Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2020 | Feb. 10, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Entity Registrant Name | ESSA Pharma Inc. | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2020 | |
Entity File Number | 001-37410 | |
Entity Incorporation, State or Country Code | A1 | |
Entity Address, Country | CA | |
Entity Tax Identification Number | 47-2569713 | |
Entity Address, Address Line One | Suite 720 | |
Entity Address, Address Line Two | 999 West Broadway | |
Entity Address, City or Town | Vancouver | |
Entity Address State Or Province | BC | |
Entity Address, Postal Zip Code | V5Z 1K5 | |
City Area Code | 778 | |
Local Phone Number | 331-0962 | |
Title of 12(b) Security | Common Shares | |
Trading Symbol | EPIX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001633932 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 33,780,064 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
ASSETS, Current | ||
Cash and cash equivalents | $ 52,484,512 | $ 56,320,763 |
Short-term investments (Note 4) | 22,016,344 | 22,011,337 |
Receivables | 231,191 | 309,538 |
Prepaids (Note 5) | 1,137,723 | 1,600,128 |
Operating lease right-of-use assets (Note 7) | 27,581 | 55,162 |
Total current assets | 75,897,351 | 80,296,928 |
Deposits | 277,637 | 277,637 |
Total assets | 76,174,988 | 80,574,565 |
LIABILITIES, Current | ||
Accounts payable and accrued liabilities (Note 6) | 2,005,389 | 1,144,230 |
Current portion of operating lease liability (Note 7) | 29,988 | 59,094 |
Total current liabilities | 2,035,377 | 1,203,324 |
Derivative liabilities (Note 9) | 38,246 | 127,376 |
Total liabilities | 2,073,623 | 1,330,700 |
Shareholders' equity | ||
Common shares 33,605,383 issued and outstanding (September 30, 2020 - 32,064,411) (Note 10) | 134,387,525 | 131,086,364 |
Additional paid-in capital (Note 10) | 29,289,327 | 31,204,284 |
Accumulated other comprehensive loss | (2,076,479) | (2,076,479) |
Accumulated deficit | (87,499,008) | (80,970,304) |
Total stockholders equity | 74,101,365 | 79,243,865 |
Total liabilities and shareholders' equity | $ 76,174,988 | $ 80,574,565 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2020 | Sep. 30, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, shares issued | 33,605,383 | 32,064,411 |
Common stock, shares outstanding | 33,605,383 | 32,064,411 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
OPERATING EXPENSES | ||
Research and development | $ 4,485,772 | $ 2,587,148 |
Financing costs (Notes 7 and 8) | 1,181 | 215,501 |
General and administration | 2,208,917 | 2,139,165 |
Total operating expenses | (6,695,870) | (4,941,814) |
Foreign exchange | 7,196 | 6,209 |
Interest income | 35,691 | 100,965 |
Derivative liability gain (loss) (Note 9) | 89,130 | (56,633) |
Loss for the period before taxes | (6,563,853) | (4,891,273) |
Income tax recovery | 35,149 | 278,000 |
Loss and comprehensive loss for the period | $ (6,528,704) | $ (4,613,273) |
Basic and diluted loss per common share | $ (0.20) | $ (0.22) |
Weighted average number of common shares outstanding - basic and diluted | 33,343,488 | 20,762,374 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Loss for the period | $ (6,528,704) | $ (4,613,273) |
Items not affecting cash and cash equivalents: | ||
Amortization of right-of-use asset | 27,581 | 27,581 |
Accretion of lease liability | 1,181 | 4,422 |
Derivative liability (gain) loss | (89,130) | 56,633 |
Interest income | (5,007) | 0 |
Finance expense | 0 | 211,079 |
Unrealized foreign exchange | 13,952 | (11,510) |
Share-based payments | 1,204,985 | 1,253,621 |
Income tax expense (recovery) | (35,149) | (278,000) |
Income tax recovery | 0 | (278,000) |
Changes in non-cash working capital items: | ||
Receivables | 102,308 | 10,136 |
Prepaids | 462,405 | 143,675 |
Accounts payable and accrued liabilities | 867,841 | (162,976) |
Income tax payable | 0 | (2,000) |
Net cash used in operating activities | (3,942,588) | (3,360,612) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Lease payments | (30,287) | (29,405) |
Share issuance costs | 0 | (314,603) |
Options exercised | 153,701 | 0 |
Warrants exercised | 149 | 227,864 |
Shares purchased through employee share purchase plan | 27,369 | 0 |
Loan principal repaid | 0 | (3,199,799) |
Loan final payment paid | 0 | (688,000) |
Interest and financing costs paid | 0 | (32,235) |
Net cash provided by (used in) financing activities | 150,932 | (4,036,178) |
Effect of foreign exchange on cash and cash equivalents | (44,595) | 8,487 |
Change in cash and cash equivalents for the period | (3,836,251) | (7,388,303) |
Cash and cash equivalents, beginning of period | 56,320,763 | 53,322,723 |
Cash and cash equivalents, end of period | $ 52,484,512 | $ 45,934,420 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) | Common Shares [Member] | Obligation To Issue Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings (Deficit) [Member] | Total |
Beginning Balance at Sep. 30, 2019 | $ 78,545,108 | $ 30,038,134 | $ (2,076,479) | $ (57,524,934) | $ 48,981,829 | |
Beginning Balance, in shares at Sep. 30, 2019 | 20,762,374 | |||||
Share issuance costs | $ (3,598) | (7,054) | (10,652) | |||
Funds received for warrant exercise | $ 227,864 | 227,864 | ||||
Share-based payments | 1,253,621 | 1,253,621 | ||||
Loss for the period | (4,613,273) | (4,613,273) | ||||
Ending Balance at Dec. 31, 2019 | $ 78,541,510 | $ 227,864 | 31,284,701 | (2,076,479) | (62,138,207) | 45,839,389 |
Ending Balance, in shares at Dec. 31, 2019 | 20,762,374 | |||||
Beginning Balance at Sep. 30, 2019 | $ 78,545,108 | 30,038,134 | (2,076,479) | (57,524,934) | $ 48,981,829 | |
Beginning Balance, in shares at Sep. 30, 2019 | 20,762,374 | |||||
Options exercised, shares | 416 | |||||
Ending Balance at Sep. 30, 2020 | $ 131,086,364 | 31,204,284 | (2,076,479) | (80,970,304) | $ 79,243,865 | |
Ending Balance, in shares at Sep. 30, 2020 | 32,064,411 | |||||
Pre-funded warrants exercised | $ 2,987,158 | (2,987,009) | 149 | |||
Pre-funded warrants exercised, shares | 1,493,504 | |||||
Options exercised | $ 274,365 | (120,664) | $ 153,701 | |||
Options exercised, shares | 42,207 | 42,207 | ||||
Shares issued through employee share purchase plan | $ 39,638 | (12,269) | $ 27,369 | |||
Shares issued through employee share purchase plan, shares | 5,261 | |||||
Share-based payments | 1,204,985 | 1,204,985 | ||||
Loss for the period | (6,528,704) | (6,528,704) | ||||
Ending Balance at Dec. 31, 2020 | $ 134,387,525 | $ 29,289,327 | $ (2,076,479) | $ (87,499,008) | $ 74,101,365 | |
Ending Balance, in shares at Dec. 31, 2020 | 33,605,383 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 3 Months Ended |
Dec. 31, 2020 | |
NATURE OF OPERATIONS | |
NATURE OF OPERATIONS | 1. NATURE OF OPERATIONS Nature of Operations The Company was incorporated under the laws of the Province of British Columbia on January 6, 2009. The Company’s head office address is Suite 720 – 999 West Broadway, Vancouver, BC, V5Z 1K5. The registered and records office address is the 26 th The Company is focused on the development of small molecule drugs for the treatment of prostate cancer. The Company has acquired a license to certain patents (“NTD”) which were the joint property of the British Columbia Cancer Agency and the University of British Columbia. As of December 31, 2020, no products are in commercial production or use. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Dec. 31, 2020 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 2. BASIS OF PRESENTATION Basis of Presentation These accompanying unaudited condensed consolidated interim financial statements, including comparatives, have been prepared in accordance with United States’ Generally Accepted Accounting Principles (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, these condensed consolidated interim financial statements do not include all of the information and footnotes required for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and notes for the year ended September 30, 2020 and included in the Company’s 2020 Annual Report on Form 10-K filed with the SEC and with the securities commissions in Alberta and Ontario on December 15, 2020. These unaudited condensed consolidated interim financial statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods presented. The results of operations for the three months ended December 31, 2020 and 2019 are not necessarily indicative of results that can be expected for a full year. These unaudited condensed consolidated interim financial statements follow the same significant accounting policies as those described in the notes to the audited consolidated financial statements of the Company included in the Company’s 2020 Annual Report on Form 10-K for the year ended September 30, 2020, with the exception of the policies described in Note 3. These accompanying unaudited condensed consolidated interim financial statements include the accounts of the Company and its wholly owned subsidiaries. Inter-company transactions, balances and unrealized gains or losses on transactions are eliminated upon consolidation. The accompanying condensed consolidated interim financial statements have been prepared on a historical cost basis except for certain financial assets measured at fair value. All amounts expressed in these accompanying condensed consolidated interim financial statements and the accompanying notes are expressed in United States dollars, except per share data and where otherwise indicated. References to “$” are to United States dollars and references to “C$” are to Canadian dollars. Use of Estimates The preparation of the accompanying condensed consolidated interim financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events that affect the reported amounts of assets, liabilities, expenses, contingent assets and contingent liabilities as of the end of, or during, the reporting period. Actual results could significantly differ from those estimates. Significant areas requiring management to make estimates include the derivative liabilities, the valuation of equity instruments issued for services, income taxes and the product development and relocation grant. Further details of the nature of these assumptions and conditions may be found in the relevant notes to these condensed consolidated interim financial statements. The effect of a change in an accounting estimate is recognized prospectively by including it in comprehensive income in the period of the change, if the change affects that period only, or in the period of the change and future periods, if the change affects both. Estimates and assumptions are reviewed quarterly. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Dec. 31, 2020 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | 3. RECENT ACCOUNTING PRONOUNCEMENTS Recent accounting pronouncements adopted ASU 2018-13 – Fair Value Measurement (Topic 820-10) In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820-10): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which changes the fair value measurement disclosure requirements of ASC Topic 820, Fair Value Measurements and Disclosures. Under this ASU, certain disclosure requirements for fair value measurements are eliminated, amended or added. These changes aim to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing the disclosures. The Company has adopted this standard as of October 1, 2020. The adoption of the standard had no impact on the Company’s consolidated financial statements and disclosures. ASU 2019-12 – Income Taxes (Topic 740) In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes by removing certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new ASU also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates. These changes aim to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing the disclosures. The Company has adopted this standard as of October 1, 2020. The adoption of the standard had no impact on the Company’s condensed consolidated interim financial statements and disclosures. ASU 2016-13 – Financial Instruments-Credit Losses (Topic 326) In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, including trade receivables. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model that requires the use of forward-looking information to calculate credit loss estimates. This guidance is effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company has adopted this standard as of October 1, 2020. The adoption of the standard had no impact on the Company’s condensed consolidated interim financial statements and disclosures. Recent accounting pronouncements not yet adopted ASU 2020-06 – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) In August 2020, the FASB issued ASU No. 2020-06 (“ASU 2020-06”) “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” ASU 2020-06 will simplify the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models will result in fewer embedded conversion features being separately recognized from the host contract as compared with current GAAP. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. ASU 2020-06 also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. ASU 2020-06 will be effective January 1, 2024, for the Company. Early adoption is permitted, but no earlier than January 1, 2021, including interim periods within that year. Management is currently evaluating the effect of the adoption of ASU 2020-06 on the consolidated financial statements, but currently does not believe ASU 2020-06 will have a significant impact on the Company’s accounting. ASU 2020-10 – Codification Improvements In October 2020, the FASB issued ASU 2020-10, Codification Improvements. The guidance contains improvements to the Codification by ensuring that all guidance that requires or provides an option for an entity to provide information in the notes to financial statements is codified in the Disclosure Section of the Codification. The guidance also contains Codifications that are varied in nature and may affect the application of the guidance in cases in which the original guidance may have been unclear. For public business entities, the amendments in the ASU are effective for fiscal years beginning after December 15, 2020. For all other entities, the amendments are effective for annual periods beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022. Early adoption is permitted. We do not expect the adoption of ASU 2020-10 to have a material impact on our condensed consolidated financial statements. Recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statement presentation or disclosures. |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 3 Months Ended |
Dec. 31, 2020 | |
SHORT-TERM INVESTMENTS | |
SHORT-TERM INVESTMENTS | 4. SHORT-TERM INVESTMENTS Short-term investments consist of guaranteed investment certificates (“GICs”) held at financial institutions purchased in accordance with the Company’s treasury policy. These GICs and term deposits bear interest at 0.25%-0.45% per annum and have maturities of up to 9 months. |
PREPAIDS
PREPAIDS | 3 Months Ended |
Dec. 31, 2020 | |
PREPAIDS | |
PREPAIDS | 5. PREPAIDS December 31, September 30, 2020 2020 Prepaid insurance $ 604,011 $ 825,014 Prepaid preclinical and clinical expenses and deposits 438,562 650,586 Other deposits and prepaid expenses 95,150 124,528 Balance, end of period $ 1,137,723 $ 1,600,128 |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 3 Months Ended |
Dec. 31, 2020 | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES December 31, September 30, 2020 2020 Accounts payable $ 1,375,781 $ 678,643 Accrued expenses 609,711 310,604 Accrued vacation 19,897 154,983 Balance, end of period $ 2,005,389 $ 1,144,230 |
OPERATING LEASE
OPERATING LEASE | 3 Months Ended |
Dec. 31, 2020 | |
OPERATING LEASE | |
OPERATING LEASE | 7. OPERATING LEASE The Company has one operating lease for the South San Francisco office from March 31, 2018 to March 31, 2021. The Company’s operating leases included on the balance sheet are as follows: Operating lease right-of-use asset Balance, September 30, 2019 $ — Adoption of ASC 842 165,486 Amortization (27,581) Balance, December 31, 2019 $ 137,905 Balance, September 30, 2020 $ 55,162 Amortization (27,581) Balance, December 31, 2020 $ 27,581 Operating lease liabilities Balance, September 30, 2019 $ — Adoption of ASC 842 165,486 Accretion 4,422 Lease payments (29,405) Balance, December 31, 2019 $ 140,503 Balance, September 30, 2020 $ 59,094 Accretion 1,181 Lease payments (30,287) Balance, December 31, 2020 $ 29,988 The Company recognizes a right-of-use asset for the right to use the underlying asset for the lease term, and a lease liability, which represents the present value of the Company’s obligation to make payments over the lease term. The present value of the lease payments is calculated using an incremental borrowing rate as the Company’s leases do not provide an implicit interest rate. At December 31, 2020, the Company’s incremental borrowing rate was 12.0% and the remaining lease term was 3 months. Operating lease costs of $30,287 (2019 - $29,405) and accretion expense of $1,181 (2019 - $4,422) have been recorded in “general and administrative expenses” and “financing costs” in the condensed consolidated interim statements of operations and comprehensive loss respectively. |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Dec. 31, 2020 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | 8. LONG-TERM DEBT On November 18, 2016, Silicon Valley Bank (“SVB”) entered into a $10,000,000 capital term loan facility agreement (“SVB Term Loan”) with the Company. The Company drew down $8,000,000 from the SVB Term Loan. The option to draw an additional $2,000,000 lapsed on July 31, 2017. In the year ended September 30, 2020, the Company repaid the balance owing for $3,708,955, comprising $3,199,799 in principal, $32,235 in accrued interest, $211,079 in financing costs and the Final Payment of $688,000. |
DERIVATIVE LIABILITIES
DERIVATIVE LIABILITIES | 3 Months Ended |
Dec. 31, 2020 | |
DERIVATIVE LIABILITIES | |
DERIVATIVE LIABILITIES | 9. DERIVATIVE LIABILITIES In January 2016, the Company completed a private placement of 227,273 units of the Company at $66.00 per unit (“Unit”) for gross proceeds of $14,999,992. Each Unit consisted of one common share of the Company, one 7-year 7-Year one half 2-year 2-Year 7-Year 2-Year 7-Year 7-Year 7-Year 7-Year 7-Year Additionally, the 2016 Warrants contain provisions which may require the Company to redeem the 2016 Warrants, at the option of the holder, in the event of a major transaction, such as a change of control or sale of the Company’s assets (“Major Transaction”). The redemption value would be subject to a Black-Scholes valuation at the time of exercise. In the event the consideration for a Major Transaction payable to the common shareholders is in cash, in whole or in part, the redemption of the 2016 Warrants would be made in cash pro-rata to the composition of the consideration. The potential for a cash settlement for the 2016 Warrants outside the control of the Company, in accordance with U.S. GAAP, requires the 2016 Warrants to be treated as financial liabilities measured at fair value through profit or loss. The 2016 Warrants are not traded in an active market. Valuation The Company uses the Black-Scholes option pricing model to estimate fair value. The following weighted average assumptions were used to estimate the fair value of the derivative warrant liabilities on December 31, 2019 and 2020: December 31, December 31, 2020 2019 Risk-free interest rate 0.20 % 1.69 % Expected life 2.03 years 3.04 years Expected annualized volatility 81.1 % 82.2 % Dividend — — Liquidity discount 20 % 20 % Sensitivity The derivative warrants are a recurring Level 3 fair value measurement. The key level 3 inputs used by management to determine the fair value are the market price, expected volatility and liquidity discount. If the market price were to increase by a factor of 10% this would increase the obligation by approximately $11,690 as of December 31, 2020. If the market price were to decrease by a factor of 10% this would decrease the obligation by approximately $9,987 as of December 31, 2020. If the volatility were to increase by 10%, this would increase the obligation by approximately $26,830 as of December 31, 2020. If the volatility were to decrease by 10%, this would decrease the obligation by approximately $19,011 as of December 31, 2020. The following table is a continuity schedule of changes to the Company’s derivative liabilities: Total Balance, September 30, 2020 $ 127,376 Change in fair value (89,130) Balance, December 31, 2020 $ 38,246 Derivatives with expected life of less than one year $ — Derivatives with expected life greater than one year $ 38,246 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Dec. 31, 2020 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | 10. SHAREHOLDERS’ EQUITY Authorized Unlimited common shares, without par value. Unlimited preferred shares, without par value. July 2020 Financing On July 31, 2020, the Company completed an underwritten public offering for aggregate gross proceeds of US$48,990,000 (the “ July 2020 Financing 30-day August 2019 Financing On August 27, 2019, the Company closed a public offering of equity securities of the Company in Canada and a concurrent private placement of equity securities in the United States (the “ August 2019 Financing Nomination Rights In connection with a January 2016 private placement of 227,273 Units, a Unit consisting of one common share, one 7-year one 2-year Clarus Equity incentive plans Restricted share units plan The Company has adopted a Restricted Share Unit Plan (“RSU Plan”) consistent with the policies and rules of the Nasdaq. Pursuant to the RSU Plan, RSUs may be granted with vesting criteria and periods are approved by the Board of Directors at its discretion. The RSUs issued under the RSU Plan may be accounted for as either equity-settled or cash-settled share-based payments. At December 31, 2020, there are no RSUs outstanding. As of December 31, 2020 the Stock Option Plan and RSU Plan have a combined maximum of 6,251,469 common shares which may be reserved for issuance. Employee Share Purchase Plan The Company has adopted an Employee Share Purchase Plan (“ESPP”) under which qualifying employees may be granted purchase rights (“Purchase Rights”) to the Company’s common shares at not less of 85% of the market price at the lesser of the date the Purchase Right is granted or exercisable. The Company currently holds offerings consisting of six-month periods commencing on January 1 and July 1 and ending on June 30 and December 31 of each calendar year. As of December 31, 2020, the ESPP has a maximum of 263,120 (2019 – 284,887) common shares reserved for issuance. Eligible employees are able to contribute up to 15% of their gross base earnings for purchases under the ESPP through regular payroll deductions. Purchase of shares under the ESPP are limited for each employee at $25,000 worth of the Company’s common shares (determined using the lesser of (i) the market price of a common share on the first day of an applicable purchase period and (ii) the market price of a common share on the purchase date) for each calendar year in which a purchase right is outstanding. During the three months ended December 31, 2020, the Company issued a total of 5,261 (2019 – Nil) common shares upon the exercise of Purchase Rights. The Company recognizes compensation expense for purchase rights on a straight-line basis over the service period. For the three months ended December 31, 2020 2019 Research and development expense $ 5,570 $ — General and administrative 565 — $ 6,135 $ — The Company measures the purchase rights based on their estimated grant date fair value using the Black-Scholes option pricing model and the estimated number of shares that can be purchased. The following weighted average assumptions were used for the valuation of purchase rights: For the three months ended December 31, 2020 2019 Risk-free interest rate 0.26 % — Expected life of share purchase rights 6 months — Expected annualized volatility 65.73 % — Dividend — — Stock options The Company has adopted a Stock Option Plan consistent with the policies and rules of the Nasdaq. Pursuant to the Stock Option Plan, options may be granted with expiry terms of up to 10 years, and vesting criteria and periods are approved by the Board of Directors at its discretion. The options issued under the Stock Option Plan are accounted for as equity-settled share-based payments. Stock option transactions are summarized as follows: Weighted Number Average of Options Exercise Price* Balance, September 30, 2019 1,122,461 $ 4.59 Options granted 4,218,000 3.31 Options exercised (416) (2.20) Options expired/forfeited (30,461) (28.46) Balance, September 30, 2020 5,309,584 $ 3.42 Options granted 1,524,646 7.00 Options exercised (42,207) (3.64) Options expired/forfeited (42,000) (3.40) Balance outstanding, December 31, 2020 6,750,023 $ 4.24 Balance exercisable, December 31, 2020 2,071,960 $ 3.52 * Options exercisable in Canadian dollars as of December 31, 2020 are translated at current rates to reflect the current weighted average exercise price in US dollars for all outstanding options. At December 31, 2020, options were outstanding enabling holders to acquire common shares as follows: Weighted average remaining Exercise price Number of options contractual life (years) $ 2.20 4,584 8.45 $ 3.23 3,903,000 8.77 * $ 3.59 40,000 8.80 $ 3.81 185,816 8.11 * $ 4.00 544,250 6.97 $ 4.67 218,227 8.84 * $ 7.00 1,524,646 9.95 C$ 4.90 284,500 6.81 * C$ 5.06 45,000 8.11 * 6,750,023 8.79 * 171,716 options exercised subsequent to December 31, 2020. (Note 14) Share-based compensation During the three months ended December 31, 2020, the Company granted a total of 1,524,646 (2019 – 4,218,000) stock options with a weighted average fair value of $5.52 per option (2019 – $2.63). The Company recognized share-based payments expense for options granted and vesting, net of recoveries on cancellations of unvested options, during the three months ended December 31, 2020 and 2019 with allocations to its functional expense as follows: For the three months ended December 31, 2020 2019 Research and development expense $ 281,854 $ 152,406 General and administrative 916,996 1,101,215 $ 1,198,850 $ 1,253,621 The following weighted average assumptions were used for the Black-Scholes option-pricing model valuation of stock options granted: For the three months ended December 31, 2020 2019 Risk-free interest rate 0.39 % 1.54 % Expected life of options 10.00 years 10.00 years Expected annualized volatility 78.00 % 77.00 % Dividend — — Warrants Warrant transactions are summarized as follows: Weighted Number Average of Warrants Exercise Price Balance, September 30, 2019 12,393,092 $ 1.31 Warrants exercised (3,120,115) (0.08) Balance, September 30, 2020 9,272,977 $ 1.73 Warrants exercised (1,493,504) (0.00) Balance outstanding and exercisable, December 31, 2020 7,779,473 $ 2.06 At December 31, 2020, warrants were outstanding enabling holders to acquire common shares as follows: Number of Warrants Exercise Price Expiry Date 227,273 (1) US$ 66.00 January 14, 2023 7,477 US$ 42.80 November 18, 2023 127,473 (2) US$ 4.00 January 9, 2023 47,250 US$ 4.00 January 16, 2023 7,370,000 US$ 0.0001 August 23, 2024 7,779,473 (1) Detailed terms of the 2016 Warrants are included in Note 9. (2) 3,825 broker warrants exercised subsequent to December 31, 2020. (Note 14) |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 11. RELATED PARTY TRANSACTIONS Included in accounts payable and accrued liabilities at December 31, 2020 is $87,213 (September 30, 2020 - $87,846) due to related parties with respect to key management personnel compensation and expense reimbursements. Amounts due to related parties are non-interest bearing, with no fixed terms of repayment. |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 3 Months Ended |
Dec. 31, 2020 | |
SEGMENTED INFORMATION | |
SEGMENTED INFORMATION | 12. SEGMENTED INFORMATION The Company works in one industry being the development of small molecule drugs for prostate cancer. The Company’s right of use asset is located in the USA. |
FINANCIAL INSTRUMENTS AND RISK
FINANCIAL INSTRUMENTS AND RISK | 3 Months Ended |
Dec. 31, 2020 | |
FINANCIAL INSTRUMENTS AND RISK | |
FINANCIAL INSTRUMENTS AND RISK | 13. FINANCIAL INSTRUMENTS AND RISK The Company’s financial instruments consist of cash and cash equivalents, short-term investments, receivables, accounts payable and accrued liabilities and derivative liabilities. The fair value of cash and cash equivalents, short-term investments, receivables and accounts payable and accrued liabilities approximates their carrying values due to their short term to maturity. The derivative liabilities are measured using level 3 inputs (Note 9). Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of judgement, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair values. Financial risk factors The Company’s risk exposures and the impact on the Company’s financial instruments are summarized below: Credit risk Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents, short-term investments and receivables. The Company’s receivables are mainly the balance remaining on the CPRIT Grant. The Company limits its exposure to credit loss by placing its cash with major financial institutions. The Company considers highly liquid investments with a maturity of up to twelve months when purchased to be short-term investments. As of December 31, 2020, cash and cash equivalents consisted of cash in Canada and the United States and term deposits in Canada. Balances exceed amounts insured by the Canada Deposit Insurance Corporation for up to C$100,000 and by the Federal Deposit Insurance Corporation for up to $250,000. Amounts due from government agencies are considered to have minimal credit risk. Liquidity risk The Company’s approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As of December 31, 2020, the Company had working capital of $73,861,974. The Company does not generate revenue and will be reliant on external financing to fund operations. Debt and equity financing are dependent on market conditions and may not be available on favorable terms. Market risk Market risk is the risk of loss that may arise from changes in market factors such as interest rates, and foreign exchange rates. (a) As of December 31, 2020, the Company has cash and cash equivalents balances and GICs which are interest bearing. Interest income is not significant to the Company’s projected operational budget and related interest rate fluctuations are not significant to the Company’s risk assessment. (b) The Company’s foreign currency risk exposure relates to net monetary assets denominated in Canadian dollars. The Company maintains its cash and cash equivalents in US dollars and converts on an as needed basis to discharge Canadian denominated expenditures. A 10% change in the foreign exchange rate between the Canadian and U.S. dollar in relation to Canadian dollars held at December 31, 2020 would result in a fluctuation of $27,619 in the net loss recognized for the period. The Company does not currently engage in hedging activities. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Dec. 31, 2020 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 14. SUBSEQUENT EVENTS On January 8, 2021, the Company issued 9,000 common shares for stock options exercised for gross proceeds of C $44,100 . On January 11, 2021, the Company issued 46,655 common shares for stock options exercised for gross proceeds of C$228,610 and 21,345 common shares for stock options exercised for gross proceeds of $72,262. On January 13, 2021, the Company issued 34,716 common shares for stock options exercised for gross proceeds of $126,124. On January 20, 2021, the Company issued 15,000 common shares for stock options exercised for gross proceeds of C$73,500 and 15,000 common shares for stock options exercised for gross proceeds of $48,450. On February 5, 2021, the Company issued 2,965 Common Shares upon the cashless exercise of 3,825 broker warrants. On February 9, 2021, the Company issued 30,000 common shares for stock options exercised for gross proceeds of C $147,000 . |
BASIS OF PRESENTATION (Policy)
BASIS OF PRESENTATION (Policy) | 3 Months Ended |
Dec. 31, 2020 | |
BASIS OF PRESENTATION | |
Basis of Presentation | Basis of Presentation These accompanying unaudited condensed consolidated interim financial statements, including comparatives, have been prepared in accordance with United States’ Generally Accepted Accounting Principles (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, these condensed consolidated interim financial statements do not include all of the information and footnotes required for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and notes for the year ended September 30, 2020 and included in the Company’s 2020 Annual Report on Form 10-K filed with the SEC and with the securities commissions in Alberta and Ontario on December 15, 2020. These unaudited condensed consolidated interim financial statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods presented. The results of operations for the three months ended December 31, 2020 and 2019 are not necessarily indicative of results that can be expected for a full year. These unaudited condensed consolidated interim financial statements follow the same significant accounting policies as those described in the notes to the audited consolidated financial statements of the Company included in the Company’s 2020 Annual Report on Form 10-K for the year ended September 30, 2020, with the exception of the policies described in Note 3. These accompanying unaudited condensed consolidated interim financial statements include the accounts of the Company and its wholly owned subsidiaries. Inter-company transactions, balances and unrealized gains or losses on transactions are eliminated upon consolidation. The accompanying condensed consolidated interim financial statements have been prepared on a historical cost basis except for certain financial assets measured at fair value. All amounts expressed in these accompanying condensed consolidated interim financial statements and the accompanying notes are expressed in United States dollars, except per share data and where otherwise indicated. References to “$” are to United States dollars and references to “C$” are to Canadian dollars. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Policy) | 3 Months Ended |
Dec. 31, 2020 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
Recent Accounting Pronouncements | Recent accounting pronouncements adopted ASU 2018-13 – Fair Value Measurement (Topic 820-10) In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820-10): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which changes the fair value measurement disclosure requirements of ASC Topic 820, Fair Value Measurements and Disclosures. Under this ASU, certain disclosure requirements for fair value measurements are eliminated, amended or added. These changes aim to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing the disclosures. The Company has adopted this standard as of October 1, 2020. The adoption of the standard had no impact on the Company’s consolidated financial statements and disclosures. ASU 2019-12 – Income Taxes (Topic 740) In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes by removing certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new ASU also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates. These changes aim to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing the disclosures. The Company has adopted this standard as of October 1, 2020. The adoption of the standard had no impact on the Company’s condensed consolidated interim financial statements and disclosures. ASU 2016-13 – Financial Instruments-Credit Losses (Topic 326) In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, including trade receivables. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model that requires the use of forward-looking information to calculate credit loss estimates. This guidance is effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company has adopted this standard as of October 1, 2020. The adoption of the standard had no impact on the Company’s condensed consolidated interim financial statements and disclosures. Recent accounting pronouncements not yet adopted ASU 2020-06 – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) In August 2020, the FASB issued ASU No. 2020-06 (“ASU 2020-06”) “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” ASU 2020-06 will simplify the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models will result in fewer embedded conversion features being separately recognized from the host contract as compared with current GAAP. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. ASU 2020-06 also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. ASU 2020-06 will be effective January 1, 2024, for the Company. Early adoption is permitted, but no earlier than January 1, 2021, including interim periods within that year. Management is currently evaluating the effect of the adoption of ASU 2020-06 on the consolidated financial statements, but currently does not believe ASU 2020-06 will have a significant impact on the Company’s accounting. ASU 2020-10 – Codification Improvements In October 2020, the FASB issued ASU 2020-10, Codification Improvements. The guidance contains improvements to the Codification by ensuring that all guidance that requires or provides an option for an entity to provide information in the notes to financial statements is codified in the Disclosure Section of the Codification. The guidance also contains Codifications that are varied in nature and may affect the application of the guidance in cases in which the original guidance may have been unclear. For public business entities, the amendments in the ASU are effective for fiscal years beginning after December 15, 2020. For all other entities, the amendments are effective for annual periods beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022. Early adoption is permitted. We do not expect the adoption of ASU 2020-10 to have a material impact on our condensed consolidated financial statements. Recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statement presentation or disclosures. |
PREPAIDS (Tables)
PREPAIDS (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
PREPAIDS | |
Schedule of Prepaid Expenses | December 31, September 30, 2020 2020 Prepaid insurance $ 604,011 $ 825,014 Prepaid preclinical and clinical expenses and deposits 438,562 650,586 Other deposits and prepaid expenses 95,150 124,528 Balance, end of period $ 1,137,723 $ 1,600,128 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |
Schedule of Accounts Payable and Accrued Liabilities | December 31, September 30, 2020 2020 Accounts payable $ 1,375,781 $ 678,643 Accrued expenses 609,711 310,604 Accrued vacation 19,897 154,983 Balance, end of period $ 2,005,389 $ 1,144,230 |
OPERATING LEASE (Tables)
OPERATING LEASE (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
OPERATING LEASE | |
Schedule of Operating Leases | The Company has one operating lease for the South San Francisco office from March 31, 2018 to March 31, 2021. The Company’s operating leases included on the balance sheet are as follows: Operating lease right-of-use asset Balance, September 30, 2019 $ — Adoption of ASC 842 165,486 Amortization (27,581) Balance, December 31, 2019 $ 137,905 Balance, September 30, 2020 $ 55,162 Amortization (27,581) Balance, December 31, 2020 $ 27,581 Operating lease liabilities Balance, September 30, 2019 $ — Adoption of ASC 842 165,486 Accretion 4,422 Lease payments (29,405) Balance, December 31, 2019 $ 140,503 Balance, September 30, 2020 $ 59,094 Accretion 1,181 Lease payments (30,287) Balance, December 31, 2020 $ 29,988 |
DERIVATIVE LIABILITIES (Tables)
DERIVATIVE LIABILITIES (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
DERIVATIVE LIABILITIES | |
Fair Value Measurement Inputs and Valuation Techniques | The Company uses the Black-Scholes option pricing model to estimate fair value. The following weighted average assumptions were used to estimate the fair value of the derivative warrant liabilities on December 31, 2019 and 2020: December 31, December 31, 2020 2019 Risk-free interest rate 0.20 % 1.69 % Expected life 2.03 years 3.04 years Expected annualized volatility 81.1 % 82.2 % Dividend — — Liquidity discount 20 % 20 % |
Schedule of Changes to Derivative Liabilities | The following table is a continuity schedule of changes to the Company’s derivative liabilities: Total Balance, September 30, 2020 $ 127,376 Change in fair value (89,130) Balance, December 31, 2020 $ 38,246 Derivatives with expected life of less than one year $ — Derivatives with expected life greater than one year $ 38,246 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock Option Activity | Stock option transactions are summarized as follows: Weighted Number Average of Options Exercise Price* Balance, September 30, 2019 1,122,461 $ 4.59 Options granted 4,218,000 3.31 Options exercised (416) (2.20) Options expired/forfeited (30,461) (28.46) Balance, September 30, 2020 5,309,584 $ 3.42 Options granted 1,524,646 7.00 Options exercised (42,207) (3.64) Options expired/forfeited (42,000) (3.40) Balance outstanding, December 31, 2020 6,750,023 $ 4.24 Balance exercisable, December 31, 2020 2,071,960 $ 3.52 * Options exercisable in Canadian dollars as of December 31, 2020 are translated at current rates to reflect the current weighted average exercise price in US dollars for all outstanding options. |
Summary of Stock Option Outstanding | At December 31, 2020, options were outstanding enabling holders to acquire common shares as follows: Weighted average remaining Exercise price Number of options contractual life (years) $ 2.20 4,584 8.45 $ 3.23 3,903,000 8.77 * $ 3.59 40,000 8.80 $ 3.81 185,816 8.11 * $ 4.00 544,250 6.97 $ 4.67 218,227 8.84 * $ 7.00 1,524,646 9.95 C$ 4.90 284,500 6.81 * C$ 5.06 45,000 8.11 * 6,750,023 8.79 * 171,716 options exercised subsequent to December 31, 2020. (Note 14) |
Summary of Warrants Activity | Warrant transactions are summarized as follows: Weighted Number Average of Warrants Exercise Price Balance, September 30, 2019 12,393,092 $ 1.31 Warrants exercised (3,120,115) (0.08) Balance, September 30, 2020 9,272,977 $ 1.73 Warrants exercised (1,493,504) (0.00) Balance outstanding and exercisable, December 31, 2020 7,779,473 $ 2.06 |
Summary of Warrants Outstanding | At December 31, 2020, warrants were outstanding enabling holders to acquire common shares as follows: Number of Warrants Exercise Price Expiry Date 227,273 (1) US$ 66.00 January 14, 2023 7,477 US$ 42.80 November 18, 2023 127,473 (2) US$ 4.00 January 9, 2023 47,250 US$ 4.00 January 16, 2023 7,370,000 US$ 0.0001 August 23, 2024 7,779,473 (1) Detailed terms of the 2016 Warrants are included in Note 9. (2) 3,825 broker warrants exercised subsequent to December 31, 2020. (Note 14) |
Employee Share Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share Based Compensation Expense | During the three months ended December 31, 2020, the Company issued a total of 5,261 (2019 – Nil) common shares upon the exercise of Purchase Rights. The Company recognizes compensation expense for purchase rights on a straight-line basis over the service period. For the three months ended December 31, 2020 2019 Research and development expense $ 5,570 $ — General and administrative 565 — $ 6,135 $ — |
Weighted Average Assumptions for the Valuation of Stock Options | The Company measures the purchase rights based on their estimated grant date fair value using the Black-Scholes option pricing model and the estimated number of shares that can be purchased. The following weighted average assumptions were used for the valuation of purchase rights: For the three months ended December 31, 2020 2019 Risk-free interest rate 0.26 % — Expected life of share purchase rights 6 months — Expected annualized volatility 65.73 % — Dividend — — |
Stock Options Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share Based Compensation Expense | The Company recognized share-based payments expense for options granted and vesting, net of recoveries on cancellations of unvested options, during the three months ended December 31, 2020 and 2019 with allocations to its functional expense as follows: For the three months ended December 31, 2020 2019 Research and development expense $ 281,854 $ 152,406 General and administrative 916,996 1,101,215 $ 1,198,850 $ 1,253,621 |
Weighted Average Assumptions for the Valuation of Stock Options | The following weighted average assumptions were used for the Black-Scholes option-pricing model valuation of stock options granted: For the three months ended December 31, 2020 2019 Risk-free interest rate 0.39 % 1.54 % Expected life of options 10.00 years 10.00 years Expected annualized volatility 78.00 % 77.00 % Dividend — — |
SHORT-TERM INVESTMENTS (Narrati
SHORT-TERM INVESTMENTS (Narrative) (Details) | Dec. 31, 2020 |
Maximum [Member] | |
Guaranteed investment certificates, interest rate | 0.45% |
Minimum [Member] | |
Guaranteed investment certificates, interest rate | 0.25% |
PREPAIDS (Schedule of Prepaid E
PREPAIDS (Schedule of Prepaid Expenses) (Details) - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
PREPAIDS | ||
Prepaid insurance | $ 604,011 | $ 825,014 |
Prepaid preclinical and clinical expenses and deposits | 438,562 | 650,586 |
Other deposits and prepaid expenses | 95,150 | 124,528 |
Balance, end of year | $ 1,137,723 | $ 1,600,128 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Schedule of Accounts Payable and Accrued Liabilities) (Details) - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ||
Accounts payable | $ 1,375,781 | $ 678,643 |
Accrued expenses | 609,711 | 310,604 |
Accrued vacation | 19,897 | 154,983 |
Balance, end of year | $ 2,005,389 | $ 1,144,230 |
OPERATING LEASE (Narrative) (De
OPERATING LEASE (Narrative) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Incremental borrowing rate | 12.00% | |
Remaining lease term | 3 months | |
Accretion expense | $ 1,181 | $ 4,422 |
General and Administrative Expenses [Member] | ||
Operating lease costs | 30,287 | 29,405 |
Financing costs [Member] | ||
Accretion expense | $ 1,181 | $ 4,422 |
OPERATING LEASE (Schedule of Op
OPERATING LEASE (Schedule of Operating Leases) (Details) - USD ($) | 3 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating lease right-of-use asset | ||||
Operating lease right-of-use assets | $ 27,581 | $ 137,905 | $ 55,162 | $ 0 |
Amortization | (27,581) | (27,581) | ||
Operating lease liabilities | ||||
Operating lease liabilities | 29,988 | 140,503 | $ 59,094 | $ 0 |
Accretion | 1,181 | 4,422 | ||
Lease payments | $ (30,287) | (29,405) | ||
ASU 2016-02 [Member] | ||||
Operating lease right-of-use asset | ||||
Operating lease right-of-use assets | 165,486 | |||
Operating lease liabilities | ||||
Operating lease liabilities | $ 165,486 |
LONG-TERM DEBT (Narrative) (Det
LONG-TERM DEBT (Narrative) (Details) - USD ($) | Nov. 18, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 31, 2017 |
LONG-TERM DEBT | ||||
Financing costs | $ 0 | $ 32,235 | ||
SVB Term Loan [Member] | ||||
LONG-TERM DEBT | ||||
Term loan | $ 10,000,000 | |||
Amount drawn from term loan facility | $ 8,000,000 | |||
Borrowing capacity lapsed | $ 2,000,000 | |||
Total Loan payment | 3,708,955 | |||
Principal amount paid | 3,199,799 | |||
Interest paid | 32,235 | |||
Financing costs | 211,079 | |||
Final payment | $ 688,000 |
DERIVATIVE LIABILITIES (Narrati
DERIVATIVE LIABILITIES (Narrative) (Details) | 1 Months Ended | |||
Jan. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / shares | Sep. 30, 2020$ / shares | Sep. 30, 2019$ / shares | |
DERIVATIVE LIABILITIES | ||||
Exercise price (in dollars per share) | $ / shares | $ 2.06 | $ 1.73 | $ 1.31 | |
Level 3 [Member] | Increase in market Price of warrants by 10% [Member] | ||||
DERIVATIVE LIABILITIES | ||||
Increase (decrease) in derivative liability due to change in market price | $ 11,690 | |||
Level 3 [Member] | Decrease in market Price of warrants by 10% [Member] | ||||
DERIVATIVE LIABILITIES | ||||
Increase (decrease) in derivative liability due to change in market price | (9,987) | |||
Level 3 [Member] | Increase in Volatility of warrants by 10% [Member] | ||||
DERIVATIVE LIABILITIES | ||||
Increase (decrease) in derivative liability due to change in volatility | 26,830 | |||
Level 3 [Member] | Decrease in Volatility of warrants by 10% [Member] | ||||
DERIVATIVE LIABILITIES | ||||
Increase (decrease) in derivative liability due to change in volatility | $ (19,011) | |||
Private Placement [Member] | ||||
DERIVATIVE LIABILITIES | ||||
Shares issued | shares | 227,273 | |||
Unit price (in dollars per share) | $ / shares | $ 66 | |||
Fair value of units issued | $ 14,999,992 | |||
Exercise price (in dollars per share) | $ / shares | $ 66 | |||
Units issued in private placement, conversion ratio | 1 | |||
Private Placement [Member] | 2 Year Warrants [Member] | ||||
DERIVATIVE LIABILITIES | ||||
Units issued in private placement, conversion ratio | 0.5 | |||
Term of warrant | 2 years | |||
Private Placement [Member] | 7 Year Warrants [Member] | ||||
DERIVATIVE LIABILITIES | ||||
Units issued in private placement, conversion ratio | 1 | |||
Term of warrant | 7 years |
DERIVATIVE LIABILITIES (Fair Va
DERIVATIVE LIABILITIES (Fair Value Measurement Inputs and Valuation Techniques) (Details) - Weighted Average [Member] | Dec. 31, 2020Y | Dec. 31, 2019Y |
Risk-free Interest Rate [Member] | ||
DERIVATIVE LIABILITIES | ||
Assumptions to fair value of the derivative warrant liabilities | 0.0020 | 0.0169 |
Expected Life [Member] | ||
DERIVATIVE LIABILITIES | ||
Assumptions to fair value of the derivative warrant liabilities | 2.03 | 3.04 |
Expected Annualized Volatility [Member] | ||
DERIVATIVE LIABILITIES | ||
Assumptions to fair value of the derivative warrant liabilities | 0.811 | 0.822 |
Dividend [Member] | ||
DERIVATIVE LIABILITIES | ||
Assumptions to fair value of the derivative warrant liabilities | 0 | 0 |
Liquidity Discount [Member] | ||
DERIVATIVE LIABILITIES | ||
Assumptions to fair value of the derivative warrant liabilities | 0.20 | 0.20 |
DERIVATIVE LIABILITIES (Schedul
DERIVATIVE LIABILITIES (Schedule of Changes of Derivative Liabilities) (Details) | 3 Months Ended |
Dec. 31, 2020USD ($) | |
DERIVATIVE LIABILITIES | |
Beginning balance | $ 127,376 |
Change in fair value | (89,130) |
Ending balance | 38,246 |
Derivatives with expected life of less than one year | $ 0 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) | Jul. 31, 2020USD ($)$ / sharesshares | Aug. 27, 2019USD ($)$ / sharesshares | Jan. 31, 2016$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Sep. 30, 2020shares |
SHAREHOLDERS' EQUITY | ||||||
Share issuance transaction costs | $ | $ 0 | $ 314,603 | ||||
Options granted | 1,524,646 | 4,218,000 | 4,218,000 | |||
Weighted average fair value of options granted | $ / shares | $ 5.52 | $ 2.63 | ||||
Employee Share Purchase Plan [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Shares issued | 5,261 | 0 | ||||
Offering term | 6 months | |||||
Maximum eligibility to common shares amount | $ | $ 25,000 | |||||
Stock Options [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Option expiration period | 10 years | |||||
RSU's [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
RSUs outstanding | 0 | |||||
Minimum [Member] | Employee Share Purchase Plan [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Price percentage of common share granted | 85.00% | |||||
Maximum [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common shares reserved for issuance | 6,251,469 | |||||
Maximum [Member] | Employee Share Purchase Plan [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Common shares reserved for issuance | 263,120 | 284,887 | ||||
Employee contribution percentage | 15.00% | |||||
July 2020 Financing [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Aggregate gross proceeds | $ | $ 48,990,000 | |||||
Shares issued | 7,100,000 | |||||
Offering price per share | $ / shares | $ 6 | |||||
Term of underwriters option | 30 days | |||||
Cash commissions paid | $ | $ 2,939,400 | |||||
Share issuance transaction costs | $ | $ 193,951 | |||||
Over Allotment Option [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Shares issued | 1,065,000 | |||||
August 2019 Financing [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Aggregate gross proceeds | $ | $ 36,000,000 | |||||
Shares issued | 6,080,596 | |||||
Offering price per share | $ / shares | $ 2 | |||||
Pre-funded warrants in lieu of common shares | 11,919,404 | |||||
Conversion of each prefunded warrant into common share | 1 | |||||
Term of warrant | 5 years | |||||
Cash commissions paid | $ | $ 1,978,770 | |||||
Share issuance transaction costs | $ | $ 698,162 | |||||
Private Placement [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Shares issued | 227,273 | |||||
Offering price per share | $ / shares | $ 66 | |||||
Units issued in private placement, conversion ratio | 1 | |||||
Private Placement [Member] | 2 Year Warrants [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Term of warrant | 2 years | |||||
Units issued in private placement, conversion ratio | 0.5 | |||||
Private Placement [Member] | 7 Year Warrants [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Term of warrant | 7 years | |||||
Units issued in private placement, conversion ratio | 1 | |||||
Private Placement [Member] | Clarus Lifesciences III, L.P [Member] | ||||||
SHAREHOLDERS' EQUITY | ||||||
Shares issued | 106,061 | |||||
Minimum number of shares required to be held for nomination rights | 53,030 |
SHAREHOLDERS' EQUITY (Schedule
SHAREHOLDERS' EQUITY (Schedule of Share Based Compensation Expenses) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Share Purchase Plan [Member] | ||
SHAREHOLDERS' EQUITY | ||
Compensation Expense | $ 6,135 | $ 0 |
Employee Share Purchase Plan [Member] | Research and Development [Member] | ||
SHAREHOLDERS' EQUITY | ||
Compensation Expense | 5,570 | 0 |
Employee Share Purchase Plan [Member] | General and Administrative Expenses [Member] | ||
SHAREHOLDERS' EQUITY | ||
Compensation Expense | 565 | 0 |
Stock Options Plan [Member] | ||
SHAREHOLDERS' EQUITY | ||
Compensation Expense | 1,198,850 | 1,253,621 |
Stock Options Plan [Member] | Research and Development [Member] | ||
SHAREHOLDERS' EQUITY | ||
Compensation Expense | 281,854 | 152,406 |
Stock Options Plan [Member] | General and Administrative Expenses [Member] | ||
SHAREHOLDERS' EQUITY | ||
Compensation Expense | $ 916,996 | $ 1,101,215 |
SHAREHOLDERS' EQUITY (Weighted
SHAREHOLDERS' EQUITY (Weighted Average Assumptions for the Valuation of Purchase Rights) (Details) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Share Purchase Plan [Member] | ||
Weighted average assumptions | ||
Risk-free interest rate | 0.26% | 0.00% |
Expected life of share purchase options | 6 months | |
Expected annualized volatility | 65.73% | 0.00% |
Dividend | 0.00% | 0.00% |
Stock Options Plan [Member] | ||
Weighted average assumptions | ||
Risk-free interest rate | 0.39% | 1.54% |
Expected life of share purchase options | 10 years | 10 years |
Expected annualized volatility | 78.00% | 77.00% |
Dividend | 0.00% | 0.00% |
SHAREHOLDERS' EQUITY (Summary o
SHAREHOLDERS' EQUITY (Summary of Stock Option Activity) (Details) - $ / shares | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Feb. 11, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Number of Options | ||||
Beginning balance (in shares) | 6,750,023 | 5,309,584 | 1,122,461 | 1,122,461 |
Options granted (in shares) | 1,524,646 | 4,218,000 | 4,218,000 | |
Options exercised (in shares) | (171,716) | (42,207) | (416) | |
Options expired/forfeited (in shares) | (42,000) | (30,461) | ||
Ending balance (in shares) | 6,750,023 | 5,309,584 | ||
Balance exercisable (in shares) | 2,071,960 | |||
Weighted Average Exercise Price | ||||
Beginning balance (in dollars per share) | $ 4.24 | $ 3.42 | $ 4.59 | $ 4.59 |
Options granted (in dollars per share) | 7 | 3.31 | ||
Options exercised (in dollars per share) | (3.64) | (2.20) | ||
Options expired/forfeited (in dollars per share) | (3.40) | (28.46) | ||
Ending balance (in dollars per share) | 4.24 | $ 3.42 | ||
Options exercisable (in dollars per share) | $ 3.52 |
SHAREHOLDERS' EQUITY (Summary_2
SHAREHOLDERS' EQUITY (Summary of Stock Option Outstanding) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 11, 2021shares | Dec. 31, 2020$ / sharesshares | Sep. 30, 2020$ / sharesshares | Dec. 31, 2020$ / sharesshares | Sep. 30, 2019$ / sharesshares | |
SHAREHOLDERS' EQUITY | |||||
Stock options, Exercise price | $ / shares | $ 4.24 | $ 3.42 | $ 4.59 | ||
Number of options | 6,750,023 | 5,309,584 | 6,750,023 | 1,122,461 | |
Weighted average remaining contractual life (years) | 8 years 9 months 14 days | ||||
Common stock issued for stock options exercised, shares | 171,716 | 42,207 | 416 | ||
Exercise Price $2.20 [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Stock options, Exercise price | $ / shares | $ 2.20 | ||||
Number of options | 4,584 | 4,584 | |||
Weighted average remaining contractual life (years) | 8 years 5 months 12 days | ||||
Exercise Price $3.23 [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Stock options, Exercise price | $ / shares | $ 3.23 | ||||
Number of options | 3,903,000 | 3,903,000 | |||
Weighted average remaining contractual life (years) | 8 years 9 months 7 days | ||||
Exercise Price $3.59 [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Stock options, Exercise price | $ / shares | $ 3.59 | ||||
Number of options | 40,000 | 40,000 | |||
Weighted average remaining contractual life (years) | 8 years 9 months 18 days | ||||
Exercise Price $3.81 [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Stock options, Exercise price | $ / shares | $ 3.81 | ||||
Number of options | 185,816 | 185,816 | |||
Weighted average remaining contractual life (years) | 8 years 1 month 9 days | ||||
Exercise Price $4.00 [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Stock options, Exercise price | $ / shares | $ 4 | ||||
Number of options | 544,250 | 544,250 | |||
Weighted average remaining contractual life (years) | 6 years 11 months 19 days | ||||
Exercise Price $4.67 [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Stock options, Exercise price | $ / shares | $ 4.67 | ||||
Number of options | 218,227 | 218,227 | |||
Weighted average remaining contractual life (years) | 8 years 10 months 2 days | ||||
Exercise Price $7.00 [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Stock options, Exercise price | $ / shares | $ 7 | ||||
Number of options | 1,524,646 | 1,524,646 | |||
Weighted average remaining contractual life (years) | 9 years 11 months 12 days | ||||
Exercise Price C$4.90 [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Stock options, Exercise price | $ / shares | $ 4.90 | ||||
Number of options | 284,500 | 284,500 | |||
Weighted average remaining contractual life (years) | 6 years 9 months 21 days | ||||
Exercise Price C$5.06 [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Stock options, Exercise price | $ / shares | $ 5.06 | ||||
Number of options | 45,000 | 45,000 | |||
Weighted average remaining contractual life (years) | 8 years 1 month 9 days |
SHAREHOLDERS' EQUITY (Summary_3
SHAREHOLDERS' EQUITY (Summary of Warrants Activity) (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Sep. 30, 2020 | |
Number of Warrants | ||
Number of Warrants, Beginning balance (in shares) | 9,272,977 | 12,393,092 |
Warrants exercised (in shares) | (1,493,504) | (3,120,115) |
Number of Warrants, Ending balance (in shares) | 7,779,473 | 9,272,977 |
Weighted Average Exercise Price | ||
Weighted Average Exercise Price, Beginning balance (in dollar per share) | $ 1.73 | $ 1.31 |
Weighted average exercise price, warrants exercised (in dollar per share) | 0 | (0.08) |
Weighted Average Exercise Price, Ending balance (in dollar per share) | $ 2.06 | $ 1.73 |
SHAREHOLDERS' EQUITY (Summary_4
SHAREHOLDERS' EQUITY (Summary of Warrants Outstanding) (Details) - $ / shares | Feb. 05, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 |
Warrant outstanding and Exercise price | ||||
Number of Warrants | 7,779,473 | 9,272,977 | 12,393,092 | |
Exercise price (in dollars per share) | $ 2.06 | $ 1.73 | $ 1.31 | |
Warrants Exercise Price $66.00 [Member] | ||||
Warrant outstanding and Exercise price | ||||
Number of Warrants | 227,273 | |||
Exercise price (in dollars per share) | $ 66 | |||
Expiry Date | Jan. 14, 2023 | |||
Warrants Exercise Price $42.80 [Member] | ||||
Warrant outstanding and Exercise price | ||||
Number of Warrants | 7,477 | |||
Exercise price (in dollars per share) | $ 42.80 | |||
Expiry Date | Nov. 18, 2023 | |||
Warrants Exercise Price $4.00 [Member] | ||||
Warrant outstanding and Exercise price | ||||
Number of Warrants | 127,473 | |||
Exercise price (in dollars per share) | $ 4 | |||
Expiry Date | Jan. 9, 2023 | |||
Warrants Exercise Price $4.00 [Member] | ||||
Warrant outstanding and Exercise price | ||||
Number of Warrants | 47,250 | |||
Exercise price (in dollars per share) | $ 4 | |||
Expiry Date | Jan. 16, 2023 | |||
Warrants Exercise Price $0.0001 [Member] | ||||
Warrant outstanding and Exercise price | ||||
Number of Warrants | 7,370,000 | |||
Exercise price (in dollars per share) | $ 0.0001 | |||
Expiry Date | Aug. 23, 2024 | |||
Subsequent Event [Member] | ||||
Warrant outstanding and Exercise price | ||||
Number of broker warrants exercised | 3,825 |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
Accounts Payable and Accrued Liabilities [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 87,213 | $ 87,846 |
SEGMENTED INFORMATION (Narrativ
SEGMENTED INFORMATION (Narrative) (Details) | 3 Months Ended |
Dec. 31, 2020segment | |
SEGMENTED INFORMATION | |
Number of industries | 1 |
FINANCIAL INSTRUMENTS AND RISK
FINANCIAL INSTRUMENTS AND RISK (Narrative) (Details) | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Working Capital | $ 73,861,974 |
10% Change in Foreign Exchange Rate [Member] | |
Foreign currency risk, fluctuation in the net income (loss) reported due to change in exchange rate | $ 27,619 |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) | Feb. 09, 2021CAD ($)shares | Feb. 05, 2021shares | Jan. 20, 2021USD ($)shares | Jan. 20, 2021CAD ($)shares | Jan. 13, 2021USD ($)shares | Jan. 11, 2021USD ($)shares | Jan. 11, 2021CAD ($)shares | Jan. 08, 2021CAD ($)shares | Feb. 11, 2021shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Sep. 30, 2020shares |
Subsequent Event [Line Items] | ||||||||||||
Common stock issued for stock options exercised, shares | 171,716 | 42,207 | 416 | |||||||||
Gross proceeds from stock options exercised | $ | $ 153,701 | $ 0 | ||||||||||
Subsequent Event [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Common shares issued upon exercise of broker warrants | 2,965 | |||||||||||
Number of broker warrants exercised | 3,825 | |||||||||||
Subsequent Event [Member] | UNITED STATES | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Common stock issued for stock options exercised, shares | 15,000 | 15,000 | 34,716 | 21,345 | 21,345 | |||||||
Gross proceeds from stock options exercised | $ | $ 48,450 | $ 126,124 | $ 72,262 | |||||||||
Subsequent Event [Member] | CANADA | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Common stock issued for stock options exercised, shares | 30,000 | 15,000 | 15,000 | 46,655 | 46,655 | 9,000 | ||||||
Gross proceeds from stock options exercised | $ | $ 147,000 | $ 73,500 | $ 228,610 | $ 44,100 |