XML 24 R15.htm IDEA: XBRL DOCUMENT
v3.20.4

RESTATEMENT | 9 Months Ended
--- | ---
Jun. 30, 2020
LOSS PER COMMON SHARE |
I. RESTATEMENT | I. RESTATEMENT In October 2008, the Company entered into an agreement whereby the Company leased a building owned by a third party. The Company accounted for the lease arrangement in accordance with the build-to-suit guidance in ASC 840-40-55. On October 1, 2019, the Company adopted ASC 842 using the modified retrospective transition approach. Upon adoption of ASC 842, the Company determined the arrangement should be accounted for as a finance lease. In December 2020, the Company determined that the opening finance right of use (ROU) asset and total stockholders’ equity balances were understated by approximately $2.04 million as of October 1, 2019, the date of adoption. The following is a summary of the components of the understated balances:
| · | The unamortized value of approximately $0.6million relating to the issuance of warrants to the landlord should have been capitalized and included as part of the finance ROU asset as of October 1, 2019.
| · | The unamortized value of approximately $1.4 million relating to a payment made to the landlord at lease inception, which the Company is recovering in the form of reduced rent, should have been capitalized and included as part of the finance ROU asset as of October 1, 2019.
The changes do not impact any prior year’s financial statements but are an adjustment to the opening finance ROU asset and accumulated deficit balances effective October 1, 2019. As a result of the changes to the opening finance ROU asset and accumulated deficit balances, the accompanying financial statements for the nine and three months ended June 30, 2020 have been restated to reflect the correction of the error. The following is a summary of the restatement:
|  | June 30, 2020 |
BALANCE SHEET |  | PREVIOUSLY REPORTED |  |  | ADJUSTMENT |  |  | RESTATED |
Finance lease right of use assets |  | $ | 12,367,947 |  |  | $ | 1,873,351 |  |  | $ | 14,241,298 |
Total assets |  |  | 42,034,867 |  |  |  | 1,873,351 |  |  |  | 43,908,218 |
Accumulated deficit |  |  | (378,329,567 | ) |  |  | 1,873,351 |  |  |  | (376,456,216 | )
Total stockholders' equity |  |  | 19,014,940 |  |  |  | 1,873,351 |  |  |  | 20,888,291 |
Total liabilities and stockholders' equity |  |  | 42,034,867 |  |  |  | 1,873,351 |  |  |  | 43,908,218 |
|  | Nine Months Ended June 30, 2020 |
STATEMENT OF OPERATIONS |  | PREVIOUSLY REPORTED |  |  | ADJUSTMENT |  |  | RESTATED |
Research and development expenses |  | $ | 12,511,830 |  |  | $ | 168,600 |  |  | $ | 12,680,430 |
Total operating expenses |  |  | 20,901,651 |  |  |  | 168,600 |  |  |  | 21,070,251 |
Operating loss |  |  | (20,371,545 | ) |  |  | (168,600 | ) |  |  | (20,540,145 | )
Net loss |  |  | (24,707,557 | ) |  |  | (168,600 | ) |  |  | (24,876,157 | )
Net loss available to common shareholders |  |  | (24,729,291 | ) |  |  | (168,600 | ) |  |  | (24,897,891 | )
Net loss per share - basic and diluted |  | $ | (0.68 | ) |  |  |  |  |  | $ | (0.69 | )
|  | Three Months Ended June 30, 2020 |
STATEMENT OF OPERATIONS |  | PREVIOUSLY REPORTED |  |  | ADJUSTMENT |  |  | RESTATED |
Research and development expenses |  | $ | 3,912,870 |  |  | $ | 56,200 |  |  | $ | 3,969,070 |
Total operating expenses |  |  | 7,105,273 |  |  |  | 56,200 |  |  |  | 7,161,473 |
Operating loss |  |  | (6,909,399 | ) |  |  | (56,200 | ) |  |  | (6,965,599 | )
Net loss available to common shareholders |  |  | (10,220,779 | ) |  |  | (56,200 | ) |  |  | (10,276,979 | )
Net loss per share - basic and diluted |  | $ | (0.27 | ) |  |  |  |  |  | $ | (0.27 | )
The impact, as a result of the restatement, to the accompanying Statement of Cash Flows is an increase to net loss offset by an increase to depreciation and amortization expense of $168,600 resulting in no impact to the cash used in operating activities. In addition, the cumulative effect adjustment to the opening accumulated deficit balance in the statement of stockholders' equity as of October 1, 2019 increased $2.0 million from $0.1 million (previously reported) to $2.1 million (restated).

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

X
- Definition Tabular disclosure of the nature and effects of a restatement to correct an error in the reported results of operations of prior periods. When prior period adjustments are recorded, the resulting effects (both gross and net of applicable income tax) on the net income of prior periods are disclosed in the annual report for the year in which the adjustments are made, and amended filings of previously issued reports are typically issued. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22658-107794 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22644-107794 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22663-107794 + Details
Name: | us-gaap_RestatementToPriorYearIncomeTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration