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Liquidity

6 Months Ended

Jun. 30, 2020

Notes To Financial Statements [Abstract]

NOTE 2 – LIQUIDITY

As of June 30, 2020, the Company had an accumulated deficit of $25,454,392 and experienced losses since its inception. Losses have principally occurred as a result of non-cash stock-based compensation expense and the substantial resources required for research and development of the Company's products which included the general and administrative expenses associated with its organization and product development as well as the lack of sources of revenues until such time as the Company's products are commercialized.

To meet its current and future obligations the Company has taken the following steps to capitalize the business and achieve its business plan:

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During July 2020, the Company completed an underwritten public offering in which it sold 2,500,000 shares of common stock at a public offering price of $10.00 per share. The 2,500,000 shares sold included the full exercise of the underwriters' option to purchase 326,086 shares at a price of $10.00 per share. Aggregate net proceeds from the underwritten public offering were approximately $23.1 million, net of approximately $1.9 million in underwriting discounts and commissions and offering expenses.

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During April 2020, the Company entered into a sales agreement with BTIG, LLC ("BTIG"), as sales agent, to establish an At-The-Market ("ATM") offering program. The Company was required to pay BTIG a commission of 3% of the gross proceeds from the sale of shares. The ATM program will remain in full force and effect until the earlier of the sale of all of the shares under the ATM program or the termination of the sales agreement by the Company or BTIG. From April 2020 through June 2020, the Company sold 150,682 shares of common stock at an average price of $5.44 per share for net proceeds of approximately $0.7 million. From July 1, 2020 through the date of the issuance of this Quarterly Report on Form 10-Q, the Company sold 27,919 shares of common stock at an average price of $5.46 for net proceeds of approximately $0.1 million.

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During May 2019, the Company entered into a securities purchase agreement ("Purchase Agreement") with Lincoln Park Capital Fund LLC ("Lincoln Park"), pursuant to which Lincoln Park has agreed to purchase from the Company up to an aggregate of $20.0 million of common stock of the Company (subject to certain limitations) from time to time over the term of the Purchase Agreement. The extent we rely on Lincoln Park as a source of funding will depend on a number of factors including, the prevailing market price of our common stock and the extent to which we are able to secure working capital from other sources. As of the date of issuance of this Quarterly Report on Form 10-Q, the Company has already received approximately $1.3 million from the Purchase Agreement from the sale of 296,000 shares of common stock to Lincoln Park from the inception of the Purchase Agreement through the date of issuance of this Form 10-Q, leaving the Company an additional $18.7 million to draw upon.

Although it is difficult to predict the Company's liquidity requirements, as of June 30, 2020, and based upon the Company's current operating plan, the Company believes that it will have sufficient cash to meet its projected operating requirements for at least the next 12 months following filing date of this Quarterly Report on Form 10-Q based on the balance of cash balance as of June 30, 2020 and the proceeds received from the Company's July 2020 underwritten offering (see Note 9). The Company anticipates that it will continue to incur net losses for the foreseeable future as it continues the development of its clinical drug candidates and preclinical programs and incurs additional costs associated with being a public company.