Liquidity

12 Months Ended

Dec. 31, 2021

Liquidity Disclosure [Abstract]

LIQUIDITY

NOTE 2 – LIQUIDITY

As of December 31, 2021, the Company had an accumulated deficit of $63,715,000 and experienced losses since its inception. Losses have principally occurred as a result of the substantial resources required for research and development of the Company’s products, which included the general and administrative expenses associated with its organization and product development as well as the lack of sources of revenues until such time as the Company’s products are commercialized.

To meet its current and future obligations the Company has taken the following steps to capitalize the business and achieve its business plan: 

● During July 2021, the Company completed a registered direct public offering in which it sold 1,818,182 shares of common stock to investors for estimated net proceeds of $36.9 million.

● During June 2021, the Company entered into a loan and security agreement and drew down a $15.0 million term loan.

● During March 2021, the Company entered into a sales agreement with BTIG, LLC (“BTIG”), as agent, to establish an At-The-Market (“ATM”) offering of up to $45 million of common stock (the “2021 ATM”), subject to certain limitations on the amount of common stock that may be offered and sold by the Company set forth in the sales agreement. The Company is required to pay BTIG a commission of 3% of the gross proceeds from the sale of shares. The Company has sold 713,192 shares of its common stock at an average price of $21.73 through the 2021 ATM for net proceeds of $14.9 million.

● During April 2020, the Company entered into a sales agreement with BTIG, as sales agent, to establish an ATM offering to sell up to $10.0 million of the Company’s common stock (the “2020 ATM”). In August 2020, the sales agreement was amended whereby the aggregate offering was increased from $10.0 million to $30.0 million. From April 2020 through December 2020, the Company sold 178,600 shares of common stock at an average price of $5.45 per share for net proceeds of approximately $0.8 million. During the year ended December 31, 2021, the Company sold in aggregate 1,439,480 shares on common stock at an average price of $20.17 per share for net proceeds of $28.4 million. As of December 31, 2021, sales of our common stock pursuant to the 2020 ATM have been completed.

Although it is difficult to predict the Company’s liquidity requirements, as of December 31, 2021, and based upon the Company’s current operating plan, the Company believes that it will have sufficient cash to meet its projected operating requirements for at least the next 12 months following the filing date of this Annual Report on Form 10-K based on the balance of cash available as of December 31, 2021. The Company anticipates that it will continue to incur net losses for the foreseeable future as it continues the development of its clinical drug candidates and preclinical programs and incurs additional costs associated with being a public company.