Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

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Summary of Significant Accounting Policies (Tables)
9 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Summary of stock-based compensation expense
     Three Months Ended December 31,      Nine Months Ended December 31,  
     2019      2018      2019      2018  
                         
                         
 Research and development expense   $ 502,500     $ 274,900     $ 1,060,600     $ 955,600  
 General and administrative expense     1,129,700       459,800       2,028,100       1,564,100  
 Total stock-based compensation expense   $ 1,632,200     $ 734,700     $ 3,088,700     $ 2,519,700  
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  

 

Upon approval of the 2019 Plan by our stockholders, no further option or other equity awards were permitted from our 2016 Plan and all remaining authorized shares of our common stock available for issuance under the 2016 Plan, 1,388,412 shares, became available for issuance under the 2019 Plan.

 

During the quarter ended December 31, 2019, we granted options from our 2019 Plan to the independent members of our Board, our officers and employees and certain consultants to purchase an aggregate of 1,990,000 shares of our common stock at exercise prices ranging from $0.50 to $1.41 per share. Options granted to Board members, officers, employees and most consultants were vested 25% at grant with the remaining options vesting ratably over the following 24 months. In the case of options granted to certain consultants, the options were vested 25% at grant but the remaining vesting period was less than 24 months to coincide with contractual terms. We valued the options using the Black-Scholes Option Pricing Model and the following assumptions:

 

      Options Granted on               
      October 21, 2019        November 7, 2019        December 4, 2019        December 15, 2019  
      (weighted average)       (weighted average)       (weighted average)       (weighted average)  
Exercise price   $ 1.41     $ 1.20     $ 0.50     $ 0.70  
Market price on date of grant   $ 1.41     $ 1.01     $ 0.44     $ 0.70  
Risk-free interest rate     1.62 %     1.74 %     1.60 %     1.66 %
Expected term (years)     5.39       5.06       5.06       5.06  
Volatility     87.52 %     88.02 %     88.28 %     88.44 %
Expected dividend yield     0.00 %     0.00 %     0.00 %     0.00 %
                                 
Fair value per share at grant date   $ 0.99     $ 0.67     $ 0.30     $ 0.49  
Number of shares     1,575,000       65,000       250,000       100,000  

 

 

Schedule of potentially dilutive securities excluded from computation of earnings per share

    As of December 31,
    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     9,928,088       6,410,338  
Outstanding warrants to purchase common stock     23,050,204       21,499,955  
Total     37,206,544       32,138,545  

 

____________        
(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.