Dividend yield — — Expected volatility % % Expected term (in years)

Loss per Share (Tables)

Loss per Share (Tables)	9 Months Ended
	Sep. 30, 2020
Loss per Share
Schedule of computation of basic and diluted net loss per share	Three Months Ended Nine Months Ended September 30, September 30, Basic and diluted net (loss) income per common share 2020 2019 2020 2019 Numerator: Net loss $ (6,231,542) $ (1,819,683) $ (15,398,239) $ (4,824,292) Preferred stock deemed dividend (5,287) (8,460) (5,287) (5,444,826) Net loss attributable to common stockholders $ (6,236,829) $ (1,828,143) $ (15,403,526) $ (10,269,118) Denominator: Weighted average common shares outstanding 9,025,139 3,453,628 7,294,790 1,532,927 Net loss per share of common stock—basic and diluted $ (0.69) $ (0.53) $ (2.11) $ (6.70)
Schedule of outstanding securities excluded from the computation of basic and diluted weighted shares outstanding	Nine Months Ended September 30, 2020 2019 Common shares issuable upon conversion of Series A preferred stock 3,184 3,184 Common shares issuable upon conversion of Series C preferred stock 16,747 16,987 Stock options 2,464,771 9,010 Warrants – liability classified 107,998 107,997 Warrants – equity classified 2,428,568 2,733,076 Total 5,021,268 2,870,254

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies
Schedule of future minimum rental payments under the Company's noncancelable operating leases	2020 $ 71,016 2021 285,932 2022 270,313 2023 53,902 2024 and thereafter — Total 681,163 Present value adjustment (47,397) Lease liability at September 30, 2020 $ 633,766

Business Overview (Details)

Business Overview (Details)	Feb. 14, 2014CAD ($)	Oct. 31, 2018USD ($)shares	Jun. 30, 2016	Dec. 31, 2018USD ($)	Feb. 14, 2014USD ($)
Business Overview
Threshold milestone payment payable	$ 2,450,000
Merger Agreement, Upon Receipt of Phase II Positive Data
Business Overview
Number of shares to be issued | shares		4,317
Additional milestone payments payable		$ 3,000,000
Merger Agreement, Upon Initiation of Phase III Trial
Business Overview
Additional milestone payments payable		5,000,000
Merger Agreement, Upon Acceptance By FDA of New Drug
Business Overview
Additional milestone payments payable		8,000,000
CEO | CRV 431
Business Overview
First milestone payment		$ 274,000
Number of shares issued | shares		603
Petrus Wijngaard, Director of Company | CRV 431
Business Overview
First milestone payment		$ 2,805
Number of shares issued | shares		6
Ciclofilin
Business Overview
First milestone payment		$ 654,000		$ 1,000,000
Number of shares issued | shares		1,439
Issuance of common stock in conjunction with milestone payment		$ 55,398
Percentage of issued and outstanding		2.50%	2.50%
Percentage of proceeds from liquidity event	30.00%
Aurinia
Business Overview
First milestone payment		$ 346,000
Threshold milestone payment payable	$ 450,000
Offset payment, amount	$ 2,000,000
Royalty percentage	5.00%
Percentage of royalty on net sales	2.50%
Amount payable from the proceeds of liquidity event					$ 150,000
Threshold amount payable	$ 5,000,000

Basis of Presentation and Goi_3

Basis of Presentation and Going Concern - Items affected by corrections (Details) - USD ($)	3 Months Ended						9 Months Ended		12 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019		Dec. 31, 2018
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accumulated deficit	$ (99,149,764)						$ (99,149,764)		$ (83,751,525)	[1]	$ (76,714,187)
Total stockholders' equity	12,872,806	$ 17,723,183	$ 18,198,791	$ 15,976,335	$ 17,778,888	$ 394,792	12,872,806	$ 15,976,335	15,616,697	[1]	1,724,796
Other assets	290,604						290,604		306,880	[1]
Total assets	20,363,688						20,363,688		20,611,548	[1]
Accrued expenses	2,384,133						2,384,133		851,202	[1]
Total current liabilities	3,955,974						3,955,974		1,609,455	[1]
Deferred tax liability	409,022						409,022		409,022	[1]
Total liabilities	7,490,882						7,490,882		4,994,851	[1]
Total liabilities and stockholders' equity	20,363,688						20,363,688		20,611,548	[1]
Income taxes	62,044						(33,527)	961,014	908,682
Net loss	(6,231,542)	$ (4,940,080)	$ (4,226,617)	(1,819,683)	$ (1,020,899)	$ (1,983,711)	(15,398,239)	(4,824,292)	(7,037,338)
Net loss to common shareholders	$ (6,236,829)			$ (1,828,143)			$ (15,403,526)	$ (10,269,118)	$ (12,480,285)
Basic and diluted	$ (0.69)			$ (0.53)			$ (2.11)	$ (6.70)	$ (6.11)
As reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accumulated deficit									$ (83,182,630)		(76,463,932)
Total stockholders' equity									16,185,592		1,975,051
Other assets									127,939
Total assets									20,432,607
Accrued expenses									493,636
Total current liabilities									1,251,889
Deferred tax liability									18,752
Total liabilities									4,247,015
Total liabilities and stockholders' equity									20,432,607
Income taxes									1,227,322
Net loss									(6,718,698)
Net loss to common shareholders									$ (12,161,645)
Basic and diluted									$ (5.95)
Net adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accumulated deficit									$ (568,895)		(250,255)
Total stockholders' equity									(568,895)		$ (250,255)
Other assets									178,941
Total assets									178,941
Accrued expenses									357,566
Total current liabilities									357,566
Deferred tax liability									390,270
Total liabilities									747,836
Total liabilities and stockholders' equity									178,941
Income taxes									(318,640)
Net loss									(318,640)
Net loss to common shareholders									(318,640)
Net adjustments | CANADA
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accumulated deficit									0
Other assets									178,941
Income taxes									$ 318,640
[1]	(1) See Note 2

Basis of Presentation and Goi_4

Basis of Presentation and Going Concern - Note disclosures affected by corrections (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2019	Dec. 31, 2018
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Federal net operating loss (“NOL”)		$ 16,812,626
State NOL		2,439,015
Research and development credits		1,350,305
Lease liability		242,234
Stock compensation and other		889,167
Deferred tax asset valuation allowance		(20,945,997)
Total Deferred Tax Asset		787,350
Deferred tax liability (In-Process R&D )		(957,000)
Right-of-use asset		(239,372)
Total deferred tax liability		(1,196,372)
Net deferred tax liability		(409,022)
Unrecognized tax benefits		283,600	$ 185,400
Unrecognized tax benefits, interest and penalties accrued		148,400	64,800
Unrecognized tax benefits that would impact to the effective rate if recognized		0
Forecast
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Unrecognized tax benefits	$ 0
U.S. federal
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net operating loss carryforwards		107,300,000	102,800,000
Tax credit carry forwards		1,200,000
State
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net operating loss carryforwards		107,300,000	$ 102,800,000
Tax credit carry forwards		1,200,000
As reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Federal net operating loss (“NOL”)		16,650,007
State NOL		2,401,609
Research and development credits		1,493,666
Lease liability		242,234
Stock compensation and other		1,213,339
Deferred tax asset valuation allowance		(20,823,235)
Total Deferred Tax Asset		1,177,620
Deferred tax liability (In-Process R&D )		(957,000)
Right-of-use asset		(239,372)
Total deferred tax liability		(1,196,372)
Net deferred tax liability		(18,752)
Net adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Federal net operating loss (“NOL”)		162,619
State NOL		37,406
Research and development credits		(143,361)
Stock compensation and other		(324,172)
Deferred tax asset valuation allowance		(122,762)
Total Deferred Tax Asset		(390,270)
Net deferred tax liability		(390,270)
Net adjustments | CANADA
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Research and development credits		(143,361)
Deferred tax asset valuation allowance		(174,949)
Net operating loss carryforwards		$ 174,949

Basis of Presentation and Goi_5

Basis of Presentation and Going Concern - Going Concern (Details) - USD ($)	3 Months Ended						9 Months Ended		12 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019		Dec. 31, 2018
Going Concern
Cash	$ 13,711,334						$ 13,711,334		$ 13,922,972	[1]
Accumulated deficit	(99,149,764)						(99,149,764)		(83,751,525)	[1]	$ (76,714,187)
Working capital	10,400,000						10,400,000
Net cash used in operating activities							(11,639,794)	$ (5,124,878)
Net loss	$ (6,231,542)	$ (4,940,080)	$ (4,226,617)	$ (1,819,683)	$ (1,020,899)	$ (1,983,711)	$ (15,398,239)	$ (4,824,292)	$ (7,037,338)
[1]	(1) See Note 2

Basis of Presentation and Goi_6

Basis of Presentation and Going Concern - PPP Loan (Details) - PPP Loan	Apr. 13, 2020USD ($)
Debt
Principal amount	$ 176,585
Interest rate (as percent)	0.98%

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Cash (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Summary of Significant Accounting Policies
Cash	$ 13,711,334	$ 13,922,972	[1]
[1]	(1) See Note 2

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Derivative financial instruments (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Derivative Financial Instruments
Derivative financial instruments, at estimated fair value—warrants	$ 30,831	$ 5,623	[1]
Level 3 | Warrants
Derivative Financial Instruments
Derivative financial instruments, at estimated fair value—warrants	$ 30,831	$ 5,623
[1]	(1) See Note 2

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Property, equipment and depreciation (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Property, equipment and depreciation
Property and equipment, net	$ 45,476		$ 45,476		$ 57,166	[1]
Depreciation and amortization	$ 7,204	$ 7,268	20,933	$ 20,196
Carrying value adjustments			$ 0		$ 0
Minimum
Property, equipment and depreciation
Estimated useful life			3 years
Maximum
Property, equipment and depreciation
Estimated useful life			5 years
[1]	(1) See Note 2

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Goodwill and In-Process Research and Development (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Summary of Significant Accounting Policies
Impairment on goodwill	$ 0	$ 0
Impairment of IPR&D	$ 0	$ 0

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Income Taxes (Details) $ in Millions	1 Months Ended
	Apr. 30, 2019USD ($)
Income Taxes
Net operating loss tax credits	$ 1

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Research and Development (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Research and Development
Prepaid research and development costs	$ 0.5	$ 0.4

Summary of Significant Accoun_9

Summary of Significant Accounting Policies - Segment Information (Details)	9 Months Ended
	Sep. 30, 2020segment
Summary of Significant Accounting Policies
Number of operating segments	1

Stockholders' Equity and Deri_2

Stockholders' Equity and Derivative Liability - Warrants - Series A Convertible Preferred Stock (Details) - Series A - shares	Sep. 30, 2020	Dec. 31, 2019	Oct. 14, 2014
Preferred stock, Common Stock and Warrant Offering
Convertible preferred stock, shares authorized			1,250,000
Convertible preferred stock, shares outstanding	85,581	85,581
Stock issued as a result of conversion (in shares)	0

Stockholders' Equity and Deri_3

Stockholders' Equity and Derivative Liability - Warrants - Series C Preferred Stock Issuances and Beneficial Conversion Feature (Details) - $ / shares	Jul. 03, 2018	Sep. 30, 2020	Dec. 31, 2019
Preferred stock, Common Stock and Warrant Offering
Preferred shares converted into common stock (in shares)		92
Warrants
Preferred stock, Common Stock and Warrant Offering
Warrants issued (in shares)	88,928
Series C
Preferred stock, Common Stock and Warrant Offering
Preferred shares issued (in shares)		1,817	1,827
Convertible preferred stock, par value	$ 1,000	$ 1,000	$ 1,000
Issuance of stock, net (in shares)	10,826
Preferred Stock, Shares Outstanding		1,817	1,827
Stock issued as a result of conversion (in shares)		10
Series C | Preferred Stock
Preferred stock, Common Stock and Warrant Offering
Preferred shares issued (in shares)	1

Stockholders' Equity and Deri_4

Stockholders' Equity and Derivative Liability - Warrants - Common Stock and Warrant Offering (Details)	Apr. 25, 2017USD ($)$ / sharesshares	Apr. 04, 2016USD ($)$ / sharesshares	Oct. 13, 2015USD ($)$ / sharesshares	Sep. 30, 2020USD ($)$ / shares	Dec. 31, 2019USD ($)$ / shares
Common Stock and Warrant Offering
Derivative financial instruments, at estimated fair value-warrants				$ 30,831	$ 5,623	[1]
Level 3 | Warrants
Common Stock and Warrant Offering
Derivative financial instruments, at estimated fair value-warrants				$ 30,831	$ 5,623
October 13 2015
Common Stock and Warrant Offering
Issuance of stock, net (in shares) | shares			8,929
Fixed combined price (in dollars per share) | $ / shares			$ 1,680
Proceeds from issuance of stock			$ 15,000,000
Offering costs			1,500,000
Additional proceeds if warrants exercised in full			$ 12,800,000
Price of Hepion common stock | $ / shares				$ 3.11	$ 5.36
October 13 2015 | Expected warrant term (years)
Common Stock and Warrant Offering
Measurement input				0.03	0.78
October 13 2015 | Risk-free interest rate
Common Stock and Warrant Offering
Measurement input				0.0022	0.0166
October 13 2015 | Expected volatility
Common Stock and Warrant Offering
Measurement input				1.360	0.720
October 13 2015 | Warrants
Common Stock and Warrant Offering
Warrants issued (in shares) | shares			5,357
Exercise period for warrants			5 years
Exercise price per share | $ / shares			$ 2,380
Fundamental transaction period			90 days
October 13 2015 | Level 3 | Warrants
Common Stock and Warrant Offering
Derivative financial instruments, at estimated fair value-warrants			$ 4,400,000
April 4 2016
Common Stock and Warrant Offering
Issuance of stock, net (in shares) | shares		8,803
Fixed combined price (in dollars per share) | $ / shares		$ 795.20
Proceeds from issuance of stock		$ 7,000,000
Offering costs		700,000
Additional proceeds if warrants exercised in full		$ 4,200,000
Price of Hepion common stock | $ / shares				$ 3.11	$ 5.36
April 4 2016 | Expected warrant term (years)
Common Stock and Warrant Offering
Measurement input				0.51	1.26
April 4 2016 | Risk-free interest rate
Common Stock and Warrant Offering
Measurement input				0.0022	0.0166
April 4 2016 | Expected volatility
Common Stock and Warrant Offering
Measurement input				1.260	0.750
April 4 2016 | Warrants
Common Stock and Warrant Offering
Warrants issued (in shares) | shares		4,401
Exercise period for warrants		5 years
Exercise price per share | $ / shares		$ 952
Fundamental transaction period		90 days
April 4 2016 | Level 3 | Warrants
Common Stock and Warrant Offering
Derivative financial instruments, at estimated fair value-warrants		$ 1,500,000
April 25 2017
Common Stock and Warrant Offering
Issuance of stock, net (in shares) | shares	21,429
Fixed combined price (in dollars per share) | $ / shares	$ 560
Proceeds from issuance of stock	$ 12,000,000
Offering costs	500,000
Additional proceeds if warrants exercised in full	$ 7,500,000
Price of Hepion common stock | $ / shares				$ 3.11	$ 5.36
April 25 2017 | Expected warrant term (years)
Common Stock and Warrant Offering
Measurement input				1.56	2.31
April 25 2017 | Risk-free interest rate
Common Stock and Warrant Offering
Measurement input				0.0022	0.0166
April 25 2017 | Expected volatility
Common Stock and Warrant Offering
Measurement input				1.160	0.690
April 25 2017 | Warrants
Common Stock and Warrant Offering
Warrants issued (in shares) | shares	10,714
Exercise period for warrants	5 years
Exercise price per share | $ / shares	$ 700
Fundamental transaction period	90 days
April 25 2017 | Level 3 | Warrants
Common Stock and Warrant Offering
Derivative financial instruments, at estimated fair value-warrants	$ 4,000,000
July 3 2018
Common Stock and Warrant Offering
Price of Hepion common stock | $ / shares				$ 3.11	$ 5.36
July 3 2018 | Expected warrant term (years)
Common Stock and Warrant Offering
Measurement input				2.75	3.50
July 3 2018 | Risk-free interest rate
Common Stock and Warrant Offering
Measurement input				0.0022	0.0166
July 3 2018 | Expected volatility
Common Stock and Warrant Offering
Measurement input				1.180	0.650
[1]	(1) See Note 2

Stockholders' Equity and Deri_5

Stockholders' Equity and Derivative Liability - Warrants - Components of changes (Details) - Warrants	9 Months Ended
	Sep. 30, 2020USD ($)shares
Number of Warrants Outstanding
Balance at the beginning of the period (in shares) | shares	107,998
Balance at end of period (in shares) | shares	107,998
Level 3
Derivative Instrument Liability
Balance at the beginning of the period	$ 5,623
Change in fair value of warrants	25,208
Balance at end of period	$ 30,831

Stockholders' Equity and Deri_6

Stockholders' Equity and Derivative Liability - Warrants - Common Stock Offering (Details) - USD ($)	Mar. 27, 2020	Feb. 12, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Controlled equity offering sales agreement
Common stock, par value			$ 0.0001		$ 0.0001
Proceeds from issuance of stock			$ 11,248,814	$ 5,844,530
Sales Agreement
Controlled equity offering sales agreement
Common stock, par value		$ 0.0001
Maximum aggregate offering price		$ 7,000,000
Issuance of stock, net (in shares)			5,262,806
Proceeds from issuance of stock	$ 4,600,000		$ 11,200,000

Fair Value Measurements (Detail

Fair Value Measurements (Details)	1 Months Ended		3 Months Ended	9 Months Ended
	Oct. 31, 2018USD ($)shares	Jun. 30, 2016	Dec. 31, 2018USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)		Jun. 10, 2016$ / shares
Fair value measurements
Contingent consideration				$ 2,560,000		$ 2,430,000	[1]
Change in fair value of contingent consideration
Change in fair value of contingent consideration				130,000	$ (70,000)
Discount rate
Change in fair value of contingent consideration
Measurement Input								0.065
Share Price
Change in fair value of contingent consideration
Measurement Input | $ / shares								19.60
Ciclofilin
Change in fair value of contingent consideration
Payment of contingent consideration milestone	$ 654,000		$ 1,000,000
Number of shares issued | shares	1,439
Issuance of common stock in conjunction with milestone payment	$ 55,398
Percentage of issued and outstanding	2.50%	2.50%
Level 3 | Contingent Consideration
Change in fair value of contingent consideration
Balance at beginning of the period				2,430,000
Change in fair value recorded in earnings				130,000
Balance at end of the period				2,560,000
Recurring basis
Fair value measurements
Contingent consideration				2,560,000		2,430,000
Derivative liabilities related to warrants				30,831		5,623
Recurring basis | Level 3
Fair value measurements
Contingent consideration				2,560,000		2,430,000
Derivative liabilities related to warrants				$ 30,831		$ 5,623
[1]	(1) See Note 2

Indefinite-lived Intangible A_3

Indefinite-lived Intangible Assets and Goodwill - IPR&D (Details) - USD ($)		9 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Indefinite-lived Intangible Assets and Goodwill
In-process research and development, beginning balance	[1]	$ 3,190,000
In-process research and development, ending balance		3,190,000
Impairment losses on IPR&D		$ 0	$ 0
[1]	(1) See Note 2

Indefinite-lived Intangible A_4

Indefinite-lived Intangible Assets and Goodwill - Goodwill (Details) - USD ($)		9 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Roll-forward of goodwill balance
Beginning balance	[1]	$ 1,870,924
Ending balance		1,870,924
Impairment on goodwill		$ 0	$ 0
[1]	(1) See Note 2

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Accrued Liabilities
Payroll and related costs	$ 540,510	$ 346,244
Research and development	1,293,875	12,075
Legal fees	26,856	2,354
Accrued taxes	522,075	431,923
Other	817	58,606
Total accrued expenses	$ 2,384,133	$ 851,202	[1]
[1]	(1) See Note 2

Accounting for Share-Based Pa_3

Accounting for Share-Based Payments - Equity Incentive Plan (Details) - USD ($)	Jun. 03, 2013	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Jul. 31, 2020
Stock based compensation expense
Stock-based compensation expense				$ 1,393,534	$ 51,768
Equity Incentive Plan
Accounting for Shared-Based Payments
Vesting period (in years)	3 years
Contractual term	10 years
Authorized shares (in shares)						2,500,000
Available shares (in shares)		35,229		35,229
Stock based compensation expense
Stock-based compensation expense		$ 990,677	$ 17,129	$ 1,393,534	51,768
General and administrative | Equity Incentive Plan
Stock based compensation expense
Stock-based compensation expense		750,168	10,369	1,066,796	31,107
Research and development | Equity Incentive Plan
Stock based compensation expense
Stock-based compensation expense		$ 240,509	$ 6,760	$ 326,738	$ 20,661

Accounting for Share-Based Pa_4

Accounting for Share-Based Payments - Stock Option Activity (Details) - Stock options - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Number of Options
Balance outstanding at the beginning of the period (in shares)	41,271
Granted (in shares)	2,423,500	20,639
Balance outstanding at the end of the period (in shares)	2,464,771		41,271
Vested awards and those expected to vest at the end of the period (in shares)	2,367,095
Vested and exercisable at the end of the period (in shares)	23,940
Weighted Average Exercise Price Per Share
Balance outstanding (in dollars per share)	$ 5.96		$ 194.83
Granted (in dollars per share)	2.50
Vested awards and those expected to vest at the end of the period (in dollars per share)	6.10
Vested and exercisable at the end of the period (in dollars per share)	$ 357.31
Intrinsic Value
Balance outstanding at the beginning of the period (in dollars)	$ 43,182
Granted (in dollars)	2,071,270
Balance outstanding at the end of the period (in dollars)	2,042,540		$ 43,182
Vested awards and those expected to vest at the end of the period (in dollars)	$ 1,965,890
Weighted Average Remaining Contractual Term (in years)
Balance outstanding term (in years)	9 years 7 months 21 days		8 years 5 months 1 day
Vested awards and those expected to vest at the end of the period (in years)	9 years 7 months 21 days
Vested and exercisable at the end of the period (in years)	7 years 5 months 12 days
Unrecognized compensation cost related to non-vested stock options and RSUs outstanding
Unrecognized compensation cost related to non-vested stock (in dollars)	$ 7,000,000
Weighted average remaining vesting period over which unrecognized compensation is expected to be recognized	2 years 3 months 18 days
Exercise price range $3.24-$2,452.80
Exercise Price Per Share
Exercise price, low end of the range (in dollars per share)	$ 3.24		$ 3.24
Exercise price, high end of the range (in dollars per share)	2,452.80		$ 2,452.80
Exercise price range $1.63-$3.72
Exercise Price Per Share
Exercise price, low end of the range (in dollars per share)	1.63
Exercise price, high end of the range (in dollars per share)	3.72
Exercise price range $1.63-$2,452.80
Exercise Price Per Share
Exercise price, low end of the range (in dollars per share)	1.63
Exercise price, high end of the range (in dollars per share)	$ 2,452.80

Accounting for Share-Based Pa_5

Accounting for Share-Based Payments - Assumptions (Details)	Apr. 01, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2016
Weighted-average assumptions to determine fair value of stock option awards
Actual forfeiture rate (as a percent)		3.00%	10.00%	3.00%	3.00%	3.00%
Estimated future unvested option forfeitures (as a percent)	10.00%

Accounting for Share-Based Pa_6

Accounting for Share-Based Payments - Weighted-Average Assumptions Used Black Scholes Model (Details) - Stock options - $ / shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock price	$ 2.50	$ 3.24
Risk-free interest rate	0.34%	1.85%
Expected volatility	126.30%	76.50%
Expected term (in years)	6 years	6 years

Loss per Share (Details)

Loss per Share (Details) - USD ($)	3 Months Ended						9 Months Ended		12 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Numerator:
Net loss	$ (6,231,542)	$ (4,940,080)	$ (4,226,617)	$ (1,819,683)	$ (1,020,899)	$ (1,983,711)	$ (15,398,239)	$ (4,824,292)	$ (7,037,338)
Preferred stock deemed dividend	(5,287)			(8,460)			(5,287)	(5,444,826)
Net loss attributable to common shareholders	$ (6,236,829)			$ (1,828,143)			$ (15,403,526)	$ (10,269,118)	$ (12,480,285)
Denominator:
Weighted average common shares outstanding (in shares)	9,025,139			3,453,628			7,294,790	1,532,927
Net loss per share of common stock-basic and diluted (in dollars per share)	$ (0.69)			$ (0.53)			$ (2.11)	$ (6.70)	$ (6.11)
Securities excluded from the computation of diluted weighted shares outstanding
Anti-dilutive securities (in shares)							5,021,268	2,870,254
Series A
Securities excluded from the computation of diluted weighted shares outstanding
Anti-dilutive securities (in shares)							3,184	3,184
Series C
Securities excluded from the computation of diluted weighted shares outstanding
Anti-dilutive securities (in shares)							16,747	16,987
Stock options
Securities excluded from the computation of diluted weighted shares outstanding
Anti-dilutive securities (in shares)							2,464,771	9,010
Warrants – liability classified
Securities excluded from the computation of diluted weighted shares outstanding
Anti-dilutive securities (in shares)							107,998	107,997
Warrants
Securities excluded from the computation of diluted weighted shares outstanding
Anti-dilutive securities (in shares)							2,428,568	2,733,076

Commitments and Contingencies -

Commitments and Contingencies - Contractual Obligations (Details)	Oct. 31, 2019	May 31, 2018	Dec. 31, 2017
Corporate office space
Contractual Obligations
Renewal term (in years)			5 years
Office equipment
Contractual Obligations
Term (in years)		3 years
Office and research laboratory
Contractual Obligations
Term (in years)	3 years

Commitments and Contingencies_2

Commitments and Contingencies - Leases (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019	[1]	Jan. 01, 2019
Lessee, Lease, Description [Line Items]
Operating lease liability	$ 633,766
ROU assets	614,193	$ 797,913
Current lease liabilities	275,296	266,696
Non-current lease liabilities	$ 358,470	$ 540,751
Estimated incremental borrowing rate (as a percent)	6.50%
ASU 2016-02
Lessee, Lease, Description [Line Items]
Operating lease liability				$ 800,000
ROU assets				$ 800,000
[1]	(1) See Note 2

Commitments and Contingencies_3

Commitments and Contingencies - Future minimum rental payments under the Company's noncancelable operating leases (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases
Rent expense	$ 100,000	$ 46,346	$ 200,000	$ 200,000
Weighted average remaining term (in years)	2 years 4 months 17 days		2 years 4 months 17 days
Future minimum rental payments
2020	$ 71,016		$ 71,016
2021	285,932		285,932
2022	270,313		270,313
2023	53,902		53,902
Total	681,163		681,163
Present value adjustment	(47,397)		(47,397)
Lease liability at September 30, 2020	$ 633,766		$ 633,766