Annual report pursuant to Section 13 and 15(d)

Quarterly Financial Information (Unaudited)

v3.22.2
Quarterly Financial Information (Unaudited)
12 Months Ended
Dec. 31, 2021
Quarterly Financial Information (Unaudited)  
Quarterly Financial Information (Unaudited)

17. Quarterly Financial Information (Unaudited)

The following tables contain unaudited condensed consolidated quarterly financial information for the quarterly periods ended March 31, June 30, and September 30, 2021, that has been updated to reflect the restatement and revision of the Company’s consolidated financial statements as described in Note 2—Restatement of Financial Statements. The restatement and revision had an impact on net cash flows from financing activities. The Company has not amended its previously filed Quarterly Reports on Form 10-Q for the Affected Periods. The financial information that has been previously filed or otherwise reported for the Affected Periods is superseded by the information in this Annual Report, and the consolidated financial statements and related financial information for the Affected Period contained in such previously filed reports should no longer be relied upon.

Balance Sheet as of March 31, 2021

As of March 31, 2021

As Previously

2020

2021

Balance Sheet

    

Reported

restatements

    

restatements

As Restated

Total Current Assets

$

6,991,086

$

6,991,086

Property and Equipment, Net

 

84,264

 

 

 

84,264

Restricted Cash

 

45,000

 

 

 

45,000

Goodwill

 

3,484,607

$

146,605

 

 

3,631,212

Intangible Assets and In-process R&D, Net

 

9,723,914

 

 

 

9,723,914

Operating Leases Assets with Right-of-Use

 

242,730

 

 

 

242,730

Other Assets

 

49,001

 

 

 

49,001

Total assets

$

20,620,602

$

146,605

 

$

20,767,207

Liabilities and stockholders’ equity

 

  

 

  

 

  

 

  

Total current liabilities

$

1,425,598

 

212,281

 

  

$

1,637,879

Contingent Consideration

 

5,342,950

 

(2,795,876)

$

(570,203)

 

1,976,871

Deferred Tax Liability

 

728,926

 

 

 

728,926

Paycheck Protection Program Loan

 

278,190

 

 

 

278,190

Non-current Operating Lease Liabilities

 

159,938

 

 

 

159,938

Total liabilities

 

7,935,602

 

(2,583,595)

 

(570,203)

 

4,781,804

Stockholders’ equity

 

  

 

  

 

  

 

  

Preferred Stock, $0.01 par value

 

41

 

 

 

41

Common Stock, $0.01 par value

 

70,979

 

 

 

70,979

Additional paid-in-capital

 

123,523,964

 

1,500,030

 

 

125,023,994

Accumulated deficit

 

(110,919,655)

 

1,230,170

 

570,203

 

(109,119,282)

Accumulated Other Comprehensive Income

 

9,671

 

 

 

9,671

Total stockholders’ equity

 

12,685,000

 

2,730,200

 

570,203

 

15,985,403

Total liabilities and stockholders’ equity

$

20,620,602

$

146,605

 

$

20,767,207

Statement of Operations and Comprehensive Loss for the 3 months ended March 31, 2021

For the 3 months ended March 31, 2021

As Previously

2021

    

Statement of Operations and Comprehensive Loss

Reported

restatements

As restated

Research and Development

$

1,280,242

 

$

1,280,242

General and Administrative

 

1,300,143

 

 

1,300,143

Change in Fair Value of Contingent Consideration

 

$

(570,203)

 

(570,203)

Total Operating Expenses

 

2,580,385

 

(570,203)

 

2,010,182

Operating Loss before Other Income

 

(2,580,385)

 

570,203

 

(2,010,182)

Interest Income

250

250

Interest Expense

 

(686)

 

 

(686)

Total other (expense) income

 

(436)

 

 

(436)

Loss before Income Tax Benefit (Expense)

(2,580,821)

570,203

(2,010,618)

Income Tax Benefit (Expense)

Net loss

$

(2,580,821)

$

570,203

$

(2,010,618)

Weighted Average Shares Outstanding - Basic and Diluted

 

6,954,438

 

403,461

 

7,357,899

Basic and Diluted net loss

$

(0.37)

 

  

$

(0.27)

Other comprehensive loss:

Net Loss

$

(2,580,821)

$

570,203

$

(2,010,618)

Foreign Currency Translation Adjustments

10,473

10,473

Comprehensive Loss

$

(2,570,348)

$

570,203

$

(2,000,145)

Stockholders’ Equity as of March 31, 2021

As of March 31, 2021

As Previously

2020

2021

Stockholders’ equity

    

Reported

    

restatements

    

restatements

    

As restated

Preferred Stock, $0.01 par value

$

41

 

 

$

41

Common Stock, $0.01 par value

 

70,979

 

 

 

70,979

Additional paid-in-capital

 

123,523,964

$

1,500,030

 

 

125,023,994

Accumulated deficit

 

(110,919,655)

 

1,230,170

$

570,203

 

(109,119,282)

Accumulated Other Comprehensive Income

 

9,671

 

 

 

9,671

Total stockholders’ equity

$

12,685,000

$

2,730,200

$

570,203

$

15,985,403

Statement of Cash Flows for the 3 months ended March 31, 2021

As of March 31, 2021

    

    

2021 

    

As Previously 

Restatement 

Statement of Cash Flows

Reported

Adjustment

As restated

Operating Activities

Net loss

$

(2,580,821)

$

570,203

$

(2,010,618)

Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:

Depreciation and Amortization of Intangible Assets

 

10,599

 

 

10,599

Reduction of Right-of-Use Assets

 

39,490

 

 

39,490

Stock-Based Compensation

 

216,945

 

 

216,945

Change in Fair Value of Contingent Consideration

 

 

(570,203)

 

(570,203)

Deferred Taxes

 

 

 

Paycheck Protection Program Loan Forgiveness

 

 

 

Goodwill Impairment Loss

 

 

 

Intangible Asset Impairment Loss

 

 

 

Changes in Operating Assets and Liabilities, Net of Effects of Business Acquired:

 

 

 

  

Prepaid Expenses and Other Current Assets

 

216,078

 

 

216,078

Refundable Tax Credit Receivable

 

(59,706)

 

 

(59,706)

Other Assets

 

8,073

 

 

8,073

Accounts Payable

 

22,583

 

 

22,583

Lease Liabilities

 

(39,490)

 

 

(39,490)

Accrued Expenses

 

(403,802)

 

 

(403,802)

Net cash used in operating activities

 

(2,570,051)

 

 

(2,570,051)

Net cash used in investing activities

 

(58,119)

 

 

(58,119)

Financing Activities

Proceeds from stock offerings

 

7,988,861

 

 

7,988,861

Stock issuance costs

 

 

 

Exercise warrants

 

50,001

 

 

50,001

Repayment of Loan Payable

 

 

 

Net cash provided by financing activities

 

8,038,862

 

 

8,038,862

Effects of Exchange Rate Changes on Cash

 

14,123

 

 

14,123

Net Cash Increase or decrease

 

5,424,815

 

 

5,424,815

Cash, Including Restricted Cash, Beginning of Year

 

1,230,677

 

 

1,230,677

Cash, Including Restricted Cash, End of Year

$

6,655,492

 

$

6,655,492

Balance Sheet as of June 30, 2021

As of June 30, 2021

As Previously

2020

2021

Balance Sheet

    

Reported

    

restatements

    

restatements

    

As Restated

Total Current Assets

$

4,415,173

 

 

$

4,415,173

Property and Equipment, Net

 

83,682

 

 

 

83,682

Restricted cash

 

45,000

 

 

 

45,000

Goodwill

 

3,484,607

$

146,605

 

 

3,631,212

Intangible Assets and In-process R&D, Net

 

9,717,664

 

 

 

9,717,664

Operating Leases Assets with Right-of-Use

 

308,013

 

 

 

308,013

Other Assets

 

45,921

 

 

 

45,921

Total assets

$

18,100,060

$

146,605

 

$

18,246,665

Liabilities and stockholders’ equity

 

  

 

  

 

  

 

  

Total current liabilities

$

1,436,440

 

212,281

 

$

1,648,721

Contingent Consideration

 

5,342,950

 

(2,795,876)

$

(496,486)

 

2,050,588

Deferred Tax Liability

 

728,926

 

 

 

728,926

Non-current Operating Lease Liabilities

 

137,957

 

 

 

137,957

Total liabilities

 

7,646,273

 

(2,583,595)

 

(496,486)

 

4,566,192

Stockholders’ equity

 

  

 

  

 

  

 

  

Preferred Stock, $0.01 par value

 

41

 

 

 

41

Common Stock, $0.01 par value

 

70,979

 

 

 

70,979

Additional paid-in-capital

 

123,786,856

 

1,500,030

 

 

125,286,886

Accumulated deficit

 

(113,388,953)

 

1,230,170

 

496,486

 

(111,662,297)

Accumulated Other Comprehensive Income

 

(15,136)

 

 

 

(15,136)

Total stockholders’ equity

 

10,453,787

 

2,730,200

 

496,486

 

13,680,473

Total liabilities and stockholders’ equity

$

18,100,060

$

146,605

 

$

18,246,665

Statement of Operations and Comprehensive Loss for the 3 months ended June 30, 2021

For the 3 months ended June 30, 2021

As Previously

2021

Statement of Operations and Comprehensive Loss

    

Reported

    

Restatement

    

As restated

Research and Development

$

1,439,922

 

$

1,439,922

General and Administrative

 

1,305,865

 

 

1,305,865

Change in Fair Value of Contingent Consideration Expense

 

$

73,717

 

73,717

Total Operating Expenses

 

2,745,787

 

73,717

 

2,819,504

Operating Loss before Other Income

 

(2,745,787)

 

(73,717)

 

(2,819,504)

Other (expense) income:

 

  

 

  

 

  

Gain on Forgiveness of Loan

 

278,190

 

 

278,190

Interest Income

 

332

 

 

332

Interest Expense

 

(2,033)

 

 

(2,033)

Total other (expense) income

 

276,489

 

  

 

276,489

Loss before Income Tax Benefit (Expense)

(2,469,298)

(73,717)

(2,543,015)

Income Tax Benefit (Expense)

Net Loss

$

(2,469,298)

$

(73,717)

$

(2,543,015)

Weighted Average Shares Outstanding - Basic and Diluted

 

7,062,750

 

403,461

 

7,466,211

Basic and Diluted net loss

$

(0.35)

 

  

$

(0.34)

Other comprehensive loss:

Net Loss

$

(2,469,298)

$

(73,317)

$

(2,543,015)

Foreign Currency Translation Adjustments

(24,807)

(24,807)

Comprehensive Loss

$

(2,494,105)

$

(73,317)

$

(2,567,822)

Statement of Operations and Comprehensive Loss for the 6 months ended June 30, 2021

For the 6 months ended June 30, 2021

    

As 

    

    

Previously 

2021 

Statement of Operations and Comprehensive Loss

Reported

restatements

As restated

Research and Development

$

2,720,164

 

$

2,720,164

General and Administrative

 

2,606,008

 

 

2,606,008

Change in Fair Value of Contingent Consideration

 

$

(496,486)

 

(496,486)

Total Operating Expenses

 

5,326,172

 

(496,486)

 

4,829,686

Operating Loss before Other Income

 

(5,326,172)

 

496,486

 

(4,829,686)

Other (expense) income:

 

  

 

  

 

  

Gain on Forgiveness of Loan

 

278,190

 

 

278,190

Interest Income

 

582

 

 

582

Interest Expense

 

(2,719)

 

 

(2,719)

Total other (expense) income

 

276,053

 

 

276,053

Loss before Income Tax Benefit (Expense)

(5,050,119)

496,486

(4,553,633)

Income Tax Benefit (Expense)

Net Loss

$

(5,050,119)

$

496,486

$

(4,553,633)

Weighted Average Shares Outstanding - Basic and Diluted

 

7,005,902

403,461

 

7,409,363

Basic and Diluted net loss

$

(0.72)

$

(0.61)

Other comprehensive loss:

Net Loss

$

(5,050,119)

$

496,486

$

(4,553,633)

Foreign Currency Translation Adjustments

 

(14,334)

 

 

(14,334)

Comprehensive Loss

$

(5,064,453)

$

496,486

$

(4,567,967)

Stockholders’ Equity as of June 30, 2021

As of June 30, 2021

As Previously

2020

2021

Stockholders’ equity

    

Reported

    

restatements

    

restatements

    

As restated

Preferred Stock, $0.01 par value

$

41

 

 

$

41

Common Stock, $0.01 par value

 

70,979

 

 

 

70,979

Additional paid-in-capital

 

123,786,856

$

1,500,030

 

 

125,286,886

Accumulated deficit

 

(113,388,953)

 

1,230,170

$

496,486

 

(111,662,297)

Accumulated Other Comprehensive Income

 

(15,136)

 

 

 

(15,136)

Total stockholders’ equity

$

10,453,787

$

2,730,200

$

496,486

$

13,680,473

Statement of Cash Flows for the 6 months ended June 30, 2021

As of June 30, 2021

    

    

2021 

    

As Previously 

Restatement 

Statement of Cash Flows

Reported

Adjustment

As restated

Operating Activities

Net loss

$

(5,050,119)

$

496,486

$

(4,553,633)

Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:

Depreciation and Amortization of Intangible Assets

 

23,203

 

 

23,203

Reduction of Right-of-Use Assets

 

86,387

 

 

86,387

Stock-Based Compensation

 

479,837

 

 

479,837

Change in Fair Value of Contingent Consideration

 

 

(496,486)

 

(496,486)

Deferred Taxes

 

 

 

  

Paycheck Protection Program Loan Forgiveness

 

(278,190)

 

(278,190)

Goodwill Impairment Loss

 

 

 

Intangible Asset Impairment Loss

 

 

 

Changes in Operating Assets and Liabilities, Net of Effects of Business Acquired:

 

 

 

  

Prepaid Expenses and Other Current Assets

 

8,786

 

 

8,786

Refundable Tax Credit Receivable

 

(222,645)

 

 

(222,645)

Other Assets

 

11,153

 

 

11,153

Accounts Payable

 

(142,444)

 

 

(142,444)

Lease Liabilities

 

(86,387)

 

 

(86,387)

Accrued Expenses

 

(315,196)

 

 

(315,196)

Net cash used in operating activities

 

(5,207,425)

 

(278,190)

 

(5,485,615)

Net cash used in investing activities

 

(63,865)

 

 

(63,865)

Financing Activities

Proceeds from stock offerings

 

7,988,861

 

 

7,988,861

Stock Issuance Costs

 

 

 

PPP Loan Forgiveness

 

(278,190)

 

278,190

 

  

Exercise of Warrants

 

50,001

 

 

50,001

Repayment of Loan Payable

 

 

 

Net cash provided by financing activities

 

7,760,672

 

278,190

 

8,038,862

Effects of Exchange Rate Changes on Cash

 

(11,835)

 

 

(11,835)

Net Cash Increase or decrease

 

2,477,547

 

 

2,477,547

Cash, Including Restricted Cash, Beginning of Year

 

1,230,677

 

 

1,230,677

Cash, Including Restricted Cash, End of Year

$

3,708,224

$

$

3,708,224

Balance Sheet as of September 30, 2021

As of September 30, 2021

As Previously

2020

2021

Balance Sheet

    

Reported

    

restatements

    

Restatement

    

As Restated

Total Current Assets

 

$

11,870,019

 

 

 

$

11,870,019

Property and Equipment, Net

 

78,833

 

 

 

78,833

Restricted cash

 

45,000

 

 

 

45,000

Goodwill

 

3,484,607

 

$

146,605

 

 

3,631,212

Intangible Assets and In-process R&D, Net

 

9,711,414

 

 

 

9,711,414

Operating Leases Assets with Right-of-Use

 

259,217

 

 

 

259,217

Other Assets

 

44,249

 

 

 

44,249

Total assets

 

$

25,493,339

 

$

146,605

 

 

$

25,639,944

Liabilities and stockholders’ equity

 

  

 

  

 

  

 

  

Total current liabilities

 

$

1,958,942

 

212,281

 

 

$

2,171,223

Contingent Consideration

 

5,342,950

 

(2,795,876)

 

$

(428,480)

 

2,118,594

Deferred Tax Liability

 

728,926

 

 

 

728,926

Non-current Operating Lease Liabilities

 

114,475

 

 

 

114,475

Total liabilities

 

8,145,293

 

(2,583,595)

 

(428,480)

 

5,133,218

Stockholders’ equity

 

  

 

  

 

  

 

  

Preferred Stock, $0.01 par value

 

 

 

 

Common Stock, $0.01 par value

 

126,193

 

 

 

126,193

Additional paid-in-capital

 

133,637,500

 

1,500,030

 

 

135,137,530

Accumulated deficit

 

(116,355,777)

 

1,230,170

 

428,480

 

(114,697,127)

Accumulated Other Comprehensive Income

 

(59,870)

 

 

 

(59,870)

Total stockholders’ equity

 

17,348,046

 

2,730,200

 

428,480

 

20,506,726

Total liabilities and stockholders’ equity

 

$

25,493,339

 

$

146,605

 

 

$

25,639,944

Statement of Operations and Comprehensive Loss for the 3 months ended September 30, 2021

    

For the 3 months ended September 30, 2021

As Previously

Restatement

Statement of Operations and Comprehensive Loss

Reported

Adjustment

As restated

Research and Development

 

$

1,628,467

 

 

$

1,628,467

General and Administrative

 

1,338,616

 

 

1,338,616

Change in Fair Value of Contingent Consideration

 

 

$

68,006

 

68,006

Total Operating Expenses

 

2,967,083

 

68,006

 

3,035,089

Operating Loss before Other Income

 

(2,967,083)

 

(68,006)

 

(3,035,089)

Other (expense) income:

 

  

 

  

 

  

Interest Income

 

259

 

 

259

Total other (expense) income

 

259

 

 

259

Loss before Income Tax Benefit (Expense)

(2,966,824)

(68,006)

(3,034,830)

Income Tax Benefit (Expense)

Net Loss

 

$

(2,966,824)

 

$

(68,006)

 

$

(3,034,830)

Weighted Average Shares Outstanding – Basic and Diluted

 

10,265,108

 

403,461

 

10,668,569

Basic and Diluted net loss

 

$

(0.29)

 

 

$

(0.28)

Other comprehensive loss:

Net Loss

$

(2,966,824)

$

(68,006)

$

(3,034,830)

Foreign Currency Translation Adjustments

(44,734)

(44,734)

Comprehensive Loss

$

(3,011,558)

$

(68,006)

$

(3,079,564)

Statement of Operations and Comprehensive Loss for the 9 months ended September 30, 2021

    

For the 9 months ended September 30, 2021

    

As Previously 

    

2021 

    

Statement of Operations and Comprehensive Loss

Reported

restatements

As restated

Research and Development

$

4,348,631

$

4,348,631

General and Administrative

3,944,624

3,944,624

Change in Fair Value of Contingent Consideration

$

(428,480)

(428,480)

Total Operating Expenses

8,293,255

(428,480)

7,864,775

Operating Loss before Other Income

(8,293,255)

428,480

(7,864,775)

Other (expense) income:

  

  

  

Gain on Forgiveness of Loan

278,190

278,190

Interest Income

841

841

Interest Expense

(2,719)

(2,719)

Total other (expense) income

276,312

276,312

Loss before Income Tax Benefit (Expense)

(8,016,943)

428,480

(7,588,463)

Income Tax Benefit (Expense)

Loss before Income Tax Benefit (Expense)

$

(8,016,943)

$

428,480

$

(7,588,463)

Weighted Average Shares Outstanding - Basic and Diluted

 

8,101,004

403,461

 

8,504,465

Basic and Diluted net loss

$

(0.99)

$

(0.89)

Other comprehensive loss:

Net Loss

$

(8,016,943)

$

428,480

$

(7,588,463)

Foreign Currency Translation Adjustments

 

(59,068)

 

 

(59,068)

Comprehensive Loss

$

(8,076,011)

 

428,480

$

(7,647,531)

Stockholders’ Equity as of September 30, 2021

As of September 30, 2021

As Previously

2020

2021 Restatements

Stockholders’ equity

    

Reported

    

Restatements

    

    

As restated

Preferred Stock, $0.01 par value

 

 

 

 

Common Stock, $0.01 par value

 

$

126,193

 

 

 

$

126,193

Additional paid-in-capital

 

133,637,500

 

$

1,500,030

 

 

135,137,530

Accumulated deficit

 

(116,355,777)

 

1,230,170

 

$

428,480

 

(114,697,127)

Accumulated Other Comprehensive Income

 

(59,870)

 

 

 

(59,870)

Total stockholders’ equity

 

$

17,348,046

 

$

2,730,200

 

$

428,480

 

$

20,506,726

Statement of Cash Flows for the 9 months ended September 30, 2021

As of September 30, 2021

    

    

2021 

    

As Previously 

Restatement 

Statement of Cash Flows

Reported

Adjustment

As restated

Operating Activities

Net loss

$

(8,016,943)

$

428,480

$

(7,588,463)

Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:

Depreciation and Amortization of Intangible Assets

34,260

 

34,260

Reduction of Right-of-Use Assets

133,514

 

133,514

Stock-Based Compensation

629,306

 

629,306

Change in Fair Value of Contingent Consideration

 

(428,480)

 

(428,480)

Deferred Taxes

 

 

— 

Paycheck Protection Program Loan Forgiveness

 

(278,190)

 

(278,190)

Goodwill Impairment Loss

 

 

Intangible Asset Impairment Loss

 

 

Changes in Operating Assets and Liabilities, Net of Effects of Business Acquired:

 

 

Prepaid Expenses and Other Current Assets

107,940

 

 

107,940

Refundable Tax Credit Receivable

(335,096)

 

 

(335,096)

Other Assets

12,826

 

 

12,826

Accounts Payable

(9,875)

 

 

(9,875)

Lease Liabilities

(133,514)

 

 

(133,514)

Accrued Expenses

100,050

 

 

100,050

Net cash used in operating activities

(7,477,532)

 

(278,190)

 

(7,755,722)

Net cash used in investing activities

(63,865)

 

 

(63,865)

Financing Activities

Proceeds from stock offerings

17,745,207

 

 

17,745,207

Stock Issuance Costs

 

 

Exercise of Warrants

50,001

 

 

50,001

PPP loan forgiveness

(278,190)

 

278,190

 

Repayment of Loan Payable

 

 

Net cash provided by financing activities

17,517,018

 

278,190

 

17,795,208

Effects of Exchange Rate Changes on Cash

(54,371)

 

 

(54,371)

Net Cash Increase or decrease

9,921,250

 

 

9,921,250

Cash, Including Restricted Cash, Beginning of Year

1,230,677

 

 

1,230,677

Cash, Including Restricted Cash, End of Year

$

11,151,927

$

$

11,151,927