Celcuity (CELC) 10-Q 9 Nov 20 2020 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2020	Nov. 02, 2020
Cover [Abstract]
Entity Registrant Name	CELCUITY INC.
Entity Central Index Key	0001603454
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2020
Entity Filer Category	Accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020
Entity Ex Transition Period	false
Entity Common Stock Shares Outstanding		10,296,998
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Entity Incorporation State Country Code	DE
Entity Address State Or Province	MN
Entity File Number	001-38207
Entity Address Address Line 1	16305 36th Avenue North;
Entity Address Address Line 2	Suite 100
Entity Address City Or Town	Minneapolis
Entity Address Postal Zip Code	55446
City Area Code	763
Local Phone Number	392-0767
Security 12b Title	Common Stock, $0.001 par value per share
Trading Symbol	CELC
Security Exchange Name	NASDAQ
Entity Tax Identification Number	82-2863566

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Current Assets:
Cash and cash equivalents	$ 13,696,387	$ 18,735,002
Deposits	22,009	22,009
Deferred transaction costs	0	28,743
Payroll tax receivable	190,000	190,000
Prepaid assets	103,610	274,600
Total current assets	14,012,006	19,250,354
Property and equipment, net	626,271	833,463
Operating lease right-of-use assets	275,696	196,983
Total Assets	14,913,973	20,280,800
Current Liabilities:
Accounts payable	83,130	142,773
Finance lease liabilities	5,799	5,769
Operating lease liabilities	189,400	178,466
Accrued expenses	756,873	584,319
Total current liabilities	1,035,202	911,327
Finance lease liabilities	9,756	14,109
Operating lease liabilities	107,040	57,793
Total Liabilities	1,151,998	983,229
Stockholders' Equity:
Preferred stock, $0.001 par value: 2,500,000 shares authorized; 0 shares issued and outstanding as of September 30, 2020 and December 31, 2019	0	0
Common stock, $0.001 par value: 25,000,000 shares authorized; 10,289,253 and 10,253,988 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively	10,289	10,254
Additional paid-in capital	37,522,374	36,134,723
Accumulated deficit	(23,770,688)	(16,847,406)
Total Stockholders' Equity	13,761,975	19,297,571
Total Liabilities and Stockholders' Equity	$ 14,913,973	$ 20,280,800

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Condensed Balance Sheets
Preferred stock, par or stated value per share	$ 0.001	$ 0.01
Preferred stock, shares authorized	2,500,000	2,500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par or stated value per share	$ 0.001	$ 0.001
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	10,289,253	10,289,253
Common stock, shares outstanding	10,253,988	10,253,988

Condensed Statements of Operati

Condensed Statements of Operations (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Operating expenses:
Research and development	$ 1,962,610	$ 1,711,597	$ 5,576,250	$ 4,772,286
General and administrative	517,465	379,718	1,428,578	1,135,251
Total operating expenses	2,480,075	2,091,315	7,004,828	5,907,537
Loss from operations	(2,480,075)	(2,091,315)	(7,004,828)	(5,907,537)
Other income (expense)
Interest expense	(28)	(39)	(93)	(123)
Interest income	5,805	107,100	81,639	357,321
Other income, net	5,777	107,061	81,546	357,198
Net loss before income taxes	(2,474,298)	(1,984,254)	(6,923,282)	(5,550,339)
Income tax benefits	0	0	0	0
Net loss	$ (2,474,298)	$ (1,984,254)	$ (6,923,282)	$ (5,550,339)
Net loss per share, basic and diluted	$ (0.24)	$ (0.19)	$ (0.67)	$ (0.54)
Weighted average common shares outstanding, basic and diluted	10,273,567	10,239,957	10,262,636	10,217,443

Condensed Statements of Changes

Condensed Statements of Changes in Stockholders' Equity (unaudited) - USD ($)	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit
Balance, shares at Dec. 31, 2018		10,186,382
Balance, amount at Dec. 31, 2018	$ 25,349,611	$ 10,186	$ 34,827,467	$ (9,488,042)
Stock-based compensation	184,645	$ 0	184,645	0
Exercise of common stock options, shares		22,733
Exercise of common stock options, amount	174,957	$ 23	174,934	0
Net loss	(1,845,908)	$ 0	0	(1,845,908)
Balance, shares at Mar. 31, 2019		10,209,115
Balance, amount at Mar. 31, 2019	23,863,305	$ 10,209	35,187,046	(11,333,950)
Balance, shares at Dec. 31, 2018		10,186,382
Balance, amount at Dec. 31, 2018	25,349,611	$ 10,186	34,827,467	(9,488,042)
Net loss	(5,550,339)
Balance, shares at Sep. 30, 2019		10,248,590
Balance, amount at Sep. 30, 2019	20,712,429	$ 10,249	35,740,561	(15,038,381)
Balance, shares at Mar. 31, 2019		10,209,115
Balance, amount at Mar. 31, 2019	23,863,305	$ 10,209	35,187,046	(11,333,950)
Stock-based compensation	192,246	0	192,246	0
Net loss	(1,720,177)	$ 0	0	(1,720,177)
Exercise of common stock options, net of shares withheld for exercise price, shares		4,325
Exercise of common stock options, net of shares withheld for exercise price, amount	0	$ 4	(4)	0
Employee stock purchases, shares		6,876
Employee stock purchases, amount	58,065	$ 7	58,058	0
Balance, shares at Jun. 30, 2019		10,220,316
Balance, amount at Jun. 30, 2019	22,393,439	$ 10,220	35,437,346	(13,054,127)
Stock-based compensation	303,244	0	303,244	0
Net loss	(1,984,254)	$ 0	0	(1,984,254)
Exercise of common stock options, net of shares withheld for exercise price, shares		28,274
Exercise of common stock options, net of shares withheld for exercise price, amount	0	$ 29	(29)	0
Balance, shares at Sep. 30, 2019		10,248,590
Balance, amount at Sep. 30, 2019	20,712,429	$ 10,249	35,740,561	(15,038,381)
Balance, shares at Dec. 31, 2019		10,253,988
Balance, amount at Dec. 31, 2019	19,297,571	$ 10,254	36,134,723	(16,847,406)
Stock-based compensation	464,649	0	464,649	0
Net loss	(2,246,995)	$ 0	0	(2,246,995)
Balance, shares at Mar. 31, 2020		10,253,988
Balance, amount at Mar. 31, 2020	17,515,225	$ 10,254	36,599,372	(19,094,401)
Balance, shares at Dec. 31, 2019		10,253,988
Balance, amount at Dec. 31, 2019	19,297,571	$ 10,254	36,134,723	(16,847,406)
Net loss	(6,923,282)
Balance, shares at Sep. 30, 2020		10,289,253
Balance, amount at Sep. 30, 2020	13,761,975	$ 10,289	37,522,374	(23,770,688)
Balance, shares at Mar. 31, 2020		10,253,988
Balance, amount at Mar. 31, 2020	17,515,225	$ 10,254	36,599,372	(19,094,401)
Stock-based compensation	423,193	16	423,177	0
Net loss	(2,201,989)	$ 0	0	(2,201,989)
Employee stock purchases, shares		4,678
Employee stock purchases, amount	23,897	$ 4	23,893	0
Stock-based compensation, shares		15,686
Issuance of common stock in an at-the-market ("ATM") offering, shares		14,901
Issuance of common stock in an at-the-market ("ATM") offering, amount	154,142	$ 15	154,127	0
Issuance costs associated with ATM offering	(52,110)	$ 0	(52,110)	0
Balance, shares at Jun. 30, 2020		10,289,253
Balance, amount at Jun. 30, 2020	15,862,358	$ 10,289	37,148,459	(21,296,390)
Stock-based compensation	448,947	0	448,947	0
Net loss	(2,474,298)	0	0	(2,474,298)
Issuance costs associated with ATM offering	(75,032)	$ 0	(75,032)	0
Balance, shares at Sep. 30, 2020		10,289,253
Balance, amount at Sep. 30, 2020	$ 13,761,975	$ 10,289	$ 37,522,374	$ (23,770,688)

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net loss	$ (6,923,282)	$ (5,550,339)
Adjustments to reconcile net loss to net cash used for operations:
Depreciation	287,701	245,689
Stock-based compensation	1,336,789	680,134
Non-cash interest income, net of cash received	0	29,082
Changes in operating assets and liabilities:
Prepaid assets and deposits	170,990	144,743
Accounts payable	(64,657)	102,977
Accrued expenses	172,554	70,571
Non-cash operating lease, net	(18,533)	(17,810)
Net cash used for operating activities	(5,038,438)	(4,294,953)
Cash flows from investing activities:
Proceeds from sale of investments	0	4,745,000
Purchases of property and equipment	(75,494)	(352,490)
Net cash provided by (used for) investing activities	(75,494)	4,392,510
Cash flows from financing activities:
Proceeds from exercise of employee stock options	0	174,957
Proceeds from employee stock purchases	23,897	58,065
Gross proceeds from an ATM offering	154,142	0
Payments for secondary registration statement costs	(98,399)	(1,300)
Payments for finance leases	(4,323)	(4,293)
Net cash provided by financing activities	75,317	227,429
Net change in cash and cash equivalents	(5,038,615)	324,986
Cash and cash equivalents:
Beginning of period	18,735,002	15,944,609
End of period	13,696,387	16,269,595
Supplemental disclosures of non-cash investing and financing activities:
Property and equipment included in accounts payable	$ 7,714	$ 2,005

Organization

Organization	9 Months Ended
	Sep. 30, 2020
Organization
Note 1. Organization	1. Organization Nature of Business Celcuity Inc., a Delaware corporation (the “Company”), is a clinical stage biotechnology company translating discoveries of new cancer sub-types into pioneering companion diagnostics and expanded therapeutic options for cancer patients. The Company’s proprietary CELsignia diagnostic platform analyzes living tumor cells to untangle the complexity of the cellular activity driving a patient’s cancer. This allows Celcuity to discover new cancer sub-types molecular diagnostics cannot detect. Celcuity is driven to improve outcomes for patients and to transform how pharmaceutical companies define the patient populations for their targeted therapies. The Company was co-founded in 2012 by Brian F. Sullivan and Dr. Lance G. Laing and is based in Minnesota. The Company has not generated any revenues to date.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Summary of Significant Accounting Policies
Note 2. Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited financial statements include the accounts of the Company and have been prepared in accordance with Article 10 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, as permitted by Article 10, the unaudited financial statements do not include all of the information required by accounting principles generally accepted in the United States (“U.S. GAAP”). The balance sheet at December 31, 2019 was derived from the audited financial statements at that date and does not include all the disclosures required by U.S. GAAP. In the opinion of management, all adjustments which are of a normal recurring nature and necessary for a fair presentation have been reflected in the financial statements. These unaudited condensed financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2019 and the related footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected during the remainder of the current year or for any future period. Accounting Estimates Management uses estimates and assumptions in preparing these unaudited condensed financial statements in accordance with U.S. GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates and the difference could be material. Significant items subject to such estimates and assumptions include the valuation of stock-based compensation and prepaid or accrued clinical trial costs. Risks and Uncertainties The Company is subject to risks common to companies in the development stage including, but not limited to, dependency on the clinical and commercial success of its diagnostic tests, ability to obtain regulatory approval of its diagnostic tests, the need for substantial additional financing to achieve its goals, uncertainty of broad adoption of its approved products, if any, by physicians and consumers, and significant competition. Clinical Trial Costs The Company records prepaid assets or accrued expenses for prepaid or estimated clinical trial costs conducted by third-party service providers, which includes the conduct of preclinical studies and clinical trials. These costs can be a significant component of the Company’s research and development expenses. The Company accrues for these costs based on factors such as estimates of the work completed and in accordance with service agreements with its third-party service providers. The Company makes significant judgments and estimates in determining the accrued liabilities balance in each reporting period. As actual costs become known, the Company adjusts its prepaid assets or accrued expenses. The Company has not experienced any material differences between accrued costs and actual costs incurred. However, the status and timing of actual services performed, number of patients enrolled, and the rate of patient enrollments may vary from the Company’s estimates, resulting in an adjustment to expense in future periods. Changes in these estimates that result in material changes to the Company’s prepaid assets or accrued expenses could materially affect the Company’s results of operations. Application of New or Revised Accounting Standards Pursuant to the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), a company constituting an “emerging growth company” is, among other things, entitled to rely upon certain reduced reporting requirements. The Company is an emerging growth company but has irrevocably elected not to take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for public companies that are not emerging growth companies. Recently Adopted Accounting Pronouncements Effective January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842),

Net Loss Per Common Share

Net Loss Per Common Share	9 Months Ended
	Sep. 30, 2020
Net Loss Per Common Share
Note 3. Net Loss Per Common Share	3. Net Loss Per Common Share Basic and diluted net loss per common share is determined by dividing net loss attributable to common stockholders by the weighted-average common shares outstanding during the period. For all periods presented, the common shares underlying the options and warrants have been excluded from the calculation because their effect would be anti-dilutive. Therefore, the weighted-average shares outstanding used to calculate both basic and diluted loss per common share are the same. For the three and nine months ended September 30, 2020 and 2019, potentially dilutive securities excluded from the computations of diluted weighted-average shares outstanding were options to purchase 810,725 and 577,469 shares of common stock, respectively, warrants to purchase 353,585 and 353,980 shares of common stock, respectively, and 15,686 and 0 shares of restricted common stock, respectively.

Commitments

Commitments	9 Months Ended
	Sep. 30, 2020
Commitments
Note 4. Commitments	4. Commitments Operating and Finance Leases The Company leases its corporate space in Minneapolis, Minnesota. In September 2017, the Company entered into a non-cancelable operating lease agreement for building space. The lease commenced, and the Company moved to the facility, in May 2018, in conjunction with the termination of its then existing lease. Rent expense is recorded on a straight-line basis over the lease term. The original lease agreement was set to terminate on April 30, 2021, but in July 2020 the Company signed an amendment to extend the lease through April 30, 2022. The lease amendment provides for monthly rent, real estate taxes and operating expenses. As a result of the lease amendment, the Company recorded an incremental $197,211 in the operating ROU asset and lease liability. The lease amendment includes the option to extend the term for one additional year. The option to extend is at the Company’s discretion and because it has not been determined if the option to extend will be exercised, the extended lease term is not included in the ROU assets and lease liabilities. The Company regularly evaluates the renewal option and when it is reasonably certain of exercise, the Company will include the renewal period in the lease term. In May 2018, the Company entered into a non-cancelable finance lease agreement for office equipment with a five-year term. The underlying assets are included in furniture and equipment. The lease contains a bargain purchase option at the end of the lease. When an implicit rate is not provided, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. Supplemental balance sheet information consisted of the following at September 30, 2020: Operating Lease Right-of-use assets $ 275,696 Operating lease liability $ 296,440 Less: short term portion (189,400 ) Long term portion $ 107,040 Finance Lease Furniture and equipment $ 28,932 Less: Accumulated depreciation (13,502 ) Net book value of property and equipment under finance lease $ 15,430 Finance lease liability $ 15,555 Less: short term portion (5,799 ) Long term portion $ 9,756 Clinical Research Studies In May 2017, the Company entered into an agreement with a clinical research organization to conduct a clinical research study. The Company made payments of $50,000, $200,000 and $350,000 in 2019, 2018 and 2017, respectively. Additional payments will be due as certain milestones are met and clinical sites are added. The maximum amount of these additional payments is estimated to be approximately $2,720,000 over the course of the agreement. In October 2018, the Company entered into an agreement with a biopharmaceutical company and a cancer research center to conduct a clinical research study. The Company made payments of approximately $70,000 in 2019. Additional payments of approximately $112,000 will be due as certain milestones are met.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2020
Stockholders' Equity
Note 5. Stockholders' Equity	5. Stockholders’ Equity On June 5, 2020, the Company entered into an At Market Issuance Sales Agreement (the “ATM Agreement”) with B. Riley FBR, Inc. (the “Agent”). Pursuant to the ATM Agreement, the Company may offer and sell from time to time, at its option, shares of common stock having an aggregate offering price of up to $10,000,000, par value $0.001 per share (the “Placement Shares”), through the Agent. The Placement Shares have been registered under the Securities Act of 1933, as amended, pursuant to the Registration Statement on Form S-3 (File No. 333-227466), which was originally filed with the SEC on September 21, 2018 and declared effective by the SEC on October 4, 2018, the base prospectus contained within the Registration Statement, and a prospectus supplement that was filed on June 5, 2020. Sales of the Company’s common stock, if any, under this prospectus supplement may be made by any method deemed to be an “at the market offering” as defined in Rule 415 promulgated under the Securities Act of 1933, as amended. During the three months ended September 30, 2020, the Company sold zero shares of common stock pursuant to the ATM Agreement. During the nine months ended September 30, 2020, the Company sold 14,901 shares of common stock pursuant to the ATM Agreement, at an average selling price of $10.34 per share.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2020
Stock-Based Compensation
Note 6. Stock-Based Compensation	The Company recognized stock-based compensation expense for stock options of $410,544 and $288,087 for the three months ended September 30, 2020 and 2019, respectively, and $1,275,481 and $625,785 for the nine months ended September 30, 2020 and 2019, respectively. In May 2020, the Company modified the exercise price on 203,750 stock option awards to $5.10, the closing market price on the Nasdaq Capital Market on May 14, 2020. No director or officer awards were modified. The effect on stock-based compensation for the three and nine months ended September 30, 2020 was approximately $19,000 and $70,000, respectively. The effect on stock-based compensation over the remaining service period will be approximately $149,000. The Black-Scholes option-pricing model was used to estimate the fair value of equity-based awards with the following weighted-average assumptions for the nine months ended September 30: 2020 2019 Risk-free interest rate 0.35% - 1.66 % 1.42% - 2.47 % Expected volatility 73.3% - 77.1 % 78.1% - 80.0 % Expected life (years) 5.5 to 6.12 5.5 to 6.32 Expected dividend yield 0 % 0 %

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying unaudited financial statements include the accounts of the Company and have been prepared in accordance with Article 10 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, as permitted by Article 10, the unaudited financial statements do not include all of the information required by accounting principles generally accepted in the United States (“U.S. GAAP”). The balance sheet at December 31, 2019 was derived from the audited financial statements at that date and does not include all the disclosures required by U.S. GAAP. In the opinion of management, all adjustments which are of a normal recurring nature and necessary for a fair presentation have been reflected in the financial statements. These unaudited condensed financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2019 and the related footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected during the remainder of the current year or for any future period.
Accounting Estimates	Accounting Estimates Management uses estimates and assumptions in preparing these unaudited condensed financial statements in accordance with U.S. GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates and the difference could be material. Significant items subject to such estimates and assumptions include the valuation of stock-based compensation and prepaid or accrued clinical trial costs.
Risks and Uncertainties	Risks and Uncertainties The Company is subject to risks common to companies in the development stage including, but not limited to, dependency on the clinical and commercial success of its diagnostic tests, ability to obtain regulatory approval of its diagnostic tests, the need for substantial additional financing to achieve its goals, uncertainty of broad adoption of its approved products, if any, by physicians and consumers, and significant competition.
Clinical Trial Costs	Clinical Trial Costs The Company records prepaid assets or accrued expenses for prepaid or estimated clinical trial costs conducted by third-party service providers, which includes the conduct of preclinical studies and clinical trials. These costs can be a significant component of the Company’s research and development expenses. The Company accrues for these costs based on factors such as estimates of the work completed and in accordance with service agreements with its third-party service providers. The Company makes significant judgments and estimates in determining the accrued liabilities balance in each reporting period. As actual costs become known, the Company adjusts its prepaid assets or accrued expenses. The Company has not experienced any material differences between accrued costs and actual costs incurred. However, the status and timing of actual services performed, number of patients enrolled, and the rate of patient enrollments may vary from the Company’s estimates, resulting in an adjustment to expense in future periods. Changes in these estimates that result in material changes to the Company’s prepaid assets or accrued expenses could materially affect the Company’s results of operations.
Application of New or Revised Accounting Standards	Application of New or Revised Accounting Standards Pursuant to the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), a company constituting an “emerging growth company” is, among other things, entitled to rely upon certain reduced reporting requirements. The Company is an emerging growth company but has irrevocably elected not to take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for public companies that are not emerging growth companies.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements Effective January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842),

Commitments (Tables)

Commitments (Tables)	9 Months Ended
	Sep. 30, 2020
Commitments
Schedule of maturity analysis under lease agreements	Maturity analysis under lease agreements consisted of the following as of September 30, 2020: Operating Leases Finance Leases 2020 $ 48,705 $ 1,814 2021 194,821 7,255 2022 64,940 7,255 2023 - 3,022 Total minimum lease payments 308,466 19,346 Less: Present value discount (12,026 ) (149 ) Less amount representing services (3,642 ) Present value of net minimum lease payments $ 296,440 $ 15,555
Schedule of weighted average discount rate	Weighted Average Remaining Lease Term Discount Rate Operating lease 1.6 years 4.0 % Finance lease 2.7 years 1.0 %
Schedule of lease costs for the period	Lease costs for the period ended September 30, 2020: Three-month Period Nine-month Period Operating lease cost $ 43,974 $ 126,100 Finance lease cost: Amortization 1,447 4,340 Interest 28 93 Variable lease cost 20,300 64,965 $ 65,749 $ 195,498
Schedule of supplemental cash flow information related to leases	Supplemental cash flow information related to leases for the period ended September 30, 2020: Three-month Period Nine-month Period Cash paid for amounts included in operating and finance leases: Operating cash outflow from operating leases $ 46,003 $ 209,598 Operating cash outflow from finance leases 28 93 Financing cash outflow from finance leases 1,444 4,323 $ 47,475 $ 214,014
Schedule of supplemental balance sheet information related to leases	Operating Lease Right-of-use assets $ 275,696 Operating lease liability $ 296,440 Less: short term portion (189,400 ) Long term portion $ 107,040 Finance Lease Furniture and equipment $ 28,932 Less: Accumulated depreciation (13,502 ) Net book value of property and equipment under finance lease $ 15,430 Finance lease liability $ 15,555 Less: short term portion (5,799 ) Long term portion $ 9,756

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2020
Stock-Based Compensation
Schedule of stock-based compensation expense	Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Stock-based compensation expense in operating expenses: Research and development $ 254,537 $ 163,343 $ 813,099 $ 364,902 General and administrative 194,410 139,901 523,690 315,232 Total $ 448,947 $ 303,244 $ 1,336,789 $ 680,134
Schedule of unrecognized compensation cost	2020 $ 412,433 2021 1,299,933 2022 997,358 2023 644,448 2024 145,405 Total estimated compensation cost to be recognized $ 3,499,577
Schedule of fair value of equity-based awards	2020 2019 Risk-free interest rate 0.35% - 1.66 % 1.42% - 2.47 % Expected volatility 73.3% - 77.1 % 78.1% - 80.0 % Expected life (years) 5.5 to 6.12 5.5 to 6.32 Expected dividend yield 0 % 0 %
Schedule of stock options outstanding	6. Stock-Based Compensation The following table summarizes the activity for all stock options outstanding for the nine months ended September 30: 2020 2019 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Options outstanding at beginning of year 585,215 $ 14.37 478,503 $ 9.73 Granted 238,762 6.67 236,701 20.07 Exercised - - (62,388 ) 5.21 Forfeited (13,252 ) 11.54 (75,347 ) 10.53 Balance at September 30 810,725 $ 9.29 577,469 $ 14.35 Options exercisable at September 30: 371,550 $ 10.28 250,202 $ 8.82 Weighted Average Grant Date Fair Value for options granted during the period: $ 4.29 $ 13.75 Options Outstanding Options Exercisable Options Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Aggregate Intrinsic Value Options Exercisable Weighted Average Exercise Price Aggregate Intrinsic Value 810,725 8.07 $ 9.29 $ 401,866 371,550 $ 10.28 $ 231,702
Schedule of activity for all stock options outstanding	2020 2019 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Options outstanding at beginning of year 585,215 $ 14.37 478,503 $ 9.73 Granted 238,762 6.67 236,701 20.07 Exercised - - (62,388 ) 5.21 Forfeited (13,252 ) 11.54 (75,347 ) 10.53 Balance at September 30 810,725 $ 9.29 577,469 $ 14.35 Options exercisable at September 30: 371,550 $ 10.28 250,202 $ 8.82 Weighted Average Grant Date Fair Value for options granted during the period: $ 4.29 $ 13.75

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Narrative)	Jan. 01, 2019USD ($)
Summary of Significant Accounting Policies
Operating lease liabilities	$ 404,931
Operating lease, right-of-use asset	356,539
Eliminated deferred rent	63,875
Prepaid rent	$ 15,483

Net Loss Per Common Share (Deta

Net Loss Per Common Share (Details Narrative) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Employee Stock Option
Antidilutive securities excluded from computation of earnings per share	810,725	577,469	810,725	577,469
Warrants to Purchase
Antidilutive securities excluded from computation of earnings per share	353,585	353,980	353,585	353,980
Restricted Stock
Antidilutive securities excluded from computation of earnings per share	15,686	0	15,686	0

Commitments (Details)

Commitments (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Right-of-use asset	$ 275,696	$ 196,983
Operating lease liability	189,400	178,466
Operating lease liabilities, Long term portion	107,040	57,793
Finance lease liability	5,799	5,769
Finance lease liability, Long term portion	9,756	$ 14,109
Supplemental balance sheet information [Member]
Right-of-use asset	275,696
Operating lease liability	296,440
Less: short term portion	(189,400)
Operating lease liabilities, Long term portion	107,040
Furniture and equipment	28,932
Less: accumulated depreciation	13,502
Net book value of property and equipment under finance lease	15,430
Finance lease liability	15,555
Less: short term portion	(5,799)
Finance lease liability, Long term portion	$ 9,756

Commitments (Details 1)

Commitments (Details 1) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Present value of net minimum lease payments	$ 189,400	$ 178,466
Operating Leases [Member]
2020	48,705
2021	194,821
2022	64,940
2023	0
Total minimum lease payments	308,466
Less: present value discount	(12,026)
Present value of net minimum lease payments	296,440
Finance Leases [Member]
2020	1,814
2021	7,255
2022	7,255
2023	3,022
Total minimum capital lease payments	19,346
Less: present value discount	149
Less amount representing services	(3,642)
Present value of net minimum lease payments	$ 15,555

Commitments (Details 2)

Commitments (Details 2)	9 Months Ended
	Sep. 30, 2020
Commitments
Operating lease, weighted average remaining lease term	1 year 7 months 6 days
Operating lease, weighted average discount rate, percent	40.00%
Finance lease, weighted average remaining lease term	2 years 8 months 12 days
Finance lease, weighted average discount rate, percent	10.00%

Commitments (Details 3)

Commitments (Details 3) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Commitments
Operating lease cost	$ 43,974	$ 126,100
Finance lease cost:
Amortization	1,447	4,340
Interest	28	93
Variable lease cost	20,300	64,965
Total lease cost	$ 65,749	$ 195,498

Commitments (Details 4)

Commitments (Details 4) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Cash paid for amounts included in operating and finance leases:
Operating cash outflow from operating leases	$ 46,003	$ 209,598
Operating cash outflow from finance leases	28	93
Financing cash outflow from finance leases	1,444	4,323
Total cash paid for amounts included in operating and finance leases	$ 47,475	$ 214,014

Commitments (Details Narrative)

Commitments (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Payments to acquire in process research and development		$ 50,000	$ 200,000	$ 350,000
Increase in operating ROU asset and lease liability	$ 197,211
May 2017 [Member]
Maximum estimated future payment	2,720,000
October 2018 [Member]
Payments to acquire in process research and development		$ 70,000
Maximum estimated future payment	$ 112,000

Stockholders Equity (Details Na

Stockholders Equity (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2020	Jun. 05, 2020	Dec. 31, 2019
Common stock par value	$ 0.001		$ 0.001
Placement Shares [Member] | ATM Agreement [Member]
Aggregate offering price, common stock shares		$ 10,000,000
Common stock par value		$ 0.001
Sale of stock number of shares issued in transaction	14,901
Average selling price per share	$ 10.34

StockBased Compensation (Detail

StockBased Compensation (Details) - Employee Stock Option - $ / shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Shares options outstanding, beginning	585,215	478,503
Shares, granted	238,762	236,701
Shares, exercised		(62,388)
shares, forfeited	(13,252)	(75,347)
Shares options outstanding, ending	810,725	577,469
Shares, options exercisable	371,550	250,202
Weighted average exercise price, beginning	$ 14.37	$ 9.73
Weighted average exercise price, granted	6.67	20.07
Weighted average exercise price, exercised	0	5.21
Weighted average exercise price, forfeited	11.54	10.53
Weighted average exercise price, ending	9.29	14.35
Weighted average exercise price, options exercisable	10.28	8.82
Weighted average grant date fair value for options granted during the period:	$ 4.29	$ 13.75

StockBased Compensation (Deta_2

StockBased Compensation (Details 1) - Employee Stock Option	9 Months Ended
	Sep. 30, 2020USD ($)$ / sharesshares
Shares, options outstanding, beginning | shares	810,725
Options outstanding, weighted average remaining contractual life	8 years 25 days
Weighted average exercise price, options outstanding, beginning | $ / shares	$ 9.29
Options outstanding, aggregate intrinsic value | $	$ 401,866
Options exercisable | shares	371,550
Options exercisable, weighted average exercise price | $ / shares	$ 10.28
Options exercisable, aggregate intrinsic value | $	$ 231,702

StockBased Compensation (Deta_3

StockBased Compensation (Details 2)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Minimum
Expected volatility	733.00%	781.00%
Risk-free interest rate	0.35%	1.42%
Expected life (years)	5 years 6 months	5 years 6 months
Maximum
Expected volatility	771.00%	800.00%
Risk-free interest rate	1.66%	2.47%
Expected life (years)	6 years 1 month 13 days	6 years 3 months 25 days
Employee Stock Option
Expected dividend yield	0.00%	0.00%

StockBased Compensation (Deta_4

StockBased Compensation (Details 3)	Sep. 30, 2020USD ($)
Stock-Based Compensation
2020	$ 412,433
2021	1,299,933
2022	997,358
2023	644,448
2024	145,405
Total estimated compensation cost to be recognized	$ 3,499,577

StockBased Compensation (Deta_5

StockBased Compensation (Details 4) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Stock-based compensation	$ 448,947	$ 303,244	$ 1,336,789	$ 680,134
Research And Development Expense
Stock-based compensation	254,537	163,343	813,099	364,902
General And Administrative Expense
Stock-based compensation	$ 194,410	$ 139,901	$ 523,690	$ 315,232

StockBased Compensation (Deta_6

StockBased Compensation (Details Narrative) - USD ($)	May 14, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Shares available for grant under the 2017 Plan		238,146		238,146
Stock-based compensation		$ 448,947	$ 303,244	$ 1,336,789	$ 680,134
2017 Stock Incentive Plan
Stock-based compensation		$ 410,544	288,087	$ 1,275,481	625,785
Common stock shares reserved for future issuance		750,000		750,000
Common stock shares reserved description				The number of shares reserved for issuance was automatically increased by 102,540 shares on January 1, 2020 and will increase automatically on January 1 of each of 2021 through 2027 by the number of shares equal to 1.0% of the aggregate number of outstanding shares of Company common stock as of the immediately preceding December 31.
Stock option awards shares modified	203,750
Exercise price	$ 5.10
Restricted Stock Units (RSUs) [Member]
Stock-based compensation		$ 20,904	$ 0	$ 31,815	$ 17,047
Restricted stock vested				0	2,571
Restricted stock outstanding		15,686	0	15,686	0
Employee Stock Option
Stock-based compensation		$ 17,499	$ 15,157	$ 29,493	$ 37,302
Expense Stock Options [Member]
Stock-based compensation		$ 19,000		70,000
Future expenses				$ 149,000
Employee Stock Purchase Plan [Member]
Common stock shares reserved for future issuance		100,000		100,000
Common stock shares reserved description				The number of shares reserved for issuance was automatically increased by 51,270 shares on January 1, 2020 and will increase automatically on each subsequent January 1 by the number of shares equal to 0.5% of the total outstanding number of shares of Company common stock as of the immediately preceding December 31.
Remaining shares available for issuance		119,956		119,956