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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended: December 31, 2022

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from   to  

 

Commission file number: 001-41277

 

MODULAR MEDICAL, INC.
(Exact name of registrant as specified in its charter)

 

Nevada  

87-0620495

(State or other jurisdiction of
incorporation or organization)
  (I.R.S. Employer
Identification No.)

 

16772 W. Bernardo Drive, San Diego, California  

92127

(Address of principal executive offices)   (Zip Code)
 
(858) 800-3500
(Registrant’s telephone number, including area code)
 
 
(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading symbol(s) Name of each exchange on which registered
Common Stock, par value $0.001 per share MODD  The Nasdaq Stock Market, LLC 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

x Yes o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

x Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer o
Non-accelerated Filer   x Smaller reporting company x
  Emerging growth company x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

o Yes x No

The number of outstanding shares of the registrant’s common stock, par value $0.001 per share, was 10,932,098 as of February 8, 2023.

 

 

FORM 10-Q
December 31, 2022

 

TABLE OF CONTENTS

 

PART I — FINANCIAL INFORMATION 3
     
Item 1. Financial Statements (Unaudited): 3
     
  Condensed Consolidated Balance Sheets as of December 31, 2022 and March 31, 2022 3
     
  Condensed Consolidated Statements of Operations for the three and nine months ended December 31, 2022 and 2021 4
   
  Condensed Consolidated Statements of Stockholders’ Equity (Deficit) for the three and nine months ended December 31, 2022 and 2021 5
     
  Condensed Consolidated Statements of Cash Flows for the nine months ended December 31, 2022 and 2021 6
     
  Notes to Condensed Consolidated Financial Statements 7
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 16
     
Item 4. Controls and Procedures 19
     
PART II — OTHER INFORMATION 20
     
Item 1. Legal Proceedings 20
     
Item 1A. Risk Factors 20
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 20
     
Item 3. Defaults Upon Senior Securities 20
     
Item 4. Mine Safety Disclosures 20
     

Item 5.

Other Information

20

     
Item 6. Exhibits 21
     
  Signatures 22
2
 

Part I – FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

Modular Medical, Inc.
Condensed Consolidated Balance Sheets

 

   December 31,
2022
(Unaudited)
   March 31,
2022
 
ASSETS          
           
CURRENT ASSETS          
Cash and cash equivalents  $7,690,957   $9,076,372 
Prepaid expenses and other   180,164    313,422 
Security deposit   100,000     
TOTAL CURRENT ASSETS   7,971,121    9,389,794 
           
Property and equipment, net   716,409    235,959 
Right of use asset, net   51,312    120,693 
Security deposit       100,000 
TOTAL NON-CURRENT ASSETS   767,721    456,652 
           
TOTAL ASSETS  $8,738,842   $9,846,446 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
          
CURRENT LIABILITIES          
Accounts payable  $382,080   $299,951 
Accrued expenses   255,545    524,891 
Short-term lease liability   77,672    144,857 
TOTAL CURRENT LIABILITIES   715,297    969,699 
           
Long-term lease liability       39,957 
TOTAL LIABILITIES   715,297    1,009,656 
           
Commitments and Contingencies (Note 8)          
           
STOCKHOLDERS’ EQUITY          
Preferred Stock, $0.001 par value, 5,000,000 shares authorized, none issued and outstanding        
Common Stock, $0.001 par value, 50,000,000 shares authorized; 10,932,098 and 10,461,898 shares issued and outstanding as of December 31, 2022 and March 31, 2022, respectively   10,932    10,462 
Additional paid-in capital   52,900,066    43,406,099 
Accumulated deficit   (44,887,453)   (34,579,771)
TOTAL STOCKHOLDERS’ EQUITY   8,023,545    8,836,790 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $8,738,842   $9,846,446 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

3
 

Modular Medical, Inc.

Condensed Consolidated Statements of Operations
(Unaudited)

 

   Three Months Ended
December 31,
   Nine Months Ended
December 31,
 
   2022   2021   2022   2021 
Operating expenses                    
Research and development  $2,196,546   $1,849,399   $6,804,069   $5,742,911 
General and administrative   1,161,351    1,981,665    3,502,029    5,156,152 
Total operating expenses   3,357,897    3,831,064    10,306,098    10,899,063 
Loss from operations   (3,357,897)   (3,831,064)   (10,306,098)   (10,899,063)
                     
Other income (expense)   (587)   

4

    

16

    

368,876

 
Interest expense       (1,010,247)       (2,204,917)
Loss on debt extinguishment               (1,321,450)
Loss before income taxes   (3,358,484)   (4,841,307)   (10,306,082)   (14,056,554)

                    
Provision for income taxes           1,600    1,600 
                     
Net loss  $(3,358,484)  $(4,841,307)  $(10,307,682)  $(14,058,154)
                     

Net loss per share
                    
Basic and diluted  $(0.31)  $(0.76)  $(0.95)  $(2.22)
                     
Shares used in computing net loss per share                    
Basic and diluted   10,925,862    6,354,145    10,863,082    6,331,982 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

4
 

Modular Medical, Inc.

Condensed Consolidated Statements of Stockholders’ Equity (Deficit)
(Unaudited)

 

   Common Stock   Additional
Paid-In
   Common
Stock
   Accumulated   Stockholders’ 
   Shares   Amount   Capital   Issuable   Deficit   Equity 
Balance as of March 31, 2022   10,461,898   $10,462   $43,406,099   $   $(34,579,771)  $8,836,790 
Shares issued for services   348        1,576            1,576 
Issuance of common stock and warrants in equity offering, net   449,438    449    7,371,898            7,372,347 
Issuance of common stock under equity incentive plan   2,664    3    13,747            13,750 
Stock-based compensation           724,819            724,819 
Net loss                   (3,498,791)   (3,498,791)
Balance as of June 30, 2022   10,914,348   $10,914   $51,518,139   $   $(38,078,562)  $13,450,491 
Issuance of common stock under equity incentive plan   11,375    12    50,368            50,380 
Stock-based compensation           692,060            692,060 
Net loss                   (3,450,407)   (3,450,407)
Balance as of September 30, 2022   10,925,723   $10,926   $52,260,567   $   $(41,528,969)  $10,742,524 
Issuance of common stock under equity incentive plan   6,375    6    12,737            12,743 
Stock-based compensation           626,762            626,762 
Net loss                   (3,358,484)   (3,358,484)
Balance as of December 31, 2022   10,932,098   $10,932   $52,900,066   $   $(44,887,453)  $8,023,545 
                               
   Common Stock   Additional
Paid-In
   Common
Stock
   Accumulated   Stockholders’ 
   Shares   Amount   Capital   Issuable   Deficit   Deficit 
Balance as of March 31, 2021   6,302,050   $6,302   $14,665,559   $   $(15,947,010)  $(1,275,149)
Shares issued for services   20,000    20    172,180            172,200 
Warrants issued with convertible notes           3,700,632            3,700,632 
Issuance of common stock under equity incentive plan   1,836    2    32,495            32,497 
Stock-based compensation           623,423            623,423  
Net loss                   (4,835,091)   (4,835,091)
Balance as of June 30, 2021   6,323,886   $6,324   $19,194,289   $   $(20,782,101)  $(1,581,488)
Stock-based compensation   3,635    4    862,427            862,431 
Net loss                 (4,381,757)   (4,381,757)
Balance as of September 30, 2021   6,327,521   $6,328   $20,056,716   $   $(25,163,858)  $(5,100,814)
Private placement of common stock   30,865    31    249,969            250,000 
Shares issued for services   8,334    8    73,748            73,756 
Shares issuable for services               149,994        149,994 
Shares issued for reverse stock split   1,211    1                1 
Stock-based compensation   5,775    6    1,221,729            1,221,735 
Net loss                   (4,841,307)   (4,841,307)
Balance as of December 31, 2021   6,373,706   $6,374   $21,602,162   $149,994   $(30,005,165)  $(8,246,635)

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

5
 

Modular Medical, Inc.

Condensed Consolidated Statements of Cash Flows
(Unaudited)

 

   Nine Months Ended
December 31,
 
   2022   2021 
Cash Flows from operating activities        
Net loss  $(10,307,682)  $(14,058,154)
Adjustments to reconcile net loss to net cash used in operating activities:          
Gain on PPP note forgiveness       (368,780)
Loss on debt extinguishment       1,321,450 
Stock-based compensation expense   2,120,513    2,740,086 
Depreciation and amortization   92,616    80,268 
Shares issued for services   150,412    388,021 
Shares issuable for services       149,994 
Amortization of lease right-of-use asset   69,381    58,404 
Change in lease liability   (107,142)   (92,826)
Amortization of debt discount       1,454,762 
Changes in assets and liabilities:          
Other assets and prepaid expenses   (15,577)   (25,995)
Accounts payable and accrued expenses   (187,217)   1,223,983 
Net cash used in operating activities   (8,184,696)   (7,128,787)
           
CASH FLOWS FROM INVESTING ACTIVITIES          
Purchase of property and equipment   (573,066)   (22,779)
Net cash used in investing activities   (573,066)   (22,779)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Proceeds from issuance of common stock and warrants, net   7,372,347     
Proceed from private placement, net of issuance costs       250,000 
Proceeds from issuance of convertible notes, net       4,137,199 
Proceeds from issuance of promissory note       1,500,000 
Net cash provided by financing activities   7,372,347    5,887,199 
           
Net decrease in cash and cash equivalents   (1,385,415)   (1,264,367)
           
Cash and cash equivalents at beginning of period   9,076,372    1,468,465 
           
Cash and cash equivalents at end of period  $7,690,957   $204,098 
           
Supplemental disclosure:          
Noncash investing and financing activities:          
Fair value of detachable warrants issued with convertible notes  $   $3,700,632 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6
 

MODULAR MEDICAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

 

NOTE 1 – THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Modular Medical, Inc. (the Company) was incorporated in Nevada in October 1998 under the name Bear Lake Recreation, Inc. The Company had no material business operations from 2002 until approximately 2017 when it acquired all of the issued and outstanding shares of Quasuras, Inc., a Delaware corporation (Quasuras). As the major shareholder of Quasuras retained control of both the Company and Quasuras, the share exchange was accounted for as a reverse merger. As such, the Company recognized the assets and liabilities of Quasuras acquired in the merger at their historical carrying amounts. Prior to the acquisition of Quasuras and, since at least 2002, the Company was a shell company, as defined in Rule 12b-2 promulgated under the Securities Exchange Act of 1934 (the Exchange Act). In June 2017, the Company changed its name from Bear Lake Recreation, Inc. to Modular Medical, Inc.

 

The Company is a development-stage medical device company focused on the design, development and eventual commercialization of an innovative insulin pump to address shortcomings and problems represented by the relatively limited adoption of currently available pumps for insulin-dependent people with diabetes. The Company has developed a hardware technology allowing people with insulin-dependent diabetes to receive their daily insulin in two ways, through a continuous “basal” delivery allowing a small amount of insulin to be in the blood at all times and a “bolus” delivery to address meal time glucose input and to address when the blood glucose level becomes excessively high. By addressing the time and effort required to effectively treat their condition, the Company believes it can address the less technically savvy, less motivated part of the market.

 

In February 2022, the Company completed a public offering of its equity securities, and its common stock was approved to list on the Nasdaq Capital Market under the symbol “MODD” and began trading there on February 10, 2022.

 

Liquidity

 

Financial Accounting Standards Board (FASB) Accounting Standard Update (ASU) No. 2014-15 (ASU 2014-15), Going Concern, requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If management identifies conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, management must consider if there are plans that are probable to be implemented, and whether it is probable that the plans will mitigate the conditions or events raising the substantial doubt about the entity’s ability to continue as a going concern. If the substantial doubt is not alleviated after consideration of management’s plans, the entity must include a statement in the notes to the financial statements indicating that there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued including: 1) the principal conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern, 2) management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and 3) management’s plans to attempt to mitigate the conditions or events causing the substantial doubt about the entity’s ability to continue as a going concern.

 

The Company expects to continue to incur operating losses for the foreseeable future and incur cash outflows from operations as it continues to invest in the development and subsequent commercialization of its product. The Company expects that its research and development and general and administrative expenses will continue to increase, and, as a result, it will eventually need to generate significant revenue to achieve profitability. The Company’s expected operating losses and cash burn raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that these financial statements are issued. Implementation of the Company’s plans and its ability to continue as a going concern will depend upon the Company’s ability to raise additional capital, through the sale of additional equity or debt securities, to support its future operations. There can be no assurance that such additional capital, whether in the form of debt or equity financing, will be sufficient or available and, if available, that such capital will be offered on terms and conditions acceptable to the Company.

7
 

The Company’s operating needs include the planned costs to operate its business, fund working capital and capital expenditures. The Company’s future capital requirements and the adequacy of its available funds will depend on many factors, including the Company’s ability to successfully commercialize its product, competing technological and market developments, and the need to enter into collaborations with other companies or acquire other companies or technologies to enhance or complement its product offering. If the Company is unable to secure additional capital, it may be required to curtail its research and development initiatives and take additional measures to reduce costs in order to conserve its cash. These condensed consolidated financial statements do not include any adjustments that might result from this uncertainty.

 

Basis of Presentation

 

The Company’s fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these notes to the condensed consolidated financial statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2023 refers to the fiscal year ending March 31, 2023). The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Quasuras. All significant intercompany transactions and balances have been eliminated in consolidation.

 

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and with the rules and regulations of the United States Security and Exchange Commission (SEC) regarding interim financial reporting. The condensed consolidated balance sheet as of March 31, 2022 has been derived from the audited consolidated financial statements at that date. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with these rules and regulations of the SEC. The information in this report should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in its most recent annual report on Form 10-K filed with the SEC.

 

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary to summarize fairly the Company’s financial position, results of operations and cash flows for the interim periods presented. The operating results for the three months ended December 31, 2022 are not necessarily indicative of the results that may be expected for the year ending March 31, 2023 or for any other future period.

 

Reverse Stock Split

 

On November 24, 2021, the Company filed a certificate of amendment to its amended and restated certificate of incorporation with the Secretary of State of the State of Nevada to effect a 1-for-3 reverse stock split of the Company’s shares of common stock. Such amendment and ratio were previously approved by a majority of the Company’s stockholders and the board of directors. As a result of the reverse stock split, which was effective November 29, 2021, every three shares of the Company’s pre-reverse split outstanding common stock were combined and reclassified into one share of common stock. Proportionate voting rights and other rights of common stock holders were not affected by the reverse stock split. Any fractional shares of common stock resulting from the reverse split were rounded up to the nearest whole share. All stock options outstanding and common stock reserved for issuance under the Company’s equity incentive plans and warrants outstanding immediately prior to the reverse stock split were adjusted by dividing the number of affected shares of common stock by three and, as applicable, multiplying the exercise price by three, as a result of the reverse stock split. All share numbers, share prices, exercise prices and per share amounts have been adjusted, on a retroactive basis to reflect this 1-for-3 reverse stock split.

 

Use of Estimates

 

The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amount of revenues and expenses during the reporting period. Estimates may include those pertaining to accruals, stock-based compensation and income taxes. Actual results could differ from those estimates.

 

8
 

Reportable Segment

 

The Company operates in one business segment and uses one measurement of profitability for its business.

 

Research and Development

 

The Company expenses research and development expenditures as incurred.

 

General and Administrative

 

General and administrative expenses consist primarily of payroll and benefit costs, rent, stock-based compensation, legal and accounting fees, and office and other administrative expenses.

 

Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash. The Company maintains its cash at high-quality financial institutions within the United States, which are insured by the Federal Deposit Insurance Corporation up to limits of approximately $250,000. No reserve has been made in the financial statements for any possible loss due to financial institution failure.

 

Risks and Uncertainties

 

The Company is subject to risks from, among other things, competition associated with the industry in general, other risks associated with financing, liquidity requirements, rapidly changing customer requirements, limited operating history and the volatility of public markets.

 

The global outbreak of the coronavirus disease 2019 (COVID-19) was declared a pandemic by the World Health Organization and a national emergency by the U.S. government in March 2020. This has negatively affected the U.S. and global economy, disrupted global supply chains, significantly restricted travel and transportation, resulted in mandated closures and orders to “shelter-in- place” and created significant disruption of the financial markets. The full extent of the COVID-19 impact on the Company’s operational and financial performance will depend on future developments, including the duration and spread of the pandemic and related actions taken by U.S. and foreign government agencies to prevent disease spread, all of which are uncertain, out of the Company’s control, and cannot be predicted.

 

Cash and Cash Equivalents

 

Cash and cash equivalents include cash on hand and cash in demand deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less.

 

Property and Equipment

 

Property and equipment are recorded at historical cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three to five years. Depreciation is recorded in operating expenses in the consolidated statements of operations. Leasehold improvements and assets acquired through capital leases are amortized over the shorter of their estimated useful life or the lease term, and amortization is recorded in operating expenses in the consolidated statements of operations. Construction-in-process includes machinery and equipment and is stated at cost and not depreciated. Depreciation on construction-in-process commences when the assets are ready for their intended use.

 

Fixed assets comprised:

 

 

   December 31,   March 31, 
   2022   2022 
Machinery and equipment  $487,855   $346,358 
Construction-in-process   427,670     
Leasehold improvements   139,197    139,197 
Total property and equipment   1,054,722    485,555 
Less: accumulated depreciation and amortization   (338,313)   (249,596)
Total property and equipment, net  $716,409   $235,959 

 

9
 

Fair Value of Financial Instruments

 

The Company measures the fair value of financial instruments using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels:

·Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.
·Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
·Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

 

Due to their short-term nature, the carrying values of cash equivalents, accounts payable and accrued expenses, approximate fair value.

 

Right-of-Use Asset

 

The Company’s right-of-use assets consist of leased assets recognized in accordance with FASB Accounting Standards Codification (ASC) No. 842, Leases which requires lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and the lease liability represents the Company’s obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Leases with a lease term of 12 months or less at inception are not recorded on the condensed consolidated balance sheets and are expensed on a straight-line basis over the lease term in the condensed consolidated statement of operations and comprehensive loss. The Company determines the lease term by agreement with the lessor. In cases where the lease does not provide an implicit interest rate, the Company uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments.

 

Stock-Based Compensation

 

The Company recognizes stock-based compensation for stock options granted to employees and non-employees on a straight-line basis over the requisite service period, usually the vesting period, based on the grant-date fair value. The Company estimates the value of stock options on the date of grant using the Black-Scholes pricing model. The determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the option price, as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the expected stock price volatility over the term of the awards, and projected stock option exercise behaviors.

 

Per-Share Amounts

 

Basic net loss per share is computed by dividing the net loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share gives effect to all potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of incremental shares of common stock issuable upon the exercise of stock options and warrants.

 

For the nine months ended December 31, 2022 and 2021, the following table sets forth securities outstanding which were excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive.

 

   Nine Months Ended
December 31,
 
   2022   2021 
Options to purchase common stock   2,174,198    1,967,188 
Common stock warrants   7,565,588    767,796 
Total   9,739,786    2,734,984 

 

Reclassifications

 

Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations or cash flows.

 

Comprehensive Loss

 

Comprehensive loss represents the changes in equity of an enterprise, other than those resulting from stockholder transactions. Accordingly, comprehensive loss may include certain changes in equity that are excluded from net loss. For the three and nine months ended December 31, 2022 and 2021, the Company’s comprehensive loss was the same as its net loss.

 

10
 

Recently Issued Accounting Pronouncement

 

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses. This ASU added a new impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes an allowance for its estimate of expected credit losses and applies to most debt instruments, trade receivables, lease receivables, financial guarantee contracts, and other loan commitments. The CECL model does not have a minimum threshold for recognition of impairment losses and entities will need to measure expected credit losses on assets that have a low risk of loss. This update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years for smaller reporting companies. The adoption of this ASU is not expected to have a material impact on the Company’s results of operations and financial position.

 

NOTE 2 – LEASES

 

The Company accounts for the lease of its corporate facility in San Diego, California in accordance with ASC No. 842. The 39- month lease term commenced April 1, 2020, and the lease provides for an initial monthly rent of approximately $12,400 with annual rent increases of approximately 3%. In addition to the minimum lease payments, the Company is responsible for property taxes, insurance and certain other operating costs. The right-to-use asset and corresponding liability for the facility lease have been measured at the present value of the future minimum lease payments. A discount rate of 11%, which approximated the Company’s incremental borrowing rate, was used to measure the lease asset and liability. Lease expense is recognized on a straight-line basis over the lease term.

 

The Company obtained a right-of-use asset of $270,950 in exchange for its obligations under the operating lease. The landlord also provided a lease incentive of approximately $139,000, which was paid to the Company in June 2020, for the Company to make improvements to the leased space. In addition, the Company paid a $100,000 security deposit.

 

Future minimum payments under the facility operating lease, as of December 31, 2022, are listed in the table below.

 

Annual Fiscal Years  Operating
Lease
 
2023   39,507 
2024   40,692 
Less:     
Imputed interest   (2,527)
Present value of lease liabilities  $77,672 

 

Cash paid for amounts included in the measurement of lease liabilities was $118,521 for the nine months ended December 31, 2022. Rent expense was $80,698 for each of the nine-month periods ended December 31, 2022 and 2021 and $26,930 for each of the three-month periods ended December 31, 2022 and 2021.

 

NOTE 3 – PPP NOTE

 

On April 24, 2020, the Company received a $368,780 unsecured loan (the PPP Note) under the Paycheck Protection Program (the PPP), which was established under the U.S. government’s Coronavirus Aid, Relief, and Economic Security Act (the CARES Act). The PPP Note to the Company was made through Silicon Valley Bank (the Lender), and the Company entered into a U.S. Small Business Administration Paycheck Protection Program Note (the Agreement) with the Lender evidencing the PPP Note. The full amount of the PPP Note was due in April 2022 and interest accrued on the outstanding principal balance of the PPP Note at a fixed rate of 1.0% per annum, which was deferred for 10 months after the covered period during which the Company used the proceeds.

 

In May 2021, the Lender and the U.S. Small Business Administration notified the Company that the outstanding principal and accrued interest for the PPP Note was forgiven in full. The Company accounted for the forgiveness of the PPP Note in accordance with ASC Topic 470: Debt (ASC 470), and the amount forgiven was recorded as a gain on extinguishment and recognized in the other income line of the consolidated statement of operations.

11
 

NOTE 4 – CONVERTIBLE PROMISSORY NOTES

 

From February through April 2021, the Company sold $2,310,000 of convertible promissory notes (each an Original Note and, collectively, the Original Notes), at par in a private placement transaction effected pursuant to an exemption from the registration requirements under the Securities Act of 1933, as amended. Effective April 30, 2021, pursuant to a revocation and replacement agreement between each holder of an Original Note and the Company, the $2,310,000 of Original Notes and accrued interest thereon as of April 30, 2021 were replaced with $2,360,550 aggregate principal amount of Notes and 2021 Warrants (as defined below). The Company accounted for the replacement of the Original Notes in accordance with ASC 470 and recorded a loss on extinguishment of $1,321,450 and interest expense of $70,647 for unamortized debt issuance costs as of April 30, 2021.

 

In April and May 2021, pursuant to a securities purchase agreement by and between the Company and each investor (the SPA), the Company sold to investors $4,250,000 aggregate principal amount of convertible promissory notes (the Notes) and warrants to purchase shares of its common stock (the 2021 Warrants). The Notes were unsecured obligations of the Company with each Note having a stated maturity date of 12 months from its issue date and accrued interest at a rate of 12% per annum, payable on maturity. If the Company completed an offering of its common stock or other securities in excess of $12,000,000 of gross proceeds (a Qualified Capital Raise, as defined in the Notes), each Note holder would be required to convert its Adjusted Note Amount (as defined below) into the securities of such Qualified Capital Raise. Adjusted Note Amount equals the product of (i) the sum of all outstanding principal plus accrued interest on a Note, multiplied by (ii) 1.25.

 

In connection with the issuance of the Notes, the Company issued the 2021 Warrants to purchase in the aggregate 767,796 shares of its common stock at an initial exercise price of $24.00 per share. The fair value of the 2021 Warrants was $3,700,632, of which $2,379,182 was recorded as a debt discount and amortized to interest expense, and $1,321,450 was recorded as a loss on debt extinguishment. The Company calculated the fair value of the Warrants utilizing the Black-Scholes valuation model with the following assumptions: volatility of 88.98%, risk-free interest rate of 0.86%, a term of 5.75 years and a dividend yield of zero.

 

Upon the closing of a public offering in February 2022, which was a Qualified Capital Raise, in accordance with their terms, the Notes converted into 1,511,276 shares of common stock and the holders of the Notes received an additional 1,511,276 common stock purchase warrants with an exercise price of $6.60 per share. In addition, as a result of the February 2022 equity offering, the exercise price of the 767,796 outstanding 2021 Warrants was reduced to $6.00 per share.

 

NOTE 5 – STOCKHOLDERS’ EQUITY (DEFICIT)

 

Placements of Common Stock and Warrants

 

On May 2, 2022, the Company entered into a securities purchase agreement (the Purchase Agreement) with an institutional investor, pursuant to which the Company sold, in a registered direct offering (the Registered Offering), which closed on May 5, 2022, an aggregate of 449,438 shares (the Shares) of the Company’s common stock, par value $0.001 per share, at a purchase price per Share of $4.45 and pre-funded warrants (the Pre-Funded Warrants) to purchase an aggregate of 1,348,314 shares of common stock at a purchase price per Pre-Funded Warrant of $4.44. The Pre-Funded Warrants will be exercisable immediately on the date of issuance at an exercise price of $0.01 per share and may be exercised at any time until all of the Pre-Funded Warrants are exercised in full.

 

In a concurrent private placement under the Purchase Agreement, the Company issued to the Investor warrants (the Private Placement Warrants) to purchase an aggregate of 1,438,202 shares of common stock at an exercise price of $6.60 per share. The Private Placement Warrants will be exercisable beginning on the six-month anniversary of the date of issuance (the Initial Exercise Date) and will expire on the five-year anniversary of the Initial Exercise Date.

12
 

Warrants

 

As of December 31, 2022, the Company had the following warrants outstanding:

 

 

Type

  Number of
Shares
   Exercise
Price
   Expiration Date 
Common stock   1,348,314   $0.01     
Common stock   767,796   $6.00    January - February 2027 
Common stock   4,011,276   $6.60    February 2027 
Common stock   1,438,202   $6.60    November 2027 
Total   7,565,588           

 

Other

 

During the nine months ended December 31, 2022 and 2021, the Company issued 348 and 28,334 shares of common stock, respectively, with a fair value of approximately $1,576 and $245,956, respectively, to service providers.

 

NOTE 6 – STOCK-BASED COMPENSATION

 

Amended 2017 Equity Incentive Plan

 

In October 2017, the Company’s board of directors (the Board) approved the 2017 Equity Incentive Plan (the Plan), as amended, with 1,000,000 shares of common stock reserved for issuance. In January 2020 and August 2021, the Board approved increases in the number of shares reserved for issuance under the Plan by 333,334 and 1,333,334 shares, respectively. Under the Plan, eligible employees, directors and consultants may be granted a broad range of awards, including stock options, stock appreciation rights, restricted stock, performance-based awards and restricted stock units. The Plan is administered by the Board or, in the alternative, a committee designated by the Board.

 

Stock-Based Compensation Expense

 

The expense relating to stock options is recognized on a straight-line basis over the requisite service period, usually the vesting period, based on the grant date fair value. As of December 31, 2022, the unamortized compensation cost was $3,443,902 related to stock options and is expected to be recognized as expense over a weighted-average period of approximately 2.07 years.

 

During the three and nine months ended December 31, 2022, the Company awarded 6,375 and 20,414 shares, respectively, to members of the Board in accordance with the compensation plan for non-employee directors. During the nine months ended December 31, 2022, the Company granted options with 10-year terms to purchase 677,199 shares of its common stock to employees, directors and consultants. The fair value of the options granted and shares awarded was $2,503,979. The following assumptions were used in the fair value calculations of the options granted:

 

   Three Months Ended
December 31,
   Nine Months Ended
December 31,
 
   2022   2021   2022   2021 
Risk-free interest rates   3.93% - 3.99%    1.26% - 1.36%    2.82% - 4.06%    0.8% - 1.36% 
Volatility   149%    197% - 253%    149% - 223%    89% - 370% 
Expected life (years)   5.0 - 5.7    5.0 - 6.0    5.0 - 5.7    5.0 - 6.2 

 

The fair values of options at the grant date were estimated utilizing the Black-Scholes valuation model, which includes simplified methods to establish the fair term of options, as well as average volatility. The risk-free interest rate was derived from the Daily Treasury Yield Curve Rates, as published by the U.S. Department of the Treasury as of the grant date for terms equal to the expected terms of the options. A dividend yield of zero was applied because the Company has never paid dividends and has no intention to pay dividends in the foreseeable future. The Company accounts for forfeitures as they occur.

13
 

A summary of stock option activity under the Plan is presented below:

 

       Options Outstanding 
   Shares
Available
for Grant
   Number of
Shares
   Weighted
Average
Exercise
Prices
 
Balance at March 31, 2022   989,466    1,650,705   $6.58 
Options granted   (265,634)   265,634    4.35 
Share awards   (2,664)        
Options cancelled and returned to the Plan   96,668    (96,668)   7.69 
Balance at June 30, 2022   817,836    1,819,671    6.19 
Options granted   (241,023)   241,023    4.35 
Share awards   (11,375)        
Options cancelled and returned to the Plan   30,444    (30,444)   4.67 
Balance at September 30, 2022   595,882    2,030,250    6.00 
Options granted   (170,542)   170,542    2.00 
Share awards   (6,375)        
Options cancelled and returned to the Plan   26,594    (26,594)   5.82 
Balance at December 31, 2022   445,559    2,174,198   $5.69 

 

There were no stock options exercised during the nine months ended December 31, 2022 and 2021.

 

The following table summarizes the range of outstanding and exercisable options as of December 31, 2022:

 

   Options Outstanding   Options Exercisable 
Range of Exercise Price   Number
Outstanding
    Weighted
Average
Remaining
Contractual
Life (in Years)
    Weighted
Average
Exercise
Price
    Number
Exercisable
    Weighted
Average
Exercise
Price
    Aggregate
Intrinsic
value
 
$1.98 - $17.70   2,174,198    7.94   $5.69    1,360,318   $5.87   $8,894 

 

The intrinsic value per share is calculated as the excess of the closing price of the common stock on the Company’s principal trading market over the exercise price of the option.

 

The Company is required to present the tax benefits resulting from tax deductions in excess of the compensation cost recognized from the exercise of stock options as financing cash flows in the consolidated statements of cash flows. For the nine months ended December 31, 2022 and 2021, there were no such tax benefits associated with the exercise of stock options, as no stock options were exercised.

 

NOTE 7 – INCOME TAXES

 

The Company determines deferred tax assets and liabilities based upon the differences between the financial statement and tax bases of the Company’s assets and liabilities using tax rates in effect for the year in which the Company expects the differences to affect taxable income. A valuation allowance is established for any deferred tax assets for which it is more likely than not that all or a portion of the deferred tax assets will not be realized. Based on the available information and other factors, management believes it is more likely than not that its federal and state net deferred tax assets will not be fully realized, and the Company has recorded a full valuation allowance.

 

The Company files U.S. federal and state income tax returns in jurisdictions with varying statutes of limitations. All tax returns for fiscal 2016 to fiscal 2022 may be subject to examination by the U.S. federal and state tax authorities. As of December 31, 2022, the Company has not recorded any liability for unrecognized tax benefits related to uncertain tax positions.

14
 

NOTE 8 – COMMITMENTS & CONTINGENCIES

 

Litigations, Claims and Assessments

In the normal course of business, the Company may be involved in legal proceedings, claims and assessments arising in the ordinary course of business. The Company records legal costs associated with loss contingencies as incurred and accrues for all probable and estimable settlements.

 

Indemnification

In the ordinary course of business, the Company enters into contractual arrangements under which it may agree to indemnify the counterparties from any losses incurred relating to breach of representations and warranties, failure to perform certain covenants, or claims and losses arising from certain events as outlined within the particular contract, which may include, for example, losses arising from litigation or claims relating to past performance. Such indemnification clauses may not be subject to maximum loss clauses. The Company has also entered into indemnification agreements with its officers and directors. No amounts were reflected in the Company’s consolidated financial statements for the nine months ended December 31, 2022 and 2021 related to these indemnifications. The Company has not estimated the maximum potential amount of indemnification liability under these agreements due to the limited history of prior claims and the unique facts and circumstances applicable to each particular agreement. To date, the Company has not made any payments related to these indemnification agreements, and no claims for payment have been made under such agreements.

 

Purchase Obligations

The Company's primary purchase obligations include purchase orders for machinery and equipment. At December 31, 2022, the Company had outstanding purchase orders for machinery and equipment and related expenditures of approximately $735,000.

 

NOTE 9 – SUBSEQUENT EVENTS

 

New Lease Agreement

On January 5, 2023, the Company entered into a lease agreement (the Thornhill Lease) with Michael Summers (the Lessor) for a new headquarters facility pursuant to which the Company will lease approximately 24,000 square feet of a building located in San Diego, California, commencing on or about February 1, 2023. The monthly base rent is $36,000 for the first 12 months of the lease and will increase by 4% of the prior year’s base rent at the beginning of each 12-month period thereafter. The lease term is 48 months.

 

Under the Thornhill Lease, the Company will pay the Lessor a monthly fee for its pro-rated share of specified common area charges, including maintenance costs, property taxes and insurance, in addition to base rent. The monthly fee for the common area charges is approximately $10,700 and will be adjusted based on actual costs incurred by the Lessor.

 

Amended 2017 Equity Incentive Plan

In January 2023, the Company’s stockholders approved an increase in the number of shares reserved for issuance under the Plan by 2,000,000 shares.

15
 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the accompanying condensed consolidated financial statements and notes included in this Quarterly Report on Form 10-Q (this Report). This Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which include, without limitation, statements about the market for our technology, our strategy, competition, expected financial performance and capital raising efforts, and other aspects of our business identified in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission on June 28, 2022 and in other reports that we file from time to time with the Securities and Exchange Commission. Any statements about our business, financial results, financial condition and operations contained in this Report that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believes,” “anticipates,” “expects,” “intends,” “plans,” “projects,” or similar expressions are intended to identify forward-looking statements. Our actual results could differ materially from those expressed or implied by these forward-looking statements as a result of various factors, including the risk factors described under Item 1A of our Annual Report on Form 10-K for the year ended March 31, 2022. These forward- looking statements represent our intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors including, without limitation, the direct and indirect effects of coronavirus disease 2019, or COVID-19 as well as the Russian/Ukraine conflict and inflationary risks, including the risk that the cost of certain of the Company’s materials and product components is increasing, and related issues that may arise therefrom. Many of those factors are outside of our control and could cause actual results to differ materially from those expressed or implied by those forward-looking statements. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Report. All subsequent written and oral forward-looking statements concerning other matters addressed in this Report and attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this Report. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, a change in events, conditions, circumstances or assumptions underlying such statements, or otherwise.

 

Our fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in this Report, refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2023 refers to the fiscal year ending March 31, 2023). Unless the context requires otherwise, references to “we,” “us,” “our,” and the “Company” refer to Modular Medical, Inc. and its consolidated subsidiary.

 

Company Overview

 

We are a development-stage medical device company focused on the design, development and commercialization of an innovative insulin pump using modernized technology to increase pump adoption in the diabetes marketplace. Through the creation of a novel two-part patch pump, our MODD1 product, we seek to fundamentally alter the trade-offs between cost and complexity and access to the higher standards of care that presently-available insulin pumps provide. By simplifying and streamlining the user experience from introduction, prescription, reimbursement, training and day-to-day use, we seek to expand the wearable insulin delivery device market beyond the highly motivated “super users” and expand the category into the mass market. The product seeks to serve both the type 1 and the rapidly growing, especially in terms of device adoption, type 2 diabetes markets.

 

Historically, we have financed our operations principally through private placements and public offerings of our common stock and sales of convertible promissory notes. Based on our current operating plan, substantial doubt about our ability to continue as a going concern for a period of at least one year from the date that the financial statements included in Item 1 of this Report are issued exists. Our ability to continue as a going concern depends on our ability to raise additional capital, through the sale of equity or debt securities, to support our future operations. If we are unable to secure additional capital, we will be required to curtail our research and development initiatives and take additional measures to reduce costs. We have provided additional disclosure in Note 1 to the condensed consolidated financial statements in Item 1 of this Report and under Liquidity below.

16
 

COVID-19 and Macroeconomic Factors

 

The global outbreak of the coronavirus disease 2019 (COVID-19) was declared a pandemic by the World Health Organization and a national emergency by the U.S. government in March 2020. This has negatively affected the U.S. and global economy, disrupted global supply chains, significantly restricted travel and transportation, resulted in mandated closures and orders to “shelter-in- place” and created significant disruption of the financial markets. The full extent of the COVID-19 impact on our operational and financial performance will depend on future developments, including, without limitation, the duration and spread of the pandemic and related actions taken by U.S. and foreign government agencies to prevent disease spread, all of which are uncertain, out of our control, and cannot be predicted.

 

Since March 2020, the jurisdiction in which we operate has issued “shelter-in-place” orders from time to time. We have complied with these orders, and, when such orders were in place, minimized business activities at our facility. We have implemented a teleworking policy for our employees and contractors to reduce on-site activity, as necessary. We have and continue to experience longer lead times for certain components used to manufacture initial quantities of our products for our submission to the U.S. Food and Drug Administration (FDA) for approval to commercialize our pump product. We remain diligent in continuing to identify and manage risks to our business given the changing uncertainties related to COVID-19. While we believe that our operations personnel are currently in a position to build an adequate supply of products for our FDA submission, we recognize that unpredictable events could create difficulties in the months ahead. We may not be able to address these difficulties in a timely manner, which could delay our submission to the FDA and negatively impact our business, results of operations, financial condition and cash flows.

 

We believe that as the COVID-19 pandemic evolves, the direct and indirect impacts of the pandemic on global macroeconomic conditions, as well as conditions specific to us, are becoming more difficult to isolate or quantify. In addition, these direct and indirect factors can make it difficult to isolate and quantify the portion of our costs that are a direct result of the pandemic and costs arising from factors that may have been influenced by the pandemic, such as supply chain constraints, rising inflation, and recessionary fears. We expect these factors and their effects on our operations may persist for a longer period, even after the COVID-19 pandemic has subsided. The continued spread of COVID-19 has also led to disruption and volatility in the global capital markets.

 

The Russian invasion of Ukraine in February 2022 has led to further economic disruptions. Mounting inflationary costs pressures and recessionary fears have negatively impacted the global economy. During the third quarter of 2022, the U.S. Federal Reserve continued to aggressively address elevated inflation by increasing interest rates. The U.S. Federal reserve increased interest rates by 75 basis points in each of its meetings held in July, September and November 2022, 50 basis points in its meeting held in December 2022, and 25 basis points in its meeting held in February 2023, as inflation remains elevated. We were able to raise additional capital through equity offerings in February 2022 and May 2022, however, we will need to raise additional capital to commercialize our pump product candidate and support our operations in the future. We may be unable to access the capital markets, and additional capital may only be available to us on terms that could be significantly detrimental to our existing stockholders and to our business.

 

For additional information on risks that could impact our future results, please refer to “Risk Factors” in Part II, Item 1A of this Report.

 

Critical Accounting Policies and Estimates

 

The discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these condensed consolidated financial statements requires us to make certain estimates and judgments that affect the reported amounts of assets, liabilities, and expenses. On an ongoing basis, we make these estimates based on our historical experience and on assumptions that we consider reasonable under the circumstances. Actual results may differ from these estimates and reported results could differ under different assumptions or conditions. Our significant accounting policies and estimates are disclosed in Note 1 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended March 31, 2022. As of December 31, 2022, there have been no material changes to our significant accounting policies and estimates.

17
 

Results of Operations

 

Research and Development

 

   December 31,   Change 
   2022   2021   Fiscal 2022 to
Fiscal 2023
 
Research and development – Three months ended  $2,196,546   $1,849,399   $347,147    18.8%
Research and development – Nine months ended  $6,804,069   $5,742,911   $1,061,158    18.5%

 

Our research and development expenses include personnel, consulting, product prototyping and other costs associated with the development and initial production of our insulin pump product. We expense research and development costs as they are incurred.

 

Research and development, or R&D, expenses increased for the three and nine months ended December 31, 2022 compared with the same period of fiscal 2021, primarily due to increased engineering and operations personnel costs, prototype and production component and material costs and higher stock-based compensation expenses. The increases in R&D expenses were partially offset by a decrease in consulting costs, as we reduced our utilization of consultants, as we increased our employee headcount and the consultants completed development of aspects of our pump design and features. Our full-time R&D employee headcount increased to 32 at December 31, 2022 from 18 at December 31, 2021. R&D expenses included stock-based compensation expenses of $356,752 and $204,962 for the three months ended December 31, 2022 and 2021, respectively, and $1,034,674 and $459,989 for the nine months ended December 31, 2022 and 2021, respectively. We expect research and development expenses to remain comparable for the remainder of fiscal 2023, as we continue to advance the development of our pump product and develop our manufacturing process.

 

General and Administrative

 

   December 31,   Change 
   2022   2021   Fiscal 2022 to
Fiscal 2023
 
General and administrative – Three months ended  $1,161,351   $1,981,665   $(820,314)   (41.4)%
General and administrative – Nine months ended  $3,502,029   $5,156,152   $(1,654,123)   (32.1)%

 

General and administrative expenses consist primarily of personnel and related overhead costs for finance, human resources, legal, marketing and general management.

 

General and administrative, or G&A, expenses decreased for the three months ended December 31, 2022 compared with the same period of 2021, primarily as a result of decreased stock-based compensation, personnel and benefit costs and legal fees, which in fiscal 2022 related to our public offering and listing on the Nasdaq that was completed in February 2022. These decreases were partially offset by increased consulting and professional services fees.

 

G&A expenses decreased for the nine months ended December 31, 2022 compared with the same period of 2021, primarily as a result of decreased stock-based compensation, personnel and benefit costs, consulting and legal fees and marketing costs. These decreases were partially offset by increased accounting fees, travel costs and office-related expenses. Our full-time G&A employee headcount increased to 3 at December 31, 2022 from 2 at December 31, 2021. G&A expenses included stock-based compensation expenses of $282,753 and $1,016,774 for the three months ended December 31, 2022 and 2021, respectively and $1,085,839 and $2,280,098 for the nine months ended December 31, 2022 and 2021, respectively. We expect G&A expenses to remain flat for the remainder of fiscal 2023.

 

Liquidity and Capital Resources

 

As a development-stage enterprise, we do not currently have revenues to generate cash flows to cover operating expenses. Since our inception, we have incurred operating losses and negative cash flows in each year due to costs incurred in connection with R&D activities and G&A expenses associated with our operations. For the nine months ended December 31, 2022, we incurred a net loss of approximately $10.3 million. For the years ended March 31, 2022 and 2021, we incurred net losses of approximately $18.6 million and $7.4 million, respectively. At December 31, 2022, we had a cash balance of approximately $7.7 million and an accumulated deficit of approximately $44.9 million. When considered with our current operating plan, these conditions raise substantial doubt about our ability to continue as a going concern for a period of at least one year from the date that of issuance of the consolidated financial statements included in Item 1 of this Report. Our consolidated financial statements do not include adjustments to the amounts and classification of assets and liabilities that may be necessary should we be unable to continue as a going concern. Our ability to continue as a going concern depends on our ability to raise additional capital through the sale of equity or debt securities to support our future operations, and we are currently seeking such additional financing. In May 2022, we completed a registered direct offering of securities for net proceeds of approximately $7.4 million.

18
 

Our operating needs include the planned costs to operate our business, including amounts required to fund research and development activities, including clinical studies, working capital and capital expenditures. During the nine months ended December 31, we made capital expenditures of approximately $574,000, as we have begun procuring equipment to develop a low-volume manufacturing production line to build our pump product to demonstrate and develop our manufacturing process. We expect to incur increased capital expenditures for the remainder of fiscal 2023. At December 31, 2022, we had outstanding, non-cancelable purchase orders for production equipment totaling $735,000, and we expect to receive and pay for this equipment over the following six months. Our future capital requirements and the adequacy of our available funds will depend on many factors, including, without limitation, our ability to successfully commercialize our product, competing technological and market developments, and the need to enter into collaborations with other companies or acquire other companies or technologies to enhance or complement our product offerings. If we are unable to secure additional capital timely, we will be required to curtail our research and development initiatives and take additional measures to reduce costs in order to conserve our cash.

 

For the nine months ended December 31, 2022, we used $8,184,696 in operating activities, which primarily resulted from our net loss of $10,307,682, as adjusted for stock-based compensation expenses of $2,120,513, $150,412 for issuances of shares of common stock in exchange for services and depreciation and amortization expenses of $92,616, and increased by net changes in operating lease assets and liabilities of $37,761 and operating assets and liabilities $202,794 and other immaterial adjustments. For the nine months ended December 31, 2021, we used $7,128,787 in operating activities, which primarily resulted from our net loss of $14,058,154, increased for a non-cash gain on the PPP Note extinguishment of $368,780 and net changes in operating lease assets and liabilities of $34,422, as adjusted for changes to operating assets and liabilities of $1,197,988, a loss on debt extinguishment of $1,321,450 stock-based compensation expenses of $2,740,086, $388,021 for issuances of shares of common stock in exchange for services, $149,994 for issuable shares of common stock in exchange for services, depreciation and amortization expenses of $80,268 and interest expense of $1,454,762 for amortization of debt discount.

 

For the nine months ended December 31, 2022 and 2021, cash used in investing activities of $573,066 and $22,779, respectively, was for the purchase of property and equipment.

 

Cash provided by financing activities of $7,372,347 for the nine months ended December 31, 2022 was attributable to net proceeds from the issuance of common stock upon completion of an equity offering, net of underwriting fees and issuance costs. Cash provided by financing activities of $5,887,199 for the nine months ended December 31, 2021 was primarily attributable to $4,137,199 of net proceeds from the issuance of our convertible promissory notes, $250,000 from the sale of shares of common stock to officers of the Company and $1,500,000 from the issuance of a promissory bride note.

 

Recently Issued Accounting Pronouncements

 

Recently Issued Accounting Pronouncements are detailed in Note 1 in the Notes to the Condensed Consolidated Financial Statements included in Item 1 of this Report.

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

 

Not required.

 

Item 4. Controls and Procedures

 

Disclosure Controls and Procedures.

 

Our management is responsible for establishing and maintaining adequate internal control over our financial reporting. Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

 

Under the supervision and with the participation of our management, including our Chief Executive Officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934. Based on this evaluation, our management concluded that, as of December 31, 2022, our disclosure controls and procedures were effective.

 

Changes in Internal Control over Financial Reporting.

 

During the three months ended December 31, 2022, there was no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

19
 

Part II – OTHER INFORMATION

 

Item 1. Legal Proceedings

 

We are not currently involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. To our knowledge, there is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of us or our subsidiary, threatened against or affecting us, our common stock, our subsidiary or our subsidiary’s officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

 

Item 1A. Risk Factors

 

We face many significant risks in our business, some of which are unknown to us and not presently foreseen. These risks could have a material adverse impact on our business, financial condition and results of operations in the future. There are no material changes to the risk factors set forth under Item 1A of our Annual Report on Form 10-K for the year ended March 31, 2022, which we filed with the SEC on June 28, 2022, and of our Quarterly Report on Form 10Q for the three months ended September 30, 2022, which we filed with the SEC on November 14, 2022, as amended on November 17, 2022.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

Recent Sales of Unregistered Securities

 

On December 30, 2022, we issued 6,375 shares of our common stock to four of our non-employee directors in accordance with our Outside Director Compensation Plan.

 

The aforementioned issuances were made pursuant to exemptions from registration pursuant to Section 4(2) and/or Rule 506 of Regulation D of the Securities Act. We made such determinations based upon representations by the purchasers of such securities including, without limitation, that such purchasers were “accredited investors” as defined in the Securities Act.

 

Item 3. Defaults Upon Senior Securities

 

There has been no default in the payment of principal, interest, or a sinking or purchase fund installment, or any other material default, with respect to any indebtedness of ours.

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information

 

None.

20
 

Item 6. Exhibits

 

Exhibit No.   Description of Document
31.1*   Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*   Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*   Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
     
101.INS   XBRL Instance Document
101.SCH   XBRL Taxonomy Extension Schema
101.CAL   XBRL Taxonomy Extension Calculation Linkbase
101.DEF   XBRL Taxonomy Extension Definition Linkbase
101.LAB   XBRL Taxonomy Extension Label Linkbase
101.PRE   XBRL Taxonomy Extension Presentation Linkbase
104   Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

 

* Filed herewith
21
 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

    MODULAR MEDICAL, INC.
       
Date: February 13, 2023     By:   /s/ James E. Besser
      James E. Besser
      Chief Executive Officer
      (Principal Executive Officer)
       
Date: February 13, 2023     By:   /s/ Paul M. DiPerna
      Paul M. DiPerna
      Chairman, President, Chief Financial Officer and
Treasurer
      (Principal Financial Officer)
22

 

EX-31.1 2 ex31_1.htm EXHIBIT 31.1
 

Exhibit 31.1

 

CERTIFICATION

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, James E. Besser, certify that:

 

1.  I have reviewed this Quarterly Report on Form 10-Q of Modular Medical, Inc. for the period ended December 31, 2022;

 

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.  The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

 

(d)Disclosed in this report any change in the registrant’s internal controls over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.  The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

/s/ James E. Besser   Date: February 13, 2023
James E. Besser    
Chief Executive Officer    

EX-31.2 3 ex31_2.htm EXHIBIT 31.2
 

Exhibit 31.2

  

CERTIFICATION

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Paul M. DiPerna, certify that:

 

1.  I have reviewed this Quarterly Report on Form 10-Q of Modular Medical, Inc. for the period ended December 31, 2022;

 

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.  The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

 

(d)Disclosed in this report any change in the registrant’s internal controls over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.  The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

/s/ Paul M. DiPerna   Date: February 13, 2023
Paul M. DiPerna    
Chairman, President, Chief Financial Officer
and Treasurer
   

EX-32.1 4 ex32_1.htm EXHIBIT 32.1
 

Exhibit 32.1

  

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report on Form 10-Q of Modular Medical, Inc. (the “Company”) for the period ended December 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of James E. Besser, Chief Executive Officer of the Company, and Paul M. DiPerna, Chairman, President, Chief Financial Officer and Treasurer, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge, that:

 

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934, as amended; and

 

2.The information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Company.

 

By: /s/ James E. Besser   Date: February 13, 2023
James E. Besser    
Chief Executive Officer    
     
By: /s/ Paul M. DiPerna   Date: February 13, 2023
Paul M. DiPerna    
Chairman, President, Chief Financial Officer
and Treasurer
   

 

This certification accompanies this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, or otherwise required, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

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operating expenses Loss from operations Other income (expense) Interest expense Loss on debt extinguishment Loss before income taxes Provision for income taxes Net loss Net loss per share Basic and diluted Shares used in computing net loss per share Basic and diluted Statement [Table] Statement [Line Items] Beginning balance, value Beginning Balance, Shares Shares issued for services Shares issued for services, Shares Issuance of common stock and warrants in equity offering, net Issuance of common stock and warrants in equity offering, net, Shares Issuance of common stock under equity incentive plan Stock-based compensation, Shares Stock-based compensation Net loss Warrants issued with convertible notes Private placement of common stock Private placement of common stock, Shares Shares issuable for services Shares issued for reverse stock split Shares issued for reverse stock split, Shares Ending balance, value Ending Balance, Shares Statement of Cash Flows [Abstract] Cash Flows from operating activities Adjustments to reconcile net loss to net cash used in operating activities: Gain on PPP note forgiveness Loss on debt extinguishment Stock-based compensation expense Depreciation and amortization Shares issued for services Shares issuable for services Amortization of lease right-of-use asset Change in lease liability Amortization of debt discount Changes in assets and liabilities: Other assets and prepaid expenses Accounts payable and accrued expenses Net cash used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of common stock and warrants, net Proceed from private placement, net of issuance costs Proceeds from issuance of convertible notes, net Proceeds from issuance of promissory note Net cash provided by financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Supplemental disclosure: Noncash investing and financing activities: Fair value of detachable warrants issued with convertible notes Organization, Consolidation and Presentation of Financial Statements [Abstract] THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Leases [Abstract] LEASES Ppp Note PPP NOTE Debt Disclosure [Abstract] CONVERTIBLE PROMISSORY NOTES Equity [Abstract] STOCKHOLDERS’ EQUITY (DEFICIT) STOCK-BASED COMPENSATION Income Tax Disclosure [Abstract] INCOME TAXES Commitments and Contingencies Disclosure [Abstract] COMMITMENTS & CONTINGENCIES Subsequent Events [Abstract] SUBSEQUENT EVENTS Liquidity Basis of Presentation Reverse Stock Split Use of Estimates Reportable Segment Research and Development General and Administrative Concentration of Credit Risk Risks and Uncertainties Cash and Cash Equivalents Property and Equipment Fair Value of Financial Instruments Right-of-Use Asset Stock-Based Compensation Per-Share Amounts Reclassifications Comprehensive Loss Recently Issued Accounting Pronouncement Schedule of Fixed Assets THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Schedule of Anti-Dilutive Shares THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) Schedule of Future minimum Lease Payment LEASES Schedule of Warrant Outstanding STOCKHOLDERS' EQUITY (DEFICIT) Schedule of Fair value Assumptions of Options STOCK-BASED COMPENSATION Schedule of Stock Option activity STOCK-BASED COMPENSATION (Details 2) Schedule of Outstanding and Exercisable Option, Range STOCK-BASED COMPENSATION (Details 3) Machinery and equipment Construction-in-process Leasehold improvements Total property and equipment Less: accumulated depreciation and amortization Total property and equipment, net Options to purchase common stock Common stock warrants Total Stockholders' Equity, Reverse Stock Split 2023 2024 Imputed interest Present value of lease liabilities Cash Paid for Lease Liabilities Operating Leases, Rent Expense Unsecured Debt, Current Schedule of Short-Term Debt [Table] Short-Term Debt [Line Items] Convertible Notes Payable Gain (Loss) on Extinguishment of Debt Amortization of Debt Issuance Costs Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate Accumulated Other Comprehensive Income (Loss) [Table] Accumulated Other Comprehensive Income (Loss) [Line Items] Class of Warrant or Right, Outstanding Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price Stock Issued During Period, Shares, Issued for Services Stock Issued During Period, Value, Issued for Services Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate Offsetting Assets [Table] Offsetting Assets [Line Items] Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Beginning Balance Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance Granted Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price [custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesGrantedAwards] [custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesCancelledAvailableForGrant] Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures and Expirations in Period Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Exercise Price Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Intrinsic Value Shares Approved under Equity Incentive Plan Common Stock, Capital Shares Reserved for Future Issuance Subsequent Event [Table] Subsequent Event [Line Items] Shares approved under Equity Incentive Plan The amount of net income or loss for the period per each share in instances when basic and diluted earnings per share are the same amount and reported as a single line item on the face of the financial statements. Basic earnings per share is the amount of net income or loss for the period per each share of common stock or unit outstanding during the reporting period. Diluted earnings per share includes the amount of net income or loss for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period. Average number of shares or units issued and outstanding that are used in calculating basic and diluted earnings per share (EPS). Assets, Current Deposits Assets, Noncurrent Assets, Noncurrent Assets Liabilities, Current Liabilities Stockholders' Equity Attributable to Parent Liabilities and Equity Operating Expenses Operating Income (Loss) Interest Expense WeightedAverageNumberOfShareOutstandingBasicAndDiluted1 Shares, Outstanding Issuance of Stock and Warrants for Services or Claims IssuableOfStockAndWarrantsForServicesOrClaims Payments to Acquire Property, Plant, and Equipment Net Cash Provided by (Used in) Investing Activities Net Cash Provided by (Used in) Financing Activities Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect DisclosureTheCompanyAndSummaryOfSignificantAccountingPoliciesDetailsAbstract DisclosureLeasesDetailsAbstract DisclosureStockBasedCompensationDetailsAbstract Property, Plant and Equipment, Gross Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment Operating Leases, Future Minimum Payments Due Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures and Expirations in Period EX-101.PRE 9 modd-20221231_pre.xml XBRL PRESENTATION FILE XML 10 R1.htm IDEA: XBRL DOCUMENT v3.22.4
Cover - shares
9 Months Ended
Dec. 31, 2022
Feb. 08, 2023
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Dec. 31, 2022  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2023  
Current Fiscal Year End Date --03-31  
Entity File Number 001-41277  
Entity Registrant Name MODULAR MEDICAL, INC.  
Entity Central Index Key 0001074871  
Entity Tax Identification Number 87-0620495  
Entity Incorporation, State or Country Code NV  
Entity Address, Address Line One 16772 W. Bernardo Drive  
Entity Address, City or Town San Diego  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 92127  
City Area Code (858)  
Local Phone Number 800-3500  
Title of 12(b) Security Common Stock, par value $0.001 per share  
Trading Symbol MODD  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company true  
Elected Not To Use the Extended Transition Period false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   10,932,098
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.22.4
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
Dec. 31, 2022
Mar. 31, 2022
CURRENT ASSETS    
Cash and cash equivalents $ 7,690,957 $ 9,076,372
Prepaid expenses and other 180,164 313,422
Security deposit 100,000
TOTAL CURRENT ASSETS 7,971,121 9,389,794
Property and equipment, net 716,409 235,959
Right of use asset, net 51,312 120,693
Security deposit 100,000
TOTAL NON-CURRENT ASSETS 767,721 456,652
TOTAL ASSETS 8,738,842 9,846,446
CURRENT LIABILITIES    
Accounts payable 382,080 299,951
Accrued expenses 255,545 524,891
Short-term lease liability 77,672 144,857
TOTAL CURRENT LIABILITIES 715,297 969,699
Long-term lease liability 39,957
TOTAL LIABILITIES 715,297 1,009,656
STOCKHOLDERS’ EQUITY    
Preferred Stock, $0.001 par value, 5,000,000 shares authorized, none issued and outstanding
Common Stock, $0.001 par value, 50,000,000 shares authorized; 10,932,098 and 10,461,898 shares issued and outstanding as of December 31, 2022 and March 31, 2022, respectively 10,932 10,462
Additional paid-in capital 52,900,066 43,406,099
Accumulated deficit (44,887,453) (34,579,771)
TOTAL STOCKHOLDERS’ EQUITY 8,023,545 8,836,790
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 8,738,842 $ 9,846,446
XML 12 R3.htm IDEA: XBRL DOCUMENT v3.22.4
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares
Dec. 31, 2022
Mar. 31, 2022
Statement of Financial Position [Abstract]    
Preferred Stock, Par or Stated Value Per Share $ 0.001 $ 0.001
Preferred Stock, Shares Authorized 5,000,000 5,000,000
Preferred Stock, Shares Issued 0 0
Preferred Stock, Shares Outstanding 0 0
Common Stock, Par or Stated Value Per Share $ 0.001 $ 0.001
Common Stock, Shares Authorized 50,000,000 50,000,000
Common Stock, Shares, Issued 10,932,098 10,461,898
Common Stock, Shares, Outstanding 10,932,098 10,461,898
XML 13 R4.htm IDEA: XBRL DOCUMENT v3.22.4
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Operating expenses        
Research and development $ 2,196,546 $ 1,849,399 $ 6,804,069 $ 5,742,911
General and administrative 1,161,351 1,981,665 3,502,029 5,156,152
Total operating expenses 3,357,897 3,831,064 10,306,098 10,899,063
Loss from operations (3,357,897) (3,831,064) (10,306,098) (10,899,063)
Other income (expense) (587) 4 16 368,876
Interest expense (1,010,247) (2,204,917)
Loss on debt extinguishment (1,321,450)
Loss before income taxes (3,358,484) (4,841,307) (10,306,082) (14,056,554)
Provision for income taxes 1,600 1,600
Net loss $ (3,358,484) $ (4,841,307) $ (10,307,682) $ (14,058,154)
Net loss per share        
Basic and diluted $ (0.31) $ (0.76) $ (0.95) $ (2.22)
Shares used in computing net loss per share        
Basic and diluted 10,925,862 6,354,145 10,863,082 6,331,982
XML 14 R5.htm IDEA: XBRL DOCUMENT v3.22.4
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($)
Common Stock [Member]
Additional Paid-in Capital [Member]
Common Stock Issuable [Member]
Retained Earnings [Member]
Total
Beginning balance, value at Mar. 31, 2021 $ 6,302 $ 14,665,559 $ (15,947,010) $ (1,275,149)
Beginning Balance, Shares at Mar. 31, 2021 6,302,050        
Shares issued for services $ 20 172,180 172,200
Shares issued for services, Shares 20,000        
Issuance of common stock under equity incentive plan $ 2 32,495 32,497
Stock-based compensation, Shares 1,836        
Stock-based compensation 623,423 623,423
Net loss (4,835,091) (4,835,091)
Warrants issued with convertible notes 3,700,632 3,700,632
Ending balance, value at Jun. 30, 2021 $ 6,324 19,194,289 (20,782,101) (1,581,488)
Ending Balance, Shares at Jun. 30, 2021 6,323,886        
Beginning balance, value at Mar. 31, 2021 $ 6,302 14,665,559 (15,947,010) (1,275,149)
Beginning Balance, Shares at Mar. 31, 2021 6,302,050        
Shares issued for services         $ 245,956
Shares issued for services, Shares         28,334
Issuance of common stock and warrants in equity offering, net        
Net loss         (14,058,154)
Warrants issued with convertible notes         3,700,632
Ending balance, value at Dec. 31, 2021 $ 6,374 21,602,162 149,994 (30,005,165) (8,246,635)
Ending Balance, Shares at Dec. 31, 2021 6,373,706        
Beginning balance, value at Jun. 30, 2021 $ 6,324 19,194,289 (20,782,101) (1,581,488)
Beginning Balance, Shares at Jun. 30, 2021 6,323,886        
Stock-based compensation, Shares 3,635        
Stock-based compensation $ 4 862,427 862,431
Net loss (4,381,757) (4,381,757)
Ending balance, value at Sep. 30, 2021 $ 6,328 20,056,716 (25,163,858) (5,100,814)
Ending Balance, Shares at Sep. 30, 2021 6,327,521        
Shares issued for services $ 8 73,748 73,756
Shares issued for services, Shares 8,334        
Stock-based compensation, Shares 5,775        
Stock-based compensation $ 6 1,221,729 1,221,735
Net loss (4,841,307) (4,841,307)
Private placement of common stock $ 31 249,969 250,000
Private placement of common stock, Shares 30,865        
Shares issuable for services 149,994 149,994
Shares issued for reverse stock split $ 1 1
Shares issued for reverse stock split, Shares 1,211        
Ending balance, value at Dec. 31, 2021 $ 6,374 21,602,162 149,994 (30,005,165) (8,246,635)
Ending Balance, Shares at Dec. 31, 2021 6,373,706        
Beginning balance, value at Mar. 31, 2022 $ 10,462 43,406,099 (34,579,771) 8,836,790
Beginning Balance, Shares at Mar. 31, 2022 10,461,898        
Shares issued for services 1,576 1,576
Shares issued for services, Shares 348        
Issuance of common stock and warrants in equity offering, net $ 449 7,371,898 7,372,347
Issuance of common stock and warrants in equity offering, net, Shares 449,438        
Issuance of common stock under equity incentive plan $ 3 13,747 13,750
Stock-based compensation, Shares 2,664        
Stock-based compensation 724,819 724,819
Net loss (3,498,791) (3,498,791)
Ending balance, value at Jun. 30, 2022 $ 10,914 51,518,139 (38,078,562) 13,450,491
Ending Balance, Shares at Jun. 30, 2022 10,914,348        
Beginning balance, value at Mar. 31, 2022 $ 10,462 43,406,099 (34,579,771) 8,836,790
Beginning Balance, Shares at Mar. 31, 2022 10,461,898        
Shares issued for services         $ 1,576
Shares issued for services, Shares         348
Issuance of common stock and warrants in equity offering, net         $ 7,372,347
Net loss         (10,307,682)
Warrants issued with convertible notes        
Ending balance, value at Dec. 31, 2022 $ 10,932 52,900,066 (44,887,453) 8,023,545
Ending Balance, Shares at Dec. 31, 2022 10,932,098        
Beginning balance, value at Jun. 30, 2022 $ 10,914 51,518,139 (38,078,562) 13,450,491
Beginning Balance, Shares at Jun. 30, 2022 10,914,348        
Issuance of common stock under equity incentive plan $ 12 50,368 50,380
Stock-based compensation, Shares 11,375        
Stock-based compensation 692,060 692,060
Net loss (3,450,407) (3,450,407)
Ending balance, value at Sep. 30, 2022 $ 10,926 52,260,567 (41,528,969) 10,742,524
Ending Balance, Shares at Sep. 30, 2022 10,925,723        
Issuance of common stock under equity incentive plan $ 6 12,737 12,743
Stock-based compensation, Shares 6,375        
Stock-based compensation 626,762 626,762
Net loss (3,358,484) (3,358,484)
Ending balance, value at Dec. 31, 2022 $ 10,932 $ 52,900,066 $ (44,887,453) $ 8,023,545
Ending Balance, Shares at Dec. 31, 2022 10,932,098        
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.22.4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Cash Flows from operating activities    
Net loss $ (10,307,682) $ (14,058,154)
Adjustments to reconcile net loss to net cash used in operating activities:    
Gain on PPP note forgiveness (368,780)
Loss on debt extinguishment 1,321,450
Stock-based compensation expense 2,120,513 2,740,086
Depreciation and amortization 92,616 80,268
Shares issued for services 150,412 388,021
Shares issuable for services 149,994
Amortization of lease right-of-use asset 69,381 58,404
Change in lease liability (107,142) (92,826)
Amortization of debt discount 1,454,762
Changes in assets and liabilities:    
Other assets and prepaid expenses (15,577) (25,995)
Accounts payable and accrued expenses (187,217) 1,223,983
Net cash used in operating activities (8,184,696) (7,128,787)
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of property and equipment (573,066) (22,779)
Net cash used in investing activities (573,066) (22,779)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from issuance of common stock and warrants, net 7,372,347
Proceed from private placement, net of issuance costs 250,000
Proceeds from issuance of convertible notes, net 4,137,199
Proceeds from issuance of promissory note 1,500,000
Net cash provided by financing activities 7,372,347 5,887,199
Net decrease in cash and cash equivalents (1,385,415) (1,264,367)
Cash and cash equivalents at beginning of period 9,076,372 1,468,465
Cash and cash equivalents at end of period 7,690,957 204,098
Noncash investing and financing activities:    
Fair value of detachable warrants issued with convertible notes $ 3,700,632
XML 16 R7.htm IDEA: XBRL DOCUMENT v3.22.4
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
9 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 – THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Modular Medical, Inc. (the Company) was incorporated in Nevada in October 1998 under the name Bear Lake Recreation, Inc. The Company had no material business operations from 2002 until approximately 2017 when it acquired all of the issued and outstanding shares of Quasuras, Inc., a Delaware corporation (Quasuras). As the major shareholder of Quasuras retained control of both the Company and Quasuras, the share exchange was accounted for as a reverse merger. As such, the Company recognized the assets and liabilities of Quasuras acquired in the merger at their historical carrying amounts. Prior to the acquisition of Quasuras and, since at least 2002, the Company was a shell company, as defined in Rule 12b-2 promulgated under the Securities Exchange Act of 1934 (the Exchange Act). In June 2017, the Company changed its name from Bear Lake Recreation, Inc. to Modular Medical, Inc.

 

The Company is a development-stage medical device company focused on the design, development and eventual commercialization of an innovative insulin pump to address shortcomings and problems represented by the relatively limited adoption of currently available pumps for insulin-dependent people with diabetes. The Company has developed a hardware technology allowing people with insulin-dependent diabetes to receive their daily insulin in two ways, through a continuous “basal” delivery allowing a small amount of insulin to be in the blood at all times and a “bolus” delivery to address meal time glucose input and to address when the blood glucose level becomes excessively high. By addressing the time and effort required to effectively treat their condition, the Company believes it can address the less technically savvy, less motivated part of the market.

 

In February 2022, the Company completed a public offering of its equity securities, and its common stock was approved to list on the Nasdaq Capital Market under the symbol “MODD” and began trading there on February 10, 2022.

 

Liquidity

 

Financial Accounting Standards Board (FASB) Accounting Standard Update (ASU) No. 2014-15 (ASU 2014-15), Going Concern, requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If management identifies conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, management must consider if there are plans that are probable to be implemented, and whether it is probable that the plans will mitigate the conditions or events raising the substantial doubt about the entity’s ability to continue as a going concern. If the substantial doubt is not alleviated after consideration of management’s plans, the entity must include a statement in the notes to the financial statements indicating that there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued including: 1) the principal conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern, 2) management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and 3) management’s plans to attempt to mitigate the conditions or events causing the substantial doubt about the entity’s ability to continue as a going concern.

 

The Company expects to continue to incur operating losses for the foreseeable future and incur cash outflows from operations as it continues to invest in the development and subsequent commercialization of its product. The Company expects that its research and development and general and administrative expenses will continue to increase, and, as a result, it will eventually need to generate significant revenue to achieve profitability. The Company’s expected operating losses and cash burn raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that these financial statements are issued. Implementation of the Company’s plans and its ability to continue as a going concern will depend upon the Company’s ability to raise additional capital, through the sale of additional equity or debt securities, to support its future operations. There can be no assurance that such additional capital, whether in the form of debt or equity financing, will be sufficient or available and, if available, that such capital will be offered on terms and conditions acceptable to the Company.

The Company’s operating needs include the planned costs to operate its business, fund working capital and capital expenditures. The Company’s future capital requirements and the adequacy of its available funds will depend on many factors, including the Company’s ability to successfully commercialize its product, competing technological and market developments, and the need to enter into collaborations with other companies or acquire other companies or technologies to enhance or complement its product offering. If the Company is unable to secure additional capital, it may be required to curtail its research and development initiatives and take additional measures to reduce costs in order to conserve its cash. These condensed consolidated financial statements do not include any adjustments that might result from this uncertainty.

 

Basis of Presentation

 

The Company’s fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these notes to the condensed consolidated financial statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2023 refers to the fiscal year ending March 31, 2023). The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Quasuras. All significant intercompany transactions and balances have been eliminated in consolidation.

 

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and with the rules and regulations of the United States Security and Exchange Commission (SEC) regarding interim financial reporting. The condensed consolidated balance sheet as of March 31, 2022 has been derived from the audited consolidated financial statements at that date. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with these rules and regulations of the SEC. The information in this report should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in its most recent annual report on Form 10-K filed with the SEC.

 

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary to summarize fairly the Company’s financial position, results of operations and cash flows for the interim periods presented. The operating results for the three months ended December 31, 2022 are not necessarily indicative of the results that may be expected for the year ending March 31, 2023 or for any other future period.

 

Reverse Stock Split

 

On November 24, 2021, the Company filed a certificate of amendment to its amended and restated certificate of incorporation with the Secretary of State of the State of Nevada to effect a 1-for-3 reverse stock split of the Company’s shares of common stock. Such amendment and ratio were previously approved by a majority of the Company’s stockholders and the board of directors. As a result of the reverse stock split, which was effective November 29, 2021, every three shares of the Company’s pre-reverse split outstanding common stock were combined and reclassified into one share of common stock. Proportionate voting rights and other rights of common stock holders were not affected by the reverse stock split. Any fractional shares of common stock resulting from the reverse split were rounded up to the nearest whole share. All stock options outstanding and common stock reserved for issuance under the Company’s equity incentive plans and warrants outstanding immediately prior to the reverse stock split were adjusted by dividing the number of affected shares of common stock by three and, as applicable, multiplying the exercise price by three, as a result of the reverse stock split. All share numbers, share prices, exercise prices and per share amounts have been adjusted, on a retroactive basis to reflect this 1-for-3 reverse stock split.

 

Use of Estimates

 

The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amount of revenues and expenses during the reporting period. Estimates may include those pertaining to accruals, stock-based compensation and income taxes. Actual results could differ from those estimates.

 

Reportable Segment

 

The Company operates in one business segment and uses one measurement of profitability for its business.

 

Research and Development

 

The Company expenses research and development expenditures as incurred.

 

General and Administrative

 

General and administrative expenses consist primarily of payroll and benefit costs, rent, stock-based compensation, legal and accounting fees, and office and other administrative expenses.

 

Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash. The Company maintains its cash at high-quality financial institutions within the United States, which are insured by the Federal Deposit Insurance Corporation up to limits of approximately $250,000. No reserve has been made in the financial statements for any possible loss due to financial institution failure.

 

Risks and Uncertainties

 

The Company is subject to risks from, among other things, competition associated with the industry in general, other risks associated with financing, liquidity requirements, rapidly changing customer requirements, limited operating history and the volatility of public markets.

 

The global outbreak of the coronavirus disease 2019 (COVID-19) was declared a pandemic by the World Health Organization and a national emergency by the U.S. government in March 2020. This has negatively affected the U.S. and global economy, disrupted global supply chains, significantly restricted travel and transportation, resulted in mandated closures and orders to “shelter-in- place” and created significant disruption of the financial markets. The full extent of the COVID-19 impact on the Company’s operational and financial performance will depend on future developments, including the duration and spread of the pandemic and related actions taken by U.S. and foreign government agencies to prevent disease spread, all of which are uncertain, out of the Company’s control, and cannot be predicted.

 

Cash and Cash Equivalents

 

Cash and cash equivalents include cash on hand and cash in demand deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less.

 

Property and Equipment

 

Property and equipment are recorded at historical cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three to five years. Depreciation is recorded in operating expenses in the consolidated statements of operations. Leasehold improvements and assets acquired through capital leases are amortized over the shorter of their estimated useful life or the lease term, and amortization is recorded in operating expenses in the consolidated statements of operations. Construction-in-process includes machinery and equipment and is stated at cost and not depreciated. Depreciation on construction-in-process commences when the assets are ready for their intended use.

 

Fixed assets comprised:

 

 

   December 31,   March 31, 
   2022   2022 
Machinery and equipment  $487,855   $346,358 
Construction-in-process   427,670     
Leasehold improvements   139,197    139,197 
Total property and equipment   1,054,722    485,555 
Less: accumulated depreciation and amortization   (338,313)   (249,596)
Total property and equipment, net  $716,409   $235,959 

 

Fair Value of Financial Instruments

 

The Company measures the fair value of financial instruments using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels:

·Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.
·Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
·Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

 

Due to their short-term nature, the carrying values of cash equivalents, accounts payable and accrued expenses, approximate fair value.

 

Right-of-Use Asset

 

The Company’s right-of-use assets consist of leased assets recognized in accordance with FASB Accounting Standards Codification (ASC) No. 842, Leases which requires lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and the lease liability represents the Company’s obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Leases with a lease term of 12 months or less at inception are not recorded on the condensed consolidated balance sheets and are expensed on a straight-line basis over the lease term in the condensed consolidated statement of operations and comprehensive loss. The Company determines the lease term by agreement with the lessor. In cases where the lease does not provide an implicit interest rate, the Company uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments.

 

Stock-Based Compensation

 

The Company recognizes stock-based compensation for stock options granted to employees and non-employees on a straight-line basis over the requisite service period, usually the vesting period, based on the grant-date fair value. The Company estimates the value of stock options on the date of grant using the Black-Scholes pricing model. The determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the option price, as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the expected stock price volatility over the term of the awards, and projected stock option exercise behaviors.

 

Per-Share Amounts

 

Basic net loss per share is computed by dividing the net loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share gives effect to all potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of incremental shares of common stock issuable upon the exercise of stock options and warrants.

 

For the nine months ended December 31, 2022 and 2021, the following table sets forth securities outstanding which were excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive.

 

   Nine Months Ended
December 31,
 
   2022   2021 
Options to purchase common stock   2,174,198    1,967,188 
Common stock warrants   7,565,588    767,796 
Total   9,739,786    2,734,984 

 

Reclassifications

 

Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations or cash flows.

 

Comprehensive Loss

 

Comprehensive loss represents the changes in equity of an enterprise, other than those resulting from stockholder transactions. Accordingly, comprehensive loss may include certain changes in equity that are excluded from net loss. For the three and nine months ended December 31, 2022 and 2021, the Company’s comprehensive loss was the same as its net loss.

 

Recently Issued Accounting Pronouncement

 

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses. This ASU added a new impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes an allowance for its estimate of expected credit losses and applies to most debt instruments, trade receivables, lease receivables, financial guarantee contracts, and other loan commitments. The CECL model does not have a minimum threshold for recognition of impairment losses and entities will need to measure expected credit losses on assets that have a low risk of loss. This update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years for smaller reporting companies. The adoption of this ASU is not expected to have a material impact on the Company’s results of operations and financial position.

XML 17 R8.htm IDEA: XBRL DOCUMENT v3.22.4
LEASES
9 Months Ended
Dec. 31, 2022
Leases [Abstract]  
LEASES

NOTE 2 – LEASES

 

The Company accounts for the lease of its corporate facility in San Diego, California in accordance with ASC No. 842. The 39- month lease term commenced April 1, 2020, and the lease provides for an initial monthly rent of approximately $12,400 with annual rent increases of approximately 3%. In addition to the minimum lease payments, the Company is responsible for property taxes, insurance and certain other operating costs. The right-to-use asset and corresponding liability for the facility lease have been measured at the present value of the future minimum lease payments. A discount rate of 11%, which approximated the Company’s incremental borrowing rate, was used to measure the lease asset and liability. Lease expense is recognized on a straight-line basis over the lease term.

 

The Company obtained a right-of-use asset of $270,950 in exchange for its obligations under the operating lease. The landlord also provided a lease incentive of approximately $139,000, which was paid to the Company in June 2020, for the Company to make improvements to the leased space. In addition, the Company paid a $100,000 security deposit.

 

Future minimum payments under the facility operating lease, as of December 31, 2022, are listed in the table below.

 

Annual Fiscal Years  Operating
Lease
 
2023   39,507 
2024   40,692 
Less:     
Imputed interest   (2,527)
Present value of lease liabilities  $77,672 

 

Cash paid for amounts included in the measurement of lease liabilities was $118,521 for the nine months ended December 31, 2022. Rent expense was $80,698 for each of the nine-month periods ended December 31, 2022 and 2021 and $26,930 for each of the three-month periods ended December 31, 2022 and 2021.

XML 18 R9.htm IDEA: XBRL DOCUMENT v3.22.4
PPP NOTE
9 Months Ended
Dec. 31, 2022
Ppp Note  
PPP NOTE

NOTE 3 – PPP NOTE

 

On April 24, 2020, the Company received a $368,780 unsecured loan (the PPP Note) under the Paycheck Protection Program (the PPP), which was established under the U.S. government’s Coronavirus Aid, Relief, and Economic Security Act (the CARES Act). The PPP Note to the Company was made through Silicon Valley Bank (the Lender), and the Company entered into a U.S. Small Business Administration Paycheck Protection Program Note (the Agreement) with the Lender evidencing the PPP Note. The full amount of the PPP Note was due in April 2022 and interest accrued on the outstanding principal balance of the PPP Note at a fixed rate of 1.0% per annum, which was deferred for 10 months after the covered period during which the Company used the proceeds.

 

In May 2021, the Lender and the U.S. Small Business Administration notified the Company that the outstanding principal and accrued interest for the PPP Note was forgiven in full. The Company accounted for the forgiveness of the PPP Note in accordance with ASC Topic 470: Debt (ASC 470), and the amount forgiven was recorded as a gain on extinguishment and recognized in the other income line of the consolidated statement of operations.

XML 19 R10.htm IDEA: XBRL DOCUMENT v3.22.4
CONVERTIBLE PROMISSORY NOTES
9 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
CONVERTIBLE PROMISSORY NOTES

NOTE 4 – CONVERTIBLE PROMISSORY NOTES

 

From February through April 2021, the Company sold $2,310,000 of convertible promissory notes (each an Original Note and, collectively, the Original Notes), at par in a private placement transaction effected pursuant to an exemption from the registration requirements under the Securities Act of 1933, as amended. Effective April 30, 2021, pursuant to a revocation and replacement agreement between each holder of an Original Note and the Company, the $2,310,000 of Original Notes and accrued interest thereon as of April 30, 2021 were replaced with $2,360,550 aggregate principal amount of Notes and 2021 Warrants (as defined below). The Company accounted for the replacement of the Original Notes in accordance with ASC 470 and recorded a loss on extinguishment of $1,321,450 and interest expense of $70,647 for unamortized debt issuance costs as of April 30, 2021.

 

In April and May 2021, pursuant to a securities purchase agreement by and between the Company and each investor (the SPA), the Company sold to investors $4,250,000 aggregate principal amount of convertible promissory notes (the Notes) and warrants to purchase shares of its common stock (the 2021 Warrants). The Notes were unsecured obligations of the Company with each Note having a stated maturity date of 12 months from its issue date and accrued interest at a rate of 12% per annum, payable on maturity. If the Company completed an offering of its common stock or other securities in excess of $12,000,000 of gross proceeds (a Qualified Capital Raise, as defined in the Notes), each Note holder would be required to convert its Adjusted Note Amount (as defined below) into the securities of such Qualified Capital Raise. Adjusted Note Amount equals the product of (i) the sum of all outstanding principal plus accrued interest on a Note, multiplied by (ii) 1.25.

 

In connection with the issuance of the Notes, the Company issued the 2021 Warrants to purchase in the aggregate 767,796 shares of its common stock at an initial exercise price of $24.00 per share. The fair value of the 2021 Warrants was $3,700,632, of which $2,379,182 was recorded as a debt discount and amortized to interest expense, and $1,321,450 was recorded as a loss on debt extinguishment. The Company calculated the fair value of the Warrants utilizing the Black-Scholes valuation model with the following assumptions: volatility of 88.98%, risk-free interest rate of 0.86%, a term of 5.75 years and a dividend yield of zero.

 

Upon the closing of a public offering in February 2022, which was a Qualified Capital Raise, in accordance with their terms, the Notes converted into 1,511,276 shares of common stock and the holders of the Notes received an additional 1,511,276 common stock purchase warrants with an exercise price of $6.60 per share. In addition, as a result of the February 2022 equity offering, the exercise price of the 767,796 outstanding 2021 Warrants was reduced to $6.00 per share.

XML 20 R11.htm IDEA: XBRL DOCUMENT v3.22.4
STOCKHOLDERS’ EQUITY (DEFICIT)
9 Months Ended
Dec. 31, 2022
Equity [Abstract]  
STOCKHOLDERS’ EQUITY (DEFICIT)

NOTE 5 – STOCKHOLDERS’ EQUITY (DEFICIT)

 

Placements of Common Stock and Warrants

 

On May 2, 2022, the Company entered into a securities purchase agreement (the Purchase Agreement) with an institutional investor, pursuant to which the Company sold, in a registered direct offering (the Registered Offering), which closed on May 5, 2022, an aggregate of 449,438 shares (the Shares) of the Company’s common stock, par value $0.001 per share, at a purchase price per Share of $4.45 and pre-funded warrants (the Pre-Funded Warrants) to purchase an aggregate of 1,348,314 shares of common stock at a purchase price per Pre-Funded Warrant of $4.44. The Pre-Funded Warrants will be exercisable immediately on the date of issuance at an exercise price of $0.01 per share and may be exercised at any time until all of the Pre-Funded Warrants are exercised in full.

 

In a concurrent private placement under the Purchase Agreement, the Company issued to the Investor warrants (the Private Placement Warrants) to purchase an aggregate of 1,438,202 shares of common stock at an exercise price of $6.60 per share. The Private Placement Warrants will be exercisable beginning on the six-month anniversary of the date of issuance (the Initial Exercise Date) and will expire on the five-year anniversary of the Initial Exercise Date.

Warrants

 

As of December 31, 2022, the Company had the following warrants outstanding:

 

 

Type

  Number of
Shares
   Exercise
Price
   Expiration Date 
Common stock   1,348,314   $0.01     
Common stock   767,796   $6.00    January - February 2027 
Common stock   4,011,276   $6.60    February 2027 
Common stock   1,438,202   $6.60    November 2027 
Total   7,565,588           

 

Other

 

During the nine months ended December 31, 2022 and 2021, the Company issued 348 and 28,334 shares of common stock, respectively, with a fair value of approximately $1,576 and $245,956, respectively, to service providers.

XML 21 R12.htm IDEA: XBRL DOCUMENT v3.22.4
STOCK-BASED COMPENSATION
9 Months Ended
Dec. 31, 2022
Equity [Abstract]  
STOCK-BASED COMPENSATION

NOTE 6 – STOCK-BASED COMPENSATION

 

Amended 2017 Equity Incentive Plan

 

In October 2017, the Company’s board of directors (the Board) approved the 2017 Equity Incentive Plan (the Plan), as amended, with 1,000,000 shares of common stock reserved for issuance. In January 2020 and August 2021, the Board approved increases in the number of shares reserved for issuance under the Plan by 333,334 and 1,333,334 shares, respectively. Under the Plan, eligible employees, directors and consultants may be granted a broad range of awards, including stock options, stock appreciation rights, restricted stock, performance-based awards and restricted stock units. The Plan is administered by the Board or, in the alternative, a committee designated by the Board.

 

Stock-Based Compensation Expense

 

The expense relating to stock options is recognized on a straight-line basis over the requisite service period, usually the vesting period, based on the grant date fair value. As of December 31, 2022, the unamortized compensation cost was $3,443,902 related to stock options and is expected to be recognized as expense over a weighted-average period of approximately 2.07 years.

 

During the three and nine months ended December 31, 2022, the Company awarded 6,375 and 20,414 shares, respectively, to members of the Board in accordance with the compensation plan for non-employee directors. During the nine months ended December 31, 2022, the Company granted options with 10-year terms to purchase 677,199 shares of its common stock to employees, directors and consultants. The fair value of the options granted and shares awarded was $2,503,979. The following assumptions were used in the fair value calculations of the options granted:

 

   Three Months Ended
December 31,
   Nine Months Ended
December 31,
 
   2022   2021   2022   2021 
Risk-free interest rates   3.93% - 3.99%    1.26% - 1.36%    2.82% - 4.06%    0.8% - 1.36% 
Volatility   149%    197% - 253%    149% - 223%    89% - 370% 
Expected life (years)   5.0 - 5.7    5.0 - 6.0    5.0 - 5.7    5.0 - 6.2 

 

The fair values of options at the grant date were estimated utilizing the Black-Scholes valuation model, which includes simplified methods to establish the fair term of options, as well as average volatility. The risk-free interest rate was derived from the Daily Treasury Yield Curve Rates, as published by the U.S. Department of the Treasury as of the grant date for terms equal to the expected terms of the options. A dividend yield of zero was applied because the Company has never paid dividends and has no intention to pay dividends in the foreseeable future. The Company accounts for forfeitures as they occur.

A summary of stock option activity under the Plan is presented below:

 

       Options Outstanding 
   Shares
Available
for Grant
   Number of
Shares
   Weighted
Average
Exercise
Prices
 
Balance at March 31, 2022   989,466    1,650,705   $6.58 
Options granted   (265,634)   265,634    4.35 
Share awards   (2,664)        
Options cancelled and returned to the Plan   96,668    (96,668)   7.69 
Balance at June 30, 2022   817,836    1,819,671    6.19 
Options granted   (241,023)   241,023    4.35 
Share awards   (11,375)        
Options cancelled and returned to the Plan   30,444    (30,444)   4.67 
Balance at September 30, 2022   595,882    2,030,250    6.00 
Options granted   (170,542)   170,542    2.00 
Share awards   (6,375)        
Options cancelled and returned to the Plan   26,594    (26,594)   5.82 
Balance at December 31, 2022   445,559    2,174,198   $5.69 

 

There were no stock options exercised during the nine months ended December 31, 2022 and 2021.

 

The following table summarizes the range of outstanding and exercisable options as of December 31, 2022:

 

   Options Outstanding   Options Exercisable 
Range of Exercise Price   Number
Outstanding
    Weighted
Average
Remaining
Contractual
Life (in Years)
    Weighted
Average
Exercise
Price
    Number
Exercisable
    Weighted
Average
Exercise
Price
    Aggregate
Intrinsic
value
 
$1.98 - $17.70   2,174,198    7.94   $5.69    1,360,318   $5.87   $8,894 

 

The intrinsic value per share is calculated as the excess of the closing price of the common stock on the Company’s principal trading market over the exercise price of the option.

 

The Company is required to present the tax benefits resulting from tax deductions in excess of the compensation cost recognized from the exercise of stock options as financing cash flows in the consolidated statements of cash flows. For the nine months ended December 31, 2022 and 2021, there were no such tax benefits associated with the exercise of stock options, as no stock options were exercised.

XML 22 R13.htm IDEA: XBRL DOCUMENT v3.22.4
INCOME TAXES
9 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 7 – INCOME TAXES

 

The Company determines deferred tax assets and liabilities based upon the differences between the financial statement and tax bases of the Company’s assets and liabilities using tax rates in effect for the year in which the Company expects the differences to affect taxable income. A valuation allowance is established for any deferred tax assets for which it is more likely than not that all or a portion of the deferred tax assets will not be realized. Based on the available information and other factors, management believes it is more likely than not that its federal and state net deferred tax assets will not be fully realized, and the Company has recorded a full valuation allowance.

 

The Company files U.S. federal and state income tax returns in jurisdictions with varying statutes of limitations. All tax returns for fiscal 2016 to fiscal 2022 may be subject to examination by the U.S. federal and state tax authorities. As of December 31, 2022, the Company has not recorded any liability for unrecognized tax benefits related to uncertain tax positions.

XML 23 R14.htm IDEA: XBRL DOCUMENT v3.22.4
COMMITMENTS & CONTINGENCIES
9 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS & CONTINGENCIES

NOTE 8 – COMMITMENTS & CONTINGENCIES

 

Litigations, Claims and Assessments

In the normal course of business, the Company may be involved in legal proceedings, claims and assessments arising in the ordinary course of business. The Company records legal costs associated with loss contingencies as incurred and accrues for all probable and estimable settlements.

 

Indemnification

In the ordinary course of business, the Company enters into contractual arrangements under which it may agree to indemnify the counterparties from any losses incurred relating to breach of representations and warranties, failure to perform certain covenants, or claims and losses arising from certain events as outlined within the particular contract, which may include, for example, losses arising from litigation or claims relating to past performance. Such indemnification clauses may not be subject to maximum loss clauses. The Company has also entered into indemnification agreements with its officers and directors. No amounts were reflected in the Company’s consolidated financial statements for the nine months ended December 31, 2022 and 2021 related to these indemnifications. The Company has not estimated the maximum potential amount of indemnification liability under these agreements due to the limited history of prior claims and the unique facts and circumstances applicable to each particular agreement. To date, the Company has not made any payments related to these indemnification agreements, and no claims for payment have been made under such agreements.

 

Purchase Obligations

The Company's primary purchase obligations include purchase orders for machinery and equipment. At December 31, 2022, the Company had outstanding purchase orders for machinery and equipment and related expenditures of approximately $735,000.

XML 24 R15.htm IDEA: XBRL DOCUMENT v3.22.4
SUBSEQUENT EVENTS
9 Months Ended
Dec. 31, 2022
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 9 – SUBSEQUENT EVENTS

 

New Lease Agreement

On January 5, 2023, the Company entered into a lease agreement (the Thornhill Lease) with Michael Summers (the Lessor) for a new headquarters facility pursuant to which the Company will lease approximately 24,000 square feet of a building located in San Diego, California, commencing on or about February 1, 2023. The monthly base rent is $36,000 for the first 12 months of the lease and will increase by 4% of the prior year’s base rent at the beginning of each 12-month period thereafter. The lease term is 48 months.

 

Under the Thornhill Lease, the Company will pay the Lessor a monthly fee for its pro-rated share of specified common area charges, including maintenance costs, property taxes and insurance, in addition to base rent. The monthly fee for the common area charges is approximately $10,700 and will be adjusted based on actual costs incurred by the Lessor.

 

Amended 2017 Equity Incentive Plan

In January 2023, the Company’s stockholders approved an increase in the number of shares reserved for issuance under the Plan by 2,000,000 shares.

XML 25 R16.htm IDEA: XBRL DOCUMENT v3.22.4
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
9 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Liquidity

Liquidity

 

Financial Accounting Standards Board (FASB) Accounting Standard Update (ASU) No. 2014-15 (ASU 2014-15), Going Concern, requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If management identifies conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, management must consider if there are plans that are probable to be implemented, and whether it is probable that the plans will mitigate the conditions or events raising the substantial doubt about the entity’s ability to continue as a going concern. If the substantial doubt is not alleviated after consideration of management’s plans, the entity must include a statement in the notes to the financial statements indicating that there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued including: 1) the principal conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern, 2) management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and 3) management’s plans to attempt to mitigate the conditions or events causing the substantial doubt about the entity’s ability to continue as a going concern.

 

The Company expects to continue to incur operating losses for the foreseeable future and incur cash outflows from operations as it continues to invest in the development and subsequent commercialization of its product. The Company expects that its research and development and general and administrative expenses will continue to increase, and, as a result, it will eventually need to generate significant revenue to achieve profitability. The Company’s expected operating losses and cash burn raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that these financial statements are issued. Implementation of the Company’s plans and its ability to continue as a going concern will depend upon the Company’s ability to raise additional capital, through the sale of additional equity or debt securities, to support its future operations. There can be no assurance that such additional capital, whether in the form of debt or equity financing, will be sufficient or available and, if available, that such capital will be offered on terms and conditions acceptable to the Company.

The Company’s operating needs include the planned costs to operate its business, fund working capital and capital expenditures. The Company’s future capital requirements and the adequacy of its available funds will depend on many factors, including the Company’s ability to successfully commercialize its product, competing technological and market developments, and the need to enter into collaborations with other companies or acquire other companies or technologies to enhance or complement its product offering. If the Company is unable to secure additional capital, it may be required to curtail its research and development initiatives and take additional measures to reduce costs in order to conserve its cash. These condensed consolidated financial statements do not include any adjustments that might result from this uncertainty.

 

Basis of Presentation

Basis of Presentation

 

The Company’s fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these notes to the condensed consolidated financial statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2023 refers to the fiscal year ending March 31, 2023). The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Quasuras. All significant intercompany transactions and balances have been eliminated in consolidation.

 

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and with the rules and regulations of the United States Security and Exchange Commission (SEC) regarding interim financial reporting. The condensed consolidated balance sheet as of March 31, 2022 has been derived from the audited consolidated financial statements at that date. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with these rules and regulations of the SEC. The information in this report should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in its most recent annual report on Form 10-K filed with the SEC.

 

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary to summarize fairly the Company’s financial position, results of operations and cash flows for the interim periods presented. The operating results for the three months ended December 31, 2022 are not necessarily indicative of the results that may be expected for the year ending March 31, 2023 or for any other future period.

 

Reverse Stock Split

Reverse Stock Split

 

On November 24, 2021, the Company filed a certificate of amendment to its amended and restated certificate of incorporation with the Secretary of State of the State of Nevada to effect a 1-for-3 reverse stock split of the Company’s shares of common stock. Such amendment and ratio were previously approved by a majority of the Company’s stockholders and the board of directors. As a result of the reverse stock split, which was effective November 29, 2021, every three shares of the Company’s pre-reverse split outstanding common stock were combined and reclassified into one share of common stock. Proportionate voting rights and other rights of common stock holders were not affected by the reverse stock split. Any fractional shares of common stock resulting from the reverse split were rounded up to the nearest whole share. All stock options outstanding and common stock reserved for issuance under the Company’s equity incentive plans and warrants outstanding immediately prior to the reverse stock split were adjusted by dividing the number of affected shares of common stock by three and, as applicable, multiplying the exercise price by three, as a result of the reverse stock split. All share numbers, share prices, exercise prices and per share amounts have been adjusted, on a retroactive basis to reflect this 1-for-3 reverse stock split.

 

Use of Estimates

Use of Estimates

 

The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amount of revenues and expenses during the reporting period. Estimates may include those pertaining to accruals, stock-based compensation and income taxes. Actual results could differ from those estimates.

Reportable Segment

Reportable Segment

 

The Company operates in one business segment and uses one measurement of profitability for its business.

 

Research and Development

Research and Development

 

The Company expenses research and development expenditures as incurred.

 

General and Administrative

General and Administrative

 

General and administrative expenses consist primarily of payroll and benefit costs, rent, stock-based compensation, legal and accounting fees, and office and other administrative expenses.

 

Concentration of Credit Risk

Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash. The Company maintains its cash at high-quality financial institutions within the United States, which are insured by the Federal Deposit Insurance Corporation up to limits of approximately $250,000. No reserve has been made in the financial statements for any possible loss due to financial institution failure.

 

Risks and Uncertainties

Risks and Uncertainties

 

The Company is subject to risks from, among other things, competition associated with the industry in general, other risks associated with financing, liquidity requirements, rapidly changing customer requirements, limited operating history and the volatility of public markets.

 

The global outbreak of the coronavirus disease 2019 (COVID-19) was declared a pandemic by the World Health Organization and a national emergency by the U.S. government in March 2020. This has negatively affected the U.S. and global economy, disrupted global supply chains, significantly restricted travel and transportation, resulted in mandated closures and orders to “shelter-in- place” and created significant disruption of the financial markets. The full extent of the COVID-19 impact on the Company’s operational and financial performance will depend on future developments, including the duration and spread of the pandemic and related actions taken by U.S. and foreign government agencies to prevent disease spread, all of which are uncertain, out of the Company’s control, and cannot be predicted.

 

Cash and Cash Equivalents

Cash and Cash Equivalents

 

Cash and cash equivalents include cash on hand and cash in demand deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less.

 

Property and Equipment

Property and Equipment

 

Property and equipment are recorded at historical cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three to five years. Depreciation is recorded in operating expenses in the consolidated statements of operations. Leasehold improvements and assets acquired through capital leases are amortized over the shorter of their estimated useful life or the lease term, and amortization is recorded in operating expenses in the consolidated statements of operations. Construction-in-process includes machinery and equipment and is stated at cost and not depreciated. Depreciation on construction-in-process commences when the assets are ready for their intended use.

 

Fixed assets comprised:

 

 

   December 31,   March 31, 
   2022   2022 
Machinery and equipment  $487,855   $346,358 
Construction-in-process   427,670     
Leasehold improvements   139,197    139,197 
Total property and equipment   1,054,722    485,555 
Less: accumulated depreciation and amortization   (338,313)   (249,596)
Total property and equipment, net  $716,409   $235,959 

Fair Value of Financial Instruments

Fair Value of Financial Instruments

 

The Company measures the fair value of financial instruments using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels:

·Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.
·Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
·Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

 

Due to their short-term nature, the carrying values of cash equivalents, accounts payable and accrued expenses, approximate fair value.

 

Right-of-Use Asset

Right-of-Use Asset

 

The Company’s right-of-use assets consist of leased assets recognized in accordance with FASB Accounting Standards Codification (ASC) No. 842, Leases which requires lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and the lease liability represents the Company’s obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Leases with a lease term of 12 months or less at inception are not recorded on the condensed consolidated balance sheets and are expensed on a straight-line basis over the lease term in the condensed consolidated statement of operations and comprehensive loss. The Company determines the lease term by agreement with the lessor. In cases where the lease does not provide an implicit interest rate, the Company uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments.

 

Stock-Based Compensation

Stock-Based Compensation

 

The Company recognizes stock-based compensation for stock options granted to employees and non-employees on a straight-line basis over the requisite service period, usually the vesting period, based on the grant-date fair value. The Company estimates the value of stock options on the date of grant using the Black-Scholes pricing model. The determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the option price, as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the expected stock price volatility over the term of the awards, and projected stock option exercise behaviors.

 

Per-Share Amounts

Per-Share Amounts

 

Basic net loss per share is computed by dividing the net loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share gives effect to all potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of incremental shares of common stock issuable upon the exercise of stock options and warrants.

 

For the nine months ended December 31, 2022 and 2021, the following table sets forth securities outstanding which were excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive.

 

   Nine Months Ended
December 31,
 
   2022   2021 
Options to purchase common stock   2,174,198    1,967,188 
Common stock warrants   7,565,588    767,796 
Total   9,739,786    2,734,984 

 

Reclassifications

Reclassifications

 

Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations or cash flows.

 

Comprehensive Loss

Comprehensive Loss

 

Comprehensive loss represents the changes in equity of an enterprise, other than those resulting from stockholder transactions. Accordingly, comprehensive loss may include certain changes in equity that are excluded from net loss. For the three and nine months ended December 31, 2022 and 2021, the Company’s comprehensive loss was the same as its net loss.

Recently Issued Accounting Pronouncement

Recently Issued Accounting Pronouncement

 

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses. This ASU added a new impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes an allowance for its estimate of expected credit losses and applies to most debt instruments, trade receivables, lease receivables, financial guarantee contracts, and other loan commitments. The CECL model does not have a minimum threshold for recognition of impairment losses and entities will need to measure expected credit losses on assets that have a low risk of loss. This update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years for smaller reporting companies. The adoption of this ASU is not expected to have a material impact on the Company’s results of operations and financial position.

XML 26 R17.htm IDEA: XBRL DOCUMENT v3.22.4
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
9 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Fixed Assets

Fixed assets comprised:

 

 

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
   December 31,   March 31, 
   2022   2022 
Machinery and equipment  $487,855   $346,358 
Construction-in-process   427,670     
Leasehold improvements   139,197    139,197 
Total property and equipment   1,054,722    485,555 
Less: accumulated depreciation and amortization   (338,313)   (249,596)
Total property and equipment, net  $716,409   $235,959 
Schedule of Anti-Dilutive Shares

For the nine months ended December 31, 2022 and 2021, the following table sets forth securities outstanding which were excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive.

 

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2)
   Nine Months Ended
December 31,
 
   2022   2021 
Options to purchase common stock   2,174,198    1,967,188 
Common stock warrants   7,565,588    767,796 
Total   9,739,786    2,734,984 
XML 27 R18.htm IDEA: XBRL DOCUMENT v3.22.4
LEASES (Tables)
9 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Schedule of Future minimum Lease Payment

Future minimum payments under the facility operating lease, as of December 31, 2022, are listed in the table below.

 

LEASES
Annual Fiscal Years  Operating
Lease
 
2023   39,507 
2024   40,692 
Less:     
Imputed interest   (2,527)
Present value of lease liabilities  $77,672 
XML 28 R19.htm IDEA: XBRL DOCUMENT v3.22.4
STOCKHOLDERS’ EQUITY (DEFICIT) (Tables)
9 Months Ended
Dec. 31, 2022
Equity [Abstract]  
Schedule of Warrant Outstanding

As of December 31, 2022, the Company had the following warrants outstanding:

 

STOCKHOLDERS' EQUITY (DEFICIT)

 

Type

  Number of
Shares
   Exercise
Price
   Expiration Date 
Common stock   1,348,314   $0.01     
Common stock   767,796   $6.00    January - February 2027 
Common stock   4,011,276   $6.60    February 2027 
Common stock   1,438,202   $6.60    November 2027 
Total   7,565,588           
XML 29 R20.htm IDEA: XBRL DOCUMENT v3.22.4
STOCK-BASED COMPENSATION (Tables)
9 Months Ended
Dec. 31, 2022
Equity [Abstract]  
Schedule of Fair value Assumptions of Options

STOCK-BASED COMPENSATION
   Three Months Ended
December 31,
   Nine Months Ended
December 31,
 
   2022   2021   2022   2021 
Risk-free interest rates   3.93% - 3.99%    1.26% - 1.36%    2.82% - 4.06%    0.8% - 1.36% 
Volatility   149%    197% - 253%    149% - 223%    89% - 370% 
Expected life (years)   5.0 - 5.7    5.0 - 6.0    5.0 - 5.7    5.0 - 6.2 
Schedule of Stock Option activity

A summary of stock option activity under the Plan is presented below:

 

STOCK-BASED COMPENSATION (Details 2)
       Options Outstanding 
   Shares
Available
for Grant
   Number of
Shares
   Weighted
Average
Exercise
Prices
 
Balance at March 31, 2022   989,466    1,650,705   $6.58 
Options granted   (265,634)   265,634    4.35 
Share awards   (2,664)        
Options cancelled and returned to the Plan   96,668    (96,668)   7.69 
Balance at June 30, 2022   817,836    1,819,671    6.19 
Options granted   (241,023)   241,023    4.35 
Share awards   (11,375)        
Options cancelled and returned to the Plan   30,444    (30,444)   4.67 
Balance at September 30, 2022   595,882    2,030,250    6.00 
Options granted   (170,542)   170,542    2.00 
Share awards   (6,375)        
Options cancelled and returned to the Plan   26,594    (26,594)   5.82 
Balance at December 31, 2022   445,559    2,174,198   $5.69 
Schedule of Outstanding and Exercisable Option, Range

The following table summarizes the range of outstanding and exercisable options as of December 31, 2022:

 

STOCK-BASED COMPENSATION (Details 3)
   Options Outstanding   Options Exercisable 
Range of Exercise Price   Number
Outstanding
    Weighted
Average
Remaining
Contractual
Life (in Years)
    Weighted
Average
Exercise
Price
    Number
Exercisable
    Weighted
Average
Exercise
Price
    Aggregate
Intrinsic
value
 
$1.98 - $17.70   2,174,198    7.94   $5.69    1,360,318   $5.87   $8,894 
XML 30 R21.htm IDEA: XBRL DOCUMENT v3.22.4
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)
Dec. 31, 2022
Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Machinery and equipment $ 487,855 $ 346,358
Construction-in-process 427,670
Leasehold improvements 139,197 139,197
Total property and equipment 1,054,722 485,555
Less: accumulated depreciation and amortization (338,313) (249,596)
Total property and equipment, net $ 716,409 $ 235,959
XML 31 R22.htm IDEA: XBRL DOCUMENT v3.22.4
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - shares
9 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Options to purchase common stock 2,174,198 1,967,188
Common stock warrants 7,565,588 767,796
Total 9,739,786 2,734,984
XML 32 R23.htm IDEA: XBRL DOCUMENT v3.22.4
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)
Nov. 24, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Stockholders' Equity, Reverse Stock Split On November 24, 2021, the Company filed a certificate of amendment to its amended and restated certificate of incorporation with the Secretary of State of the State of Nevada to effect a 1-for-3 reverse stock split of the Company’s shares of common stock.
XML 33 R24.htm IDEA: XBRL DOCUMENT v3.22.4
LEASES (Details)
Dec. 31, 2022
USD ($)
Leases [Abstract]  
2023 $ 39,507
2024 40,692
Imputed interest (2,527)
Present value of lease liabilities $ 77,672
XML 34 R25.htm IDEA: XBRL DOCUMENT v3.22.4
LEASES (Details Narrative) - USD ($)
3 Months Ended 9 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]        
Cash Paid for Lease Liabilities $ 118,521   $ 118,521  
Operating Leases, Rent Expense $ 26,930 $ 26,930 $ 80,698 $ 80,698
XML 35 R26.htm IDEA: XBRL DOCUMENT v3.22.4
PPP NOTE (Details Narrative)
Apr. 24, 2020
USD ($)
Ppp Note  
Unsecured Debt, Current $ 368,780
XML 36 R27.htm IDEA: XBRL DOCUMENT v3.22.4
CONVERTIBLE PROMISSORY NOTES (Details Narrative) - USD ($)
1 Months Ended 3 Months Ended 9 Months Ended
Apr. 30, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
May 31, 2021
Short-Term Debt [Line Items]            
Gain (Loss) on Extinguishment of Debt $ 1,321,450 $ 1,321,450  
Amortization of Debt Issuance Costs 70,647          
Warrant [Member]            
Short-Term Debt [Line Items]            
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate         88.98%  
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate         0.86%  
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term         5 years 9 months  
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate         0.00%  
Convertible Notes Payable [Member]            
Short-Term Debt [Line Items]            
Convertible Notes Payable $ 2,310,000         $ 4,250,000
XML 37 R28.htm IDEA: XBRL DOCUMENT v3.22.4
STOCKHOLDERS' EQUITY (DEFICIT) (Details) - $ / shares
Dec. 31, 2022
Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Class of Warrant or Right, Outstanding 7,565,588 767,796
Warrant 1 [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Class of Warrant or Right, Outstanding 1,348,314  
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price $ 0.01  
Warrant 2 [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Class of Warrant or Right, Outstanding 767,796  
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price $ 6.00  
Warrant 3 [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Class of Warrant or Right, Outstanding 4,011,276  
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price $ 6.60  
Warrant 4 [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Class of Warrant or Right, Outstanding 1,438,202  
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price $ 6.60  
XML 38 R29.htm IDEA: XBRL DOCUMENT v3.22.4
STOCKHOLDERS’ EQUITY (DEFICIT) (Details Narrative) - USD ($)
3 Months Ended 9 Months Ended
Jun. 30, 2022
Dec. 31, 2021
Jun. 30, 2021
Dec. 31, 2022
Dec. 31, 2021
Equity [Abstract]          
Stock Issued During Period, Shares, Issued for Services       348 28,334
Stock Issued During Period, Value, Issued for Services $ 1,576 $ 73,756 $ 172,200 $ 1,576 $ 245,956
XML 39 R30.htm IDEA: XBRL DOCUMENT v3.22.4
STOCK-BASED COMPENSATION (Details)
3 Months Ended 9 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate 149.00%      
Minimum [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate 3.93% 1.26% 2.82% 0.80%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate   197.00% 149.00% 89.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term 5 years 5 years 5 years 5 years
Maximum [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate 3.99% 1.36% 4.06% 1.36%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate   253.00% 223.00% 370.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term 5 years 8 months 12 days 6 years 5 years 8 months 12 days 6 years 2 months 12 days
XML 40 R31.htm IDEA: XBRL DOCUMENT v3.22.4
STOCK-BASED COMPENSATION (Details 2) - $ / shares
3 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Offsetting Assets [Line Items]      
Options to purchase common stock 2,174,198    
Equity Option [Member]      
Offsetting Assets [Line Items]      
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant 595,882 817,836 989,466
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Beginning Balance 2,030,250 1,819,671 1,650,705
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance $ 6.00 $ 6.19 $ 6.58
Granted (170,542) (241,023) (265,634)
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross 170,542 241,023 265,634
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price $ 2.00 $ 4.35 $ 4.35
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesGrantedAwards] (6,375) (11,375) (2,664)
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesCancelledAvailableForGrant] 26,594 30,444 96,668
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures and Expirations in Period (26,594) (30,444) (96,668)
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price $ 5.82 $ 4.67 $ 7.69
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant 445,559 595,882 817,836
Options to purchase common stock 2,174,198 2,030,250 1,819,671
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance $ 5.69 $ 6.00 $ 6.19
XML 41 R32.htm IDEA: XBRL DOCUMENT v3.22.4
STOCK-BASED COMPENSATION (Details 3) - USD ($)
3 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Offsetting Assets [Line Items]          
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number 2,174,198       1,967,188
Equity Option [Member]          
Offsetting Assets [Line Items]          
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number 2,174,198 2,030,250 1,819,671 1,650,705  
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term 7 years 11 months 8 days        
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price $ 5.69 $ 6.00 $ 6.19 $ 6.58  
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number 1,360,318        
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price $ 5.87        
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Intrinsic Value $ 8,894        
Equity Option [Member] | Minimum [Member]          
Offsetting Assets [Line Items]          
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Exercise Price $ 1.98        
Equity Option [Member] | Maximum [Member]          
Offsetting Assets [Line Items]          
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Exercise Price $ 17.70        
XML 42 R33.htm IDEA: XBRL DOCUMENT v3.22.4
STOCK-BASED COMPENSATION (Details Narrative) - shares
1 Months Ended
Oct. 31, 2017
Aug. 31, 2021
Jan. 31, 2020
Equity [Abstract]      
Shares Approved under Equity Incentive Plan 1,000,000    
Common Stock, Capital Shares Reserved for Future Issuance   1,333,334 333,334
XML 43 R34.htm IDEA: XBRL DOCUMENT v3.22.4
SUBSEQUENT EVENTS (Details Narrative) - shares
1 Months Ended
Jan. 31, 2023
Oct. 31, 2017
Subsequent Event [Line Items]    
Shares approved under Equity Incentive Plan   1,000,000
Subsequent Event [Member]    
Subsequent Event [Line Items]    
Shares approved under Equity Incentive Plan 2,000,000  
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Bernardo Drive San Diego CA 92127 (858) 800-3500 Common Stock, par value $0.001 per share MODD NASDAQ Yes Yes Non-accelerated Filer true true false false 10932098 7690957 9076372 180164 313422 100000 7971121 9389794 716409 235959 51312 120693 100000 767721 456652 8738842 9846446 382080 299951 255545 524891 77672 144857 715297 969699 39957 715297 1009656 0.001 0.001 5000000 5000000 0 0 0 0 0.001 0.001 50000000 50000000 10932098 10932098 10461898 10461898 10932 10462 52900066 43406099 -44887453 -34579771 8023545 8836790 8738842 9846446 2196546 1849399 6804069 5742911 1161351 1981665 3502029 5156152 3357897 3831064 10306098 10899063 -3357897 -3831064 -10306098 -10899063 -587 4 16 368876 1010247 2204917 -1321450 -3358484 -4841307 -10306082 -14056554 1600 1600 -3358484 -4841307 -10307682 -14058154 -0.31 -0.76 -0.95 -2.22 10925862 6354145 10863082 6331982 10461898 10462 43406099 -34579771 8836790 348 1576 1576 449438 449 7371898 7372347 2664 3 13747 13750 724819 724819 -3498791 -3498791 10914348 10914 51518139 -38078562 13450491 11375 12 50368 50380 692060 692060 -3450407 -3450407 10925723 10926 52260567 -41528969 10742524 6375 6 12737 12743 626762 626762 -3358484 -3358484 10932098 10932 52900066 -44887453 8023545 6302050 6302 14665559 -15947010 -1275149 20000 20 172180 172200 3700632 3700632 1836 2 32495 32497 623423 623423 -4835091 -4835091 6323886 6324 19194289 -20782101 -1581488 3635 4 862427 862431 -4381757 -4381757 6327521 6328 20056716 -25163858 -5100814 30865 31 249969 250000 8334 8 73748 73756 149994 149994 1211 1 1 5775 6 1221729 1221735 -4841307 -4841307 6373706 6374 21602162 149994 -30005165 -8246635 -10307682 -14058154 -368780 -1321450 2120513 2740086 92616 80268 150412 388021 149994 69381 58404 -107142 -92826 1454762 -15577 -25995 -187217 1223983 -8184696 -7128787 573066 22779 -573066 -22779 7372347 250000 4137199 1500000 7372347 5887199 -1385415 -1264367 9076372 1468465 7690957 204098 3700632 <p id="xdx_80C_eus-gaap--OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureAndSignificantAccountingPoliciesTextBlock_zec4kiJFWWl" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"><b>NOTE 1 – <span id="xdx_82D_zzqml4favjo">THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Modular Medical, Inc. (the Company) was incorporated in Nevada in October 1998 under the name Bear Lake Recreation, Inc. The Company had no material business operations from 2002 until approximately 2017 when it acquired all of the issued and outstanding shares of Quasuras, Inc., a Delaware corporation (Quasuras). As the major shareholder of Quasuras retained control of both the Company and Quasuras, the share exchange was accounted for as a reverse merger. As such, the Company recognized the assets and liabilities of Quasuras acquired in the merger at their historical carrying amounts. Prior to the acquisition of Quasuras and, since at least 2002, the Company was a shell company, as defined in Rule 12b-2 promulgated under the Securities Exchange Act of 1934 (the Exchange Act). In June 2017, the Company changed its name from Bear Lake Recreation, Inc. to Modular Medical, Inc.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The Company is a development-stage medical device company focused on the design, development and eventual commercialization of an innovative insulin pump to address shortcomings and problems represented by the relatively limited adoption of currently available pumps for insulin-dependent people with diabetes. The Company has developed a hardware technology allowing people with insulin-dependent diabetes to receive their daily insulin in two ways, through a continuous “basal” delivery allowing a small amount of insulin to be in the blood at all times and a “bolus” delivery to address meal time glucose input and to address when the blood glucose level becomes excessively high. By addressing the time and effort required to effectively treat their condition, the Company believes it can address the less technically savvy, less motivated part of the market.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">In February 2022, the Company completed a public offering of its equity securities, and its common stock was approved to list on the Nasdaq Capital Market under the symbol “MODD” and began trading there on February 10, 2022.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_841_eus-gaap--SubstantialDoubtAboutGoingConcernTextBlock_zDpZfpoBbIeg" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_86B_zPmKtm06Ta8i">Liquidity</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Financial Accounting Standards Board (FASB) Accounting Standard Update (ASU) No. 2014-15 (ASU 2014-15), <i>Going Concern</i>, requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If management identifies conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, management must consider if there are plans that are probable to be implemented, and whether it is probable that the plans will mitigate the conditions or events raising the substantial doubt about the entity’s ability to continue as a going concern. If the substantial doubt is not alleviated after consideration of management’s plans, the entity must include a statement in the notes to the financial statements indicating that there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued including: 1) the principal conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern, 2) management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and 3) management’s plans to attempt to mitigate the conditions or events causing the substantial doubt about the entity’s ability to continue as a going concern.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The Company expects to continue to incur operating losses for the foreseeable future and incur cash outflows from operations as it continues to invest in the development and subsequent commercialization of its product. The Company expects that its research and development and general and administrative expenses will continue to increase, and, as a result, it will eventually need to generate significant revenue to achieve profitability. The Company’s expected operating losses and cash burn raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that these financial statements are issued. Implementation of the Company’s plans and its ability to continue as a going concern will depend upon the Company’s ability to raise additional capital, through the sale of additional equity or debt securities, to support its future operations. There can be no assurance that such additional capital, whether in the form of debt or equity financing, will be sufficient or available and, if available, that such capital will be offered on terms and conditions acceptable to the Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The Company’s operating needs include the planned costs to operate its business, fund working capital and capital expenditures. The Company’s future capital requirements and the adequacy of its available funds will depend on many factors, including the Company’s ability to successfully commercialize its product, competing technological and market developments, and the need to enter into collaborations with other companies or acquire other companies or technologies to enhance or complement its product offering. If the Company is unable to secure additional capital, it may be required to curtail its research and development initiatives and take additional measures to reduce costs in order to conserve its cash. These condensed consolidated financial statements do not include any adjustments that might result from this uncertainty.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_842_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_zZZzEXlMHnT9" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_86A_zn1ZRRo0BOub">Basis of Presentation</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The Company’s fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these notes to the condensed consolidated financial statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2023 refers to the fiscal year ending March 31, 2023). The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Quasuras. All significant intercompany transactions and balances have been eliminated in consolidation.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and with the rules and regulations of the United States Security and Exchange Commission (SEC) regarding interim financial reporting. The condensed consolidated balance sheet as of March 31, 2022 has been derived from the audited consolidated financial statements at that date. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with these rules and regulations of the SEC. The information in this report should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in its most recent annual report on Form 10-K filed with the SEC.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary to summarize fairly the Company’s financial position, results of operations and cash flows for the interim periods presented. The operating results for the three months ended December 31, 2022 are not necessarily indicative of the results that may be expected for the year ending March 31, 2023 or for any other future period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_842_ecustom--ReverseStockSplitPolicyTextBlock_zDtxCc97np96" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_864_zbhhKuH56ld4">Reverse Stock Split</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"><span id="xdx_90A_eus-gaap--StockholdersEquityReverseStockSplit_c20211124__20211124_zuC1uXBhVjj5">On November 24, 2021, the Company filed a certificate of amendment to its amended and restated certificate of incorporation with the Secretary of State of the State of Nevada to effect a 1-for-3 reverse stock split of the Company’s shares of common stock.</span> Such amendment and ratio were previously approved by a majority of the Company’s stockholders and the board of directors. As a result of the reverse stock split, which was effective November 29, 2021, every three shares of the Company’s pre-reverse split outstanding common stock were combined and reclassified into one share of common stock. Proportionate voting rights and other rights of common stock holders were not affected by the reverse stock split. Any fractional shares of common stock resulting from the reverse split were rounded up to the nearest whole share. All stock options outstanding and common stock reserved for issuance under the Company’s equity incentive plans and warrants outstanding immediately prior to the reverse stock split were adjusted by dividing the number of affected shares of common stock by three and, as applicable, multiplying the exercise price by three, as a result of the reverse stock split. All share numbers, share prices, exercise prices and per share amounts have been adjusted, on a retroactive basis to reflect this 1-for-3 reverse stock split.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_846_eus-gaap--UseOfEstimates_zrIP3vYidsWc" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_866_z8Z5c4xUWGCj">Use of Estimates</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amount of revenues and expenses during the reporting period. Estimates may include those pertaining to accruals, stock-based compensation and income taxes. Actual results could differ from those estimates.</span></p> <p id="xdx_85B_z8KDm984Q1Lg" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"> </p> <p id="xdx_84C_eus-gaap--SegmentReportingPolicyPolicyTextBlock_z9MSNur83Mqc" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_868_zJCsoIzppzZe">Reportable Segment</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt">The Company operates in one business segment and uses one measurement of profitability for its business.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_84A_eus-gaap--ResearchAndDevelopmentExpensePolicy_zxwOP7ar9flg" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_86A_zTvjFgxSCvOh">Research and Development</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt">The Company expenses research and development expenditures as incurred.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_840_eus-gaap--SellingGeneralAndAdministrativeExpensesPolicyTextBlock_zFMQFTk4oY4l" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_868_zyYHQ62Ptux1">General and Administrative</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">General and administrative expenses consist primarily of payroll and benefit costs, rent, stock-based compensation, legal and accounting fees, and office and other administrative expenses.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"> </p> <p id="xdx_84C_eus-gaap--ConcentrationRiskCreditRisk_zmQbxT9GHOd7" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_86D_zXSrMpy0xax1">Concentration of Credit Risk</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash. The Company maintains its cash at high-quality financial institutions within the United States, which are insured by the Federal Deposit Insurance Corporation up to limits of approximately $250,000. No reserve has been made in the financial statements for any possible loss due to financial institution failure.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_847_ecustom--RisksAndUncertaintiesPolicyTextBlock_zitVuyry7Z2f" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_860_zYTXXDvUP0q2">Risks and Uncertainties</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The Company is subject to risks from, among other things, competition associated with the industry in general, other risks associated with financing, liquidity requirements, rapidly changing customer requirements, limited operating history and the volatility of public markets.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The global outbreak of the coronavirus disease 2019 (COVID-19) was declared a pandemic by the World Health Organization and a national emergency by the U.S. government in March 2020. This has negatively affected the U.S. and global economy, disrupted global supply chains, significantly restricted travel and transportation, resulted in mandated closures and orders to “shelter-in- place” and created significant disruption of the financial markets. The full extent of the COVID-19 impact on the Company’s operational and financial performance will depend on future developments, including the duration and spread of the pandemic and related actions taken by U.S. and foreign government agencies to prevent disease spread, all of which are uncertain, out of the Company’s control, and cannot be predicted.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_84F_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zUSREgBSOiWa" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_86A_zWrXi2c4NtUg">Cash and Cash Equivalents</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Cash and cash equivalents include cash on hand and cash in demand deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_844_eus-gaap--PropertyPlantAndEquipmentPolicyTextBlock_z8zDr5r4hwv4" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_863_z914a2KEuiA5">Property and Equipment</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Property and equipment are recorded at historical cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three to five years. Depreciation is recorded in operating expenses in the consolidated statements of operations. Leasehold improvements and assets acquired through capital leases are amortized over the shorter of their estimated useful life or the lease term, and amortization is recorded in operating expenses in the consolidated statements of operations. Construction-in-process includes machinery and equipment and is stated at cost and not depreciated. Depreciation on construction-in-process commences when the assets are ready for their intended use.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"> </span></p> <p id="xdx_892_eus-gaap--PropertyPlantAndEquipmentTextBlock_zv46lXYabmub" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Fixed assets comprised:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"><span id="xdx_8B0_z0vBRFJ3djCg" style="display: none">Schedule of Fixed Assets</span> </span></p> <table cellpadding="0" cellspacing="0" id="xdx_881_ecustom--DisclosureTheCompanyAndSummaryOfSignificantAccountingPoliciesDetailsAbstract_zG9xGF5lWi7" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto" summary="xdx: Disclosure - THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td> <td colspan="2" id="xdx_49A_20221231_zmWLzapN6Bqa" style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">December 31,</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td> <td colspan="2" id="xdx_490_20220331_zgvFociyeck6" style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">March 31,</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-left: 8.65pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2022</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2022</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_400_eus-gaap--MachineryAndEquipmentGross_iI_maPPAEGzm0x_zek7E3B1Okmg" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 54%; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Machinery and equipment</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">487,855</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">346,358</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_40C_eus-gaap--ConstructionInProgressGross_iI_maPPAEGzm0x_zLH4nMyJKHJ" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt">Construction-in-process</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">427,670</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0558">—</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LeaseholdImprovementsGross_iI_maPPAEGzm0x_z9C4hqtLdnk6" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt">Leasehold improvements</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">139,197</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">139,197</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_408_eus-gaap--PropertyPlantAndEquipmentGross_iTI_mtPPAEGzm0x_maPPAENzKLp_zwgY5bqSSMR7" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Total property and equipment</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">1,054,722</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">485,555</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_405_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENzKLp_zgWjSeb7oXxd" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt">Less: accumulated depreciation and amortization</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(338,313</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(249,596</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt">)</span></td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzKLp_z3bXSX4Jcb54" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 25.95pt; text-indent: -8.65pt; padding-bottom: 2.5pt"><span style="font-size: 10pt">Total property and equipment, net</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">716,409</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">235,959</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td></tr> </table> <p id="xdx_8A1_zkrcMCKZjCIe" style="margin-top: 0; margin-bottom: 0"/> <p id="xdx_85F_zgkASRv6lhCk" style="margin-top: 0; margin-bottom: 0"> </p> <p id="xdx_84D_eus-gaap--FairValueOfFinancialInstrumentsPolicy_z0upzKhNK5pc" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_86F_zPc7jAlh8XP5">Fair Value of Financial Instruments</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The Company measures the fair value of financial instruments using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels:</span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 9.85pt; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 43.95pt"/><td style="font: 10pt Times New Roman, Times, Serif; width: 18pt"><span style="font: 10pt Symbol">·</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-size: 10pt">Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.</span></td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 1.25pt; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 43.95pt"/><td style="font: 10pt Times New Roman, Times, Serif; width: 18pt"><span style="font: 10pt Symbol">·</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-right: 0"><span style="font-size: 10pt">Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.</span></td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 1.6pt; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 43.95pt"/><td style="font: 10pt Times New Roman, Times, Serif; width: 18pt"><span style="font: 10pt Symbol">·</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-right: 0"><span style="font-size: 10pt">Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.</span></td></tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Due to their short-term nature, the carrying values of cash equivalents, accounts payable and accrued expenses, approximate fair value.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"> </span></p> <p id="xdx_845_ecustom--RightOfUseAssetPolicyTextBlock_zeAT3PriNqre" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify; color: #12151A"><span style="font-size: 10pt"><b><span id="xdx_864_z2Tm0WuKvONk">Right-of-Use Asset</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify; color: #12151A"><span style="font-size: 10pt">The Company’s right-of-use assets consist of leased assets recognized in accordance with FASB Accounting Standards Codification (ASC) No. 842, Leases which requires lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and the lease liability represents the Company’s obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Leases with a lease term of 12 months or less at inception are not recorded on the condensed consolidated balance sheets and are expensed on a straight-line basis over the lease term in the condensed consolidated statement of operations and comprehensive loss. The Company determines the lease term by agreement with the lessor. In cases where the lease does not provide an implicit interest rate, the Company uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_84D_eus-gaap--CompensationRelatedCostsPolicyTextBlock_ziEaj6zIYWv3" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_86D_zU1h4XCezrec">Stock-Based Compensation</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The Company recognizes stock-based compensation for stock options granted to employees and non-employees on a straight-line basis over the requisite service period, usually the vesting period, based on the grant-date fair value. The Company estimates the value of stock options on the date of grant using the Black-Scholes pricing model. The determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the option price, as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the expected stock price volatility over the term of the awards, and projected stock option exercise behaviors.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_84C_eus-gaap--EarningsPerSharePolicyTextBlock_zVZZoedIxws1" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_866_zx7cs8Ki2y85">Per-Share Amounts</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Basic net loss per share is computed by dividing the net loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share gives effect to all potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of incremental shares of common stock issuable upon the exercise of stock options and warrants.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_896_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_z7O4MGwvLHa1" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">For the nine months ended December 31, 2022 and 2021, the following table sets forth securities outstanding which were excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_8B1_zx6VGxcPTSXg" style="display: none">Schedule of Anti-Dilutive Shares</span></span></p> <table cellpadding="0" cellspacing="0" id="xdx_88D_ecustom--DisclosureTheCompanyAndSummaryOfSignificantAccountingPoliciesDetails2Abstract_zc6OdvANtPEi" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2)"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-bottom: 1pt"/><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"/> <td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"/> <td id="xdx_493_20220401__20221231_zg7tRAEeeDFb" style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"/> <td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"/> <td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"/> <td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"/> <td id="xdx_491_20210401__20211231_zAdb6qE31bK7" style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"/><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"/></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="6" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Nine Months Ended <br/> December 31,</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2022</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2021</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_40F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_zzezQ1keKJ6j" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 74%; text-align: left"><span style="font-size: 10pt">Options to purchase common stock</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">2,174,198</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">1,967,188</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_402_eus-gaap--ClassOfWarrantOrRightOutstanding_iE_zU4c4j6hnLm" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt">Common stock warrants</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">7,565,588</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">767,796</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_404_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_zuvQIw0fl2Y1" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; padding-left: 8.65pt"><span style="font-size: 10pt">Total</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">9,739,786</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">2,734,984</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td></tr> </table><p id="xdx_8A6_zngJSgL7uhU4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p id="xdx_842_eus-gaap--PriorPeriodReclassificationAdjustmentDescription_zsAJVeQNRuKf" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_86C_ztQxbca3hxXj">Reclassifications</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations or cash flows.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"> </span></p> <p id="xdx_84E_eus-gaap--ComprehensiveIncomePolicyPolicyTextBlock_zlpFhi27z9l5" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_862_z8B4zPzNnybb">Comprehensive Loss</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Comprehensive loss represents the changes in equity of an enterprise, other than those resulting from stockholder transactions. Accordingly, comprehensive loss may include certain changes in equity that are excluded from net loss. For the three and nine months ended December 31, 2022 and 2021, the Company’s comprehensive loss was the same as its net loss.</span></p> <p id="xdx_857_zRYR1zVYttNb" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"> </p> <p id="xdx_841_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zLtsrcRqErl" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"><span id="xdx_861_zK1jpwJNtAA3">Recently Issued Accounting Pronouncement</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">In June 2016, the FASB issued ASU No. 2016-13, <i>Financial Instruments—Credit Losses</i>. This ASU added a new impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes an allowance for its estimate of expected credit losses and applies to most debt instruments, trade receivables, lease receivables, financial guarantee contracts, and other loan commitments. The CECL model does not have a minimum threshold for recognition of impairment losses and entities will need to measure expected credit losses on assets that have a low risk of loss. This update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years for smaller reporting companies. The adoption of this ASU is not expected to have a material impact on the Company’s results of operations and financial position.</span></p> <p id="xdx_841_eus-gaap--SubstantialDoubtAboutGoingConcernTextBlock_zDpZfpoBbIeg" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_86B_zPmKtm06Ta8i">Liquidity</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Financial Accounting Standards Board (FASB) Accounting Standard Update (ASU) No. 2014-15 (ASU 2014-15), <i>Going Concern</i>, requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If management identifies conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, management must consider if there are plans that are probable to be implemented, and whether it is probable that the plans will mitigate the conditions or events raising the substantial doubt about the entity’s ability to continue as a going concern. If the substantial doubt is not alleviated after consideration of management’s plans, the entity must include a statement in the notes to the financial statements indicating that there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued including: 1) the principal conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern, 2) management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and 3) management’s plans to attempt to mitigate the conditions or events causing the substantial doubt about the entity’s ability to continue as a going concern.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The Company expects to continue to incur operating losses for the foreseeable future and incur cash outflows from operations as it continues to invest in the development and subsequent commercialization of its product. The Company expects that its research and development and general and administrative expenses will continue to increase, and, as a result, it will eventually need to generate significant revenue to achieve profitability. The Company’s expected operating losses and cash burn raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that these financial statements are issued. Implementation of the Company’s plans and its ability to continue as a going concern will depend upon the Company’s ability to raise additional capital, through the sale of additional equity or debt securities, to support its future operations. There can be no assurance that such additional capital, whether in the form of debt or equity financing, will be sufficient or available and, if available, that such capital will be offered on terms and conditions acceptable to the Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The Company’s operating needs include the planned costs to operate its business, fund working capital and capital expenditures. The Company’s future capital requirements and the adequacy of its available funds will depend on many factors, including the Company’s ability to successfully commercialize its product, competing technological and market developments, and the need to enter into collaborations with other companies or acquire other companies or technologies to enhance or complement its product offering. If the Company is unable to secure additional capital, it may be required to curtail its research and development initiatives and take additional measures to reduce costs in order to conserve its cash. These condensed consolidated financial statements do not include any adjustments that might result from this uncertainty.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_842_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_zZZzEXlMHnT9" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_86A_zn1ZRRo0BOub">Basis of Presentation</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The Company’s fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these notes to the condensed consolidated financial statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2023 refers to the fiscal year ending March 31, 2023). The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Quasuras. All significant intercompany transactions and balances have been eliminated in consolidation.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and with the rules and regulations of the United States Security and Exchange Commission (SEC) regarding interim financial reporting. The condensed consolidated balance sheet as of March 31, 2022 has been derived from the audited consolidated financial statements at that date. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with these rules and regulations of the SEC. The information in this report should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in its most recent annual report on Form 10-K filed with the SEC.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary to summarize fairly the Company’s financial position, results of operations and cash flows for the interim periods presented. The operating results for the three months ended December 31, 2022 are not necessarily indicative of the results that may be expected for the year ending March 31, 2023 or for any other future period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_842_ecustom--ReverseStockSplitPolicyTextBlock_zDtxCc97np96" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_864_zbhhKuH56ld4">Reverse Stock Split</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"><span id="xdx_90A_eus-gaap--StockholdersEquityReverseStockSplit_c20211124__20211124_zuC1uXBhVjj5">On November 24, 2021, the Company filed a certificate of amendment to its amended and restated certificate of incorporation with the Secretary of State of the State of Nevada to effect a 1-for-3 reverse stock split of the Company’s shares of common stock.</span> Such amendment and ratio were previously approved by a majority of the Company’s stockholders and the board of directors. As a result of the reverse stock split, which was effective November 29, 2021, every three shares of the Company’s pre-reverse split outstanding common stock were combined and reclassified into one share of common stock. Proportionate voting rights and other rights of common stock holders were not affected by the reverse stock split. Any fractional shares of common stock resulting from the reverse split were rounded up to the nearest whole share. All stock options outstanding and common stock reserved for issuance under the Company’s equity incentive plans and warrants outstanding immediately prior to the reverse stock split were adjusted by dividing the number of affected shares of common stock by three and, as applicable, multiplying the exercise price by three, as a result of the reverse stock split. All share numbers, share prices, exercise prices and per share amounts have been adjusted, on a retroactive basis to reflect this 1-for-3 reverse stock split.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> On November 24, 2021, the Company filed a certificate of amendment to its amended and restated certificate of incorporation with the Secretary of State of the State of Nevada to effect a 1-for-3 reverse stock split of the Company’s shares of common stock. <p id="xdx_846_eus-gaap--UseOfEstimates_zrIP3vYidsWc" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_866_z8Z5c4xUWGCj">Use of Estimates</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amount of revenues and expenses during the reporting period. Estimates may include those pertaining to accruals, stock-based compensation and income taxes. Actual results could differ from those estimates.</span></p> <p id="xdx_84C_eus-gaap--SegmentReportingPolicyPolicyTextBlock_z9MSNur83Mqc" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_868_zJCsoIzppzZe">Reportable Segment</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt">The Company operates in one business segment and uses one measurement of profitability for its business.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_84A_eus-gaap--ResearchAndDevelopmentExpensePolicy_zxwOP7ar9flg" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_86A_zTvjFgxSCvOh">Research and Development</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt">The Company expenses research and development expenditures as incurred.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_840_eus-gaap--SellingGeneralAndAdministrativeExpensesPolicyTextBlock_zFMQFTk4oY4l" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_868_zyYHQ62Ptux1">General and Administrative</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">General and administrative expenses consist primarily of payroll and benefit costs, rent, stock-based compensation, legal and accounting fees, and office and other administrative expenses.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"> </p> <p id="xdx_84C_eus-gaap--ConcentrationRiskCreditRisk_zmQbxT9GHOd7" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_86D_zXSrMpy0xax1">Concentration of Credit Risk</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash. The Company maintains its cash at high-quality financial institutions within the United States, which are insured by the Federal Deposit Insurance Corporation up to limits of approximately $250,000. No reserve has been made in the financial statements for any possible loss due to financial institution failure.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_847_ecustom--RisksAndUncertaintiesPolicyTextBlock_zitVuyry7Z2f" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_860_zYTXXDvUP0q2">Risks and Uncertainties</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The Company is subject to risks from, among other things, competition associated with the industry in general, other risks associated with financing, liquidity requirements, rapidly changing customer requirements, limited operating history and the volatility of public markets.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The global outbreak of the coronavirus disease 2019 (COVID-19) was declared a pandemic by the World Health Organization and a national emergency by the U.S. government in March 2020. This has negatively affected the U.S. and global economy, disrupted global supply chains, significantly restricted travel and transportation, resulted in mandated closures and orders to “shelter-in- place” and created significant disruption of the financial markets. The full extent of the COVID-19 impact on the Company’s operational and financial performance will depend on future developments, including the duration and spread of the pandemic and related actions taken by U.S. and foreign government agencies to prevent disease spread, all of which are uncertain, out of the Company’s control, and cannot be predicted.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_84F_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zUSREgBSOiWa" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_86A_zWrXi2c4NtUg">Cash and Cash Equivalents</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Cash and cash equivalents include cash on hand and cash in demand deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_844_eus-gaap--PropertyPlantAndEquipmentPolicyTextBlock_z8zDr5r4hwv4" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_863_z914a2KEuiA5">Property and Equipment</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Property and equipment are recorded at historical cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three to five years. Depreciation is recorded in operating expenses in the consolidated statements of operations. Leasehold improvements and assets acquired through capital leases are amortized over the shorter of their estimated useful life or the lease term, and amortization is recorded in operating expenses in the consolidated statements of operations. Construction-in-process includes machinery and equipment and is stated at cost and not depreciated. Depreciation on construction-in-process commences when the assets are ready for their intended use.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"> </span></p> <p id="xdx_892_eus-gaap--PropertyPlantAndEquipmentTextBlock_zv46lXYabmub" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Fixed assets comprised:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"><span id="xdx_8B0_z0vBRFJ3djCg" style="display: none">Schedule of Fixed Assets</span> </span></p> <table cellpadding="0" cellspacing="0" id="xdx_881_ecustom--DisclosureTheCompanyAndSummaryOfSignificantAccountingPoliciesDetailsAbstract_zG9xGF5lWi7" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto" summary="xdx: Disclosure - THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td> <td colspan="2" id="xdx_49A_20221231_zmWLzapN6Bqa" style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">December 31,</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td> <td colspan="2" id="xdx_490_20220331_zgvFociyeck6" style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">March 31,</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-left: 8.65pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2022</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2022</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_400_eus-gaap--MachineryAndEquipmentGross_iI_maPPAEGzm0x_zek7E3B1Okmg" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 54%; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Machinery and equipment</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">487,855</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">346,358</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_40C_eus-gaap--ConstructionInProgressGross_iI_maPPAEGzm0x_zLH4nMyJKHJ" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt">Construction-in-process</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">427,670</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0558">—</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LeaseholdImprovementsGross_iI_maPPAEGzm0x_z9C4hqtLdnk6" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt">Leasehold improvements</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">139,197</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">139,197</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_408_eus-gaap--PropertyPlantAndEquipmentGross_iTI_mtPPAEGzm0x_maPPAENzKLp_zwgY5bqSSMR7" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Total property and equipment</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">1,054,722</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">485,555</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_405_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENzKLp_zgWjSeb7oXxd" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt">Less: accumulated depreciation and amortization</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(338,313</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(249,596</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt">)</span></td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzKLp_z3bXSX4Jcb54" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 25.95pt; text-indent: -8.65pt; padding-bottom: 2.5pt"><span style="font-size: 10pt">Total property and equipment, net</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">716,409</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">235,959</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td></tr> </table> <p id="xdx_8A1_zkrcMCKZjCIe" style="margin-top: 0; margin-bottom: 0"/> <p id="xdx_892_eus-gaap--PropertyPlantAndEquipmentTextBlock_zv46lXYabmub" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Fixed assets comprised:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"><span id="xdx_8B0_z0vBRFJ3djCg" style="display: none">Schedule of Fixed Assets</span> </span></p> <table cellpadding="0" cellspacing="0" id="xdx_881_ecustom--DisclosureTheCompanyAndSummaryOfSignificantAccountingPoliciesDetailsAbstract_zG9xGF5lWi7" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto" summary="xdx: Disclosure - THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td> <td colspan="2" id="xdx_49A_20221231_zmWLzapN6Bqa" style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">December 31,</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td> <td colspan="2" id="xdx_490_20220331_zgvFociyeck6" style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">March 31,</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-left: 8.65pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2022</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2022</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_400_eus-gaap--MachineryAndEquipmentGross_iI_maPPAEGzm0x_zek7E3B1Okmg" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 54%; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Machinery and equipment</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">487,855</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">346,358</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_40C_eus-gaap--ConstructionInProgressGross_iI_maPPAEGzm0x_zLH4nMyJKHJ" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt">Construction-in-process</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">427,670</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0558">—</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LeaseholdImprovementsGross_iI_maPPAEGzm0x_z9C4hqtLdnk6" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt">Leasehold improvements</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">139,197</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">139,197</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_408_eus-gaap--PropertyPlantAndEquipmentGross_iTI_mtPPAEGzm0x_maPPAENzKLp_zwgY5bqSSMR7" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Total property and equipment</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">1,054,722</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">485,555</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_405_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENzKLp_zgWjSeb7oXxd" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt">Less: accumulated depreciation and amortization</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(338,313</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(249,596</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt">)</span></td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzKLp_z3bXSX4Jcb54" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 25.95pt; text-indent: -8.65pt; padding-bottom: 2.5pt"><span style="font-size: 10pt">Total property and equipment, net</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">716,409</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">235,959</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td></tr> </table> 487855 346358 427670 139197 139197 1054722 485555 338313 249596 716409 235959 <p id="xdx_84D_eus-gaap--FairValueOfFinancialInstrumentsPolicy_z0upzKhNK5pc" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_86F_zPc7jAlh8XP5">Fair Value of Financial Instruments</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The Company measures the fair value of financial instruments using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels:</span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 9.85pt; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 43.95pt"/><td style="font: 10pt Times New Roman, Times, Serif; width: 18pt"><span style="font: 10pt Symbol">·</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-size: 10pt">Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.</span></td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 1.25pt; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 43.95pt"/><td style="font: 10pt Times New Roman, Times, Serif; width: 18pt"><span style="font: 10pt Symbol">·</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-right: 0"><span style="font-size: 10pt">Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.</span></td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 1.6pt; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 43.95pt"/><td style="font: 10pt Times New Roman, Times, Serif; width: 18pt"><span style="font: 10pt Symbol">·</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-right: 0"><span style="font-size: 10pt">Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.</span></td></tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Due to their short-term nature, the carrying values of cash equivalents, accounts payable and accrued expenses, approximate fair value.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"> </span></p> <p id="xdx_845_ecustom--RightOfUseAssetPolicyTextBlock_zeAT3PriNqre" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify; color: #12151A"><span style="font-size: 10pt"><b><span id="xdx_864_z2Tm0WuKvONk">Right-of-Use Asset</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify; color: #12151A"><span style="font-size: 10pt">The Company’s right-of-use assets consist of leased assets recognized in accordance with FASB Accounting Standards Codification (ASC) No. 842, Leases which requires lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and the lease liability represents the Company’s obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Leases with a lease term of 12 months or less at inception are not recorded on the condensed consolidated balance sheets and are expensed on a straight-line basis over the lease term in the condensed consolidated statement of operations and comprehensive loss. The Company determines the lease term by agreement with the lessor. In cases where the lease does not provide an implicit interest rate, the Company uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_84D_eus-gaap--CompensationRelatedCostsPolicyTextBlock_ziEaj6zIYWv3" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_86D_zU1h4XCezrec">Stock-Based Compensation</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The Company recognizes stock-based compensation for stock options granted to employees and non-employees on a straight-line basis over the requisite service period, usually the vesting period, based on the grant-date fair value. The Company estimates the value of stock options on the date of grant using the Black-Scholes pricing model. The determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the option price, as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the expected stock price volatility over the term of the awards, and projected stock option exercise behaviors.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_84C_eus-gaap--EarningsPerSharePolicyTextBlock_zVZZoedIxws1" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_866_zx7cs8Ki2y85">Per-Share Amounts</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Basic net loss per share is computed by dividing the net loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share gives effect to all potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of incremental shares of common stock issuable upon the exercise of stock options and warrants.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_896_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_z7O4MGwvLHa1" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">For the nine months ended December 31, 2022 and 2021, the following table sets forth securities outstanding which were excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_8B1_zx6VGxcPTSXg" style="display: none">Schedule of Anti-Dilutive Shares</span></span></p> <table cellpadding="0" cellspacing="0" id="xdx_88D_ecustom--DisclosureTheCompanyAndSummaryOfSignificantAccountingPoliciesDetails2Abstract_zc6OdvANtPEi" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2)"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-bottom: 1pt"/><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"/> <td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"/> <td id="xdx_493_20220401__20221231_zg7tRAEeeDFb" style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"/> <td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"/> <td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"/> <td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"/> <td id="xdx_491_20210401__20211231_zAdb6qE31bK7" style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"/><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"/></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="6" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Nine Months Ended <br/> December 31,</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2022</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2021</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_40F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_zzezQ1keKJ6j" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 74%; text-align: left"><span style="font-size: 10pt">Options to purchase common stock</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">2,174,198</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">1,967,188</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_402_eus-gaap--ClassOfWarrantOrRightOutstanding_iE_zU4c4j6hnLm" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt">Common stock warrants</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">7,565,588</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">767,796</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_404_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_zuvQIw0fl2Y1" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; padding-left: 8.65pt"><span style="font-size: 10pt">Total</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">9,739,786</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">2,734,984</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td></tr> </table><p id="xdx_8A6_zngJSgL7uhU4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p id="xdx_896_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_z7O4MGwvLHa1" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">For the nine months ended December 31, 2022 and 2021, the following table sets forth securities outstanding which were excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_8B1_zx6VGxcPTSXg" style="display: none">Schedule of Anti-Dilutive Shares</span></span></p> <table cellpadding="0" cellspacing="0" id="xdx_88D_ecustom--DisclosureTheCompanyAndSummaryOfSignificantAccountingPoliciesDetails2Abstract_zc6OdvANtPEi" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2)"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-bottom: 1pt"/><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"/> <td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"/> <td id="xdx_493_20220401__20221231_zg7tRAEeeDFb" style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"/> <td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"/> <td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"/> <td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"/> <td id="xdx_491_20210401__20211231_zAdb6qE31bK7" style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"/><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"/></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="6" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Nine Months Ended <br/> December 31,</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2022</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2021</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_40F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_zzezQ1keKJ6j" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 74%; text-align: left"><span style="font-size: 10pt">Options to purchase common stock</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">2,174,198</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">1,967,188</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_402_eus-gaap--ClassOfWarrantOrRightOutstanding_iE_zU4c4j6hnLm" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt">Common stock warrants</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">7,565,588</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">767,796</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_404_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_zuvQIw0fl2Y1" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; padding-left: 8.65pt"><span style="font-size: 10pt">Total</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">9,739,786</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">2,734,984</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td></tr> </table> 2174198 1967188 7565588 767796 9739786 2734984 <p id="xdx_842_eus-gaap--PriorPeriodReclassificationAdjustmentDescription_zsAJVeQNRuKf" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_86C_ztQxbca3hxXj">Reclassifications</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations or cash flows.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"> </span></p> <p id="xdx_84E_eus-gaap--ComprehensiveIncomePolicyPolicyTextBlock_zlpFhi27z9l5" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_862_z8B4zPzNnybb">Comprehensive Loss</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Comprehensive loss represents the changes in equity of an enterprise, other than those resulting from stockholder transactions. Accordingly, comprehensive loss may include certain changes in equity that are excluded from net loss. For the three and nine months ended December 31, 2022 and 2021, the Company’s comprehensive loss was the same as its net loss.</span></p> <p id="xdx_841_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zLtsrcRqErl" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"><span id="xdx_861_zK1jpwJNtAA3">Recently Issued Accounting Pronouncement</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">In June 2016, the FASB issued ASU No. 2016-13, <i>Financial Instruments—Credit Losses</i>. This ASU added a new impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes an allowance for its estimate of expected credit losses and applies to most debt instruments, trade receivables, lease receivables, financial guarantee contracts, and other loan commitments. The CECL model does not have a minimum threshold for recognition of impairment losses and entities will need to measure expected credit losses on assets that have a low risk of loss. This update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years for smaller reporting companies. The adoption of this ASU is not expected to have a material impact on the Company’s results of operations and financial position.</span></p> <p id="xdx_804_eus-gaap--LeasesOfLesseeDisclosureTextBlock_zTdqzcSWEDQa" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">NOTE 2 – <span id="xdx_82A_zORBlH1Ml3zk">LEASES</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The Company accounts for the lease of its corporate facility in San Diego, California in accordance with ASC No. 842. The 39- month lease term commenced April 1, 2020, and the lease provides for an initial monthly rent of approximately $12,400 with annual rent increases of approximately 3%. In addition to the minimum lease payments, the Company is responsible for property taxes, insurance and certain other operating costs. The right-to-use asset and corresponding liability for the facility lease have been measured at the present value of the future minimum lease payments. A discount rate of 11%, which approximated the Company’s incremental borrowing rate, was used to measure the lease asset and liability. Lease expense is recognized on a straight-line basis over the lease term.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The Company obtained a right-of-use asset of $270,950 in exchange for its obligations under the operating lease. The landlord also provided a lease incentive of approximately $139,000, which was paid to the Company in June 2020, for the Company to make improvements to the leased space. In addition, the Company paid a $100,000 security deposit.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"> </span></p> <p id="xdx_89B_eus-gaap--ScheduleOfFutureMinimumRentalPaymentsForOperatingLeasesTableTextBlock_z0dprAtKHKW" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Future minimum payments under the facility operating lease, as of December 31, 2022, are listed in the table below.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_8BA_ziGeiHoTwr3k" style="display: none">Schedule of Future minimum Lease Payment</span></span></p> <table cellpadding="0" cellspacing="0" id="xdx_881_ecustom--DisclosureLeasesDetailsAbstract_z3CS1aSTeSs3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - LEASES (Details)"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Annual Fiscal Years</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" id="xdx_49D_20221231_zQmRulKPyczi" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Operating<br/> Lease</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_402_eus-gaap--OperatingLeasesFutureMinimumPaymentsDueInTwoYears_iI_maOLFMPz3Dp_zHRCkxRdrGt4" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 87%; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">2023</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">39,507</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_407_eus-gaap--OperatingLeasesFutureMinimumPaymentsDueInThreeYears_iI_maOLFMPz3Dp_zVwPIbUWzwa9" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">2024</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">40,692</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Less:</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_408_ecustom--OperatingLeasesImputedInterest_iI_maOLFMPz3Dp_zeF3c8SkkG7i" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 17.3pt; text-indent: -8.65pt"><span style="font-size: 10pt">Imputed interest</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(2,527</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt">)</span></td></tr> <tr id="xdx_401_eus-gaap--OperatingLeasesFutureMinimumPaymentsDue_iTI_mtOLFMPz3Dp_z8vWATFqUgm4" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Present value of lease liabilities</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">77,672</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td></tr> </table><p id="xdx_8AC_zWubpxotLH66" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Cash paid for amounts included in the measurement of lease liabilities was $<span id="xdx_907_ecustom--CashPaidforLeaseLiabilities_iI_c20221231_zei8scLtRnnh">118,521</span> for the nine months ended December 31, 2022. Rent expense was $<span id="xdx_90E_eus-gaap--LeaseAndRentalExpense_c20220401__20221231_zCEQVxYiMU53"><span id="xdx_908_eus-gaap--LeaseAndRentalExpense_c20210401__20211231_zVfdPDEbTAbl">80,698</span></span> for each of the nine-month periods ended December 31, 2022 and 2021 and $<span id="xdx_908_eus-gaap--LeaseAndRentalExpense_c20221001__20221231_zK07OFliiJad"><span id="xdx_90A_eus-gaap--LeaseAndRentalExpense_c20211001__20211231_zYEROh0mIJbb">26,930</span></span> for each of the three-month periods ended December 31, 2022 and 2021.</span></p> <p id="xdx_89B_eus-gaap--ScheduleOfFutureMinimumRentalPaymentsForOperatingLeasesTableTextBlock_z0dprAtKHKW" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Future minimum payments under the facility operating lease, as of December 31, 2022, are listed in the table below.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_8BA_ziGeiHoTwr3k" style="display: none">Schedule of Future minimum Lease Payment</span></span></p> <table cellpadding="0" cellspacing="0" id="xdx_881_ecustom--DisclosureLeasesDetailsAbstract_z3CS1aSTeSs3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - LEASES (Details)"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Annual Fiscal Years</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" id="xdx_49D_20221231_zQmRulKPyczi" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Operating<br/> Lease</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_402_eus-gaap--OperatingLeasesFutureMinimumPaymentsDueInTwoYears_iI_maOLFMPz3Dp_zHRCkxRdrGt4" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 87%; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">2023</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">39,507</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_407_eus-gaap--OperatingLeasesFutureMinimumPaymentsDueInThreeYears_iI_maOLFMPz3Dp_zVwPIbUWzwa9" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">2024</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">40,692</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Less:</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_408_ecustom--OperatingLeasesImputedInterest_iI_maOLFMPz3Dp_zeF3c8SkkG7i" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 17.3pt; text-indent: -8.65pt"><span style="font-size: 10pt">Imputed interest</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(2,527</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><span style="font-size: 10pt">)</span></td></tr> <tr id="xdx_401_eus-gaap--OperatingLeasesFutureMinimumPaymentsDue_iTI_mtOLFMPz3Dp_z8vWATFqUgm4" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Present value of lease liabilities</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">77,672</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td></tr> </table> 39507 40692 -2527 77672 118521 80698 80698 26930 26930 <p id="xdx_80E_ecustom--PPPNotesPayableTextBlock_zUi2dhVPFwc5" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">NOTE 3 – <span id="xdx_82B_zrQkg1uB6Mfe">PPP NOTE</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">On April 24, 2020, the Company received a $<span id="xdx_902_eus-gaap--UnsecuredDebtCurrent_iI_c20200424_zjWyU2EbCsfa">368,780</span> unsecured loan (the PPP Note) under the Paycheck Protection Program (the PPP), which was established under the U.S. government’s Coronavirus Aid, Relief, and Economic Security Act (the CARES Act). The PPP Note to the Company was made through Silicon Valley Bank (the Lender), and the Company entered into a U.S. Small Business Administration Paycheck Protection Program Note (the Agreement) with the Lender evidencing the PPP Note. The full amount of the PPP Note was due in April 2022 and interest accrued on the outstanding principal balance of the PPP Note at a fixed rate of 1.0% per annum, which was deferred for 10 months after the covered period during which the Company used the proceeds.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">In May 2021, the Lender and the U.S. Small Business Administration notified the Company that the outstanding principal and accrued interest for the PPP Note was forgiven in full. The Company accounted for the forgiveness of the PPP Note in accordance with ASC Topic 470: <i>Debt </i>(ASC 470), and the amount forgiven was recorded as a gain on extinguishment and recognized in the other income line of the consolidated statement of operations.</span></p> 368780 <p id="xdx_80D_eus-gaap--DebtDisclosureTextBlock_zK7KGsyBQQ15" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">NOTE 4 – <span id="xdx_827_zk6Taczytehk">CONVERTIBLE PROMISSORY NOTES</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">From February through April 2021, the Company sold $<span id="xdx_904_eus-gaap--ConvertibleNotesPayable_iI_c20210430__us-gaap--ShortTermDebtTypeAxis__us-gaap--ConvertibleNotesPayableMember_zhhTHHX83Hn4">2,310,000</span> of convertible promissory notes (each an Original Note and, collectively, the Original Notes), at par in a private placement transaction effected pursuant to an exemption from the registration requirements under the Securities Act of 1933, as amended. Effective April 30, 2021, pursuant to a revocation and replacement agreement between each holder of an Original Note and the Company, the $2,310,000 of Original Notes and accrued interest thereon as of April 30, 2021 were replaced with $2,360,550 aggregate principal amount of Notes and 2021 Warrants (as defined below). The Company accounted for the replacement of the Original Notes in accordance with ASC 470 and recorded a loss on extinguishment of $<span id="xdx_909_eus-gaap--GainsLossesOnExtinguishmentOfDebt_iN_di_c20210401__20210430_zfTQ47EomB33">1,321,450</span> and interest expense of $<span id="xdx_900_eus-gaap--AmortizationOfFinancingCosts_c20210401__20210430_zv5bTHLTliVb">70,647</span> for unamortized debt issuance costs as of April 30, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">In April and May 2021, pursuant to a securities purchase agreement by and between the Company and each investor (the SPA), the Company sold to investors $<span id="xdx_907_eus-gaap--ConvertibleNotesPayable_iI_c20210531__us-gaap--ShortTermDebtTypeAxis__us-gaap--ConvertibleNotesPayableMember_zy52jXguglc7">4,250,000</span> aggregate principal amount of convertible promissory notes (the Notes) and warrants to purchase shares of its common stock (the 2021 Warrants). The Notes were unsecured obligations of the Company with each Note having a stated maturity date of 12 months from its issue date and accrued interest at a rate of 12% per annum, payable on maturity. If the Company completed an offering of its common stock or other securities in excess of $12,000,000 of gross proceeds (a Qualified Capital Raise, as defined in the Notes), each Note holder would be required to convert its Adjusted Note Amount (as defined below) into the securities of such Qualified Capital Raise. Adjusted Note Amount equals the product of (i) the sum of all outstanding principal plus accrued interest on a Note, multiplied by (ii) 1.25.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">In connection with the issuance of the Notes, the Company issued the 2021 Warrants to purchase in the aggregate 767,796 shares of its common stock at an initial exercise price of $24.00 per share. The fair value of the 2021 Warrants was $3,700,632, of which $2,379,182 was recorded as a debt discount and amortized to interest expense, and $1,321,450 was recorded as a loss on debt extinguishment. The Company calculated the fair value of the Warrants utilizing the Black-Scholes valuation model with the following assumptions: volatility of <span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsWeightedAverageVolatilityRate_c20210401__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zbJ6jH4tPNhc">88.98%</span>, risk-free interest rate of <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_c20210401__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zCIGxw5MoXO4">0.86%</span>, a term of <span id="xdx_900_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dxH_c20210401__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zN6AMLkZFgN3" title="::XDX::P5Y9M">5.75 years</span> and a dividend yield of <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_dc_c20210401__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zkIAKgIzLdV6">zero</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Upon the closing of a public offering in February 2022, which was a Qualified Capital Raise, in accordance with their terms, the Notes converted into 1,511,276 shares of common stock and the holders of the Notes received an additional 1,511,276 common stock purchase warrants with an exercise price of $6.60 per share. In addition, as a result of the February 2022 equity offering, the exercise price of the 767,796 outstanding 2021 Warrants was reduced to $6.00 per share.</span></p> 2310000 -1321450 70647 4250000 0.8898 0.0086 0 <p id="xdx_80D_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_zA0u0LJqjE3k" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">NOTE 5 – <span id="xdx_822_zmk2hgmS0V71">STOCKHOLDERS’ EQUITY (DEFICIT)</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">Placements of Common Stock and Warrants</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">On May 2, 2022, the Company entered into a securities purchase agreement (the Purchase Agreement) with an institutional investor, pursuant to which the Company sold, in a registered direct offering (the Registered Offering), which closed on May 5, 2022, an aggregate of 449,438 shares (the Shares) of the Company’s common stock, par value $0.001 per share, at a purchase price per Share of $4.45 and pre-funded warrants (the Pre-Funded Warrants) to purchase an aggregate of 1,348,314 shares of common stock at a purchase price per Pre-Funded Warrant of $4.44. The Pre-Funded Warrants will be exercisable immediately on the date of issuance at an exercise price of $0.01 per share and may be exercised at any time until all of the Pre-Funded Warrants are exercised in full.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">In a concurrent private placement under the Purchase Agreement, the Company issued to the Investor warrants (the Private Placement Warrants) to purchase an aggregate of 1,438,202 shares of common stock at an exercise price of $6.60 per share. The Private Placement Warrants will be exercisable beginning on the six-month anniversary of the date of issuance (the Initial Exercise Date) and will expire on the five-year anniversary of the Initial Exercise Date.</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt">Warrants</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p id="xdx_896_eus-gaap--ScheduleOfCommonStockOutstandingRollForwardTableTextBlock_zdH2xPLolYAe" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt">As of December 31, 2022, the Company had the following warrants outstanding:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_8BC_z8uyPTeATszl" style="display: none">Schedule of Warrant Outstanding</span></span></p> <table cellpadding="0" cellspacing="0" id="xdx_88A_ecustom--DisclosureStockholdersEquityDeficitDetailsAbstract_zjj4p29K9gSa" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - STOCKHOLDERS' EQUITY (DEFICIT) (Details)"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"><span style="font-size: 10pt"><b>Type</b></span></p></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" id="xdx_485_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_zLAQtgeJQFI4" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Number of <br/>Shares</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" id="xdx_48D_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_zN8oCISN6Zo9" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Exercise <br/>Price</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Expiration Date</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_413_20221231__us-gaap--StatementEquityComponentsAxis__custom--Warrant1Member_zmiECoOFcbXa" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 61%; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Common stock</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">1,348,314</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">0.01</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; width: 8%; text-align: right"><span style="font-size: 10pt">—</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_41B_20221231__us-gaap--StatementEquityComponentsAxis__custom--Warrant2Member_zGjfaW0vLyVd" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Common stock</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">767,796</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">6.00</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><span style="font-size: 10pt">January - February 2027</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_41D_20221231__us-gaap--StatementEquityComponentsAxis__custom--Warrant3Member_zh47qkMAGOR3" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Common stock</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">4,011,276</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">6.60</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><span style="font-size: 10pt">February 2027</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_41B_20221231__us-gaap--StatementEquityComponentsAxis__custom--Warrant4Member_zBG2m10V9iNi" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Common stock</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">1,438,202</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: right"><span style="font-size: 10pt">6.60</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt; text-align: right"><span style="font-size: 10pt">November 2027</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_418_20221231_zXWCK824esri" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; text-indent: -8.65pt; padding-left: 17.3pt; padding-bottom: 2.5pt"><span style="font-size: 10pt">Total</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">7,565,588</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 2.5pt; text-align: right"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-size: 10pt"> </span></td></tr> </table> <p id="xdx_8A0_zs98hd6n38a8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b>Other</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">During the nine months ended December 31, 2022 and 2021, the Company issued <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_c20220401__20221231_ztm5HCu1qSmi">348</span> and <span id="xdx_907_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_c20210401__20211231_zU9ZvlziEhg2">28,334</span> shares of common stock, respectively, with a fair value of approximately $<span id="xdx_904_eus-gaap--StockIssuedDuringPeriodValueIssuedForServices_c20220401__20221231_zPEpWzQP1gB6">1,576</span> and $<span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodValueIssuedForServices_c20210401__20211231_z2x4QtShI4fi">245,956</span>, respectively, to service providers.</span></p> <p id="xdx_896_eus-gaap--ScheduleOfCommonStockOutstandingRollForwardTableTextBlock_zdH2xPLolYAe" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt">As of December 31, 2022, the Company had the following warrants outstanding:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_8BC_z8uyPTeATszl" style="display: none">Schedule of Warrant Outstanding</span></span></p> <table cellpadding="0" cellspacing="0" id="xdx_88A_ecustom--DisclosureStockholdersEquityDeficitDetailsAbstract_zjj4p29K9gSa" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - STOCKHOLDERS' EQUITY (DEFICIT) (Details)"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"><span style="font-size: 10pt"><b>Type</b></span></p></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" id="xdx_485_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_zLAQtgeJQFI4" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Number of <br/>Shares</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" id="xdx_48D_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_zN8oCISN6Zo9" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Exercise <br/>Price</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Expiration Date</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_413_20221231__us-gaap--StatementEquityComponentsAxis__custom--Warrant1Member_zmiECoOFcbXa" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 61%; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Common stock</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">1,348,314</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">0.01</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; width: 8%; text-align: right"><span style="font-size: 10pt">—</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_41B_20221231__us-gaap--StatementEquityComponentsAxis__custom--Warrant2Member_zGjfaW0vLyVd" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Common stock</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">767,796</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">6.00</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><span style="font-size: 10pt">January - February 2027</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_41D_20221231__us-gaap--StatementEquityComponentsAxis__custom--Warrant3Member_zh47qkMAGOR3" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Common stock</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">4,011,276</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">6.60</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><span style="font-size: 10pt">February 2027</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_41B_20221231__us-gaap--StatementEquityComponentsAxis__custom--Warrant4Member_zBG2m10V9iNi" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Common stock</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">1,438,202</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: right"><span style="font-size: 10pt">6.60</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt; text-align: right"><span style="font-size: 10pt">November 2027</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr id="xdx_418_20221231_zXWCK824esri" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; text-indent: -8.65pt; padding-left: 17.3pt; padding-bottom: 2.5pt"><span style="font-size: 10pt">Total</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">7,565,588</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 2.5pt; text-align: right"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-size: 10pt"> </span></td></tr> </table> 1348314 0.01 767796 6.00 4011276 6.60 1438202 6.60 7565588 348 28334 1576 245956 <p id="xdx_805_eus-gaap--ShareholdersEquityAndShareBasedPaymentsTextBlock_z5Jc3ur5j5wk" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">NOTE 6 – <span id="xdx_82C_zYzTj7hRzQj3">STOCK-BASED COMPENSATION</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt">Amended 2017 Equity Incentive Plan</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">In October 2017, the Company’s board of directors (the Board) approved the 2017 Equity Incentive Plan (the Plan), as amended, with <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesEmployeeBenefitPlan_c20171001__20171031_zt4aZoKOIQIe" title="Shares Approved under Equity Incentive Plan">1,000,000</span> shares of common stock reserved for issuance. In January 2020 and August 2021, the Board approved increases in the number of shares reserved for issuance under the Plan by <span id="xdx_901_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_c20200131_zqjhb1Y3GvFj">333,334</span> and <span id="xdx_90A_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_c20210831_zJkd2tcdYSV1">1,333,334</span> shares, respectively. Under the Plan, eligible employees, directors and consultants may be granted a broad range of awards, including stock options, stock appreciation rights, restricted stock, performance-based awards and restricted stock units. The Plan is administered by the Board or, in the alternative, a committee designated by the Board.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt">Stock-Based Compensation Expense</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The expense relating to stock options is recognized on a straight-line basis over the requisite service period, usually the vesting period, based on the grant date fair value. As of December 31, 2022, the unamortized compensation cost was $3,443,902 related to stock options and is expected to be recognized as expense over a weighted-average period of approximately 2.07 years.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">During the three and nine months ended December 31, 2022, the Company awarded 6,375 and 20,414 shares, respectively, to members of the Board in accordance with the compensation plan for non-employee directors. During the nine months ended December 31, 2022, the Company granted options with 10-year terms to purchase 677,199 shares of its common stock to employees, directors and consultants. The fair value of the options granted and shares awarded was $2,503,979. The following assumptions were used in the fair value calculations of the options granted:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_891_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_zP2779Tmibdf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_8B7_zLbwmkOub6gf" style="display: none">Schedule of Fair value Assumptions of Options</span></span></p> <table cellpadding="0" cellspacing="0" id="xdx_88E_ecustom--DisclosureStockBasedCompensationDetailsAbstract_zb2gfZU2Z0J1" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - STOCK-BASED COMPENSATION (Details)"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-left: 8.65pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="6" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Three Months Ended <br/> December 31,</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="6" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Nine Months Ended <br/> December 31,</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-left: 8.65pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2022</span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2021</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2022</span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2021</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Risk-free interest rates</span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><span style="font-size: 10pt"><span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_c20221001__20221231__srt--RangeAxis__srt--MinimumMember_zgmrKrCtqUif">3.93%</span> - <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_c20221001__20221231__srt--RangeAxis__srt--MaximumMember_zx3IgLCQa0Q5">3.99%</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><span style="font-size: 10pt"><span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_c20211001__20211231__srt--RangeAxis__srt--MinimumMember_zPWWnSDqo0kl">1.26%</span> - <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_c20211001__20211231__srt--RangeAxis__srt--MaximumMember_zBUIWDkY3Tze">1.36%</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><span style="font-size: 10pt"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_c20220401__20221231__srt--RangeAxis__srt--MinimumMember_zRXeo6EaZ4Q9">2.82%</span> - <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_c20220401__20221231__srt--RangeAxis__srt--MaximumMember_zA1Vq9AHuCn1">4.06%</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><span style="font-size: 10pt"><span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_c20210401__20211231__srt--RangeAxis__srt--MinimumMember_zdDRNQprowP3">0.8%</span> - <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_c20210401__20211231__srt--RangeAxis__srt--MaximumMember_zZ7nkMGwCQHj">1.36%</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; width: 48%; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Volatility</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_c20221001__20221231_zZy18G0H4qi6">149%</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt"><span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_c20211001__20211231__srt--RangeAxis__srt--MinimumMember_zANqxseLVqhc">197%</span> - <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_c20211001__20211231__srt--RangeAxis__srt--MaximumMember_zl4tgI6XUx8d">253%</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_c20220401__20221231__srt--RangeAxis__srt--MinimumMember_zYlw8tYe7oah">149%</span> - <span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_c20220401__20221231__srt--RangeAxis__srt--MaximumMember_zu9eQPOkv415">223%</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_c20210401__20211231__srt--RangeAxis__srt--MinimumMember_zZhgo5txVYk4">89%</span> - <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_c20210401__20211231__srt--RangeAxis__srt--MaximumMember_z6Rdk8Yv3nJ8">370%</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Expected life (years)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt"><span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dxH_c20221001__20221231__srt--RangeAxis__srt--MinimumMember_zWiB2RLckmS9" title="::XDX::P5Y">5.0</span> - <span id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dxH_c20221001__20221231__srt--RangeAxis__srt--MaximumMember_zP1GEN0yPMgf" title="::XDX::P5Y8M12D">5.7</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt"><span id="xdx_907_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dxH_c20211001__20211231__srt--RangeAxis__srt--MinimumMember_zYkx3rVLRkCg" title="::XDX::P5Y">5.0</span> - <span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dxH_c20211001__20211231__srt--RangeAxis__srt--MaximumMember_zzPpmaLjGlzk" title="::XDX::P6Y">6.0</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt"><span id="xdx_900_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dxH_c20220401__20221231__srt--RangeAxis__srt--MinimumMember_zUbR0lrpP2Ib" title="::XDX::P5Y">5.0</span> - <span id="xdx_909_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dxH_c20220401__20221231__srt--RangeAxis__srt--MaximumMember_zLiz3M5ZWXob" title="::XDX::P5Y8M12D">5.7</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt"><span id="xdx_90E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dxH_c20210401__20211231__srt--RangeAxis__srt--MinimumMember_zD0iKBsDmqxj" title="::XDX::P5Y">5.0</span> - <span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dxH_c20210401__20211231__srt--RangeAxis__srt--MaximumMember_zF8sMY22DC08" title="::XDX::P6Y2M12D">6.2</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> </table><p id="xdx_8A0_zQmlXYWb57Gj" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The fair values of options at the grant date were estimated utilizing the Black-Scholes valuation model, which includes simplified methods to establish the fair term of options, as well as average volatility. The risk-free interest rate was derived from the Daily Treasury Yield Curve Rates, as published by the U.S. Department of the Treasury as of the grant date for terms equal to the expected terms of the options. A dividend yield of zero was applied because the Company has never paid dividends and has no intention to pay dividends in the foreseeable future. The Company accounts for forfeitures as they occur.</span></p> <p id="xdx_895_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zFMR6Q1LwyLl" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt">A summary of stock option activity under the Plan is presented below:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_8B7_zDYmT6hB0mW9" style="display: none">Schedule of Stock Option activity</span></span></p> <table cellpadding="0" cellspacing="0" id="xdx_88E_ecustom--DisclosureStockBasedCompensationDetails2Abstract_zZEUT7iODGri" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - STOCK-BASED COMPENSATION (Details 2)"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-left: 8.65pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="6" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Options Outstanding</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-left: 8.65pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Shares <br/> Available <br/>for Grant</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Number of <br/> Shares</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Weighted <br/> Average<br/> Exercise <br/>Prices</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 61%; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Balance at March 31, 2022</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iS_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zDy2ZNa8cqj" style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">989,466</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zey9NhNQqYKl" style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">1,650,705</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt">$</span></td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zzGjv2vDzmUj" style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">6.58</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 17.3pt; text-indent: -8.65pt"><span style="font-size: 10pt">Options granted</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_984_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesGrantedAvailableForGrant_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zt5cZC9tlNyi" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(265,634</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zF1lcx5rJ4Kf" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">265,634</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zjXQ2jQ07gF2" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">4.35</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 17.3pt; text-indent: -8.65pt"><span style="font-size: 10pt">Share awards</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesGrantedAwards_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zpG9RRJ1Ya5l" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(2,664</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">—</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">—</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 17.3pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt">Options cancelled and returned to the Plan</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesCancelledAvailableForGrant_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zVwUAvfqDHF8" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">96,668</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_di_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zfZyjahfONke" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(96,668</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z7revZ6gLvo2" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: right"><span style="font-size: 10pt">7.69</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Balance at June 30, 2022</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iE_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zKDI4Lq1Ao01" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">817,836</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zp1sb1DyW6L1" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">1,819,671</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zNhPwI6Rmdsd" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">6.19</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 17.3pt; text-indent: -8.65pt"><span style="font-size: 10pt">Options granted</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_988_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesGrantedAvailableForGrant_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zBreamkFPmdg" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(241,023</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zqiXTkYMtST6" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">241,023</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zmmWWHda1HYf" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">4.35</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 17.3pt; text-indent: -8.65pt"><span style="font-size: 10pt">Share awards</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesGrantedAwards_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zEgTeuBeqMu4" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(11,375</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">—</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">—</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 17.3pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt">Options cancelled and returned to the Plan</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesCancelledAvailableForGrant_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z9DsRMechIu8" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">30,444</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_di_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zGLLZr5HK8Zk" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(30,444</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zySAXxhq9Pq1" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: right"><span style="font-size: 10pt">4.67</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Balance at September 30, 2022</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iE_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zr8Nt9rq5XLa" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">595,882</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z02kzxgfOHD9" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">2,030,250</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z65KPeBi3ji9" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">6.00</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 17.3pt; text-indent: -8.65pt"><span style="font-size: 10pt">Options granted</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98A_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesGrantedAvailableForGrant_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zHXwHpcx8WFa" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(170,542</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zQUVYkx5GIpa" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">170,542</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zVLIO2MKT468" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">2.00</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 17.3pt; text-indent: -8.65pt"><span style="font-size: 10pt">Share awards</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_980_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesGrantedAwards_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zxp32JmLZqBh" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(6,375</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">—</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">—</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 17.3pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt">Options cancelled and returned to the Plan</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_980_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesCancelledAvailableForGrant_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zAtL26VmkYUg" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">26,594</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_di_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zdzv8WLSNNla" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(26,594</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zzrdxN4arP6h" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: right"><span style="font-size: 10pt">5.82</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 8.65pt; text-indent: -8.65pt; padding-bottom: 2.5pt"><span style="font-size: 10pt">Balance at December 31, 2022</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iE_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zN3t4pRDkxBc" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">445,559</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zGorHuGaIhQg" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">2,174,198</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">$</span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zZCjhztw4Zg5" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">5.69</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td></tr> </table> <p id="xdx_8A9_zYHT8pr2PXrl" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt">There were no stock options exercised during the nine months ended December 31, 2022 and 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p id="xdx_89E_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsAndStockAppreciationRightsAwardActivityTableTextBlock_zLTJSD7Iorei" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt">The following table summarizes the range of outstanding and exercisable options as of December 31, 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span style="font-size: 10pt"><span id="xdx_8BC_zhZZ2J9lYkxa" style="display: none">Schedule of Outstanding and Exercisable Option, Range</span></span></span></p> <table cellpadding="0" cellspacing="0" id="xdx_883_ecustom--DisclosureStockBasedCompensationDetails3Abstract_zx6IDv9Up01c" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - STOCK-BASED COMPENSATION (Details 3)"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; font-size: 12pt; text-align: center; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="white-space: nowrap; font-weight: bold; text-align: center; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td colspan="10" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Options Outstanding</b></span></td><td style="white-space: nowrap; font-weight: bold; text-align: center; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="white-space: nowrap; font-weight: bold; text-align: center; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td colspan="10" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Options Exercisable</b></span></td><td style="font-weight: bold; text-align: center; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif"><b>Range of Exercise Price</b></span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Number </b><br/> <b>Outstanding</b></span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Weighted</b><br/> <b>Average </b><br/> <b>Remaining </b><br/> <b>Contractual </b><br/> <b>Life (in Years)</b></span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Weighted </b><br/> <b>Average</b><br/> <b>Exercise</b><br/> <b>Price</b></span></td><td style="white-space: nowrap; font-weight: bold; text-align: center; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="white-space: nowrap; font-weight: bold; text-align: center; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Number </b><br/> <b>Exercisable</b></span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center; text-indent: 8.65pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center; text-indent: 17.3pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Weighted </b><br/> <b>Average</b><br/> <b>Exercise</b><br/> <b>Price</b></span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Aggregate </b><br/> <b>Intrinsic</b><br/> <b>value</b></span></td><td style="font-weight: bold; text-align: center; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="width: 22%; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">$<span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_c20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember__srt--RangeAxis__srt--MinimumMember_zSSmqA688zcb">1.98</span> - $<span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_c20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember__srt--RangeAxis__srt--MaximumMember_zYUI4ctrSybb">17.70</span></span></td><td style="width: 3%; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z9Y0X0GwqaPb" style="width: 8%; text-align: right; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">2,174,198</span></td><td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="width: 3%; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td id="xdx_982_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtxH_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z1xwZAO3lb8l" style="width: 8%; text-align: right; padding-bottom: 1pt" title="::XDX::P7Y11M8D"><span style="font: 10pt Times New Roman, Times, Serif">7.94</span></td><td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="width: 3%; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zA9fHg2sUkDl" style="width: 8%; text-align: right; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">5.69</span></td><td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="width: 3%; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zdX1z2gbABl2" style="width: 8%; text-align: right; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">1,360,318</span></td><td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="width: 3%; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_c20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zpPmoee7T7ee" style="width: 8%; text-align: right; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">5.87</span></td><td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="width: 3%; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="width: 1%; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td><td id="xdx_982_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_c20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zomTXbehsQWk" style="width: 8%; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif">8,894</span></td><td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td></tr> </table> <p id="xdx_8A9_zRwGaGucYvN8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The intrinsic value per share is calculated as the excess of the closing price of the common stock on the Company’s principal trading market over the exercise price of the option.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The Company is required to present the tax benefits resulting from tax deductions in excess of the compensation cost recognized from the exercise of stock options as financing cash flows in the consolidated statements of cash flows. For the nine months ended December 31, 2022 and 2021, there were no such tax benefits associated with the exercise of stock options, as no stock options were exercised.</span></p> 1000000 333334 1333334 <p id="xdx_891_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_zP2779Tmibdf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_8B7_zLbwmkOub6gf" style="display: none">Schedule of Fair value Assumptions of Options</span></span></p> <table cellpadding="0" cellspacing="0" id="xdx_88E_ecustom--DisclosureStockBasedCompensationDetailsAbstract_zb2gfZU2Z0J1" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - STOCK-BASED COMPENSATION (Details)"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-left: 8.65pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="6" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Three Months Ended <br/> December 31,</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="6" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Nine Months Ended <br/> December 31,</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-left: 8.65pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2022</span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2021</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2022</span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">2021</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Risk-free interest rates</span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><span style="font-size: 10pt"><span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_c20221001__20221231__srt--RangeAxis__srt--MinimumMember_zgmrKrCtqUif">3.93%</span> - <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_c20221001__20221231__srt--RangeAxis__srt--MaximumMember_zx3IgLCQa0Q5">3.99%</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><span style="font-size: 10pt"><span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_c20211001__20211231__srt--RangeAxis__srt--MinimumMember_zPWWnSDqo0kl">1.26%</span> - <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_c20211001__20211231__srt--RangeAxis__srt--MaximumMember_zBUIWDkY3Tze">1.36%</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><span style="font-size: 10pt"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_c20220401__20221231__srt--RangeAxis__srt--MinimumMember_zRXeo6EaZ4Q9">2.82%</span> - <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_c20220401__20221231__srt--RangeAxis__srt--MaximumMember_zA1Vq9AHuCn1">4.06%</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><span style="font-size: 10pt"><span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_c20210401__20211231__srt--RangeAxis__srt--MinimumMember_zdDRNQprowP3">0.8%</span> - <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_c20210401__20211231__srt--RangeAxis__srt--MaximumMember_zZ7nkMGwCQHj">1.36%</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; width: 48%; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Volatility</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_c20221001__20221231_zZy18G0H4qi6">149%</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt"><span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_c20211001__20211231__srt--RangeAxis__srt--MinimumMember_zANqxseLVqhc">197%</span> - <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_c20211001__20211231__srt--RangeAxis__srt--MaximumMember_zl4tgI6XUx8d">253%</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_c20220401__20221231__srt--RangeAxis__srt--MinimumMember_zYlw8tYe7oah">149%</span> - <span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_c20220401__20221231__srt--RangeAxis__srt--MaximumMember_zu9eQPOkv415">223%</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_c20210401__20211231__srt--RangeAxis__srt--MinimumMember_zZhgo5txVYk4">89%</span> - <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_c20210401__20211231__srt--RangeAxis__srt--MaximumMember_z6Rdk8Yv3nJ8">370%</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Expected life (years)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt"><span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dxH_c20221001__20221231__srt--RangeAxis__srt--MinimumMember_zWiB2RLckmS9" title="::XDX::P5Y">5.0</span> - <span id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dxH_c20221001__20221231__srt--RangeAxis__srt--MaximumMember_zP1GEN0yPMgf" title="::XDX::P5Y8M12D">5.7</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt"><span id="xdx_907_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dxH_c20211001__20211231__srt--RangeAxis__srt--MinimumMember_zYkx3rVLRkCg" title="::XDX::P5Y">5.0</span> - <span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dxH_c20211001__20211231__srt--RangeAxis__srt--MaximumMember_zzPpmaLjGlzk" title="::XDX::P6Y">6.0</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt"><span id="xdx_900_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dxH_c20220401__20221231__srt--RangeAxis__srt--MinimumMember_zUbR0lrpP2Ib" title="::XDX::P5Y">5.0</span> - <span id="xdx_909_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dxH_c20220401__20221231__srt--RangeAxis__srt--MaximumMember_zLiz3M5ZWXob" title="::XDX::P5Y8M12D">5.7</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt"><span id="xdx_90E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dxH_c20210401__20211231__srt--RangeAxis__srt--MinimumMember_zD0iKBsDmqxj" title="::XDX::P5Y">5.0</span> - <span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dxH_c20210401__20211231__srt--RangeAxis__srt--MaximumMember_zF8sMY22DC08" title="::XDX::P6Y2M12D">6.2</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> </table> 0.0393 0.0399 0.0126 0.0136 0.0282 0.0406 0.008 0.0136 1.49 1.97 2.53 1.49 2.23 0.89 3.70 <p id="xdx_895_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zFMR6Q1LwyLl" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt">A summary of stock option activity under the Plan is presented below:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span id="xdx_8B7_zDYmT6hB0mW9" style="display: none">Schedule of Stock Option activity</span></span></p> <table cellpadding="0" cellspacing="0" id="xdx_88E_ecustom--DisclosureStockBasedCompensationDetails2Abstract_zZEUT7iODGri" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - STOCK-BASED COMPENSATION (Details 2)"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-left: 8.65pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="6" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Options Outstanding</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center; padding-left: 8.65pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Shares <br/> Available <br/>for Grant</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Number of <br/> Shares</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><span style="font-size: 10pt">Weighted <br/> Average<br/> Exercise <br/>Prices</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 61%; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Balance at March 31, 2022</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iS_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zDy2ZNa8cqj" style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">989,466</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zey9NhNQqYKl" style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">1,650,705</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt">$</span></td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zzGjv2vDzmUj" style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: right"><span style="font-size: 10pt">6.58</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 17.3pt; text-indent: -8.65pt"><span style="font-size: 10pt">Options granted</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_984_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesGrantedAvailableForGrant_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zt5cZC9tlNyi" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(265,634</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zF1lcx5rJ4Kf" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">265,634</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zjXQ2jQ07gF2" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">4.35</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 17.3pt; text-indent: -8.65pt"><span style="font-size: 10pt">Share awards</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesGrantedAwards_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zpG9RRJ1Ya5l" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(2,664</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">—</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">—</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 17.3pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt">Options cancelled and returned to the Plan</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesCancelledAvailableForGrant_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zVwUAvfqDHF8" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">96,668</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_di_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zfZyjahfONke" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(96,668</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z7revZ6gLvo2" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: right"><span style="font-size: 10pt">7.69</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Balance at June 30, 2022</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iE_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zKDI4Lq1Ao01" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">817,836</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zp1sb1DyW6L1" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">1,819,671</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20220401__20220630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zNhPwI6Rmdsd" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">6.19</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 17.3pt; text-indent: -8.65pt"><span style="font-size: 10pt">Options granted</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_988_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesGrantedAvailableForGrant_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zBreamkFPmdg" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(241,023</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zqiXTkYMtST6" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">241,023</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zmmWWHda1HYf" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">4.35</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 17.3pt; text-indent: -8.65pt"><span style="font-size: 10pt">Share awards</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesGrantedAwards_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zEgTeuBeqMu4" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(11,375</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">—</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">—</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 17.3pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt">Options cancelled and returned to the Plan</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesCancelledAvailableForGrant_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z9DsRMechIu8" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">30,444</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_di_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zGLLZr5HK8Zk" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(30,444</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zySAXxhq9Pq1" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: right"><span style="font-size: 10pt">4.67</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 8.65pt; text-indent: -8.65pt"><span style="font-size: 10pt">Balance at September 30, 2022</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iE_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zr8Nt9rq5XLa" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">595,882</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z02kzxgfOHD9" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">2,030,250</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20220701__20220930__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z65KPeBi3ji9" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">6.00</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 17.3pt; text-indent: -8.65pt"><span style="font-size: 10pt">Options granted</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98A_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesGrantedAvailableForGrant_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zHXwHpcx8WFa" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(170,542</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zQUVYkx5GIpa" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">170,542</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zVLIO2MKT468" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">2.00</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 17.3pt; text-indent: -8.65pt"><span style="font-size: 10pt">Share awards</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_980_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesGrantedAwards_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zxp32JmLZqBh" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(6,375</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">—</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">—</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 17.3pt; text-indent: -8.65pt; padding-bottom: 1pt"><span style="font-size: 10pt">Options cancelled and returned to the Plan</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_980_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesCancelledAvailableForGrant_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zAtL26VmkYUg" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">26,594</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_di_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zdzv8WLSNNla" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">(26,594</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zzrdxN4arP6h" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: right"><span style="font-size: 10pt">5.82</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 8.65pt; text-indent: -8.65pt; padding-bottom: 2.5pt"><span style="font-size: 10pt">Balance at December 31, 2022</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iE_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zN3t4pRDkxBc" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">445,559</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-size: 10pt"> </span></td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zGorHuGaIhQg" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">2,174,198</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-size: 10pt">$</span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zZCjhztw4Zg5" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-size: 10pt">5.69</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><span style="font-size: 10pt"> </span></td></tr> </table> 989466 1650705 6.58 -265634 265634 4.35 -2664 96668 96668 7.69 817836 1819671 6.19 -241023 241023 4.35 -11375 30444 30444 4.67 595882 2030250 6.00 -170542 170542 2.00 -6375 26594 26594 5.82 445559 2174198 5.69 <p id="xdx_89E_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsAndStockAppreciationRightsAwardActivityTableTextBlock_zLTJSD7Iorei" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt">The following table summarizes the range of outstanding and exercisable options as of December 31, 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><span style="font-size: 10pt"><span id="xdx_8BC_zhZZ2J9lYkxa" style="display: none">Schedule of Outstanding and Exercisable Option, Range</span></span></span></p> <table cellpadding="0" cellspacing="0" id="xdx_883_ecustom--DisclosureStockBasedCompensationDetails3Abstract_zx6IDv9Up01c" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - STOCK-BASED COMPENSATION (Details 3)"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; font-size: 12pt; text-align: center; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="white-space: nowrap; font-weight: bold; text-align: center; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td colspan="10" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Options Outstanding</b></span></td><td style="white-space: nowrap; font-weight: bold; text-align: center; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="white-space: nowrap; font-weight: bold; text-align: center; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td colspan="10" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Options Exercisable</b></span></td><td style="font-weight: bold; text-align: center; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif"><b>Range of Exercise Price</b></span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Number </b><br/> <b>Outstanding</b></span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Weighted</b><br/> <b>Average </b><br/> <b>Remaining </b><br/> <b>Contractual </b><br/> <b>Life (in Years)</b></span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Weighted </b><br/> <b>Average</b><br/> <b>Exercise</b><br/> <b>Price</b></span></td><td style="white-space: nowrap; font-weight: bold; text-align: center; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="white-space: nowrap; font-weight: bold; text-align: center; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Number </b><br/> <b>Exercisable</b></span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center; text-indent: 8.65pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center; text-indent: 17.3pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Weighted </b><br/> <b>Average</b><br/> <b>Exercise</b><br/> <b>Price</b></span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Aggregate </b><br/> <b>Intrinsic</b><br/> <b>value</b></span></td><td style="font-weight: bold; text-align: center; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,204)"> <td style="width: 22%; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">$<span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_c20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember__srt--RangeAxis__srt--MinimumMember_zSSmqA688zcb">1.98</span> - $<span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_c20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember__srt--RangeAxis__srt--MaximumMember_zYUI4ctrSybb">17.70</span></span></td><td style="width: 3%; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z9Y0X0GwqaPb" style="width: 8%; text-align: right; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">2,174,198</span></td><td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="width: 3%; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td id="xdx_982_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtxH_c20221001__20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z1xwZAO3lb8l" style="width: 8%; text-align: right; padding-bottom: 1pt" title="::XDX::P7Y11M8D"><span style="font: 10pt Times New Roman, Times, Serif">7.94</span></td><td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="width: 3%; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zA9fHg2sUkDl" style="width: 8%; text-align: right; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">5.69</span></td><td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="width: 3%; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zdX1z2gbABl2" style="width: 8%; text-align: right; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">1,360,318</span></td><td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="width: 3%; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_c20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zpPmoee7T7ee" style="width: 8%; text-align: right; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">5.87</span></td><td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td><td style="width: 3%; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="width: 1%; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td><td id="xdx_982_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_c20221231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zomTXbehsQWk" style="width: 8%; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif">8,894</span></td><td style="width: 1%; text-align: left; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td></tr> </table> 1.98 17.70 2174198 5.69 1360318 5.87 8894 <p id="xdx_80B_eus-gaap--IncomeTaxDisclosureTextBlock_zTOwbBJmW5Sg" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">NOTE 7 – <span id="xdx_82A_zr2YVT0FLKef">INCOME TAXES</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The Company determines deferred tax assets and liabilities based upon the differences between the financial statement and tax bases of the Company’s assets and liabilities using tax rates in effect for the year in which the Company expects the differences to affect taxable income. A valuation allowance is established for any deferred tax assets for which it is more likely than not that all or a portion of the deferred tax assets will not be realized. Based on the available information and other factors, management believes it is more likely than not that its federal and state net deferred tax assets will not be fully realized, and the Company has recorded a full valuation allowance.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The Company files U.S. federal and state income tax returns in jurisdictions with varying statutes of limitations. All tax returns for fiscal 2016 to fiscal 2022 may be subject to examination by the U.S. federal and state tax authorities. As of December 31, 2022, the Company has not recorded any liability for unrecognized tax benefits related to uncertain tax positions.</span></p> <p id="xdx_806_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_zSGH98c5cnTg" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"><span style="font-size: 10pt">NOTE 8 – <span id="xdx_828_z1Y4P9Ng0sIf">COMMITMENTS &amp; CONTINGENCIES</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><i>Litigations, Claims and Assessments</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">In the normal course of business, the Company may be involved in legal proceedings, claims and assessments arising in the ordinary course of business. The Company records legal costs associated with loss contingencies as incurred and accrues for all probable and estimable settlements.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><i>Indemnification</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">In the ordinary course of business, the Company enters into contractual arrangements under which it may agree to indemnify the counterparties from any losses incurred relating to breach of representations and warranties, failure to perform certain covenants, or claims and losses arising from certain events as outlined within the particular contract, which may include, for example, losses arising from litigation or claims relating to past performance. Such indemnification clauses may not be subject to maximum loss clauses. The Company has also entered into indemnification agreements with its officers and directors. No amounts were reflected in the Company’s consolidated financial statements for the nine months ended December 31, 2022 and 2021 related to these indemnifications. The Company has not estimated the maximum potential amount of indemnification liability under these agreements due to the limited history of prior claims and the unique facts and circumstances applicable to each particular agreement. To date, the Company has not made any payments related to these indemnification agreements, and no claims for payment have been made under such agreements.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><span style="font-size: 10pt"><i>Purchase Obligations</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt">The Company's primary purchase obligations include purchase orders for machinery and equipment. At December 31, 2022, the Company had outstanding purchase orders for machinery and equipment and related expenditures of approximately $735,000.</span></p> <p id="xdx_80F_eus-gaap--SubsequentEventsTextBlock_zkX9xKLGkw14" style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"><span style="font-size: 10pt">NOTE 9 – <span id="xdx_82A_zRm7UiYq8Ke3">SUBSEQUENT EVENTS</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify; background-color: white; color: #222222"><span style="font-size: 10pt"><i>New Lease Agreement</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify; background-color: white; color: #222222"><span style="font-size: 10pt">On January 5, 2023, the Company entered into a lease agreement (the Thornhill Lease) with Michael Summers (the Lessor) for a new headquarters facility pursuant to which the Company will lease approximately 24,000 square feet of a building located in San Diego, California, commencing on or about February 1, 2023. The monthly base rent is $36,000 for the first 12 months of the lease and will increase by 4% of the prior year’s base rent at the beginning of each 12-month period thereafter. The lease term is 48 months.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #222222"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify; background-color: white; color: #222222"><span style="font-size: 10pt">Under the Thornhill Lease, the Company will pay the Lessor a monthly fee for its pro-rated share of specified common area charges, including maintenance costs, property taxes and insurance, in addition to base rent. The monthly fee for the common area charges is approximately $10,700 and will be adjusted based on actual costs incurred by the Lessor.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify; background-color: white; color: #222222"><span style="font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify; background-color: white; color: #222222"><span style="font-size: 10pt"><i>Amended 2017 Equity Incentive Plan</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify; background-color: white"><span style="font-size: 10pt; color: #222222">In January 2023, the Company’s stockholders </span><span style="font-size: 10pt">approved an increase in the number of shares reserved for issuance under the Plan by <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesEmployeeBenefitPlan_c20230101__20230131__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_znvywmqQW0O7" title="Shares approved under Equity Incentive Plan">2,000,000</span> shares.</span></p> 2000000 EXCEL 45 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx M4$L#!!0 ( *N(358'04UB@0 +$ 0 9&]C4')O<',O87!P+GAM M;$V./0L",1!$_\IQO;=!P4)B0-!2L+(/>QLOD&1#LD)^OCG!CVX>;QA&WPIG M*N*I#BV&5(_C(I(/ !47BK9.7:=N')=HI6-Y #OGDK7A.YNJQ<&4GPZ4A!0W_J=0U[R;UEA_6\#MI7E!+ P04 M " "KB$U6)^J2<^T K @ $0 &1O8U!R;W!S+V-O&ULS9+! 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