XML 18 R9.htm IDEA: XBRL DOCUMENT
v3.20.4

STOCKHOLDERS EQUITY | 9 Months Ended
--- | ---
Jun. 30, 2020
STOCKHOLDERS EQUITY |
C. STOCKHOLDERS' EQUITY | C. STOCKHOLDERS’ EQUITY Proceeds from the Sale of Common Stock In March 2020, the Company sold 630,500 shares of common stock at a public offering price of $12.22 per share and received aggregate net proceeds of approximately $7.1 million. Under the terms of the Underwriting Agreement the Company granted the Underwriters a 45-day option to purchase up to an additional 94,575 shares of common stock solely to cover over-allotments. The underwriter fully exercised this option in May 2020 resulting in additional net proceeds to the Company of approximately $1.1 million. In December 2019, the Company sold 606,395 shares of common stock at a public offering price of $9.07 per share and received aggregate net proceeds of approximately $5.0 million. In January 2020, the underwriters of that offering fully exercised the option to purchase 90,959 additional shares of common stock at the public offering price of $9.07 per share for aggregate net proceeds to the Company of approximately $0.8 million. Equity Compensation Underlying share information for equity compensation plans as of June 30, 2020 is as follows:
Name of Plan |  | Total Shares Reserved Under Plans |  |  | Shares Reserved for Outstanding Options |  |  | Shares Issued |  |  | Remaining Options/Shares Under Plans |
Incentive Stock Options Plans |  |  | 138,400 |  |  |  | 89,895 |  |  |  | N/A |  |  |  | 213 |
Non-Qualified Stock Option Plans |  |  | 9,987,200 |  |  |  | 8,593,438 |  |  |  | N/A |  |  |  | 1,151,666 |
Stock Bonus Plans |  |  | 783,760 |  |  |  | N/A |  |  |  | 341,951 |  |  |  | 441,776 |
Stock Compensation Plans |  |  | 634,000 |  |  |  | N/A |  |  |  | 150,695 |  |  |  | 464,895 |
Incentive Stock Bonus Plan |  |  | 640,000 |  |  |  | N/A |  |  |  | 616,500 |  |  |  | 23,500 |
Underlying share information for equity compensation plans as of September 30, 2019 is as follows:
Name of Plan |  | Total Shares Reserved Under Plans |  |  | Shares Reserved for Outstanding Options |  |  | Shares Issued |  |  | Remaining Options/Shares Under Plans |
Incentive Stock Option Plans |  |  | 138,400 |  |  |  | 89,895 |  |  |  | N/A |  |  |  | 213 |
Non-Qualified Stock Option Plans |  |  | 6,387,200 |  |  |  | 6,128,321 |  |  |  | N/A |  |  |  | 112,166 |
Stock Bonus Plans |  |  | 783,760 |  |  |  | N/A |  |  |  | 331,226 |  |  |  | 452,501 |
Stock Compensation Plans |  |  | 634,000 |  |  |  | N/A |  |  |  | 130,183 |  |  |  | 485,407 |
Incentive Stock Bonus Plan |  |  | 640,000 |  |  |  | N/A |  |  |  | 616,500 |  |  |  | 23,500 |
Stock option activity:
|  | Nine Months Ended June 30, |
|  | 2020 |  |  | 2019 |
Granted |  |  | 2,561,500 |  |  |  | 3,268,862 |
Exercised |  |  | 94,199 |  |  |  | 42,770 |
Expired |  |  | 1,000 |  |  |  | 29,322 |
Forfeited |  |  | 1,180 |  |  |  | 63,698 |
|  | Three Months Ended June 30, |
|  | 2020 |  |  | 2019 |
Granted |  |  | 2,559,000 |  |  |  | 3,268,362 |
Exercised |  |  | 73,719 |  |  |  | 42,770 |
Expired |  |  | 16 |  |  |  | 26,922 |
Forfeited |  |  | - |  |  |  | 39,505 |
During the quarter ended June 30, 2020, the Company adopted the 2020 Non-Qualified Stock Option Plan, which provides for the issuance of up to 3,600,000 options to purchase shares of common stock. On April 20, 2020, the Company granted 1,872,000 performance-based stock options from the 2020 Non-Qualified Stock Option Plan to officers and directors. Each option entitles the holder to purchase one share of the Company’s common stock at a price of $10.93 per share, the fair value on the date of issuance. The stock options vest upon the achievement of the following performance goals: i) 25% of the options will vest when the closing price of the Company’s common stock exceeds $20.00 for ten consecutive trading days; ii) 50% of the options will vest when the closing price of the Company’s common stock exceeds $25.00 for ten consecutive trading days; iii) 75% of the options will vest when the closing price of the Company’s common stock exceeds $30.00 for ten consecutive trading days; and iv) 100% of the options will vest when either (a) the filing of the first marketing application for any pharmaceutical based upon the Company’s Multikine technology, in the US, Canada, UK, Germany, France, Italy, Spain, Japan, or Australia or (b) the closing price of the Company’s common stock exceeds $40.00 for ten consecutive trading days. All Options which have not vested as of April 19, 2030, will be canceled and will no longer be exercisable. The options were recorded as equity based warrants in accordance with ASC 718, Compensation – Stock Compensation. On the grant date, the options were valued using a Monte Carlo Simulation approach. Monte Carlo Simulation is a statistical technique that is used to model probabilistic systems and establish the probabilities for a variety of outcomes. That valuation resulted in a per share fair value of $4.12 and an aggregate value of $7,881,120 on the grant date, April 20, 2020. The aggregate value will be expensed over the implicit life of the options, which was determined to be 1.7 years. This resulted in compensation expense of approximately $901,000 recorded during the nine and three months ended June 30, 2020. Stock-Based Compensation Expense
|  | Nine months Ended June 30, |
|  | 2020 |  |  | 2019 |
Employees |  | $ | 6,690,331 |  |  | $ | 2,626,311 |
Non-employees |  | $ | 623,146 |  |  | $ | 688,070 |
|  | Three months Ended June 30, |
|  | 2020 |  |  | 2019 |
Employees |  | $ | 3,109,127 |  |  | $ | 1,521,821 |
Non-employees |  | $ | 275,919 |  |  | $ | 176,646 |
Employee compensation expense includes the expense related to options issued or vested and restricted stock granted. Non-employee expense includes the expense related to options and stock issued to consultants expensed over the period of their service contracts. Warrants and Non-Employee Options The following chart represents the warrants and non-employee options outstanding at June 30, 2020:
Warrant/Options |  | Issue Date |  | Shares Issuable upon Exercise of Warrants/ Options |  |  | Exercise Price |  |  | Expiration Date |  | Reference |
Series N |  | 8/18/2008 |  |  | 85,339 |  |  | $ | 3.00 |  |  | 2/18/2021 |  |  | 2 |
Series XX |  | 6/11/2020 |  |  | 461,953 |  |  | $ | 18.00 |  |  | 9/10/2020 |  |  | 2 |
Series YY |  | 6/26/2020 |  |  | 101,839 |  |  | $ | 20.00 |  |  | 9/25/2020 |  |  | 2 |
Series UU |  | 6/11/2018 |  |  | 93,603 |  |  | $ | 2.80 |  |  | 12/31/2020 |  |  | 2 |
Series W |  | 10/28/2015 |  |  | 688,930 |  |  | $ | 16.75 |  |  | 10/28/2020 |  |  | 1 |
Series X |  | 1/13/2016 |  |  | 120,000 |  |  | $ | 9.25 |  |  | 1/13/2021 |  | * |
Series Y |  | 2/15/2016 |  |  | 26,000 |  |  | $ | 12.00 |  |  | 2/15/2021 |  | * |
Series ZZ |  | 5/23/2016 |  |  | 20,000 |  |  | $ | 13.75 |  |  | 5/18/2021 |  |  | 1 |
Series BB |  | 8/26/2016 |  |  | 16,000 |  |  | $ | 13.75 |  |  | 8/22/2021 |  |  | 1 |
Series Z |  | 5/23/2016 |  |  | 264,000 |  |  | $ | 13.75 |  |  | 11/23/2021 |  |  | 1 |
Series CC |  | 12/8/2016 |  |  | 153,643 |  |  | $ | 5.00 |  |  | 12/8/2021 |  |  | 1 |
Series HH |  | 2/23/2017 |  |  | 200 |  |  | $ | 3.13 |  |  | 2/16/2022 |  |  | 1 |
Series AA |  | 8/26/2016 |  |  | 200,000 |  |  | $ | 13.75 |  |  | 2/22/2022 |  |  | 1 |
Series MM |  | 6/22/2017 |  |  | 893,491 |  |  | $ | 1.86 |  |  | 6/22/2022 |  | * |
Series NN |  | 7/24/2017 |  |  | 375,545 |  |  | $ | 2.52 |  |  | 7/24/2022 |  |  | 2 |
Series OO |  | 7/31/2017 |  |  | - |  |  | $ | 2.52 |  |  | 7/31/2022 |  |  | 2 |
Series RR |  | 10/30/2017 |  |  | 457,116 |  |  | $ | 1.65 |  |  | 10/30/2022 |  |  | 2 |
Series SS |  | 12/19/2017 |  |  | 326,064 |  |  | $ | 2.09 |  |  | 12/18/2022 |  |  | 2 |
Series TT |  | 2/5/2018 |  |  | 371,564 |  |  | $ | 2.24 |  |  | 2/5/2023 |  |  | 2 |
Series VV |  | 7/2/2018 |  |  | - |  |  | $ | 1.75 |  |  | 1/2/2024 |  |  | 2 |
Consultants |  | 7/28/17 |  |  | 10,000 |  |  | $ | 2.18 |  |  | 7/27/2027 |  | * |
* No current period changes to these warrants and non-employee options. 1. Warrant Liabilities The table below presents the fair value of the warrant liabilities at the balance sheet dates:
|  | June 30, 2020 |  |  | September 30, 2019 |
Series V warrants |  | $ | - |  |  | $ | 674,442 |
Series W warrants |  |  | 1,808,203 |  |  |  | 1,193,507 |
Series Z warrants |  |  | 1,852,040 |  |  |  | 1,109,545 |
Series ZZ warrants |  |  | 115,957 |  |  |  | 77,638 |
Series AA warrants |  |  | 1,464,362 |  |  |  | 916,908 |
Series BB warrants |  |  | 108,586 |  |  |  | 63,966 |
Series CC warrants |  |  | 1,666,749 |  |  |  | 1,710,898 |
Series FF warrants |  |  | - |  |  |  | 446,185 |
Series HH warrants |  |  | 2,435 |  |  |  | 45,657 |
Series JJ warrants |  |  | - |  |  |  | 66,599 |
Series LL warrants |  |  | - |  |  |  | 182,965 |
Total warrant liabilities |  | $ | 7,018,332 |  |  | $ | 6,488,310 |
The table below presents the gains/(losses) on the warrant liabilities for the nine months ended June 30:
|  | 2020 |  |  | 2019 |
Series S warrants |  | $ | - |  |  | $ | 33 |
Series V warrants |  |  | 185,652 |  |  |  | (479,399 | )
Series W warrants |  |  | (614,696 | ) |  |  | (1,132,156 | )
Series Z warrants |  |  | (742,495 | ) |  |  | (684,859 | )
Series ZZ warrants |  |  | (38,319 | ) |  |  | (37,970 | )
Series AA warrants |  |  | (547,454 | ) |  |  | (583,516 | )
Series BB warrants |  |  | (44,620 | ) |  |  | (35,800 | )
Series CC warrants |  |  | (1,245,627 | ) |  |  | (2,007,287 | )
Series DD warrants |  |  | - |  |  |  | 1,249,287 |
Series EE warrants |  |  | - |  |  |  | 1,249,287 |
Series FF warrants |  |  | (319,706 | ) |  |  | (244,170 | )
Series GG warrants |  |  | - |  |  |  | 195,228 |
Series HH warrants |  |  | (35,024 | ) |  |  | (22,859 | )
Series II warrants |  |  | - |  |  |  | (593,960 | )
Series JJ warrants |  |  | (64,992 | ) |  |  | (32,954 | )
Series KK warrants |  |  | - |  |  |  | (55,622 | )
Series LL warrants |  |  | (98,066 | ) |  |  | (99,667 | )
Net loss on warrant liabilities |  | $ | (3,565,347 | ) |  | $ | (3,316,384 | )
The table below presents the gains/(losses) on the warrant liabilities for the three months ended June 30:
|  | 2020 |  |  | 2019 |
Series V warrants |  | $ | 107,191 |  |  | $ | (974,251 | )
Series W warrants |  |  | (247,327 | ) |  |  | (1,748,184 | )
Series Z warrants |  |  | (430,619 | ) |  |  | (799,690 | )
Series ZZ warrants |  |  | (33,734 | ) |  |  | (50,608 | )
Series AA warrants |  |  | (220,831 | ) |  |  | (676,784 | )
Series BB warrants |  |  | (37,592 | ) |  |  | (43,536 | )
Series CC warrants |  |  | (419,350 | ) |  |  | (2,346,985 | )
Series FF warrants |  |  | - |  |  |  | (278,773 | )
Series GG warrants |  |  | - |  |  |  | 88,478 |
Series HH warrants |  |  | (567 | ) |  |  | (33,501 | )
Series II warrants |  |  | - |  |  |  | (709,303 | )
Series JJ warrants |  |  | - |  |  |  | (48,880 | )
Series KK warrants |  |  | - |  |  |  | (169,089 | )
Series LL warrants |  |  | - |  |  |  | (114,413 | )
Net loss on warrant liabilities |  | $ | (1,282,829 | ) |  | $ | (7,905,519 | )
The Company reviews all outstanding warrants in accordance with the requirements of ASC 815. This topic provides that an entity should use a two-step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock, including evaluating the instrument’s contingent exercise and settlement provisions. The warrant agreements provide for adjustments to the exercise price for certain dilutive events. Under the provisions of ASC 815, the warrants are not considered indexed to the Company’s stock because future equity offerings or sales of the Company’s stock are not an input to the fair value of a “fixed-for-fixed” option on equity shares, and equity classification is therefore precluded. In accordance with ASC 815, derivative liabilities must be measured at fair value upon issuance and re-valued at the end of each reporting period through expiration. Any change in fair value between the respective reporting dates is recognized as a gain or loss. Changes in Warrant Liabilities On May 26, 2020, the Company lowered the exercise price of 810,127 Series V warrants from $19.75 to $13.75 per share and extended the expiration date of the Series V warrants from May 28, 2020 to June 25, 2020. The incremental cost of this modification was approximately $664,000, which was included within the net loss on derivatives for the nine and three months ended June 30, 2020. Additionally, upon the exercise of 674,164 Series V warrants the Company recognized a final mark-to-market adjustment for a gain of approximately $560,000, which was included within the net loss on derivatives for the nine and three months ended June 30, 2020. On June 25, 2020, 135,963 Series V warrants, with an exercise price of $13.75 expired. The warrants were valued at approximately $211,000 on the date of expiration. On December 10, 2018, 1,360,960 Series DD and 1,360,960 Series EE warrants, with an exercise price of $4.50 expired. On October 11, 2018, 327,729 Series S warrants, with an exercise price of $31.25 expired. Exercise of Warrant Liabilities The following warrants recorded as liabilities were exercised during the periods ended June 30, 2020.
|  | Three Months |  |  | Nine Months |
Warrants |  | Warrants Exercised |  |  | Exercise Price |  |  | Proceeds |  |  | Warrants Exercised |  |  | Exercise Price |  |  | Proceeds |
Series V |  |  | 674,164 |  |  | $ | 13.75 |  |  | $ | 9,269,755 |  |  |  | 674,164 |  |  | $ | 13.75 |  |  | $ | 9,269,755 |
Series CC |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 123,820 |  |  | $ | 5.00 |  |  |  | 619,100 |
Series FF |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 68,048 |  |  | $ | 3.91 |  |  |  | 265,812 |
Series HH |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 6,300 |  |  | $ | 3.13 |  |  |  | 19,687 |
Series JJ |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 9,450 |  |  | $ | 3.13 |  |  |  | 29,531 |
Series LL |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 26,398 |  |  | $ | 3.59 |  |  |  | 94,867 |
|  |  | 674,164 |  |  |  |  |  |  | $ | 9,269,755 |  |  |  | 908,180 |  |  |  |  |  |  | $ | 10,298,752 |
The following warrants recorded as liabilities were exercised during the periods ended June 30, 2019.
|  | Three Months |  |  | Nine Months |
|  | Warrants |  |  | Exercise |  |  |  |  |  | Warrants |  |  | Exercise |  |  |  |
Warrants |  | Exercised |  |  | Price |  |  | Proceeds |  |  | Exercised |  |  | Price |  |  | Proceeds |
Series CC |  |  | 69,017 |  |  | $ | 5.00 |  |  | $ | 345,085 |  |  |  | 69,017 |  |  | $ | 5.00 |  |  | $ | 345,085 |
Series GG |  |  | 200,000 |  |  | $ | 3.00 |  |  |  | 600,000 |  |  |  | 200,000 |  |  | $ | 3.00 |  |  |  | 600,000 |
Series HH |  |  | 13,500 |  |  | $ | 3.13 |  |  |  | 42,188 |  |  |  | 13,500 |  |  | $ | 3.13 |  |  |  | 42,188 |
Series II |  |  | 121,500 |  |  | $ | 3.00 |  |  |  | 364,500 |  |  |  | 121,500 |  |  | $ | 3.00 |  |  |  | 364,500 |
Series JJ |  |  | 20,550 |  |  | $ | 3.13 |  |  |  | 64,219 |  |  |  | 20,550 |  |  | $ | 3.13 |  |  |  | 64,219 |
Series KK |  |  | 213,870 |  |  | $ | 3.04 |  |  |  | 649,095 |  |  |  | 213,870 |  |  | $ | 3.04 |  |  |  | 649,095 |
|  |  | 638,437 |  |  |  |  |  |  | $ | 2,065,087 |  |  |  | 638,437 |  |  |  |  |  |  | $ | 2,065,087 |
2. Equity Warrants Changes in Equity Warrants On May 26, 2020, the Company provided that for each Series V warrant exercised by an accredited investor on or before June 10, 2020 the former holder of the Series V warrant received one Series XX warrant. Every Series XX warrant will allow the holder to purchase one share of the Company’s common stock at a price of $18.00 per share at any time on or before September 10, 2020. For every two Series V warrant exercised by an accredited investor after June 10, 2020 but on or before June 25, 2020 the former holder of the Series V warrant received one Series YY warrant. Every Series YY warrants will allow the holder to purchase one share of the Company’s common stock at a price of $20.00 per share at any time on or before September 25, 2020. In June 2020, 461,953 Series XX warrants and 101,839 Series YY warrants were issued to the former holders of the Series V warrants. The Company recognized an inducement expense equal to the fair value of the Series XX and Series YY warrants issued as of the date the inducement offers were accepted. The fair values of the Series XX and Series YY warrants were calculated to be approximately $629,000 and $177,000, respectively, and are included as inducement expense in the statements of operations for the nine and three months ended June 30, 2020. The Series XX and YY warrants qualify for equity treatment in accordance with ASC 815. On May 8, 2020, the expiration date of 93,593 Series UU warrants were extended from June 11, 2020 to December 31, 2020. These warrants were previously issued as an inducement to convert notes payable into shares of common stock. The incremental cost of this extension was approximately $6,000 and was recorded as interest expense for the nine and three months ended June 30, 2020. The Series UU warrants are held by Geert Kersten, Patricia Prichep (current Officers of the Company) and the de Clara Trust, of which the Company’s CEO, Geert Kersten, is a beneficiary. On January 23, 2020, the expiration date of the Series N warrants was extended to February 18, 2021. The incremental cost of this extension was approximately $22,000, which was recorded as a deemed dividend in the financial statements for the nine and three months ended June 30, 2020. The Series N warrants are held by the de Clara Trust, of which Geert Kersten, is a beneficiary. Exercise of Equity Warrants The following warrants recorded as equity were exercised during the periods ended June 30, 2020.
|  | Three Months |  |  | Nine Months |
Warrants |  | Warrants Exercised |  |  | Exercise Price |  |  | Proceeds |  |  | Warrants Exercised |  |  | Exercise Price |  |  | Proceeds |
Series NN |  |  | - |  |  |  | - |  |  | $ | - |  |  |  | 98,253 |  |  | $ | 2.52 |  |  | $ | 247,598 |
Series OO |  |  | 10,000 |  |  | $ | 2.52 |  |  |  | 25,200 |  |  |  | 50,000 |  |  | $ | 2.52 |  |  |  | 126,000 |
Series SS |  |  | 39,474 |  |  | $ | 2.09 |  |  |  | 82,500 |  |  |  | 156,580 |  |  | $ | 2.09 |  |  |  | 327,252 |
Series TT |  |  | 10,000 |  |  | $ | 2.24 |  |  |  | 22,400 |  |  |  | 188,125 |  |  | $ | 2.24 |  |  |  | 421,400 |
Series UU |  |  | 61,207 |  |  | $ | 2.80 |  |  |  | 171,380 |  |  |  | 61,207 |  |  | $ | 2.80 |  |  |  | 171,380 |
Series VV |  |  | 55,000 |  |  | $ | 1.75 |  |  |  | 96,250 |  |  |  | 82,500 |  |  | $ | 1.75 |  |  |  | 144,375 |
|  |  | 175,681 |  |  |  |  |  |  | $ | 397,730 |  |  |  | 636,665 |  |  |  |  |  |  | $ | 1,438,005 |
The following warrants recorded as equity were exercised during the periods ended June 30, 2019.
|  | Three Months |  |  | Nine Months |
Warrants |  | Warrants Exercised |  |  | Exercise Price |  |  | Proceeds |  |  | Warrants Exercised |  |  | Exercise Price |  |  | Proceeds |
Series NN |  |  | 65,502 |  |  | $ | 2.52 |  |  | $ | 165,065 |  |  |  | 65,502 |  |  | $ | 2.52 |  |  | $ | 165,065 |
Series PP |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 60,000 |  |  | $ | 2.30 |  |  |  | 138,000 |
Series QQ |  |  | 3,500 |  |  | $ | 2.50 |  |  |  | 8,750 |  |  |  | 3,500 |  |  | $ | 2.50 |  |  |  | 8,750 |
Series RR |  |  | 60,044 |  |  | $ | 1.65 |  |  |  | 99,073 |  |  |  | 60,044 |  |  | $ | 1.65 |  |  |  | 99,073 |
Series SS |  |  | 280,264 |  |  | $ | 2.09 |  |  |  | 585,752 |  |  |  | 446,054 |  |  | $ | 2.09 |  |  |  | 932,253 |
Series TT |  |  | 450,069 |  |  | $ | 2.24 |  |  |  | 1,008,155 |  |  |  | 536,119 |  |  | $ | 2.24 |  |  |  | 1,200,907 |
Series UU |  |  | 24,018 |  |  | $ | 2.80 |  |  |  | 67,250 |  |  |  | 24,018 |  |  | $ | 2.80 |  |  |  | 67,250 |
Series VV |  |  | 2,425,000 |  |  | $ | 1.75 |  |  |  | 4,243,750 |  |  |  | 3,810,000 |  |  | $ | 1.75 |  |  |  | 6,667,500 |
Series WW |  |  | 67,275 |  |  | $ | 1.63 |  |  |  | 109,321 |  |  |  | 193,050 |  |  | $ | 1.63 |  |  |  | 313,705 |
|  |  | 3,375,672 |  |  |  |  |  |  | $ | 6,287,116 |  |  |  | 5,198,287 |  |  |  |  |  |  | $ | 9,592,503 |
3. Options and Shares Issued to Consultants During the nine months ended June 30, 2020 and 2019, the Company issued 47,750 and 161,058 shares, respectively, of restricted common stock to consultants for services. The weighted average grant date fair value of the shares issued to consultants was $11.60 and $3.37, respectively, during the nine months ended June 30, 2020 and 2019, respectively. During the three months ended June 30, 2020 and 2019, the Company issued 14,811 and 20,825, respectively, shares of restricted common stock to consultants for services. The weighted average grant date fair value of the shares issued to consultants was $16.41 and $5.62, respectively, during the three months ended June 30, 2020 and 2019. The aggregate values of the issuances of restricted common stock and common stock options are recorded as prepaid expenses and are charged to general and administrative expenses over the periods of service under the consulting arrangements. During the nine months ended June 30, 2020 and 2019, the Company recorded total expense of approximately $623,000 and $688,000, respectively, relating to these consulting agreements. During the three months ended June 30, 2020 and 2019, the Company recorded total expense of approximately $276,000 and $177,000, respectively, relating to these consulting agreements. At June 30, 2020 and September 30, 2019, approximately $242,000 and $230,000, respectively, are included in prepaid expenses. At June 30, 2020, the Company has accrued $110,000 for shares to be issued. As of June 30, 2020, 10,000 options issued to consultants remained outstanding, all of which were issued from the Non-Qualified Stock Option plans and are fully vested. 4. Securities Purchase Agreement The Company has entered into Securities Purchase Agreements (SPA) with Ergomed plc, one of the Company’s Clinical Research Organizations responsible for managing the Company’s Phase 3 clinical trial, to facilitate payment of amounts due Ergomed. Under the Agreements, the Company issued Ergomed shares of common stock and the net proceeds from the sales of those shares reduces outstanding amounts due Ergomed. Upon issuance, the Company expenses the full value of the shares as Other non-operating gain/loss and subsequently offsets the expense as amounts are realized through the sale by Ergomed and reduces accounts payable to Ergomed. On April 6, 2020 and June 29, 2020, the Company entered SPAs under which it issued Ergomed 100,000 and 50,000 restricted shares of the Company’s common stock valued at approximately $1.0 million and $0.8 million, respectively. On January 9, 2019, the Company entered into a SPA under which it issued Ergomed 500,000 restricted shares of the Company’s common stock valued at approximately $1.3 million. As of June 30, 2020, Ergomed held 110,521 shares for resale. The following table summarizes the Other non-operating gain (loss) for the nine and three months ended June 30, 2020 and 2019 relating to these agreements:
|  | Nine Months Ended |  |  | Three Months Ended |
|  | June 30,2020 |  |  | June 30, 2019 |  |  | June 30, 2020 |  |  | June 30, 2019 |
Amount realized through the resale of shares |  | $ | 2,539,245 |  |  | $ | 3,167,197 |  |  | $ | 818,565 |  |  | $ | 1,455,844 |
Fair value of shares upon issuance |  |  | 1,769,500 |  |  |  | 1,290,000 |  |  |  | 1,769,500 |  |  |  | - |
Other non-operating gain (loss) |  | $ | 769,745 |  |  | $ | 1,877,197 |  |  | $ | (950,935 | ) |  | $ | 1,455,844 |

X
- References No definition available. + Details
Name: | us-gaap_EquityAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
Name: | us-gaap_StockholdersEquityNoteDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration