Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 10, 2020 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Entity Registrant Name | EYENOVIA, INC. | |
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 | |
Title of 12(b) Security | Common Stock, $0.0001 Par Value | |
Trading Symbol | EYEN | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 24,884,251 | |
Entity Central Index Key | 0001682639 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 22,864,578 | $ 14,152,601 |
Deferred license costs | 1,600,000 | |
Prepaid expenses and other current assets | 903,090 | 196,680 |
Total Current Assets | 25,367,668 | 14,349,281 |
Property and equipment, net | 360,956 | 230,538 |
Security deposit | 119,035 | 117,800 |
Total Assets | 25,847,659 | 14,697,619 |
Current Liabilities: | ||
Accounts payable | 1,464,762 | 1,541,358 |
Accrued compensation | 744,555 | 916,873 |
Accrued expenses and other current liabilities | 373,609 | 453,430 |
Deferred rent - current portion | 7,809 | |
Deferred license fee | 4,000,000 | |
Notes payable - current portion | 145,942 | |
Total Current Liabilities | 6,736,677 | 2,911,661 |
Deferred rent - non-current portion | 36,423 | 45,351 |
Notes payable - non-current portion | 424,338 | 0 |
Total Liabilities | 7,197,438 | 2,957,012 |
Commitments and contingencies (Note 7) | ||
Stockholders' Equity: | ||
Preferred stock, $0.0001 par value, 6,000,000 shares authorized; 0 shares issued and outstanding as of September 30, 2020 and as of December 31, 2019 | 0 | 0 |
Common stock, $0.0001 par value, 90,000,000 shares authorized; 24,884,251 and 17,100,726 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively | 2,488 | 1,710 |
Additional paid-in capital | 91,881,790 | 69,409,949 |
Accumulated deficit | (73,234,057) | (57,671,052) |
Total Stockholders' Equity | 18,650,221 | 11,740,607 |
Total Liabilities and Stockholders' Equity | $ 25,847,659 | $ 14,697,619 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Condensed Balance Sheets | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 6,000,000 | 6,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 90,000,000 | 90,000,000 |
Common Stock, Shares, Issued | 24,884,251 | 17,100,726 |
Common Stock, Shares, Outstanding | 24,884,251 | 17,100,726 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating Expenses: | ||||
Research and development | $ 3,363,759 | $ 3,201,196 | $ 9,913,296 | $ 10,778,114 |
General and administrative | 1,728,366 | 1,489,739 | 5,669,311 | 5,241,608 |
Total Operating Expenses | 5,092,125 | 4,690,935 | 15,582,607 | 16,019,722 |
Loss From Operations | (5,092,125) | (4,690,935) | (15,582,607) | (16,019,722) |
Other Income (Expense): | ||||
Small Business Administration Economic Injury Disaster Grant | 10,000 | |||
Interest expense | (4,945) | (14,977) | ||
Interest income | 540 | 41,557 | 24,579 | 104,448 |
Net Loss | $ (5,096,530) | $ (4,649,378) | $ (15,563,005) | $ (15,915,274) |
Net Loss Per Share | ||||
- Basic and Diluted | $ (0.23) | $ (0.29) | $ (0.79) | $ (1.19) |
Weighted Average Number of Common Shares Outstanding | ||||
- Basic and Diluted | 22,206,195 | 16,270,728 | 19,802,999 | 13,422,667 |
Condensed Statements of Changes
Condensed Statements of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total | |
Balance at Dec. 31, 2018 | $ 1,147 | $ 53,388,216 | $ (36,514,294) | $ 16,875,069 | |
Balance (in shares) at Dec. 31, 2018 | 11,468,996 | ||||
Exercise of stock options on a cashless basis | $ 24 | (24) | 0 | 0 | |
Exercise of stock options on a cashless basis (in shares) | 236,466 | ||||
Exercise of stock options | $ 31 | 483,857 | 0 | 483,888 | |
Exercise of stock options (in shares) | 313,686 | ||||
Stock-based compensation | $ 0 | 1,032,960 | 0 | 1,032,960 | |
Net loss | 0 | 0 | (5,932,384) | (5,932,384) | |
Balance at Mar. 31, 2019 | $ 1,202 | 54,905,009 | (42,446,678) | 12,459,533 | |
Balance (in shares) at Mar. 31, 2019 | 12,019,148 | ||||
Balance at Dec. 31, 2018 | $ 1,147 | 53,388,216 | (36,514,294) | 16,875,069 | |
Balance (in shares) at Dec. 31, 2018 | 11,468,996 | ||||
Net loss | (15,915,274) | ||||
Balance at Sep. 30, 2019 | $ 1,710 | 68,831,827 | (52,429,568) | 16,403,969 | |
Balance (in shares) at Sep. 30, 2019 | 17,100,726 | ||||
Balance at Mar. 31, 2019 | $ 1,202 | 54,905,009 | (42,446,678) | 12,459,533 | |
Balance (in shares) at Mar. 31, 2019 | 12,019,148 | ||||
Exercise of stock options | $ 3 | 67,886 | 0 | 67,889 | |
Exercise of stock options (in shares) | 34,815 | ||||
Stock-based compensation | $ 0 | 424,019 | 0 | 424,019 | |
Net loss | 0 | 0 | (5,333,512) | (5,333,512) | |
Balance at Jun. 30, 2019 | $ 1,205 | 55,396,914 | (47,780,190) | 7,617,929 | |
Balance (in shares) at Jun. 30, 2019 | 12,053,963 | ||||
Issuance of common stock in public offering | [1] | $ 505 | 12,958,070 | 0 | 12,958,575 |
Issuance of common stock in public offering (in shares) | [1] | 5,046,763 | |||
Stock-based compensation | $ 0 | 476,843 | 0 | 476,843 | |
Net loss | 0 | 0 | (4,649,378) | (4,649,378) | |
Balance at Sep. 30, 2019 | $ 1,710 | 68,831,827 | (52,429,568) | 16,403,969 | |
Balance (in shares) at Sep. 30, 2019 | 17,100,726 | ||||
Balance at Dec. 31, 2019 | $ 1,710 | 69,409,949 | (57,671,052) | 11,740,607 | |
Balance (in shares) at Dec. 31, 2019 | 17,100,726 | ||||
Issuance of common stock and warrants in private placement(in shares) | [2] | 2,675,293 | |||
Issuance of common stock and warrants in private placement | [2] | $ 267 | 5,451,475 | 0 | 5,451,742 |
Stock-based compensation | 0 | 583,865 | 0 | 583,865 | |
Net loss | 0 | 0 | (5,450,910) | (5,450,910) | |
Balance at Mar. 31, 2020 | $ 1,977 | 75,445,289 | (63,121,962) | 12,325,304 | |
Balance (in shares) at Mar. 31, 2020 | 19,776,019 | ||||
Balance at Dec. 31, 2019 | $ 1,710 | 69,409,949 | (57,671,052) | 11,740,607 | |
Balance (in shares) at Dec. 31, 2019 | 17,100,726 | ||||
Net loss | (15,563,005) | ||||
Balance at Sep. 30, 2020 | $ 2,488 | 91,881,790 | (73,234,057) | 18,650,221 | |
Balance (in shares) at Sep. 30, 2020 | 24,884,251 | ||||
Balance at Mar. 31, 2020 | $ 1,977 | 75,445,289 | (63,121,962) | 12,325,304 | |
Balance (in shares) at Mar. 31, 2020 | 19,776,019 | ||||
Exercise of stock warrants | $ 17 | 376,404 | 376,421 | ||
Exercise of stock warrants (in shares) | 167,664 | ||||
Stock-based compensation | 633,146 | 633,146 | |||
Net loss | (5,015,565) | (5,015,565) | |||
Balance at Jun. 30, 2020 | $ 1,994 | 76,454,839 | (68,137,527) | 8,319,306 | |
Balance (in shares) at Jun. 30, 2020 | 19,943,683 | ||||
Issuance of common stock in public offering | [3] | $ 383 | 12,495,325 | 12,495,708 | |
Issuance of common stock in public offering (in shares) | [3] | 3,833,334 | |||
Exercise of stock warrants | $ 108 | 2,269,562 | 2,269,670 | ||
Exercise of stock warrants (in shares) | 1,080,497 | ||||
Exercise of stock options | $ 3 | 52,134 | 52,137 | ||
Exercise of stock options (in shares) | 26,737 | ||||
Stock-based compensation | 609,930 | 609,930 | |||
Net loss | (5,096,530) | (5,096,530) | |||
Balance at Sep. 30, 2020 | $ 2,488 | $ 91,881,790 | $ (73,234,057) | $ 18,650,221 | |
Balance (in shares) at Sep. 30, 2020 | 24,884,251 | ||||
[1] | Includes gross proceeds of $14,030,001, less total issuance costs of $1,071,931. | ||||
[2] | Includes gross proceeds of $5,984,931, less total issuance costs of $533,189. | ||||
[3] | Includes gross proceeds of $13,800,002, less total issuance costs of $1,304,294. |
Condensed Statements of Chang_2
Condensed Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) | 3 Months Ended | ||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | |
Common Stock One [Member] | |||
Proceeds Of Stock Issued During Period Gross | $ 14,030,001 | ||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | $ 1,071,931 | ||
Common Stock Two [Member] | |||
Proceeds Of Stock Issued During Period Gross | $ 5,984,931 | ||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | $ 533,189 | ||
Common Stock Three [Member] | |||
Proceeds Of Stock Issued During Period Gross | $ 13,800,002 | ||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | $ 1,304,294 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Cash Flows From Operating Activities | |||
Net loss | $ (15,563,005) | $ (15,915,274) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 71,628 | 8,494 | |
Stock-based compensation | 1,826,941 | 1,933,822 | |
Changes in operating assets and liabilities: | |||
Prepaid expenses and other current assets | (231,194) | (264,221) | |
Deferred license costs | (1,600,000) | 0 | |
Accounts payable | (76,596) | 85,745 | |
Accrued compensation | (172,318) | (320,610) | |
Accrued expenses and other current liabilities | (106,471) | (430,838) | |
Deferred license fee | 4,000,000 | 0 | |
Security deposit | (1,235) | 0 | |
Deferred rent | (1,119) | 3,770 | |
Net Cash Used In Operating Activities | (11,853,369) | (14,899,112) | |
Cash Flows From Investing Activities | |||
Purchases of property and equipment | (202,046) | (43,478) | |
Net Cash Used In Investing Activities | (202,046) | (43,478) | |
Cash Flows From Financing Activities | |||
Proceeds from sale of common stock in public offering | [1] | 0 | 13,214,949 |
Proceeds from sale of common stock and warrants in private placement | [2] | 5,569,136 | 0 |
Proceeds from sale of common stock in public offering | [3] | 12,734,002 | 0 |
Proceeds from exercise of stock warrants | 2,646,091 | 0 | |
Proceeds from PPP 7(a) Loan | 463,353 | 0 | |
Repayments of notes payable | (368,289) | 0 | |
Payment of public offering issuance costs | (329,038) | (256,374) | |
Proceeds from exercise of stock options | 52,137 | 551,777 | |
Net Cash Provided By Financing Activities | 20,767,392 | 13,510,352 | |
Net Increase (Decrease) in Cash and Cash Equivalents | 8,711,977 | (1,432,238) | |
Cash and cash equivalents - Beginning of Period | 14,152,601 | 19,728,200 | |
Cash and cash equivalents - End of Period | 22,864,578 | 18,295,962 | |
Supplemental Disclosure of Cash Flow Information: | |||
Interest expense | 7,961 | 0 | |
Income taxes | 0 | 0 | |
Supplemental Disclosure of Non-Cash Investing and Financing Activities | |||
Accrual of public offering costs | (26,650) | 0 | |
Purchase of insurance premium financed by note payable | (475,216) | 0 | |
Exercise of stock options on a cashless basis | $ 0 | $ 24 | |
[1] | Includes gross proceeds of $14,030,001, less issuance costs of $815,052 deducted directly from the offering proceeds. | ||
[2] | Includes gross proceeds of $5,984,931, less issuance costs of $415,795 deducted directly from the private placement proceeds. | ||
[3] | Includes gross proceeds of $13,800,002, less issuance costs of $1,066,000 deducted directly from the offering proceeds. |
Condensed Statements of Cash _2
Condensed Statements of Cash Flows (Parenthetical) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Common Stock One [Member] | ||
Proceeds Of Stock Issued During Period Gross | $ 14,030,001 | |
Payments of Debt Issuance Costs | $ 815,052 | |
Common Stock Two [Member] | ||
Proceeds Of Stock Issued During Period Gross | $ 5,984,931 | |
Payments of Debt Issuance Costs | 415,795 | |
Common Stock Three [Member] | ||
Proceeds Of Stock Issued During Period Gross | 13,800,002 | |
Payments of Debt Issuance Costs | $ 1,066,000 |
Business Organization, Nature o
Business Organization, Nature of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Business Organization, Nature of Operations and Basis of Presentation | |
Business Organization, Nature of Operations and Basis of Presentation | Note 1 – Business Organization, Nature of Operations and Basis of Presentation Eyenovia. Inc. (“Eyenovia” or the “Company”) is a clinical stage ophthalmic biopharmaceutical company developing a pipeline of microdose array print (MAP(TM)) therapeutics. Eyenovia aims to achieve clinical microdosing of next-generation formulations of well-established ophthalmic pharmaceutical agents using its high-precision targeted ocular delivery system branded the Optejet (R) , which has the potential to replace conventional eye dropper delivery and improve safety, tolerability, patient compliance and topical delivery success for ophthalmic eye treatments. In the clinic, the Optejet has demonstrated the ability to horizontally deliver ophthalmic medication with a success rate significantly higher than that of traditional eye drops (~ 90% vs. ~ 50%). Using its proprietary delivery technology, Eyenovia is developing the next generation of smart ophthalmic therapies which target new indications or new combinations where there are currently no comparable drug therapies approved by the U.S. Food and Drug Administration (the “FDA”). Eyenovia’s microdose therapeutics follow the FDA-designated pharmaceutical registration and regulatory process. Its products are classified by the FDA as drugs, and not medical devices or drug-device combination products. The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the condensed financial statements of the Company as of September 30, 2020 and for the three and nine months ended September 30, 2020 and 2019. The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the operating results for the full year ending December 31, 2020 or any other period. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and related disclosures of the Company as of December 31, 2019 and for the year then ended, which were included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 30, 2020. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Since the date of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, there have been no material changes to the Company’s significant accounting policies, except as disclosed below. Liquidity As of September 30, 2020, the Company had cash and cash equivalents of approximately $22.9 million and an accumulated deficit of approximately $73.2 million. For the nine months ended September 30, 2020 and 2019, the Company incurred net losses of approximately $15.6 million and $15.9 million, respectively, and used cash in operations of approximately $11.9 million and $14.9 million, respectively. Subsequent to September 30, 2020, the Company entered into a License Agreement (the "Bausch License Agreement") with a subsidiary of Bausch Health Companies Inc. (“Bausch Health”) pursuant to which the Company received an upfront payment from Bausch Health of $10.0 million. See Note 11 – Subsequent Events for details. The Company believes its current cash on hand, including the proceeds received from the Bausch License Agreement and warrant exercises, is sufficient to meet its operating and capital requirements for at least the next twelve months from the date these financial statements are issued. Thereafter, the Company may need to raise further capital, through the sale of additional equity or debt securities, to support its future operations. The Company’s operating needs include the planned costs to operate its business, including amounts required to fund research and development activities including clinical studies, working capital and capital expenditures. The Company’s future capital requirements and the adequacy of its available funds will depend on many factors, including the Company’s ability to successfully manufacture its products and commercialize its products and services, competing technological and market developments, and the need to enter into collaborations with other companies or acquire other companies or technologies to enhance or complement its product and service offerings. If the Company is unable to secure additional capital, it may be required to curtail its research and development initiatives and take additional measures to reduce costs in order to conserve its cash. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents in the financial statements. The Company has cash deposits in a financial institution which, at times, may be in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits. The Company has not experienced losses in such accounts and periodically evaluates the creditworthiness of its financial institutions. As of September 30, 2020 and December 31, 2019, the Company had cash balances in excess of FDIC insurance limits of $22,614,578 and $13,902,601, respectively. Derivative Instruments The Company evaluates its embedded conversion options and any freestanding instruments to determine if those contracts or embedded components of those contracts qualify as derivative financial instruments to be separately accounted for in accordance with Topic 815 of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”). The accounting treatment of derivative financial instruments requires that the Company record them at their fair values as of the inception date of the agreement and at fair value as of each subsequent balance sheet date. Any change in fair value is recorded as non-operating, non-cash income or expense for each reporting period at each balance sheet date. The Company reassesses the classification of its derivative instruments at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification. Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other instruments to issue common stock were exercised or converted into common stock. The following securities are excluded from the calculation of weighted average diluted common shares because their inclusion would have been anti-dilutive: September 30, 2020 2019 Options 3,410,540 2,237,438 Warrants 2,095,993 — Restricted stock units 43,728 60,355 Total potentially dilutive shares 5,550,261 2,297,793 Recently Adopted Accounting Pronouncements In July 2017, the FASB issued ASU No. 2017-11, “Earnings Per Share (Topic 260) and Derivatives and Hedging (Topic 815)- Accounting for Certain Financial Instruments with Down Round Features” (“ASU 2017-11”). Equity-linked instruments, such as warrants and convertible instruments may contain down round features that result in the strike price being reduced on the basis of the pricing of future equity offerings. Under ASU 2017-11, a down round feature will no longer require a freestanding equity-linked instrument (or embedded conversion option) to be classified as a liability that is remeasured at fair value through the income statement (i.e. marked-to-market). However, other features of the equity-linked instrument (or embedded conversion option) must still be evaluated to determine whether liability or equity classification is appropriate. Equity classified instruments are not marked-to-market. For earnings per share ("EPS") reporting, the ASU requires companies to recognize the effect of the down round feature only when it is triggered by treating it as a dividend and as a reduction of income available to common shareholders in basic EPS. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. This standard , which the Company adopted on January 1, 2020, did not have a material impact on the Company’s financial position, results of operations or cash flows. In March 2020, the FASB issued ASU 2020-03, "Codification Improvements to Financial Instruments" ("ASU 2020-03"). ASU 2020-03 improves and clarifies various financial instruments topics. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The Company adopted ASU 2020-03 upon issuance, which did not have a material impact on the Company's unaudited condensed financial statements. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 30, 2020 | |
Prepaid Expenses and Other Current Assets | |
Prepaid Expenses and Other Current Assets | Note 3 – Prepaid Expenses and Other Current Assets As of September 30, 2020 and December 31, 2019, prepaid expenses and other current assets consisted of the following: September 30, December 31, 2020 2019 (unaudited) Prepaid insurance expenses $ 271,866 $ 33,923 Payroll tax receivable 179,260 95,233 Arctic Vision expense reimbursement receivable 149,675 — Prepaid research and development expenses 74,540 17,978 Prepaid Board of Director fees 68,250 — Prepaid subscription fees 46,007 10,600 Prepaid conference expenses 36,529 2,463 Prepaid rent and security deposit 31,945 — Prepaid patent expenses 29,499 12,404 Other 15,519 24,079 Total prepaid expenses and other current assets $ 903,090 $ 196,680 |
Accrued Compensation
Accrued Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Accrued Compensation | |
Accrued Compensation | Note 4 – Accrued Compensation As of September 30, 2020 and December 31, 2019, accrued compensation consisted of the following: September 30, December 31, 2020 2019 (unaudited) Accrued bonus expenses $ 579,604 $ 897,839 Accrued payroll expenses 164,951 19,034 Total accrued compensation $ 744,555 $ 916,873 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Accrued Expenses and Other Current Liabilities | |
Accrued Expenses and Other Current Liabilities | Note 5 – Accrued Expenses and Other Current Liabilities As of September 30, 2020 and December 31, 2019, accrued expenses and other current liabilities consisted of the following: September 30, December 31, 2020 2019 (unaudited) Accrued research and development expenses $ 294,421 $ 208,175 Accrued public offering costs 14,102 — Accrued professional services 11,000 97,396 Accrued legal expenses 14,195 — Accrued franchise tax 4,980 40,995 Credit card payable 3,507 56,979 Leasehold improvements — 42,500 Accrued travel and entertainment expenses 1,273 7,385 Other 30,131 — Total accrued expenses and other current liabilities $ 373,609 $ 453,430 |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2020 | |
Notes Payable | |
Notes Payable | Note 6 – Notes Payable As of September 30, 2020 and December 31, 2019, notes payable consisted of the following: September 30, December 31, 2020 2019 (unaudited) Non- Non- Current Current Current Current Portion Portion Total Portion Portion Total Paycheck Protection Program loan $ 39,015 $ 424,338 $ 463,353 $ — $ — $ — Directors and officers insurance policy loan 106,927 — 106,927 — — — Total $ 145,942 $ 424,338 $ 570,280 $ — $ — $ — On February 24, 2020, the Company issued a note payable (the “Note”) for the purchase of a directors’ and officers’ liability insurance policy. The Note is payable in nine monthly payments of $53,750 for an aggregate principal amount of $475,216. The Note accrues interest at a rate of 4.29% per year and matures on November 24, 2020. During the nine months ended September 30, 2020, the Company repaid principal on the Note in the aggregate amount of $368,289. On May 8, 2020, the Company received cash proceeds of $463,353 pursuant to a loan provided in connection with the Paycheck Protection Program under the CARES Act (the “PPP Loan”). The PPP Loan provides for monthly installment payments of $19,508 beginning in August 2021 with the remaining balance due on May 3, 2022, the maturity date. The PPP Loan bears interest at a fixed rate of 1.00% per annum. Under the terms of the CARES Act, as amended by the Paycheck Protection Program Flexibility Act of 2020, the Company is eligible to apply for and receive forgiveness for all or a portion of its PPP Loan. Such forgiveness will be determined, subject to limitations, based on the use of the loan proceeds for certain permissible purposes as set forth in the PPP Loan, including, but not limited to, payroll costs and mortgage interest, rent or utility costs (collectively, “Qualifying Expenses”) incurred during the 24 weeks subsequent to funding, and on the maintenance of employee and compensation levels following the funding of the PPP Loan. The Company intends to use the proceeds of its PPP Loan for Qualifying Expenses. However, no assurance is provided that the Company will be able to obtain forgiveness of its PPP Loan in whole or in part. Any amounts that are not forgiven incur interest at 1.0% per annum and monthly repayments of principal and interest are deferred until six months after the Small Business Administration makes a determination on forgiveness. While the PPP Loan currently has a two-year maturity, the amended law permits the borrower to request a five-year maturity from its lender. During the three months ended September 30, 2020 and 2019, the Company recorded interest expense of $3,824 and $0, respectively, and $9,855 and $0 for the nine months ended September 30, 2020 and 2019, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 7 – Commitments and Contingencies See Note 8 - Related Party Transactions for certain commitments and contingencies entered into with certain related parties. Litigations, Claims and Assessments The Company may be involved in legal proceedings, claims and assessments arising in the ordinary course of business. The Company records legal costs associated with loss contingencies as incurred and accrues for all probable and estimable settlements. Arctic Vision License Agreement On August 10, 2020, the Company entered into a License Agreement (the "Arctic Vision License Agreement") with Arctic Vision (Hong Kong) Limited ("Arctic Vision") pursuant to which Arctic Vision may develop and commercialize MicroPine for the treatment of progressive myopia and MicroLine for the treatment of presbyopia in Greater China (mainland China, Hong Kong, Macau and Taiwan) and South Korea. Under the terms of the Arctic Vision License Agreement, the Company received an upfront payment of $4.0 million, before any payments to Senju Pharmaceutical Co., Ltd. ("Senju"). The Company will record this payment as a deferred license fee in the unaudited condensed balance sheet until the payment is earned. The Company will consider payment earned once certain trial data has been submitted to Arctic Vision, permitting Arctic Vision to obtain regulatory approval with the National Medical Products Administration. In addition, the Company may receive up to a total of $41.75 million in additional payments, based on various development and regulatory milestones, including the initiation of clinical research and approvals in Greater China and South Korea, and development costs. Arctic Vision also will purchase its supply of MicroPine and MicroLine from the Company or, for such products not supplied by the Company, pay the Company a mid-single digit percentage royalty on net sales of such products, subject to certain adjustments. The Company will pay a mid-double digit percentage of such payments, royalties, or net proceeds of such supply to Senju pursuant to its Exclusive License Agreement with Senju, as amended. See Note 8 - Related Party Transactions. During the three and nine months ended September 30, 2020, the Company did not earn any fees related to the Arctic Vision License Agreement. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions | |
Related Party Transactions | Note 8 – Related Party Transactions Consulting Agreements A company in which a member of the Company’s Board of Directors is part owner was a party to a consulting agreement with the Company, dated July 6, 2017 , which provided for the payment of $9,567 per month, and $250 per hour for any additional work, for advisory services performed by such director. The consulting agreement was terminated on September 1, 2020. The director remains on the Board. The Company incurred expenses of $19,134 and $49,451 for the three months ended September 30, 2020 and 2019, respectively, and $57,402 and $151,853 for the nine months ended September 30, 2020 and 2019, respectively, related to the agreement which was included within general and administrative expenses on the unaudited condensed statements of operations. Lease Agreements The Company’s Vice President of Research and Development and Manufacturing (“VP of R&D”) owns a company that entered into a lease agreement with the Company on September 15, 2016 to lease 953 square feet of space located in Reno, NV with respect to its research and development activities. The initial monthly base rent was $3,895 per month over the term of the lease and the security deposit was $3,895. On September 15, 2018, the Company amended the lease agreement to extend it until September 14, 2020 and increase the monthly base rent and security deposit to $4,012. The lease agreement was amended again on April 6, 2020 to lease additional space and increase the monthly base rent and security deposit to $5,247. On September 15, 2020, the Company agreed to extend the lease term until September 14, 2022 and increase the monthly base rent and security deposit to $5,404. The Company made $70,000 of leasehold improvements related to this lease which are included on the balance sheet. The Company’s rent expense amounted to $15,982 and $12,036 for the three months ended September 30, 2020 and 2019, respectively, and $43,512 and $36,108 for the nine months ended September 30, 2020 and 2019, respectively. Research and Development Activities The VP of R&D is the sole owner and President of a company that performs contract engineering services for the Company. During the three and nine months ended September 30, 2020 , the Company recognized research and development expense of $323,187 and $795,992, respectively, related to services provided by such vendor. During the three and nine months ended September 30, 2019, the Company recognized research and development expense of $197,543 and $728,103, respectively, related to services provided by such vendor. The Company had a liability of $120,584 and $89,052 to the vendor as of September 30, 2020 and December 31, 2019, respectively. The Company recognized $46,050 and $143,437 of compensation expense related to the VP of R&D’s salary during the three and nine months ended September 30, 2020, respectively. The Company recognized $46,010 and $140,110 of compensation expense related to the VP of R&D’s salary during the three and nine months ended September 30, 2019, respectively. License Agreement On March 8, 2015, the Company entered into an Exclusive License Agreement (the “Exclusive License Agreement”) with Senju whereby the Company agreed to grant to Senju an exclusive, royalty-bearing license, with rights of sublicense, for its medical device technology for the piezoelectric delivery of ophthalmic medications to develop, make, have made, manufacture, use, import, market, sell, and otherwise distribute such products in Asia. In consideration for the license, Senju agreed to pay to Eyenovia 5% royalties on sales (net of certain manufacturing costs) for the term of the Exclusive License Agreement, subject to certain adjustments upon the loss of patent coverage. The Exclusive License Agreement will continue in full force and effect, on a country-by-country basis, until the later to occur of: (i) the tenth (10th) anniversary of the first commercial sale of such a product candidate in a country or (ii) the expiration of the licensed patents in a country. As of the date of this filing, there had been no commercial sales of such a product in Asia, and, therefore, no royalties had been earned. Senju is owned by the family of a former member of the Company’s Board of Directors and, together, they beneficially own greater than 5% of the Company’s common stock. On April 8, 2020, Eyenovia entered into an amendment (the "License Amendment") to the Exclusive License Agreement. Pursuant to the License Amendment, the Company can license to any third party the right to research, develop, commercialize, manufacture or use certain products identified below (the "Senju Licensed Products") previously licensed to Senju in China (including the People's Republic of China, Hong Kong, Macao, and Taiwan) and South Korea (the "Territory") if such a license is executed by the Company by April 8, 2021. The Senju Licensed Products are those using piezo-print technology in a microdose dispenser with (i) atropine sulfate as its sole active ingredient to treat myopia in humans and (ii) pilocarpine as its sole active ingredient to treat presbyopia in humans. Pursuant to the License Amendment, the Company must pay Senju (a) close to a mid-double digit percentage of revenue on any lump-sum payments the Company receives from the third party, revenue (net of costs) obtained by the Company from contract research and/or development of the Senju Licensed Product in the Territory, and revenue (net of costs) obtained by the Company from contract manufacture for the device of the Senju Licensed Product in the Territory, the aggregate of which must be at least a high seven figure dollar amount minimum payment to Senju; and (b) a lower-double digit percentage of any sales royalty revenue the Company receives from the third party. Unless a third-party license is executed by the Company prior to April 8, 2021 (in which case, subject to early termination the License Amendment shall remain in effect for the duration of such license), the License Amendment terminates on April 8, 2021, but may be terminated earlier by Senju upon the Company's material breach of the License Amendment, subject to a 60-day cure period. The Exclusive License Agreement was further amended in a Letter Agreement by and between the Company and Senju on August 10, 2020 (the “Letter Agreement”). Pursuant to the Letter Agreement, the Company will pay a mid-double digit percentage of certain payments, royalties, or net proceeds received from Arctic Vision in connection with the Arctic Vision License Agreement to Senju. During the nine months ended September 30, 2020, the Company paid Senju $1.6 million in connection with the Arctic Vision License Agreement which was recorded as deferred license costs in the Company's unaudited condensed balance sheet and will be recognized as expense upon earning the related fee. See Note 7 - Commitments and Contingencies for additional details. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity | |
Stockholders' Equity | Note 9 – Stockholders’ Equity Equity Incentive Plan On April 7, 2020, the Company's Board of Directors approved the Company's Amended and Restated 2018 Omnibus Stock Incentive Plan (the "Restated Plan"), which stockholders approved on June 30, 2020. The Restated Plan makes certain changes to the Company's 2018 Omnibus Stock Incentive Plan, as amended (the "2018 Plan"). For example, the Restated Plan increases the number of shares of Company's common stock reserved for issuance under the 2018 Plan to 2,950,000 shares. The Restated Plan requires that all equity awards issued under the Restated Plan vest at least twelve months from the applicable grant date, subject to accelerated vesting, and provides that no dividend or dividend equivalent will be paid on any unvested equity award, although dividends with respect to unvested portions of equity may accrue and be paid when, and if, the awards later vest and the shares are actually issued to the grantee. In addition, the Restated Plan sets an annual limit on the grant date fair value of awards to any non-employee director, together with any cash fees paid during the year, of $150,000, subject to certain exceptions for a non-executive chair of the Board. Finally, the Restated Plan makes several administrative changes to the 2018 Plan, including to clarify that awards made under the Restated Plan are intended to be exempt from or comply with Section 409(A) of the Internal Revenue Code of 1986, as amended. Securities Purchase Agreement On March 24, 2020, the Company closed on a private placement of approximately $6.0 million of Units. Each Unit consists of (i) one share of the Company’s common stock, (ii) a one-year warrant to purchase 0.5 of a share of common stock (“Class A Warrant”), and (iii) a five-year warrant to purchase 0.75 of a share of common stock (“Class B Warrant”) (collectively, the Class A Warrants and Class B Warrants, the “Warrants”). The Units were sold to the public at a price of $2.21425 per Unit and to certain directors and executive officers at a price of $2.42625 per Unit. The Company generated approximately $5.45 million of net proceeds in the offering after deducting placement agent fees and offering expenses of $0.53 million. In the offering, the Company issued an aggregate of 2,675,293 shares of common stock, Class A Warrants to purchase up to 1,337,659 shares of common stock, and Class B Warrants to purchase up to 2,006,495 shares of common stock. The exercise price of the Class A Warrants issued to the public is $2.058 per share and the exercise price of the Class A Warrants issued to the directors and officers is $2.27 per share. The exercise price of the Class B Warrants issued to the public is $2.4696 per share and the exercise price of the Class B Warrants issued to the directors and officers is $2.724 per share. See "Warrants" below for additional details. In connection with the private placement, on March 23, 2020, the Company also entered into a Registration Rights Agreement with the investors. Pursuant to the Registration Rights Agreement, the Company agreed to file with the SEC, no later than 30 days following the date on which the Company files its Form 10-K for the year ended December 31, 2019 with the SEC, a registration statement on Form S-3 covering the shares of common stock issued in the offering and the shares of common stock underlying the Warrants. The Company timely filed the registration statement on Form S-3 (Registration Statement No. 333-237790), which was declared and has remained effective with the SEC since May 13, 2020. Warrants A summary of the Warrant activity during the nine months ended September 30, 2020 is presented below: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Life Intrinsic Warrants Price In Years Value Outstanding January 1, 2020 — $ — Granted 3,344,154 2.33 Exercised (1,248,161) 2.19 Outstanding September 30, 2020 2,095,993 $ 2.41 4.0 $ 1,391,817 Exercisable September 30, 2020 2,095,993 $ 2.41 4.0 $ 1,391,817 The following table presents information related to Warrants as of September 30, 2020: Warrants Outstanding Warants Exercisable Weighted Outstanding Average Exercisable Exercise Number of Remaining Life Number of Price Warrants In Years Warrants $ 133,229 0.5 133,229 $ 144,256 0.5 144,256 $ 1,602,128 4.5 1,602,128 $ 216,380 4.5 216,380 2,095,993 4.0 2,095,993 During the three months ended September 30, 2020, Warrants for the purchase of 1,080,497 shares of the Company's common stock with exercise prices of either $2.058 or $2.4696 per share, respectively, were exercised for aggregate proceeds of approximately $2.3 million. During the nine months ended September 30, 2020, Warrants for the purchase of 1,248,161 shares of the Company's common stock with exercise prices of either $2.058 or $2.4696 per share, respectively, were exercised for aggregate proceeds of approximately $2.6 million. Underwritten Public Offering On August 19, 2020, the Company entered into an Underwriting Agreement (the "Underwriting Agreement") with several underwriters (the "Underwriters") in connection with the public offering (the "Offering") of 3,333,334 shares of the Company's common stock at a price of $3.60 per share, less underwriting discounts and commissions. In addition, pursuant to the terms of the Underwriting Agreement, the Company granted the Underwriters a 30-day option to purchase up to an additional 500,000 shares of the Company's common stock at the same price. The Underwriting Agreement contains customary representations, warranties and covenants of the Company and also provides for customary indemnification by the Company and the Underwriters against certain liabilities and customary contribution provisions in respect of those liabilities. The closing of the Offering occurred on August 21, 2020. At closing, the Company issued 3,833,334 shares of common stock and received net proceeds of approximately $12.5 million after deducting underwriting discounts and commissions and offering expenses of approximately $1.3 million. The Offering was made pursuant to the Company's effective registration statement on Form S-3 (Registration Statement No. 333-229365), including the prospectus dated February 12, 2019, as supplemented by the prospectus supplement dated August 19, 2020. Stock Options On January 31, 2020, the Company granted ten-year stock options to purchase 25,000 shares of common stock to its employees under the 2018 Plan. The shares vest over three years from the date of grant with one-third vesting on the one-year anniversary of the date of grant and the balance vesting monthly over the remaining 24 months. The stock options have an exercise price of $4.68 per share, which represents the Company’s closing stock price on the date of grant. The stock options had a grant date fair value of $89,400, which the Company expects to recognize over the vesting period. On May 28, 2020, the Company granted ten-year stock options to purchase 263,500 shares of common stock to its employees under the Restated Plan. The shares vest over three years from the date of grant with one-third vesting on the one-year anniversary of the date of grant and the balance vesting monthly over the remaining 24 months. The stock options have an exercise price of $2.89 per share, which represents the Company's closing stock price on the date of grant. The stock options had a grant date fair value of $587,100, which the Company expects to recognize over the vesting period. Stock Options - Continued On June 3, 2020, the Company granted ten-year stock options to purchase 764,419 shares of common stock to its executive officers under the Restated Plan. The shares vest over three years from the date of grant with one-third vesting on the one-year anniversary of the date of grant and the balance vesting monthly over the remaining 24 months. The stock options have an exercise price of $2.72 per share, which represents the Company's closing stock price on the date of grant. The stock options had a grant date fair value of $1,603,600, which the Company expects to recognize over the vesting period. On July 28, 2020, the Company granted ten-year stock options to purchase 43,000 shares of common stock to an employee under the Restated Plan. The shares vest over three years from the date of grant with one-third vesting on the one-year anniversary of the date of grant and the balance vesting monthly over the remaining 24 months. The stock options have an exercise price of $3.71 per share, which represents the Company's closing stock price on the date of grant. The stock options had a grant date fair value of $122,400, which the Company expects to recognize over the vesting period. On September 8, 2020, the Company granted ten-year stock options to purchase 45,000 shares of common stock to employees and consultants under the Restated Plan. The shares vest over three years from the date of grant with one-third vesting on the one-year anniversary of the date of grant and the balance vesting monthly over the remaining 24 months. The stock options have an exercise price of $3.48 per share, which represents the Company's closing stock price on the date of grant. The stock options had a grant date fair value of $126,700, which the Company expects to recognize over the vesting period. On September 11, 2020, the Company granted ten-year stock options to purchase 58,920 shares of common stock under the Restated Plan to members of its Board of Directors. The shares vest on the earlier of (i) the one-year anniversary of the date of grant and (ii) the date of the 2021 annual stockholders meeting, subject to the grantee remaining on the Board until then The stock options have an exercise price of $3.43 per share, which represents the Company's closing stock price on the date of grant. The stock options had a grant date fair value of $155,400, which the Company expects to recognize over the vesting period. In applying the Black-Scholes option pricing model to stock options granted, the Company used the following approximate assumptions: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Expected term (years) 5.85 - 10.00 5.85 - 10.00 5.85 - 10.00 5.85 - 10.00 Risk free interest rate 0.26% - 0.69 % 1.42% - 1.55 % 0.26% - 1.32 % 1.42% - 2.53 % Expected volatility 98% - 99 % 134 % 96% - 99 % 134% - 139 % Expected dividends 0.00 % 0.00 % 0.00 % 0.00 % The Company has computed the fair value of stock options granted using the Black-Scholes option pricing model. Option forfeitures are accounted for at the time of occurrence. The expected term is the estimated period of time that options granted are expected to be outstanding. The Company utilizes the “simplified” method to develop an estimate of the expected term of “plain vanilla” employee option grants. The Company does not have a trading history to support its historical volatility calculations. Accordingly, the Company used a blended volatility whereby it uses its historical volatility for the period from its IPO through the valuation date and uses the average of peer-group data of six comparable entities to supplement its own historical data for the preceding years in computing its expected volatility. The risk-free interest rate was determined from the implied yields from U.S. Treasury zero-coupon bonds with a remaining term consistent with the expected term of the instrument being valued. The weighted average estimated grant date fair value of the stock options granted for the three months ended September 30, 2020 and 2019 was approximately $2.71 and $3.11 per share, respectively. The weighted average estimated grant date fair value of the stock options granted for the nine months ended September 30, 2020 and 2019 was approximately $2.24 and $3.10 per share, respectively. A summary of the stock option activity during the nine months ended September 30, 2020 is presented below: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Life Intrinsic Options Price In Years Value Outstanding January 1, 2020 2,237,438 $ Granted 1,199,839 Exercised (26,737) 1.95 Outstanding September 30, 2020 3,410,540 $ 8.2 $ 1,652,315 Exercisable September 30, 2020 1,698,779 $ 7.0 $ 1,280,864 The following table presents information related to stock options as of September 30, 2020: Options Outstanding Options Exercisable Weighted Outstanding Average Exercisable Exercise Number of Remaining Life Number of Price Options In Years Options $ 260,000 $ 673,544 $ 764,419 — — $ 6,000 $ 263,500 — — $ 681,572 $ 58,920 — — $ 45,000 — — $ 43,000 — — $ 2,000 $ 25,000 — — $ 6,000 $ 16,500 $ 26,668 $ 311,499 $ 60,000 $ 166,918 3,410,540 Stock Option Exercises During the three and nine months ended September 30, 2020, stock options for the purchase of 26,737 shares of the Company's common stock with an exercise price of $1.95 per share was exercised for proceeds of $52,137. Restricted Stock Units On September 11, 2020, the Company granted members of its Board of Directors an aggregate of 43,728 restricted stock units ("RSUs") under the Restated Plan. Each RSU is subject to settlement into one share of the company’s common stock. The RSUs vest on the earlier of (i) the one-year anniversary of the date of grant and (ii) the date of the 2021 annual stockholders meeting, subject to the grantee remaining on the Board until then. The RSUs had a grant date fair value of $150,000, which will be recognized over the vesting period. Stock-Based Compensation Expense The Company recorded stock-based compensation expense related to stock options and RSUs. During the three months ended September 30, 2020 and 2019, the Company recorded expense of $609,930 ($346,293 of which was included within research and development expenses and $263,637 of which was included within general and administrative expenses on the condensed statement of operations) and $476,843 ($255,323 of which was included within research and development expenses and $221,520 of which was included within general and administrative expenses on the condensed statement of operations), respectively. During the nine months ended September 30, 2020 and 2019, the Company recorded expense of $1,826,941 ($1,002,149 of which was included within research and development expenses and $824,792 was included within general and administrative expenses on the condensed statement of operations) and $1,933,822 ($1,156,241 of which was included within research and development expenses and $777,581 was included within general and administrative expenses on the condensed statement of operations), respectively. As of September 30, 2020, there was $4,145,595 of unrecognized stock-based compensation expense which the Company expects to recognize over a weighted average period of 2.1 years. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2020 | |
Employee Benefit Plans | |
Employee Benefit Plans | Note 10 – Employee Benefit Plans 401(k) Plan In April 2019, the Company adopted the Eyenovia 401(k) Plan (the “Plan”), which went into effect in May 2019. All Company employees are able to participate in the Plan, subject to eligibility requirements as outlined in the Plan documents. Under the terms of the Plan, eligible employees are able to defer a percentage of their pay every pay period up to annual limitations set by Congress and the Internal Revenue Service under Section 401(k) of the Internal Revenue Code. For 2020, the Company’s Board of Directors has approved a matching contribution equal to 100% of elective deferrals up to 4% of eligible earnings with the matching contribution subject to certain vesting requirements as outlined in the Plan documents. During the three months ended September 30, 2020 and 2019, the Company recorded expense of $25,535 and $26,989 associated with its matching contributions, respectively. During the nine months ended September 30, 2020 and 2019, the Company recorded expense of $106,021 and $43,032 associated with its matching contributions, respectively. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events | |
Subsequent Events | Note 11 – Subsequent Events Bausch License Agreement On October 9, 2020, the Company entered into the Bausch License Agreement pursuant to which Bausch Health may develop and commercialize the Company's MicroPine therapeutic candidate (the "Bausch Licensed Product") in the United States and Canada (the "Licensed Territory"). In connection with the Bausch License Agreement Bausch Health paid the Company an upfront payment of $10.0 million. Bausch Health might also pay the Company up to an aggregate of approximately $35.0 million in additional payments, depending on the achievement of certain regulatory and launch-based milestones. Under the terms of the Bausch License Agreement, on a country-to-country basis and Bausch Licensed Product-by- Bausch Licensed Product basis, Bausch Health will pay the Company a royalties on a tiered basis (ranging from mid-single digit to mid-teen percentages) on gross profits from the sales of the Bausch Licensed Product in the United States and Canada, subject to certain adjustments in the event of generic entry, negative gross profits or patent expiration, for a period of the later to occur of the 10th anniversary of the first commercial sale of a Bausch Licensed Product in such country in the Licensed Territory or the expiration of the last valid patent claim for a Bausch Licensed Product in such country in the Licensed Territory. Under the terms of the Bausch License Agreement, Bausch Health also has assumed oversight and costs related to the ongoing MicroPine study (the CHAPERONE study). Bausch Health may terminate the Bausch License Agreement, with respect to the Bausch Licensed Product to either country in the Licensed Territory, at any time for convenience upon 90 days' written notice. Both parties have the right to terminate the Bausch License Agreement in the event of (i) an uncured material breach after a 60-day period or (ii) a bankruptcy event. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Significant Accounting Policies | |
Liquidity | Liquidity As of September 30, 2020, the Company had cash and cash equivalents of approximately $22.9 million and an accumulated deficit of approximately $73.2 million. For the nine months ended September 30, 2020 and 2019, the Company incurred net losses of approximately $15.6 million and $15.9 million, respectively, and used cash in operations of approximately $11.9 million and $14.9 million, respectively. Subsequent to September 30, 2020, the Company entered into a License Agreement (the "Bausch License Agreement") with a subsidiary of Bausch Health Companies Inc. (“Bausch Health”) pursuant to which the Company received an upfront payment from Bausch Health of $10.0 million. See Note 11 – Subsequent Events for details. The Company believes its current cash on hand, including the proceeds received from the Bausch License Agreement and warrant exercises, is sufficient to meet its operating and capital requirements for at least the next twelve months from the date these financial statements are issued. Thereafter, the Company may need to raise further capital, through the sale of additional equity or debt securities, to support its future operations. The Company’s operating needs include the planned costs to operate its business, including amounts required to fund research and development activities including clinical studies, working capital and capital expenditures. The Company’s future capital requirements and the adequacy of its available funds will depend on many factors, including the Company’s ability to successfully manufacture its products and commercialize its products and services, competing technological and market developments, and the need to enter into collaborations with other companies or acquire other companies or technologies to enhance or complement its product and service offerings. If the Company is unable to secure additional capital, it may be required to curtail its research and development initiatives and take additional measures to reduce costs in order to conserve its cash. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents in the financial statements. The Company has cash deposits in a financial institution which, at times, may be in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits. The Company has not experienced losses in such accounts and periodically evaluates the creditworthiness of its financial institutions. As of September 30, 2020 and December 31, 2019, the Company had cash balances in excess of FDIC insurance limits of $22,614,578 and $13,902,601, respectively. |
Derivative Instruments | Derivative Instruments The Company evaluates its embedded conversion options and any freestanding instruments to determine if those contracts or embedded components of those contracts qualify as derivative financial instruments to be separately accounted for in accordance with Topic 815 of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”). The accounting treatment of derivative financial instruments requires that the Company record them at their fair values as of the inception date of the agreement and at fair value as of each subsequent balance sheet date. Any change in fair value is recorded as non-operating, non-cash income or expense for each reporting period at each balance sheet date. The Company reassesses the classification of its derivative instruments at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification. |
Net Loss Per Common Share | Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other instruments to issue common stock were exercised or converted into common stock. The following securities are excluded from the calculation of weighted average diluted common shares because their inclusion would have been anti-dilutive: September 30, 2020 2019 Options 3,410,540 2,237,438 Warrants 2,095,993 — Restricted stock units 43,728 60,355 Total potentially dilutive shares 5,550,261 2,297,793 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In July 2017, the FASB issued ASU No. 2017-11, “Earnings Per Share (Topic 260) and Derivatives and Hedging (Topic 815)- Accounting for Certain Financial Instruments with Down Round Features” (“ASU 2017-11”). Equity-linked instruments, such as warrants and convertible instruments may contain down round features that result in the strike price being reduced on the basis of the pricing of future equity offerings. Under ASU 2017-11, a down round feature will no longer require a freestanding equity-linked instrument (or embedded conversion option) to be classified as a liability that is remeasured at fair value through the income statement (i.e. marked-to-market). However, other features of the equity-linked instrument (or embedded conversion option) must still be evaluated to determine whether liability or equity classification is appropriate. Equity classified instruments are not marked-to-market. For earnings per share ("EPS") reporting, the ASU requires companies to recognize the effect of the down round feature only when it is triggered by treating it as a dividend and as a reduction of income available to common shareholders in basic EPS. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. This standard , which the Company adopted on January 1, 2020, did not have a material impact on the Company’s financial position, results of operations or cash flows. In March 2020, the FASB issued ASU 2020-03, "Codification Improvements to Financial Instruments" ("ASU 2020-03"). ASU 2020-03 improves and clarifies various financial instruments topics. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The Company adopted ASU 2020-03 upon issuance, which did not have a material impact on the Company's unaudited condensed financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Significant Accounting Policies | |
Schedule of anti-dilutive weighted average diluted common shares | The following securities are excluded from the calculation of weighted average diluted common shares because their inclusion would have been anti-dilutive: September 30, 2020 2019 Options 3,410,540 2,237,438 Warrants 2,095,993 — Restricted stock units 43,728 60,355 Total potentially dilutive shares 5,550,261 2,297,793 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Prepaid Expenses and Other Current Assets | |
Schedule of prepaid expenses and other current assets | As of September 30, 2020 and December 31, 2019, prepaid expenses and other current assets consisted of the following: September 30, December 31, 2020 2019 (unaudited) Prepaid insurance expenses $ 271,866 $ 33,923 Payroll tax receivable 179,260 95,233 Arctic Vision expense reimbursement receivable 149,675 — Prepaid research and development expenses 74,540 17,978 Prepaid Board of Director fees 68,250 — Prepaid subscription fees 46,007 10,600 Prepaid conference expenses 36,529 2,463 Prepaid rent and security deposit 31,945 — Prepaid patent expenses 29,499 12,404 Other 15,519 24,079 Total prepaid expenses and other current assets $ 903,090 $ 196,680 |
Accrued Compensation (Tables)
Accrued Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accrued Compensation | |
Schedule of accrued compensation | As of September 30, 2020 and December 31, 2019, accrued compensation consisted of the following: September 30, December 31, 2020 2019 (unaudited) Accrued bonus expenses $ 579,604 $ 897,839 Accrued payroll expenses 164,951 19,034 Total accrued compensation $ 744,555 $ 916,873 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accrued Expenses and Other Current Liabilities | |
Schedule of accrued expenses and other current liabilities | As of September 30, 2020 and December 31, 2019, accrued expenses and other current liabilities consisted of the following: September 30, December 31, 2020 2019 (unaudited) Accrued research and development expenses $ 294,421 $ 208,175 Accrued public offering costs 14,102 — Accrued professional services 11,000 97,396 Accrued legal expenses 14,195 — Accrued franchise tax 4,980 40,995 Credit card payable 3,507 56,979 Leasehold improvements — 42,500 Accrued travel and entertainment expenses 1,273 7,385 Other 30,131 — Total accrued expenses and other current liabilities $ 373,609 $ 453,430 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Payable | |
Schedule of notes payable | As of September 30, 2020 and December 31, 2019, notes payable consisted of the following: September 30, December 31, 2020 2019 (unaudited) Non- Non- Current Current Current Current Portion Portion Total Portion Portion Total Paycheck Protection Program loan $ 39,015 $ 424,338 $ 463,353 $ — $ — $ — Directors and officers insurance policy loan 106,927 — 106,927 — — — Total $ 145,942 $ 424,338 $ 570,280 $ — $ — $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity | |
Summary of the Warrant activity and related information | A summary of the Warrant activity during the nine months ended September 30, 2020 is presented below: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Life Intrinsic Warrants Price In Years Value Outstanding January 1, 2020 — $ — Granted 3,344,154 2.33 Exercised (1,248,161) 2.19 Outstanding September 30, 2020 2,095,993 $ 2.41 4.0 $ 1,391,817 Exercisable September 30, 2020 2,095,993 $ 2.41 4.0 $ 1,391,817 The following table presents information related to Warrants as of September 30, 2020: Warrants Outstanding Warants Exercisable Weighted Outstanding Average Exercisable Exercise Number of Remaining Life Number of Price Warrants In Years Warrants $ 133,229 0.5 133,229 $ 144,256 0.5 144,256 $ 1,602,128 4.5 1,602,128 $ 216,380 4.5 216,380 2,095,993 4.0 2,095,993 |
Schedule of Black-Scholes option pricing model to stock options granted | In applying the Black-Scholes option pricing model to stock options granted, the Company used the following approximate assumptions: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Expected term (years) 5.85 - 10.00 5.85 - 10.00 5.85 - 10.00 5.85 - 10.00 Risk free interest rate 0.26% - 0.69 % 1.42% - 1.55 % 0.26% - 1.32 % 1.42% - 2.53 % Expected volatility 98% - 99 % 134 % 96% - 99 % 134% - 139 % Expected dividends 0.00 % 0.00 % 0.00 % 0.00 % |
Schedule of the stock option activity | A summary of the stock option activity during the nine months ended September 30, 2020 is presented below: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Life Intrinsic Options Price In Years Value Outstanding January 1, 2020 2,237,438 $ Granted 1,199,839 Exercised (26,737) 1.95 Outstanding September 30, 2020 3,410,540 $ 8.2 $ 1,652,315 Exercisable September 30, 2020 1,698,779 $ 7.0 $ 1,280,864 |
Schedule of information related to stock options | The following table presents information related to stock options as of September 30, 2020: Options Outstanding Options Exercisable Weighted Outstanding Average Exercisable Exercise Number of Remaining Life Number of Price Options In Years Options $ 260,000 $ 673,544 $ 764,419 — — $ 6,000 $ 263,500 — — $ 681,572 $ 58,920 — — $ 45,000 — — $ 43,000 — — $ 2,000 $ 25,000 — — $ 6,000 $ 16,500 $ 26,668 $ 311,499 $ 60,000 $ 166,918 3,410,540 |
Business Organization, Nature_2
Business Organization, Nature of Operations and Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Business Organization, Nature of Operations and Basis of Presentation | |
Percentage Of Success Rate Of Optejet | 90.00% |
Percentage of Successful Rate of Traditional Eye Drops | 50.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Anti-dilutive weighted average diluted common shares (Details) - shares | Sep. 30, 2020 | Sep. 30, 2019 |
Total potentially dilutive shares | 5,550,261 | 2,297,793 |
Restricted stock units | ||
Total potentially dilutive shares | 43,728 | 60,355 |
Warrants | ||
Total potentially dilutive shares | 2,095,993 | 0 |
Options | ||
Total potentially dilutive shares | 3,410,540 | 2,237,438 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | Oct. 14, 2020 | Oct. 09, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Cash and cash equivalents | $ 22,864,578 | $ 22,864,578 | $ 14,152,601 | ||||||||
Accumulated deficit | (73,234,057) | (73,234,057) | (57,671,052) | ||||||||
Net loss | (5,096,530) | $ (5,015,565) | $ (5,450,910) | $ (4,649,378) | $ (5,333,512) | $ (5,932,384) | (15,563,005) | $ (15,915,274) | |||
Cash used in operations | (11,853,369) | $ (14,899,112) | |||||||||
Cash, Uninsured Amount | $ 22,614,578 | $ 22,614,578 | $ 13,902,601 | ||||||||
Subsequent Event [Member] | Bausch License Agreement | |||||||||||
Upfront payment received | $ 10,000,000 | $ 10,000,000 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Prepaid Expenses and Other Current Assets | ||
Prepaid insurance expenses | $ 271,866 | $ 33,923 |
Payroll tax receivable | 179,260 | 95,233 |
Arctic Vision expense reimbursement receivable | 149,675 | 0 |
Prepaid research and development expenses | 74,540 | 17,978 |
Prepaid Board of Director fees | 68,250 | 0 |
Prepaid subscription fees | 46,007 | 10,600 |
Prepaid conference expenses | 36,529 | 2,463 |
Prepaid rent and security deposit | 31,945 | 0 |
Prepaid patent expenses | 29,499 | 12,404 |
Other | 15,519 | 24,079 |
Total prepaid expenses and other current assets | $ 903,090 | $ 196,680 |
Accrued Compensation (Details)
Accrued Compensation (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Accrued Compensation | ||
Accrued bonus expenses | $ 579,604 | $ 897,839 |
Accrued payroll expenses | 164,951 | 19,034 |
Total accrued compensation | $ 744,555 | $ 916,873 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Accrued Expenses and Other Current Liabilities | ||
Accrued research and development expenses | $ 294,421 | $ 208,175 |
Accrued public offering costs | 14,102 | 0 |
Accrued professional services | 11,000 | 97,396 |
Accrued legal expenses | 14,195 | 0 |
Accrued franchise tax | 4,980 | 40,995 |
Credit card payable | 3,507 | 56,979 |
Leasehold improvements | 0 | 42,500 |
Accrued travel and entertainment expenses | 1,273 | 7,385 |
Other | 30,131 | 0 |
Total accrued expenses and other current liabilities | $ 373,609 | $ 453,430 |
Notes Payable - Schedule of not
Notes Payable - Schedule of notes payable (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Current Portion | $ 145,942 | $ 0 |
Non-Current Portion | 424,338 | 0 |
Total | 570,280 | 0 |
Paycheck Protection Program loan | ||
Current Portion | 39,015 | 0 |
Non-Current Portion | 424,338 | 0 |
Total | 463,353 | 0 |
Directors and officers insurance policy loan | ||
Current Portion | 106,927 | 0 |
Non-Current Portion | 0 | 0 |
Total | $ 106,927 | $ 0 |
Notes Payable - Additional Info
Notes Payable - Additional Information (Details) - USD ($) | May 08, 2020 | Feb. 24, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Notes Payable | ||||||
Repayments of loan | $ 368,289 | $ 0 | ||||
Interest expense | $ 3,824 | $ 0 | 9,855 | $ 0 | ||
Notes payable | ||||||
Notes Payable | ||||||
Number of monthly payments | 9 months | |||||
Debt Instrument, Periodic Payment | $ 53,750 | |||||
Aggregate principal payments | $ 475,216 | |||||
Interest rate (as a percent) | 4.29% | |||||
Repayments of loan | $ 368,289 | |||||
Paycheck Protection Program loan | ||||||
Notes Payable | ||||||
Debt Instrument, Periodic Payment | $ 19,508 | |||||
Interest rate (as a percent) | 1.00% | |||||
Cash proceeds from loan | $ 463,353 | |||||
Period for usage of loan proceeds | 168 days | |||||
Interest rate on non forgiven amount | 1.00% | |||||
Paycheck Protection Program loan | Minimum | ||||||
Notes Payable | ||||||
Maturity term | 2 years | |||||
Paycheck Protection Program loan | Maximum | ||||||
Notes Payable | ||||||
Maturity term | 5 years |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - Arctic Vision License Agreement $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Upfront payment received | $ 4,000 |
Maximum additional payments receivable | $ 41,750 |
Related Party Transactions (Det
Related Party Transactions (Details) | Sep. 15, 2020USD ($) | Apr. 06, 2020USD ($) | Sep. 15, 2018USD ($) | Jul. 06, 2017USD ($) | Mar. 08, 2015 | Sep. 15, 2016USD ($)ft² | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) |
Security Deposit | $ 119,035 | $ 119,035 | $ 117,800 | ||||||||
License Agreement | |||||||||||
Minority Interest Ownership Percentage In Company | 5.00% | ||||||||||
Vice President of Research and Development [Member] | |||||||||||
Cost Of Services Engineering Services | 323,187 | $ 197,543 | 795,992 | $ 728,103 | |||||||
Net Rentable Area | ft² | 953 | ||||||||||
Lease, Monthly Base Rent | $ 5,404 | $ 5,247 | $ 4,012 | $ 3,895 | |||||||
Operating Leases, Rent Expense | 15,982 | 12,036 | 43,512 | 36,108 | |||||||
Security Deposit | $ 5,404 | $ 5,247 | $ 4,012 | $ 3,895 | |||||||
Officers' Compensation | 46,050 | 46,010 | 143,437 | 140,110 | |||||||
Leasehold Improvements, Gross | 70,000 | 70,000 | |||||||||
Senju Pharmaceutical Co [Member] | |||||||||||
Royalty Percentage | 5.00% | ||||||||||
Senju Pharmaceutical Co [Member] | Arctic Vision License Agreement | |||||||||||
License costs paid | 1,600,000 | ||||||||||
Research and Development Expense [Member] | Vice President of Research and Development [Member] | |||||||||||
Due to Related Parties | 120,584 | 120,584 | $ 89,052 | ||||||||
Cura Partners [Member] | Consulting Agreement [Member] | |||||||||||
Consulting Fee | $ 9,567 | ||||||||||
Consulting agreement payment, Per hour | $ 250 | ||||||||||
Cura Partners [Member] | General and Administrative Expense [Member] | Consulting Agreement [Member] | |||||||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 19,134 | $ 49,451 | $ 57,402 | $ 151,853 |
Stockholders' Equity - Warrants
Stockholders' Equity - Warrants Activity (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares | |
Stockholders' Equity | ||
Outstanding January 1, 2020 | shares | 0 | |
Granted | shares | 3,344,154 | |
Exercised | shares | 1,080,497 | (1,248,161) |
Outstanding September 30, 2020 | shares | 2,095,993 | 2,095,993 |
Exercisable September 30, 2020 | shares | 2,095,993 | 2,095,993 |
Outstanding January 1, 2020 | $ / shares | $ 0 | |
Granted | $ / shares | 2.33 | |
Exercised | $ / shares | 2.19 | |
Outstanding September 30, 2020 | $ / shares | $ 2.41 | 2.41 |
Exercisable September 30, 2020 | $ / shares | $ 2.41 | $ 2.41 |
Weighted Average Remaining Life, Outstanding | 4 years | |
Weighted Average Remaining Life, Exercisable | 4 years | |
Aggregate Intrinsic Value, Outstanding | $ | $ 1,391,817 | $ 1,391,817 |
Aggregate Intrinsic Value, Exercisable | $ | $ 1,391,817 | $ 1,391,817 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional information related to Warrants (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Class of Warrant or Right [Line Items] | ||||
Outstanding Number of Warrants | 2,095,993 | 2,095,993 | 0 | |
Weighted Average Remaining Life, Exercisable | 4 years | |||
Exercisable Number of Warrants | 2,095,993 | 2,095,993 | ||
Number of warrants exercised | 1,080,497 | (1,248,161) | ||
Proceeds from exercise of warrants | $ 2,300,000 | $ 2,646,091 | $ 0 | |
Warrants at exercise price of $2.0580 | ||||
Class of Warrant or Right [Line Items] | ||||
Exercise Price of Warrants Outstanding | $ 2.0580 | $ 2.0580 | ||
Outstanding Number of Warrants | 133,229 | 133,229 | ||
Weighted Average Remaining Life, Exercisable | 6 months | |||
Exercisable Number of Warrants | 133,229 | 133,229 | ||
Warrants at exercise price of $2.2700 | ||||
Class of Warrant or Right [Line Items] | ||||
Exercise Price of Warrants Outstanding | $ 2.2700 | $ 2.2700 | ||
Outstanding Number of Warrants | 144,256 | 144,256 | ||
Weighted Average Remaining Life, Exercisable | 6 months | |||
Exercisable Number of Warrants | 144,256 | 144,256 | ||
Warrants at exercise price of $2.4696 | ||||
Class of Warrant or Right [Line Items] | ||||
Exercise Price of Warrants Outstanding | $ 2.4696 | $ 2.4696 | ||
Outstanding Number of Warrants | 1,602,128 | 1,602,128 | ||
Weighted Average Remaining Life, Exercisable | 4 years 6 months | |||
Exercisable Number of Warrants | 1,602,128 | 1,602,128 | ||
Warrants at exercise price of $2.7240 | ||||
Class of Warrant or Right [Line Items] | ||||
Exercise Price of Warrants Outstanding | $ 2.7240 | $ 2.7240 | ||
Outstanding Number of Warrants | 216,380 | 216,380 | ||
Weighted Average Remaining Life, Exercisable | 4 years 6 months | |||
Exercisable Number of Warrants | 216,380 | 216,380 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Expected volatility | 134.00% | |||
Expected dividends | 0.00% | 0.00% | 0.00% | 0.00% |
Minimum | ||||
Expected term (years) | 5 years 10 months 6 days | 5 years 10 months 6 days | 5 years 10 months 6 days | 5 years 10 months 6 days |
Risk free interest rate | 0.26% | 1.42% | 0.26% | 1.42% |
Expected volatility | 98.00% | 96.00% | 134.00% | |
Maximum | ||||
Expected term (years) | 10 years | 10 years | 10 years | 10 years |
Risk free interest rate | 0.69% | 1.55% | 1.32% | 2.53% |
Expected volatility | 99.00% | 99.00% | 139.00% |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of option activity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Weighted Average Exercise Price, Exercised | $ 2.71 | $ 3.11 | $ 2.24 | $ 3.10 |
Stock Options [Member] | ||||
Number of Options Outstanding | Shares | 2,237,438 | |||
Number of Options Granted | Shares | 1,199,839 | |||
Number of Options Exercised | Shares | (26,737) | |||
Number of Options Outstanding | Shares | 3,410,540 | 3,410,540 | ||
Number of Options Exercisable | Shares | 1,698,779 | 1,698,779 | ||
Weighted Average Exercise Price, Outstanding | $ / Shares | $ 3.51 | |||
Weighted Average Exercise Price, Granted | $ / Shares | 2.90 | |||
Weighted Average Exercise Price, Exercised | 1.95 | |||
Weighted Average Exercise Price, Outstanding | $ / Shares | $ 3.31 | 3.31 | ||
Weighted Average Exercise Price, Exercisable | $ / Shares | $ 3.43 | $ 3.43 | ||
Weighted Average Remaining Life In Years, Outstanding | 8 years 2 months 12 days | |||
Weighted Average Remaining Life In Years, Exercisable | 7 years | |||
Aggregate Intrinsic Value, Outstanding | $ | $ 1,652,315 | $ 1,652,315 | ||
Aggregate Intrinsic Value, Exercisable | $ 1,280,864 | $ 1,280,864 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of information related to stock options (Details) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Options Outstanding, Outstanding Number of Options | 3,410,540 |
Options Exercisable, Weighted Average Remaining Life In Years | 7 years |
Options Exercisable, Exercisable Number of Options | 1,698,779 |
Exercise Price 1.24 [Member] | |
Options Outstanding, Outstanding Exercise Price | $ / shares | $ 1.24 |
Options Outstanding, Outstanding Number of Options | 260,000 |
Options Exercisable, Weighted Average Remaining Life In Years | 4 years 6 months |
Options Exercisable, Exercisable Number of Options | 260,000 |
Exercise Price 1.95 [Member] | |
Options Outstanding, Outstanding Exercise Price | $ / shares | $ 1.95 |
Options Outstanding, Outstanding Number of Options | 673,544 |
Options Exercisable, Weighted Average Remaining Life In Years | 6 years 9 months 18 days |
Options Exercisable, Exercisable Number of Options | 673,544 |
Exercise Price 2.72 [Member] | |
Options Outstanding, Outstanding Exercise Price | $ / shares | $ 2.72 |
Options Outstanding, Outstanding Number of Options | 764,419 |
Options Exercisable, Weighted Average Remaining Life In Years | 0 years |
Options Exercisable, Exercisable Number of Options | 0 |
Exercise Price 2.74 [Member] | |
Options Outstanding, Outstanding Exercise Price | $ / shares | $ 2.74 |
Options Outstanding, Outstanding Number of Options | 6,000 |
Options Exercisable, Weighted Average Remaining Life In Years | 8 years 3 months 18 days |
Options Exercisable, Exercisable Number of Options | 3,333 |
Exercise Price 2.89 [Member] | |
Options Outstanding, Outstanding Exercise Price | $ / shares | $ 2.89 |
Options Outstanding, Outstanding Number of Options | 263,500 |
Options Exercisable, Weighted Average Remaining Life In Years | 0 years |
Options Exercisable, Exercisable Number of Options | 0 |
Exercise Price 3.11 [Member] | |
Options Outstanding, Outstanding Exercise Price | $ / shares | $ 3.11 |
Options Outstanding, Outstanding Number of Options | 681,572 |
Options Exercisable, Weighted Average Remaining Life In Years | 8 years 10 months 24 days |
Options Exercisable, Exercisable Number of Options | 275,064 |
Exercise price 3.43 [Member] | |
Options Outstanding, Outstanding Exercise Price | $ / shares | $ 3.43 |
Options Outstanding, Outstanding Number of Options | 58,920 |
Options Exercisable, Weighted Average Remaining Life In Years | 0 years |
Options Exercisable, Exercisable Number of Options | 0 |
Exercise price 3.48 [Member] | |
Options Outstanding, Outstanding Exercise Price | $ / shares | $ 3.48 |
Options Outstanding, Outstanding Number of Options | 45,000 |
Options Exercisable, Weighted Average Remaining Life In Years | 0 years |
Options Exercisable, Exercisable Number of Options | 0 |
Exercise price 3.71 [Member] | |
Options Outstanding, Outstanding Exercise Price | $ / shares | $ 3.71 |
Options Outstanding, Outstanding Number of Options | 43,000 |
Options Exercisable, Weighted Average Remaining Life In Years | 0 years |
Options Exercisable, Exercisable Number of Options | 0 |
Exercise Price 4.00 [Member] | |
Options Outstanding, Outstanding Exercise Price | $ / shares | $ 4 |
Options Outstanding, Outstanding Number of Options | 2,000 |
Options Exercisable, Weighted Average Remaining Life In Years | 8 years 1 month 6 days |
Options Exercisable, Exercisable Number of Options | 1,223 |
Exercise price 4.68 [Member] | |
Options Outstanding, Outstanding Exercise Price | $ / shares | $ 4.68 |
Options Outstanding, Outstanding Number of Options | 25,000 |
Options Exercisable, Weighted Average Remaining Life In Years | 0 years |
Options Exercisable, Exercisable Number of Options | 0 |
Exercise Price 5.10 [Member] | |
Options Outstanding, Outstanding Exercise Price | $ / shares | $ 5.10 |
Options Outstanding, Outstanding Number of Options | 6,000 |
Options Exercisable, Weighted Average Remaining Life In Years | 7 years 10 months 24 days |
Options Exercisable, Exercisable Number of Options | 4,000 |
Exercise Price 5.19 [Member] | |
Options Outstanding, Outstanding Exercise Price | $ / shares | $ 5.19 |
Options Outstanding, Outstanding Number of Options | 16,500 |
Options Exercisable, Weighted Average Remaining Life In Years | 7 years 10 months 24 days |
Options Exercisable, Exercisable Number of Options | 11,000 |
Exercise Price 5.25 [Member] | |
Options Outstanding, Outstanding Exercise Price | $ / shares | $ 5.25 |
Options Outstanding, Outstanding Number of Options | 26,668 |
Options Exercisable, Weighted Average Remaining Life In Years | 6 years |
Options Exercisable, Exercisable Number of Options | 26,501 |
Exercise Price 6.20 [Member] | |
Options Outstanding, Outstanding Exercise Price | $ / shares | $ 6.20 |
Options Outstanding, Outstanding Number of Options | 311,499 |
Options Exercisable, Weighted Average Remaining Life In Years | 7 years 9 months 18 days |
Options Exercisable, Exercisable Number of Options | 265,680 |
Exercise Price 6.30 [Member] | |
Options Outstanding, Outstanding Exercise Price | $ / shares | $ 6.30 |
Options Outstanding, Outstanding Number of Options | 60,000 |
Options Exercisable, Weighted Average Remaining Life In Years | 7 years 9 months 18 days |
Options Exercisable, Exercisable Number of Options | 43,333 |
Exercise Price 8.72 [Member] | |
Options Outstanding, Outstanding Exercise Price | $ / shares | $ 8.72 |
Options Outstanding, Outstanding Number of Options | 166,918 |
Options Exercisable, Weighted Average Remaining Life In Years | 7 years 6 months |
Options Exercisable, Exercisable Number of Options | 135,101 |
Stockholders' Equity - Additi_2
Stockholders' Equity - Additional Information (Details) - USD ($) | Sep. 11, 2020 | Sep. 08, 2020 | Aug. 21, 2020 | Aug. 19, 2020 | Jul. 28, 2020 | Jun. 03, 2020 | May 28, 2020 | Apr. 07, 2020 | Mar. 24, 2020 | Jan. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Aggregate number of shares issued including over-allotment option (in shares) | 2,675,293 | ||||||||||||||
Share-based Compensation | $ 609,930 | $ 476,843 | $ 1,826,941 | $ 1,933,822 | |||||||||||
Unrecognized stock - based compensation expense | $ 4,145,595 | $ 4,145,595 | |||||||||||||
Weighted average period of recognition | 2 years 1 month 6 days | ||||||||||||||
Net Proceeds From Issuance Of Common Stock | $ 5,450,000 | ||||||||||||||
Placement agent fees and offering expenses | $ 530,000 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | 3 years | 3 years | 3 years | ||||||||||
Proceeds from Issuance of Common Stock | [1] | $ 12,734,002 | $ 0 | ||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 2.71 | $ 3.11 | $ 2.24 | $ 3.10 | |||||||||||
Proceeds from Stock Options Exercised | $ 52,137 | $ 52,137 | $ 551,777 | ||||||||||||
Proceeds from exercise of stock warrants | 2,300,000 | 2,646,091 | 0 | ||||||||||||
Research and Development Expense [Member] | |||||||||||||||
Share-based Compensation | 346,293 | $ 255,323 | 1,002,149 | 1,156,241 | |||||||||||
General and Administrative Expense [Member] | |||||||||||||||
Share-based Compensation | $ 263,637 | $ 221,520 | $ 824,792 | $ 777,581 | |||||||||||
Restricted stock units | |||||||||||||||
Number of awards granted | 43,728 | ||||||||||||||
Grant date fair value | $ 150,000 | ||||||||||||||
Class A Warrants [Member] | |||||||||||||||
Aggregate number of shares issued including over-allotment option (in shares) | 1,337,659 | ||||||||||||||
Shares Issued, Price Per Share | $ 2.058 | ||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.27 | ||||||||||||||
Class B Warrants [Member ] | |||||||||||||||
Aggregate number of shares issued including over-allotment option (in shares) | 2,006,495 | ||||||||||||||
Shares Issued, Price Per Share | $ 2.4696 | ||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.724 | ||||||||||||||
IPO [Member] | |||||||||||||||
Aggregate number of shares issued including over-allotment option (in shares) | 6,000,000 | ||||||||||||||
Shares Issued, Price Per Share | $ 2.21425 | ||||||||||||||
Gross Proceeds Of Stock Value Issued During Period | $ 2.42625 | ||||||||||||||
IPO [Member] | Class A Warrants [Member] | |||||||||||||||
Shares Issued, Price Per Share | $ 0.5 | ||||||||||||||
IPO [Member] | Class B Warrants [Member ] | |||||||||||||||
Shares Issued, Price Per Share | $ 0.75 | ||||||||||||||
Underwritten Public Offering | |||||||||||||||
Aggregate number of shares issued including over-allotment option (in shares) | 3,833,334 | ||||||||||||||
Number of shares agreed to be issued (in shares) | 3,333,334 | ||||||||||||||
Price per share (in dollars per share) | $ 3.60 | ||||||||||||||
Payments of Stock Issuance Costs | $ 1,300,000 | ||||||||||||||
Proceeds from Issuance of Common Stock | $ 12,500,000 | ||||||||||||||
Over Allotment Option | |||||||||||||||
Number of shares agreed to be issued (in shares) | 500,000 | ||||||||||||||
Over-allotment option period | 30 days | ||||||||||||||
Share-based Compensation Award, Tranche One [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.33% | 0.33% | 0.33% | 0.33% | 0.33% | ||||||||||
Share-based Compensation Award, Tranche Two [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 24 months | 24 months | 24 months | 24 months | 24 months | ||||||||||
Employees Consultants and Directors Under the 2018 Plan [Member] | |||||||||||||||
Aggregate number of shares issued including over-allotment option (in shares) | 58,920 | 45,000 | 43,000 | 764,419 | 263,500 | 25,000 | |||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 3.43 | $ 3.48 | $ 3.71 | $ 2.72 | $ 2.89 | $ 4.68 | |||||||||
Share based Compensation Arrangement by Share based Payment Award Options Grants in Period Grant Date Fair Value | $ 155,400 | $ 126,700 | $ 122,400 | $ 1,603,600 | $ 587,100 | $ 89,400 | |||||||||
Omnibus Stock Incentive Plan 2018 [Member] | |||||||||||||||
Common stock reserved for issuance | 2,950,000 | ||||||||||||||
Cash fee paid | $ 150,000 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 12 months | ||||||||||||||
[1] | Includes gross proceeds of $13,800,002, less issuance costs of $1,066,000 deducted directly from the offering proceeds. |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Employee Benefit Plans | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | |||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 4.00% | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | $ 25,535 | $ 26,989 | $ 106,021 | $ 43,032 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - Bausch License Agreement - USD ($) $ in Millions | Oct. 14, 2020 | Oct. 09, 2020 |
Upfront payment received | $ 10 | $ 10 |
Maximum additional payments receivable | $ 35 | |
Written notice period for termination of agreement | 90 days | |
Termination period upon uncured material breach | 60 days |