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Delaware
(State or other jurisdiction of
incorporation or organization) |
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2834
(Primary Standard Industrial
Classification Code Number) |
| |
85-0870387
(I.R.S. Employer
Identification No.) |
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|
Copies to:
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|
David S. Rosenthal, Esq.
Anna Tomczyk, Esq. Dechert LLP 1095 Avenue of the Americas New York, NY 10036 Telephone: (212) 698-3500 |
| |
Lance Brunson, Esq.
Brunson Chandler & Jones, PLLC 175 South Main Street, 15th Floor Salt Lake City, UT 84111 Telephone: 801-303-5737 |
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Large accelerated filer
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Accelerated filer
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Non-accelerated filer
☒
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Smaller reporting company
☒
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Emerging growth company
☒
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Page
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| | | | F-1 | | |
| | |
Year ended December 31,
|
| |
Three Months Ended March 31,
|
| ||||||||||||||||||
Statements of Operations Data
|
| |
2021
|
| |
2020
|
| |
2022
|
| |
2021
|
| ||||||||||||
| | | | | | | | | | | | | | |
(as restated)
|
| | | | | | | |||
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
General and administrative expense
|
| | | $ | 4,973,245 | | | | | $ | 4,629,070 | | | | | $ | 933,817 | | | | | $ | 1,286,992 | | |
Research and development expense
|
| | | | 2,224,555 | | | | | | 936,776 | | | | | | 1,070,704 | | | | | | 427,995 | | |
Loss from operations
|
| | | $ | 7,197,800 | | | | | $ | 5,565,846 | | | | | $ | 2,004,521 | | | | | $ | 1,714,947 | | |
Total other income (expense)
|
| | | | (3,031,171) | | | | | | (2,260,162) | | | | | $ | 3,867,983 | | | | | | (5,505,304) | | |
Net income (loss)
|
| | | $ | (10,228,971) | | | | | $ | (7,826,008) | | | | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Net income (loss) attributable to common stockholders, basic and diluted
|
| | | $ | (10,228,971) | | | | | $ | (9,297,872) | | | | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Basic weighted average number of shares outstanding
|
| | | | 6,666,005 | | | | | | 5,775,898 | | | | | | 6,913,492 | | | | | | 5,909,793 | | |
Diluted weighted average number of shares outstanding
|
| | | | 6,666,005 | | | | | | 5,775,898 | | | | | | 7,562,978 | | | | | | 5,909,793 | | |
Net income (loss) per share attributable to common stockholders, basic
|
| | | $ | (1.53) | | | | | $ | (1.61) | | | | | $ | 0.18 | | | | | $ | (1.22) | | |
Net income (loss) per share attributable to common stockholders, diluted
|
| | | $ | (1.53) | | | | | $ | (1.61) | | | | | $ | (0.05) | | | | | $ | (1.22) | | |
| | |
Actual
|
| |
Pro Forma(1)
|
| |
Pro Forma as Adjusted(2)
|
| |||||||||
Balance Sheet Data as of March 31, 2022
(unaudited) |
| | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 49,383 | | | | | $ | | | | | | $ | | | |
Total assets
|
| | | | 540,919 | | | | | | | | | | | | | | |
Working capital (deficit)(3)
|
| | | | (8,555,743) | | | | | | | | | | | | | | |
Preferred stock
|
| | | | 270 | | | | | | | | | | | | | | |
Common stock
|
| | | | 691 | | | | | | | | | | | | | | |
Additional paid-in capital
|
| | | | 9,009,619 | | | | | | | | | | | | | | |
Accumulated deficit
|
| | | | (17,074,787) | | | | | | | | | | | | | | |
Total stockholders’ deficit
|
| | | $ | (8,064,207) | | | | | | | | | | | | | | |
| | |
As of
March 31, 2022 (unaudited) |
| |||||||||||||||
| | |
Actual
|
| |
Pro Forma
|
| |
Pro
Forma as Adjusted |
| |||||||||
| | |
(in thousands, except share and per
share data) |
| |||||||||||||||
Cash
|
| | | $ | 49,383 | | | | | $ | | | | | $ | — | | | |
SAFE liability
|
| | | | 3,190,000 | | | | | | | | | | | | | | |
Warrant liability
|
| | | | 2,282,719 | | | | | | | | | | | | | | |
Stockholders’ equity (deficit): | | | | | | | | | | | | | | | | | | | |
Preferred Stock, 2,696,439 issued and outstanding at March 31, 2022;
aggregate liquidation preference of $2,808,148 as of March 31, 2022 (actual); none issued and outstanding (pro forma and pro forma adjusted) |
| | | | 270 | | | | | | — | | | | | | | | |
Common Stock, 6,913,492 shares issued and outstanding; shares issued and outstanding (pro forma); issued and outstanding (pro forma as adjusted)
|
| | | | 691 | | | | | | | | | | | | | | |
Additional paid in capital
|
| | | | 9,009,619 | | | | | | | | | | | | | | |
Accumulated deficit
|
| | | | (17,074,787) | | | | | | | | | | | | | | |
Total stockholders’ equity (deficit)
|
| | | | (8,064,207) | | | | | | | | | | | | | | |
Total capitalization
|
| | | $ | (8,064,207) | | | | | $ | | | | | $ | | | |
|
Assumed initial public offering price per share
|
| | | $ | | | |
|
Historical net tangible book value per share as of March 31, 2022
|
| | | $ | | | |
|
Pro forma increase in net tangible book value per share attributable to the Preferred Conversion
|
| | | $ | | | |
|
Pro forma net tangible book value per share as of March 31, 2022
|
| | | $ | | | |
|
Pro forma increase in net tangible book value per share attributable to new investors
|
| | | $ | | | |
|
Pro forma as adjusted net tangible book value per share after this offering
|
| | | $ | | | |
|
Dilution per share to new investors participating in this offering
|
| | | $ | | | |
| | |
Three Months Ended March 31,
|
| |||||||||
|
2022
|
| |
2021
|
| ||||||||
Operating expenses | | | | | | | | | | | | | |
General and administrative
|
| | | $ | 933,817 | | | | | $ | 1,286,992 | | |
Research and development
|
| | | | 1,070,704 | | | | | | 427,955 | | |
Total operating expenses
|
| | | | 2,004,521 | | | | | | 1,714,947 | | |
Loss from operations
|
| | | | (2,004,521) | | | | | | (1,714,947) | | |
Other income (expense), net
|
| | | | 3,867,983 | | | | | | (5,505,304) | | |
Net income (loss)
|
| | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Operating expenses | | | | | | | | | | | | | |
General and administrative
|
| | | $ | 4,973,245 | | | | | $ | 4,629,070 | | |
Research and development
|
| | | | 2,224,555 | | | | | | 936,776 | | |
Total operating expenses
|
| | | | 7,197,800 | | | | | | 5,565,846 | | |
Loss from operations
|
| | | | (7,197,800) | | | | | | (5,565,846) | | |
Other expense, net
|
| | | | (3,031,171) | | | | | | (2,260,162) | | |
Net loss
|
| | | $ | (10,228,971) | | | | | $ | (7,826,008) | | |
Outcome
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Suramin
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Placebo
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Instruments
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Factor or
behavior |
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Time after
Treatment (days) |
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Difference from
baseline (mean ± SD) |
| |
95% CI
|
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d(1)
|
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N
|
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P(2)
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P(3)
|
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Difference from
baseline (mean ± SD) |
| |
95% CI
|
| |
d(1)
|
| |
N
|
| |
P(2)
|
| |
p(3)
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Primary outcomes | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ADOS-2
|
| | Comparison | | | | | 45 | | | |
-1.6 ± 0.55
|
| |
-2.3 to -0.9
|
| | | | 2.9 | | | | | | 5 | | | | | | 0.0028 | | | | | | 0.038 | | | |
-0.4 ± 0.55
|
| |
-1.1 to + 0.28
|
| | | | 0.7 | | | | | | 5 | | | | | | 0.18 | | | | | | 0.16 | | |
| | | Raw | | | | | 45 | | | |
-4.6 ± 1.9
|
| |
-7.0. to -2.2
|
| | | | 2.4 | | | | | | 5 | | | | | | 0.0062 | | | | | | 0.039 | | | |
-0.4 ± 1.8
|
| |
-2.7 to +1.9
|
| | | | 0.22 | | | | | | 5 | | | | | | 0.65 | | | | | | 0.58 | | |
| | | Social | | | | | 45 | | | |
-3.2 ± 1.9
|
| |
-5.6 to -0.8
|
| | | | 2.4 | | | | | | 5 | | | | | | 0.020 | | | | | | 0.043 | | | |
0.0 ± 1.7
|
| |
-2.2 to +2.2
|
| | | | 0 | | | | | | 5 | | | | | | 0.99 | | | | | | 0.71 | | |
| | | Rest/Rep | | | | | 45 | | | |
-1.4 ± 0.89
|
| |
-2.5 to -0.29
|
| | | | 1.6 | | | | | | 5 | | | | | | 0.025 | | | | | | 0.059 | | | |
-0.4 ± 2.1
|
| |
-3.0 to +2.2
|
| | | | 0.19 | | | | | | 5 | | | | | | 0.69 | | | | | | 0.58 | | |
EOWPVT
|
| | Vocabulary | | | | | 45 | | | |
-4.2 ± -8.3
|
| |
-14.50 to +6.1
|
| | | | -0.51 | | | | | | 5 | | | | | | 0.32 | | | | | | 0.50 | | | |
+2.0 ± 4.6
|
| |
-3.8 to +7.8
|
| | | | 0.43 | | | | | | 5 | | | | | | 0.39 | | | | | | 0.50 | | |
Secondary Outcomes | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ABC
|
| | Stereotypy | | | | | 7 | | | |
36 ± 2.1
|
| |
-6.2 to -1.0
|
| | | | 1.7 | | | | | | 5 | | | | | | 0.018 | | | | | | 0.043 | | | |
+0.4 ± 1.9
|
| |
-2.0 to +2.5
|
| | | | -0.21 | | | | | | 5 | | | | | | 0.67 | | | | | | 0.68 | | |
| | | Stereotypy | | | | | 45 | | | |
-4.0 ± 2.3
|
| |
-6.9 to -1.1
|
| | | | 1.7 | | | | | | 5 | | | | | | 0.019 | | | | | | 0.042 | | | |
+1.0 ± 4.3
|
| |
4.3 to +6.3
|
| | | | -0.23 | | | | | | 5 | | | | | | 0.63 | | | | | | 0.69 | | |
ATEC
|
| | Total | | | | | 7 | | | |
-10 ± 7.7
|
| |
-20 to -0.46
|
| | | | 1.3 | | | | | | 5 | | | | | | 0.044 | | | | | | 0.043 | | | |
+7.2 ± 14
|
| |
-10 to +25
|
| | | | -0.51 | | | | | | 5 | | | | | | 0.32 | | | | | | 0.35 | | |
| | | Language | | | | | 7 | | | |
-2.2 ± 1.5
|
| |
-4.0 to -0.36
|
| | | | 1.4 | | | | | | 5 | | | | | | 0.021 | | | | | | 0.059 | | | |
0.0 ± 4.1
|
| |
-5.0 to +5.0
|
| | | | 0 | | | | | | 5 | | | | | | 0.99 | | | | | | 0.89 | | |
| | | Sociability | | | | | 7 | | | |
-3.6 ± 2.6
|
| |
-6.8 to -0.36
|
| | | | 1.4 | | | | | | 5 | | | | | | 0.025 | | | | | | 0.063 | | | |
-0.8 ± 2.8
|
| |
4.3 to +2.6
|
| | | | 0.29 | | | | | | 5 | | | | | | 0.55 | | | | | | 0.58 | | |
| | | Language | | | | | 45 | | | |
-2.0 ± 1.4
|
| |
-2.7 to -0.49
|
| | | | 1.4 | | | | | | 5 | | | | | | 0.034 | | | | | | 0.059 | | | |
-0.2 ± 2.9
|
| |
-3.8 to +3.4
|
| | | | 0.07 | | | | | | 5 | | | | | | 0.88 | | | | | | 0.79 | | |
CGI
|
| |
Overall ASD
|
| | | | 45 | | | |
-1.8 ± 1.04
|
| |
-3.4 to -0.15
|
| | | | 1.7 | | | | | | 5 | | | | | | 0.05 | | | | | | n/a | | | |
0.0 ± 0.34
|
| |
-0.55 to +0.55
|
| | | | 0 | | | | | | 5 | | | | | | 0.99 | | | | | | n/a | | |
| | |
E. Language
|
| | | | 45 | | | |
-2.0 ± 1.04
|
| |
-3.6 to -0.35
|
| | | | 1.9 | | | | | | 5 | | | | | | 0.01 | | | | | | n/a | | | |
0.0 ± 0.34
|
| |
-0.55 to +0.55
|
| | | | 0 | | | | | | 5 | | | | | | 0.99 | | | | | | n/a | | |
| | |
Social Inter.
|
| | | | 45 | | | |
-2.0 ± 1.04
|
| |
-3.6 to -0.35
|
| | | | 1.9 | | | | | | 5 | | | | | | 0.01 | | | | | | n/a | | | |
0.0 ± 0.34
|
| |
-0.55 to +0.55
|
| | | | 0 | | | | | | 5 | | | | | | 0.99 | | | | | | n/a | | |
RBQ
|
| | Total | | | | | 45 | | | |
-3.2 ± 5.8
|
| |
-10.4 to +4.0
|
| | | | 0.55 | | | | | | 5 | | | | | | 0.28 | | | | | | 0.22 | | | |
-0.8 ± 3.3
|
| |
-4.9 to 3.3
|
| | | | 0.24 | | | | | | 5 | | | | | | 0.62 | | | | | | 0.47 | | |
Name
|
| |
Age
|
| |
Position(s)
|
|
Howard J. Weisman | | |
62
|
| | Chief Executive Officer and Class III Director | |
Michael Derby | | |
49
|
| | Executive Chairman of the Board and Class II Director | |
Zachary Rome | | |
38
|
| | Chief Operating Officer and Class I Director | |
Karen LaRochelle | | |
55
|
| | Class II Director | |
John F. Coelho | | |
53
|
| | Class III Director | |
| | |
Annual Compensation
|
| | ||||||||||||||
Name and Principal Position
|
| |
Salary
|
| |
Bonus
|
| |
TOTAL
|
| |||||||||
Howard Weisman
Chief Executive Officer |
| | | $ | 400,000 | | | | | $ | 158,333 | | | | | $ | 558,333 | | |
Michael Derby
Executive Chairman |
| | | $ | 325,000 | | | | | $ | 81,250 | | | | | $ | 406,250 | | |
David Hough
Former Chief Medical Officer(1) |
| | | $ | 253,125 | | | | | $ | 74,375 | | | | | $ | 327,500 | | |
Name
|
| |
Fees Earned or
Paid in Cash ($) |
| |
All Other
Compensation ($) |
| |
Total
($) |
| |||||||||
Karen Dawes(1)
|
| | | | 52,250 | | | | | | — | | | | | | 52,250 | | |
Karen LaRochelle
|
| | | | 50,000 | | | | | | — | | | | | | 50,000 | | |
Paul Wotton(2)
|
| | | | 42,500 | | | | | | — | | | | | | 42,500 | | |
Robert F. Apple(3)
|
| | | | 65,000 | | | | | | — | | | | | | 65,000 | | |
Name of Beneficial Owner(1)
|
| |
Number of
Shares Beneficially Owned(2) |
| |
Percentage
Owned Prior to the Offering |
| |
Percentage
Owned After the Offering(3) |
| |||||||||
5% Stockholders | | | | | | | | | | | | | | | | | | | |
TardiMed Sciences, LLC(4)
|
| | | | 7,241,745 | | | | | | 86.4% | | | | | | % | | |
Blue Cane Partners, LLC(5)
|
| | | | 825,000 | | | | | | 10.7% | | | | | | % | | |
Directors and Executive Officers | | | | | | | | | | | | | | | | | | | |
Howard J. Weisman
|
| | | | — | | | | | | — | | | | | | % | | |
Michael Derby(6)
|
| | | | 7,241,745 | | | | | | 86.4% | | | | | | % | | |
Zachary Rome
|
| | | | — | | | | | | — | | | | | | % | | |
Karen LaRochelle
|
| | | | — | | | | | | — | | | | | | % | | |
John F. Coelho
|
| | | | — | | | | | | — | | | | | | % | | |
Directors and Executive Officers as a group (5 persons)
|
| | | | 7,241,745 | | | | | | 86.4% | | | | | | % | | |
Date Available for Sale
|
| |
Shares Eligible for Sale
|
| |
Description
|
|
Date of Prospectus | | | | | | Shares sold in the offering that are not subject to a lock-up | |
90 Days after Date of Prospectus | | | | | | Shares saleable under Rules 144 and 701 that are not subject to a lock-up | |
210 Days after Date of Prospectus | | | | | | Lock-up released; shares saleable under Rules 144 and 701 | |
Underwriter
|
| |
Number of
shares of common stock |
| | | | |||
Craft Capital Management LLC
|
| |
|
| | |||||
R.F. Lafferty & Co., Inc.
|
| | | | | | | | ||
Total:
|
| | | | | | |
| | |
Per Share of
Common Stock |
| |
Total without
Exercise of Over-allotment option |
| |
Total with
Exercise of Over-allotment option |
| |||||||||
Public offering price
|
| | | $ | | | | | $ | | | | | $ | | | |||
Underwriting discount(1)
|
| | | $ | | | | | $ | | | | | $ | | | |||
Net proceeds to us
|
| | | $ | | | | | $ | | | | | $ | | |
| | |
Page No.
|
| |||
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
| | | | F-23 | | | |
| | | | F-24 | | | |
| | | | F-25 | | | |
| | | | F-26 | | | |
| | | | F-27 | | |
| | |
December 31,
2021 |
| |
December 31,
2020 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 444,087 | | | | | $ | 1,123,625 | | |
Total current assets
|
| | | | 444,087 | | | | | | 1,123,625 | | |
Deferred offering costs
|
| | | | 204,779 | | | | | | — | | |
Total assets
|
| | | $ | 648,866 | | | | | $ | 1,123,625 | | |
LIABILITIES, AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 736,251 | | | | | $ | 346,094 | | |
Accounts payable – related party
|
| | | | 750 | | | | | | 102,803 | | |
Accrued expenses
|
| | | | 680,026 | | | | | | 578,524 | | |
Accrued interest
|
| | | | — | | | | | | 55,175 | | |
Notes payable, net of discount of $0 and $2,550,780
|
| | | | — | | | | | | 611,641 | | |
SAFE liability
|
| | | | 4,824,217 | | | | | | — | | |
Warrant liability
|
| | | | 4,516,485 | | | | | | 4,057,927 | | |
Total current liabilities
|
| | | | 10,757,729 | | | | | | 5,752,164 | | |
Total liabilities
|
| | | | 10,757,729 | | | | | | 5,752,164 | | |
Commitments and contingencies (Note 10) | | | | | | | | | | | | | |
Stockholders’ deficit | | | | | | | | | | | | | |
Preferred shares, par value $0.0001; 2,696,439 shares authorized; 2,696,439
shares issued and outstanding at December 31, 2021 and 2020, respectively; aggregate liquidation preference of $2,808,148 |
| | | | 270 | | | | | | 270 | | |
Common stock, par value $0.0001; 20,000,000 shares authorized at
December 31, 2021 and 2020; 6,913,492 and 5,775,898 shares issued and outstanding at December 31, 2021 and 2020, respectively |
| | | | 691 | | | | | | 578 | | |
Additional paid-in capital
|
| | | | 8,828,425 | | | | | | 4,079,891 | | |
Accumulated deficit
|
| | | | (18,938,249) | | | | | | (8,709,278) | | |
Total stockholders’ deficit
|
| | | | (10,108,863) | | | | | | (4,628,539) | | |
Total liabilities, and stockholders’ deficit
|
| | | $ | 648,866 | | | | | $ | 1,123,625 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Operating expenses | | | | | | | | | | | | | |
General and administrative
|
| | | $ | 4,973,245 | | | | | $ | 4,629,070 | | |
Research and development
|
| | | | 2,224,555 | | | | | | 936,776 | | |
Total operating expenses
|
| | | | 7,197,800 | | | | | | 5,565,846 | | |
Loss from operations
|
| | | | (7,197,800) | | | | | | (5,565,846) | | |
Other income (expense): | | | | | | | | | | | | | |
Interest expense
|
| | | | (2,805,856) | | | | | | (609,458) | | |
Loss on issuance of debt
|
| | | | — | | | | | | (53,541) | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | (23,284) | | |
Gain on conversion of notes
|
| | | | 59,890 | | | | | | — | | |
Change in fair value of SAFE
|
| | | | 175,783 | | | | | | — | | |
Change in fair value warrant liability
|
| | | | (458,558) | | | | | | (1,569,383) | | |
Change in fair value of derivative
|
| | | | — | | | | | | (4,496) | | |
Other income
|
| | | | 2,665 | | | | | | — | | |
Other expense
|
| | | | (5,095) | | | | | | — | | |
Total other expense
|
| | | | (3,031,171) | | | | | | (2,260,162) | | |
Net loss
|
| | | $ | (10,228,971) | | | | | $ | (7,826,008) | | |
Less: Accrued preferred unit and stock dividend
|
| | | | — | | | | | | (19,442) | | |
Less: Deemed dividend – beneficial conversion feature on preferred stock
|
| | | | — | | | | | | (1,452,422) | | |
Net loss attributable to common stockholders
|
| | | $ | (10,228,971) | | | | | $ | (9,297,872) | | |
Basic and diluted weighted average number of shares outstanding
|
| | | | 6,666,005 | | | | | | 5,775,898 | | |
Basic and diluted net loss per share attributable to common stockholders
|
| | | $ | (1.53) | | | | | $ | (1.61) | | |
| | |
Preferred Units
|
| | |
Preferred Stock
|
| |
Common Units
|
| |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Units
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| |
Units
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019
|
| | | | 1,516,041 | | | | | $ | 765,527 | | | | | |
|
—
|
| | | |
|
—
|
| | | | | 5,775,898 | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | (863,828) | | | | | $ | (863,828) | | |
Contribution from
TardiMed |
| | | | 940,000 | | | | | | 470,000 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Investor contributions
|
| | | | 100,000 | | | | | | 50,000 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Non-cash contribution from TardiMed
|
| | | | 72,428 | | | | | | 36,214 | | | | | | | 29,086 | | | | | | 3 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 14,540 | | | | | | — | | | | | | 14,543 | | |
Conversion of preferred units to preferred stock
|
| | | | (2,667,353) | | | | | | (1,341,183) | | | | | | | 2,667,353 | | | | | | 267 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,340,916 | | | | | | — | | | | | | 1,341,183 | | |
Conversion of common units to common stock
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (5,775,898) | | | | | | — | | | | | | 5,775,898 | | | | | | 578 | | | | | | (578) | | | | | | — | | | | | | — | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,262,093 | | | | | | — | | | | | | 2,262,093 | | |
Accrued preferred unit and stock dividend
|
| | | | 38,884 | | | | | | 19,442 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (19,442) | | | | | | (19,442) | | |
Beneficial conversion feature in
connection with notes payable |
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 462,920 | | | | | | — | | | | | | 462,920 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,826,008) | | | | | | (7,826,008) | | |
Balance at December 31, 2020
|
| | | | — | | | | | | — | | | | | | | 2,696,439 | | | | | $ | 270 | | | | | | — | | | | | $ | — | | | | | | 5,775,898 | | | | | $ | 578 | | | | | $ | 4,079,891 | | | | | $ | (8,709,278) | | | | | $ | (4,628,539) | | |
Common stock issued in
connection with conversion of notes payable |
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,137,594 | | | | | | 113 | | | | | | 3,412,669 | | | | | | — | | | | | | 3,412,782 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,335,865 | | | | | | — | | | | | | 1,335,865 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (10,228,971) | | | | | | (10,228,971) | | |
Balance at December 31, 2021
|
| | | | — | | | | | $ | — | | | | | | | 2,696,439 | | | | | $ | 270 | | | | | | — | | | | | $ | — | | | | | | 6,913,492 | | | | | $ | 691 | | | | | $ | 8,828,425 | | | | | $ | (18,938,249) | | | | | $ | (10,108,863) | | |
| | |
Years ended December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net loss
|
| | | $ | (10,228,971) | | | | | $ | (7,826,008) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Stock-based compensation
|
| | | | 1,335,865 | | | | | | 2,262,093 | | |
Amortization of debt discount
|
| | | | 2,550,780 | | | | | | 551,752 | | |
Loss on issuance of debt
|
| | | | — | | | | | | 53,541 | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | 23,284 | | |
Change in fair value of SAFE
|
| | | | (175,783) | | | | | | — | | |
Gain on conversion of notes
|
| | | | (59,890) | | | | | | — | | |
Change in fair value warrant liability
|
| | | | 458,558 | | | | | | 1,569,383 | | |
Change in fair value of derivative
|
| | | | — | | | | | | 4,496 | | |
Non-cash interest expense
|
| | | | 255,076 | | | | | | — | | |
Non-cash contribution from TardiMed
|
| | | | — | | | | | | 50,757 | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | |
Accounts payable
|
| | | | 352,277 | | | | | | 305,071 | | |
Accounts payable – related party
|
| | | | (102,053) | | | | | | 87,478 | | |
Accrued expenses
|
| | | | 101,502 | | | | | | 511,624 | | |
Accrued interest
|
| | | | — | | | | | | 57,707 | | |
Net cash used in operating activities
|
| | | | (5,512,639) | | | | | | (2,348,822) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Proceeds from SAFE investment
|
| | | | 5,000,000 | | | | | | — | | |
Payment of deferred offering costs
|
| | | | (166,899) | | | | | | — | | |
Contribution from TardiMed
|
| | | | — | | | | | | 470,000 | | |
Proceeds from notes payable
|
| | | | — | | | | | | 2,927,500 | | |
Third party investor contributions
|
| | | | — | | | | | | 50,000 | | |
Net cash provided by financing activities
|
| | | | 4,833,101 | | | | | | 3,447,500 | | |
Net (decrease) increase in cash
|
| | | | (679,538) | | | | | | 1,098,678 | | |
Cash, beginning of year
|
| | | | 1,123,625 | | | | | | 24,947 | | |
Cash, end of year
|
| | | $ | 444,087 | | | | | $ | 1,123,625 | | |
Non-cash financing activities: | | | | | | | | | | | | | |
Common stock issued in connection with conversion of notes payable
|
| | | $ | 3,412,782 | | | | | $ | — | | |
Unpaid offering costs
|
| | | $ | 37,880 | | | | | $ | — | | |
Deemed dividend – beneficial conversion feature on preferred stock
|
| | | $ | — | | | | | $ | 1,452,422 | | |
Conversion of preferred units to preferred stock
|
| | | $ | — | | | | | $ | 1,341,183 | | |
Beneficial conversion feature in connection with notes payable
|
| | | $ | — | | | | | $ | 462,920 | | |
Accrued preferred unit and stock dividend
|
| | | $ | — | | | | | $ | 19,442 | | |
| | |
December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Preferred stock
|
| | | | 1,557,435 | | | | | | 1,557,435 | | |
Unvested restricted stock units
|
| | | | — | | | | | | 1,377,999 | | |
Common stock warrants
|
| | | | 1,034,176 | | | | | | 1,034,176 | | |
Convertible notes
|
| | | | — | | | | | | 1,034,177 | | |
SAFE investment(1)
|
| | | | 414,808 | | | | | | — | | |
Total
|
| | | | 3,006,419 | | | | | | 5,003,787 | | |
| | |
Year Ended
December 31, 2021 |
|
Dividend yield
|
| |
—
|
|
Expected price volatility
|
| |
50.0%
|
|
Risk free interest rate
|
| |
0.06% – 0.07%
|
|
Expected term (in years)
|
| |
1.0 – 5.0
|
|
| | |
Years Ended December 31,
|
| |||
| | |
2021
|
| |
2020
|
|
Dividend yield
|
| |
—
|
| |
—
|
|
Expected price volatility
|
| |
76.8% – 112.1%
|
| |
108.7% – 114.4%
|
|
Risk free interest rate
|
| |
0.05% – 1.09%
|
| |
0.10% – 0.38%
|
|
Expected term (in years)
|
| |
1.0 – 5.0
|
| |
1.0 – 5.0
|
|
| | |
Year Ended
December 31, 2020 |
|
Contingent interest rate
|
| |
15.0%
|
|
Interest rate
|
| |
10.0%
|
|
Expected term
|
| |
0.8 – 1.0
|
|
| | |
Fair value measured at December 31, 2021
|
| |||||||||||||||||||||
| | |
Total carrying
value at December 31, 2021 |
| |
Quoted prices in
active markets (Level 1) |
| |
Significant other
observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
SAFE liability
|
| | | $ | 4,824,217 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,824,217 | | |
Warrant liability
|
| | | $ | 4,516,485 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,516,485 | | |
| | |
Fair value measured at December 31, 2020
|
| |||||||||||||||||||||
| | |
Total carrying
value at December 31, 2020 |
| |
Quoted prices in
active markets (Level 1) |
| |
Significant other
observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Warrant liability
|
| | | $ | 4,057,927 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,057,927 | | |
Contingent Interest
|
| | | $ | 59,890 | | | | | $ | — | | | | | $ | — | | | | | $ | 59,890 | | |
| | |
SAFE Liability
|
| |
Warrant Liability
|
| |
Contingent Interest
|
| |||||||||
Balance at December 31, 2019
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of warrants in connection with convertible notes
|
| | | | — | | | | | | 2,488,544 | | | | | | — | | |
Contingent interest in connection with notes payable
|
| | | | — | | | | | | — | | | | | | 55,394 | | |
Change in fair value
|
| | | | — | | | | | | 1,569,383 | | | | | | 4,496 | | |
Balance at December 31, 2020
|
| | | $ | — | | | | | $ | 4,057,927 | | | | | $ | 59,890 | | |
Gain on conversion of notes
|
| | | | — | | | | | | — | | | | | | (59,890) | | |
Issuance of SAFE
|
| | | | 5,000,000 | | | | | | — | | | | | | — | | |
Change in fair value
|
| | | | (175,783) | | | | | | 458,558 | | | | | | — | | |
Balance at December 31, 2021
|
| | | $ | 4,824,217 | | | | | $ | 4,516,485 | | | | | $ | — | | |
| | |
December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Accrued expenses: | | | | | | | | | | | | | |
Employee and related expenses
|
| | | $ | 680,026 | | | | | $ | 499,752 | | |
Research and development
|
| | | | — | | | | | | 4,000 | | |
Professional fees
|
| | | | — | | | | | | 74,772 | | |
Total accrued expenses
|
| | | $ | 680,026 | | | | | $ | 578,524 | | |
Issuance date
|
| |
Principal
Balance |
| |
Contingent
Interest |
| |
Unamortized
Debt Discount |
| |
Notes
Payable as of December 31, 2020 |
| ||||||||||||
October 26, 2020
|
| | | $ | 2,250,000 | | | | | $ | 43,445 | | | | | $ | (1,843,151) | | | | | $ | 450,295 | | |
October 29, 2020
|
| | | | 750,000 | | | | | | 14,470 | | | | | | (620,548) | | | | | | 143,922 | | |
November 6, 2020
|
| | | | 102,532 | | | | | | 1,974 | | | | | | (87,082) | | | | | | 17,424 | | |
| | | | $ | 3,102,532 | | | | | $ | 59,890 | | | | | $ | (2,550,780) | | | | | $ | 611,641 | | |
|
Principal value of convertible notes
|
| | | $ | 3,102,532 | | |
|
Original issue discount
|
| | | | (172,500) | | |
|
Discount resulting from allocation of proceeds to warrant liability
|
| | | | (2,488,544) | | |
|
Discount resulting from beneficial conversion feature
|
| | | | (462,920) | | |
|
Amortization of discount
|
| | | | 551,752 | | |
|
Loss on issuance of debt
|
| | | | 53,541 | | |
|
Loss on extinguishment of debt
|
| | | | 23,284 | | |
|
Change in fair value of derivative
|
| | | | 4,496 | | |
|
Net carrying value of senior secured convertible notes
|
| | | $ | 611,641 | | |
| | |
Number of Shares
|
| |
Weighted Average
Grant-Date Fair Value |
| ||||||
Unvested as of January 1, 2020
|
| | | | — | | | | | $ | — | | |
Granted
|
| | | | 1,377,999 | | | | | $ | 8.98 | | |
Unvested as of December 31, 2020
|
| | | | 1,377,999 | | | | | $ | 8.98 | | |
Forfeited
|
| | | | (1,377,999) | | | | | $ | 8.98 | | |
Unvested as of December 31, 2021
|
| | | | — | | | | | $ | — | | |
| | |
Current
|
| |
Deferred
|
| |
Total
|
| |||||||||
Federal
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
State
|
| | | | — | | | | | | — | | | | | | — | | |
Foreign
|
| | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | |
As of December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Net operating loss carryforwards
|
| | | $ | 2,030 | | | | | $ | 797 | | |
Research & development credits
|
| | | | 11 | | | | | | 11 | | |
Accrued expenses
|
| | | | 166 | | | | | | 144 | | |
Equity based compensation
|
| | | | — | | | | | | 591 | | |
Other temporary differences
|
| | | | — | | | | | | 20 | | |
Gross deferred tax assets
|
| | | | 2,207 | | | | | | 1,563 | | |
Valuation allowance
|
| | | | (2,207) | | | | | | (1,563) | | |
Net deferred tax asset
|
| | | $ | — | | | | | $ | — | | |
| | |
For the years ended December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Tax provision at statutory rate
|
| | | | 21.0% | | | | | | 21.0% | | |
State taxes, net of federal benefit
|
| | | | 3.7% | | | | | | 3.9% | | |
Share based compensation
|
| | | | (9.2)% | | | | | | —% | | |
Debt conversion
|
| | | | (6.7)% | | | | | | —% | | |
Permanent items
|
| | | | 0.4% | | | | | | —% | | |
Other
|
| | | | —% | | | | | | (0.7)% | | |
Warrant liability
|
| | | | (0.9)% | | | | | | (4.2)% | | |
Change in valuation reserve
|
| | | | (8.3)% | | | | | | (20.0)% | | |
Income taxes provision (benefit)
|
| | | | —% | | | | | | —% | | |
| | |
March 31
2022 |
| |
December 31,
2021 |
| ||||||
| | |
(Unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 49,383 | | | | | $ | 444,087 | | |
Total current assets
|
| | | | 49,383 | | | | | | 444,087 | | |
Deferred offering costs
|
| | | | 466,436 | | | | | | 204,779 | | |
Deferred financing costs
|
| | | | 25,100 | | | | | | — | | |
Total assets
|
| | | $ | 540,919 | | | | | $ | 648,866 | | |
LIABILITIES, AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 2,157,462 | | | | | $ | 736,251 | | |
Accounts payable – related party
|
| | | | 98,250 | | | | | | 750 | | |
Accrued expenses
|
| | | | 876,695 | | | | | | 680,026 | | |
SAFE liability
|
| | | | 3,190,000 | | | | | | 4,824,217 | | |
Warrant liability
|
| | | | 2,282,719 | | | | | | 4,516,485 | | |
Total current liabilities
|
| | | | 8,605,126 | | | | | | 10,757,729 | | |
Total liabilities
|
| | | | 8,605,126 | | | | | | 10,757,729 | | |
Commitments and contingencies (Note 7) | | | | | | | | | | | | | |
Stockholders’ deficit | | | | | | | | | | | | | |
Preferred shares, par value $0.0001; 2,696,439 shares authorized; 2,696,439 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively; aggregate liquidation preference of $2,808,148
|
| | | | 270 | | | | | | 270 | | |
Common stock, par value $0.0001; 20,000,000 shares authorized at March 31, 2022 and December 31, 2021; 6,913,492 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively
|
| | | | 691 | | | | | | 691 | | |
Additional paid-in capital
|
| | | | 9,009,619 | | | | | | 8,828,425 | | |
Accumulated deficit
|
| | | | (17,074,787) | | | | | | (18,938,249) | | |
Total stockholders’ deficit
|
| | | | (8,064,207) | | | | | | (10,108,863) | | |
Total liabilities, and stockholders’ deficit
|
| | | $ | 540,919 | | | | | $ | 648,866 | | |
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Operating expenses | | | | | | | | | | | | | |
General and administrative
|
| | | $ | 933,817 | | | | | $ | 1,286,992 | | |
Research and development
|
| | | | 1,070,704 | | | | | | 427,955 | | |
Total operating expenses
|
| | | | 2,004,521 | | | | | | 1,714,947 | | |
Loss from operations
|
| | | | (2,004,521) | | | | | | (1,714,947) | | |
Other income (expense): | | | | | | | | | | | | | |
Interest expense
|
| | | | — | | | | | | (2,805,856) | | |
Gain on conversion of notes
|
| | | | — | | | | | | 59,890 | | |
Change in fair value of SAFE
|
| | | | 1,634,217 | | | | | | (2,305,967) | | |
Change in fair value warrant liability
|
| | | | 2,233,766 | | | | | | (453,371) | | |
Total other income (expense)
|
| | | | 3,867,983 | | | | | | (5,505,304) | | |
Net income (loss)
|
| | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Basic weighted average number of shares outstanding
|
| | | | 6,913,492 | | | | | | 5,909,793 | | |
Diluted weighted average number of shares outstanding (as restated)
|
| | | | 7,562,978 | | | | | | 5,909,793 | | |
Basic net income (loss) per share (as restated)
|
| | | $ | 0.18 | | | | | $ | (1.22) | | |
Diluted net income (loss) per share (as restated)
|
| | | $ | (0.05) | | | | | $ | (1.22) | | |
| | |
Preferred Stock
|
| |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance at January 1, 2022
|
| | | | 2,696,439 | | | | | $ | 270 | | | | | | 6,913,492 | | | | | $ | 691 | | | | | $ | 8,828,425 | | | | | $ | (18,938,249) | | | | | $ | (10,108,863) | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 181,194 | | | | | | — | | | | | | 181,194 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,863,462 | | | | | | 1,863,462 | | |
Balance at March 31, 2022
|
| | | | 2,696,439 | | | | | $ | 270 | | | | | | 6,913,492 | | | | | $ | 691 | | | | | $ | 9,009,619 | | | | | $ | (17,074,787) | | | | | $ | (8,064,207) | | |
| | |
Preferred Stock
|
| |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance at January 1, 2021
|
| | | | 2,696,439 | | | | | $ | 270 | | | | | | 5,775,898 | | | | | $ | 578 | | | | | $ | 4,079,891 | | | | | $ | (8,709,278) | | | | | $ | (4,628,539) | | |
Common stock issued in connection with conversion of notes payable
|
| | | | — | | | | | | — | | | | | | 1,137,594 | | | | | | 113 | | | | | | 3,412,669 | | | | | | — | | | | | | 3,412,782 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 511,316 | | | | | | — | | | | | | 511,316 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,220,251) | | | | | | (7,220,251) | | |
Balance at March 31, 2021
|
| | | | 2,696,439 | | | | | $ | 270 | | | | | | 6,913,492 | | | | | $ | 691 | | | | | $ | 8,003,876 | | | | | $ | (15,929,529) | | | | | $ | (7,924,692) | | |
| | |
Three months ended March 31,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
| | | | | | | | | | | | |
Stock-based compensation
|
| | | | 181,194 | | | | | | 511,316 | | |
Amortization of debt discount
|
| | | | — | | | | | | 2,550,780 | | |
Change in fair value of SAFE
|
| | | | (1,634,217) | | | | | | 2,305,967 | | |
Gain on conversion of notes
|
| | | | — | | | | | | (59,890) | | |
Change in fair value warrant liability
|
| | | | (2,233,766) | | | | | | 453,371 | | |
Non-cash interest expense
|
| | | | — | | | | | | 255,076 | | |
Changes in assets and liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | | 1,134,454 | | | | | | 155,332 | | |
Accounts payable – related party
|
| | | | 97,500 | | | | | | (100,138) | | |
Accrued expenses
|
| | | | 196,669 | | | | | | 364,119 | | |
Net cash used in operating activities
|
| | | | (394,704) | | | | | | (784,318) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Proceeds from SAFE investment
|
| | | | — | | | | | | 5,000,000 | | |
Net cash provided by financing activities
|
| | | | — | | | | | | 5,000,000 | | |
Net (decrease) increase in cash
|
| | | | (394,704) | | | | | | 4,215,682 | | |
Cash, beginning of period
|
| | | | 444,087 | | | | | | 1,123,625 | | |
Cash, end of period
|
| | | $ | 49,383 | | | | | $ | 5,339,307 | | |
Non-cash financing activities: | | | | | | | | | | | | | |
Common stock issued in connection with conversion of notes payable
|
| | | $ | — | | | | | $ | 3,412,782 | | |
Unpaid offering costs
|
| | | $ | 261,657 | | | | | $ | 58,664 | | |
Unpaid financing fees
|
| | | $ | 25,100 | | | | | $ | — | | |
| | |
Three months ended March 31, 2022
|
| |||||||||||||||
| | |
As Previously
Reported |
| |
Adjustment
|
| |
As Restated
|
| |||||||||
Numerator: | | | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 1,863,462 | | | | | $ | — | | | | | $ | 1,863,462 | | |
Amount allocated to participating common shareholders
|
| | | | (361,902) | | | | | | (242,025) | | | | | | (603,927) | | |
Net income (loss) allocate to common shareholders — Basic (as restated)
|
| | | $ | 1,501,560 | | | | | $ | (242,025) | | | | | $ | 1,259,535 | | |
Net income (loss)
|
| | | $ | 1,863,462 | | | | | $ | — | | | | | $ | 1,863,462 | | |
Less: Change in fair value of warrant liabilities
|
| | | | — | | | | | | (2,233,766) | | | | | | (2,233,766) | | |
Net income (loss) allocate to common shareholders — Diluted (as restated)
|
| | | $ | 1,863,462 | | | | | $ | (2,233,766) | | | | | $ | (370,304) | | |
Denominator: | | | | | | | | | | | | | | | | | | | |
Basic weighted average number of shares outstanding
|
| | | | 6,913,492 | | | | | | — | | | | | | 6,913,492 | | |
Add: | | | | | | | | | | | | | | | | | | | |
Warrants
|
| | | | 649,486 | | | | | | — | | | | | | 649,486 | | |
Conversion of preferred stock
|
| | | | 1,557,435 | | | | | | (1,557,435) | | | | | | — | | |
Diluted weighted average number of shares outstanding (as restated)
|
| | | | 9,120,413 | | | | | | (1,557,435) | | | | | | 7,562,978 | | |
Basic net income (loss) per share (as restated)
|
| | | $ | 0.22 | | | | | $ | (0.04) | | | | | $ | 0.18 | | |
Diluted net income (loss) per share (as restated)
|
| | | $ | 0.16 | | | | | $ | (0.21) | | | | | $ | (0.05) | | |
| | |
Three months ended March 31,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Numerator: | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Amount allocated to participating common shareholders
|
| | | | (603,927) | | | | | | — | | |
Net income (loss) allocated to common shareholders — Basic (as restated)
|
| | | $ | 1,259,535 | | | | | $ | (7,220,251) | | |
Net income (loss)
|
| | | $ | 1,863,462 | | | | | $ | (7,220,251) | | |
Less: Change in fair value of warrant liabilities
|
| | | | (2,233,766) | | | | | $ | — | | |
Net income (loss) allocate to common shareholders — Diluted (as restated)
|
| | | $ | (370,304) | | | | | $ | (7,220,251) | | |
Denominator: | | | | | | | | | | | | | |
Basic weighted average number of shares outstanding
|
| | | | 6,913,492 | | | | | | 5,909,793 | | |
Add: | | | | | | | | | | | | | |
Warrants
|
| | | | 649,486 | | | | | | — | | |
Diluted weighted average number of shares outstanding (as restated)
|
| | | | 7,562,978 | | | | | | 5,909,793 | | |
Basic net income (loss) per share (as restated)
|
| | | $ | 0.18 | | | | | $ | (1.22) | | |
Diluted net income (loss) per share (as restated)
|
| | | $ | (0.05) | | | | | $ | (1.22) | | |
| | |
March 31,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Preferred stock
|
| | | | 1,557,435 | | | | | | 1,557,435 | | |
Unvested restricted stock units
|
| | | | 1,342,666 | | | | | | 1,377,999 | | |
Common stock warrants
|
| | | | — | | | | | | 1,034,176 | | |
SAFE investment(1)
|
| | | | 414,808 | | | | | | 641,437 | | |
Total
|
| | | | 3,314,909 | | | | | | 4,611,047 | | |
| | |
Three months ended March 31,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Dividend yield
|
| | | | 0% | | | | | | 0% | | |
Expected price volatility
|
| | | | 50.0% | | | | | | 50.0% | | |
Risk free interest rate
|
| | | | 1.35% | | | | | | 0.09% | | |
Expected term (in years)
|
| | | | 0.8 | | | | | | 1.3 | | |
| | |
Three months ended March 31,
|
| |||
| | |
2022
|
| |
2021
|
|
Dividend yield
|
| |
0%
|
| |
0%
|
|
Expected price volatility
|
| |
95.9 – 105.0%
|
| |
104.0 – 112.1%
|
|
Risk free interest rate
|
| |
0.69% – 2.44%
|
| |
0.06% – 0.81%
|
|
Expected term (in years)
|
| |
0.3 – 4
|
| |
1 – 5
|
|
| | |
Fair value measured at March 31, 2022
|
| |||||||||||||||||||||
| | |
Total carrying
value at March 31, 2022 |
| |
Quoted prices in
active markets (Level 1) |
| |
Significant other
observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
SAFE liability
|
| | | $ | 3,190,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,190,000 | | |
Warrant liability
|
| | | $ | 2,282,719 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,282,719 | | |
| | |
Fair value measured at December 31, 2021
|
| |||||||||||||||||||||
| | |
Total carrying
value at December 31, 2021 |
| |
Quoted prices in
active markets (Level 1) |
| |
Significant other
observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
SAFE liability
|
| | | $ | 4,824,217 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,824,217 | | |
Warrant liability
|
| | | $ | 4,516,485 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,516,485 | | |
| | |
SAFE Liability
|
| |
Warrant Liability
|
| ||||||
Balance at December 31, 2021
|
| | | $ | 4,824,217 | | | | | $ | 4,516,485 | | |
Change in fair value
|
| | | | (1,634,217) | | | | | | (2,233,766) | | |
Balance at March 31, 2022
|
| | | $ | 3,190,000 | | | | | $ | 2,282,719 | | |
| | |
March 31,
2022 |
| |
December 31,
2021 |
| ||||||
| | |
(Unaudited)
|
| | | | | | | |||
Employee and related expenses
|
| | | $ | 815,691 | | | | | $ | 680,026 | | |
Professional fees
|
| | | | 56,104 | | | | | | — | | |
Research and development
|
| | | | 4,900 | | | | | | — | | |
Total accrued expenses
|
| | | $ | 876,695 | | | | | $ | 680,026 | | |
| | |
Number of
Shares |
| |
Weighted Average
Grant-Date Fair Value |
| ||||||
Unvested as of December 31, 2021
|
| | | | — | | | | | $ | — | | |
Granted
|
| | | | 1,342,666 | | | | | $ | 10.87 | | |
Unvested as of March 31, 2022
|
| | | | 1,342,666 | | | | | $ | 10.87 | | |
|
SEC Filing Fee
|
| | | $ | 2,666 | | |
|
FINRA Fee
|
| | | $ | 4,813 | | |
|
Underwriter Legal Fees and Expenses
|
| | | $ | | | |
|
Nasdaq Fee
|
| | | $ | | | |
|
Printing Expenses
|
| | | $ | | | |
|
Accounting Fees and Expenses
|
| | | $ | | | |
|
Legal Fees and Expenses
|
| | | $ | | | |
|
Transfer Agent and Registrar Expenses
|
| | | $ | | | |
|
Miscellaneous
|
| | | $ | | | |
|
Total
|
| | | $ | | | |
| | | | PAXMEDICA, INC. | |
| | | |
/s/ Howard J. Weisman
Howard J. Weisman
|
|
| | | | Chief Executive Officer | |
| | | | (Principal Executive Officer) | |
|
Signature
|
| |
Title
|
| |
Date
|
|
|
/s/ Howard J. Weisman
Howard J. Weisman
|
| |
Chief Executive Officer and Director
(Principal Executive Officer) |
| | July 18, 2022 | |
|
/s/ Howard J. Weisman
Howard J. Weisman
|
| |
Chief Executive Officer and Director
(Principal Financial and Accounting Officer) |
| | July 18, 2022 | |
|
*
Zachary Rome
|
| |
Chief Operating Officer and Director
|
| | July 18, 2022 | |
|
*
Michael Derby
|
| |
Executive Chairman and Director
|
| | July 18, 2022 | |
|
*
Karen LaRochelle
|
| |
Director
|
| | July 18, 2022 | |
|
/s/ John F. Coelho
John F. Coelho
|
| |
Director
|
| | July 18, 2022 | |
| *By: | | |
Howard J. Weisman
Howard J. Weisman, Attorney-In-Fact
|
|
Exhibit 10.14
AMENDMENT
This Amendment “(Amendment”) dated as of November 1, 2020 (the “Amendment Effective Date”), is by and between PaxMedica, Inc., located at 50 Tice Boulevard, Suite A26, Woodcliff Lake, NJ 07677 and TardiMed Sciences, LLC, located at 50 Tice Boulevard, Suite A26, Woodcliff Lake, NJ 07677, and amends the Rent and Administrative Services Agreement between the parties dated July 1, 2020 (the “Agreement”).
The parties hereby agree as follows:
1. | Exhibit A, Section II(B) is modified as of the Amendment Effective Date to read as follows: |
“Service activities will be billed at a fixed monthly rate of $20,000 per month.”
2. | Except as amended by this Amendment, the Agreement shall remain in full force and effect and is hereby affirmed. In the event of any inconsistency or conflict between the terms of this Amendment and the terms of the Agreement, the terms of this Amendment shall govern. |
IN WITNESS WHEREOF, the parties have executed this Amendment on the date first above written.
TardiMed Sciences, LLC. | ||
By: | /s/ Michael Derby | |
Name: | Michael Derby | |
Title: | Managing Partner |
PaxMedica, Inc. | ||
By: | /s/ Howard Weisman | |
Name: | Howard Weisman | |
Title: | Chief Executive Officer |
Exhibit 23.1
Independent Registered Public Accounting Firm’s Consent
We consent to the inclusion in this Registration Statement of PaxMedica, Inc. on Form S-1 Amendment No. 9 (File No. 333-239676) of our report dated June 10, 2022, which includes an explanatory paragraph as to the Company’s ability to continue as a going concern with respect to our audits of the financial statements of PaxMedica, Inc. as of December 31, 2021 and 2020 and for the years ended December 31, 2021 and 2020, which report appears in the Prospectus, which is part of this Registration Statement. We also consent to the reference to our Firm under the heading “Experts” in such Prospectus.
/s/ Marcum LLP
Marcum LLP
New York, NY
July 18, 2022