|
Delaware
(State or other jurisdiction of
incorporation or organization) |
| |
2834
(Primary Standard Industrial
Classification Code Number) |
| |
85-0870387
(I.R.S. Employer
Identification No.) |
|
|
Copies to:
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| |||
|
David S. Rosenthal, Esq.
Anna Tomczyk, Esq. Dechert LLP 1095 Avenue of the Americas New York, NY 10036 Telephone: (212) 698-3500 |
| |
Lance Brunson, Esq.
Brunson Chandler & Jones, PLLC 175 South Main Street, 15th Floor Salt Lake City, UT 84111 Telephone: 801-303-5737 |
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Large accelerated filer
☐
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Accelerated filer
☐
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Non-accelerated filer
☒
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Smaller reporting company
☒
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Emerging growth company
☒
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Page
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| | | | F-1 | | |
| | |
Year ended December 31,
|
| |
Three Months Ended March 31,
|
| ||||||||||||||||||
Statements of Operations Data
|
| |
2021
|
| |
2020
|
| |
2022
|
| |
2021
|
| ||||||||||||
| | | | | | | | | | | | | | |
(as restated)
|
| | | | | | | |||
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
General and administrative expense
|
| | | $ | 4,973,245 | | | | | $ | 4,629,070 | | | | | $ | 933,817 | | | | | $ | 1,286,992 | | |
Research and development expense
|
| | | | 2,224,555 | | | | | | 936,776 | | | | | | 1,070,704 | | | | | | 427,995 | | |
Loss from operations
|
| | | $ | 7,197,800 | | | | | $ | 5,565,846 | | | | | $ | 2,004,521 | | | | | $ | 1,714,947 | | |
Total other income (expense)
|
| | | | (3,031,171) | | | | | | (2,260,162) | | | | | $ | 3,867,983 | | | | | | (5,505,304) | | |
Net income (loss)
|
| | | $ | (10,228,971) | | | | | $ | (7,826,008) | | | | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Net income (loss) attributable to common stockholders, basic and diluted
|
| | | $ | (10,228,971) | | | | | $ | (9,297,872) | | | | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Basic weighted average number of shares outstanding
|
| | | | 6,666,005 | | | | | | 5,775,898 | | | | | | 6,913,492 | | | | | | 5,909,793 | | |
Diluted weighted average number of shares outstanding
|
| | | | 6,666,005 | | | | | | 5,775,898 | | | | | | 7,562,978 | | | | | | 5,909,793 | | |
Net income (loss) per share attributable to common stockholders, basic
|
| | | $ | (1.53) | | | | | $ | (1.61) | | | | | $ | 0.18 | | | | | $ | (1.22) | | |
Net income (loss) per share attributable to common stockholders, diluted
|
| | | $ | (1.53) | | | | | $ | (1.61) | | | | | $ | (0.05) | | | | | $ | (1.22) | | |
| | |
Actual
|
| |
Pro Forma(1)
|
| |
Pro Forma as Adjusted(2)
|
| |||||||||
Balance Sheet Data as of March 31, 2022
(unaudited) |
| | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 49,383 | | | | | $ | 1,820,939 | | | | | $ | 8,446,511 | | |
Total assets
|
| | | | 540,919 | | | | | | 2,312,475 | | | | | | 8,938,047 | | |
Working capital (deficit)(3)
|
| | | | (8,555,743) | | | | | | (1,527,468) | | | | | | 5,098,105 | | |
Preferred stock
|
| | | | 270 | | | | | | — | | | | | | — | | |
Common stock
|
| | | | 691 | | | | | | 1,095 | | | | | | 1,254 | | |
Additional paid-in capital
|
| | | | 9,009,619 | | | | | | 23,985,792 | | | | | | 30,611,205 | | |
Accumulated deficit
|
| | | | (17,074,787) | | | | | | (25,022,819) | | | | | | (25,022,819) | | |
Total stockholders’ equity (deficit)
|
| | | $ | (8,064,207) | | | | | $ | (1,035,932) | | | | | $ | 5,589,641 | | |
| | |
As of
March 31, 2022 (unaudited) |
| |||||||||||||||
| | |
Actual
|
| |
Pro Forma
|
| |
Pro
Forma as Adjusted |
| |||||||||
Cash(1) | | | | $ | 49,383 | | | | | $ | 1,820,939 | | | | | $ | 8,446,511 | | |
2022 Convertible Note Liability
|
| | | | — | | | | | | 216,000 | | | | | | 216,000 | | |
SAFE liability
|
| | | | 3,190,000 | | | | | | — | | | | | | — | | |
Warrant liability
|
| | | | 2,282,719 | | | | | | — | | | | | | — | | |
Stockholders’ equity (deficit): | | | | | | | | | | | | | | | | | | | |
Series X Preferred Stock, none issued and outstanding (actual); 0
issued and outstanding (pro forma and pro forma as adjusted) |
| | | | — | | | | | | — | | | | | | — | | |
Preferred Stock, 2,696,439 issued and outstanding at March 31, 2022; aggregate liquidation preference of $2,808,148 as of March 31, 2022 (actual); none issued and outstanding (pro forma and pro forma adjusted)
|
| | | | 270 | | | | | | — | | | | | | — | | |
Common Stock, 6,913,492 shares issued and outstanding; 11,308,097 shares issued and outstanding (pro forma); 12,853,551 issued and outstanding (pro forma as adjusted)
|
| | | | 691 | | | | | | 1,095 | | | | | | 1,254 | | |
Additional paid in capital
|
| | | | 9,009,619 | | | | | | 23,985,792 | | | | | | 30,611,205 | | |
Accumulated deficit
|
| | | | (17,074,787) | | | | | | (25,022,819) | | | | | | (25,022,819) | | |
Total stockholders’ equity (deficit)(1)
|
| | | | (8,064,207) | | | | | | (1,035,932) | | | | | | 5,589,641 | | |
Total capitalization(1)
|
| | | $ | (2,591,488) | | | | | $ | (819,932) | | | | | $ | 5,805,641 | | |
|
Assumed initial public offering price per share
|
| | | | | | | | | $ | 5.50 | | |
|
Tangible book value per share of common stock at March 31, 2022
|
| | | $ | (1.17) | | | | |||||
|
Pro forma adjustments to tangible book value per share of common stock
|
| | | | 1.08 | | | | | | | | |
|
Pro forma tangible book value per share of common stock at March 31, 2022
|
| | | | (0.09) | | | | | | | | |
|
Increase in net tangible book value per share of common stock attributable to this offering
|
| | | | 0.54 | | | | | | | | |
|
Pro forma adjusted tangible book value per share of common stock after this offering
|
| | | | | | | | | | 0.45 | | |
|
Dilution per share of common stock to new investors in this offering
|
| | | | | | | | | $ | 5.05 | | |
| | |
Shares Purchased
|
| |
Total Consideration
|
| |
Average Price
Per Share |
| |||||||||||||||||||||
| | |
Number
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| ||||||||||||||||||
Existing stockholders
|
| | | | 8,470,927 | | | | | | 84.6% | | | | | $ | 4,107,500 | | | | | | 33% | | | | | $ | 0.48 | | |
Investors participating in this offering
|
| | | | 1,545,454 | | | | | | 15.4% | | | | | $ | 8,499,997 | | | | | | 67% | | | | | $ | 5.50 | | |
Total
|
| | | | 10,016,381 | | | | | | 100% | | | | | $ | 12,607,497 | | | | | | 100% | | | |
| | |
Three Months Ended March 31,
|
| |||||||||
|
2022
|
| |
2021
|
| ||||||||
Operating expenses | | | | | | | | | | | | | |
General and administrative
|
| | | $ | 933,817 | | | | | $ | 1,286,992 | | |
Research and development
|
| | | | 1,070,704 | | | | | | 427,955 | | |
Total operating expenses
|
| | | | 2,004,521 | | | | | | 1,714,947 | | |
Loss from operations
|
| | | | (2,004,521) | | | | | | (1,714,947) | | |
Other income (expense), net
|
| | | | 3,867,983 | | | | | | (5,505,304) | | |
Net income (loss)
|
| | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Operating expenses | | | | | | | | | | | | | |
General and administrative
|
| | | $ | 4,973,245 | | | | | $ | 4,629,070 | | |
Research and development
|
| | | | 2,224,555 | | | | | | 936,776 | | |
Total operating expenses
|
| | | | 7,197,800 | | | | | | 5,565,846 | | |
Loss from operations
|
| | | | (7,197,800) | | | | | | (5,565,846) | | |
Other expense, net
|
| | | | (3,031,171) | | | | | | (2,260,162) | | |
Net loss
|
| | | $ | (10,228,971) | | | | | $ | (7,826,008) | | |
Outcome
|
| |
Suramin
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| |
Placebo
|
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Instruments
|
| |
Factor or
behavior |
| |
Time after
Treatment (days) |
| |
Difference from
baseline (mean ± SD) |
| |
95% CI
|
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d(1)
|
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N
|
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P(2)
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P(3)
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Difference from
baseline (mean ± SD) |
| |
95% CI
|
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d(1)
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N
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P(2)
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p(3)
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Primary outcomes | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ADOS-2
|
| | Comparison | | | | | 45 | | | |
-1.6 ± 0.55
|
| |
-2.3 to -0.9
|
| | | | 2.9 | | | | | | 5 | | | | | | 0.0028 | | | | | | 0.038 | | | |
-0.4 ± 0.55
|
| |
-1.1 to + 0.28
|
| | | | 0.7 | | | | | | 5 | | | | | | 0.18 | | | | | | 0.16 | | |
| | | Raw | | | | | 45 | | | |
-4.6 ± 1.9
|
| |
-7.0. to -2.2
|
| | | | 2.4 | | | | | | 5 | | | | | | 0.0062 | | | | | | 0.039 | | | |
-0.4 ± 1.8
|
| |
-2.7 to +1.9
|
| | | | 0.22 | | | | | | 5 | | | | | | 0.65 | | | | | | 0.58 | | |
| | | Social | | | | | 45 | | | |
-3.2 ± 1.9
|
| |
-5.6 to -0.8
|
| | | | 2.4 | | | | | | 5 | | | | | | 0.020 | | | | | | 0.043 | | | |
0.0 ± 1.7
|
| |
-2.2 to +2.2
|
| | | | 0 | | | | | | 5 | | | | | | 0.99 | | | | | | 0.71 | | |
| | | Rest/Rep | | | | | 45 | | | |
-1.4 ± 0.89
|
| |
-2.5 to -0.29
|
| | | | 1.6 | | | | | | 5 | | | | | | 0.025 | | | | | | 0.059 | | | |
-0.4 ± 2.1
|
| |
-3.0 to +2.2
|
| | | | 0.19 | | | | | | 5 | | | | | | 0.69 | | | | | | 0.58 | | |
EOWPVT
|
| | Vocabulary | | | | | 45 | | | |
-4.2 ± -8.3
|
| |
-14.50 to +6.1
|
| | | | -0.51 | | | | | | 5 | | | | | | 0.32 | | | | | | 0.50 | | | |
+2.0 ± 4.6
|
| |
-3.8 to +7.8
|
| | | | 0.43 | | | | | | 5 | | | | | | 0.39 | | | | | | 0.50 | | |
Secondary Outcomes | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ABC
|
| | Stereotypy | | | | | 7 | | | |
36 ± 2.1
|
| |
-6.2 to -1.0
|
| | | | 1.7 | | | | | | 5 | | | | | | 0.018 | | | | | | 0.043 | | | |
+0.4 ± 1.9
|
| |
-2.0 to +2.5
|
| | | | -0.21 | | | | | | 5 | | | | | | 0.67 | | | | | | 0.68 | | |
| | | Stereotypy | | | | | 45 | | | |
-4.0 ± 2.3
|
| |
-6.9 to -1.1
|
| | | | 1.7 | | | | | | 5 | | | | | | 0.019 | | | | | | 0.042 | | | |
+1.0 ± 4.3
|
| |
4.3 to +6.3
|
| | | | -0.23 | | | | | | 5 | | | | | | 0.63 | | | | | | 0.69 | | |
ATEC
|
| | Total | | | | | 7 | | | |
-10 ± 7.7
|
| |
-20 to -0.46
|
| | | | 1.3 | | | | | | 5 | | | | | | 0.044 | | | | | | 0.043 | | | |
+7.2 ± 14
|
| |
-10 to +25
|
| | | | -0.51 | | | | | | 5 | | | | | | 0.32 | | | | | | 0.35 | | |
| | | Language | | | | | 7 | | | |
-2.2 ± 1.5
|
| |
-4.0 to -0.36
|
| | | | 1.4 | | | | | | 5 | | | | | | 0.021 | | | | | | 0.059 | | | |
0.0 ± 4.1
|
| |
-5.0 to +5.0
|
| | | | 0 | | | | | | 5 | | | | | | 0.99 | | | | | | 0.89 | | |
| | | Sociability | | | | | 7 | | | |
-3.6 ± 2.6
|
| |
-6.8 to -0.36
|
| | | | 1.4 | | | | | | 5 | | | | | | 0.025 | | | | | | 0.063 | | | |
-0.8 ± 2.8
|
| |
4.3 to +2.6
|
| | | | 0.29 | | | | | | 5 | | | | | | 0.55 | | | | | | 0.58 | | |
| | | Language | | | | | 45 | | | |
-2.0 ± 1.4
|
| |
-2.7 to -0.49
|
| | | | 1.4 | | | | | | 5 | | | | | | 0.034 | | | | | | 0.059 | | | |
-0.2 ± 2.9
|
| |
-3.8 to +3.4
|
| | | | 0.07 | | | | | | 5 | | | | | | 0.88 | | | | | | 0.79 | | |
CGI
|
| |
Overall ASD
|
| | | | 45 | | | |
-1.8 ± 1.04
|
| |
-3.4 to -0.15
|
| | | | 1.7 | | | | | | 5 | | | | | | 0.05 | | | | | | n/a | | | |
0.0 ± 0.34
|
| |
-0.55 to +0.55
|
| | | | 0 | | | | | | 5 | | | | | | 0.99 | | | | | | n/a | | |
| | |
E. Language
|
| | | | 45 | | | |
-2.0 ± 1.04
|
| |
-3.6 to -0.35
|
| | | | 1.9 | | | | | | 5 | | | | | | 0.01 | | | | | | n/a | | | |
0.0 ± 0.34
|
| |
-0.55 to +0.55
|
| | | | 0 | | | | | | 5 | | | | | | 0.99 | | | | | | n/a | | |
| | |
Social Inter.
|
| | | | 45 | | | |
-2.0 ± 1.04
|
| |
-3.6 to -0.35
|
| | | | 1.9 | | | | | | 5 | | | | | | 0.01 | | | | | | n/a | | | |
0.0 ± 0.34
|
| |
-0.55 to +0.55
|
| | | | 0 | | | | | | 5 | | | | | | 0.99 | | | | | | n/a | | |
RBQ
|
| | Total | | | | | 45 | | | |
-3.2 ± 5.8
|
| |
-10.4 to +4.0
|
| | | | 0.55 | | | | | | 5 | | | | | | 0.28 | | | | | | 0.22 | | | |
-0.8 ± 3.3
|
| |
-4.9 to 3.3
|
| | | | 0.24 | | | | | | 5 | | | | | | 0.62 | | | | | | 0.47 | | |
Name
|
| |
Age
|
| |
Position(s)
|
|
Howard J. Weisman | | |
63
|
| | Chief Executive Officer and Class III Director | |
Stephen D. Sheldon | | |
42
|
| | Chief Financial Officer | |
Michael Derby | | |
49
|
| | Executive Chairman of the Board and Class II Director | |
Zachary Rome | | |
38
|
| | Chief Operating Officer and Class I Director | |
Karen LaRochelle | | |
55
|
| | Class II Director | |
John F. Coelho | | |
53
|
| | Class III Director | |
| | |
Annual Compensation
|
| | ||||||||||||||
Name and Principal Position
|
| |
Salary
|
| |
Bonus
|
| |
TOTAL
|
| |||||||||
Howard J. Weisman
Chief Executive Officer |
| | | $ | 400,000 | | | | | $ | 158,333 | | | | | $ | 558,333 | | |
Michael Derby
Executive Chairman |
| | | $ | 325,000 | | | | | $ | 81,250 | | | | | $ | 406,250 | | |
David Hough
Former Chief Medical Officer(1) |
| | | $ | 253,125 | | | | | $ | 74,375 | | | | | $ | 327,500 | | |
Name
|
| |
Fees Earned or
Paid in Cash ($) |
| |
All Other
Compensation ($) |
| |
Total
($) |
| |||||||||
Karen Dawes(1)
|
| | | | 52,250 | | | | | | — | | | | | | 52,250 | | |
Karen LaRochelle
|
| | | | 50,000 | | | | | | — | | | | | | 50,000 | | |
Paul Wotton(2)
|
| | | | 42,500 | | | | | | — | | | | | | 42,500 | | |
Robert F. Apple(3)
|
| | | | 65,000 | | | | | | — | | | | | | 65,000 | | |
Name of Beneficial Owner(1)
|
| |
Number of
Shares Beneficially Owned Prior to the Offering(2) |
| |
Percentage
Owned Prior to the Offering |
| |
Number of
Shares Beneficially Owned After the Offering(2) |
| |
Percentage
Owned After the Offering(3) |
| ||||||||||||
5% Stockholders | | | | | | | | | | | | | | | | | | | | | | | | | |
TardiMed Sciences, LLC(4)
|
| | | | 7,241,745 | | | | | | 85.5% | | | | | | 7,241,745 | | | | | | 67.2% | | |
Blue Cane Partners, LLC(5)
|
| | | | 848,603 | | | | | | 9.99% | | | | | | 1,247,150 | | | | | | 9.99% | | |
Amar Foundation(6)
|
| | | | — | | | | | | — | | | | | | 1,191,443 | | | | | | 9.99% | | |
Directors and Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | |
Stephen D. Sheldon(7)
|
| | | | 35,889 | | | | | | * | | | | | | 35,889 | | | | | | * | | |
Howard J. Weisman
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Michael Derby(9)
|
| | | | 7,241,745 | | | | | | 85.5% | | | | | | 7,241,745 | | | | | | 67.2% | | |
Zachary Rome
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Karen LaRochelle
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
John F. Coelho(12)
|
| | | | 35,881 | | | | | | * | | | | | | 35,881 | | | | | | * | | |
Directors and Executive Officers as a group (6 persons)
|
| | | | 7,313,515 | | | | | | 86.3% | | | | | | 7,313,515 | | | | | | 67.8% | | |
Date Available for Sale
|
| |
Shares Eligible for Sale
|
| |
Description
|
|
Date of Prospectus | | |
3,112,042
|
| | Shares sold in the offering that are not subject to a lock-up | |
90 Days after Date of Prospectus | | |
3,339,314
|
| | Shares saleable under Rules 144 and 701 that are not subject to a lock-up | |
180 Days after Date of Prospectus | | |
7,279,339
|
| | Lock-up released; shares saleable under Rules 144 and 701 | |
Underwriter
|
| |
Number of
shares of common stock |
| | | | |||
Craft Capital Management LLC
|
| |
|
| | |||||
R.F. Lafferty & Co., Inc.
|
| | | | | | | | ||
Total:
|
| | | | 1,545,454 | | | |
| | |
Per Share of
Common Stock |
| |
Total without
Exercise of Over-allotment option |
| |
Total with
Exercise of Over-allotment option |
| |||||||||
Public offering price
|
| | | $ | | | | | $ | | | | | $ | | | |||
Underwriting discount(1)
|
| | | $ | | | | | $ | | | | | $ | | | |||
Net proceeds to us
|
| | | $ | | | | | $ | | | | | $ | | |
| | |
Page No.
|
| |||
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
| | | | F-23 | | | |
| | | | F-24 | | | |
| | | | F-25 | | | |
| | | | F-26 | | | |
| | | | F-27 | | |
| | |
December 31,
2021 |
| |
December 31,
2020 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 444,087 | | | | | $ | 1,123,625 | | |
Total current assets
|
| | | | 444,087 | | | | | | 1,123,625 | | |
Deferred offering costs
|
| | | | 204,779 | | | | | | — | | |
Total assets
|
| | | $ | 648,866 | | | | | $ | 1,123,625 | | |
LIABILITIES, AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 736,251 | | | | | $ | 346,094 | | |
Accounts payable – related party
|
| | | | 750 | | | | | | 102,803 | | |
Accrued expenses
|
| | | | 680,026 | | | | | | 578,524 | | |
Accrued interest
|
| | | | — | | | | | | 55,175 | | |
Notes payable, net of discount of $0 and $2,550,780
|
| | | | — | | | | | | 611,641 | | |
SAFE liability
|
| | | | 4,824,217 | | | | | | — | | |
Warrant liability
|
| | | | 4,516,485 | | | | | | 4,057,927 | | |
Total current liabilities
|
| | | | 10,757,729 | | | | | | 5,752,164 | | |
Total liabilities
|
| | | | 10,757,729 | | | | | | 5,752,164 | | |
Commitments and contingencies (Note 10) | | | | | | | | | | | | | |
Stockholders’ deficit | | | | | | | | | | | | | |
Preferred shares, par value $0.0001; 2,696,439 shares authorized; 2,696,439
shares issued and outstanding at December 31, 2021 and 2020, respectively; aggregate liquidation preference of $2,808,148 |
| | | | 270 | | | | | | 270 | | |
Common stock, par value $0.0001; 20,000,000 shares authorized at
December 31, 2021 and 2020; 6,913,492 and 5,775,898 shares issued and outstanding at December 31, 2021 and 2020, respectively |
| | | | 691 | | | | | | 578 | | |
Additional paid-in capital
|
| | | | 8,828,425 | | | | | | 4,079,891 | | |
Accumulated deficit
|
| | | | (18,938,249) | | | | | | (8,709,278) | | |
Total stockholders’ deficit
|
| | | | (10,108,863) | | | | | | (4,628,539) | | |
Total liabilities, and stockholders’ deficit
|
| | | $ | 648,866 | | | | | $ | 1,123,625 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Operating expenses | | | | | | | | | | | | | |
General and administrative
|
| | | $ | 4,973,245 | | | | | $ | 4,629,070 | | |
Research and development
|
| | | | 2,224,555 | | | | | | 936,776 | | |
Total operating expenses
|
| | | | 7,197,800 | | | | | | 5,565,846 | | |
Loss from operations
|
| | | | (7,197,800) | | | | | | (5,565,846) | | |
Other income (expense): | | | | | | | | | | | | | |
Interest expense
|
| | | | (2,805,856) | | | | | | (609,458) | | |
Loss on issuance of debt
|
| | | | — | | | | | | (53,541) | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | (23,284) | | |
Gain on conversion of notes
|
| | | | 59,890 | | | | | | — | | |
Change in fair value of SAFE
|
| | | | 175,783 | | | | | | — | | |
Change in fair value warrant liability
|
| | | | (458,558) | | | | | | (1,569,383) | | |
Change in fair value of derivative
|
| | | | — | | | | | | (4,496) | | |
Other income
|
| | | | 2,665 | | | | | | — | | |
Other expense
|
| | | | (5,095) | | | | | | — | | |
Total other expense
|
| | | | (3,031,171) | | | | | | (2,260,162) | | |
Net loss
|
| | | $ | (10,228,971) | | | | | $ | (7,826,008) | | |
Less: Accrued preferred unit and stock dividend
|
| | | | — | | | | | | (19,442) | | |
Less: Deemed dividend – beneficial conversion feature on preferred stock
|
| | | | — | | | | | | (1,452,422) | | |
Net loss attributable to common stockholders
|
| | | $ | (10,228,971) | | | | | $ | (9,297,872) | | |
Basic and diluted weighted average number of shares outstanding
|
| | | | 6,666,005 | | | | | | 5,775,898 | | |
Basic and diluted net loss per share attributable to common stockholders
|
| | | $ | (1.53) | | | | | $ | (1.61) | | |
| | |
Preferred Units
|
| | |
Preferred Stock
|
| |
Common Units
|
| |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Units
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| |
Units
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019
|
| | | | 1,516,041 | | | | | $ | 765,527 | | | | | |
|
—
|
| | | |
|
—
|
| | | | | 5,775,898 | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | (863,828) | | | | | $ | (863,828) | | |
Contribution from
TardiMed |
| | | | 940,000 | | | | | | 470,000 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Investor contributions
|
| | | | 100,000 | | | | | | 50,000 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Non-cash contribution from TardiMed
|
| | | | 72,428 | | | | | | 36,214 | | | | | | | 29,086 | | | | | | 3 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 14,540 | | | | | | — | | | | | | 14,543 | | |
Conversion of preferred units to preferred stock
|
| | | | (2,667,353) | | | | | | (1,341,183) | | | | | | | 2,667,353 | | | | | | 267 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,340,916 | | | | | | — | | | | | | 1,341,183 | | |
Conversion of common units to common stock
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (5,775,898) | | | | | | — | | | | | | 5,775,898 | | | | | | 578 | | | | | | (578) | | | | | | — | | | | | | — | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,262,093 | | | | | | — | | | | | | 2,262,093 | | |
Accrued preferred unit and stock dividend
|
| | | | 38,884 | | | | | | 19,442 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (19,442) | | | | | | (19,442) | | |
Beneficial conversion feature in
connection with notes payable |
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 462,920 | | | | | | — | | | | | | 462,920 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,826,008) | | | | | | (7,826,008) | | |
Balance at December 31, 2020
|
| | | | — | | | | | | — | | | | | | | 2,696,439 | | | | | $ | 270 | | | | | | — | | | | | $ | — | | | | | | 5,775,898 | | | | | $ | 578 | | | | | $ | 4,079,891 | | | | | $ | (8,709,278) | | | | | $ | (4,628,539) | | |
Common stock issued in
connection with conversion of notes payable |
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,137,594 | | | | | | 113 | | | | | | 3,412,669 | | | | | | — | | | | | | 3,412,782 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,335,865 | | | | | | — | | | | | | 1,335,865 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (10,228,971) | | | | | | (10,228,971) | | |
Balance at December 31, 2021
|
| | | | — | | | | | $ | — | | | | | | | 2,696,439 | | | | | $ | 270 | | | | | | — | | | | | $ | — | | | | | | 6,913,492 | | | | | $ | 691 | | | | | $ | 8,828,425 | | | | | $ | (18,938,249) | | | | | $ | (10,108,863) | | |
| | |
Years ended December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net loss
|
| | | $ | (10,228,971) | | | | | $ | (7,826,008) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Stock-based compensation
|
| | | | 1,335,865 | | | | | | 2,262,093 | | |
Amortization of debt discount
|
| | | | 2,550,780 | | | | | | 551,752 | | |
Loss on issuance of debt
|
| | | | — | | | | | | 53,541 | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | 23,284 | | |
Change in fair value of SAFE
|
| | | | (175,783) | | | | | | — | | |
Gain on conversion of notes
|
| | | | (59,890) | | | | | | — | | |
Change in fair value warrant liability
|
| | | | 458,558 | | | | | | 1,569,383 | | |
Change in fair value of derivative
|
| | | | — | | | | | | 4,496 | | |
Non-cash interest expense
|
| | | | 255,076 | | | | | | — | | |
Non-cash contribution from TardiMed
|
| | | | — | | | | | | 50,757 | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | |
Accounts payable
|
| | | | 352,277 | | | | | | 305,071 | | |
Accounts payable – related party
|
| | | | (102,053) | | | | | | 87,478 | | |
Accrued expenses
|
| | | | 101,502 | | | | | | 511,624 | | |
Accrued interest
|
| | | | — | | | | | | 57,707 | | |
Net cash used in operating activities
|
| | | | (5,512,639) | | | | | | (2,348,822) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Proceeds from SAFE investment
|
| | | | 5,000,000 | | | | | | — | | |
Payment of deferred offering costs
|
| | | | (166,899) | | | | | | — | | |
Contribution from TardiMed
|
| | | | — | | | | | | 470,000 | | |
Proceeds from notes payable
|
| | | | — | | | | | | 2,927,500 | | |
Third party investor contributions
|
| | | | — | | | | | | 50,000 | | |
Net cash provided by financing activities
|
| | | | 4,833,101 | | | | | | 3,447,500 | | |
Net (decrease) increase in cash
|
| | | | (679,538) | | | | | | 1,098,678 | | |
Cash, beginning of year
|
| | | | 1,123,625 | | | | | | 24,947 | | |
Cash, end of year
|
| | | $ | 444,087 | | | | | $ | 1,123,625 | | |
Non-cash financing activities: | | | | | | | | | | | | | |
Common stock issued in connection with conversion of notes payable
|
| | | $ | 3,412,782 | | | | | $ | — | | |
Unpaid offering costs
|
| | | $ | 37,880 | | | | | $ | — | | |
Deemed dividend – beneficial conversion feature on preferred stock
|
| | | $ | — | | | | | $ | 1,452,422 | | |
Conversion of preferred units to preferred stock
|
| | | $ | — | | | | | $ | 1,341,183 | | |
Beneficial conversion feature in connection with notes payable
|
| | | $ | — | | | | | $ | 462,920 | | |
Accrued preferred unit and stock dividend
|
| | | $ | — | | | | | $ | 19,442 | | |
| | |
December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Preferred stock
|
| | | | 1,557,435 | | | | | | 1,557,435 | | |
Unvested restricted stock units
|
| | | | — | | | | | | 1,377,999 | | |
Common stock warrants
|
| | | | 1,034,176 | | | | | | 1,034,176 | | |
Convertible notes
|
| | | | — | | | | | | 1,034,177 | | |
SAFE investment(1)
|
| | | | 414,808 | | | | | | — | | |
Total
|
| | | | 3,006,419 | | | | | | 5,003,787 | | |
| | |
Year Ended
December 31, 2021 |
|
Dividend yield
|
| |
—
|
|
Expected price volatility
|
| |
50.0%
|
|
Risk free interest rate
|
| |
0.06% – 0.07%
|
|
Expected term (in years)
|
| |
1.0 – 5.0
|
|
| | |
Years Ended December 31,
|
| |||
| | |
2021
|
| |
2020
|
|
Dividend yield
|
| |
—
|
| |
—
|
|
Expected price volatility
|
| |
76.8% – 112.1%
|
| |
108.7% – 114.4%
|
|
Risk free interest rate
|
| |
0.05% – 1.09%
|
| |
0.10% – 0.38%
|
|
Expected term (in years)
|
| |
1.0 – 5.0
|
| |
1.0 – 5.0
|
|
| | |
Year Ended
December 31, 2020 |
|
Contingent interest rate
|
| |
15.0%
|
|
Interest rate
|
| |
10.0%
|
|
Expected term
|
| |
0.8 – 1.0
|
|
| | |
Fair value measured at December 31, 2021
|
| |||||||||||||||||||||
| | |
Total carrying
value at December 31, 2021 |
| |
Quoted prices in
active markets (Level 1) |
| |
Significant other
observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
SAFE liability
|
| | | $ | 4,824,217 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,824,217 | | |
Warrant liability
|
| | | $ | 4,516,485 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,516,485 | | |
| | |
Fair value measured at December 31, 2020
|
| |||||||||||||||||||||
| | |
Total carrying
value at December 31, 2020 |
| |
Quoted prices in
active markets (Level 1) |
| |
Significant other
observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Warrant liability
|
| | | $ | 4,057,927 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,057,927 | | |
Contingent Interest
|
| | | $ | 59,890 | | | | | $ | — | | | | | $ | — | | | | | $ | 59,890 | | |
| | |
SAFE Liability
|
| |
Warrant Liability
|
| |
Contingent Interest
|
| |||||||||
Balance at December 31, 2019
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of warrants in connection with convertible notes
|
| | | | — | | | | | | 2,488,544 | | | | | | — | | |
Contingent interest in connection with notes payable
|
| | | | — | | | | | | — | | | | | | 55,394 | | |
Change in fair value
|
| | | | — | | | | | | 1,569,383 | | | | | | 4,496 | | |
Balance at December 31, 2020
|
| | | $ | — | | | | | $ | 4,057,927 | | | | | $ | 59,890 | | |
Gain on conversion of notes
|
| | | | — | | | | | | — | | | | | | (59,890) | | |
Issuance of SAFE
|
| | | | 5,000,000 | | | | | | — | | | | | | — | | |
Change in fair value
|
| | | | (175,783) | | | | | | 458,558 | | | | | | — | | |
Balance at December 31, 2021
|
| | | $ | 4,824,217 | | | | | $ | 4,516,485 | | | | | $ | — | | |
| | |
December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Accrued expenses: | | | | | | | | | | | | | |
Employee and related expenses
|
| | | $ | 680,026 | | | | | $ | 499,752 | | |
Research and development
|
| | | | — | | | | | | 4,000 | | |
Professional fees
|
| | | | — | | | | | | 74,772 | | |
Total accrued expenses
|
| | | $ | 680,026 | | | | | $ | 578,524 | | |
Issuance date
|
| |
Principal
Balance |
| |
Contingent
Interest |
| |
Unamortized
Debt Discount |
| |
Notes
Payable as of December 31, 2020 |
| ||||||||||||
October 26, 2020
|
| | | $ | 2,250,000 | | | | | $ | 43,445 | | | | | $ | (1,843,151) | | | | | $ | 450,295 | | |
October 29, 2020
|
| | | | 750,000 | | | | | | 14,470 | | | | | | (620,548) | | | | | | 143,922 | | |
November 6, 2020
|
| | | | 102,532 | | | | | | 1,974 | | | | | | (87,082) | | | | | | 17,424 | | |
| | | | $ | 3,102,532 | | | | | $ | 59,890 | | | | | $ | (2,550,780) | | | | | $ | 611,641 | | |
|
Principal value of convertible notes
|
| | | $ | 3,102,532 | | |
|
Original issue discount
|
| | | | (172,500) | | |
|
Discount resulting from allocation of proceeds to warrant liability
|
| | | | (2,488,544) | | |
|
Discount resulting from beneficial conversion feature
|
| | | | (462,920) | | |
|
Amortization of discount
|
| | | | 551,752 | | |
|
Loss on issuance of debt
|
| | | | 53,541 | | |
|
Loss on extinguishment of debt
|
| | | | 23,284 | | |
|
Change in fair value of derivative
|
| | | | 4,496 | | |
|
Net carrying value of senior secured convertible notes
|
| | | $ | 611,641 | | |
| | |
Number of Shares
|
| |
Weighted Average
Grant-Date Fair Value |
| ||||||
Unvested as of January 1, 2020
|
| | | | — | | | | | $ | — | | |
Granted
|
| | | | 1,377,999 | | | | | $ | 8.98 | | |
Unvested as of December 31, 2020
|
| | | | 1,377,999 | | | | | $ | 8.98 | | |
Forfeited
|
| | | | (1,377,999) | | | | | $ | 8.98 | | |
Unvested as of December 31, 2021
|
| | | | — | | | | | $ | — | | |
| | |
Current
|
| |
Deferred
|
| |
Total
|
| |||||||||
Federal
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
State
|
| | | | — | | | | | | — | | | | | | — | | |
Foreign
|
| | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | |
As of December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Net operating loss carryforwards
|
| | | $ | 2,030 | | | | | $ | 797 | | |
Research & development credits
|
| | | | 11 | | | | | | 11 | | |
Accrued expenses
|
| | | | 166 | | | | | | 144 | | |
Equity based compensation
|
| | | | — | | | | | | 591 | | |
Other temporary differences
|
| | | | — | | | | | | 20 | | |
Gross deferred tax assets
|
| | | | 2,207 | | | | | | 1,563 | | |
Valuation allowance
|
| | | | (2,207) | | | | | | (1,563) | | |
Net deferred tax asset
|
| | | $ | — | | | | | $ | — | | |
| | |
For the years ended December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Tax provision at statutory rate
|
| | | | 21.0% | | | | | | 21.0% | | |
State taxes, net of federal benefit
|
| | | | 3.7% | | | | | | 3.9% | | |
Share based compensation
|
| | | | (9.2)% | | | | | | —% | | |
Debt conversion
|
| | | | (6.7)% | | | | | | —% | | |
Permanent items
|
| | | | 0.4% | | | | | | —% | | |
Other
|
| | | | —% | | | | | | (0.7)% | | |
Warrant liability
|
| | | | (0.9)% | | | | | | (4.2)% | | |
Change in valuation reserve
|
| | | | (8.3)% | | | | | | (20.0)% | | |
Income taxes provision (benefit)
|
| | | | —% | | | | | | —% | | |
| | |
March 31
2022 |
| |
December 31,
2021 |
| ||||||
| | |
(Unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 49,383 | | | | | $ | 444,087 | | |
Total current assets
|
| | | | 49,383 | | | | | | 444,087 | | |
Deferred offering costs
|
| | | | 466,436 | | | | | | 204,779 | | |
Deferred financing costs
|
| | | | 25,100 | | | | | | — | | |
Total assets
|
| | | $ | 540,919 | | | | | $ | 648,866 | | |
LIABILITIES, AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 2,157,462 | | | | | $ | 736,251 | | |
Accounts payable – related party
|
| | | | 98,250 | | | | | | 750 | | |
Accrued expenses
|
| | | | 876,695 | | | | | | 680,026 | | |
SAFE liability
|
| | | | 3,190,000 | | | | | | 4,824,217 | | |
Warrant liability
|
| | | | 2,282,719 | | | | | | 4,516,485 | | |
Total current liabilities
|
| | | | 8,605,126 | | | | | | 10,757,729 | | |
Total liabilities
|
| | | | 8,605,126 | | | | | | 10,757,729 | | |
Commitments and contingencies (Note 7) | | | | | | | | | | | | | |
Stockholders’ deficit | | | | | | | | | | | | | |
Preferred shares, par value $0.0001; 2,696,439 shares authorized; 2,696,439 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively; aggregate liquidation preference of $2,808,148
|
| | | | 270 | | | | | | 270 | | |
Common stock, par value $0.0001; 20,000,000 shares authorized at March 31, 2022 and December 31, 2021; 6,913,492 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively
|
| | | | 691 | | | | | | 691 | | |
Additional paid-in capital
|
| | | | 9,009,619 | | | | | | 8,828,425 | | |
Accumulated deficit
|
| | | | (17,074,787) | | | | | | (18,938,249) | | |
Total stockholders’ deficit
|
| | | | (8,064,207) | | | | | | (10,108,863) | | |
Total liabilities, and stockholders’ deficit
|
| | | $ | 540,919 | | | | | $ | 648,866 | | |
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Operating expenses | | | | | | | | | | | | | |
General and administrative
|
| | | $ | 933,817 | | | | | $ | 1,286,992 | | |
Research and development
|
| | | | 1,070,704 | | | | | | 427,955 | | |
Total operating expenses
|
| | | | 2,004,521 | | | | | | 1,714,947 | | |
Loss from operations
|
| | | | (2,004,521) | | | | | | (1,714,947) | | |
Other income (expense): | | | | | | | | | | | | | |
Interest expense
|
| | | | — | | | | | | (2,805,856) | | |
Gain on conversion of notes
|
| | | | — | | | | | | 59,890 | | |
Change in fair value of SAFE
|
| | | | 1,634,217 | | | | | | (2,305,967) | | |
Change in fair value warrant liability
|
| | | | 2,233,766 | | | | | | (453,371) | | |
Total other income (expense)
|
| | | | 3,867,983 | | | | | | (5,505,304) | | |
Net income (loss)
|
| | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Basic weighted average number of shares outstanding
|
| | | | 6,913,492 | | | | | | 5,909,793 | | |
Diluted weighted average number of shares outstanding (as restated)
|
| | | | 7,562,978 | | | | | | 5,909,793 | | |
Basic net income (loss) per share (as restated)
|
| | | $ | 0.18 | | | | | $ | (1.22) | | |
Diluted net income (loss) per share (as restated)
|
| | | $ | (0.05) | | | | | $ | (1.22) | | |
| | |
Preferred Stock
|
| |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance at January 1, 2022
|
| | | | 2,696,439 | | | | | $ | 270 | | | | | | 6,913,492 | | | | | $ | 691 | | | | | $ | 8,828,425 | | | | | $ | (18,938,249) | | | | | $ | (10,108,863) | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 181,194 | | | | | | — | | | | | | 181,194 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,863,462 | | | | | | 1,863,462 | | |
Balance at March 31, 2022
|
| | | | 2,696,439 | | | | | $ | 270 | | | | | | 6,913,492 | | | | | $ | 691 | | | | | $ | 9,009,619 | | | | | $ | (17,074,787) | | | | | $ | (8,064,207) | | |
| | |
Preferred Stock
|
| |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance at January 1, 2021
|
| | | | 2,696,439 | | | | | $ | 270 | | | | | | 5,775,898 | | | | | $ | 578 | | | | | $ | 4,079,891 | | | | | $ | (8,709,278) | | | | | $ | (4,628,539) | | |
Common stock issued in connection with conversion of notes payable
|
| | | | — | | | | | | — | | | | | | 1,137,594 | | | | | | 113 | | | | | | 3,412,669 | | | | | | — | | | | | | 3,412,782 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 511,316 | | | | | | — | | | | | | 511,316 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,220,251) | | | | | | (7,220,251) | | |
Balance at March 31, 2021
|
| | | | 2,696,439 | | | | | $ | 270 | | | | | | 6,913,492 | | | | | $ | 691 | | | | | $ | 8,003,876 | | | | | $ | (15,929,529) | | | | | $ | (7,924,692) | | |
| | |
Three months ended March 31,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
| | | | | | | | | | | | |
Stock-based compensation
|
| | | | 181,194 | | | | | | 511,316 | | |
Amortization of debt discount
|
| | | | — | | | | | | 2,550,780 | | |
Change in fair value of SAFE
|
| | | | (1,634,217) | | | | | | 2,305,967 | | |
Gain on conversion of notes
|
| | | | — | | | | | | (59,890) | | |
Change in fair value warrant liability
|
| | | | (2,233,766) | | | | | | 453,371 | | |
Non-cash interest expense
|
| | | | — | | | | | | 255,076 | | |
Changes in assets and liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | | 1,134,454 | | | | | | 155,332 | | |
Accounts payable – related party
|
| | | | 97,500 | | | | | | (100,138) | | |
Accrued expenses
|
| | | | 196,669 | | | | | | 364,119 | | |
Net cash used in operating activities
|
| | | | (394,704) | | | | | | (784,318) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Proceeds from SAFE investment
|
| | | | — | | | | | | 5,000,000 | | |
Net cash provided by financing activities
|
| | | | — | | | | | | 5,000,000 | | |
Net (decrease) increase in cash
|
| | | | (394,704) | | | | | | 4,215,682 | | |
Cash, beginning of period
|
| | | | 444,087 | | | | | | 1,123,625 | | |
Cash, end of period
|
| | | $ | 49,383 | | | | | $ | 5,339,307 | | |
Non-cash financing activities: | | | | | | | | | | | | | |
Common stock issued in connection with conversion of notes payable
|
| | | $ | — | | | | | $ | 3,412,782 | | |
Unpaid offering costs
|
| | | $ | 261,657 | | | | | $ | 58,664 | | |
Unpaid financing fees
|
| | | $ | 25,100 | | | | | $ | — | | |
| | |
Three months ended March 31, 2022
|
| |||||||||||||||
| | |
As Previously
Reported |
| |
Adjustment
|
| |
As Restated
|
| |||||||||
Numerator: | | | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 1,863,462 | | | | | $ | — | | | | | $ | 1,863,462 | | |
Amount allocated to participating common shareholders
|
| | | | (361,902) | | | | | | (242,025) | | | | | | (603,927) | | |
Net income (loss) allocate to common shareholders — Basic (as restated)
|
| | | $ | 1,501,560 | | | | | $ | (242,025) | | | | | $ | 1,259,535 | | |
Net income (loss)
|
| | | $ | 1,863,462 | | | | | $ | — | | | | | $ | 1,863,462 | | |
Less: Change in fair value of warrant liabilities
|
| | | | — | | | | | | (2,233,766) | | | | | | (2,233,766) | | |
Net income (loss) allocate to common shareholders — Diluted (as restated)
|
| | | $ | 1,863,462 | | | | | $ | (2,233,766) | | | | | $ | (370,304) | | |
Denominator: | | | | | | | | | | | | | | | | | | | |
Basic weighted average number of shares outstanding
|
| | | | 6,913,492 | | | | | | — | | | | | | 6,913,492 | | |
Add: | | | | | | | | | | | | | | | | | | | |
Warrants
|
| | | | 649,486 | | | | | | — | | | | | | 649,486 | | |
Conversion of preferred stock
|
| | | | 1,557,435 | | | | | | (1,557,435) | | | | | | — | | |
Diluted weighted average number of shares outstanding (as restated)
|
| | | | 9,120,413 | | | | | | (1,557,435) | | | | | | 7,562,978 | | |
Basic net income (loss) per share (as restated)
|
| | | $ | 0.22 | | | | | $ | (0.04) | | | | | $ | 0.18 | | |
Diluted net income (loss) per share (as restated)
|
| | | $ | 0.16 | | | | | $ | (0.21) | | | | | $ | (0.05) | | |
| | |
Three months ended March 31,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Numerator: | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Amount allocated to participating common shareholders
|
| | | | (603,927) | | | | | | — | | |
Net income (loss) allocated to common shareholders — Basic (as restated)
|
| | | $ | 1,259,535 | | | | | $ | (7,220,251) | | |
Net income (loss)
|
| | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Less: Change in fair value of warrant liabilities
|
| | | | (2,233,766) | | | | | $ | — | | |
Net income (loss) allocate to common shareholders — Diluted (as restated)
|
| | | $ | (370,304) | | | | | $ | (7,220,251) | | |
Denominator: | | | | | | | | | | | | | |
Basic weighted average number of shares outstanding
|
| | | | 6,913,492 | | | | | | 5,909,793 | | |
Add: | | | | | | | | | | | | | |
Warrants
|
| | | | 649,486 | | | | | | — | | |
Diluted weighted average number of shares outstanding (as restated)
|
| | | | 7,562,978 | | | | | | 5,909,793 | | |
Basic net income (loss) per share (as restated)
|
| | | $ | 0.18 | | | | | $ | (1.22) | | |
Diluted net income (loss) per share (as restated)
|
| | | $ | (0.05) | | | | | $ | (1.22) | | |
| | |
March 31,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Preferred stock
|
| | | | 1,557,435 | | | | | | 1,557,435 | | |
Unvested restricted stock units
|
| | | | 1,342,666 | | | | | | 1,377,999 | | |
Common stock warrants
|
| | | | — | | | | | | 1,034,176 | | |
SAFE investment(1)
|
| | | | 414,808 | | | | | | 641,437 | | |
Total
|
| | | | 3,314,909 | | | | | | 4,611,047 | | |
| | |
Three months ended March 31,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Dividend yield
|
| | | | 0% | | | | | | 0% | | |
Expected price volatility
|
| | | | 50.0% | | | | | | 50.0% | | |
Risk free interest rate
|
| | | | 1.35% | | | | | | 0.09% | | |
Expected term (in years)
|
| | | | 0.8 | | | | | | 1.3 | | |
| | |
Three months ended March 31,
|
| |||
| | |
2022
|
| |
2021
|
|
Dividend yield
|
| |
0%
|
| |
0%
|
|
Expected price volatility
|
| |
95.9 – 105.0%
|
| |
104.0 – 112.1%
|
|
Risk free interest rate
|
| |
0.69% – 2.44%
|
| |
0.06% – 0.81%
|
|
Expected term (in years)
|
| |
0.3 – 4
|
| |
1 – 5
|
|
| | |
Fair value measured at March 31, 2022
|
| |||||||||||||||||||||
| | |
Total carrying
value at March 31, 2022 |
| |
Quoted prices in
active markets (Level 1) |
| |
Significant other
observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
SAFE liability
|
| | | $ | 3,190,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,190,000 | | |
Warrant liability
|
| | | $ | 2,282,719 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,282,719 | | |
| | |
Fair value measured at December 31, 2021
|
| |||||||||||||||||||||
| | |
Total carrying
value at December 31, 2021 |
| |
Quoted prices in
active markets (Level 1) |
| |
Significant other
observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
SAFE liability
|
| | | $ | 4,824,217 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,824,217 | | |
Warrant liability
|
| | | $ | 4,516,485 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,516,485 | | |
| | |
SAFE Liability
|
| |
Warrant Liability
|
| ||||||
Balance at December 31, 2021
|
| | | $ | 4,824,217 | | | | | $ | 4,516,485 | | |
Change in fair value
|
| | | | (1,634,217) | | | | | | (2,233,766) | | |
Balance at March 31, 2022
|
| | | $ | 3,190,000 | | | | | $ | 2,282,719 | | |
| | |
March 31,
2022 |
| |
December 31,
2021 |
| ||||||
| | |
(Unaudited)
|
| | | | | | | |||
Employee and related expenses
|
| | | $ | 815,691 | | | | | $ | 680,026 | | |
Professional fees
|
| | | | 56,104 | | | | | | — | | |
Research and development
|
| | | | 4,900 | | | | | | — | | |
Total accrued expenses
|
| | | $ | 876,695 | | | | | $ | 680,026 | | |
| | |
Number of
Shares |
| |
Weighted Average
Grant-Date Fair Value |
| ||||||
Unvested as of December 31, 2021
|
| | | | — | | | | | $ | — | | |
Granted
|
| | | | 1,342,666 | | | | | $ | 10.87 | | |
Unvested as of March 31, 2022
|
| | | | 1,342,666 | | | | | $ | 10.87 | | |
|
SEC Filing Fee
|
| | | $ | 1,165 | | |
|
FINRA Fee
|
| | | $ | 4,813 | | |
|
Nasdaq Fee
|
| | | $ | 75,000 | | |
|
Printing Expenses
|
| | | $ | 100,000 | | |
|
Accounting Fees and Expenses
|
| | | $ | 205,105 | | |
|
Legal Fees and Expenses
|
| | | $ | 800,000 | | |
|
Transfer Agent and Registrar Expenses
|
| | | $ | 8,000 | | |
|
Miscellaneous
|
| | | $ | 347 | | |
|
Total
|
| | | $ | 1,194,430 | | |
Exhibit No.
|
| |
Description of Document
|
|
23.1 | | | | |
23.2 | | | | |
24.1 | | | Power of Attorney (included on signature page) * | |
107 | | | Calculation of Filing Fee* | |
| | | | PAXMEDICA, INC. | |
| | | |
/s/ Howard J. Weisman
Howard J. Weisman
|
|
| | | | Chief Executive Officer | |
| | | | (Principal Executive Officer) | |
|
Signature
|
| |
Title
|
| |
Date
|
|
|
/s/ Howard J. Weisman
Howard J. Weisman
|
| |
Chief Executive Officer and Director
(Principal Executive Officer) |
| | August 8, 2022 | |
|
/s/ Stephen D. Sheldon
Stephen D. Sheldon
|
| |
Chief Financial Officer
(Principal Financial and Accounting Officer) |
| | August 8, 2022 | |
|
*
Zachary Rome
|
| |
Chief Operating Officer and Director
|
| | August 8, 2022 | |
|
*
Michael Derby
|
| |
Executive Chairman and Director
|
| | August 8, 2022 | |
|
*
Karen LaRochelle
|
| |
Director
|
| | August 8, 2022 | |
|
*
John F. Coelho
|
| |
Director
|
| | August 8, 2022 | |
| *By: | | |
/s/ Howard J. Weisman
Howard J. Weisman, Attorney-In-Fact
|
|