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Stockholders’ Equity | 12 Months Ended
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Sep. 30, 2024
Stockholders’ Equity [Abstract] |
Stockholders’ Equity | NOTE 9 - Stockholders’ Equity August 2024 Private Placement On August 1, 2024, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain accredited investors (the “Purchasers”), pursuant to which the Company, in a private placement (the “2024 Private Placement”), agreed to issue and sell an aggregate of (i) 2,944,446 shares of the Company’s common stock, par value $0.001 per share and (ii) warrants to purchase an aggregate of 2,208,333 shares of common stock (the “PIPE Warrants”) at a purchase price of $0.90 per unit, consisting of one share and a PIPE Warrant to purchase 0.75 shares of common stock, resulting in total gross proceeds of approximately $2.65 million before deducting expenses. Issuance costs attributed to the 2024 Private Placement amounted to approximately $0.2 million. The 2024 Private Placement closed on August 2, 2024. The PIPE Warrants are exercisable beginning on the date of issuance, have an exercise price of $1.19 per share, subject to adjustment, and will expire on the third anniversary of the date of issuance. One of the Purchasers in the 2024 Private Placement included Paul Buckman, a director on the Company’s Board of Directors. The PIPE Warrants were accounted for and classified as liabilities on the accompanying balance sheets given certain price reset provisions not used for a fair valuation under a fixed for fixed settlement scenario as required for equity balance sheet classification. A Monte Carlo simulation model was used to estimate the aggregate fair value of the PIPE Warrants. Input assumptions used were as follows on August 2, 2024 and September 30, 2024: risk-free interest rate 3.63% and 3.53%, respectively; expected volatility of 116.1% and 115.7%; respectively; expected life of 3 years and 2.84 years, respectively; and expected dividend yield zero percent for both dates. The underlying stock price used was the market price as quoted on Nasdaq as of August 2, 2024 and September 30, 2024. The aggregate fair value of the PIPE Warrants of $1,813,223 upon issuance was recorded as a long term liability on the accompanying balance sheets. The Company recorded the fair value change of the PIPE Warrants in the amount of $327,092 to the fair value change in warrant liability line item on the accompanying statements of operations for the year ended September 30, 2024. At-The-Market Offering On December 21, 2022, the Company entered into a Capital on DemandTM Sales Agreement (the “Sales Agreement”) with JonesTrading Institutional Services LLC (“JonesTrading”) that created an at-the-market offering program (“ATM”) under which the Company may offer and sell common stock having an aggregate offering price of up to $14.5 million. JonesTrading is entitled to a commission at a fixed commission rate of up to 3% of the gross proceeds. On July 24, 2023, the Company decreased the amount of common stock that can be sold pursuant to the Sales Agreement, such that the Company was offering up to an aggregate of $2.6 million of its common stock for sale under the Sales Agreement, including the shares of common stock previously sold. Subsequently on December 1, 2023, however, the Company increased the amount of common stock that can be sold pursuant to the Sales Agreement, such that the Company was offering up to an aggregate of $4.8 million of its common stock for sale under the Sales Agreement, including the shares of common stock previously sold. On January 5, 2024, the Company further increased the amount of common stock that can be sold pursuant to the Sales Agreement, such that the Company was offering up to an aggregate of $9.3 million of its common stock for sale under the Sales Agreement, including the shares of common stock previously sold. On August 16, 2024, we increased the amount of common stock that can be sold pursuant to the Sales Agreement by $3.0 million. During the years ended September 30, 2024 and 2023, 3,748,913 and 1,439,677 shares of common stock were issued, respectively, under the ATM for an aggregate offering price of $5,033,906 and $2,552,656, respectively. Issuance costs incurred under the ATM during the years ended September 30, 2024 and 2023 were $277,903 and $234,725, respectively. The total aggregate offering price and common stock issued since inception of the ATM though September 30, 2024 was $7,586,562 and 5,188,590 shares, respectively. Cumulative issuance costs incurred under the ATM through September 30, 2024 was $512,628 of which $41,305 was included as a deferred cost on the balance sheet as of September 30, 2024. July 2023 Public Offering On July 24, 2023, the Company entered into an underwriting agreement with The Benchmark Company, LLC, as underwriter (“Benchmark”), relating to the issuance and sale of 5,250,000 shares of the Company’s common stock, par value $0.001 per share, at a price to the public of $1.00 per share (the “July 2023 Public Offering”). In addition, under the terms of the July 2023 Public Offering, the Company granted Benchmark an option, exercisable for 30 days, to purchase up to an additional 787,500 shares of common stock on the same terms (“the Overallotment Option”). The July 2023 Public Offering closed on July 27, 2023, and the Company completed the sale and issuance of an aggregate of 6,037,500 shares of its common stock, including the exercise in full of the Overallotment Option. The net proceeds to the Company from the July 2023 Public Offering were approximately $5.2 million after deducting underwriting discounts and other offering expenses payable by the Company. The Company used the net proceeds from this offering to: (i) support the commercial launch of the EVO sEEG electrode with Zimmer Biomet, (ii) support the FDA submission for the OneRF ablation system and (iii) complete the design of a novel drug delivery electrode, among other general corporate purposes. Warrant Activity and Summary The following table summarizes warrant activity during the years ended September 30, 2024 and 2023:
|  | Warrants |  |  | Exercise Price Per Warrant |  |  | Weighted Average Exercise Price |  |  | Weighted Average Term (years) |
Outstanding and exercisable at September 30, 2022 |  |  | 7,103,344 |  |  |  | $ 3.00-9.00 |  |  | $ | 5.98 |  |  |  | 2.68 |
Issued |  |  | — |  |  | $ | — |  |  | $ | — |  |  |  | — |
Exercised |  |  | — |  |  | $ | — |  |  | $ | — |  |  |  | — |
Expired |  |  | (900,918 | ) |  |  | $ 5.61-9.00 |  |  | $ | 6.38 |  |  |  | — |
Outstanding and exercisable at September 30, 2023 |  |  | 6,202,426 |  |  |  | $ 3.00-9.00 |  |  | $ | 5.92 |  |  |  | 2.00 |
Issued |  |  | 2,308,338 |  |  |  | $ 0.66-1.19 |  |  | $ | 1.17 |  |  |  | 3.09 |
Exercised |  |  | — |  |  | $ | — |  |  | $ | — |  |  |  | — |
Expired |  |  | (1,464,889 | ) |  |  | $ 6.00-9.00 |  |  | $ | 8.59 |  |  |  | — |
Outstanding at September 30, 2024 |  |  | 7,045,875 |  |  |  | $ 0.66-5.61 |  |  | $ | 3.81 |  |  |  | 1.98 |
Outstanding and exercisable at September 30, 2024 |  |  | 7,045,875 |  |  |  | $ 0.66-5.61 |  |  | $ | 3.81 |  |  |  | 1.98 |
The following table summarizes information about warrants outstanding at September 30, 2024:
Exercise Price |  |  | Number Outstanding |  |  | Weighted Average Remaining Contractual life (Years) |  |  | Number Exercisable at September 30, 2024 |
$ | 0.66 |  |  |  | 100,000 |  |  |  | 4.84 |  |  |  | 100,000 |
$ | 1.19 |  |  |  | 2,208,338 |  |  |  | 2.84 |  |  |  | 2,208,338 |
$ | 3.00 |  |  |  | 350,000 |  |  |  | 2.84 |  |  |  | 350,000 |
$ | 5.25 |  |  |  | 4,166,682 |  |  |  | 1.29 |  |  |  | 4,166,682 |
$ | 5.61 |  |  |  | 220,855 |  |  |  | 3.75 |  |  |  | 220,855 |
Total |  |  |  | 7,045,875 |  |  |  |  |  |  |  | 7,045,875 |

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/505/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent + Details
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