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Stockholders' Equity | 6 Months Ended
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Sep. 30, 2025
Equity [Abstract] |
Stockholders' Equity | Note 4. Stockholders’ Equity Preferred Stock The Company is authorized to issue 25,000,000 shares of preferred stock. There are no shares of preferred stock currently outstanding, and the Company has no current plans to issue shares of preferred stock. Common Stock In March 2021, the Company's Board of Directors ("Board") approved the 2021 Inducement Equity Incentive Plan ("Inducement Plan"). The Inducement Plan authorized the issuance of up to 62,500 shares of common stock for awards of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, RSUs, performance units, performance shares, and other stock or cash awards. In February 2022, 4,166 incentive stock options were issued under the Inducement Plan. On October 12, 2022, the Company's stockholders and the Board approved the 2022 Equity Incentive Plan ("2022 Plan"), and it became effective on that date. The 2022 Plan replaced the Amended and Restated 2012 Equity Incentive Plan ("2012 Plan") on the effective date. Upon the effective date, the Company ceased granting awards under the 2012 Plan and any shares remaining available for future issuance under the 2012 Plan were cancelled and are no longer available for future issuance. The 2012 Plan continues to govern awards previously granted under it. At the time the Board approved the 2022 Plan, an aggregate of 113,583 shares of the Company’s common stock was initially reserved for issuance under the 2022 Plan. The Company committed to reducing the new 2022 Plan share reserve by the number of shares that were granted under the 2012 Plan and the Inducement Plan between July 25, 2022 and October 12, 2022. From July 25, 2022 to October 12, 2022, the Company issued 10,521 shares of its common stock under the 2012 Plan. As a result, the number of shares reserved for future issuance under the 2022 Plan was 103,062 shares of common stock. The Company also committed to reducing the aggregate number of shares of its common stock issuable pursuant to the Inducement Plan from 62,500 shares to 4,250 shares (which includes 4,166 shares of its common stock issuable pursuant to an outstanding option to purchase common stock with an exercise price of $33 per share, leaving only 83 shares available for future issuance under the Inducement Plan) and the share reserve was reduced effective October 12, 2022. On November 20, 2024, the Company’s stockholders approved the amendment and restatement of the 2022 Plan (the “A&R 2022 Plan”) to increase the number of shares reserved for issuance thereunder by 147,916 shares. On January 26, 2024, the Company filed a shelf registration statement on Form S-3 (File No. 333-276722) to register $150.0 million of the Company's common stock, preferred stock, debt securities, warrants and units, or any combination of the foregoing (the "2024 Shelf"). The 2024 Shelf was declared effective by the SEC on February 8, 2024. On March 16, 2018, the Company entered into a Sales Agreement with Jones Trading Institutional Services LLC (the “Agent”). On January 26, 2024, the Company filed a prospectus with the 2024 Shelf (the "2024 ATM Prospectus"), pursuant to which the Company may offer and sell, from time to time through the Agent, shares of its common stock in ATM sales transactions having an aggregate offering price of up to $2,605,728. The Company filed amendments to the 2024 ATM Prospectus on February 26, 2025 and again on April 11, 2025, providing that the Company may offer and sell, from time to time through the Agent, shares of its common stock in ATM sales transactions having an additional aggregate offering price of up to $5,311,508 and $4,766,105, respectively. Any shares offered and sold in these ATM transactions will be issued pursuant to the 2024 Shelf. During the three months and six months ended September 30, 2025, the Company issued zero and 701,729 shares of common stock in ATM offerings, respectively, for net proceeds of approximately $1.8 million, pursuant to the 2024 Shelf. As of September 30, 2025, the Company has sold an aggregate of 1,198,134 shares of common stock in ATM offerings under the 2024 ATM Prospectus, with gross proceeds of approximately $6.9 million. As of September 30, 2025, there was approximately $140.1 million unallocated and available for future offerings under the 2024 Shelf, and approximately $3.1 million available for future offerings through the Company’s ATM program under the 2024 ATM Prospectus. May 2024 Best Efforts Public Offering On May 8, 2024, the Company priced a best efforts public offering (the “Offering”) of: (i) 130,202 shares of its common stock and accompanying common warrants (“Common Warrants”) to purchase up to 130,202 shares of common stock at a combined public offering price of $9.60 per share and accompanying Common Warrant to purchase one share of common stock and (ii) pre-funded warrants (“Pre-Funded Warrants”) to purchase 416,666 shares of common stock and accompanying Common Warrants to purchase up to 416,666 shares of common stock at a combined public offering price of $9.588 per Pre-Funded Warrant and accompanying Common Warrant to purchase one share of common stock. In connection with the Offering, the Company entered into Securities Purchase Agreements with the purchasers of the securities in the Offering on May 8, 2024. The per share exercise price for the Pre-Funded Warrants was $0.001, subject to adjustment as provided therein. The Pre-Funded Warrants were immediately exercisable, subject to certain beneficial ownership limitations, and were to expire when exercised in full. The holders could exercise the Pre-Funded Warrants by means of a “cashless exercise.” During the year ended March 31, 2025, all 416,666 Pre-Funded Warrants were exercised. The per share exercise price for the Common Warrants is $9.60, subject to adjustment as provided therein. The Common Warrants were immediately exercisable, subject to certain beneficial ownership limitations, and will expire on the date that is five years following the original issuance date. If a registration statement covering the issuance of the shares of common stock issuable upon exercise of the Common Warrants is not available for the issuance, then the holders may exercise the Common Warrants by means of a “cashless exercise.” In connection with the Offering, the Company paid JonesTrading Institutional Services LLC, which acted as the placement agent in connection with the Offering, a cash fee of 5.0% of the aggregate gross proceeds raised in the Offering. The closing of the Offering occurred on May 13, 2024. The Company received net proceeds of approximately $4.5 million from the Offering, after deducting the offering expenses payable by the Company, including the Placement Agent fees. The Company sold (i) 130,202 shares of its common stock and Common Warrants to purchase up to 130,202 shares of common stock and (ii) Pre-Funded Warrants to purchase 416,666 shares of common stock and accompanying Common Warrants to purchase up to 416,666 shares of common stock. Restricted Stock Units The following table summarizes the Company’s RSUs activity for the three months ended September 30, 2025:
|  | Number of Shares |  |  | Weighted Average Price |
Unvested at March 31, 2025 |  |  | 8,165 |  |  | $ | 6.57 |
Granted |  |  | — |  |  | $ | — |
Vested |  |  | (8,165 | ) |  | $ | 6.57 |
Cancelled / forfeited |  |  | — |  |  | $ | — |
Unvested at September 30, 2025 |  |  | — |  |  | $ | — |
Stock Options During the six months ended September 30, 2025, under the A&R 2022 Plan, 47,974 stock options were granted at various exercise prices. On August 5, 2024, the Company granted 83,841 stock options to its Executive Chairman under the A&R 2022 Plan. Of the stock options granted, 47,910 will vest evenly on an annual basis over three years. 11,977 of the options granted have unique vesting criteria based on market conditions, more specifically the Company's stock price. As the market condition based stock options require significant estimates and assumptions to calculate their fair value, the Company engaged with valuation specialists to calculate the fair value and requisite service periods using Monte Carlo simulations. The stock options will be expensed over their determined requisite service periods. The remaining 23,954 options granted have unique vesting criteria based on specific Company performance conditions. The vesting criteria for 11,977 of these options includes the Company achieving cumulative revenue of $1.5 million. The vesting criteria for the remaining 11,977 options includes the Company entering into a definitive agreement that constitutes a major strategic partnership, at the discretion of the Board. As of September 30, 2025, no performance conditions have been met. The grant date fair value of the performance based awards is $118,000 in the aggregate, which will be recognized when the performance condition is probable of being satisfied. The following table summarizes the Company’s stock option activity from March 31, 2025 to September 30, 2025:
|  | Options Outstanding |  |  | Weighted Average Exercise Price |  |  | Aggregate Intrinsic Value |
Outstanding at March 31, 2025 |  |  | 141,397 |  |  | $ | 22.66 |  |  | $ | — |
Options granted |  |  | 47,974 |  |  | $ | 1.81 |  |  | $ | — |
Options cancelled / forfeited |  |  | (2,552 | ) |  | $ | 14.51 |  |  | $ | — |
Options expired |  |  | (5,239 | ) |  | $ | 33.28 |  |  | $ | — |
Outstanding at September 30, 2025 |  |  | 181,580 |  |  | $ | 16.96 |  |  | $ | — |
Vested and Exercisable at September 30, 2025 |  |  | 56,268 |  |  | $ | 42.03 |  |  | $ | — |
The weighted average remaining contractual term of stock options exercisable and outstanding at September 30, 2025 was approximately 8.49 years. Warrants In connection with the Offering described above, the Company issued Common Warrants to purchase up to 130,202 shares of common stock at a combined public offering price of $9.60 per share and accompanying Common Warrant to purchase one share of common stock and (ii) Pre-Funded Warrants to purchase 416,666 shares of common stock and accompanying Common Warrants to purchase up to 416,666 shares of common stock at a combined public offering price of $9.588 per Pre-Funded Warrant and accompanying Common Warrant to purchase one share of common stock. The Company has determined that these warrants should be classified as equity instruments since they do not require the Company to repurchase the underlying common stock and do not require the Company to issue a variable amount of common stock. In addition, these warrants are indexed to common stock and do not have any antidilution rights. The following table summarizes the Company’s Common Warrant activity from March 31, 2025 to September 30, 2025:
|  | Number of Warrants |  |  | Exercise Price |
Outstanding at March 31, 2025 |  |  | 539,060 |  |  | $ | 9.60 |
Issued |  |  | — |  |  |  | — |
Exercised |  |  | — |  |  |  | — |
Outstanding at September 30, 2025 |  |  | 539,060 |  |  | $ | 9.60 |
Employee Stock Purchase Plan In July 2023, the Board adopted, and subsequently on October 31, 2023, the Company's stockholders approved, the ESPP. The ESPP became effective on October 31, 2023. The Company reserved 3,750 shares of common stock for issuance thereunder. The ESPP permits employees to purchase common stock through payroll deductions, limited to 15 percent of each employee’s compensation up to $25,000 per employee per year or 42 shares per employee per six-month purchase period. Shares under the ESPP are purchased at 85 percent of the fair market value at the lower of (i) the closing price on the first trading day of the six-month purchase period or (ii) the closing price on the last trading day of the six-month purchase period. The initial offering under the ESPP commenced on March 1, 2024. During the six months ended September 30, 2025 there were no shares issued under the ESPP. At September 30, 2025, there were 3,708 shares remaining available for purchase under the ESPP. Common Stock Reserved for Future Issuance Common stock reserved for future issuance consisted of the following at September 30, 2025:
Common stock issuable pursuant to options outstanding and reserved under the 2012 Plan |  |  | 27,780 |
Common stock reserved under the 2012 Plan |  |  | — |
Common stock issuable pursuant to options outstanding and reserved under the A&R 2022 Plan |  |  | 149,634 |
Common stock reserved under the A&R 2022 Plan |  |  | 166,756 |
Common stock reserved under the ESPP |  |  | 3,708 |
Common stock reserved under the 2021 Inducement Equity Plan |  |  | 83 |
Common stock issuable pursuant to restricted stock units outstanding under the 2012 Plan |  |  | — |
Common stock issuable pursuant to restricted stock units outstanding under the A&R 2022 Plan |  |  | — |
Common stock issuable pursuant to options outstanding and reserved under the Inducement Plan |  |  | 4,166 |
Common stock issuable pursuant to outstanding pre-funded warrants |  |  | — |
Common stock issuable pursuant to outstanding common warrants |  |  | 539,060 |
Total at September 30, 2025 |  |  | 891,187 |
Stock-based Compensation Expense and Valuation Information Stock-based awards include stock options and RSUs under the Company's A&R 2022 Plan, 2012 Plan, Inducement Plan, and rights to purchase stock under the ESPP. Stock-based compensation expense for all stock-based awards consists of the following (in thousands):
|  | Three Months Ended |  |  | Three Months Ended |  |  | Six Months Ended |  |  | Six Months Ended |
|  | September 30, 2025 |  |  | September 30, 2024 |  |  | September 30, 2025 |  |  | September 30, 2024 |
Research and development |  | $ | 13 |  |  | $ | 25 |  |  | $ | 26 |  |  | $ | 51 |
General and administrative |  |  | 59 |  |  |  | 130 |  |  |  | 124 |  |  |  | 260 |
Total |  | $ | 72 |  |  | $ | 155 |  |  | $ | 150 |  |  | $ | 311 |
The total unrecognized compensation cost related to unvested stock option grants as of September 30, 2025 was approximately $0.5 million and the weighted average period over which these grants are expected to vest is 2.48 years. The Company uses either the Black-Scholes or Monte Carlo option-pricing models to calculate the fair value of stock options, depending on the complexity of the equity grants. Stock-based compensation expense is recognized over the vesting period using the straight-line method. The assumed dividend yield is based on the Company’s expectation of not paying dividends in the foreseeable future. The Company uses the Company-specific historical volatility rate as the indicator of expected volatility. The risk-free interest rate assumption is based on U.S. Treasury rates. The weighted average expected life of options was estimated using the average of the contractual term and the weighted average vesting term of the options. The measurement and classification of share-based payments to non-employees is consistent with the measurement and classification of share-based payments to employees. The fair value of stock options was estimated at the grant date using the following weighted average assumptions:
|  | Three Months Ended |  |  | Three Months Ended |  |  | Six Months Ended |  |  | Six Months Ended |
|  | September 30, 2025 |  |  | September 30, 2024 |  |  | September 30, 2025 |  |  | September 30, 2024 |
Dividend yield |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Volatility |  |  | 111.00 | % |  |  | 99.00 | % |  |  | 112.30 | % |  |  | 99.37 | %
Risk-free interest rate |  |  | 3.83 | % |  |  | 3.64 | % |  |  | 3.87 | % |  |  | 3.75 | %
Expected life of options |  | 6 years |  |  | 6 years |  |  | 6 years |  |  | 6 years |
Weighted average grant date fair value |  | $ | 1.50 |  |  | $ | 5.11 |  |  | 1.53 |  |  | $ | 5.67 |
The fair value of each RSU is recognized as stock-based compensation expense over the vesting term of the award. The fair value is based on the closing stock price on the date of the grant. The Company uses the Black-Scholes valuation model to calculate the fair value of shares issued pursuant to the ESPP. Stock-based compensation expense is recognized over the purchase period using the straight-line method. The fair value of ESPP shares was estimated at the purchase period commencement date using the following assumptions:
|  | Three Months Ended |  |  | Three Months Ended |  |  | Six Months Ended |  |  | Six Months Ended |
|  | September 30, 2025* |  |  | September 30, 2024 |  |  | September 30, 2025* |  |  | September 30, 2024 |
Dividend yield |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Volatility |  |  | 0.00 | % |  |  | 95.20 | % |  |  | 0.00 | % |  |  | 95.20 | %
Risk-free interest rate |  |  | 0.00 | % |  |  | 5.27 | % |  |  | 0.00 | % |  |  | 5.27 | %
Expected term |  |  | — |  |  | 6 months |  |  |  | — |  |  | 6 months |
Grant date fair value |  | $ | — |  |  | $ | 4.68 |  |  | $ | — |  |  | $ | 4.68 |
*There were no participants in the ESPP for the purchase periods that commenced on March 1, 2025. The assumed dividend yield is based on the Company’s expectation of not paying dividends in the foreseeable future. The Company uses the Company-specific historical volatility rate as the indicator of expected volatility. The risk-free interest rate assumption is based on U.S. Treasury rates. The expected life is the 6-month purchase period.

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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://www.xbrl.org/2009/role/commonPracticeRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/505/tableOfContent + Details
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