COVER PAGE
COVER PAGE - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 01, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36812 | |
Entity Registrant Name | SALARIUS PHARMACEUTICALS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-5087339 | |
Entity Address, Address Line One | 2450 Holcombe Blvd | |
Entity Address, Address Line Two | Suite X | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77021 | |
City Area Code | 832 | |
Local Phone Number | 834-6992 | |
Title of 12(b) Security | Common Stock, $ 0.0001 par value | |
Trading Symbol | SLRX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 45,206,135 | |
Entity Central Index Key | 0001615219 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 31,903,727 | $ 11,118,614 |
Grants receivable from CPRIT | 2,086,157 | 3,855,996 |
Prepaid expenses and other current assets | 1,194,255 | 822,050 |
Total current assets | 35,184,139 | 15,796,660 |
Property and equipment, net | 11,570 | 22,639 |
Other assets | 201,389 | 247,113 |
Goodwill | 8,865,909 | 8,865,909 |
Total assets | 44,263,007 | 24,932,321 |
Current liabilities: | ||
Accounts payable | 1,234,922 | 1,853,756 |
Accrued expenses and other current liabilities | 323,364 | 383,138 |
Note payable | 0 | 477,028 |
Warrant liability | 54,006 | 59,211 |
Total liabilities | 1,612,292 | 2,773,133 |
Commitments and contingencies (Note 5) | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; 0 issued and outstanding | 0 | 0 |
Common stock, $0.0001 par value; 100,000,000 shares authorized; 45,172,535 and 23,810,541 shares issued at September 30, 2021 and December 31, 2020, and 45,172,535 and 23,808,546 shares outstanding at September 30, 2021 and December 31, 2020, respectively | 4,517 | 2,381 |
Additional paid-in capital | 70,738,517 | 41,585,761 |
Accumulated deficit | (28,092,319) | (19,428,954) |
Total stockholders' equity | 42,650,715 | 22,159,188 |
Total liabilities and stockholders' equity | $ 44,263,007 | $ 24,932,321 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollar per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollar per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 45,172,535 | 23,810,541 |
Common stock, shares outstanding (in shares) | 45,172,535 | 23,808,546 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue from contract with customer, product and service | Grant [Member] | Grant [Member] | Grant [Member] | Grant [Member] |
Grant revenue | $ 0 | $ 1,378,239 | $ 1,840,216 | $ 3,754,379 |
Operating expenses: | ||||
Research and development | 2,015,930 | 1,803,682 | 5,852,887 | 4,890,375 |
General and administrative | 1,730,730 | 1,333,062 | 4,655,404 | 4,893,021 |
Total operating expenses | 3,746,660 | 3,136,744 | 10,508,291 | 9,783,396 |
Loss before other income (expense) | (3,746,660) | (1,758,505) | (8,668,075) | (6,029,017) |
Change in fair value of warrant liability | 9,073 | 45,103 | 5,205 | 265,538 |
Government grants and other income | 0 | 0 | 0 | 179,027 |
Interest income (expense), net | 487 | (3,230) | (495) | (254) |
Loss from continuing operations | (3,737,100) | (1,716,632) | (8,663,365) | (5,584,706) |
Net loss | $ (3,737,100) | $ (1,716,632) | $ (8,663,365) | $ (5,584,706) |
Loss per common share, basic ( in dollar per share) | $ (0.08) | $ (0.10) | $ (0.22) | $ (0.40) |
Loss per common share, diluted ( in dollar per share) | $ (0.08) | $ (0.10) | $ (0.22) | $ (0.40) |
Weighted average number of shares outstanding, basic (in shares) | 44,804,741 | 17,968,664 | 40,064,119 | 13,833,410 |
Weighted average number of shares outstanding, diluted (in shares) | 44,804,741 | 17,968,664 | 40,064,119 | 13,833,410 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities | ||
Net loss | $ (8,663,365) | $ (5,584,706) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation, amortization and impairment | 14,387 | 12,699 |
Equity-based compensation expense | 413,153 | 149,660 |
Shares issued for services | 0 | 25,000 |
Change in fair value of warrant liability | (5,205) | (265,538) |
Changes in operating assets and liabilities: | ||
Grants receivable | 1,769,839 | (3,212,678) |
Prepaid expenses and other current assets | (329,799) | 799,210 |
Accounts payable | (618,830) | (607,904) |
Accrued expenses and other current liabilities | (59,774) | 288,079 |
Deferred revenue | 0 | (541,701) |
Net cash used in operating activities | (7,479,594) | (8,937,879) |
Financing activities | ||
Proceeds from issuance of equity securities, net | 27,256,384 | 14,810,945 |
Proceeds from warrants exercised for cash | 1,485,351 | 636,214 |
Payments on note payable | (477,028) | (690,367) |
Net cash provided by financing activities | 28,264,707 | 14,756,792 |
Net increase in cash, cash equivalents and restricted cash | 20,785,113 | 5,818,913 |
Cash, cash equivalents and restricted cash at beginning of period | 11,118,614 | 3,738,900 |
Cash, cash equivalents and restricted cash at end of period | 31,903,727 | 9,557,813 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 1,468 | 6,615 |
Non-cash investing and financing activities: | ||
Accrued issuance costs for public offering | 0 | 12,001 |
Prepaid expense financed by note payable | $ 949,131 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Total | Nonemployee | Common Stock | Common StockNonemployee | Preferred Stock | Additional Paid-In Capital | Additional Paid-In CapitalNonemployee | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2019 | 4,511,174 | 0 | ||||||
Beginning balance at Dec. 31, 2019 | $ 10,580,854 | $ 451 | $ 0 | $ 22,657,103 | $ (12,076,700) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of equity securities, net (in shares) | 8,353,480 | 1,246,519 | ||||||
Issuance of equity securities, net | 9,467,166 | $ 835 | $ 125 | 9,466,206 | ||||
Preferred shares converted to common shares (in shares) | 777,825 | (777,825) | ||||||
Preferred shares converted to common shares | 0 | $ 78 | $ (78) | |||||
Equity-based compensation and services expense (in shares) | 3,198 | |||||||
Equity-based compensation and services expense | 38,409 | 38,409 | ||||||
Net loss | (2,083,816) | (2,083,816) | ||||||
Ending balance (in shares) at Mar. 31, 2020 | 13,645,677 | 468,694 | ||||||
Ending balance at Mar. 31, 2020 | 18,002,613 | $ 1,364 | $ 47 | 32,161,718 | (14,160,516) | |||
Beginning balance (in shares) at Dec. 31, 2019 | 4,511,174 | 0 | ||||||
Beginning balance at Dec. 31, 2019 | 10,580,854 | $ 451 | $ 0 | 22,657,103 | (12,076,700) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (5,584,706) | |||||||
Ending balance (in shares) at Sep. 30, 2020 | 19,818,912 | 0 | ||||||
Ending balance at Sep. 30, 2020 | 20,605,966 | $ 1,981 | $ 0 | 38,265,391 | (17,661,406) | |||
Beginning balance (in shares) at Mar. 31, 2020 | 13,645,677 | 468,694 | ||||||
Beginning balance at Mar. 31, 2020 | 18,002,613 | $ 1,364 | $ 47 | 32,161,718 | (14,160,516) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Warrants exercised for cash, net (in shares) | 503,230 | |||||||
Warrants exercised for cash, net | 578,714 | $ 50 | 578,664 | |||||
Preferred shares converted to common shares (in shares) | 468,694 | (468,694) | ||||||
Preferred shares converted to common shares | 0 | $ 47 | $ (47) | |||||
Equity-based compensation and services expense (in shares) | 1,843 | 18,564 | ||||||
Equity-based compensation and services expense | 32,905 | $ 25,000 | $ 2 | 32,905 | $ 24,998 | |||
Net loss | (1,784,258) | (1,784,258) | ||||||
Ending balance (in shares) at Jun. 30, 2020 | 14,638,008 | 0 | ||||||
Ending balance at Jun. 30, 2020 | 16,854,974 | $ 1,463 | $ 0 | 32,798,285 | (15,944,774) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of equity securities, net (in shares) | 5,130,390 | |||||||
Issuance of equity securities, net | 5,331,778 | $ 513 | 5,331,265 | |||||
Warrants exercised for cash, net (in shares) | 50,000 | |||||||
Warrants exercised for cash, net | 57,500 | $ 5 | 57,495 | |||||
Equity-based compensation and services expense (in shares) | 514 | |||||||
Equity-based compensation and services expense | 78,346 | 78,346 | ||||||
Net loss | (1,716,632) | (1,716,632) | ||||||
Ending balance (in shares) at Sep. 30, 2020 | 19,818,912 | 0 | ||||||
Ending balance at Sep. 30, 2020 | 20,605,966 | $ 1,981 | $ 0 | 38,265,391 | (17,661,406) | |||
Beginning balance (in shares) at Dec. 31, 2020 | 23,808,546 | 0 | ||||||
Beginning balance at Dec. 31, 2020 | 22,159,188 | $ 2,381 | $ 0 | 41,585,761 | (19,428,954) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of equity securities, net (in shares) | 19,627,215 | |||||||
Issuance of equity securities, net | 26,850,021 | $ 1,963 | 26,848,058 | |||||
Warrants exercised for cash, net (in shares) | 1,298,567 | |||||||
Warrants exercised for cash, net | 1,485,351 | $ 129 | 1,485,222 | |||||
Equity-based compensation and services expense | 135,379 | 135,379 | ||||||
Net loss | (1,851,896) | (1,851,896) | ||||||
Ending balance (in shares) at Mar. 31, 2021 | 44,734,328 | 0 | ||||||
Ending balance at Mar. 31, 2021 | 48,778,043 | $ 4,473 | $ 0 | 70,054,420 | (21,280,850) | |||
Beginning balance (in shares) at Dec. 31, 2020 | 23,808,546 | 0 | ||||||
Beginning balance at Dec. 31, 2020 | 22,159,188 | $ 2,381 | $ 0 | 41,585,761 | (19,428,954) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Warrants exercised for cash, net (in shares) | 1,298,567 | |||||||
Net loss | (8,663,365) | |||||||
Ending balance (in shares) at Sep. 30, 2021 | 45,172,535 | 0 | ||||||
Ending balance at Sep. 30, 2021 | 42,650,715 | $ 4,517 | $ 0 | 70,738,517 | (28,092,319) | |||
Beginning balance (in shares) at Mar. 31, 2021 | 44,734,328 | 0 | ||||||
Beginning balance at Mar. 31, 2021 | 48,778,043 | $ 4,473 | $ 0 | 70,054,420 | (21,280,850) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Equity-based compensation and services expense (in shares) | 38,278 | 6,188 | ||||||
Equity-based compensation and services expense | 147,456 | $ 4 | 147,452 | |||||
Net loss | (3,074,369) | (3,074,369) | ||||||
Ending balance (in shares) at Jun. 30, 2021 | 44,778,794 | 0 | ||||||
Ending balance at Jun. 30, 2021 | 45,851,130 | $ 4,477 | $ 0 | 70,201,872 | (24,355,219) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of equity securities, net (in shares) | 393,741 | |||||||
Issuance of equity securities, net | 406,363 | $ 40 | 406,323 | |||||
Equity-based compensation and services expense | 130,322 | 130,322 | ||||||
Net loss | (3,737,100) | (3,737,100) | ||||||
Ending balance (in shares) at Sep. 30, 2021 | 45,172,535 | 0 | ||||||
Ending balance at Sep. 30, 2021 | $ 42,650,715 | $ 4,517 | $ 0 | $ 70,738,517 | $ (28,092,319) |
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND OPERATIONS | ORGANIZATION AND OPERATIONS Nature of Business Salarius Pharmaceuticals, Inc. (“Salarius” or the “Company”), together with its subsidiaries, Salarius Pharmaceuticals, LLC, Flex Innovation Group LLC, and TK Pharma, Inc., is a clinical-stage biopharmaceutical company focused on developing effective treatments for cancers with high, unmet medical need. Specifically, the Company is developing treatments for cancers caused by dysregulated gene expression, i.e., genes that are incorrectly turned on or off. The field concerned with gene expression regulation is called ‘epigenetics’. As cancers are often diseases driven by gene dysregulation, epigenetics is an area of interest for cancer treatment. The Company's lead epigenetic based technology was licensed from the University of Utah Research Foundation in 2011. The Company is located in Houston, Texas. Risks Related to Covid-19 Pandemic The COVID-19 pandemic is significantly affecting the United States, global economies, and businesses worldwide. While the potential magnitude and duration of the economic and social impact of the COVID-19 pandemic is difficult to assess or predict, the impact on the global financial markets may, in the future, reduce our ability to access capital, which could negatively impact our short-term and long-term liquidity. At this time we are experiencing minimal disruption to our clinical trials. However, our ongoing Phase 1/2 Ewing sarcoma clinical trial and Phase 1/2 AST clinical trial may encounter delays in enrolling new patients due to concerns or healthcare resource constraints because of the COVID-19 pandemic. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("GAAP"). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standard Codification ("ASC") and Accounting Standards Update ("ASU") of the Financial Accounting Standards Board ("FASB"). Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Unaudited Interim Financial Information The accompanying interim financial statements are unaudited. These unaudited interim financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. These unaudited interim financial statements should be read in conjunction with the audited financial statements and accompanying notes for the year ended December 31, 2020 included elsewhere in the Company's Annual Report on Form 10-K filed with the SEC on March 18, 2021. In the opinion of management, the unaudited interim financial statements reflect all the adjustments (consisting of normal recurring adjustments) necessary to state fairly the Company’s financial position as of September 30, 2021 and the results of operations for the three and nine months ended September 30, 2021 and 2020. The interim results of operations are not necessarily indicative of the results that may occur for the full fiscal year. The December 31, 2020 balance sheet included herein was derived from the audited financial statements, but does not include all disclosures, including notes, required by GAAP for complete financial statements. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America as defined by the FASB ASC requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Cash and Cash Equivalents Salarius considers all highly-liquid investments with original maturities of three months or less to be cash equivalents. The Company maintains several bank accounts including an interest-bearing account for funds received from Cancer Prevention and Research Institution of Texas ("CPRIT"). Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. There were no impairment charges related to long-lived assets for the three and nine months ended September 30, 2021 and 2020. Goodwill Goodwill is not amortized but is tested at least annually for impairment at the reporting unit level. The Company has determined that the reporting unit is the single operating segment disclosed in its current financial statements. Impairment is the condition that exists when the carrying amount of goodwill exceeds its implied fair value. The first step in the impairment process is to determine the fair value of the reporting unit and then compare it to the carrying value, including goodwill. If the fair value exceeds the carrying value, no further action is required and no impairment charge is recognized. Additional impairment assessments may be performed on an interim basis if the Company encounters events or changes in circumstances that would indicate that, more likely than not, the carrying value of goodwill has been impaired. There was no impairment of goodwill during the three and nine months ended September 30, 2021 or September 30, 2020. Financial Instruments and Credit Risks Financial instruments that potentially subject the Company to credit risk include cash and cash equivalents and restricted cash. Cash is deposited in demand accounts in federally insured domestic institutions to minimize risk. Insurance is provided through the Federal Deposit Insurance Corporation (“FDIC”). Although the balances in these accounts exceed the federally insured limit from time to time, the Company has not incurred losses related to these deposits. Warrants The Company determines whether warrants should be classified as a liability or equity. For warrants classified as liabilities, the Company estimates the fair value of the warrants at each reporting period using Level 3 inputs with changes in fair value recorded in the Condensed Consolidated Statement of Operations within change in fair value of warrant liability. The estimates in valuation models are based, in part, on subjective assumptions, including but not limited to stock price volatility, the expected life of the warrants, the risk-free interest rate and the fair value of the common stock underlying the warrants, and could differ materially in the future. The Company will continue to adjust the fair value of the warrant liability at the end of each reporting period for changes in fair value from the prior period until the earlier of the exercise or expiration of the applicable warrant. For warrants classified as equity contracts, the Company allocates the transaction proceeds to the warrants and any other free-standing instruments issued in the transaction based on an allowable allocation method. Clinical Trial Accruals The Company’s preclinical and clinical trials are performed by third party contract research organizations (CROs) and/or clinical investigators, and clinical supplies are manufactured by contract manufacturing organizations (CMOs). Invoicing from these third parties may be monthly based upon services performed or based upon milestones achieved. The Company accrues these expenses based upon its assessment of the status of each clinical trial and the work completed, and upon information obtained from the CROs and CMOs. The Company’s estimates are dependent upon the timeliness and accuracy of data provided by the CROs and CMOs regarding the status and cost of the studies, and may not match the actual services performed by the organizations. This could result in adjustments to the Company’s research and development expenses in future periods. To date the Company has had no significant adjustments. Grants Receivable and Revenue Recognition Salarius’ source of revenue has been from a grant received from CPRIT. Grant revenue is recognized when qualifying costs are incurred and there is reasonable assurance that conditions of the grant have been met. Cash received from grants in advance of incurring qualifying costs is recorded as deferred revenue and recognized as revenue when qualifying costs are incurred. Research and Development Costs Research and development costs consist of expenses incurred in performing research and development activities, including pre-clinical studies and clinical trials. Research and development costs include salaries and personnel-related costs, consulting fees, fees paid for contract research services, the costs of laboratory equipment and facilities, license fees and other external costs. Research and development costs are expensed when incurred. Equity-Based Compensation Salarius measures equity-based compensation based on the grant date fair value of the awards and recognizes the associated expense in the financial statements over the requisite service period of the award, which is generally the vesting period. The Company uses the Black-Scholes option valuation model to estimate the fair value of the stock-based compensation and incentive units. Assumptions utilized in these models including expected volatility calculated based on implied volatility from traded stocks of peer companies, dividend yield and risk-free interest rate. Additionally, forfeitures are accounted for in compensation cost as they occur. Loss Per Share Basic net loss per share is calculated by dividing the net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Since the Company was in a loss position for all periods presented, diluted net loss per share is the same as basic net loss per share for all periods, as the inclusion of all potential common shares outstanding is anti-dilutive. The number of anti-dilutive shares, consisting of common shares underlying (i) common stock options, (ii) stock purchase warrants, (iii) unvested restricted stock, (iv) convertible preferred stock and (v) rights entitling holders to receive warrants to purchase the Company's common shares, which have been excluded from the computation of diluted loss per share, was 9,531,198 and 10,075,278 shares as of September 30, 2021 and 2020, respectively. Income Taxes Income taxes are recorded in accordance with FASB ASC Topic 740, Income Taxes ("ASC 740"), which provides for deferred taxes using an asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and the tax reporting basis of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The Company provides a valuation allowance against net deferred tax assets unless, based upon the available evidence, it is more likely than not that the deferred tax assets will be realized. The Company has evaluated available evidence and concluded that the Company may not realize the benefit of its deferred tax assets; therefore, a valuation allowance has been established for the full amount of the deferred tax assets. The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. As of September 30, 2021 and December 31, 2020, the Company did not have any significant uncertain tax positions and no interest or penalties have been charged. The Company's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company is subject to routine audits by taxing jurisdictions. Subsequent Events The Company’s management reviewed all material events through the date that the financial statements were issued for subsequent event disclosure consideration. Application of New Accounting Standards In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). The guidance eliminates certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods. This guidance also includes guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 is effective for annual and interim periods in fiscal years beginning after December 15, 2020. The adoption of ASU 2019-12 in the first quarter of 2021 did not have a material impact on the Company’s condensed consolidated financial statements. |
GRANTS RECEIVABLE
GRANTS RECEIVABLE | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
GRANTS RECEIVABLE | GRANTS RECEIVABLEGrants receivable represents qualifying costs incurred where there is reasonable assurance that conditions of the grant have been met but the corresponding funds have not been received as of the reporting date. Grants receivable balances are $2.1 million and $3.9 million as of September 30, 2021 and December 31, 2020, respectively. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 9 Months Ended |
Sep. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets at September 30, 2021 and December 31, 2020 consisted of the following: September 30, 2021 December 31, 2020 Prepaid clinical trial expenses $ 135,227 $ — Prepaid insurance 963,797 684,268 Other prepaid and current assets 95,231 137,782 Total prepaid expenses and other current assets $ 1,194,255 $ 822,050 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES License Agreement with the University of Utah Research Foundation In 2011, the Company entered into a license agreement with the University of Utah, under which, the Company acquired an exclusive license to an epigenetic enzyme lysine specific demethylase 1 ("LSD1"). In exchange for the license, the Company issued 2% equity ownership in the Company based on a fully diluted basis at the effective date of the agreement subject to certain adjustments specified in the agreement, such as granted revenue sharing rights on any resulting products or processes to commence on first commercial sale, and milestone payments based upon regulatory approval of any resulting product or process as well as on the second anniversary of first commercial sale. Cancer Prevention and Research Institute of Texas In June 2016, the Company entered into a Cancer Research Grant Contract with CPRIT. Pursuant to the contract, CPRIT awarded the Company a grant of up to $18.7 million, further modified to $16.1 million, to fund the development of an LSD1 inhibitor. This is a 3-year grant award which originally expired on May 31, 2019. The grant now expires on May 31, 2022. The Company will retain ownership over any intellectual property developed under the contract ("Project Result"). With respect to non-commercial use of any Project Result, the Company agreed to grant to CPRIT a nonexclusive, irrevocable, royalty-free, perpetual, worldwide license with right to sublicense any necessary additional intellectual property rights to exploit all Project Results by CPRIT, other governmental entities and agencies of the State of Texas, and private or independent institutions of higher education located in Texas, for education, research and other non-commercial purposes. The Company is obligated to make revenue-sharing payments to CPRIT with respect to net sales of any product covered by the contract, up to a maximum repayment of a certain percentage of the aggregate amount paid to the Company by CPRIT under the CPRIT contract. The payments are determined as a percentage of net sales, which may be reduced if the Company is required to obtain a license from a third party to sell any such product. In addition, upon meeting the foregoing limitation on revenue-sharing payments, the Company agreed to make continued revenue-sharing payments to CPRIT of less than 1% of net sales. The CPRIT grant is subject to funding conditions including a matching funds requirement where the Company will match 50% of funding from the CPRIT grant. As of September 30, 2021, the Company has expended all allowable funds under the grant. At September 30, 2021 and December 31, 2020, the Company had grants receivable of $2.1 million and $3.9 million, respectively, related to the CPRIT contract. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last is considered unobservable, are used to measure fair value: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Significant unobservable inputs including Salarius’ own assumptions in determining fair value. The Company believes the recorded values of its financial instruments, including cash and cash equivalents, accounts payable and note payable approximate their fair values due to the short-term nature of these instruments. The following table sets forth a summary of changes in the fair value of Level 3 liabilities, the warrants issued in connection with the Company's merger with Flex Pharma in 2019, which are measured at fair value on a recurring basis for the three and nine months ended September 30, 2021: Description Balance at December 31, 2020 Change in Fair Value Balance at September 30, 2021 Warrant liability $ 59,211 $ (5,205) $ 54,006 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Preferred Stock and Common Stock On February 11, 2020, the Company completed a public offering with total gross proceeds of approximately $11.0 million, which includes the full exercise of the underwriter's over-allotment option to purchase an additional 1,252,173 shares and warrants prior to deducting underwriting discounts and commissions and offering expenses payable by Salarius (the “February 2020 Offering”). The February 2020 Offering was comprised of 7,101,307 Class A units, priced at a public offering price of $1.15 per unit, with each unit consisting of one share of common stock and a five-year warrant to purchase one share of common stock at an exercise price of $1.15 per share, and 1,246,519 Class B units, priced at a public offering price of $1.15 per unit, with each unit consisting of one share of Series A convertible preferred stock and a five-year warrant to purchase one share of common stock with and exercise price of $1.15 per share. A total of 8,353,480 shares of common stock, 1,246,519 shares of Series A convertible preferred stock, and warrants to purchase up to 9,599,999 shares of common stock were issued in the offering, including the full exercise of the over-allotment option. The exercise price of the warrants are fixed and do not contain any variable pricing features or any price based anti-dilutive features. All Series A preferred stock was converted to common stock prior to December 31, 2020. As discussed above, in connection with the February 2020 Offering, the Company issued five-year warrants to purchase one share of common stock at an exercise price of $1.15 per share (each a "warrant"). On December 11, 2020, the Company entered into warrant exercise inducement offer letters (“Inducement Letters”) with certain holders of 3,964,065 Warrants (collectively, the “Exercising Holders”) pursuant to which such holders agreed to exercise on December 11, 2020 for cash, their Warrants to purchase 3,964,065 shares of Common Stock in exchange for the Company’s agreement to (i) lower the exercise price of the Warrants held by the Exercising Holders to $0.90 and (ii) issue new warrants (the “Inducement Warrants”) to purchase up to 3,964,065 shares of Common Stock. Each Inducement Warrant is exercisable at a price per share of $1.182 and expires on June 11, 2026. On August 3, 2020, the Company completed a public offering of 5,130,390 shares of its common stock at a price to the public of $1.20 per share. Total gross proceeds from the offering were approximately $6.2 million, prior to deducting underwriting discounts and commissions and offering expenses payable by the Company. On February 5, 2021, the Company entered into an At the Market Offering Agreement with Ladenburg Thalmann & Co. Inc. Under this agreement the Company is able to issue and sell, from time to time, shares of its common stock. On February 5, 2021 and July 2, 2021, the Company filed prospectus supplements with the SEC to register the offering and sale of Common Stock having an aggregate offering price of up to $6.3 million and $25.0 million, respectively. During the nine months ended September 30, 2021, the Company issued 3,214,234 shares under the Sales Agreement for gross proceeds of $6.7 million. On March 8, 2021, the Company completed a public offering of 16,806,722 shares of its common stock at a price to the public of $1.3685 per share. Total gross proceeds from the offering were approximately $23.0 million prior to deducting underwriting discounts and commissions and offering expenses payable by the Company. Warrants Exercised for Cash During the nine months ended September 30, 2021, the Company issued 1,298,567 common shares as a result of warrant exercises, and received cash proceeds of approximately $1.5 million. As of September 30, 2021, 7,747,587 warrants remain outstanding. Right to Warrants On January 3, 2019, Flex Pharma, Private Salarius and Merger Sub entered into the Merger Agreement. Pursuant to the Merger Agreement, Flex Pharma distributed one right per share of common stock to stockholders of record as of the close of business on July 18, 2019. Each right entitles such stockholders to receive a warrant to purchase the Company's common shares on January 20, 2020. These warrants were issued on July 1, 2021 and are exercisable in the aggregate, into 142,711 shares of the Company's common stock with a 5-year term from January 20, 2020, at an exercise price of $15.17 per share. The warrants are subject to a cashless exercise, at the option of the Company, at the closing of an issuance and sale of the Company’s common stock in certain qualified financing, upon the closing of which the holders of warrants shall be entitled to receive a number of shares of common stock equal to the greater of two formulae defined by the Merger Agreement, which are based on the volume weighted average price of the Company's common stock during the 10 consecutive trading days ending on the trading day immediately preceding the date of exercise. As a result, the warrants have been classified as a liability. The Company accounted for these warrants at fair value using Level 3 inputs. The Company determined the fair value of this warrant liability using a Black-Scholes valuation model. Using this method, unobservable inputs included the Company’s equity value, expected timing of possible outcomes, risk free interest rates and stock price volatility. Variables used in the Black-Scholes model are as follows: September 30, 2021 December 31, 2020 Discount rate 0.53% 0.27% Expected life (years) 3.31 years 4.06 years Expected volatility 130.23% 130.56% Expected dividend —% —% Wedbush Warrant On July 19, 2019, upon the closing of the merger, the Company elected to issue warrants to purchase 42,928 common shares to Wedbush Securities Inc. ("Wedbush") to satisfy $0.5 million of the $1.0 million success fee payable to Wedbush at the closing of the merger. The remaining $0.5 million success fee was paid in cash. These warrants have an exercise price of $18.90 and a 5-year term. As of September 30, 2021, all warrants issued to Wedbush were outstanding. |
EQUITY-BASED COMPENSATION
EQUITY-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
EQUITY-BASED COMPENSATION | EQUITY-BASED COMPENSATION Equity Incentive Plans The Company has granted options to employees, directors, and consultants under the 2015 Equity Incentive Plan (the "2015 Plan"). The 2015 Plan provides for the grant of incentive stock options ("ISOs"), nonstatutory stock options, restricted stock awards, restricted stock units, stock appreciation rights, performance-based stock awards and other stock-based awards. Additionally, the 2015 Plan provides for the grant of performance-based cash awards. ISOs may be granted only to the Company's employees. All other awards may be granted to the Company's employees, including officers, and to non-employee directors and consultants. As of September 30, 2021, there were 1,026,690 shares remaining available for the grant of stock awards under the 2015 Plan. During the nine-month periods ended September 30, 2021 and 2020, the Company awarded 79,000 and 182,000, respectively, stock options to its employees and directors, pursuant to the plan described above. Stock options generally vest over one companies. Similarly, the dividend yield is based on historical experience and the estimate of future dividend yields. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The expected term of the options is based on the average period the stock options are expected to remain outstanding. The fair value of the option grants awarded during each of the nine month periods ended September 30, 2021 and 2020 was $0.1 million and $0.7 million, respectively, which has been estimated with the following assumptions on the grant date. 3/10/2021 6/16/2021 9/2/2021 Risk-free interest rate 1.00 % 1.09 % 0.93 % Volatility 133.35 % 131.06 % 130.44 % Expected life (years) 6.00 6.00 6.00 Expected dividend yield 0 % 0 % 0 % The following table summarizes stock option activity for employees and non-employees for the nine months ended September 30, 2021 and 2020: Shares Weighted-Average Weighted-Average Aggregate Outstanding at December 31, 2019 166,233 $34.42 6.53 $— Granted 743,118 0.61 Exercised — Forfeited (36,613) — Expired (30,766) Outstanding at September 30, 2020 841,972 $4.55 9.32 Exercisable at September 30, 2020 69,813 $37.84 5.43 $— Outstanding at December 31, 2020 1,563,972 $2.78 9.47 $175,770 Granted 79,000 $1.04-$1.49 Exercised — Forfeited (45,000) Expired — Outstanding at September 30, 2021 1,597,972 $2.75 8.75 $271,540 Exercisable at September 30, 2021 323,730 $9.27 7.74 $34,440 As of September 30, 2021 and 2020, there was approximately $1.0 million and $0.4 million respectively of total unrecognized compensation cost related to unvested stock options. Total unrecognized compensation cost will be adjusted for future changes in employee and non-employee forfeitures, if any. The Company expects to recognize that cost over a remaining weighted-average period of 2.45 years. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("GAAP"). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standard Codification ("ASC") and Accounting Standards Update ("ASU") of the Financial Accounting Standards Board ("FASB"). |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America as defined by the FASB ASC requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Salarius considers all highly-liquid investments with original maturities of three months or less to be cash equivalents. |
Impairment of Long-Lived Assets | Impairment of Long-Lived AssetsLong-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. |
Goodwill | Goodwill Goodwill is not amortized but is tested at least annually for impairment at the reporting unit level. The Company has determined that the reporting unit is the single operating segment disclosed in its current financial statements. |
Financial Instruments and Credit Risks | Financial Instruments and Credit Risks Financial instruments that potentially subject the Company to credit risk include cash and cash equivalents and restricted cash. Cash is deposited in demand accounts in federally insured domestic institutions to minimize risk. Insurance is provided through the Federal Deposit Insurance Corporation (“FDIC”). Although the balances in these accounts exceed the federally insured limit from time to time, the Company has not incurred losses related to these deposits. |
Warrants | Warrants The Company determines whether warrants should be classified as a liability or equity. For warrants classified as liabilities, the Company estimates the fair value of the warrants at each reporting period using Level 3 inputs with changes in fair value recorded in the Condensed Consolidated Statement of Operations within change in fair value of warrant liability. The estimates in valuation models are based, in part, on subjective assumptions, including but not limited to stock price volatility, the expected life of the warrants, the risk-free interest rate and the fair value of the common stock underlying the warrants, and could differ materially in the future. The Company will continue to adjust |
Grants Receivable and Revenue Recognition | Grants Receivable and Revenue Recognition Salarius’ source of revenue has been from a grant received from CPRIT. Grant revenue is recognized when qualifying costs are incurred and there is reasonable assurance that conditions of the grant have been met. Cash received from grants in advance of incurring qualifying costs is recorded as deferred revenue and recognized as revenue when qualifying costs are incurred. |
Research and Development Costs | Research and Development Costs Research and development costs consist of expenses incurred in performing research and development activities, including pre-clinical studies and clinical trials. Research and development costs include salaries and personnel-related costs, consulting fees, fees paid for contract research services, the costs of laboratory equipment and facilities, license fees and other external costs. Research and development costs are expensed when incurred. |
Equity-Based Compensation | Equity-Based Compensation Salarius measures equity-based compensation based on the grant date fair value of the awards and recognizes the associated expense in the financial statements over the requisite service period of the award, which is generally the vesting period. |
Loss Per Share | Loss Per Share Basic net loss per share is calculated by dividing the net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Since the Company was in a loss position for all periods presented, diluted net loss per share is the same as basic net loss per share for all periods, as the inclusion of all potential common shares outstanding is anti-dilutive. |
Income Taxes | Income Taxes Income taxes are recorded in accordance with FASB ASC Topic 740, Income Taxes ("ASC 740"), which provides for deferred taxes using an asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and the tax reporting basis of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The Company provides a valuation allowance against net deferred tax assets unless, based upon the available evidence, it is more likely than not that the deferred tax assets will be realized. The Company has evaluated available evidence and concluded that the Company may not realize the benefit of its deferred tax assets; therefore, a valuation allowance has been established for the full amount of the deferred tax assets. The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. As of September 30, 2021 and December 31, 2020, the Company did not have any significant uncertain tax positions and no interest or penalties have been charged. The Company's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company is subject to routine audits by taxing jurisdictions. |
Subsequent Events | Subsequent Events The Company’s management reviewed all material events through the date that the financial statements were issued for subsequent event disclosure consideration. |
Application of New Accounting Standards | Application of New Accounting Standards In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). The guidance eliminates certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods. This guidance also includes guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 is effective for annual and interim periods in fiscal years beginning after December 15, 2020. The adoption of ASU 2019-12 in the first quarter of 2021 did not have a material impact on the Company’s condensed consolidated financial statements. |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets at September 30, 2021 and December 31, 2020 consisted of the following: September 30, 2021 December 31, 2020 Prepaid clinical trial expenses $ 135,227 $ — Prepaid insurance 963,797 684,268 Other prepaid and current assets 95,231 137,782 Total prepaid expenses and other current assets $ 1,194,255 $ 822,050 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Changes in Fair Value of Level 3 Liabilities | The following table sets forth a summary of changes in the fair value of Level 3 liabilities, the warrants issued in connection with the Company's merger with Flex Pharma in 2019, which are measured at fair value on a recurring basis for the three and nine months ended September 30, 2021: Description Balance at December 31, 2020 Change in Fair Value Balance at September 30, 2021 Warrant liability $ 59,211 $ (5,205) $ 54,006 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Variables Used in Black-Scholes Model | Variables used in the Black-Scholes model are as follows: September 30, 2021 December 31, 2020 Discount rate 0.53% 0.27% Expected life (years) 3.31 years 4.06 years Expected volatility 130.23% 130.56% Expected dividend —% —% |
EQUITY-BASED COMPENSATION (Tabl
EQUITY-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Fair Value Assumptions | The fair value of the option grants awarded during each of the nine month periods ended September 30, 2021 and 2020 was $0.1 million and $0.7 million, respectively, which has been estimated with the following assumptions on the grant date. 3/10/2021 6/16/2021 9/2/2021 Risk-free interest rate 1.00 % 1.09 % 0.93 % Volatility 133.35 % 131.06 % 130.44 % Expected life (years) 6.00 6.00 6.00 Expected dividend yield 0 % 0 % 0 % |
Summary of Stock Option Activity | The following table summarizes stock option activity for employees and non-employees for the nine months ended September 30, 2021 and 2020: Shares Weighted-Average Weighted-Average Aggregate Outstanding at December 31, 2019 166,233 $34.42 6.53 $— Granted 743,118 0.61 Exercised — Forfeited (36,613) — Expired (30,766) Outstanding at September 30, 2020 841,972 $4.55 9.32 Exercisable at September 30, 2020 69,813 $37.84 5.43 $— Outstanding at December 31, 2020 1,563,972 $2.78 9.47 $175,770 Granted 79,000 $1.04-$1.49 Exercised — Forfeited (45,000) Expired — Outstanding at September 30, 2021 1,597,972 $2.75 8.75 $271,540 Exercisable at September 30, 2021 323,730 $9.27 7.74 $34,440 |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accounting Policies [Abstract] | ||||
Impairment charges of long-lived assets | $ 0 | $ 0 | $ 0 | $ 0 |
Impairment of goodwill | $ 0 | $ 0 | $ 0 | $ 0 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 9,531,198 | 10,075,278 |
GRANTS RECEIVABLE (Details)
GRANTS RECEIVABLE (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Grants receivable from CPRIT | $ 2,086,157 | $ 3,855,996 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid clinical trial expenses | $ 135,227 | $ 0 |
Prepaid insurance | 963,797 | 684,268 |
Other prepaid and current assets | 95,231 | 137,782 |
Total prepaid expenses and other current assets | $ 1,194,255 | $ 822,050 |
PREPAID EXPENSES AND OTHER CU_4
PREPAID EXPENSES AND OTHER CURRENT ASSETS - Narrative (Details) - Note Payable - USD ($) $ in Millions | Jul. 31, 2020 | Jul. 31, 2019 |
Short-term Debt [Line Items] | ||
Principal amount | $ 0.9 | $ 0.9 |
Interest rate | 2.49% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | Jul. 01, 2016 | Jun. 30, 2016 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2011 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Award amount | $ 16,100,000 | $ 18,700,000 | |||
Award term | 3 years | ||||
Continued payments, percent of net sales | 1.00% | ||||
Matching funds requirement | 50.00% | ||||
Grants receivable from CPRIT | $ 2,086,157 | $ 3,855,996 | |||
University of Utah Research Foundation | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Ownership percentage by noncontrolling owner | 2.00% |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Change in Fair Value | $ 9,073 | $ 45,103 | $ 5,205 | $ 265,538 |
Level 3 | Recurring | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at December 31, 2020 | 59,211 | |||
Change in Fair Value | (5,205) | |||
Balance at September 30, 2021 | $ 54,006 | $ 54,006 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) | Jul. 02, 2021shares | Mar. 08, 2021USD ($)$ / sharesshares | Feb. 05, 2021shares | Aug. 03, 2020USD ($)$ / sharesshares | Feb. 11, 2020USD ($)$ / sharesshares | Jul. 19, 2019USD ($)$ / sharesshares | Jul. 18, 2019dayshares | Sep. 30, 2021USD ($)shares | Mar. 31, 2021USD ($)shares | Sep. 30, 2020USD ($)shares | Jun. 30, 2020shares | Mar. 31, 2020USD ($)shares | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($) | Jul. 01, 2021$ / sharesshares | Dec. 31, 2020 | Dec. 11, 2020$ / sharesshares | Feb. 29, 2020$ / sharesshares |
Class of Stock [Line Items] | ||||||||||||||||||
Shares issued, value | $ | $ 23,000,000 | $ 6,200,000 | $ 406,363 | $ 26,850,021 | $ 5,331,778 | $ 9,467,166 | ||||||||||||
Expected life (years) | 3 years 3 months 21 days | 3 years 3 months 21 days | 5 years | 4 years 21 days | ||||||||||||||
Exercise price (in dollar per share) | $ / shares | $ 15.17 | $ 1.182 | ||||||||||||||||
Number of shares called by warrants (in shares) | 142,711 | 3,964,065 | ||||||||||||||||
Proceeds from warrants exercised for cash | $ | $ 1,485,351 | $ 636,214 | ||||||||||||||||
Consecutive trading days | day | 10 | |||||||||||||||||
Wedbush | Satisfy Success Fee | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Expected life (years) | 5 years | |||||||||||||||||
Exercise price (in dollar per share) | $ / shares | $ 18.90 | |||||||||||||||||
Number of shares called by warrants (in shares) | 42,928 | |||||||||||||||||
Warrant value | $ | $ 500,000 | |||||||||||||||||
Due to related party | $ | 1,000,000 | |||||||||||||||||
Cash payment to related party | $ | $ 500,000 | |||||||||||||||||
Over-Allotment Option | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares issued, value | $ | $ 11,000,000 | |||||||||||||||||
Shares issued (in shares) | 1,252,173 | |||||||||||||||||
Sales Agreement | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares issued, value | $ | $ 6,700,000 | |||||||||||||||||
Shares issued (in shares) | 25,000,000 | 6,300,000 | 3,214,234 | |||||||||||||||
Minimum | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Exercise price (in dollar per share) | $ / shares | $ 0.90 | |||||||||||||||||
Common Stock | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares issued, value | $ | $ 40 | $ 1,963 | $ 513 | $ 835 | ||||||||||||||
Shares issued (in shares) | 16,806,722 | 5,130,390 | 8,353,480 | 393,741 | 19,627,215 | 5,130,390 | 8,353,480 | |||||||||||
Price per share (in dollar per share) | $ / shares | $ 1.3685 | $ 1.20 | ||||||||||||||||
Number of rights per share (in shares) | 1 | |||||||||||||||||
Number of shares called by warrants (in shares) | 9,599,999 | |||||||||||||||||
Warrants exercised for cash, net (in shares) | 1,298,567 | 50,000 | 503,230 | 1,298,567 | ||||||||||||||
Warrants outstanding (in shares) | 7,747,587 | 7,747,587 | ||||||||||||||||
Common Stock | Over-Allotment Option | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Expected life (years) | 5 years | 5 years | ||||||||||||||||
Number of rights per share (in shares) | 1 | 1 | ||||||||||||||||
Exercise price (in dollar per share) | $ / shares | $ 1.15 | |||||||||||||||||
Preferred Stock | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares issued, value | $ | $ 125 | |||||||||||||||||
Shares issued (in shares) | 1,246,519 | |||||||||||||||||
Class A | Common Stock | Over-Allotment Option | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Number of shares issued (in shares) | 7,101,307 | |||||||||||||||||
Price per share (in dollar per share) | $ / shares | $ 1.15 | |||||||||||||||||
Exercise price (in dollar per share) | $ / shares | $ 1.15 | |||||||||||||||||
Class B | Preferred Stock | Over-Allotment Option | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Number of shares issued (in shares) | 1,246,519 | |||||||||||||||||
Price per share (in dollar per share) | $ / shares | $ 1.15 | |||||||||||||||||
Series A Preferred | Preferred Stock | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares issued (in shares) | 1,246,519 |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Variables used in Black-Scholes Model (Details) | Sep. 30, 2021 | Jul. 01, 2021 | Dec. 31, 2020 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Expected life (years) | 3 years 3 months 21 days | 5 years | 4 years 21 days |
Discount rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants measurement input | 0.53% | 0.27% | |
Expected volatility | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants measurement input | 130.23% | 130.56% | |
Expected dividend | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants measurement input | 0.00% | 0.00% |
EQUITY-BASED COMPENSATION - Nar
EQUITY-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of stock options granted (in shares) | 79,000 | 743,118 |
Fair value | $ 0.1 | $ 0.7 |
Unrecognized compensation cost, options | $ 1 | $ 0.4 |
Unrecognized compensation cost, recognition period | 2 years 5 months 12 days | |
2015 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares remaining available for grant of stock awards (in shares) | 1,026,690 | |
Number of stock options granted (in shares) | 182,000 | |
2015 Plan | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options, contractual term | 10 years | |
2015 Plan | Minimum | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
2015 Plan | Maximum | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years |
EQUITY-BASED COMPENSATION - Sch
EQUITY-BASED COMPENSATION - Schedule of Fair Value Assumptions (Details) | Sep. 02, 2021 | Jun. 16, 2021 | Mar. 10, 2021 |
Share-based Payment Arrangement [Abstract] | |||
Risk-free interest rate | 0.93% | 1.09% | 1.00% |
Volatility | 130.44% | 131.06% | 133.35% |
Expected life (years) | 6 years | 6 years | 6 years |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
EQUITY-BASED COMPENSATION - Sum
EQUITY-BASED COMPENSATION - Summary of Stock Option Activity (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | ||||
Outstanding, beginning balance (in shares) | 1,563,972 | 166,233 | 166,233 | |
Granted (in shares) | 79,000 | 743,118 | ||
Exercised (in shares) | 0 | 0 | ||
Forfeited (in shares) | (45,000) | (36,613) | ||
Expired (in shares) | 0 | (30,766) | ||
Outstanding, ending balance (in shares) | 1,597,972 | 841,972 | 1,563,972 | 166,233 |
Exercisable (in shares) | 323,730 | 69,813 | ||
Weighted-Average Exercise Price | ||||
Weighted-average exercise price, beginning balance (in dollar per share) | $ 2.78 | $ 34.42 | $ 34.42 | |
Granted, weighted-average exercise price (in dollar per share) | 0.61 | |||
Forfeited, weighted-average exercise price (in dollar per share) | 0 | |||
Weighted-average exercise price, ending balance (in dollar per share) | 2.75 | 4.55 | $ 2.78 | $ 34.42 |
Exercisable, weighted-average exercise price (in dollar per share) | $ 9.27 | $ 37.84 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Outstanding, weighted-average remaining contractual term | 8 years 9 months | 9 years 3 months 25 days | 9 years 5 months 19 days | 6 years 6 months 10 days |
Exercisable, weighted-average remaining contractual term | 7 years 8 months 26 days | 5 years 5 months 4 days | ||
Outstanding, aggregate intrinsic value | $ 271,540 | $ 175,770 | $ 0 | |
Exercisable, aggregate intrinsic value | $ 34,440 | $ 0 | ||
Minimum | ||||
Weighted-Average Exercise Price | ||||
Granted, weighted-average exercise price (in dollar per share) | $ 1.04 | |||
Maximum | ||||
Weighted-Average Exercise Price | ||||
Granted, weighted-average exercise price (in dollar per share) | $ 1.49 |