Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2022 | Aug. 04, 2022 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Entity File Number | 001-37410 | |
Entity Registrant Name | ESSA Pharma Inc. | |
Entity Incorporation, State or Country Code | A1 | |
Entity Address, Country | CA | |
Entity Tax Identification Number | 98-1250703 | |
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 | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 44,073,076 | |
Entity Central Index Key | 0001633932 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED INTERIM
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Current | ||
Cash and cash equivalents | $ 67,868,096 | $ 137,825,024 |
Short-term investments (Note 4) | 106,727,807 | 57,102,159 |
Receivables | 19,450 | 489,012 |
Prepaids (Note 5) | 569,092 | 2,181,882 |
Total current assets | 175,184,445 | 197,598,077 |
Deposits | 259,455 | 259,455 |
Operating lease right-of-use assets (Note 7) | 216,946 | 308,286 |
Total assets | 175,660,846 | 198,165,818 |
Current | ||
Accounts payable and accrued liabilities (Note 6) | 3,902,899 | 3,808,944 |
Current portion of operating lease liabilities (Note 7) | 130,868 | 120,719 |
Total current liabilities | 4,033,767 | 3,929,663 |
Operating lease liabilities (Note 7) | 111,273 | 210,251 |
Derivative liabilities (Note 8) | 0 | 20,352 |
Total liabilities | 4,145,040 | 4,160,266 |
Shareholders' equity | ||
Common shares 44,073,076 issued and outstanding (September 30, 2021 - 43,984,346) (Note 9) | 278,089,136 | 277,415,176 |
Additional paid-in capital (Note 9) | 42,109,862 | 36,442,620 |
Accumulated other comprehensive loss | (2,128,161) | (2,076,479) |
Accumulated deficit | (146,555,031) | (117,775,765) |
Total stockholders equity | 171,515,806 | 194,005,552 |
Total liabilities and shareholders' equity | $ 175,660,846 | $ 198,165,818 |
CONDENSED CONSOLIDATED INTERI_2
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (Parenthetical) - shares | Jun. 30, 2022 | Sep. 30, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, shares issued | 44,073,076 | 43,984,346 |
Common stock, shares outstanding | 44,073,076 | 43,984,346 |
CONDENSED CONSOLIDATED INTERI_3
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
OPERATING EXPENSES | ||||
Research and development | $ 6,394,534 | $ 6,231,908 | $ 20,063,752 | $ 17,985,937 |
Financing costs (Note 7) | 3,145 | 16,667 | 10,996 | 18,147 |
General and administration | 2,895,542 | 3,117,900 | 9,775,082 | 9,942,149 |
Total operating expenses | (9,293,221) | (9,366,475) | (29,849,830) | (27,946,233) |
Foreign exchange | 910 | (34,084) | 30,338 | (19,239) |
Interest and other income | 417,872 | 80,394 | 974,207 | 155,293 |
Derivative liability gain (loss) (Note 8) | 1,929 | 568,954 | 20,352 | (470,132) |
Net loss for the period before taxes | (8,872,510) | (8,751,211) | (28,824,933) | (28,280,311) |
Income tax recovery (expense) | 45,767 | (800) | 45,667 | 34,349 |
Net loss for the period | (8,826,743) | (8,752,011) | (28,779,266) | (28,245,962) |
OTHER COMPREHENSIVE LOSS | ||||
Unrealized loss on short-term investments | (2,951) | (51,682) | ||
Loss and comprehensive loss for the period | $ 8,829,694 | $ 8,752,011 | $ 28,830,948 | $ 28,245,962 |
Earnings Per Share [Abstract] | ||||
Basic loss per common share | $ (0.20) | $ (0.21) | $ (0.65) | $ (0.76) |
Diluted loss per common share | $ (0.20) | $ (0.21) | $ (0.65) | $ (0.76) |
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | ||||
Weighted average number of common shares outstanding - Basic | 44,059,700 | 41,018,024 | 44,026,502 | 36,937,014 |
Weighted average number of common shares outstanding -Diluted | 44,059,700 | 41,018,024 | 44,026,502 | 36,937,014 |
CONDENSED CONSOLIDATED INTERI_4
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Loss for the period | $ (28,779,266) | $ (28,245,962) |
Items not affecting cash and cash equivalents: | ||
Amortization of right-of-use asset | 91,340 | 80,665 |
Amortization of premiums/discounts on short-term investments, net | 170,331 | 0 |
Accretion of lease liability | 10,555 | 5,497 |
Derivative liability loss (gain) | (20,352) | 470,132 |
Interest income | (450,580) | (42,719) |
Unrealized foreign exchange | 571 | 26,497 |
Share-based payments | 5,954,444 | 6,652,613 |
Changes in non-cash working capital items: | ||
Receivables | 469,562 | 104,749 |
Prepaids | 1,612,790 | 1,145,402 |
Accounts payable and accrued liabilities | 92,390 | 1,770,800 |
Net cash used in operating activities | (20,848,215) | (18,032,326) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of short-term investments | (197,959,710) | (57,026,103) |
Proceeds from short-term investments sold | 148,254,180 | 22,000,000 |
Interest from short-term investments | 326,270 | 11,337 |
Net cash used in investing activities | (49,379,260) | (35,014,766) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds on issuance of common shares | 0 | 149,999,985 |
Share issuance costs | 0 | (9,229,451) |
Options exercised | 319,832 | 1,186,833 |
Warrants exercised | 0 | 382 |
Shares purchased through employee share purchase plan | 66,926 | 89,318 |
Lease payments | (99,384) | (69,637) |
Net cash provided by financing activities | 287,374 | 141,977,430 |
Effect of foreign exchange on cash and cash equivalents | (16,827) | (56,920) |
Change in cash and cash equivalents for the period | (69,956,928) | 88,873,418 |
Cash and cash equivalents, beginning of period | 137,825,024 | 56,320,763 |
Cash and cash equivalents, end of period | $ 67,868,096 | $ 145,194,181 |
CONDENSED CONSOLIDATED INTERI_5
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) | Common Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings (Deficit) [Member] | Total |
Beginning Balance at Sep. 30, 2020 | $ 131,086,364 | $ 31,204,284 | $ (2,076,479) | $ (80,970,304) | $ 79,243,865 |
Beginning Balance, in shares at Sep. 30, 2020 | 32,064,411 | ||||
Warrants exercised | $ 2,987,158 | (2,987,009) | 149 | ||
Warrants exercised, in shares | 1,493,504 | ||||
Options exercised | $ 274,365 | (120,664) | 153,701 | ||
Options exercised, shares | 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 | ||||
Beginning Balance at Sep. 30, 2020 | $ 131,086,364 | 31,204,284 | (2,076,479) | (80,970,304) | 79,243,865 |
Beginning Balance, in shares at Sep. 30, 2020 | 32,064,411 | ||||
Loss for the period | (28,245,962) | ||||
Ending Balance at Jun. 30, 2021 | $ 277,370,996 | 33,619,332 | (2,076,479) | (109,216,266) | 199,697,583 |
Ending Balance, in shares at Jun. 30, 2021 | 41,854,916 | ||||
Beginning Balance at Sep. 30, 2020 | $ 131,086,364 | 31,204,284 | (2,076,479) | (80,970,304) | $ 79,243,865 |
Beginning Balance, in shares at Sep. 30, 2020 | 32,064,411 | ||||
Options exercised, shares | 323,610 | ||||
Ending Balance at Sep. 30, 2021 | $ 277,415,176 | 36,442,620 | (2,076,479) | (117,775,765) | $ 194,005,552 |
Ending Balance, in shares at Sep. 30, 2021 | 43,984,346 | ||||
Beginning Balance at Dec. 31, 2020 | $ 134,387,525 | 29,289,327 | (2,076,479) | (87,499,008) | 74,101,365 |
Beginning Balance, in shares at Dec. 31, 2020 | 33,605,383 | ||||
Share issuance costs | $ (9,168,801) | (9,168,801) | |||
Warrants exercised | $ 143,853 | (143,753) | 100 | ||
Warrants exercised, in shares | 1,043,538 | ||||
Financing | $ 149,999,985 | 149,999,985 | |||
Financing , in shares | 5,555,555 | ||||
Options exercised | $ 1,377,947 | (600,962) | 776,985 | ||
Options exercised, shares | 213,381 | ||||
Share-based payments | 2,663,684 | 2,663,684 | |||
Loss for the period | (12,965,247) | (12,965,247) | |||
Ending Balance at Mar. 31, 2021 | $ 276,740,509 | 31,208,296 | (2,076,479) | (100,464,255) | 205,408,071 |
Ending Balance, in shares at Mar. 31, 2021 | 40,417,857 | ||||
Share issuance cost | $ (60,649) | (60,649) | |||
Warrants exercised | $ 123,023 | (122,890) | 133 | ||
Warrants exercised, in shares | 1,362,765 | ||||
Options exercised | $ 453,155 | (197,008) | 256,147 | ||
Options exercised, shares | 68,022 | ||||
Shares issued through employee share purchase plan | $ 114,958 | (53,010) | 61,948 | ||
Shares issued through employee share purchase plan, shares | 6,272 | ||||
Share-based payments | 2,783,944 | 2,783,944 | |||
Loss for the period | (8,752,011) | (8,752,011) | |||
Ending Balance at Jun. 30, 2021 | $ 277,370,996 | 33,619,332 | (2,076,479) | (109,216,266) | 199,697,583 |
Ending Balance, in shares at Jun. 30, 2021 | 41,854,916 | ||||
Beginning Balance at Sep. 30, 2021 | $ 277,415,176 | 36,442,620 | (2,076,479) | (117,775,765) | 194,005,552 |
Beginning Balance, in shares at Sep. 30, 2021 | 43,984,346 | ||||
Options exercised | $ 184,512 | (80,188) | 104,324 | ||
Options exercised, shares | 29,080 | ||||
Shares issued through employee share purchase plan | $ 45,936 | (18,576) | 27,360 | ||
Shares issued through employee share purchase plan, shares | 2,444 | ||||
Share-based payments | 2,500,091 | 2,500,091 | |||
Loss for the period | (9,097,919) | (9,097,919) | |||
Ending Balance at Dec. 31, 2021 | $ 277,645,624 | 38,843,947 | (2,076,479) | (126,873,684) | 187,539,408 |
Ending Balance, in shares at Dec. 31, 2021 | 44,015,870 | ||||
Beginning Balance at Sep. 30, 2021 | $ 277,415,176 | 36,442,620 | (2,076,479) | (117,775,765) | $ 194,005,552 |
Beginning Balance, in shares at Sep. 30, 2021 | 43,984,346 | ||||
Options exercised, shares | 72,910 | ||||
Loss for the period | $ (28,830,948) | ||||
Ending Balance at Jun. 30, 2022 | $ 278,089,136 | 42,109,862 | (2,128,161) | (146,555,031) | 171,515,806 |
Ending Balance, in shares at Jun. 30, 2022 | 44,073,076 | ||||
Beginning Balance at Dec. 31, 2021 | $ 277,645,624 | 38,843,947 | (2,076,479) | (126,873,684) | 187,539,408 |
Beginning Balance, in shares at Dec. 31, 2021 | 44,015,870 | ||||
Options exercised | $ 384,342 | (168,834) | 215,508 | ||
Options exercised, shares | 43,830 | ||||
Share-based payments | 1,863,353 | 1,863,353 | |||
Loss for the period | (48,731) | (10,854,604) | (10,903,335) | ||
Ending Balance at Mar. 31, 2022 | $ 278,029,966 | 40,538,466 | (2,125,210) | (137,728,288) | 178,714,934 |
Ending Balance, in shares at Mar. 31, 2022 | 44,059,700 | ||||
Shares issued through employee share purchase plan | $ 59,170 | (19,604) | 39,566 | ||
Shares issued through employee share purchase plan, shares | 13,376 | ||||
Share-based payments | 1,591,000 | 1,591,000 | |||
Loss for the period | (2,951) | (8,826,743) | (8,829,694) | ||
Ending Balance at Jun. 30, 2022 | $ 278,089,136 | $ 42,109,862 | $ (2,128,161) | $ (146,555,031) | $ 171,515,806 |
Ending Balance, in shares at Jun. 30, 2022 | 44,073,076 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 9 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022, no products are in commercial production or use. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Jun. 30, 2022 | |
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, 2021 and included in the Company’s 2021 Annual Report on Form 10-K filed with the SEC and with the securities commissions in British Columbia, Alberta and Ontario on November 18, 2021. 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 and nine months ended June 30, 2022 and 2021 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 2021 Annual Report on Form 10-K for the year ended September 30, 2021, with the exception of any 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 | 9 Months Ended |
Jun. 30, 2022 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | 3. RECENT ACCOUNTING PRONOUNCEMENTS Recent accounting pronouncements not yet adopted Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s condensed consolidated interim 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 | 9 Months Ended |
Jun. 30, 2022 | |
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 0.31%-1.58% per annum and have maturities of up to 12 months. Short-term investments also consist of U.S. treasury securities, corporate debt securities and commercial paper. The Company has classified these investments as available-for-sale, as the sale of such investments may be required prior to maturity to implement management strategies, and therefore has classified all investment securities as current assets. Those investments with maturity dates of three months or less at the date of purchase are presented as cash equivalents in the accompanying balance sheets. Short-term investments are carried at fair value with the unrealized gains and losses included in accumulated other comprehensive loss as a component of shareholders’ equity (deficit) until realized. Any premium or discount arising at purchase is amortized or accreted to interest income as an adjustment to yield using the straight-line method over the life of the instrument. The Company records an allowance for credit losses when unrealized losses are due to credit-related factors. Realized gains and losses are calculated using the specific identification method and recorded as interest income. As of June 30, 2022 Amortized Unrealized Accrued Estimated Cost Gains Losses Interest Fair Value GICs and Term deposits $ 89,496,261 $ — $ — $ 130,434 $ 89,626,695 U.S. Treasury securities 8,580,088 — (24,305) 137,103 8,692,886 Corporate debt securities 4,433,583 — (27,377) 43,353 4,449,559 Commercial paper 3,958,667 — — — 3,958,667 Balance, end of period $ 106,468,599 $ — $ (51,682) $ 310,890 $ 106,727,807 As of September 30, 2021 Amortized Unrealized Accrued Estimated Cost Gains Losses Interest Fair Value GICs and Term deposits $ 57,026,103 $ — $ — $ 76,056 $ 57,102,159 Balance, end of period $ 57,026,103 $ — $ — $ 76,056 $ 57,102,159 As of June 30, 2022, short-term investments have an aggregate fair market value of $106.7 million (2021 – $57.1 million) were in an aggregate gross unrealized loss position of $51,682 (2021 - $Nil ). The Company considers the decline in market value for the securities to be primarily attributable to current economic and market conditions. These particular investments have been in an unrealized loss position for less than 12 months and it is not more likely than not that the Company will be required to sell any of its securities prior to maturity. Accordingly, no allowance for credit losses has been recorded as of June 30, 2022 and no realized gains or losses on sales of short-term investments have been recorded through June 30, 2022. |
PREPAIDS
PREPAIDS | 9 Months Ended |
Jun. 30, 2022 | |
PREPAIDS | |
PREPAIDS | 5. PREPAIDS June 30, September 30, 2022 2021 Prepaid insurance $ 317,962 $ 1,751,052 Prepaid CMC and clinical expenses and deposits 181,835 240,513 Other deposits and prepaid expenses 69,295 190,317 Balance, end of period $ 569,092 $ 2,181,882 |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 9 Months Ended |
Jun. 30, 2022 | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES June 30, September 30, 2022 2021 Accounts payable $ 555,962 $ 1,425,871 Accrued expenses 2,945,398 2,062,441 Accrued vacation 401,539 320,632 Balance, end of period $ 3,902,899 $ 3,808,944 |
OPERATING LEASE
OPERATING LEASE | 9 Months Ended |
Jun. 30, 2022 | |
OPERATING LEASE | |
OPERATING LEASE | 7. OPERATING LEASE Operating lease right-of-use asset Balance, September 30, 2020 $ 55,162 Addition 323,036 Amortization (80,665) Balance, June 30, 2021 $ 297,533 Balance, September 30, 2021 $ 308,286 Amortization (91,340) Balance, June 30, 2022 $ 216,946 Operating lease liabilities Balance, September 30, 2020 $ 59,094 Addition 323,036 Accretion 5,497 Lease payments (69,637) Balance, June 30, 2021 $ 317,990 Balance, September 30, 2021 $ 330,970 Accretion 10,555 Lease payments (99,384) Balance, June 30, 2022 $ 242,141 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 June 30, 2022, the Company’s incremental borrowing rate was 5.0% and the remaining lease term for the South San Francisco office was 23 months and Houston office was 13 months. Accretion expense of $10,555 (2021 - $1,480) has been recorded in “financing costs” in the condensed consolidated interim statements of operations and comprehensive loss. |
DERIVATIVE LIABILITIES
DERIVATIVE LIABILITIES | 9 Months Ended |
Jun. 30, 2022 | |
DERIVATIVE LIABILITIES | |
DERIVATIVE LIABILITIES | 8. 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 June 30, 2022 and 2021: June 30, June 30, 2022 2021 Risk-free interest rate 2.65 % 0.36 % Expected life 0.54 years 1.54 years Expected annualized volatility 73.3 % 70.8 % Dividend — — Liquidity discount 20 % 20 % 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 (107,024) Balance, September 30, 2021 $ 20,352 Change in fair value (20,352) Balance, June 30, 2022 $ — |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Jun. 30, 2022 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | 9. SHAREHOLDERS’ EQUITY Authorized Unlimited common shares, without par value. Unlimited preferred shares, without par value. February 2021 Financing On February 22, 2021, the Company completed an underwritten public offering for aggregate gross proceeds of $149,999,985 (the “ February 2021 Financing 30-day 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 Omnibus incentive plans The Company has adopted an omnibus incentive plan (“Omnibus Plan”) consistent with the policies and rules of the Nasdaq. Pursuant to the Omnibus Plan, the Company may issue stock options, share appreciation rights, restricted shares, restricted share units and other share-based awards. As of June 30, 2022, the Company has not issued any instruments other than stock options under the Omnibus Plan. As of June 30, 2022, the Omnibus Plan has a maximum of 8,410,907 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 of each calendar year, with a single purchase date at the end of the purchase period on June 30 and December 31 of each calendar year. As of June 30, 2022, the ESPP has a maximum of 236,598 (September 30, 2021 – 252,418) 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 nine months ended June 30, 2022, the Company issued 15,820 shares (2021 –15,963) 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 For the nine months ended June 30, June 30, 2022 2021 2022 2021 Research and development expense $ 3,650 $ 9,123 $ 15,783 $ 23,816 General and administrative 6,152 17,381 13,109 35,327 $ 9,802 $ 26,504 $ 28,892 $ 59,143 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: 2022 2021 Risk-free interest rate 0.50 % 0.19 % Expected life of share purchase rights 6 months 6 months Expected annualized volatility 93.66 % 61.26 % Dividend — — Stock options Pursuant to the Omnibus 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, 2020 5,309,584 $ 3.42 Options granted 1,889,646 9.87 Options exercised (323,610) (3.68) Options expired/forfeited (72,390) (4.46) Balance, September 30, 2021 6,803,230 $ 5.20 Options granted 1,297,500 4.64 Options exercised (72,910) (4.41) Options expired/forfeited (175,759) (3.60) Balance outstanding, June 30, 2022 7,852,061 $ 5.15 Balance exercisable, June 30, 2022 4,275,776 $ 4.52 * Options exercisable in Canadian dollars as of June 30, 2022 are translated at current rates to reflect the current weighted average exercise price in US dollars for all outstanding options. At June 30, 2022, options were outstanding enabling holders to acquire common shares as follows: Weighted average remaining Exercise price Number of options contractual life (years) $ 3.23 3,629,400 7.27 $ 3.59 26,667 7.30 $ 3.60 937,500 10.01 $ 3.81 185,816 6.62 $ 4.00 539,518 5.48 $ 4.67 183,511 7.34 $ 5.99 190,000 9.82 $ 7.00 1,475,146 8.45 $ 8.47 120,000 9.29 $ 9.76 50,000 9.64 $ 13.96 190,000 8.54 $ 29.63 100,000 8.83 $ 31.62 75,000 8.92 C$ 4.90 129,503 4.91 C$ 5.06 20,000 6.62 7,852,061 7.82 Share-based compensation During the nine months ended June 30, 2022, the Company granted a total of 1,297,500 (2021 –1,889,646) stock options with a weighted average fair value of $3.25 per option (2021 – $8.04). The Company recognized share-based payments expense for options granted and vesting, net of recoveries on cancellations of unvested options, during the period ended June 30, 2022 and 2021 with allocations to its functional expense as follows: For the three months ended For the nine months ended June 30, June 30, 2022 2021 2022 2021 Research and development expense $ 868,881 $ 1,234,669 $ 3,237,958 $ 2,299,369 General and administrative 712,317 1,522,769 2,687,594 4,294,101 $ 1,581,198 $ 2,757,438 $ 5,925,552 $ 6,593,470 The following weighted average assumptions were used for the Black-Scholes option-pricing model valuation of stock options granted: 2022 2021 Risk-free interest rate 2.72 % 0.44 % Expected life of options 10.00 years 10.00 years Expected annualized volatility 79.11 % 78.16 % Dividend — — Warrants Warrant transactions are summarized as follows: Weighted Number Average of Warrants Exercise Price Balance, September 30, 2020 9,272,977 $ 1.73 Warrants exercised (6,038,227) (0.06) Balance outstanding and exercisable, September 30, 2021 and June 30, 2022 3,234,750 $ 4.84 At June 30, 2022, 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 80,000 US$ 4.00 January 9, 2023 2,920,000 US$ 0.0001 August 23, 2024 3,234,750 (1) Detailed terms of the 2016 Warrants are included in Note 8 . |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Jun. 30, 2022 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 10. RELATED PARTY TRANSACTIONS Included in accounts payable and accrued liabilities at June 30, 2022 is $78,193 (September 30, 2021 - $82,036) 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 | 9 Months Ended |
Jun. 30, 2022 | |
SEGMENTED INFORMATION | |
SEGMENTED INFORMATION | 11. 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 | 9 Months Ended |
Jun. 30, 2022 | |
FINANCIAL INSTRUMENTS AND RISK | |
FINANCIAL INSTRUMENTS AND RISK | 12. 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, GICs and term deposists included in short-term investments, receivables and accounts payable and accrued liabilities approximates their carrying values due to their short term to maturity. The fair value of U.S. treasury securities, corporate debt securities and commercial paper included in short-term investments are measured using Level 2 inputs based on standard observable inputs, including reported trades, broker/dealer quotes, and bids and/or offers (Note 4).The derivative liabilities are measured using Level 3 inputs (Note 8). 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 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. Short-term investments includes investments that may have maturity dates exceeding one year at the date of purchase; however, the Company may liquidate investment positions prior to maturity to implement management strategies. The Company maintains an investment policy which requires certain minimum investment grades over its investment instruments. As of June 30, 2022, cash and cash equivalents consisted of cash in Canada and the United States and term deposits in Canada and investments in certain instruments which have a maturity of less than three months at the date of purchase. Balances in cash accounts 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 June 30, 2022, the Company had working capital of $171,150,678. 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 June 30, 2022, the Company has cash and cash equivalents balances and short-term investments which are interest bearing. Interest income is not central to the Company’s capital management strategy and not significant to the Company’s projected operational budget. 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, UK pound and Euro. The Company maintains its cash and cash equivalents in U.S. dollars and converts on an as needed basis to discharge Canadian denominated expenditures. A 10% change in the foreign exchange rate between the Canadian dollar, UK Pound, Euro and U.S. dollar in relation to Canadian dollar, UK Pound, Euro dollars held at June 30, 2022 would result in a fluctuation of $13,132 in the net loss recognized for the period. The Company does not currently engage in hedging activities. |
BASIS OF PRESENTATION (Policy)
BASIS OF PRESENTATION (Policy) | 9 Months Ended |
Jun. 30, 2022 | |
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, 2021 and included in the Company’s 2021 Annual Report on Form 10-K filed with the SEC and with the securities commissions in British Columbia, Alberta and Ontario on November 18, 2021. 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 and nine months ended June 30, 2022 and 2021 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 2021 Annual Report on Form 10-K for the year ended September 30, 2021, with the exception of any 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 | 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 PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Policy) | 9 Months Ended |
Jun. 30, 2022 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
Recent Accounting Pronouncements | Recent accounting pronouncements not yet adopted Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s condensed consolidated interim 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 (Tables)
SHORT-TERM INVESTMENTS (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
SHORT-TERM INVESTMENTS | |
Schedule of available for sale securities reconciliation | As of June 30, 2022 Amortized Unrealized Accrued Estimated Cost Gains Losses Interest Fair Value GICs and Term deposits $ 89,496,261 $ — $ — $ 130,434 $ 89,626,695 U.S. Treasury securities 8,580,088 — (24,305) 137,103 8,692,886 Corporate debt securities 4,433,583 — (27,377) 43,353 4,449,559 Commercial paper 3,958,667 — — — 3,958,667 Balance, end of period $ 106,468,599 $ — $ (51,682) $ 310,890 $ 106,727,807 As of September 30, 2021 Amortized Unrealized Accrued Estimated Cost Gains Losses Interest Fair Value GICs and Term deposits $ 57,026,103 $ — $ — $ 76,056 $ 57,102,159 Balance, end of period $ 57,026,103 $ — $ — $ 76,056 $ 57,102,159 |
PREPAIDS (Tables)
PREPAIDS (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
PREPAIDS | |
Schedule of Prepaid Expenses | June 30, September 30, 2022 2021 Prepaid insurance $ 317,962 $ 1,751,052 Prepaid CMC and clinical expenses and deposits 181,835 240,513 Other deposits and prepaid expenses 69,295 190,317 Balance, end of period $ 569,092 $ 2,181,882 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |
Schedule of Accounts Payable and Accrued Liabilities | June 30, September 30, 2022 2021 Accounts payable $ 555,962 $ 1,425,871 Accrued expenses 2,945,398 2,062,441 Accrued vacation 401,539 320,632 Balance, end of period $ 3,902,899 $ 3,808,944 |
OPERATING LEASE (Tables)
OPERATING LEASE (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
OPERATING LEASE | |
Schedule of Operating Leases | Operating lease right-of-use asset Balance, September 30, 2020 $ 55,162 Addition 323,036 Amortization (80,665) Balance, June 30, 2021 $ 297,533 Balance, September 30, 2021 $ 308,286 Amortization (91,340) Balance, June 30, 2022 $ 216,946 Operating lease liabilities Balance, September 30, 2020 $ 59,094 Addition 323,036 Accretion 5,497 Lease payments (69,637) Balance, June 30, 2021 $ 317,990 Balance, September 30, 2021 $ 330,970 Accretion 10,555 Lease payments (99,384) Balance, June 30, 2022 $ 242,141 |
DERIVATIVE LIABILITIES (Tables)
DERIVATIVE LIABILITIES (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and 2021: June 30, June 30, 2022 2021 Risk-free interest rate 2.65 % 0.36 % Expected life 0.54 years 1.54 years Expected annualized volatility 73.3 % 70.8 % 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 (107,024) Balance, September 30, 2021 $ 20,352 Change in fair value (20,352) Balance, June 30, 2022 $ — |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
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, 2020 5,309,584 $ 3.42 Options granted 1,889,646 9.87 Options exercised (323,610) (3.68) Options expired/forfeited (72,390) (4.46) Balance, September 30, 2021 6,803,230 $ 5.20 Options granted 1,297,500 4.64 Options exercised (72,910) (4.41) Options expired/forfeited (175,759) (3.60) Balance outstanding, June 30, 2022 7,852,061 $ 5.15 Balance exercisable, June 30, 2022 4,275,776 $ 4.52 * Options exercisable in Canadian dollars as of June 30, 2022 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 June 30, 2022, options were outstanding enabling holders to acquire common shares as follows: Weighted average remaining Exercise price Number of options contractual life (years) $ 3.23 3,629,400 7.27 $ 3.59 26,667 7.30 $ 3.60 937,500 10.01 $ 3.81 185,816 6.62 $ 4.00 539,518 5.48 $ 4.67 183,511 7.34 $ 5.99 190,000 9.82 $ 7.00 1,475,146 8.45 $ 8.47 120,000 9.29 $ 9.76 50,000 9.64 $ 13.96 190,000 8.54 $ 29.63 100,000 8.83 $ 31.62 75,000 8.92 C$ 4.90 129,503 4.91 C$ 5.06 20,000 6.62 7,852,061 7.82 |
Summary of Warrants Activity | Warrant transactions are summarized as follows: Weighted Number Average of Warrants Exercise Price Balance, September 30, 2020 9,272,977 $ 1.73 Warrants exercised (6,038,227) (0.06) Balance outstanding and exercisable, September 30, 2021 and June 30, 2022 3,234,750 $ 4.84 |
Summary of Warrants Outstanding | At June 30, 2022, 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 80,000 US$ 4.00 January 9, 2023 2,920,000 US$ 0.0001 August 23, 2024 3,234,750 (1) Detailed terms of the 2016 Warrants are included in Note 8 . |
Employee Share Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share Based Compensation Expense | During the nine months ended June 30, 2022, the Company issued 15,820 shares (2021 –15,963) 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 For the nine months ended June 30, June 30, 2022 2021 2022 2021 Research and development expense $ 3,650 $ 9,123 $ 15,783 $ 23,816 General and administrative 6,152 17,381 13,109 35,327 $ 9,802 $ 26,504 $ 28,892 $ 59,143 |
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: 2022 2021 Risk-free interest rate 0.50 % 0.19 % Expected life of share purchase rights 6 months 6 months Expected annualized volatility 93.66 % 61.26 % 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 period ended June 30, 2022 and 2021 with allocations to its functional expense as follows: For the three months ended For the nine months ended June 30, June 30, 2022 2021 2022 2021 Research and development expense $ 868,881 $ 1,234,669 $ 3,237,958 $ 2,299,369 General and administrative 712,317 1,522,769 2,687,594 4,294,101 $ 1,581,198 $ 2,757,438 $ 5,925,552 $ 6,593,470 |
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: 2022 2021 Risk-free interest rate 2.72 % 0.44 % Expected life of options 10.00 years 10.00 years Expected annualized volatility 79.11 % 78.16 % Dividend — — |
SHORT-TERM INVESTMENTS (Narrati
SHORT-TERM INVESTMENTS (Narrative) (Details) | 9 Months Ended |
Jun. 30, 2022 | |
Maximum [Member] | |
Guaranteed investment certificates, interest rate | 1.58% |
Guaranteed investment certificates, maturity term | 12 months |
Minimum [Member] | |
Guaranteed investment certificates, interest rate | 0.31% |
SHORT-TERM INVESTMENTS - Realiz
SHORT-TERM INVESTMENTS - Realized gains and losses (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2022 | Sep. 30, 2021 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Amortized Cost | $ 106,468,599 | $ 57,026,103 |
Unrealized Losses | (51,682) | |
Accrued Interest | $ 310,890 | $ 76,056 |
Accrued Interest - extensible enumeration | Short-term investments (Note 4) | Short-term investments (Note 4) |
Estimated Fair Value | $ 106,727,807 | $ 57,102,159 |
Unrealized loss position | 51,682 | |
Gains or losses on sales of short-term investments | 0 | |
GICs and Term deposits | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Amortized Cost | 89,496,261 | 57,026,103 |
Accrued Interest | 130,434 | 76,056 |
Estimated Fair Value | 89,626,695 | $ 57,102,159 |
U.S. Treasury securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Amortized Cost | 8,580,088 | |
Unrealized Losses | (24,305) | |
Accrued Interest | 137,103 | |
Estimated Fair Value | 8,692,886 | |
Corporate debt securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Amortized Cost | 4,433,583 | |
Unrealized Losses | (27,377) | |
Accrued Interest | 43,353 | |
Estimated Fair Value | 4,449,559 | |
Commercial paper | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Amortized Cost | 3,958,667 | |
Estimated Fair Value | $ 3,958,667 |
PREPAIDS (Schedule of Prepaid E
PREPAIDS (Schedule of Prepaid Expenses) (Details) - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
PREPAIDS | ||
Prepaid insurance | $ 317,962 | $ 1,751,052 |
Prepaid CMC and clinical expenses and deposits | 181,835 | 240,513 |
Other deposits and prepaid expenses | 69,295 | 190,317 |
Balance, end of period | $ 569,092 | $ 2,181,882 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Schedule of Accounts Payable and Accrued Liabilities) (Details) - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ||
Accounts payable | $ 555,962 | $ 1,425,871 |
Accrued expenses | 2,945,398 | 2,062,441 |
Accrued vacation | 401,539 | 320,632 |
Balance, end of period | $ 3,902,899 | $ 3,808,944 |
OPERATING LEASE (Narrative) (De
OPERATING LEASE (Narrative) (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Incremental borrowing rate | 5% | |
Accretion expense | $ 10,555 | $ 5,497 |
South San Francisco Office | ||
Remaining lease term | 23 months | |
Houston Office | ||
Remaining lease term | 13 months | |
Financing costs [Member] | ||
Accretion expense | $ 10,555 | $ 1,480 |
OPERATING LEASE (Schedule of Op
OPERATING LEASE (Schedule of Operating Leases) (Details) - USD ($) | 9 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating lease right-of-use asset | ||||
Operating lease right-of-use assets | $ 216,946 | $ 297,533 | $ 308,286 | $ 55,162 |
Addition | 323,036 | |||
Amortization | (91,340) | (80,665) | ||
Operating lease liabilities | ||||
Operating lease liabilities | 242,141 | 317,990 | $ 330,970 | $ 59,094 |
Addition | 323,036 | |||
Accretion | 10,555 | 5,497 | ||
Lease payments | $ (99,384) | $ (69,637) |
DERIVATIVE LIABILITIES (Narrati
DERIVATIVE LIABILITIES (Narrative) (Details) | 1 Months Ended | ||
Jan. 31, 2016 USD ($) $ / shares shares | Jun. 30, 2022 $ / shares | Sep. 30, 2020 $ / shares | |
DERIVATIVE LIABILITIES | |||
Exercise price (in dollars per share) | $ 4.84 | $ 1.73 | |
Private Placement [Member] | |||
DERIVATIVE LIABILITIES | |||
Shares issued | shares | 227,273 | ||
Unit price (in dollars per share) | $ 66 | ||
Fair value of units issued | $ | $ 14,999,992 | ||
Exercise price (in dollars per share) | $ 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] | Jun. 30, 2022 Y | Jun. 30, 2021 Y |
Risk-free Interest Rate [Member] | ||
DERIVATIVE LIABILITIES | ||
Assumptions to fair value of the derivative warrant liabilities | 0.0265 | 0.0036 |
Expected Life (in Years) [Member] | ||
DERIVATIVE LIABILITIES | ||
Assumptions to fair value of the derivative warrant liabilities | 0.54 | 1.54 |
Expected Annualized Volatility [Member] | ||
DERIVATIVE LIABILITIES | ||
Assumptions to fair value of the derivative warrant liabilities | 0.733 | 0.708 |
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) - USD ($) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
DERIVATIVE LIABILITIES | ||
Beginning balance | $ 20,352 | $ 127,376 |
Change in fair value | (20,352) | (107,024) |
Ending balance | 0 | 20,352 |
Derivatives with expected life greater than one year | $ 0 | $ 20,352 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Feb. 22, 2021 USD ($) $ / shares shares | Jan. 31, 2016 $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) $ / shares shares | Sep. 30, 2021 shares | |
SHAREHOLDERS' EQUITY | |||||
Aggregate gross proceeds | $ | $ 0 | $ 149,999,985 | |||
Share issuance transaction costs | $ | $ 0 | $ 9,229,451 | |||
Options granted | 1,297,500 | 1,889,646 | 1,889,646 | ||
Weighted average fair value of options granted | $ / shares | $ 3.25 | $ 8.04 | |||
Employee Share Purchase Plan [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Number of new stock issued during the period upon the exercise of Purchase Rights | 15,820 | 15,963 | |||
Offering term | 6 months | ||||
Maximum eligibility to common shares amount | $ | $ 25,000 | ||||
Stock Options [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Option expiration period | 10 years | ||||
Minimum [Member] | Employee Share Purchase Plan [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Price percentage of common share granted | 85% | ||||
Maximum [Member] | Employee Share Purchase Plan [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Common shares reserved for issuance | 236,598 | 252,418 | |||
Employee contribution percentage | 15% | ||||
Maximum [Member] | Stock Options and RSU Plan [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Common shares reserved for issuance | 8,410,907 | ||||
February 2021 Financing [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Aggregate gross proceeds | $ | $ 149,999,985 | ||||
Shares issued | 5,555,555 | ||||
Offering price per share | $ / shares | $ 27 | ||||
Underwriter option to purchase additional securities | 724,637 | ||||
Term of underwriters option | 30 days | ||||
Cash commissions paid | $ | $ 8,999,999 | ||||
Share issuance transaction costs | $ | $ 229,451 | ||||
Private Placement [Member] | |||||
SHAREHOLDERS' EQUITY | |||||
Shares issued | 227,273 | ||||
Offering price per share | $ / shares | $ 66 | ||||
Number of Units issued | 227,273 | ||||
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 | |||||
Number of shares acquired by shareholders | 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 | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Employee Share Purchase Plan [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Compensation Expense | $ 9,802 | $ 26,504 | $ 28,892 | $ 59,143 |
Employee Share Purchase Plan [Member] | Research and Development [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Compensation Expense | 3,650 | 9,123 | 15,783 | 23,816 |
Employee Share Purchase Plan [Member] | General and Administrative [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Compensation Expense | 6,152 | 17,381 | 13,109 | 35,327 |
Stock Options Plan [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Compensation Expense | 1,581,198 | 2,757,438 | 5,925,552 | 6,593,470 |
Stock Options Plan [Member] | Research and Development [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Compensation Expense | 868,881 | 1,234,669 | 3,237,958 | 2,299,369 |
Stock Options Plan [Member] | General and Administrative [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Compensation Expense | $ 712,317 | $ 1,522,769 | $ 2,687,594 | $ 4,294,101 |
SHAREHOLDERS' EQUITY (Weighted
SHAREHOLDERS' EQUITY (Weighted Average Assumptions for the Valuation of Purchase Rights) (Details) | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Employee Share Purchase Plan [Member] | ||
Weighted average assumptions | ||
Risk-free interest rate | 0.50% | 0.19% |
Expected life of share purchase options | 6 months | 6 months |
Expected annualized volatility | 93.66% | 61.26% |
Dividend | 0% | 0% |
Stock Options Plan [Member] | ||
Weighted average assumptions | ||
Risk-free interest rate | 2.72% | 0.44% |
Expected life of share purchase options | 10 years | 10 years |
Expected annualized volatility | 79.11% | 78.16% |
Dividend | 0% | 0% |
SHAREHOLDERS' EQUITY (Summary o
SHAREHOLDERS' EQUITY (Summary of Stock Option Activity) (Details) - $ / shares | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | |
Number of Options | |||
Beginning balance (in shares) | 6,803,230 | 5,309,584 | 5,309,584 |
Options granted (in shares) | 1,297,500 | 1,889,646 | 1,889,646 |
Options exercised (in shares) | (72,910) | (323,610) | |
Options expired/forfeited (in shares) | (175,759) | (72,390) | |
Ending balance (in shares) | 7,852,061 | 6,803,230 | |
Balance exercisable (in shares) | 4,275,776 | ||
Weighted Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 5.20 | $ 3.42 | $ 3.42 |
Options granted (in dollars per share) | 4.64 | 9.87 | |
Options exercised (in dollars per share) | (4.41) | (3.68) | |
Options expired/forfeited (in dollars per share) | (3.60) | (4.46) | |
Ending balance (in dollars per share) | 5.15 | $ 5.20 | |
Options exercisable (in dollars per share) | $ 4.52 |
SHAREHOLDERS' EQUITY (Summary_2
SHAREHOLDERS' EQUITY (Summary of Stock Option Outstanding) (Details) | 9 Months Ended | |||
Jun. 30, 2022 $ / shares shares | Jun. 30, 2022 $ / shares shares | Sep. 30, 2021 $ / shares shares | Sep. 30, 2020 $ / shares shares | |
SHAREHOLDERS' EQUITY | ||||
Stock options, Exercise price | $ / shares | $ 5.15 | $ 5.20 | $ 3.42 | |
Number of options | shares | 7,852,061 | 7,852,061 | 6,803,230 | 5,309,584 |
Weighted average remaining contractual life (years) | 7 years 9 months 25 days | |||
Exercise Price $3.23 [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Stock options, Exercise price | $ / shares | $ 3.23 | |||
Number of options | shares | 3,629,400 | 3,629,400 | ||
Weighted average remaining contractual life (years) | 7 years 3 months 7 days | |||
Exercise Price $3.59 [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Stock options, Exercise price | $ / shares | $ 3.59 | |||
Number of options | shares | 26,667 | 26,667 | ||
Weighted average remaining contractual life (years) | 7 years 3 months 18 days | |||
Exercise Price $3.60 [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Stock options, Exercise price | $ / shares | $ 3.60 | |||
Number of options | shares | 937,500 | 937,500 | ||
Weighted average remaining contractual life (years) | 10 years 3 days | |||
Exercise Price $3.81 [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Stock options, Exercise price | $ / shares | $ 3.81 | |||
Number of options | shares | 185,816 | 185,816 | ||
Weighted average remaining contractual life (years) | 6 years 7 months 13 days | |||
Exercise Price $4.00 [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Stock options, Exercise price | $ / shares | $ 4 | |||
Number of options | shares | 539,518 | 539,518 | ||
Weighted average remaining contractual life (years) | 5 years 5 months 23 days | |||
Exercise Price $4.67 [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Stock options, Exercise price | $ / shares | $ 4.67 | |||
Number of options | shares | 183,511 | 183,511 | ||
Weighted average remaining contractual life (years) | 7 years 4 months 2 days | |||
Exercise Price $5.99 [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Stock options, Exercise price | $ / shares | $ 5.99 | |||
Number of options | shares | 190,000 | 190,000 | ||
Weighted average remaining contractual life (years) | 9 years 9 months 25 days | |||
Exercise Price $7.00 [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Stock options, Exercise price | $ / shares | $ 7 | |||
Number of options | shares | 1,475,146 | 1,475,146 | ||
Weighted average remaining contractual life (years) | 8 years 5 months 12 days | |||
Exercise Price $8.47 [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Stock options, Exercise price | $ / shares | $ 8.47 | |||
Number of options | shares | 120,000 | 120,000 | ||
Weighted average remaining contractual life (years) | 9 years 3 months 14 days | |||
Exercise Price $9.76 [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Stock options, Exercise price | $ / shares | $ 9.76 | |||
Number of options | shares | 50,000 | 50,000 | ||
Weighted average remaining contractual life (years) | 9 years 7 months 20 days | |||
Exercise Price $13.96 [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Stock options, Exercise price | $ / shares | $ 13.96 | |||
Number of options | shares | 190,000 | 190,000 | ||
Weighted average remaining contractual life (years) | 8 years 6 months 14 days | |||
Exercise Price $29.63 [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Stock options, Exercise price | $ / shares | $ 29.63 | |||
Number of options | shares | 100,000 | 100,000 | ||
Weighted average remaining contractual life (years) | 8 years 9 months 29 days | |||
Exercise Price $31.62 [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Stock options, Exercise price | $ / shares | $ 31.62 | |||
Number of options | shares | 75,000 | 75,000 | ||
Weighted average remaining contractual life (years) | 8 years 11 months 1 day | |||
Exercise Price C$4.90 [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Stock options, Exercise price | $ / shares | $ 4.90 | |||
Number of options | shares | 129,503 | 129,503 | ||
Weighted average remaining contractual life (years) | 4 years 10 months 28 days | |||
Exercise Price C$5.06 [Member] | ||||
SHAREHOLDERS' EQUITY | ||||
Stock options, Exercise price | $ / shares | $ 5.06 | |||
Number of options | shares | 20,000 | 20,000 | ||
Weighted average remaining contractual life (years) | 6 years 7 months 13 days |
SHAREHOLDERS' EQUITY (Summary_3
SHAREHOLDERS' EQUITY (Summary of Warrants Activity) (Details) | 21 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Number of Warrants | |
Number of Warrants, Beginning balance (in shares) | shares | 9,272,977 |
Warrants exercised (in shares) | shares | (6,038,227) |
Number of Warrants, Ending balance (in shares) | shares | 3,234,750 |
Weighted Average Exercise Price | |
Weighted Average Exercise Price, Beginning balance (in dollar per share) | $ / shares | $ 1.73 |
Weighted average exercise price, warrants exercised (in dollar per share) | $ / shares | (0.06) |
Weighted Average Exercise Price, Ending balance (in dollar per share) | $ / shares | $ 4.84 |
SHAREHOLDERS' EQUITY (Summary_4
SHAREHOLDERS' EQUITY (Summary of Warrants Outstanding) (Details) - $ / shares | Jun. 30, 2022 | Sep. 30, 2020 |
Warrant outstanding and Exercise price | ||
Number of Warrants | 3,234,750 | 9,272,977 |
Exercise price (in dollars per share) | $ 4.84 | $ 1.73 |
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 | 80,000 | |
Exercise price (in dollars per share) | $ 4 | |
Expiry Date | Jan. 09, 2023 | |
Warrants Exercise Price $0.0001 [Member] | ||
Warrant outstanding and Exercise price | ||
Number of Warrants | 2,920,000 | |
Exercise price (in dollars per share) | $ 0.0001 | |
Expiry Date | Aug. 23, 2024 |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Accounts Payable and Accrued Liabilities [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 78,193 | $ 82,036 |
SEGMENTED INFORMATION (Narrativ
SEGMENTED INFORMATION (Narrative) (Details) | 9 Months Ended |
Jun. 30, 2022 segment | |
SEGMENTED INFORMATION | |
Number of industries | 1 |
FINANCIAL INSTRUMENTS AND RISK
FINANCIAL INSTRUMENTS AND RISK (Narrative) (Details) - 9 months ended Jun. 30, 2022 | USD ($) | CAD ($) | USD ($) |
Working Capital | $ 171,150,678 | ||
Cash, CDIC insured amount | $ 100,000 | ||
Cash, FDIC insured amount | $ 250,000 | ||
10% Change in Foreign Exchange Rate [Member] | |||
Foreign currency risk, fluctuation in the net income (loss) reported due to change in exchange rate | $ 13,132 |