Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 10, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-41210 | |
Entity Registrant Name | HILLSTREAM BIOPHARMA, INC. | |
Entity Central Index Key | 0001861657 | |
Entity Tax Identification Number | 84-2642541 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 1200 Route 22 East | |
Entity Address, Address Line Two | Suite 2000 | |
Entity Address, City or Town | Bridgewater | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08807 | |
City Area Code | (908) | |
Local Phone Number | 955-3140 | |
Title of 12(b) Security | Common stock, $0.0001 par value | |
Trading Symbol | HILS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,529,861 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash | $ 9,484,184 | $ 4,356 |
Prepaid expenses and other current assets | 301,366 | 70,670 |
Deferred offering costs | 546,651 | |
Total current assets | 9,785,550 | 621,677 |
Total assets | 9,785,550 | 621,677 |
Current liabilities | ||
Accounts payable | 559,529 | 1,463,059 |
Accrued interest | 179,621 | |
Due to founder | 200,000 | |
Accrued expenses | 185,944 | 318,223 |
Redemption liability | 980,233 | |
Short-term portion of related party convertible notes, net | 1,392,544 | |
Total current liabilities | 745,473 | 4,533,680 |
Related party convertible notes, net of short-term portion | 772,899 | |
Total liabilities | 745,473 | 5,306,579 |
Commitments and contingencies (see Note 8) | ||
Stockholders’ equity (deficit) | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of June 30, 2022 and December 31, 2021 | ||
Common stock, $0.0001 par value, 250,000,000 shares authorized, 11,604,970 and 6,357,314 shares issued and 11,574,970 and 6,357,314 shares outstanding as of June 30, 2022 and December 31, 2021, respectively | 1,160 | 636 |
Additional paid-in capital | 20,554,128 | 2,225,712 |
Accumulated deficit | (11,490,508) | (6,911,250) |
Treasury stock, at cost, 30,000 and 0 shares held in treasury as of June 30, 2022 and December 31, 2021, respectively | (24,703) | |
Total stockholders’ equity (deficit) | 9,040,077 | (4,684,902) |
Total liabilities and stockholders’ equity (deficit) | $ 9,785,550 | $ 621,677 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par or stated value per share | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
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 | 250,000,000 | 250,000,000 |
Common stock, shares issued | 11,604,970 | 6,357,314 |
Common stock, shares outstanding | 11,574,970 | 6,357,314 |
Treasury Stock, Shares | 30,000 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating expenses | ||||
Research and development | $ 455,546 | $ 674,765 | $ 763,375 | $ 1,570,675 |
General and administrative | 1,181,308 | 422,953 | 2,224,639 | 994,636 |
Total operating expenses | 1,636,854 | 1,097,718 | 2,988,014 | 2,565,311 |
Loss from operations | (1,636,854) | (1,097,718) | (2,988,014) | (2,565,311) |
Other expense | ||||
Interest expense | (188,900) | (1,591,244) | (337,090) | |
Change in redemption value | (269,471) | (903,744) | ||
Total other expense | (458,371) | (1,591,244) | (1,240,834) | |
Net loss | $ (1,636,854) | $ (1,556,089) | $ (4,579,258) | $ (3,806,145) |
Net loss per share: | ||||
Basic and diluted | $ (0.14) | $ (0.24) | $ (0.41) | $ (0.60) |
Weighted average number of common shares outstanding: | ||||
Basic and diluted | 11,572,758 | 6,357,314 | 11,103,760 | 6,357,314 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 636 | $ 986,443 | $ (4,704,607) | $ (3,717,528) | |
Beginning balance, shares at Dec. 31, 2020 | 6,357,314 | ||||
Net loss | (3,806,145) | (3,806,145) | |||
Stock based compensation | 1,228,092 | 1,228,092 | |||
Ending balance, value at Jun. 30, 2021 | $ 636 | 2,214,535 | (8,510,752) | (6,295,581) | |
Beginning balance, shares at Jun. 30, 2021 | 6,357,314 | ||||
Beginning balance, value at Mar. 31, 2021 | $ 636 | 1,660,519 | (6,954,663) | (5,293,508) | |
Beginning balance, shares at Mar. 31, 2021 | 6,357,314 | ||||
Net loss | (1,556,089) | (1,556,089) | |||
Stock based compensation | 554,016 | 554,016 | |||
Ending balance, value at Jun. 30, 2021 | $ 636 | 2,214,535 | (8,510,752) | (6,295,581) | |
Beginning balance, shares at Jun. 30, 2021 | 6,357,314 | ||||
Beginning balance, value at Dec. 31, 2021 | $ 636 | 2,225,712 | (6,911,250) | (4,684,902) | |
Beginning balance, shares at Dec. 31, 2021 | 6,357,314 | ||||
Net loss | (4,579,258) | (4,579,258) | |||
Stock based compensation | 357,932 | 357,932 | |||
Exercise of stock options | $ 24 | 24,365 | $ 24,389 | ||
Beginning balance, shares | 240,526 | 240,526 | |||
Purchase of treasury stock at cost | (24,703) | $ (24,703) | |||
Beginning balance, shares | |||||
Stock issuance pursuant to services agreement | $ 3 | 99,997 | 100,000 | ||
Beginning balance, shares | 31,746 | ||||
Initial public offering, net of issuance costs of $2,054,918 | $ 375 | 12,944,707 | 12,945,082 | ||
Beginning balance, shares | 3,750,000 | ||||
Conversion of related-party convertible notes | $ 122 | 4,901,415 | 4,901,537 | ||
Beginning balance, shares | 1,225,384 | ||||
Ending balance, value at Jun. 30, 2022 | $ 1,160 | 20,554,128 | (11,490,508) | $ (24,703) | 9,040,077 |
Beginning balance, shares at Jun. 30, 2022 | 11,604,970 | 30,000 | |||
Beginning balance, value at Mar. 31, 2022 | $ 1,136 | 20,191,212 | (9,853,654) | 10,338,694 | |
Beginning balance, shares at Mar. 31, 2022 | 11,364,444 | ||||
Net loss | (1,636,854) | (1,636,854) | |||
Stock based compensation | 338,551 | 338,551 | |||
Exercise of stock options | $ 24 | 24,365 | 24,389 | ||
Beginning balance, shares | 240,526 | ||||
Purchase of treasury stock at cost | (24,703) | (24,703) | |||
Beginning balance, shares | |||||
Ending balance, value at Jun. 30, 2022 | $ 1,160 | $ 20,554,128 | $ (11,490,508) | $ (24,703) | $ 9,040,077 |
Beginning balance, shares at Jun. 30, 2022 | 11,604,970 | 30,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Unaudited) (Parenthetical) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Stock issuance cost | $ 2,054,918 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (4,579,258) | $ (3,806,145) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of debt discount | 1,569,003 | 263,963 |
Stock based compensation | 357,932 | 1,228,092 |
Stock issuance pursuant to services agreement | 100,000 | |
Change in fair value of redemption liability | 903,744 | |
Increase (decrease) in: | ||
Prepaid expenses and other current assets | (255,399) | 97,893 |
Accounts payable | (536,146) | 379,063 |
Accrued interest | 7,237 | 73,064 |
Due to founder | (200,000) | |
Accrued expenses | (132,279) | 98,533 |
Net cash used in operating activities | (3,668,910) | (761,793) |
Net cash provided by (used in) investing activities | ||
Cash flows from financing activities: | ||
Exercise of stock options | 24,389 | |
Proceeds from issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs | 13,645,643 | |
Payment of deferred offering costs | (521,294) | (103,802) |
Proceeds from related party convertible notes | 703,014 | |
Net cash provided by financing activities | 13,148,738 | 599,212 |
Net increase (decrease) in cash | 9,479,828 | (162,581) |
Cash, beginning of period | 4,356 | 191,852 |
Cash, end of period | 9,484,184 | 29,271 |
Conversion of related party convertible notes: | ||
Related party convertible notes principal converted to common stock upon initial public offering | 3,734,446 | |
Related party convertible notes accrued interest converted to common stock upon initial public offering | 186,858 | |
Redemption liability converted to common stock upon initial public offering | 980,233 | |
Purchase of treasury stock at cost | 24,703 | |
Unpaid deferred offering costs | 145,000 | |
Accrued interest rollover to new notes payable | $ 29,842 |
Description of Business and Liq
Description of Business and Liquidity | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Description of Business and Liquidity | Note 1 – Description of Business and Liquidity Nature of Operations Hillstream BioPharma, Inc. (“HBI”) was incorporated on March 28, 2017, as a Delaware C-corporation. At June 30, 2022, Hillstream BioPharma, Inc. had two wholly-owned subsidiaries: HB Pharma Corp. (“HB”) and Farrington Therapeutics LLC (“Farrington” and together with HBI and HB, the “Company”). The Company is a pre-clinical biotechnology company developing novel therapeutic candidates targeting ferroptosis, an emerging new anti-cancer mechanism resulting in iron mediated cell death (“IMCD”) for treatment resistant cancers. The Company’s most advanced product candidate is HSB-1216, an IMCD modulator, targeting a variety of solid tumors. The active drug in HSB-1216 was found to reduce tumor burden in a clinical pilot study in Germany in treatment resistant cancers, including triple negative breast cancer and epithelial carcinomas. The Company’s goal is to file an investigational new drug application (“IND”) with the U.S. Food and Drug Administration (“FDA”) in 2023 and start a clinical study with HSB-1216 in 2023; however, no assurance can be provided that the Company’s IND will be accepted by the FDA in 2023, if at all. If the IND is accepted by the FDA, the HSB-1216 clinical study will focus on expanding upon the clinical pilot study conducted in Germany. If the Company is able to start the clinical study with HSB-1216 in 2023, the Company anticipates that initial data from such trial will be released either at the end of 2023 or early 2024. The Company uses Quatramer™, the proprietary tumor targeting platform, to enhance the uptake of HSB-1216 in the tumor microenvironment with an extended duration of action and minimal off-target toxicity. In addition, Trident Artificial Intelligence, the Company’s artificial intelligence precision medicine platform, is used to identify biomarkers in its clinical programs to target specific patient segments. The discovery of regulated cell death processes, such as apoptosis and autophagy, has enabled novel target discovery for drug development. Ferroptosis, a form of IMCD, is an emerging regulated cell death process which decreases intracellular iron or the Labile Iron Pool (“LIP”). Cancer cells increase the LIP leading to unregulated cell growth and metabolism. Decreasing the LIP, induces iron-led reactive oxygen species production and lipid peroxidation, two key hallmarks of ferroptosis/IMCD. HSB-1216 binds iron in the cytoplasm of cancer cells and decreases the LIP, thereby inducing ferroptosis/IMCD, leading to regulated cell death. Areas of interest for the development of HSB-1216 are as a treatment of solid tumors, including small cell lung cancer, metastatic castration resistant prostate cancer, triple negative breast cancer, uveal melanoma, glioblastoma multiforme, head and neck squamous cell carcinoma, and other treatment resistant cancers with high unmet need. Liquidity The accompanying condensed consolidated financial statements have been prepared on the basis that the Company is a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. For the six months ended June 30, 2022, the Company incurred operating losses in the amount of approximately $ 3.0 million, expended approximately $ 3.7 million in cash used in operating activities, and had an accumulated deficit of approximately $ 11.5 million as of June 30, 2022. The Company financed its working capital requirements through June 30, 2022 primarily through the issuance of common stock in its initial public offering (“IPO”). Net proceeds to the Company from the IPO were approximately $ 13.0 million. See Note 5 to the condensed consolidated financial statements for details regarding the IPO. The shares of the Company’s common stock began trading on The Nasdaq Capital Market on January 12, 2022 under the ticker symbol “HILS.” The Company believes its cash on hand as of June 30, 2022 is sufficient to meet its operating obligations and capital requirements for at least 12 months from the filing date of this Quarterly Report on Form 10-Q. Thereafter, the Company may need to raise further capital through the sale of additional equity or debt securities or other debt instruments, strategic relationships or grants or other arrangements to support its future operations. If such funding is not available, or not available on terms acceptable to the Company, the Company’s current development plan may be curtailed. Other Risks and Uncertainties There can be no assurance that the Company’s products, if approved, will be accepted in the marketplace, nor can there be any assurance that any future products can be developed or manufactured at an acceptable cost and with appropriate performance characteristics, or that such products will be successfully marketed, if at all. The Company is subject to risks common to biopharmaceutical companies including, but not limited to, the development of new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations, product liability, uncertainty of market acceptance of products and the need to obtain additional financing. The Company is dependent on third party suppliers. The Company’s products require approval or clearance from the FDA prior to commencing commercial sales in the United States. Approvals or clearances are also required in foreign jurisdictions in which the Company may license or sell its products. There can be no assurance that the Company’s products will receive all of the required approvals or clearances. COVID-19 Considerations On March 11, 2020, the World Health Organization characterized the outbreak of a novel strain of coronavirus (“COVID-19”) as a pandemic, prompting many national, regional, and local governments to implement preventative or protective measures, such as travel and business restrictions, temporary store closures and capacity limitations, and wide-sweeping quarantines and stay-at-home orders. As a result, COVID-19 and the related restrictive measures have had a significant adverse impact upon many sectors of the economy. As a result of the ongoing COVID-19 pandemic, the Company had to delay the start of its IND enabling studies for over a year. As the COVID-19 situation continues to evolve, the Company intends to closely monitor the impact of the COVID-19 pandemic on all aspects of its business, including, but not limited to, impacts on third-party contractors, suppliers, vendors and employees. The Company believes that the ultimate impact of the COVID-19 pandemic on operating results, cash flows, and financial condition is likely to be determined by factors which are uncertain, unpredictable, and outside of the Company’s control. The situation surrounding COVID-19 remains fluid, and if disruptions arise, they could have a material adverse impact on the Company’s business. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. These financial statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary for a fair statement of the balance sheet, operating results, and cash flows for the periods presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Operating results for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2022 or any other future period. Certain information and footnote disclosure normally included in the annual financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the SEC’s rules and regulations for interim reporting. The Company’s financial position, results of operations, and cash flows are presented in U.S. Dollars. These financial statements and related notes should be read in conjunction with the audited financial statements and related notes thereto for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the SEC on April 1, 2022. The Company operates in one segment. Principles of Consolidation The condensed consolidated financial statements include the accounts of HBI and its wholly-owned subsidiaries, HB and Farrington. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Management bases its estimates on historical experience and on assumptions believed to be reasonable under the circumstances. The estimation process often may yield a range of potentially reasonable estimates of the ultimate future outcomes, and management must select an amount that falls within that range of reasonable estimates. Estimates are used in the following areas, among others: research and development expense recognition, valuation of common shares and stock options, allowances of deferred tax assets, valuation of debt related instruments, accrued expenses and liabilities, and cash flow assumptions regarding going concern considerations. Given the situation surrounding the COVID-19 pandemic, many estimates and assumptions have required increased judgment and are subject to a higher degree of variability and volatility. Although management believes the estimates that have been used are reasonable, as events continue to evolve and additional information becomes available, actual results could vary from the estimates that were used. Concentration of Credit Risk The Company maintains cash balances with various financial institutions. Account balances at these institutions are insured by the Federal Deposit Insurance Corporation up to $ 250,000 The Company believes that it is not subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. Research and Development Research and development costs are expensed as incurred. Research and development expenses include personnel costs associated with research and development activities, including third party contractors to perform research, conduct clinical trials, and manufacture drug supplies and materials. The Company accrues for costs incurred by external service providers, including contract research organizations and clinical investigators, based on its estimates of service performed and costs incurred. These estimates include the level of services performed by third parties, patient enrollment in clinical trials, administrative costs incurred by third parties, and other indicators of the services completed. Approximately $ 61,000 Stock Based Compensation The Company recognizes compensation costs resulting from the issuance of stock based awards to employees, non-employees and directors as an expense in the condensed consolidated statements of operations over the requisite service period based on a measurement of fair value for each stock based award. The fair value of each option grant to employees, non-employees and directors is estimated as of the date of grant using the Black-Scholes option-pricing model, net of actual forfeitures. The fair value is amortized as compensation cost on a straight-line basis over the requisite service period of the awards, which is generally the vesting period. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Prior to January 12, 2022, the Company was a private company and the Company’s common stock has been publicly traded since that date. As a result, the Company has lacked company-specific historical and implied volatility information. Therefore, it has estimated its expected stock volatility based on the historical data regarding the volatility of a publicly traded set of peer companies. The expected term of stock options granted was between five and seven years. The risk-free interest rate was determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Common Stock Valuations Prior to the IPO, the Company was required to periodically estimate the fair value of common stock with the assistance of an independent third-party valuation expert when issuing stock options and computing its estimated stock based compensation expense and value of shares issued in acquiring product candidates. The assumptions underlying these valuations represented management’s best estimates, which involved inherent uncertainties and the application of significant levels of management judgment. In order to determine the fair value, the Company considered, among other things, contemporaneous valuations of the Company’s common stock; the Company’s business, financial condition and results of operations, including related industry trends affecting its operations; the likelihood of achieving various liquidity events; the lack of marketability of the Company’s common stock; the market performance of comparable publicly traded companies; and U.S. and global economic and capital market conditions. After the closing of the Company’s IPO on January 14, 2022, the fair value of common stock is determined by using the closing price of the Company’s common stock on The Nasdaq Capital Market. Treasury Stock The Company’s board of directors has authorized the repurchase of up to $ 1 Debt Discount and Derivative Instruments The initial fair value of the redemption feature relating to the convertible debt instruments was treated as a debt discount and was amortized over the term of the related debt using the straight-line method, which approximates the interest method. Amortization of debt discount is recorded as a component of interest expense. If a loan is paid in full, any unamortized debt discounts will be removed from the related accounts and charged to operations. As the convertible debt was converted into common stock at the date of the IPO, the unamortized debt discount was charged to interest expense. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2015-03, Interest - Imputation of Interest The Company accounts for derivative instruments in accordance with FASB Accounting Standards Codification (“ASC”) 815, Derivative and Hedging Fair Value Measurements The Company applies FASB ASC 820, Fair Value Measurement The carrying value of the Company’s prepaid expenses, accounts payable, and accrued expenses approximate fair value because of the short-term maturity of these financial instruments. The redemption feature of the debt instruments is recorded at fair value. See Note 4 to the condensed consolidated financial statements for further details. The valuation hierarchy is composed of three levels. The classification within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels within the valuation hierarchy are described below: Level 1 Inputs: Level 2 Inputs: Level 3 Inputs: Deferred Offering Costs Deferred offering costs consisted of legal, accounting, printing, and filing fees that the Company capitalized which were offset against the proceeds from the IPO. Income Taxes The Company accounts for income taxes using the asset-and-liability method in accordance with FASB ASC 740, Income Taxes Deferred income taxes are recognized for the tax effect of temporary differences between the financial statement carrying amount of assets and liabilities and the amounts used for income tax purposes and for certain changes in valuation allowances. Valuation allowances are recorded to reduce certain deferred tax assets when, in management’s estimation, it is more-likely-than-not that a tax benefit will not be realized. A valuation allowance has been recognized for all periods since it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized in future periods. The Company follows the guidance in FASB ASC Topic 740-10 in assessing uncertain tax positions. The standard applies to all tax positions and clarifies the recognition of tax benefits in the financial statements by providing for a two-step approach of recognition and measurement. The first step involves assessing whether the tax position is more-likely-than-not to be sustained upon examination based upon its technical merits. The second step involves measurement of the amount to be recognized. Tax positions that meet the more-likely-than-not threshold are measured at the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate finalization with the taxing authority. The Company recognizes the impact of an uncertain income tax position in the financial statements if it believes that the position is more likely than not to be sustained by the relevant taxing authority. The Company will recognize interest and penalties related to tax positions in income tax expense. At June 30, 2022 and December 31, 2021, the Company had no unrecognized uncertain income tax positions, and therefore no amounts have been recognized in the condensed consolidated financial statements. Net Loss per Share The Company reports loss per share in accordance with FASB ASC 260-10, Earnings Per Share Potentially dilutive securities not included in the computation of loss per share for the three and six months ended June 30, 2022 and 2021 included options to purchase 1,578,813 903,468 1-for-26.4 187,500 Recently Adopted Accounting Pronouncements The Company has evaluated all recent accounting pronouncements and believed that none of them will have a material effect on the Company’s financial position, results of operations, or cash flows, except as described below. Earnings per Share In May 2021, the FASB issued ASU 2021-04, Earnings Per Share Debt-Modifications and Extinguishments Compensation-Stock Compensation Derivatives and Hedging-Contracts in Entity’s Own Equity is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, and was effective for the Company beginning January 1, 2022. Recent Accounting Pronouncements Not Yet Adopted Debt with Conversion and Other Options and Derivatives and Hedging The FASB recently issued ASU 2020-06, Debt - Debt with Conversion and Other Options Derivatives and Hedging - Contracts in Entity’s Own Equity Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Earnings Per Share Codification Improvements In October 2020, the FASB issued ASU 2020-10, Codification Improvements This ASU is effective for fiscal years beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022. The Company does not expect the adoption of ASU 2020-10 to have a material impact on its condensed |
Convertible Notes - Related Par
Convertible Notes - Related Parties | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Convertible Notes - Related Parties | Note 3 – Convertible Notes - Related Parties Commencing in May 2017, the Company entered into Subordinated Convertible Promissory Note Agreements (the “Agreements”) with certain lenders (together, the “Holders” or individually, the “Holder”), pursuant to which the Company issued Subordinated Convertible Promissory Notes (individually the “Note” or together, the “Notes”) to the Holders, principally all to the Chief Executive Officer (“CEO”) and founder of the Company, a member of the Company’s board of directors and third parties that are family members of the founder and CEO. Interest on the unpaid principal balance accrued at a rate of 5 5,000,000 7,500,000 In general, the stated maturity date was two years 2,135,000 three years 20 The Notes were to automatically convert into the type of Equity Securities issued in the Next Equity Financing upon closing. The number of shares of such Equity Securities to be issued was equal to the quotient obtained by dividing the outstanding principal and unpaid accrued interest due on the Note on the date of conversion by the lesser of (i) 80% of the price paid per share for Equity Securities by the investors in the Next Equity Financing, or (ii) an equity valuation of $25 million ($50 million for Notes issued after December 2020) 1,225,384 Certain embedded features contained in the Notes in the aggregate were embedded derivative instruments, which were recorded as a debt discount and derivative liability at the issuance date at their estimated fair value for all Notes of approximately $ 2,421,000 . Amortization of debt discount for the Notes recorded as interest expense was approximately $ 1,569,000 for the six months ended June 30, 2022, and approximately $ 149,000 and approximately $ 263,000 for the three and six months ended June 30, 2021, respectively. The amount for the six months ended June 30, 2022 contains amortization charged to interest expense of approximately $ 33,700 up to the date of the IPO and the full amount of the unamortized debt discount of approximately $ 1,535,000 charged to interest expense on the date of the IPO. Accrued interest expense associated with the Notes at December 31, 2021 was approximately $ 180,000 . Accrued interest at the date of the IPO was approximately $ 187,000 and was converted into common stock as the IPO qualified as a Next Equity Financing. Total interest expense, including accrued interest and amortization of the debt discount, amounted to approximately $ 1,591,000 for the six months ended June 30, 2022, and approximately $ 189,000 and approximately $ 337,000 for the three and six months ended June 30, 2021, respectively. The carrying value of the outstanding related-party convertible notes at December 31, 2021 was as follows: Schedule of Convertible Debt Principal amount outstanding $ 3,734,446 Less: debt discount, net of amortization (1,569,003 ) Carrying value $ 2,165,443 Current portion $ 1,392,544 Long-term portion 772,899 Total carrying value $ 2,165,443 Roll-over Notes Effective October 1, 2020, all Notes which matured, and were not repaid or converted, were rolled over, including the default interest rate of 20 805,000 166,000 639,000 |
Redemption Liability
Redemption Liability | 6 Months Ended |
Jun. 30, 2022 | |
Redemption Liability | |
Redemption Liability | Note 4 – Redemption Liability The fair value of the redemption liability is calculated under Level 3 of the fair value hierarchy, determined based upon a probability-weighted expected returns method (“PWERM”). This PWERM was determined to be the most appropriate method of estimating the value of possible redemption or conversion outcomes over time, since the Company had not entered into a priced equity round through December 31, 2021. The significant assumptions utilized in these calculations are the possible exit scenarios (either a conversion of the principal and accrued interest of the Notes in the event of a Next Equity Financing (see Note 3 to the condensed consolidated financial statements), a repayment of the Notes and accrued interest in the event of a corporate transaction (as defined in the Notes) or a repayment of the Notes and accrued interest at maturity), the pre-money valuation of the Company’s common stock, the probabilities of such exit events occurring, and discounts/premiums available to the Holders at such measurement dates. The calculation of the redemption liability at December 31, 2021 was based upon the actual incremental value derived by the Holders at the IPO date. The fair value of the redemption liability is re-measured at each period and is summarized as of December 31, 2021 as follows: Schedule of Fair Value of Redemption Liability December 31, 2020 $ 1,325,288 Beginning balance as of December 31, 2020 $ 1,325,288 Initial embedded redemption value 1,487,596 Change in fair value (1,832,651 ) December 31, 2021 $ 980,233 Ending balance as of December 31, 2021 $ 980,233 The change in fair value of a loss of $ 269,471 903,744 expense 980,233 |
Common Stock
Common Stock | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Common Stock | Note 5 – Common Stock Pursuant to an amendment to the Company’s Certificate of Incorporation filed in April 2019, the Company increased the number of authorized shares of common stock to 250 On January 14, 2022, the Company closed the IPO pursuant to which it issued 3,750,000 4.00 15.0 1.1 million 1.0 million 546,651 13.0 562,500 1,225,384 3,734,000 187,000 980,000 On February 16, 2022, the Company entered into an agreement for marketing and investor related consulting services. Pursuant to the agreement, compensation includes a monthly fee and an upfront issuance of shares of the Company’s common stock. On the effective date of February 16, 2022, the Company issued 31,746 3.15 100,000 On June 9, 2022, the Company’s Board of Directors authorized the repurchase of up to $ 1,000,000 shares of the Company’s common stock until December 31, 2022. Rules 10b5-1 and 10b-8 under the . of the Company’s common stock may be repurchased in the completion of repurchases up to the approved amount and (iii) the date upon which the Company gives notice of termination of the Repurchase Agreement to the financial institution. The Company will determine the timing and amount of any repurchases based upon its evaluation of market conditions, applicable SEC guidelines and regulations, and other factors. During the three and six months ended June 30, 2022, the Company purchased 30,000 shares of its common stock for a total purchase cost of approximately $ 25,000 . A prepayment of approximately $ 25,000 was made toward the purchase of 33,700 shares of common stock for which the trade and settlement dates are subsequent to June 30, 2022. As a result, the amount is included in prepaid expenses and other current assets at June 30, 2022. |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | Note 6 – Stock Based Compensation Incentive Plans and Options Under the Company’s 2017 Stock Incentive Plan (the “2017 Stock Incentive Plan”) the Company may grant incentive stock options, non-statutory stock options, rights to purchase common stock, stock appreciation rights, restricted stock, performance shares, and performance units to employees, directors, and consultants of the Company and its affiliates. Up to 94,696 The Company has granted options to acquire 92,801 13.20 1,895 92,801 5.7 6.2 In July 2019, the Company authorized a new plan (the “2019 Stock Incentive Plan”). The Company initially reserved 284,090 2,575,757 574,494 467,171 3,901,512 The Company has granted options to acquire 3,336,385 2,420,514 565,127 1,480,998 1,486,012 810,667 3.90 3.25 8.9 8.0 The following table summarizes stock based activities under the 2017 Stock Incentive Plan and 2019 Stock Incentive Plans: Schedule of Stock Option Activity Weighted Weighted Shares Average Average Underlying Exercise Contractual Options Price Terms Outstanding at December 31, 2021 903,468 $ 4.27 7.9 Granted 930,075 3.50 Exercised (240,526 ) 0.10 Forfeited /cancelled (14,204 ) 5.28 Outstanding at June 30, 2022 1,578,813 $ 4.44 8.7 Exercisable options at June 30, 2022 731,547 $ 5.47 7.9 Vested and expected to vest at June 30, 2022 1,578,813 $ 4.44 8.7 The fair value of stock option awards is estimated at the date of grant using the Black-Scholes option-pricing model. The estimated fair value of each stock option is then expensed over the requisite service period, which is generally the vesting period (ranging between immediate vesting and four years). The determination of fair value using the Black-Scholes model is affected by the Company’s share price as well as assumptions regarding a number of complex and subjective variables, including expected price volatility, expected life, risk-free interest rate and forfeitures. Stock options granted during the three and six months ended June 30, 2022 and June 30, Schedule of Options Weighted Average Assumptions For the three months ended For the six months ended June 30, June 30, June 30, June 30, 2022 2021 2022 2021 Expected volatility N/A 111.3 % 94.5 98.4 % 111.3 % Risk-free interest rate N/A 0.81 0.86 % 1.69 2.33 % 0.42% 0.86 % Expected dividend yield N/A 0 % 0 % 0 % Expected life of options in years N/A 5.0 5.5 - 7.0 5.0 Estimated fair value of options granted N/A $ 5.48 5.56 $ 1.02 3.20 $ 5.46 5.56 No The weighted average grant date fair value of stock options granted during the six months ended June 30, 2022 was approximately $ 2.80, and was approximately $ 5.49 and $ 5.47 during the three and six months ended June 30, 2021 , respectively. 2.28 0.91 4.94 and $ 5.20 , respectively. Included in the above table are stock options granted in 2019 to purchase 231,058 shares of the Company’s common stock at an exercise price of $ 0.08 per share, which vest upon a specified performance condition. These stock options vested at the date of the Company’s IPO, which was the specified performance condition. Total stock based compensation expense included in the accompanying condensed consolidated statements of operations was as follows: Schedule of Stock Based Compensation Expense June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 For the three months ended For the six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Research and development $ 154,138 $ 236,929 $ 165,732 $ 516,262 General and administrative 184,413 317,087 192,200 711,830 Total stock based compensation $ 338,551 $ 554,016 $ 357,932 $ 1,228,092 At June 30, 2022, the total unrecognized compensation expense related to non-vested options was approximately $ 2.3 and is expected to be recognized over the remaining weighted average service period of approximately 3.0 years. In March 2021, the Company modified the stock option exercise price for stock options granted during 2020, increasing the exercise price of such stock options (after adjusting for the 1-for-26.4 reverse stock split) from $0.18 or $2.60 to $0.31 or $3.82 per share, respectively Warrants In connection with the IPO, the Company issued warrants to purchase such number of shares of the Company’s common stock equal to 5% of the total shares of common stock issued in the IPO. The warrants are exercisable at $ 5.00 antidilutive provision antidilution Schedule of Warrants Initial Expiration Exercise Warrants Warrants Warrants Issuance Date Exercise Date Date Price Issued Exercised Outstanding January 14, 2022 July 10, 2022 January 11, 2027 $ 5.00 187,500 0 187,500 |
Related-party Transactions
Related-party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related-party Transactions | Note 7 – Related-party Transactions As described in Note 3 to the condensed consolidated financial statements, the Company entered into the Notes with the Holders commencing in May 2017. The Holders of substantially all of the Notes were the Company’s founder and CEO, a member of the Company’s board of directors, and third parties that are family members of the founder and CEO. The Notes were converted into shares of the Company’s common stock on January 14, 2022 in connection with the closing of the IPO. In addition to the above Notes, the Company had amounts due to the founder and CEO that totaled $ 200,000 200,000 On January 4, 2022 and January 6, 2022, the Company issued unsecured promissory notes in the aggregate principal amount of $ 138,887 13,887 12 Subsequent Equity Financing. “Subsequent Equity Financing 5,000,000 Subsequent Equity Financing Additionally, on April 18, 2022, the founder and CEO exercised options to purchase up to 240,526 0.10 24,389 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8 – Commitments and Contingencies Small Molecule Analogues On December 30, 2019, the Company acquired a series of small molecule analogues pursuant to an Asset Purchase Agreement (“APA”). Pursuant to the APA, the Company is required to make a payment of $50,000 upon raising of at least $2 million in funding, and up to $1.75 million based upon successfully meeting clinical and sales milestones no 50,000 Employment Agreement In January 2019, the Company entered into a three-year employment agreement with its CEO which provides a specified base salary and bonus. The employment agreement also provides the CEO with certain benefits while employed and if employment ceases. The Company accrued $ 200,000 In January 2020, the Company amended the employment agreement pursuant to which, in lieu of a cash base salary, the CEO was to be compensated with stock options to purchase 7,575 3,000,000 Effective January 1, 2021, the Company amended the employment agreement with its CEO to provide a revised base salary pre-funding (as defined in the employment agreement). In lieu of cash base salary, the CEO was to be compensated with stock options to purchase 18,939 7.82 5,000,000 5,000,000 5,000,000 757,575 On June 1, 2021, the Company entered into an Amended and Restated Employment Agreement, as amended on September 24, 2021 (the “Amended and Restated Employment Agreement”) with the Company’s CEO. The term of the Amended and Restated Employment Agreement commenced upon the closing of the Company’s IPO and continues for a period of five years and automatically renews for successive one-year periods at the end of each term unless either party provides written notice of their intent not to renew at least 60 days prior to the expiration of the then effective term. Pursuant to the Amended and Restated Employment Agreement, the CEO will receive an annual base salary of $ 485,000 55 (i) $250 million, the CEO shall receive a cash payment of $150,000; (ii) $500 million, the CEO shall receive a cash payment of $350,000; and (iii) $1 billion, the CEO shall receive a cash payment of $750,000 757,575 4.00 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 9 – Subsequent Events There were no material subsequent events that required recognition or additional disclosure in these condensed consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. These financial statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary for a fair statement of the balance sheet, operating results, and cash flows for the periods presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Operating results for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2022 or any other future period. Certain information and footnote disclosure normally included in the annual financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the SEC’s rules and regulations for interim reporting. The Company’s financial position, results of operations, and cash flows are presented in U.S. Dollars. These financial statements and related notes should be read in conjunction with the audited financial statements and related notes thereto for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the SEC on April 1, 2022. The Company operates in one segment. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of HBI and its wholly-owned subsidiaries, HB and Farrington. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Management bases its estimates on historical experience and on assumptions believed to be reasonable under the circumstances. The estimation process often may yield a range of potentially reasonable estimates of the ultimate future outcomes, and management must select an amount that falls within that range of reasonable estimates. Estimates are used in the following areas, among others: research and development expense recognition, valuation of common shares and stock options, allowances of deferred tax assets, valuation of debt related instruments, accrued expenses and liabilities, and cash flow assumptions regarding going concern considerations. Given the situation surrounding the COVID-19 pandemic, many estimates and assumptions have required increased judgment and are subject to a higher degree of variability and volatility. Although management believes the estimates that have been used are reasonable, as events continue to evolve and additional information becomes available, actual results could vary from the estimates that were used. |
Concentration of Credit Risk | Concentration of Credit Risk The Company maintains cash balances with various financial institutions. Account balances at these institutions are insured by the Federal Deposit Insurance Corporation up to $ 250,000 The Company believes that it is not subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. |
Research and Development | Research and Development Research and development costs are expensed as incurred. Research and development expenses include personnel costs associated with research and development activities, including third party contractors to perform research, conduct clinical trials, and manufacture drug supplies and materials. The Company accrues for costs incurred by external service providers, including contract research organizations and clinical investigators, based on its estimates of service performed and costs incurred. These estimates include the level of services performed by third parties, patient enrollment in clinical trials, administrative costs incurred by third parties, and other indicators of the services completed. Approximately $ 61,000 |
Stock Based Compensation | Stock Based Compensation The Company recognizes compensation costs resulting from the issuance of stock based awards to employees, non-employees and directors as an expense in the condensed consolidated statements of operations over the requisite service period based on a measurement of fair value for each stock based award. The fair value of each option grant to employees, non-employees and directors is estimated as of the date of grant using the Black-Scholes option-pricing model, net of actual forfeitures. The fair value is amortized as compensation cost on a straight-line basis over the requisite service period of the awards, which is generally the vesting period. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Prior to January 12, 2022, the Company was a private company and the Company’s common stock has been publicly traded since that date. As a result, the Company has lacked company-specific historical and implied volatility information. Therefore, it has estimated its expected stock volatility based on the historical data regarding the volatility of a publicly traded set of peer companies. The expected term of stock options granted was between five and seven years. The risk-free interest rate was determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. |
Common Stock Valuations | Common Stock Valuations Prior to the IPO, the Company was required to periodically estimate the fair value of common stock with the assistance of an independent third-party valuation expert when issuing stock options and computing its estimated stock based compensation expense and value of shares issued in acquiring product candidates. The assumptions underlying these valuations represented management’s best estimates, which involved inherent uncertainties and the application of significant levels of management judgment. In order to determine the fair value, the Company considered, among other things, contemporaneous valuations of the Company’s common stock; the Company’s business, financial condition and results of operations, including related industry trends affecting its operations; the likelihood of achieving various liquidity events; the lack of marketability of the Company’s common stock; the market performance of comparable publicly traded companies; and U.S. and global economic and capital market conditions. After the closing of the Company’s IPO on January 14, 2022, the fair value of common stock is determined by using the closing price of the Company’s common stock on The Nasdaq Capital Market. |
Treasury Stock | Treasury Stock The Company’s board of directors has authorized the repurchase of up to $ 1 |
Debt Discount and Derivative Instruments | Debt Discount and Derivative Instruments The initial fair value of the redemption feature relating to the convertible debt instruments was treated as a debt discount and was amortized over the term of the related debt using the straight-line method, which approximates the interest method. Amortization of debt discount is recorded as a component of interest expense. If a loan is paid in full, any unamortized debt discounts will be removed from the related accounts and charged to operations. As the convertible debt was converted into common stock at the date of the IPO, the unamortized debt discount was charged to interest expense. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2015-03, Interest - Imputation of Interest The Company accounts for derivative instruments in accordance with FASB Accounting Standards Codification (“ASC”) 815, Derivative and Hedging |
Fair Value Measurements | Fair Value Measurements The Company applies FASB ASC 820, Fair Value Measurement The carrying value of the Company’s prepaid expenses, accounts payable, and accrued expenses approximate fair value because of the short-term maturity of these financial instruments. The redemption feature of the debt instruments is recorded at fair value. See Note 4 to the condensed consolidated financial statements for further details. The valuation hierarchy is composed of three levels. The classification within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels within the valuation hierarchy are described below: Level 1 Inputs: Level 2 Inputs: Level 3 Inputs: |
Deferred Offering Costs | Deferred Offering Costs Deferred offering costs consisted of legal, accounting, printing, and filing fees that the Company capitalized which were offset against the proceeds from the IPO. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset-and-liability method in accordance with FASB ASC 740, Income Taxes Deferred income taxes are recognized for the tax effect of temporary differences between the financial statement carrying amount of assets and liabilities and the amounts used for income tax purposes and for certain changes in valuation allowances. Valuation allowances are recorded to reduce certain deferred tax assets when, in management’s estimation, it is more-likely-than-not that a tax benefit will not be realized. A valuation allowance has been recognized for all periods since it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized in future periods. The Company follows the guidance in FASB ASC Topic 740-10 in assessing uncertain tax positions. The standard applies to all tax positions and clarifies the recognition of tax benefits in the financial statements by providing for a two-step approach of recognition and measurement. The first step involves assessing whether the tax position is more-likely-than-not to be sustained upon examination based upon its technical merits. The second step involves measurement of the amount to be recognized. Tax positions that meet the more-likely-than-not threshold are measured at the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate finalization with the taxing authority. The Company recognizes the impact of an uncertain income tax position in the financial statements if it believes that the position is more likely than not to be sustained by the relevant taxing authority. The Company will recognize interest and penalties related to tax positions in income tax expense. At June 30, 2022 and December 31, 2021, the Company had no unrecognized uncertain income tax positions, and therefore no amounts have been recognized in the condensed consolidated financial statements. |
Net Loss per Share | Net Loss per Share The Company reports loss per share in accordance with FASB ASC 260-10, Earnings Per Share Potentially dilutive securities not included in the computation of loss per share for the three and six months ended June 30, 2022 and 2021 included options to purchase 1,578,813 903,468 1-for-26.4 187,500 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements The Company has evaluated all recent accounting pronouncements and believed that none of them will have a material effect on the Company’s financial position, results of operations, or cash flows, except as described below. Earnings per Share In May 2021, the FASB issued ASU 2021-04, Earnings Per Share Debt-Modifications and Extinguishments Compensation-Stock Compensation Derivatives and Hedging-Contracts in Entity’s Own Equity is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, and was effective for the Company beginning January 1, 2022. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted Debt with Conversion and Other Options and Derivatives and Hedging The FASB recently issued ASU 2020-06, Debt - Debt with Conversion and Other Options Derivatives and Hedging - Contracts in Entity’s Own Equity Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Earnings Per Share Codification Improvements In October 2020, the FASB issued ASU 2020-10, Codification Improvements This ASU is effective for fiscal years beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022. The Company does not expect the adoption of ASU 2020-10 to have a material impact on its condensed |
Convertible Notes - Related P_2
Convertible Notes - Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Debt | The carrying value of the outstanding related-party convertible notes at December 31, 2021 was as follows: Schedule of Convertible Debt Principal amount outstanding $ 3,734,446 Less: debt discount, net of amortization (1,569,003 ) Carrying value $ 2,165,443 Current portion $ 1,392,544 Long-term portion 772,899 Total carrying value $ 2,165,443 |
Redemption Liability (Tables)
Redemption Liability (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Redemption Liability | |
Schedule of Fair Value of Redemption Liability | Schedule of Fair Value of Redemption Liability December 31, 2020 $ 1,325,288 Beginning balance as of December 31, 2020 $ 1,325,288 Initial embedded redemption value 1,487,596 Change in fair value (1,832,651 ) December 31, 2021 $ 980,233 Ending balance as of December 31, 2021 $ 980,233 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock based activities under the 2017 Stock Incentive Plan and 2019 Stock Incentive Plans: Schedule of Stock Option Activity Weighted Weighted Shares Average Average Underlying Exercise Contractual Options Price Terms Outstanding at December 31, 2021 903,468 $ 4.27 7.9 Granted 930,075 3.50 Exercised (240,526 ) 0.10 Forfeited /cancelled (14,204 ) 5.28 Outstanding at June 30, 2022 1,578,813 $ 4.44 8.7 Exercisable options at June 30, 2022 731,547 $ 5.47 7.9 Vested and expected to vest at June 30, 2022 1,578,813 $ 4.44 8.7 |
Schedule of Options Weighted Average Assumptions | Stock options granted during the three and six months ended June 30, 2022 and June 30, Schedule of Options Weighted Average Assumptions For the three months ended For the six months ended June 30, June 30, June 30, June 30, 2022 2021 2022 2021 Expected volatility N/A 111.3 % 94.5 98.4 % 111.3 % Risk-free interest rate N/A 0.81 0.86 % 1.69 2.33 % 0.42% 0.86 % Expected dividend yield N/A 0 % 0 % 0 % Expected life of options in years N/A 5.0 5.5 - 7.0 5.0 Estimated fair value of options granted N/A $ 5.48 5.56 $ 1.02 3.20 $ 5.46 5.56 |
Schedule of Stock Based Compensation Expense | Schedule of Stock Based Compensation Expense June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 For the three months ended For the six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Research and development $ 154,138 $ 236,929 $ 165,732 $ 516,262 General and administrative 184,413 317,087 192,200 711,830 Total stock based compensation $ 338,551 $ 554,016 $ 357,932 $ 1,228,092 |
Schedule of Warrants | Schedule of Warrants Initial Expiration Exercise Warrants Warrants Warrants Issuance Date Exercise Date Date Price Issued Exercised Outstanding January 14, 2022 July 10, 2022 January 11, 2027 $ 5.00 187,500 0 187,500 |
Description of Business and L_2
Description of Business and Liquidity (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jan. 14, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Subsidiary, Sale of Stock [Line Items] | ||||||
Operating Income (Loss) | $ 1,636,854 | $ 1,097,718 | $ 2,988,014 | $ 2,565,311 | ||
Net Cash Provided by (Used in) Operating Activities | 3,668,910 | $ 761,793 | ||||
Retained Earnings (Accumulated Deficit) | $ 11,490,508 | 11,490,508 | $ 6,911,250 | |||
IPO [Member] | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Proceeds from Issuance Initial Public Offering | $ 13,000,000 | $ 13,000,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Federal deposit | $ 250,000 | ||||
Prepaid expenses | $ 61,000 | $ 61,000 | $ 61,000 | ||
Stockholders' equity, reverse stock split | 1-for-26.4 | 1-for-26.4 | |||
Options [Member] | |||||
Potentially dilutive securities excluded from computation of EPS | 1,578,813 | 903,468 | 1,578,813 | 903,468 | |
Warrant [Member] | |||||
Potentially dilutive securities excluded from computation of EPS | 187,500 | 187,500 | |||
Treasury Stock [Member] | Board of Director [Member] | |||||
Stock repurchased during period, shares | 1 |
Schedule of Convertible Debt (D
Schedule of Convertible Debt (Details) | Dec. 31, 2021 USD ($) |
Debt Disclosure [Abstract] | |
Principal amount outstanding | $ 3,734,446 |
Less: debt discount, net of amortization | (1,569,003) |
Total carrying value | 2,165,443 |
Current portion | 1,392,544 |
Long-term portion | $ 772,899 |
Convertible Notes - Related P_3
Convertible Notes - Related Parties (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jan. 14, 2022 | Nov. 30, 2020 | May 31, 2017 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Short-Term Debt [Line Items] | |||||||||
Debt instrument, face amount | $ 3,734,446 | ||||||||
Interest Expense | $ 188,900 | $ 1,591,244 | $ 337,090 | ||||||
Interest Payable, Current | 179,621 | ||||||||
Debt Instrument, Unamortized Discount | 1,569,003 | ||||||||
Interest Expense, Debt | 1,591,000 | 189,000 | 1,591,000 | 337,000 | |||||
Debt conversion, original debt, amount | 805,000 | ||||||||
Rolled Over [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt conversion, original debt, amount | 639,000 | $ 166,000 | |||||||
Convertible Promissory Note Agreements [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt instrument, interest rate, stated percentage | 5% | ||||||||
Company receives gross proceeds | $ 7,500,000 | $ 5,000,000 | |||||||
Debt instrument, term | 2 years | ||||||||
Debt instrument, description | (i) 80% of the price paid per share for Equity Securities by the investors in the Next Equity Financing, or (ii) an equity valuation of $25 million ($50 million for Notes issued after December 2020) | ||||||||
Debt conversion, converted instrument, shares issued | 1,225,384 | ||||||||
Interest Expense | 1,569,000 | $ 149,000 | 1,569,000 | $ 263,000 | |||||
Interest Payable, Current | $ 187,000 | 33,700 | 33,700 | $ 180,000 | |||||
Debt Instrument, Unamortized Discount | 1,535,000 | 1,535,000 | |||||||
Convertible Promissory Note Agreements [Member] | Embedded Derivative Financial Instruments [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt Instrument, Fair Value Disclosure | $ 2,421,000 | $ 2,421,000 | |||||||
Convertible Promissory Note Agreements [Member] | December 2020 Note [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt instrument, interest rate, stated percentage | 20% | 20% | |||||||
Debt instrument, term | 3 years | ||||||||
Debt instrument, face amount | $ 21,350 |
Schedule of Fair Value of Redem
Schedule of Fair Value of Redemption Liability (Details) | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Redemption Liability | |
Beginning balance as of December 31, 2020 | $ 1,325,288 |
Initial embedded redemption value | 1,487,596 |
Change in fair value | (1,832,651) |
Ending balance as of December 31, 2021 | $ 980,233 |
Redemption Liability (Details N
Redemption Liability (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Redemption Liability | ||||||
Loss on redemption value | $ 269,471 | $ 903,744 | ||||
Fair value, measurement liability value | $ 980,233 | $ 1,325,288 |
Common Stock (Details Narrative
Common Stock (Details Narrative) - USD ($) | 6 Months Ended | ||||||
Jun. 29, 2022 | Feb. 16, 2022 | Jan. 14, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Apr. 30, 2019 | |
Subsidiary, Sale of Stock [Line Items] | |||||||
Common stock, shares authorized | 250,000,000 | 250,000,000 | 250,000,000 | ||||
Deferred Offering Costs | $ 546,651 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 1,578,813 | 903,468 | |||||
Debt Conversion, Converted Instrument, Amount | $ 3,734,446 | ||||||
Stock Issued During Period, Value, Issued for Services | 100,000 | ||||||
Treasury Stock Shares Issued | 1,000,000 | ||||||
[custom:PrepaymentOfPurchaseOfTreasuryStockAtCost] | 24,703 | ||||||
Consulting Services Agreement [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Shares Issued, Price Per Share | $ 3.15 | ||||||
Stock Issued During Period, Shares, Issued for Services | 31,746 | ||||||
Stock Issued During Period, Value, Issued for Services | $ 100,000 | ||||||
IPO [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Stock Issued During Period, Shares, New Issues | 3,750,000 | ||||||
Shares Issued, Price Per Share | $ 4 | ||||||
Gross proceeds from issuance initial public offering | $ 15,000,000 | ||||||
Underwriting discount | 1,100,000 | ||||||
Commissions and other offering expenses | 1,000,000 | ||||||
Deferred Offering Costs | 546,651 | ||||||
Proceeds from Issuance Initial Public Offering | $ 13,000,000 | $ 13,000,000 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 562,500 | ||||||
Debt Conversion, Converted Instrument, Shares Issued | 1,225,384 | ||||||
[custom:StockpurchasedTreasuryStock] | 30,000 | ||||||
[custom:StockpurchasedTreasuryStockValue] | $ 25,000 | ||||||
[custom:PrepaymentOfPurchaseOfTreasuryStockAtCost] | $ 25,000 | ||||||
[custom:PrepaymentOfPurchaseOfTreasuryStockAtCostShares] | 33,700 | ||||||
IPO [Member] | Principal Amount [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Debt Conversion, Converted Instrument, Amount | $ 3,734,000 | ||||||
IPO [Member] | Accrued Interest [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Debt Conversion, Converted Instrument, Amount | 187,000 | ||||||
IPO [Member] | Redemption Liability [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Debt Conversion, Converted Instrument, Amount | $ 980,000 |
Schedule of Stock Option Activi
Schedule of Stock Option Activity (Details) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Shares underlying option, outstanding, beginning | 903,468 | |
Weighted average exercise price, outstanding, beginning | $ 4.27 | |
Weighted average contractual terms outstanding, beginning | 7 years 10 months 24 days | |
Shares underlying option, granted | 0 | 930,075 |
Weighted average exercise price, granted | $ 3.50 | |
Shares underlying option, exercised | (240,526) | |
Weighted average exercise price, exercised | $ 0.10 | |
Shares underlying option, forfeited /cancelled | (14,204) | |
Weighted average exercise price, forfeited /cancelled | $ 5.28 | |
Shares underlying option, outstanding, ending | 1,578,813 | 1,578,813 |
Weighted average exercise price, outstanding, ending | $ 4.44 | $ 4.44 |
Weighted average contractual terms, outstanding, ending | 8 years 8 months 12 days | |
Shares underlying option, exercisable, ending | 731,547 | 731,547 |
Weighted average exercise price, exercisable, ending | $ 5.47 | $ 5.47 |
Weighted average contractual terms, exercisable | 7 years 10 months 24 days | |
Shares underlying option, vested and expected to vest, ending | 1,578,813 | 1,578,813 |
Weighted average exercise price, vested and expected to vest, ending | $ 4.44 | $ 4.44 |
Weighted average contractual terms, vested and expected to vest | 8 years 8 months 12 days |
Schedule of Options Weighted Av
Schedule of Options Weighted Average Assumptions (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Expected volatility | 111.30% | 111.30% | ||
Expected dividend yield | 0% | 0% | 0% | |
Expected life of options in years | 5 years | 5 years | ||
Estimated fair value of options granted | $ 5.49 | $ 2.80 | $ 5.47 | |
Minimum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Expected volatility | 94.50% | |||
Risk-free interest rate | 0.81% | 1.69% | 0.42% | |
Expected life of options in years | 5 years 6 months | |||
Estimated fair value of options granted | $ 5.48 | $ 1.02 | $ 5.46 | |
Maximum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Expected volatility | 98.40% | |||
Risk-free interest rate | 0.86% | 2.33% | 0.86% | |
Expected life of options in years | 7 years | |||
Estimated fair value of options granted | $ 5.56 | $ 3.20 | $ 5.56 |
Schedule of Stock Based Compens
Schedule of Stock Based Compensation Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock based compensation | $ 338,551 | $ 554,016 | $ 357,932 | $ 1,228,092 |
Research and Development Expense [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock based compensation | 154,138 | 236,929 | 165,732 | 516,262 |
General and Administrative Expense [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock based compensation | $ 184,413 | $ 317,087 | $ 192,200 | $ 711,830 |
Schedule of Warrants (Details)
Schedule of Warrants (Details) - Warrant [Member] | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Warrants, Issuance Date | Jan. 14, 2022 |
Warrants, Initial Exercise Date | Jul. 10, 2022 |
Warrants, Expiration Date | Jan. 11, 2027 |
Warrants, Exercise Price | $ / shares | $ 5 |
Warrants, Issued | 187,500 |
Warrant, Exercised | 0 |
Warrants, Outstanding | 187,500 |
Stock Based Compensation (Detai
Stock Based Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
May 31, 2021 | Aug. 30, 2019 | Mar. 31, 2021 | Jan. 31, 2021 | Jun. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2019 | Jul. 31, 2019 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||
Stock option granted | 0 | 930,075 | ||||||||||
Number of options, outstanding | 1,578,813 | 1,578,813 | 903,468 | |||||||||
Weighted average contractual term | 8 years 8 months 12 days | |||||||||||
Weighted average exercise price | $ 4.44 | $ 4.44 | $ 4.27 | |||||||||
Weighted average grant date fair value of stock options granted | $ 5.49 | 2.80 | $ 5.47 | |||||||||
Weighted average fair value of stock options vested | $ 2.28 | $ 4.94 | 0.91 | $ 5.20 | ||||||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 3.50 | |||||||||||
Unrecognized compensation expense | $ 2.3 | $ 2.3 | ||||||||||
Unrecognized compensation expense, recognized period | 3 years | |||||||||||
Options term of awards, description | the Company modified the stock option exercise price for stock options granted during 2020, increasing the exercise price of such stock options (after adjusting for the 1-for-26.4 reverse stock split) from $0.18 or $2.60 to $0.31 or $3.82 per share, respectively | |||||||||||
Warrant [Member] | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||
Warrant exercise price | $ 5 | $ 5 | ||||||||||
Share-Based Payment Arrangement, Option [Member] | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||
Stock option granted | 231,058 | |||||||||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.08 | |||||||||||
2017 Stock Incentive Plan [Member] | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||
Number of shares authorized to issue | 94,696 | 94,696 | ||||||||||
Stock option granted | 92,801 | |||||||||||
Shares issued price per share | $ 13.20 | $ 13.20 | ||||||||||
Number of shares available for grant | 1,895 | 1,895 | ||||||||||
Number of options, outstanding | 92,801 | 92,801 | 92,801 | |||||||||
Weighted average contractual term | 5 years 8 months 12 days | 6 years 2 months 12 days | ||||||||||
2019 Stock Incentive Plan [Member] | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||
Number of shares authorized to issue | 3,901,512 | 3,901,512 | 3,901,512 | 284,090 | ||||||||
Stock option granted | 3,336,385 | 2,420,514 | ||||||||||
Number of shares available for grant | 565,127 | 565,127 | 1,480,998 | |||||||||
Number of options, outstanding | 1,486,012 | 1,486,012 | 810,667 | |||||||||
Weighted average contractual term | 8 years 10 months 24 days | 8 years | ||||||||||
Additional number of shares authorized to issue | 467,171 | 2,575,757 | 574,494 | |||||||||
Weighted average exercise price | $ 3.90 | $ 3.90 | $ 3.25 |
Related-party Transactions (Det
Related-party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Apr. 18, 2022 | Apr. 02, 2022 | Jan. 06, 2022 | Jun. 30, 2022 | Jun. 30, 2022 | Jan. 04, 2022 | Dec. 31, 2021 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||
Due to related parties | $ 200,000 | ||||||
Debt instrument, face amount | 3,734,446 | ||||||
Debt instrument, unamortized discount | 1,569,003 | ||||||
Stock options exercised, shares | 240,526 | ||||||
Options weighted average exercise price | $ 0.10 | ||||||
Stock options exercised, value | $ 24,389 | $ 24,389 | |||||
Unsecured Promissory Notes [Member] | |||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||
Debt instrument, face amount | $ 138,887 | $ 138,887 | |||||
Debt instrument, unamortized discount | $ 13,887 | $ 13,887 | |||||
Debt instrument, interest rate, effective percentage | 12% | 12% | |||||
Proceeds from issuance or sale of equity | $ 5,000,000 | ||||||
Founder and Chief Executive Officer [Member] | |||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||
Due to related parties | $ 200,000 | ||||||
Repayment of related party debt | $ 200,000 | ||||||
Options weighted average exercise price | $ 0.10 | ||||||
Stock options exercised, value | $ 24,389 | ||||||
Founder and Chief Executive Officer [Member] | Maximum [Member] | |||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||
Stock options exercised, shares | 240,526 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 01, 2021 | Jan. 01, 2021 | Dec. 30, 2019 | Jan. 31, 2020 | Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Jan. 31, 2019 | |
Loss Contingencies [Line Items] | ||||||||
Options grant in period | 0 | 930,075 | ||||||
Asset Purchase Agreement [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Asset acquisition description | the Company acquired a series of small molecule analogues pursuant to an Asset Purchase Agreement (“APA”). Pursuant to the APA, the Company is required to make a payment of $50,000 upon raising of at least $2 million in funding, and up to $1.75 million based upon successfully meeting clinical and sales milestones | |||||||
Payments to acquire productive assets | $ 0 | $ 0 | ||||||
Milestone payment | $ 50,000 | $ 50,000 | ||||||
Employee Agreement [Member] | Chief Executive Officer [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Accrued salaries | $ 200,000 | |||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 18,939 | 7,575 | ||||||
Proceeds from Issuance or Sale of Equity | $ 5,000,000 | $ 3,000,000 | ||||||
Share issued price per share | $ 7.82 | |||||||
Options grant in period | 757,575 | |||||||
Employee Agreement [Member] | Chief Executive Officer [Member] | Minimum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Proceeds from Issuance or Sale of Equity | $ 5,000,000 | |||||||
Employee Agreement [Member] | Chief Executive Officer [Member] | Minimum [Member] | Investor [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Proceeds from Issuance or Sale of Equity | $ 5,000,000 | |||||||
Restated Employment Agreement [Member] | Chief Executive Officer [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Share issued price per share | $ 4 | |||||||
Options grant in period | 757,575 | |||||||
Professional Fees | $ 485,000 | |||||||
Cash bouns recevied | 55% | |||||||
Other Commitments, Description | (i) $250 million, the CEO shall receive a cash payment of $150,000; (ii) $500 million, the CEO shall receive a cash payment of $350,000; and (iii) $1 billion, the CEO shall receive a cash payment of $750,000 |