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SUBSEQUENT EVENTS | 6 Months Ended
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Jun. 30, 2021
Subsequent Events [Abstract] |
SUBSEQUENT EVENTS | 25. SUBSEQUENT EVENTS Activity Under 2021 ATM Offering From July 1, 2021 through August 13, 2021, the Company had sold an aggregate of 2.4 million shares of common stock pursuant to the sales agreement for gross proceeds of $6.0 million. Additional Investment in Alzamend Neuro, Inc. On July 28, 2021 Alzamend received from the U.S. Food and Drug Administration a “Study May Proceed” letter for a Phase 1 study under the Alzamend’s Investigational New Drug application for AL001, a lithium-based ionic cocrystal oral therapy for patients with dementia related to mild, moderate, and severe cognitive impairment associated with Alzheimer’s disease. Based on the achievement of this milestone, under the March 9, 2021 securities purchase agreement, Alzamend sold an additional 1,333,333 shares of its common stock to DPL for $2 million, or $1.50 per share, and issued to DPL warrants to acquire 666,667 shares of Alzamend common stock with an exercise price of $3.00 per share. Significant Fluctuation in the Fair Value of Investment in Alzamend Revenues from the Company’s trading activities during the six months ended June 30, 2021 included significant net gains on equity securities, including unrealized gains and losses from market price changes. These gains and losses have caused, and will continue to cause, significant volatility in the Company’s periodic earnings. At June 30, 2021, the fair value of Alzamend’s common stock was $8.74 based on the closing price of Alzamend’s common stock. Based upon the fair value of Alzamend common stock at June 30, 2021, during the six months ended June 30, 2021, the Company recorded an unrealized gain of $31.7 million related to its investment in Alzamend common stock. During the three and six months ended June 30, 2021, the Company recorded an unrealized gain on its investment in warrants of Alzamend of $8.6 million. The Company’s investment in Alzamend will be revalued on each balance sheet date. On August 12, 2021, the closing price of Alzamend’s common stock was $3.83. If the closing price of Alzamend common stock on September 30, 2021 remains low relative to the closing price on June 30, 2021, the Company would record a significant unrealized loss from trading activities for the three months ending September 30, 2021. Annual Meeting On Friday, August 13, 2021, the Company held its annual meeting of stockholders. The proposals approved included the following:
| • | The exercise of warrants issued to Esousa to purchase up to an aggregate of 3,850,220 shares of common stock;
| • | The Company’s 2021 Stock Incentive Plan, pursuant to which 7,500,000 shares of common stock may be issued;
| • | The Company’s Employee Stock Purchase Plan, pursuant to which 980,000 shares of common stock may be issued;
| • | The 2020 equity issuances to directors and executive officers of the Company, consisting of an aggregate of up to 1,950,000 shares of common stock, whether issued pursuant to stock grants or underlying options granted to the Company’s directors and executive officers; and
| • | The 2020 equity issuances to directors and executive officers of the Company, consisting of an aggregate of up to 3,750,000 shares of common stock, whether issued pursuant to stock grants or underlying options granted to the Company’s directors and executive officers.

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- Definition The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 855 -URI http://asc.fasb.org/topic&trid=2122774 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 855 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6842918&loc=SL6314017-165662 + Details
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