Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.19.3
Summary of Significant Accounting Policies (Tables)
6 Months Ended
Sep. 30, 2019
Accounting Policies [Abstract]  
Summary of stock-based compensation expense
     Three Months Ended September 30,      Six Months Ended September 30,  
     2019      2018      2019      2018  
                         
 Research and development expense   $ 167,500     $ 450,600     $ 558,100     $ 680,700  
 General and administrative expense     226,000       721,800       898,400       1,104,300  
 Total stock-based compensation expense   $ 393,500     $ 1,172,400     $ 1,456,500     $ 1,785,000  
Fair value assumptions

In May 2019, the Compensation Committee of our Board of Directors (the Board) approved the grant of options from our 2016 Amended and Restated Stock Incentive Plan (the 2016 Plan) to purchase an aggregate of 1,220,000 shares of our common stock at a then above-market exercise price of $1.00 per share to the independent members of our Board, our officers and employees and certain consultants. The options vested 25% upon grant with the remaining shares vesting ratably over three years for independent directors, officers and employees, and over two years for consultants. We valued the options granted in May 2019 using the Black-Scholes Option Pricing Model and the following weighted average assumptions:

 

Assumption:   May 2019  
Market price per share at grant date   $ 0.80  
Exercise price per share   $ 1.00  
Risk-free interest rate     2.12 %
Expected term in years     5.53  
Volatility     85.90 %
Dividend rate     0.0 %
Shares     1,220,000  
         
Fair Value per share   $ 0.54  

 

Additionally, in May 2019, the Compensation Committee approved, subject to subsequent stockholder approval at our 2019 Annual Meeting of Stockholders (Annual Meeting) held in September 2019, the 2019 Omnibus Equity Incentive Plan (the 2019 Plan) and designated 7.5 million shares of our authorized common stock to be reserved thereunder. Further, in May 2019, the Compensation Committee granted options pursuant to the 2019 Plan to one of our officers to purchase 170,000 shares of our common stock at a then above-market exercise price of $1.00 per share, which grant was contingent upon the approval of the 2019 Plan by our stockholders. Our stockholders approved the 2019 Plan at our Annual Meeting and ratified the contingent grant. The option vested 25% upon approval of the 2019 Plan and the remaining shares vest ratably over three years. We valued the option using the Black-Scholes Option Pricing Model and the following assumptions:

 

Assumption:   September 2019  
Market price per share at grant date   $ 0.84  
Exercise price per share   $ 1.00  
Risk-free interest rate     1.45 %
Expected term in years     5.58  
Volatility     86.04 %
Dividend rate     0.0 %
Shares     170,000  
         
Fair Value per share   $ 0.56  

 

Schedule of potentially dilutive securities excluded from computation of earnings per share
    As of September 30,  
    2019     2018  
             
Series A Preferred stock issued and outstanding (1)     750,000       750,000  
Series B Preferred stock issued and outstanding (2)     1,160,240       1,160,240  
Series C Preferred stock issued and outstanding (3)     2,318,012       2,318,012  
Outstanding options under the Company's Amended and Restated 2016 (formerly 2008) Stock Incentive Plan and 2019 Omnibus Equity Incentive Plan     8,014,838       6,160,338  
Outstanding warrants to purchase common stock     21,242,954       20,709,516  
                 
Total     33,486,044       31,098,106  

 

____________        
(1) Assumes exchange under the terms of the October 11, 2012 Note Exchange and Purchase Agreement, as amended.
(2) Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series B 10% Convertible Preferred Stock, effective May 5, 2015; excludes common shares issuable in payment of dividends on Series B Preferred upon conversion.
(3) Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series C Convertible Preferred Stock, effective January 25, 2016.