| | |
Per Share
|
| |
Total
|
| ||||||
Initial public offering price
|
| | | $ | 8.00 | | | | | $ | 18,000,000 | | |
Underwriting discount(1)
|
| | | $ | 0.60 | | | | | $ | 1,350,000 | | |
Proceeds, before expenses, to iSpecimen Inc.
|
| | | $ | 7.40 | | | | | $ | 16,650,000 | | |
| | |
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| | | | F-1 | | |
| | |
Three Months Ended March 31,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(Unaudited)
|
| | | | ||||||||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | 2,963,807 | | | | | $ | 1,711,660 | | | | | $ | 8,184,106 | | | | | $ | 4,298,350 | | |
Total operating expenses
|
| | | | 3,906,451 | | | | | | 2,157,193 | | | | | | 10,590,486 | | | | | | 8,178,439 | | |
Loss from operations
|
| | | | (942,644) | | | | | | (445,533) | | | | | | (2,406,380) | | | | | | (3,880,089) | | |
Other expense, net
|
| | | | (3,020,847) | | | | | | (1,192,446) | | | | | | (2,245,704) | | | | | | (1,003,961) | | |
Net loss
|
| | | | (3,963,491) | | | | | | (1,637,979) | | | | | | (4,652,084) | | | | | | (4,727,050) | | |
Net loss per common share – basic and diluted(1)
|
| | | $ | (4.23) | | | | | $ | (1.75) | | | | | $ | (4.97) | | | | | $ | (5.05) | | |
Weighted average common shares outstanding – basic and diluted(1)
|
| | | | 936,213 | | | | | | 936,213 | | | | | | 936,213 | | | | | | 936,096 | | |
Pro forma net loss (unaudited)(2)
|
| | | $ | (4,419,905) | | | | | | | | | | | | | | | | | | | | |
Pro forma net loss per common share – basic and diluted
(unaudited)(2) |
| | | $ | (1.04) | | | | | | | | | | | | | | | | | | | | |
Pro forma weighted average common shares
outstanding – basic and diluted (unaudited)(2) |
| | | | 4,242,536 | | | | | | | | | | | | | | | | | | | | |
| | |
As of March 31, 2021
|
| |||||||||||||||
| | |
Actual
|
| |
Pro Forma
|
| |
Pro Forma
As Adjusted(2) |
| |||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 355,126 | | | | | $ | 855,126 | | | | | $ | 14,436,863 | | |
Working capital(1)
|
| | | | (22,751,850) | | | | | | (5,591,620) | | | | | | 10,458,380 | | |
Total assets
|
| | | | 5,823,755 | | | | | | 6,323,755 | | | | | | 19,905,492 | | |
Total liabilities
|
| | | | 25,870,101 | | | | | | 9,209,871 | | | | | | 6,741,607 | | |
Convertible preferred stock
|
| | | | 11,173,076 | | | | | | — | | | | | | — | | |
Total stockholders’ (deficit) equity
|
| | | | (31,219,422) | | | | | | (2,886,116) | | | | | | 13,163,884 | | |
| | |
As of March 31, 2021
|
| |||||||||||||||
| | |
Actual
|
| |
Pro Forma
|
| |
Pro Forma
As Adjusted(1) |
| |||||||||
| | |
(Unaudited)
|
| |||||||||||||||
Cash
|
| | | $ | 355,126 | | | | | $ | 855,126 | | | | | $ | 14,436,863 | | |
Convertible notes payable, related parties, net of unamortized debt discount and debt issuance costs
|
| | | $ | 5,491,899 | | | | | $ | — | | | | | $ | — | | |
Bridge notes payable, net of debt discount
|
| | | | 4,185,172 | | | | | | 2,480,077 | | | | | | 2,480,077 | | |
Bridge notes payable, related parties, net of debt discount
|
| | | | 1,735,094 | | | | | | 246,582 | | | | | | 246,582 | | |
Accrued interest
|
| | | | 4,253,987 | | | | | | 2,468,263 | | | | | | — | | |
Derivative liability for embedded conversion features on convertible notes payable
|
| | | | 2,527,000 | | | | | | — | | | | | | — | | |
Derivative liability for embedded conversion feature on bridge notes payable and bridge notes, related parties
|
| | | | 3,662,000 | | | | | | — | | | | | | — | | |
Total debt
|
| | | | 21,855,152 | | | | | | 5,194,922 | | | | | | 2,726,659 | | |
Series B convertible preferred stock, $0.0001 par value, 3,200,000 shares authorized, 572,465 shares issued and outstanding, actual; no shares outstanding pro forma; and no shares outstanding pro forma as adjusted
|
| | | | 7,999,997 | | | | | | — | | | | | | — | | |
Series A-1 convertible preferred stock, $0.0001 par value, 556,550 shares authorized, 100,365 issued and outstanding, actual; no shares outstanding pro forma; and no shares outstanding pro forma as adjusted
|
| | | | 561,041 | | | | | | — | | | | | | — | | |
| | |
As of March 31, 2021
|
| |||||||||||||||
| | |
Actual
|
| |
Pro Forma
|
| |
Pro Forma
As Adjusted(1) |
| |||||||||
| | |
(Unaudited)
|
| |||||||||||||||
Series A convertible preferred stock, $0.0001 par value, 3,427,871 shares authorized, 618,182 issued and outstanding, actual; no shares outstanding pro forma; and no shares outstanding pro forma as adjusted
|
| | | | 2,612,038 | | | | | | — | | | | | | — | | |
Total convertible preferred stock
|
| | | | 11,173,076 | | | | | | — | | | | | | — | | |
Stockholders’ Deficit: | | | | | | | | | | | | | | | | | | | |
Common stock, $0.0001 par value, 16,000,000 shares authorized; 967,213 issued and 936,213 shares outstanding, actual; 4,242,536 shares outstanding pro forma; and 6,492,536 shares outstanding pro forma as adjusted
|
| | | | 94 | | | | | | 425 | | | | | | 650 | | |
Additional paid-in capital
|
| | | | 1,801,734 | | | | | | 30,591,123 | | | | | | 46,640,898 | | |
Treasury stock, at cost, 31,000 shares
|
| | | | (172) | | | | | | (172) | | | | | | (172) | | |
Accumulated deficit
|
| | | | (33,021,078) | | | | | | (33,477,492) | | | | | | (33,477,492) | | |
Total stockholders’ (deficit) equity:
|
| | | | (31,219,422) | | | | | | (2,886,116) | | | | | | 13,163,884 | | |
Total Capitalization:
|
| | | $ | 1,808,806 | | | | | $ | 2,308,806 | | | | | $ | 15,890,543 | | |
|
|
Initial public offering price per share of common stock
|
| |
|
| | | $ | 8.00 | | | |||
|
Historical net tangible book value (deficit) per share as of March 31, 2021
|
| | | $ | (33.35) | | | | | | | | |
|
Increase per share attributed to the conversion of outstanding preferred stock, Convertible Notes, and Bridge Notes
|
| | | | 32.67 | | | | | | | | |
|
Pro forma net tangible book value per share as of March 31, 2021 before this offering
|
| | | | (0.68) | | | | | | | | |
|
Increase in pro forma as adjusted net tangible book value per share attributable to investors in this offering
|
| | | | 2.71 | | | | | | | | |
|
Pro forma as adjusted net tangible book value per share after this offering
|
| | | | | | | | | | 2.03 | | |
|
Dilution per share to new common stock investors in this offering
|
| | | | | | | | | $ | 5.97 | | |
| | |
Shares purchased
|
| |
Total consideration
|
| |
Average price
per share |
| |||||||||||||||||||||
| | |
Number
|
| |
Percentage
|
| |
Amount
|
| |
Percentage
|
| ||||||||||||||||||
Existing Shareholders
|
| | | | 4,242,536 | | | | | | 65% | | | | | $ | 511,186 | | | | | | 3% | | | | | $ | 0.13 | | |
New Investors
|
| | | | 2,250,000 | | | | | | 35 | | | | | | 18,000,000 | | | | | | 97 | | | | | | 8.00 | | |
Total
|
| | | | 6,492,536 | | | | | | 100% | | | | | $ | 18,511,186 | | | | | | 100% | | | | | $ | 2.85 | | |
| | |
Three Months Ended March 31,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(Unaudited)
|
| | | | ||||||||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | 2,963,807 | | | | | $ | 1,711,660 | | | | | $ | 8,184,106 | | | | | $ | 4,298,350 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 1,623,651 | | | | | | 654,268 | | | | | | 3,585,477 | | | | | | 2,127,900 | | |
Technology
|
| | | | 409,951 | | | | | | 426,712 | | | | | | 1,426,473 | | | | | | 993,329 | | |
Sales and marketing
|
| | | | 529,387 | | | | | | 431,640 | | | | | | 1,775,347 | | | | | | 1,413,059 | | |
Supply development
|
| | | | 111,576 | | | | | | 114,605 | | | | | | 495,967 | | | | | | 792,778 | | |
Fulfillment
|
| | | | 269,096 | | | | | | 215,171 | | | | | | 853,450 | | | | | | 914,633 | | |
General and administrative
|
| | | | 962,790 | | | | | | 314,797 | | | | | | 2,453,772 | | | | | | 1,936,740 | | |
Total operating expenses
|
| | | | 3,906,451 | | | | | | 2,157,193 | | | | | | 10,590,486 | | | | | | 8,178,439 | | |
Loss from operations
|
| | | | (942,644) | | | | | | (445,533) | | | | | | (2,406,380) | | | | | | (3,880,089) | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | (853,147) | | | | | | (587,669) | | | | | | (2,096,795) | | | | | | (1,724,450) | | |
Change in fair value of derivative liability on convertible notes
|
| | | | (154,000) | | | | | | (605,000) | | | | | | (159,000) | | | | | | 551,000 | | |
Change in fair value of derivative liability
on bridge notes and bridge notes, related parties |
| | | | (48,000) | | | | | | — | | | | | | — | | | | | | — | | |
Loss on extinguishment of bridge notes and bridge notes, related parties
|
| | | | (2,750,171) | | | | | | — | | | | | | — | | | | | | — | | |
Gain on extinguishment of note payable
|
| | | | 788,156 | | | | | | — | | | | | | — | | | | | | — | | |
Other income
|
| | | | (3,732) | | | | | | — | | | | | | 9,654 | | | | | | 168,859 | | |
Interest income
|
| | | | 47 | | | | | | 223 | | | | | | 437 | | | | | | 630 | | |
Other expense, net
|
| | | | (3,020,847) | | | | | | (1,192,446) | | | | | | (2,245,704) | | | | | | (1,003,961) | | |
Net loss before benefit from income taxes
|
| | | | (3,963,491) | | | | | | (1,637,979) | | | | | | (4,652,084) | | | | | | (4,884,050) | | |
Benefit from income taxes
|
| | | | — | | | | | | — | | | | | | — | | | | | | 157,000 | | |
Net loss
|
| | | $ | (3,963,491) | | | | | $ | (1,637,979) | | | | | $ | (4,652,084) | | | | | $ | (4,727,050) | | |
Net loss per common share – basic and diluted(1)
|
| | | $ | (4.23) | | | | | $ | (1.75) | | | | | $ | (4.97) | | | | | $ | (5.05) | | |
| | |
Three Months Ended March 31,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(Unaudited)
|
| | | | ||||||||||||||||||
Weighted average common shares outstanding – basic and diluted(1)
|
| | | | 936,213 | | | | | | 936,213 | | | | | | 936,213 | | | | | | 936,096 | | |
Pro forma net loss (unaudited)(2)
|
| | | $ | (4,419,905) | | | | | | | | | | | | | | | | | | | | |
Pro forma net loss per common share – basic
and diluted (unaudited)(2) |
| | | $ | (1.04) | | | | | | | | | | | | | | | | | | | | |
Pro forma weighted average common shares outstanding – basic and diluted (unaudited)(2)
|
| | | $ | 4,242,536 | | | | | | | | | | | | | | | | | | | | |
|
| | |
As of
March 31, 2021 |
| |
As of December 31,
|
| ||||||||||||
| | |
2020
|
| |
2019
|
| ||||||||||||
| | |
(Unaudited)
|
| | | |||||||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 355,126 | | | | | $ | 695,909 | | | | | $ | 53,893 | | |
Working capital(1)
|
| | | | (22,751,850) | | | | | | (18,663,321) | | | | | | (14,179,599) | | |
Total assets
|
| | | | 5,823,755 | | | | | | 6,209,696 | | | | | | 4,214,588 | | |
Accrued interest
|
| | | | 4,253,987 | | | | | | 3,696,944 | | | | | | 1,745,515 | | |
Convertible notes payable, related parties, net of unamortized debt discount and debt issuance costs
|
| | | | 5,491,899 | | | | | | 5,490,811 | | | | | | 5,350,278 | | |
Derivative liability for embedded conversion features on convertible notes
|
| | | | 2,527,000 | | | | | | 2,373,000 | | | | | | 2,214,000 | | |
Bridge notes payable, net of debt discount and debt issuance costs
|
| | | | 4,185,172 | | | | | | 4,589,228 | | | | | | 3,586,326 | | |
Bridge notes payable, related parties, net of debt discount
|
| | | | 1,735,094 | | | | | | 1,905,000 | | | | | | 1,655,000 | | |
Derivative liability for embedded conversion feature on bridge notes payable and bridge notes, related parties
|
| | | | 3,662,000 | | | | | | — | | | | | | — | | |
Note payable, current portion
|
| | | | — | | | | | | 604,109 | | | | | | — | | |
Note payable, net of current portion
|
| | | | — | | | | | | 178,899 | | | | | | — | | |
Convertible preferred stock
|
| | | | 11,173,076 | | | | | | 11,173,076 | | | | | | 11,173,076 | | |
| | |
As of
March 31, 2021 |
| |
As of December 31,
|
| ||||||||||||
| | |
2020
|
| |
2019
|
| ||||||||||||
| | |
(Unaudited)
|
| | | |||||||||||||
Total stockholders’ deficit
|
| | | | (31,219,422) | | | | | | (27,277,967) | | | | | | (22,718,749) | | |
| | |
Three Months Ended March 31,
|
| |
Change
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
Dollars
|
| |
Percentage
|
| ||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | |||||||||
Revenue
|
| | | $ | 2,963,807 | | | | | $ | 1,711,660 | | | | | $ | 1,252,147 | | | | | | 73% | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of Revenue
|
| | | | 1,623,651 | | | | | | 654,268 | | | | | | 969,383 | | | | | | 148% | | |
Technology
|
| | | | 409,951 | | | | | | 426,712 | | | | | | (16,761) | | | | | | (4)% | | |
Sales and marketing
|
| | | | 529,387 | | | | | | 431,640 | | | | | | 97,747 | | | | | | 23% | | |
Supply development
|
| | | | 111,576 | | | | | | 114,605 | | | | | | (3,029) | | | | | | (3)% | | |
Fulfillment
|
| | | | 269,096 | | | | | | 215,171 | | | | | | 53,925 | | | | | | 25% | | |
General and administrative
|
| | | | 962,790 | | | | | | 314,797 | | | | | | 647,993 | | | | | | 206% | | |
Total operating expenses
|
| | | | 3,906,451 | | | | | | 2,157,193 | | | | | | 1,749,258 | | | | | | 81% | | |
Loss from operations
|
| | | | (942,644) | | | | | | (445,533) | | | | | | (497,111) | | | | | | (112)% | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | (853,147) | | | | | | (587,669) | | | | | | (265,478) | | | | | | (45)% | | |
Change in fair value of derivative liability on
convertible notes |
| | | | (154,000) | | | | | | (605,000) | | | | | | 451,000 | | | | | | 75% | | |
Change in fair value of derivative liability on
bridge notes and bridge notes, related parties |
| | | | (48,000) | | | | | | — | | | | | | (48,000) | | | | | | (100)% | | |
Loss on extinguishment of bridge notes and bridge notes, related parties
|
| | | | (2,750,171) | | | | | | — | | | | | | (2,750,171) | | | | | | (100)% | | |
Gain on extinguishment of note payable
|
| | | | 788,156 | | | | | | — | | | | | | 788,156 | | | | | | 100% | | |
Other income
|
| | | | (3,732) | | | | | | — | | | | | | (3,732) | | | | | | (100)% | | |
Interest income
|
| | | | 47 | | | | | | 223 | | | | | | (176) | | | | | | (79)% | | |
Other expense, net
|
| | | | (3,020,847) | | | | | | (1,192,446) | | | | | | (1,828,401) | | | | | | (153)% | | |
Benefit from income taxes
|
| | | | — | | | | | | — | | | | | | — | | | | | | 100% | | |
Net loss
|
| | | $ | (3,963,491) | | | | | $ | (1,637,979) | | | | | $ | (2,325,512) | | | | | | (142)% | | |
| | |
Years Ended December 31,
|
| |
Change
|
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
Dollars
|
| |
Percentage
|
| ||||||||||||
Revenue
|
| | | $ | 8,184,106 | | | | | $ | 4,298,350 | | | | | $ | 3,885,756 | | | | | | 90% | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 3,585,477 | | | | | | 2,127,900 | | | | | | 1,457,577 | | | | | | 68% | | |
Technology
|
| | | | 1,426,473 | | | | | | 993,329 | | | | | | 433,144 | | | | | | 44% | | |
Sales and marketing
|
| | | | 1,775,347 | | | | | | 1,413,059 | | | | | | 362,288 | | | | | | 26% | | |
Supply development
|
| | | | 495,967 | | | | | | 792,778 | | | | | | (296,811) | | | | | | (37)% | | |
Fulfillment
|
| | | | 853,450 | | | | | | 914,633 | | | | | | (61,183) | | | | | | (7)% | | |
General and administrative
|
| | | | 2,453,772 | | | | | | 1,936,740 | | | | | | 517,032 | | | | | | 27% | | |
Total operating expenses
|
| | | | 10,590,486 | | | | | | 8,178,439 | | | | | | 2,412,047 | | | | | | 29% | | |
Loss from operations
|
| | | | (2,406,380) | | | | | | (3,880,089) | | | | | | 1,473,709 | | | | | | 38% | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | (2,096,795) | | | | | | (1,724,450) | | | | | | (372,345) | | | | | | (22)% | | |
Change in fair value of derivative liability
|
| | | | (159,000) | | | | | | 551,000 | | | | | | (710,000) | | | | | | (129)% | | |
Other income
|
| | | | 9,654 | | | | | | 168,859 | | | | | | (159,205) | | | | | | (94)% | | |
Interest income
|
| | | | 437 | | | | | | 630 | | | | | | (193) | | | | | | (31)% | | |
Other expense, net
|
| | | | (2,245,704) | | | | | | (1,003,961) | | | | | | (1,241,743) | | | | | | (124)% | | |
Benefit from income taxes
|
| | | | — | | | | | | 157,000 | | | | | | (157,000) | | | | | | (100)% | | |
Net loss
|
| | | $ | (4,652,084) | | | | | $ | (4,727,050) | | | | | $ | 74,966 | | | | | | 2% | | |
| | |
Three Months Ended March 31,
|
| |
Change
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
Dollars
|
| |
Percentage
|
| ||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | |||||||||
Net cash flows used in operating activities
|
| | | $ | (126,249) | | | | | $ | (426,011) | | | | | $ | 299,762 | | | | | | 70% | | |
Net cash flows used in investing activities
|
| | | | (214,534) | | | | | | (260,204) | | | | | | 45,670 | | | | | | 18% | | |
Net cash flows provided by financing activities
|
| | | | — | | | | | | 1,000,000 | | | | | | (1,000,000) | | | | | | (100)% | | |
Net (decrease) increase in cash and cash equivalents
|
| | | $ | (340,783) | | | | | $ | 313,785 | | | | | $ | (654,568) | | | | | | | | |
| | |
Years Ended December 31,
|
| |
Change
|
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
Dollars
|
| |
Percentage
|
| ||||||||||||
Net cash flows used in operating activities
|
| | | $ | (288,380) | | | | | $ | (2,679,900) | | | | | $ | 2,391,520 | | | | | | 89% | | |
Net cash flows used in investing activities
|
| | | | (1,102,612) | | | | | | (1,475,245) | | | | | | 372,633 | | | | | | 25% | | |
Net cash flows provided by financing activities
|
| | | | 2,033,008 | | | | | | 3,078,674 | | | | | | (1,045,666) | | | | | | (34)% | | |
Net increase (decrease) in cash and cash equivalents
|
| | | $ | 642,016 | | | | | $ | (1,076,471) | | | | | $ | 1,718,487 | | | | | | | | |
| | |
Three Months Ended March 31,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | |||||||||
Net loss
|
| | | $ | (3,963,491) | | | | | $ | (1,637,979) | | | | | $ | (4,652,084) | | | | | $ | (4,727,050) | | |
Income tax benefit
|
| | | | — | | | | | | — | | | | | | — | | | | | | (157,000) | | |
Change in fair value of derivative liability on convertible notes
|
| | | | 154,000 | | | | | | 605,000 | | | | | | 159,000 | | | | | | (551,000) | | |
Change in fair value of derivative liability on
bridge notes and bridge notes, relates parties |
| | | | 48,000 | | | | | | — | | | | | | — | | | | | | — | | |
Loss on extinguishment of bridge notes and bridge notes, related parties
|
| | | | 2,750,171 | | | | | | — | | | | | | — | | | | | | — | | |
Gain on extinguishment of note payable
|
| | | | (788,156) | | | | | | — | | | | | | — | | | | | | — | | |
Interest expense
|
| | | | 853,147 | | | | | | 587,669 | | | | | | 2,096,795 | | | | | | 1,724,450 | | |
Depreciation & amortization
|
| | | | 246,359 | | | | | | 220,848 | | | | | | 819,687 | | | | | | 634,965 | | |
Share-based compensation
|
| | | | 22,036 | | | | | | 22,045 | | | | | | 92,866 | | | | | | 360,379 | | |
Adjusted EBITDA
|
| | | $ | (677,934) | | | | | $ | (202,417) | | | | | $ | (1,483,736) | | | | | $ | (2,715,256) | | |
| | | | | | | | |
December 31,
|
| |||||||||
| | |
March 31, 2021
|
| |
2020
|
| |
2019
|
| |||||||||
Americas
|
| | | | 77.3% | | | | | | 92.28% | | | | | | 97.7% | | |
Europe, Middle East, and Africa (“EMEA”)
|
| | | | 21.6% | | | | | | 2.31% | | | | | | 0.2% | | |
Asia Pacific (“APAC”)
|
| | | | 1.1% | | | | | | 5.41% | | | | | | 2.1% | | |
| | | | | | | | |
December 31,
|
| |||||||||
| | |
March 31, 2021
|
| |
2020
|
| |
2019
|
| |||||||||
Americas
|
| | | | 95.7% | | | | | | 94.4% | | | | | | 77.5% | | |
Europe, Middle East, and Africa (EMEA)
|
| | | | 4.3% | | | | | | 1.8% | | | | | | 22.5% | | |
Asia Pacific (APAC)
|
| | | | 0.0% | | | | | | 3.8% | | | | | | 0.0% | | |
| | |
As of December 31,
|
| |
CAGR
2016-20 |
| |
As of
March 31, 2021 |
| |||||||||||||||||||||||||||||||||
Sales Pipeline Stage — Totals
(in thousands) |
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||||||||||||||
Inquiries
|
| | | $ | 76,765 | | | | | $ | 54,266 | | | | | $ | 26,530 | | | | | $ | 26,236 | | | | | $ | 11,057 | | | | | | 62% | | | | | $ | 22,534 | | |
Quotes
|
| | | $ | 64,333 | | | | | $ | 36,569 | | | | | $ | 17,851 | | | | | $ | 16,464 | | | | | $ | 6,763 | | | | | | 76% | | | | | $ | 15,060 | | |
Purchase Orders
|
| | | $ | 14,850 | | | | | $ | 12,065 | | | | | $ | 8,228 | | | | | $ | 5,185 | | | | | $ | 2,109 | | | | | | 63% | | | | | $ | 5,514 | | |
Revenue | | | | $ | 8,184 | | | | | $ | 4,298 | | | | | $ | 4,395 | | | | | $ | 3,067 | | | | | $ | 1,448 | | | | | | 53% | | | | | $ | 2,964 | | |
| | |
As of December 31,
|
| |
CAGR
2016-20 |
| |
As of
March 31, 2021 |
| |||||||||||||||||||||||||||||||||
Sales Pipeline Stage — Averages (in
thousands) |
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||||||||||||||
Inquiries
|
| | | $ | 56.5 | | | | | $ | 42.1 | | | | | $ | 23.2 | | | | | $ | 17.8 | | | | | $ | 18.8 | | | | | | 32% | | | | | $ | 59.5 | | |
Quotes
|
| | | $ | 78.7 | | | | | $ | 47.1 | | | | | $ | 34.1 | | | | | $ | 20.3 | | | | | $ | 16.5 | | | | | | 48% | | | | | $ | 77.6 | | |
Purchase Orders
|
| | | $ | 33.8 | | | | | $ | 35.5 | | | | | $ | 26.3 | | | | | $ | 9.8 | | | | | $ | 7.0 | | | | | | 48% | | | | | $ | 53.5 | | |
| | |
As of December 31,
|
| |
CAGR
2016-20 |
| |
As of
March 31, 2021 |
| |||||||||||||||||||||||||||||||||
Average Selling Price
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||||||||||||||
Per Specimen Shipped
|
| | | $ | 325.47 | | | | | $ | 329.18 | | | | | $ | 163.98 | | | | | $ | 95.46 | | | | | $ | 35.48 | | | | | | 74% | | | | | $ | 311.88 | | |
| | |
As of December 31,
|
| |
CAGR
2016-20 |
| |
As of
March 31, 2021 |
| |||||||||||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||||||||||||||
Cumulative Number of Customer Organizations
|
| | | | 330 | | | | | | 230 | | | | | | 172 | | | | | | 135 | | | | | | 69 | | | | | | 48% | | | | | | 349 | | |
Number of Active Customer Organizations
|
| | | | 172 | | | | | | 108 | | | | | | 96 | | | | | | 104 | | | | | | 56 | | | | | | 32% | | | | | | 175 | | |
Name
|
| |
Age
|
| |
Position
|
| |||
Christopher Ianelli
|
| | | | 54 | | | | Chief Executive Officer, President, and Director | |
Jill Mullan
|
| | | | 56 | | | |
Chief Operating Officer, Secretary, Treasurer, and Director
|
|
Benjamin Bielak
|
| | | | 51 | | | | Chief Information Officer | |
Tracy Curley
|
| | | | 59 | | | | Chief Financial Officer | |
Andrew L. Ross
|
| | | | 72 | | | | Chairman of the Board | |
George “Bud” Scholl
|
| | | | 61 | | | | Director | |
Steven Gullans
|
| | | | 67 | | | | Director | |
John L. Brooks III
|
| | | | 69 | | | | Director Nominee | |
Margaret H. Lawrence
|
| | | | 45 | | | | Director Nominee | |
Name and Principal Position
|
| |
Year
|
| |
Salary
($) |
| |
Bonus
($) |
| |
Option
awards ($)(1) |
| |
All other
compensation ($) |
| |
Total
($) |
| ||||||||||||||||||
Christopher Ianelli,
|
| | | | 2020 | | | | | $ | 250,000 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 250,000 | | |
Chief Executive, President and Director
|
| | | | 2019 | | | | | $ | 250,000 | | | | | $ | — | | | | | $ | 297,587 | | | | | $ | — | | | | | $ | 547,587 | | |
Jill Mullan,
|
| | | | 2020 | | | | | $ | 230,000 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 230,000 | | |
Chief Operating Officer, Secretary and Treasurer
|
| | | | 2019 | | | | | $ | 230,000 | | | | | $ | — | | | | | $ | 397,671 | | | | | $ | — | | | | | $ | 627,617 | | |
Benjamin Bielak
|
| | | | 2020 | | | | | $ | 220,000 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 220,000 | | |
Chief Information Officer
|
| | | | 2019 | | | | | $ | 220,000 | | | | | $ | — | | | | | $ | 25,500 | | | | | $ | — | | | | | $ | 245,500 | | |
Tracy Curley(2)
|
| | | | 2020 | | | | | $ | 105,600 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 105,600 | | |
Chief Financial Officer
|
| | | | 2019 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | |
Option Awards
|
| ||||||||||||||||||||||||
Name
|
| |
Number of
securities underlying unexercised options (#) exercisable |
| |
Number of
securities underlying unexercised options (#) unexercisable |
| |
Equity incentive
plan awards; Number of securities underlying unexercised unearned options (#) |
| |
Option exercise
price ($) |
| |
Option
expiration date |
| ||||||||||||
Christopher Ianelli
|
| | | | 2,254 | | | | | | 2,254 | | | | | | — | | | | | $ | 1.00 | | | |
January 31, 2029
|
|
Christopher Ianelli
|
| | | | 48,106 | | | | | | — | | | | | | — | | | | | $ | 1.00 | | | |
July 12, 2029
|
|
Jill Mullan
|
| | | | 19,296 | | | | | | — | | | | | | — | | | | | $ | 1.00 | | | |
June 29, 2026
|
|
Jill Mullan
|
| | | | 2,254 | | | | | | 2,254 | | | | | | — | | | | | $ | 1.00 | | | |
January 31, 2029
|
|
Jill Mullan
|
| | | | 65,792 | | | | | | — | | | | | | — | | | | | $ | 1.00 | | | |
July 12, 2029
|
|
Benjamin Bielak
|
| | | | 14,653 | | | | | | 8,791 | | | | | | — | | | | | $ | 1.00 | | | |
June 14, 2028
|
|
Benjamin Bielak
|
| | | | 2,254 | | | | | | 2,254 | | | | | | — | | | | | $ | 1.00 | | | |
January 31, 2029
|
|
Name and Principal Position
|
| |
Year
|
| |
Salary
($) |
| |
Bonus
($) |
| |
Option
awards ($)(1) |
| |
All other
compensation ($) |
| |
Total
($) |
| ||||||||||||||||||
Andrew Ross,
|
| | | | 2020 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Chairman of the Board
|
| | | | 2019 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Bud Scholl
|
| | | | 2020 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Director
|
| | | | 2019 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Steven Gullans
|
| | | | 2020 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Director
|
| | | | 2019 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | |
Shares beneficially
owned prior to the offering |
| |
Shares beneficially
owned after the offering |
| ||||||||||||||||||||||||||||||||||||||||||
Name of beneficial
owner |
| |
Common
stock |
| |
Options
exercisable within 60 days |
| |
Aggregate
number of shares beneficially owned |
| |
%
|
| |
Assuming
no exercise of option to purchase additional shares |
| |
%
|
| |
Assuming
exercise of option to purchase additional shares |
| |
%
|
| ||||||||||||||||||||||||
5% or more stockholders:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Anna-Maria & Stephen Kellen Foundation(1)
|
| | | | 196,785(2) | | | | | | — | | | | | | 196,785 | | | | | | 8.7% | | | | | | 616,875(7) | | | | | | 9.5% | | | | | | 616,875(7) | | | | | | 9.0% | | |
OBF Investments
|
| | | | 250,456(3) | | | | | | — | | | | | | 250,456 | | | | | | 11.1% | | | | | | 841,310(8) | | | | | | 12.9% | | | | | | 841,310(8) | | | | | | 12.3% | | |
Named executive officers and directors:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Andrew L. Ross
|
| | | | 854,847(4) | | | | | | — | | | | | | 854,847 | | | | | | 38.0% | | | | | | 1,313,254(9) | | | | | | 20.2% | | | | | | 1,313,254(9) | | | | | | 19.2% | | |
Christopher Ianelli
|
| | | | 343,357(5) | | | | | | 50,642 | | | | | | 393,999 | | | | | | 17.1% | | | | | | 393,999 | | | | | | 6.2% | | | | | | 393,999 | | | | | | 5.9% | | |
Jill Mullan
|
| | | | 49,566(6) | | | | | | 87,625 | | | | | | 137,191 | | | | | | 5.9% | | | | | | 213,833(10) | | | | | | 3.2% | | | | | | 213,833(10) | | | | | | 3.1% | | |
Benjamin Bielak
|
| | | | — | | | | | | 3,313 | | | | | | 3,313 | | | | | | — | | | | | | 3,313 | | | | | | — | | | | | | 3,313 | | | | | | — | | |
Tracy Curley
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
George “Bud”Scholl
|
| | | | 250,456(3) | | | | | | — | | | | | | 250,456 | | | | | | 11.1% | | | | | | 841,310(8) | | | | | | 12.7% | | | | | | 841,310(8) | | | | | | 12.1% | | |
Steven Gullans
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
John L. Brooks III
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Margaret H. Lawrence
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
All current directors and executive officers as a group (9 persons)
|
| | | | 1,498,226 | | | | | | 141,580 | | | | | | 1,639,806 | | | | | | 68.6% | | | | | | 2,765,709 | | | | | | 41.5% | | | | | | 2,765,709 | | | | | | 39.5% | | |
Underwriters
|
| |
Number of Shares
|
| |||
ThinkEquity, a division of Fordham Financial Management, Inc.
|
| | | | 2,250,000 | | |
| | | | | | | |
Total
|
| | | | 2,250,000 | | |
| | | | | | | | |
Total
|
| |||||||||
| | |
Per Share
|
| |
Without Over-Allotment
|
| |
With Over-Allotment
|
| |||||||||
Public offering price
|
| | | $ | 8.00 | | | | | $ | 18,000,000 | | | | | $ | 20,700,000 | | |
Underwriting discount (7.5%)
|
| | | $ | 0.60 | | | | | $ | 1,350,000 | | | | | $ | 1,552,500 | | |
Proceeds, before expenses, to us
|
| | | $ | 7.40 | | | | | $ | 16,650,000 | | | | | $ | 19,147,500 | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-28 | | | |
| | | | | F-29 | | | |
| | | | | F-30 | | | |
| | | | | F-31 | | | |
| | | | | F-32 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
ASSETS
|
| | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 695,909 | | | | | $ | 53,893 | | |
Accounts receivable, net of allowance for doubtful accounts of $108,096 and $0 at December 31, 2020 and 2019, respectively
|
| | | | 1,526,392 | | | | | | 833,580 | | |
Accounts receivable-unbilled
|
| | | | 652,761 | | | | | | 454,576 | | |
Prepaid expenses and other current assets
|
| | | | 417,929 | | | | | | 134,135 | | |
Tax credit receivable, current portion
|
| | | | 179,376 | | | | | | 104,478 | | |
Total current assets
|
| | | | 3,472,367 | | | | | | 1,580,662 | | |
Property and equipment, net
|
| | | | 75,589 | | | | | | 119,921 | | |
Internally developed software, net
|
| | | | 2,634,139 | | | | | | 2,306,882 | | |
Tax credit receivable, net of current portion
|
| | | | — | | | | | | 179,522 | | |
Security deposits
|
| | | | 27,601 | | | | | | 27,601 | | |
Total assets
|
| | | $ | 6,209,696 | | | | | $ | 4,214,588 | | |
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND
STOCKHOLDERS’ DEFICIT |
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 1,792,432 | | | | | $ | 737,794 | | |
Accrued expenses
|
| | | | 810,910 | | | | | | 471,348 | | |
Accrued interest
|
| | | | 3,696,944 | | | | | | 1,745,515 | | |
Convertible notes payable, related parties, net of unamortized debt discount
and debt issuance costs |
| | | | 5,490,811 | | | | | | 5,350,278 | | |
Derivative liability for embedded conversion features
|
| | | | 2,373,000 | | | | | | 2,214,000 | | |
Bridge notes payable, net of debt issuance costs
|
| | | | 4,589,228 | | | | | | 3,586,326 | | |
Bridge notes payable, related parties
|
| | | | 1,905,000 | | | | | | 1,655,000 | | |
Note payable, current portion
|
| | | | 604,109 | | | | | | — | | |
Deferred revenue
|
| | | | 873,254 | | | | | | — | | |
Total current liabilities
|
| | | | 22,135,688 | | | | | | 15,760,261 | | |
Note payable, net of current portion
|
| | | | 178,899 | | | | | | — | | |
Total liabilities
|
| | | | 22,314,587 | | | | | | 15,760,261 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Series B convertible preferred stock, $0.0001 par value, 3,200,000 shares
authorized, 572,465 shares issued and outstanding at December 31, 2020 and 2019 (preference in liquidation of $10,604,240) |
| | | | 7,999,997 | | | | | | 7,999,997 | | |
Series A-1 convertible preferred stock, $0.0001 par value, 556,550 shares authorized, 100,365 issued and outstanding at December 31, 2020 and 2019 (preference in liquidation of $780,170)
|
| | | | 561,041 | | | | | | 561,041 | | |
Series A convertible preferred stock, $0.0001 par value, 3,427,871 shares authorized, 618,182 issued and outstanding at December 31, 2020 and 2019 (preference in liquidation of $3,935,804)
|
| | | | 2,612,038 | | | | | | 2,612,038 | | |
Total convertible preferred stock
|
| | | | 11,173,076 | | | | | | 11,173,076 | | |
Stockholders’ Deficit: | | | | | | | | | | | | | |
Common stock, $0.0001 par value, 16,000,000 shares authorized, 967,213 issued and 936,213 outstanding at December 31, 2020 and 2019
|
| | | | 94 | | | | | | 94 | | |
Additional paid-in capital
|
| | | | 1,779,698 | | | | | | 1,686,832 | | |
Treasury stock, 31,000 shares at December 31, 2020 and 2019, at cost
|
| | | | (172) | | | | | | (172) | | |
Accumulated deficit
|
| | | | (29,057,587) | | | | | | (24,405,503) | | |
Total stockholders’ deficit
|
| | | | (27,277,967) | | | | | | (22,718,749) | | |
Total liabilities, convertible preferred stock and stockholders’ deficit
|
| | | $ | 6,209,696 | | | | | $ | 4,214,588 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Revenue
|
| | | $ | 8,184,106 | | | | | $ | 4,298,350 | | |
Operating expenses: | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 3,585,477 | | | | | | 2,127,900 | | |
Technology
|
| | | | 1,426,473 | | | | | | 993,329 | | |
Sales and marketing
|
| | | | 1,775,347 | | | | | | 1,413,059 | | |
Supply development
|
| | | | 495,967 | | | | | | 792,778 | | |
Fulfillment
|
| | | | 853,450 | | | | | | 914,633 | | |
General and administrative
|
| | | | 2,453,772 | | | | | | 1,936,740 | | |
Total operating expenses
|
| | | | 10,590,486 | | | | | | 8,178,439 | | |
Loss from operations
|
| | | | (2,406,380) | | | | | | (3,880,089) | | |
Other income (expense), net | | | | | | | | | | | | | |
Interest expense
|
| | | | (2,096,795) | | | | | | (1,724,450) | | |
Change in fair value of derivative liability
|
| | | | (159,000) | | | | | | 551,000 | | |
Other income
|
| | | | 9,654 | | | | | | 168,859 | | |
Interest income
|
| | | | 437 | | | | | | 630 | | |
Other expense, net
|
| | | | (2,245,704) | | | | | | (1,003,961) | | |
Net loss before benefit from income taxes
|
| | | | (4,652,084) | | | | | | (4,884,050) | | |
Benefit from income taxes
|
| | | | — | | | | | | 157,000 | | |
Net loss
|
| | | $ | (4,652,084) | | | | | $ | (4,727,050) | | |
Net loss per share | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | (4.97) | | | | | $ | (5.05) | | |
Weighted average common shares outstanding | | | | | | | | | | | | | |
Basic and diluted
|
| | | | 936,213 | | | | | | 936,096 | | |
| | |
Series B
Convertible Preferred Stock |
| |
Series A-1
Convertible Preferred Stock |
| |
Series A
Convertible Preferred Stock |
| | |
Common Stock
|
| |
Treasury Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2019
|
| | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 935,651 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,322,779 | | | | | $ | (19,746,453) | | | | | $ | (18,423,752) | | |
Cumulative effect from adoption of ASC 606
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 68,000 | | | | | | 68,000 | | |
Issuance of common stock through exercise of stock options
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | 562 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,674 | | | | | | — | | | | | | 3,674 | | |
Share-based compensation
expense |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 360,379 | | | | | | — | | | | | | 360,379 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,727,050) | | | | | | (4,727,050) | | |
Balance at December 31, 2019
|
| | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 936,213 | | | | | $ | 94 | | | | | | 31,000 | | | | | | (172) | | | | | $ | 1,686,832 | | | | | $ | (24,405,503) | | | | | $ | (22,718,749) | | |
Share-based compensation
expense |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 92,866 | | | | | | — | | | | | | 92,866 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,652,084) | | | | | | (4,652,084) | | |
Balance at December 31, 2020
|
| | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 936,213 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,779,698 | | | | | $ | (29,057,587) | | | | | $ | (27,277,967) | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (4,652,084) | | | | | $ | (4,727,050) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Share-based compensation
|
| | | | 92,866 | | | | | | 360,379 | | |
Amortization of internally developed software
|
| | | | 774,929 | | | | | | 577,605 | | |
Depreciation and amortization of property and equipment
|
| | | | 44,758 | | | | | | 57,360 | | |
Bad debt expense
|
| | | | 108,096 | | | | | | — | | |
Amortization of discount and debt issuance costs on convertible notes
|
| | | | 143,435 | | | | | | 551,993 | | |
Change in fair value of derivative liability
|
| | | | 159,000 | | | | | | (551,000) | | |
Change in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable
|
| | | | (800,908) | | | | | | 192,253 | | |
Accounts receivable-unbilled
|
| | | | (198,185) | | | | | | (305,576) | | |
Prepaid expenses and other current assets
|
| | | | (226,374) | | | | | | 13,170 | | |
Tax credit receivable
|
| | | | 104,624 | | | | | | (157,000) | | |
Accounts payable
|
| | | | 1,054,638 | | | | | | 40,882 | | |
Accrued expenses
|
| | | | 282,142 | | | | | | 94,725 | | |
Accrued interest
|
| | | | 1,951,429 | | | | | | 1,172,359 | | |
Deferred revenue
|
| | | | 873,254 | | | | | | — | | |
Net cash used in operating activities
|
| | | | (288,380) | | | | | | (2,679,900) | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Purchase of property and equipment
|
| | | | (426) | | | | | | (28,183) | | |
Capitalization of internally developed software
|
| | | | (1,102,186) | | | | | | (1,447,062) | | |
Net cash used in investing activities
|
| | | | (1,102,612) | | | | | | (1,475,245) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Proceeds from issuance of bridge notes payable
|
| | | | 1,250,000 | | | | | | 3,075,000 | | |
Proceeds from issuance of note payable
|
| | | | 783,008 | | | | | | — | | |
Proceeds from exercise of stock options
|
| | | | — | | | | | | 3,674 | | |
Net cash provided by financing activities
|
| | | | 2,033,008 | | | | | | 3,078,674 | | |
Net increase (decrease) in cash
|
| | | | 642,016 | | | | | | (1,076,471) | | |
Cash at beginning of period
|
| | | | 53,893 | | | | | | 1,130,364 | | |
Cash at end of period
|
| | | $ | 695,909 | | | | | $ | 53,893 | | |
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | — | | | | | $ | — | | |
Income taxes paid
|
| | | $ | — | | | | | $ | — | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Debt issuance costs included in accrued expenses
|
| | | $ | — | | | | | $ | (3,862) | | |
Deferred offering costs included in accrued expenses
|
| | | $ | (57,420) | | | | | $ | — | | |
| | |
2020
|
| |
2019
|
| ||||||
Specimens – contracts with customers
|
| | | $ | 8,086,324 | | | | | $ | 4,215,002 | | |
Shipping and other
|
| | | | 97,782 | | | | | | 83,348 | | |
Revenue
|
| | | $ | 8,184,106 | | | | | $ | 4,298,350 | | |
| | |
2020
|
| |
2019
|
| ||||||
Shares issuable upon conversion of preferred stock
|
| | | | 1,291,012 | | | | | | 1,291,012 | | |
Shares issuable upon exercise of stock options
|
| | | | 251,847 | | | | | | 224,884 | | |
Shares issuable upon exercise of warrants to purchase common stock
|
| | | | 23,309 | | | | | | 23,309 | | |
| | |
2020
|
| |
2019
|
| ||||||
Website
|
| | | $ | 105,376 | | | | | $ | 105,376 | | |
Computer equipment and purchased software
|
| | | | 84,589 | | | | | | 84,481 | | |
Equipment
|
| | | | 35,449 | | | | | | 35,134 | | |
Furniture and fixtures
|
| | | | 87,184 | | | | | | 87,184 | | |
Leasehold improvements
|
| | | | 24,935 | | | | | | 24,935 | | |
Total property and equipment
|
| | | | 337,533 | | | | | | 337,110 | | |
Accumulated depreciation
|
| | | | (261,944) | | | | | | (217,189) | | |
Total property and equipment, net
|
| | | $ | 75,589 | | | | | $ | 119,921 | | |
| | |
Fair value at December 31, 2020
|
| |||||||||||||||||||||
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability
|
| | | $ | 2,373,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,373,000 | | |
Total liabilities
|
| | | $ | 2,373,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,373,000 | | |
| | |
Fair value at December 31, 2019
|
| |||||||||||||||||||||
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability
|
| | | $ | 2,214,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,214,000 | | |
Total liabilities
|
| | | $ | 2,214,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,214,000 | | |
| | |
2020
|
| |
2019
|
| ||||||
Balance, beginning of period
|
| | | $ | 2,214,000 | | | | | $ | 2,765,000 | | |
Loss (gain) included in earnings
|
| | | | 159,000 | | | | | | (551,000) | | |
Balance, end of period
|
| | | $ | 2,373,000 | | | | | $ | 2,214,000 | | |
Years Ended December 31,
|
| |
Operating Leases
|
| |||
2021
|
| | | $ | 161,062 | | |
2022
|
| | | | 163,158 | | |
2023
|
| | | | 165,254 | | |
2024
|
| | | | 27,601 | | |
Total
|
| | | $ | 517,075 | | |
| | |
2020
|
| |
2019
|
|
Assumptions: | | | | | | | |
Risk-free interest rate
|
| |
0.30% – 1.41%
|
| |
1.59% – 2.58%
|
|
Expected term (in years)
|
| |
5.32 – 6.14
|
| |
5.00 – 6.14
|
|
Expected volatility
|
| |
43.11% – 50.14%
|
| |
41.00% – 43.92%
|
|
Expected dividend yield
|
| |
—%
|
| |
—%
|
|
| | |
Options
Outstanding |
| |
Weighted Average
Exercise Price |
| |
Weighted Average
Remaining Contractual Term in Years |
| |||||||||
Balance at January 1, 2019
|
| | | | 90,799 | | | | | $ | 2.57 | | | | | | 8.78 | | |
Granted
|
| | | | 162,016 | | | | | $ | 1.13 | | | | | | | | |
Exercised
|
| | | | (562) | | | | | $ | 6.52 | | | | | | | | |
Cancelled/forfeited
|
| | | | (27,369) | | | | | $ | 6.09 | | | | | | | | |
Balance at December 31, 2019
|
| | | | 224,884 | | | | | $ | 1.08 | | | | | | 8.78 | | |
Granted
|
| | | | 43,259 | | | | | $ | 1.00 | | | | | | | | |
Exercised
|
| | | | — | | | | | $ | 1.00 | | | | | | | | |
Cancelled/forfeited
|
| | | | (16,296) | | | | | $ | 4.20 | | | | | | | | |
Balance at December 31, 2020
|
| | | | 251,847 | | | | | $ | 1.00 | | | | | | 8.06 | | |
Options exercisable at December 31, 2020
|
| | | | 180,716 | | | | | $ | 1.00 | | | | | | 7.85 | | |
| | |
2020
|
| |
2019
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Operating loss carryforwards
|
| | | $ | 6,600,000 | | | | | $ | 5,600,000 | | |
Other
|
| | | | 700,000 | | | | | | 1,000,000 | | |
Total deferred tax assets
|
| | | | 7,300,000 | | | | | | 6,600,000 | | |
Deferred tax liability: | | | | | | | | | | | | | |
Intangibles
|
| | | | (250,000) | | | | | | (150,000) | | |
Total deferred tax liabilities
|
| | | | (250,000) | | | | | | (150,000) | | |
Net deferred tax assets before valuation allowance
|
| | | | 7,050,000 | | | | | | 6,450,000 | | |
Valuation allowance
|
| | | | (7,050,000) | | | | | | (6,450,000) | | |
Net deferred tax asset
|
| | | $ | — | | | | | $ | — | | |
| | |
2020
|
| |
2019
|
| ||||||
Reconciliation to statutory rates
|
| | | | | | | | | | | | |
Expected federal income taxes benefit at statutory rates
|
| | | | (21)% | | | | | | (21)% | | |
Expected state tax benefit at statutory rates, net of federal benefit
|
| | | | (8) | | | | | | (8) | | |
Change in valuation allowance
|
| | | | 29 | | | | | | 29 | | |
Income tax expense (benefit)
|
| | | | —% | | | | | | —% | | |
| | |
March 31,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
(unaudited)
|
| | | | | | | |||
ASSETS
|
| | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 355,126 | | | | | $ | 695,909 | | |
Accounts receivable – unbilled
|
| | | | 1,079,734 | | | | | | 652,761 | | |
Accounts receivable, net of allowance for doubtful accounts of $128,748 and $108,096
at March 31, 2021 and December 31, 2020, respectively |
| | | | 580,196 | | | | | | 1,526,392 | | |
Due from factor
|
| | | | 495,735 | | | | | | — | | |
Prepaid expenses and other current assets
|
| | | | 428,084 | | | | | | 417,929 | | |
Tax credit receivable, current portion
|
| | | | 179,376 | | | | | | 179,376 | | |
Total current assets
|
| | | | 3,118,251 | | | | | | 3,472,367 | | |
Property and equipment, net
|
| | | | 64,459 | | | | | | 75,589 | | |
Internally developed software, net
|
| | | | 2,613,444 | | | | | | 2,634,139 | | |
Security deposits
|
| | | | 27,601 | | | | | | 27,601 | | |
Total assets
|
| | | $ | 5,823,755 | | | | | $ | 6,209,696 | | |
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND
STOCKHOLDERS’ DEFICIT |
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 2,091,562 | | | | | $ | 1,792,432 | | |
Accrued expenses
|
| | | | 1,119,322 | | | | | | 810,910 | | |
Accrued interest
|
| | | | 4,253,987 | | | | | | 3,696,944 | | |
Convertible notes payable, related parties, net of unamortized debt discount and debt issuance costs
|
| | | | 5,491,899 | | | | | | 5,490,811 | | |
Derivative liability for embedded conversion features on convertible notes payable
|
| | | | 2,527,000 | | | | | | 2,373,000 | | |
Bridge notes payable, net of debt discount and debt issuance costs
|
| | | | 4,185,172 | | | | | | 4,589,228 | | |
Bridge notes payable, related parties, net of debt discount
|
| | | | 1,735,094 | | | | | | 1,905,000 | | |
Derivative liability for embedded conversion feature on bridge notes payable and bridge notes, related parties
|
| | | | 3,662,000 | | | | | | — | | |
Note payable, current portion
|
| | | | — | | | | | | 604,109 | | |
Deferred revenue
|
| | | | 804,065 | | | | | | 873,254 | | |
Total current liabilities
|
| | | | 25,870,101 | | | | | | 22,135,688 | | |
Note payable, net of current portion
|
| | | | — | | | | | | 178,899 | | |
Total liabilities
|
| | | | 25,870,101 | | | | | | 22,314,587 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Series B convertible preferred stock, $0.0001 par value, 3,200,000 shares authorized, 572,465 shares issued and outstanding at March 31, 2021 and December 31, 2020 (preference in liquidation of $10,722,596)
|
| | | | 7,999,997 | | | | | | 7,999,997 | | |
Series A-1 convertible preferred stock, $0.0001 par value, 556,550 shares authorized, 100,365 issued and outstanding at March 31, 2021 and December 31, 2020 (preference in liquidation of $788,470)
|
| | | | 561,041 | | | | | | 561,041 | | |
Series A convertible preferred stock, $0.0001 par value, 3,427,871 shares authorized, 618,182 issued and outstanding at March 31, 2021 and December 31, 2020 (preference in liquidation of $3,974,448)
|
| | | | 2,612,038 | | | | | | 2,612,038 | | |
Total convertible preferred stock
|
| | | | 11,173,076 | | | | | | 11,173,076 | | |
Stockholders’ Deficit: | | | | | | | | | | | | | |
Common stock, $0.0001 par value, 16,000,000 shares authorized, 967,213 issued and 936,213 outstanding at March 31, 2021 and December 31, 2020
|
| | | | 94 | | | | | | 94 | | |
Additional paid-in capital
|
| | | | 1,801,734 | | | | | | 1,779,698 | | |
Treasury stock, 31,000 shares at March 31, 2021 and December 31, 2020, at cost
|
| | | | (172) | | | | | | (172) | | |
Accumulated deficit
|
| | | | (33,021,078) | | | | | | (29,057,587) | | |
Total stockholders’ deficit
|
| | | | (31,219,422) | | | | | | (27,277,967) | | |
Total liabilities, convertible preferred stock and stockholders’ deficit
|
| | | $ | 5,823,755 | | | | | $ | 6,209,696 | | |
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Revenue
|
| | | $ | 2,963,807 | | | | | $ | 1,711,660 | | |
Operating expenses: | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 1,623,651 | | | | | | 654,268 | | |
Technology
|
| | | | 409,951 | | | | | | 426,712 | | |
Sales and marketing
|
| | | | 529,387 | | | | | | 431,640 | | |
Supply development
|
| | | | 111,576 | | | | | | 114,605 | | |
Fulfillment
|
| | | | 269,096 | | | | | | 215,171 | | |
General and administrative
|
| | | | 962,790 | | | | | | 314,797 | | |
Total operating expenses
|
| | | | 3,906,451 | | | | | | 2,157,193 | | |
Loss from operations
|
| | | | (942,644) | | | | | | (445,533) | | |
Other income (expense), net | | | | | | | | | | | | | |
Interest expense
|
| | | | (853,147) | | | | | | (587,669) | | |
Change in fair value of derivative liability on convertible notes
|
| | | | (154,000) | | | | | | (605,000) | | |
Change in fair value of derivative liability on bridge notes and bridge notes, related parties
|
| | | | (48,000) | | | | | | — | | |
Loss on extinguishment of bridge notes and bridge notes, related parties
|
| | | | (2,750,171) | | | | | | — | | |
Gain on extinguishment of note payable
|
| | | | 788,156 | | | | | | — | | |
Other income
|
| | | | (3,732) | | | | | | — | | |
Interest income
|
| | | | 47 | | | | | | 223 | | |
Other expense, net
|
| | | | (3,020,847) | | | | | | (1,192,446) | | |
Net loss before benefit from income taxes
|
| | | | (3,963,491) | | | | | | (1,637,979) | | |
Benefit from income taxes
|
| | | | — | | | | | | — | | |
Net loss
|
| | | $ | (3,963,491) | | | | | $ | (1,637,979) | | |
Net loss per share | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | (4.23) | | | | | $ | (1.75) | | |
Weighted average common shares outstanding | | | | | | | | | | | | | |
Basic and diluted
|
| | | | 936,213 | | | | | | 936,213 | | |
| | |
Series B
Convertible Preferred Stock |
| |
Series A-1
Convertible Preferred Stock |
| |
Series A
Convertible Preferred Stock |
| | |
Common Stock
|
| |
Treasury Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020
|
| | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 935,651 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,686,832 | | | | | $ | (24,405,503) | | | | | $ | (22,718,749) | | |
Share-based compensation expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 22,045 | | | | | | — | | | | | | 22,045 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,637,979) | | | | | | (1,637,979) | | |
Balance at March 31, 2020 (unaudited)
|
| | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 935,651 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,708,877 | | | | | $ | (26,043,482) | | | | | $ | (24,334,683) | | |
Balance at January 1, 2021
|
| | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 936,213 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,779,698 | | | | | $ | (29,057,587) | | | | | $ | (27,277,967) | | |
Share-based compensation expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 22,036 | | | | | | — | | | | | | 22,036 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,963,491) | | | | | | (3,963,491) | | |
Balance at March 31, 2021 (unaudited)
|
| | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 936,213 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,801,734 | | | | | $ | (33,021,078) | | | | | $ | (31,219,422) | | |
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (3,963,491) | | | | | $ | (1,637,979) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Share-based compensation
|
| | | | 22,036 | | | | | | 22,045 | | |
Amortization of internally developed software
|
| | | | 235,229 | | | | | | 206,508 | | |
Depreciation of property and equipment
|
| | | | 11,130 | | | | | | 14,340 | | |
Bad debt expense
|
| | | | 20,652 | | | | | | — | | |
Amortization of discount and debt issuance costs on convertible notes
|
| | | | 1,088 | | | | | | 137,998 | | |
Amortization of discount on bridge notes
|
| | | | 289,867 | | | | | | — | | |
Change in fair value of derivative liabilities
|
| | | | 202,000 | | | | | | 605,000 | | |
Loss on extinguishment of bridge notes
|
| | | | 2,750,171 | | | | | | — | | |
Gain on extinguishment of note payable
|
| | | | (788,156) | | | | | | — | | |
Change in operating assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | 925,544 | | | | | | (566,465) | | |
Accounts receivable – unbilled
|
| | | | (426,973) | | | | | | (305,197) | | |
Due from factor
|
| | | | (495,735) | | | | | | — | | |
Prepaid expenses and other current assets
|
| | | | (10,155) | | | | | | (62,740) | | |
Accounts payable
|
| | | | 299,130 | | | | | | 110,414 | | |
Accrued expenses
|
| | | | 308,410 | | | | | | 163,843 | | |
Accrued interest
|
| | | | 562,193 | | | | | | 449,671 | | |
Deferred revenue
|
| | | | (69,189) | | | | | | 436,551 | | |
Net cash used in operating activities
|
| | | | (126,249) | | | | | | (426,011) | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Purchase of property and equipment
|
| | | | — | | | | | | (900) | | |
Capitalization of internally developed software
|
| | | | (214,534) | | | | | | (259,304) | | |
Net cash used in investing activities
|
| | | | (214,534) | | | | | | (260,204) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Proceeds from issuance of bridge notes payable
|
| | | | — | | | | | | 1,000,000 | | |
Net cash provided by financing activities
|
| | | | — | | | | | | 1,000,000 | | |
Net (decrease) increase in cash
|
| | | | (340,783) | | | | | | 313,785 | | |
Cash at beginning of period
|
| | | | 695,909 | | | | | | 53,893 | | |
Cash at end of period
|
| | | $ | 355,126 | | | | | $ | 367,678 | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Derivative liability for embedded conversion features on convertible notes
issued |
| | | $ | 3,614,000 | | | | | $ | — | | |
| | |
2021
|
| |
2020
|
| ||||||
Specimens – contracts with customers
|
| | | $ | 2,947,295 | | | | | $ | 1,701,343 | | |
Shipping and other
|
| | | | 16,512 | | | | | | 10,317 | | |
Revenue
|
| | | $ | 2,963,807 | | | | | $ | 1,711,660 | | |
| | |
2021
|
| |
2020
|
| ||||||
Shares issuable upon conversion of preferred stock
|
| | | | 1,291,012 | | | | | | 1,291,012 | | |
Shares issuable upon exercise of stock options
|
| | | | 265,102 | | | | | | 224,519 | | |
Shares issuable upon exercise of warrants to purchase common stock
|
| | | | 23,309 | | | | | | 23,309 | | |
| | |
March 31,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
(unaudited)
|
| | | | | | | |||
Website
|
| | | $ | 105,376 | | | | | $ | 105,376 | | |
Computer equipment and purchased software
|
| | | | 84,589 | | | | | | 84,589 | | |
Equipment
|
| | | | 35,449 | | | | | | 35,449 | | |
Furniture and fixtures
|
| | | | 87,184 | | | | | | 87,184 | | |
Leasehold improvements
|
| | | | 24,935 | | | | | | 24,935 | | |
Total property and equipment
|
| | | | 337,533 | | | | | | 337,533 | | |
Accumulated depreciation
|
| | | | (273,074) | | | | | | (261,944) | | |
Total property and equipment, net
|
| | | $ | 64,459 | | | | | $ | 75,589 | | |
| | |
Fair value at March 31, 2021
|
| |||||||||||||||||||||
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
| | |
(unaudited)
|
| |||||||||||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability on convertible notes payable, related parties
|
| | | $ | 2,527,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,527,000 | | |
Derivative liability on bridge notes payable and bridge notes payable, related parties
|
| | | | 3,662,000 | | | | | | — | | | | | | — | | | | | $ | 3,662,000 | | |
Total liabilities
|
| | | $ | 6,189,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,189,000 | | |
| | |
Fair value at December 31, 2020
|
| |||||||||||||||||||||
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability on convertible notes payable, related parties
|
| | | $ | 2,373,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,373,000 | | |
Total liabilities
|
| | | $ | 2,373,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,373,000 | | |
| | |
2021
|
| |
2020
|
| ||||||
| | |
(unaudited)
|
| |||||||||
Balance, beginning of period
|
| | | $ | 2,373,000 | | | | | $ | 2,214,000 | | |
Derivative liability on bridge notes payable and bridge notes payable, related parties
|
| | | | 3,614,000 | | | | | | — | | |
Loss included in earnings
|
| | | | 202,000 | | | | | | 605,000 | | |
Balance, end of period
|
| | | $ | 6,189,000 | | | | | $ | 2,819,000 | | |
Year Ending December 31,
|
| |
Operating
Leases |
| |||
2021 (remaining)
|
| | | $ | 121,058 | | |
2022
|
| | | | 163,158 | | |
2023
|
| | | | 165,254 | | |
2024
|
| | | | 27,601 | | |
Total
|
| | | $ | 477,071 | | |
| | |
2021
|
| |
2020
|
|
Assumptions: | | | | | | | |
Risk-free interest rate
|
| |
0.47% – 0.64%
|
| |
1.35% – 1.41%
|
|
Expected term (in years)
|
| |
5.81 – 5.85
|
| |
5.57 – 6.14
|
|
Expected volatility
|
| |
49.88% – 49.98%
|
| |
43.11% – 43.91%
|
|
Expected dividend yield
|
| |
—%
|
| |
—%
|
|
| | |
Options
Outstanding |
| |
Weighted Average
Exercise Price |
| |
Weighted Average
Remaining Contractual Term in Years |
| |||||||||
Balance at December 31, 2020
|
| | | | 251,847 | | | | | $ | 1.00 | | | | | | 8.06 | | |
Granted
|
| | | | 14,515 | | | | | $ | 1.00 | | | | | | | | |
Exercised
|
| | | | — | | | | | $ | 1.00 | | | | | | | | |
Cancelled/forfeited
|
| | | | (1,260) | | | | | $ | 1.00 | | | | | | | | |
Balance at March 31, 2021
|
| | | | 265,102 | | | | | $ | 1.00 | | | | | | 7.96 | | |
Options exercisable at March 31, 2021
|
| | | | 179,456 | | | | | $ | 1.00 | | | | | | 7.66 | | |