|
Delaware
(State or other jurisdiction of incorporation or organization) |
| |
2834
(Primary Standard Industrial Classification Code Number)
6 Liberty Square, #2382
Boston, MA 02109 (857) 837-3099 |
| |
81-1065054
(I.R.S. Employer Identification No.) |
|
|
Michael Bison, Esq.
Michael J. Rosenberg, Esq. Goodwin Procter LLP 100 Northern Avenue Boston, MA 02210 (617) 570-1000 |
| |
Thomas A. Fitzgerald
Chief Financial Officer TransCode Therapeutics, Inc. 6 Liberty Square, #2382 Boston, MA 02109 (857) 837-3099 |
| |
Stephen Older, Esq.
Rakesh Gopalan, Esq. McGuireWoods LLP 1251 Avenue of the Americas, 20th Floor New York, NY 10020(212) 548-2122 |
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Large accelerated filer
☐
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Accelerated filer
☐
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Non-accelerated filer
☒
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Smaller reporting company
☒
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| | | | | | | | | |
Emerging growth company
☒
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Title of Each Class of
Securities to be Registered |
| | |
Proposed Maximum
Aggregate Offering Price(1) |
| | |
Amount of
Registration Fee(2) |
| |||
Common Stock, par value $0.0001 per share
|
| | |
$
|
| | | | $ | | | |
Representative Warrant(3)
|
| | |
―
|
| | | | | ― | | |
Common Stock issuable upon exercise of Representative Warrant(4)
|
| | |
$
|
| | | | $ | | | |
Total | | | |
$
|
| | | | $ | | |
| | |
Per Share
|
| |
Total
|
| ||||||
Initial public offering price | | | | $ | | | | | | $ | | | |
Underwriting discounts and commissions(1) | | | | $ | | | | | | $ | | | |
Proceeds to us, before expenses | | | | $ | | | | | | $ | | | |
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| CAPITALIZATION | | | |
|
| | |
| DILUTION | | | |
|
| | |
| BUSINESS | | | |
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| | |
| MANAGEMENT | | | |
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| UNDERWRITING | | | |
|
| | |
| | | |
|
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| EXPERTS | | | |
|
| | |
| | | |
|
| |
| | |
At or For the
Nine Months Ended September 30, |
| |
At or For the
Years Ended December 31, |
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
Unaudited
|
| | | | | | | | | | | | | |||||||||
Statement of Operations Data | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development
|
| | | $ | 132,636 | | | | | $ | 109,209 | | | | | $ | 226,309 | | | | | $ | 82,532 | | |
General and administrative
|
| | | | 214,967 | | | | | | 192,647 | | | | | | 230,556 | | | | | | 301,464 | | |
Total operating expenses
|
| | | | 347,603 | | | | | | 301,856 | | | | | | 456,865 | | | | | | 383,996 | | |
Operating loss
|
| | | | (347,603) | | | | | | (301,856) | | | | | | (456,865) | | | | | | (383,996) | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in fair value of derivative liabilities
|
| | | | (840,000) | | | | | | — | | | | | | 4,000 | | | | | | (3,000) | | |
Change in fair value of warranty liability
|
| | | | (14,164) | | | | | | — | | | | | | 2,584 | | | | | | 2,478 | | |
Interest expense
|
| | | | (340,709) | | | | | | (109,797) | | | | | | (156,965) | | | | | | (68,973) | | |
Interest income
|
| | | | 114 | | | | | | 27 | | | | | | 34 | | | | | | 51 | | |
Total other income (expense)
|
| | | | (1,194,759) | | | | | | (109,770) | | | | | | (150,347) | | | | | | (69,444) | | |
Loss before income taxes
|
| | | | (1,542,362) | | | | | | (411,626) | | | | | | (607,212) | | | | | | (453,440) | | |
Income tax expense (benefit)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net loss
|
| | | $ | (1,542,362) | | | | | $ | (411,626) | | | | | $ | (607,212) | | | | | $ | (453,440) | | |
Basic and diluted loss per common share
|
| | | $ | (0.20) | | | | | $ | (0.05) | | | | | $ | (0.08) | | | | | $ | (0.06) | | |
Weighted average number of common shares outstanding, basic and diluted(1)
|
| | | | 7,643,500 | | | | | | 7,643,500 | | | | | | 7,643,500 | | | | | | 7,188,255 | | |
Pro forma net loss per common share – basic and diluted (unaudited)(2)
|
| | | $ | (0.13) | | | | | $ | (0.03) | | | | | $ | (0.05) | | | | | $ | (0.05) | | |
Pro forma weighted average common shares outstanding (unaudited)(2)
|
| | | | 9,328,567 | | | | | | 8,291,461 | | | | | | 8,440,362 | | | | | | 7,603,262 | | |
| | |
September 30, 2020
|
| |||||||||
| | |
Unaudited
|
| |||||||||
| | |
Actual
|
| |
Pro Forma(3)
|
| |
Pro Forma
As Adjusted(3) |
| |||
Balance Sheet Data | | | | | | | | | | | | | |
Current assets
|
| | | $ | 1,099,136 | | | | | | | | |
Deferred offering costs
|
| | | $ | 73,514 | | | | | | | | |
Total assets
|
| | | $ | 1,172,650 | | | | | | | | |
Current liabilities
|
| | | $ | 155,830 | | | | | | | | |
Convertible promissory notes, net of unamortized debt issuance costs and debt discount
|
| | | $ | 2,066,629 | | | | | | | | |
Derivative liabilities
|
| | | $ | 1,383,000 | | | | | | | | |
Total liabilities
|
| | | $ | 3,792,015 | | | | | | | | |
Total stockholders’ deficit
|
| | | $ | (2,619,365) | | | | | | | | |
| | |
As of September 30, 2020
|
| |||||||||
| | |
Actual
|
| |
Pro Forma
|
| |
Pro Forma
As Adjusted |
| |||
Cash and cash equivalents
|
| | | $ | 1,095,936 | | | | | | | | |
Convertible promissory notes, net of unamortized debt issuance costs
and debt discount |
| | | $ | 2,066,629 | | | | | | | | |
Accrued interest — convertible promissory notes
|
| | | | 157,868 | | | | | | | | |
Derivative liabilities
|
| | | | 1,383,000 | | | | | | | | |
| | | | | 3,607,497 | | | | | | | | |
Gain (loss) on extinguishment of convertible debt | | | | | | | | | | | | | |
Stockholders’ equity (deficit) | | | | | | | | | | | | | |
Preferred stock — $0.0001 par value; 5,000,000 shares authorized
actual; 10,000,000 shares authorized pro forma, no shares issued or outstanding pro forma; and 10,000,000 shares authorized pro forma as adjusted, no shares issued or outstanding pro forma as adjusted |
| | | | — | | | | | | | | |
Common stock — $0.0001 par value; 20,000,000 shares authorized and 7,643,500 shares issued and outstanding actual; 290,000,000 shares authorized pro forma,shares issued and outstanding pro forma; and 290,000,000 shares authorized pro forma as adjusted ,shares issued and outstanding pro forma as adjusted
|
| | | | 764 | | | | | | | | |
Additional paid-in capital
|
| | | | 52,862 | | | | | | | | |
Subscription receivable
|
| | | | (12,640) | | | | | | | | |
Accumulated deficit
|
| | | | (2,660,351) | | | | | | | | |
Total stockholders’ equity (deficit)
|
| | | | (2,619,365) | | | | | | | | |
Total capitalization
|
| | | $ | 988,132 | | | | | | | | |
|
Assumed public offering price per share
|
| | | | | | | | | $ | | | |
|
Net tangible book value per share at September 30, 2020
|
| | | $ | (0.34) | | | | | | | | |
|
Pro forma increase attributable to the pro forma adjustments
|
| | | | | | | | | | | | |
|
Pro forma net tangible book value per share at September 30, 2020
|
| | | | | | | | | | | | |
|
Increase in book value per share attributable to new investors
|
| | | $ | | | | | | | | | |
|
Pro forma as adjusted net tangible book value per share after this offering
|
| | | | | | | | | $ | | | |
|
Dilution per share to new investors
|
| | | | | | | | | $ | | | |
| | |
Shares
|
| |
Purchased
|
| |
Total Consideration
|
| |
Average Price
Per Share |
| ||||||||||||||||||
| | |
Number
|
| |
%
|
| |
Amount
|
| |
%
|
| | | | | | | ||||||||||||
Existing Shareholders
|
| | | | 7,643,500 | | | | | | % | | | | | $ | | | | | | % | | | | | $ | | | ||
New Investors
|
| | | | | | | | | % | | | | | $ | | | | | | % | | | | | $ | | | |||
Total
|
| | | | | | | | | 100% | | | | | $ | | | | | | 100% | | | | | $ | | | |
| | |
At or For the Nine Months
Ended September 30, |
| |
At or For the Years
Ended December 31, |
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
Unaudited
|
| | | | | | | | | | | | | |||||||||
Statement of Operations Data | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development
|
| | | $ | 132,636 | | | | | $ | 109,209 | | | | | $ | 226,309 | | | | | $ | 82,532 | | |
General and administrative
|
| | | | 214,967 | | | | | | 192,647 | | | | | | 230,556 | | | | | | 301,464 | | |
Total operating expenses
|
| | | | 347,603 | | | | | | 301,856 | | | | | | 456,865 | | | | | | 383,996 | | |
Operating loss
|
| | | | (347,603) | | | | | | (301,856) | | | | | | (456,865) | | | | | | (383,996) | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in fair value of derivative liabilities
|
| | | | (840,000) | | | | | | — | | | | | | 4,000 | | | | | | (3,000) | | |
Change in fair value of warranty liability
|
| | | | (14,164) | | | | | | — | | | | | | 2,584 | | | | | | 2,478 | | |
Interest expense
|
| | | | (340,709) | | | | | | (109,797) | | | | | | (156,965) | | | | | | (68,973) | | |
Interest income
|
| | | | 114 | | | | | | 27 | | | | | | 34 | | | | | | 51 | | |
Total other income (expense)
|
| | | | (1,194,759) | | | | | | (109,770) | | | | | | (150,347) | | | | | | (69,444) | | |
Loss before income taxes
|
| | | | (1,542,362) | | | | | | (411,626)) | | | | | | (607,212) | | | | | | (453,440) | | |
Income tax expense (benefit)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net loss
|
| | | $ | (1,542,362) | | | | | $ | (411,626) | | | | | $ | (607,212) | | | | | $ | (453,440) | | |
Basic and diluted loss per common share
|
| | | $ | (0.20) | | | | | $ | (0.05) | | | | | $ | (0.08) | | | | | $ | (0.06) | | |
Weighted average number of common shares outstanding, basic and diluted(1)
|
| | | | 7,643,500 | | | | | | 7,643,500 | | | | | | 7,643,500 | | | | | | 7,188,255 | | |
Pro forma net loss per common share — basic and diluted (unaudited)(2)
|
| | | $ | (0.13) | | | | | $ | (0.03) | | | | | $ | (0.05) | | | | | $ | (0.05) | | |
Pro forma weighted average common shares outstanding (unaudited)(2)
|
| | | | 9,328,567 | | | | | | 8,291,461 | | | | | | 8,440,362 | | | | | | 7,603,262 | | |
| | |
September 30,
2020 |
| |||
| | |
Unaudited
|
| |||
Balance Sheet Data | | | | | | | |
Current Assets
|
| | | $ | 1,099,136 | | |
Deferred Offering Costs
|
| | | | 73,514 | | |
Total Assets
|
| | | | 1,172,650 | | |
Current Liabilities
|
| | | | 155,830 | | |
Convertible promissory notes, net of unamortized debt issuance costs and debt discount
|
| | | | 2,066,629 | | |
Derivative liability
|
| | | | 1,383,000 | | |
Total liabilities
|
| | | | 3,792,015 | | |
Total stockholders’ deficit
|
| | | | (2,619,365) | | |
| | |
Nine Months Ended
September 30, |
| | | | | | | | |||||||||||
| | |
2020
|
| |
2019
|
| |
Change
|
| | |||||||||||
| | |
(in thousands)
|
| | |||||||||||||||||
Operating expenses: | | | | | | | | | | | | | | | | | | | | | ||
Research and development
|
| | | $ | 132 | | | | | $ | 109 | | | | | $ | 23 | | | | ||
General and administrative
|
| | | | 215 | | | | | | 193 | | | | | | 22 | | | | ||
Total operating expenses
|
| | | | 347 | | | | | | 302 | | | | | | 45 | | | | ||
Loss from operations
|
| | | | (347) | | | | | | (302) | | | | | | (45) | | | | ||
Interest expense
|
| | | | (341) | | | | | | (110) | | | | | | (231) | | | | ||
Change in fair value of derivative liabilities
|
| | | | (840) | | | | | | — | | | | | | (840) | | | | ||
Change in fair value of warrant liability
|
| | | | (14) | | | | | | | | | | | | (14) | | | | | |
Total other income (expense), net
|
| | | | (1,195) | | | | | | (110) | | | | | | (1,085) | | | | ||
|
| | |
Nine Months Ended
September 30, |
| | | | | | | |||||||||
| | |
2020
|
| |
2019
|
| |
Change
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Net loss
|
| | | $ | (1,542) | | | | | $ | (412) | | | | | $ | (1,130) | | |
|
| | |
Year ended
December 31, |
| | | | | | | |||||||||
| | |
2019
|
| |
2018
|
| |
Change
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Operating expenses: | | | | | | | | | | | | | | | | | | | |
Research and development
|
| | | $ | 226 | | | | | $ | 83 | | | | | $ | 143 | | |
General and administrative
|
| | | | 231 | | | | | | 301 | | | | | | (70) | | |
Total operating expenses
|
| | | | 457 | | | | | | 384 | | | | | | 73 | | |
Loss from operations
|
| | | | (457) | | | | | | (384) | | | | | | 73 | | |
Interest expense
|
| | | | (157) | | | | | | (68) | | | | | | (89) | | |
Change in fair value of derivative liabilities
|
| | | | 4 | | | | | | (3) | | | | | | 7 | | |
Change in fair value of warrant liability
|
| | | | 3 | | | | | | 2 | | | | | | 1 | | |
|
| | |
Year ended
December 31, |
| | | | | | | |||||||||
| | |
2019
|
| |
2018
|
| |
Change
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Total other income (expense), net
|
| | | | (150) | | | | | | (69) | | | | | | 81 | | |
Net loss
|
| | | $ | (607) | | | | | $ | (453) | | | | | $ | 154 | | |
|
| | |
Nine months ended
September 30, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Net cash provided by (used in) operating activities
|
| | | $ | (238) | | | | | $ | (381) | | |
Net cash provided by (used in) investing activities
|
| | | | — | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 1,129 | | | | | | 300 | | |
Net increase (decrease) in cash and cash equivalents
|
| | | $ | 891 | | | | | $ | (81) | | |
|
| | |
Year ended
December 31, |
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Net cash provided by (used in) operating activities
|
| | | $ | (509) | | | | | $ | (300) | | |
Net cash provided by (used in) investing activities
|
| | | | — | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 500 | | | | | | 513 | | |
Net increase (decrease) in cash and cash equivalents
|
| | | $ | (9) | | | | | $ | 213 | | |
Grant Date
|
| |
Number of
shares subject to award |
| |
Per share
purchase price of restricted stock |
| |
Per share
estimated fair value of award on grant date |
| |||||||||
February 1, 2016
|
| | | | 5,350,000 | | | | | $ | 0.0001 | | | | | $ | 0.0001 | | |
April 1, 2016
|
| | | | 60,000 | | | | | $ | 0.0001 | | | | | $ | 0.0001 | | |
August 17, 2016
|
| | | | 230,000 | | | | | $ | 0.0001 | | | | | $ | 0.0001 | | |
June 1, 2017
|
| | | | 1,340,000 | | | | | $ | 0.0001 | | | | | $ | 0.0001 | | |
June 1, 2017(1)
|
| | | | -980,000 | | | | | $ | 0.0001 | | | | | $ | 0.0001 | | |
June 12, 2017
|
| | | | 990,000 | | | | | $ | 0.0001 | | | | | $ | 0.0001 | | |
July 15, 2017
|
| | | | 349,500 | | | | | $ | 0.0001 | | | | | $ | 0.0001 | | |
August 28, 2017
|
| | | | 304,000 | | | | | $ | 0.0001 | | | | | $ | 0.0001 | | |
December 11, 2017(1)
|
| | | | 1,689,500 | | | | | $ | 0.0001 | | | | | $ | 0.0001 | | |
January 22, 2018
|
| | | | 1,105,000 | | | | | $ | 0.0001 | | | | | $ | 0.0001 | | |
July 1, 2018(2)
|
| | | | 210,000 | | | | | $ | 0.0001 | | | | | $ | 0.0400 | | |
October 1, 2018
|
| | | | 82,250 | | | | | $ | 0.0400 | | | | | $ | 0.0400 | | |
October 7, 2018
|
| | | | 292,250 | | | | | $ | 0.0400 | | | | | $ | 0.0400 | | |
|
Name
|
| |
Age
|
| |
Position
|
| |
Committees *
|
|
| Executive Officers and Key Employees | | | | | | | | | | |
|
Robert Michael Dudley
|
| |
70
|
| | Co-Founder, Chief Executive Officer, Director | | | | |
|
Zdravka Medarova, PhD
|
| |
46
|
| |
Co-Founder and Vice President Drug Discovery
|
| | | |
|
Thomas A. Fitzgerald, MBA
|
| |
69
|
| |
Vice President, Chief Financial Officer, Director
|
| | | |
|
Judy Carmody, PhD
|
| |
54
|
| | Vice President of Operations | | | | |
|
Qiyong Peter Liu, PhD
|
| |
57
|
| | Chief Scientist | | | | |
|
Anna Moore, PhD
|
| |
59
|
| | Co-Founder, Scientific Advisor | | | | |
| Non-Employee Directors | | | | | | | | | | |
|
Philippe P. Calais, PhD
|
| |
61
|
| | Independent Director, Chairman of the Board of Directors | | | | |
|
Erik Manting, PhD
|
| |
49
|
| | Independent Director | | | | |
| | | | | | | | | | | | | | |
Stock Awards
|
| |||||||||
Name
|
| |
Grant
Date |
| |
Vesting
Commencement Date |
| |
Number of
Shares of Stock That Have Not Vested |
| |
Market
Value of Shares of Stock That Have Not Vested ($) |
| ||||||||||||
Robert Michael Dudley(1)
|
| | | | 2/01/2016 | | | | | | 2/01/2016 | | | | | | — | | | | | | — | | |
Co-Founder, President and
|
| | | | 8/17/2016 | | | | | | 8/17/2016 | | | | | | — | | | | | | — | | |
Chief Executive Officer
|
| | | | 6/12/2017 | | | | | | 6/12/2017 | | | | | | — | | | | | | — | | |
Thomas A. Fitzgerald
|
| | | | 7/01/2018 | | | | | | 7/01/2018 | | | | | | 105,000(2) | | | | | | | | |
Chief Financial Officer
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Shares Beneficially
Owned Prior to Offering |
| |
Shares Beneficially
Owned After Offering |
| ||||||
Name and Address of Beneficial Owner(*)
|
| |
Number
|
| |
Percent
|
| |
Number
|
| |
Percent
|
|
5% of Greater Stockholders | | | | | | | | | | | | | |
Anna Moore, PhD, Co-Founder, Advisor
|
| | | | | | | | | | | | |
Judy and Patrick Carmody
|
| | | | | | | | | | | | |
Named Executive Officers and Directors | | | | | | | | | | | | | |
Robert Michael Dudley, Chief Executive Officer, President, and Director
|
| | | | | | | | | | | | |
Zdravka Medarova, PhD, Vice President, Drug Discovery
|
| | | | | | | | | | | | |
Thomas A. Fitzgerald, Vice President, Chief Financial Officer
|
| | | | | | | | | | | | |
Philippe Calais, PhD, Director
|
| | | | | | | | | | | | |
Erik Manting, PhD, Director
|
| | | | | | | | | | | | |
All Directors and Named Executive Officers as a group
(5 persons) |
| | | | | | | | | | | | |
Underwriters
|
| |
Number of Shares
|
|
ThinkEquity, a division of Fordham Financial Management, Inc.
|
| | | |
Total
|
| | | |
| | |
Per Share
|
| |
With No
Over-Allotment |
| |
With Full
Over-Allotment |
| |||||||||
Public offering price
|
| | | $ | | | | | $ | | | | | $ | | | |||
Underwriting discount (7%)
|
| | | $ | | | | | $ | | | | | $ | | | |||
Proceeds, before expenses, to us
|
| | | $ | | | | | $ | | | | | $ | | | |||
Non-accountable expense allowance (1%)
|
| | | $ | | | | | $ | | | | | $ | | | |
| | |
Page
|
| |||
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | |
| | |
2019
|
| |
2018
|
| ||||||
Assets
|
| | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 204,471 | | | | | $ | 212,979 | | |
Prepaid expenses and other current assets
|
| | | | — | | | | | | 1,667 | | |
Total current assets
|
| | | | 204,471 | | | | | | 214,646 | | |
Total assets
|
| | | $ | 204,471 | | | | | $ | 214,646 | | |
Liabilities and Stockholders’ Equity (Deficit)
|
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 27,257 | | | | | $ | 81,997 | | |
Due to related parties
|
| | | | 35,685 | | | | | | 35,685 | | |
Total current liabilities
|
| | | | 62,942 | | | | | | 117,682 | | |
Convertible promissory notes, net of debt issuance costs and debt discount
|
| | | | 927,810 | | | | | | 436,215 | | |
Accrued interest – convertible promissory notes
|
| | | | 69,978 | | | | | | 21,608 | | |
Derivative liabilities
|
| | | | 239,000 | | | | | | 126,000 | | |
Warrant liability
|
| | | | 14,524 | | | | | | 17,108 | | |
Total liabilities
|
| | | | 1,314,254 | | | | | | 718,613 | | |
Stockholders’ equity (deficit): | | | | | | | | | | | | | |
Common stock – $0.0001 par value, 10,000,000 shares authorized at December 31, 2019 and 2018; 7,643,500 shares issued and outstanding at December 31, 2019 and 2018
|
| | | | 764 | | | | | | 764 | | |
Additional paid-in capital
|
| | | | 19,714 | | | | | | 17,846 | | |
Subscriptions receivable
|
| | | | (12,272) | | | | | | (11,800) | | |
Accumulated deficit
|
| | | | (1,117,989) | | | | | | (510,777) | | |
Total stockholders’ equity (deficit)
|
| | | | (1,109,783) | | | | | | (503,967) | | |
Total liabilities and stockholders’ equity (deficit)
|
| | | $ | 204,471 | | | | | $ | 214,646 | | |
| | |
2019
|
| |
2018
|
| ||||||
Operating expenses: | | | | | | | | | | | | | |
Research and development
|
| | | $ | 226,309 | | | | | $ | 82,532 | | |
General and administrative
|
| | | | 230,556 | | | | | | 301,464 | | |
Total operating expenses
|
| | | | 456,865 | | | | | | 383,996 | | |
Operating loss
|
| | | | (456,865) | | | | | | (383,996) | | |
Other income (expense): | | | | | | | | | | | | | |
Change in fair value of derivative liabilities
|
| | | | 4,000 | | | | | | (3,000) | | |
Change in fair value of warrant liability
|
| | | | 2,584 | | | | | | 2,478 | | |
Interest expense
|
| | | | (156,965) | | | | | | (68,973) | | |
Interest income
|
| | | | 34 | | | | | | 51 | | |
Total other income (expense)
|
| | | | (150,347) | | | | | | (69,444) | | |
Loss before income taxes
|
| | | | (607,212) | | | | | | (453,440) | | |
Income tax expense (benefit)
|
| | | | — | | | | | | — | | |
Net loss
|
| | | $ | (607,212) | | | | | $ | (453,440) | | |
Basic and diluted loss per common share
|
| | | $ | (0.08) | | | | | $ | (0.06) | | |
Weighted average number of common shares outstanding, basic and diluted
|
| | | | 7,643,500 | | | | | | 7,188,255 | | |
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Subscriptions
Receivable |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity (Deficit) |
| |||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance, December 31, 2017
|
| | | | 5,954,000 | | | | | $ | 595 | | | | | $ | — | | | | | $ | — | | | | | $ | (57,337) | | | | | $ | (56,742) | | |
Issuance of restricted stock
|
| | | | 1,689,500 | | | | | | 169 | | | | | | 14,943 | | | | | | (11,690) | | | | | | — | | | | | | 3,422 | | |
Interest on subscriptions receivable
|
| | | | — | | | | | | — | | | | | | 110 | | | | | | (110) | | | | | | — | | | | | | — | | |
Share-based compensation expense
|
| | | | — | | | | | | — | | | | | | 2,793 | | | | | | — | | | | | | — | | | | | | 2,793 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (453,440) | | | | | | (453,440) | | |
Balance, December 31, 2018
|
| | | | 7,643,500 | | | | | | 764 | | | | | | 17,846 | | | | | | (11,800) | | | | | | (510,777) | | | | | | (503,967) | | |
Interest on subscriptions receivable
|
| | | | — | | | | | | — | | | | | | 472 | | | | | | (472) | | | | | | — | | | | | | — | | |
Share-based compensation expense
|
| | | | — | | | | | | — | | | | | | 1,397 | | | | | | — | | | | | | — | | | | | | 1,397 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (607,212) | | | | | | (607,212) | | |
Balance, December 31, 2019
|
| | | | 7,643,500 | | | | | $ | 764 | | | | | $ | 19,714 | | | | | $ | (12,272) | | | | | $ | (1,117,989) | | | | | $ | (1,109,783) | | |
| | |
2019
|
| |
2018
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (607,212) | | | | | $ | (453,440) | | |
Adjustments to reconcile net loss to net cash used in operating activities:
|
| | | | | | | | | | | | |
Share-based compensation expense
|
| | | | 1,397 | | | | | | 2,793 | | |
Change in fair market value of derivative liabilities
|
| | | | (4,000) | | | | | | 3,000 | | |
Non-cash interest expense
|
| | | | 108,595 | | | | | | 47,365 | | |
Change in fair market value of warrant liability
|
| | | | (2,584) | | | | | | (2,478) | | |
Warrant issued for services
|
| | | | — | | | | | | 19,586 | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses and other current assets
|
| | | | 1,667 | | | | | | 3,333 | | |
Accounts payable and accrued expenses
|
| | | | (54,741) | | | | | | 58,661 | | |
Accrued interest on convertible promissory notes
|
| | | | 48,370 | | | | | | 21,608 | | |
Net cash used in operating activities
|
| | | | (508,508) | | | | | | (299,572) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from issuance of restricted stock
|
| | | | — | | | | | | 3,422 | | |
Proceeds from convertible promissory notes
|
| | | | 500,000 | | | | | | 550,000 | | |
Due to related parties
|
| | | | — | | | | | | (2,841) | | |
Payment of debt issuance costs
|
| | | | — | | | | | | (38,150) | | |
Net cash provided by financing activities
|
| | | | 500,000 | | | | | | 512,431 | | |
Net change in cash and cash equivalents
|
| | | | (8,508) | | | | | | 212,859 | | |
Cash and cash equivalents, beginning of year
|
| | | | 212,979 | | | | | | 120 | | |
Cash and cash equivalents, end of year
|
| | | $ | 204,471 | | | | | $ | 212,979 | | |
Supplemental disclosure of cash flow | | | | | | | | | | | | | |
Cash paid during the year for
|
| | | | | | | | | | | | |
Interest
|
| | | $ | — | | | | | $ | — | | |
Income taxes
|
| | | $ | — | | | | | $ | — | | |
Supplemental disclosure of non-cash investing and financing activities | | | | | | | | | | | | | |
Issuance of restricted stock for subscriptions receivable
|
| | | $ | — | | | | | $ | (11,800) | | |
Accrued interest on subscriptions receivable
|
| | | $ | (472) | | | | | $ | (110) | | |
Debt discounts associated with derivative liabilities of convertible promissory notes
|
| | | $ | 117,000 | | | | | $ | 123,000 | | |
| | |
Fair value measurements as of
December 31, 2018, using: |
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liabilities
|
| | | $ | — | | | | | $ | — | | | | | $ | 126,000 | | | | | $ | 126,000 | | |
Warrant liability
|
| | | | — | | | | | | — | | | | | | 17,108 | | | | | | 17,108 | | |
| | | | $ | — | | | | | $ | — | | | | | $ | 143,108 | | | | | $ | 143,108 | | |
|
| | |
Fair value measurements as of
December 31, 2019, using: |
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liabilities
|
| | | $ | — | | | | | $ | — | | | | | $ | 239,000 | | | | | $ | 239,000 | | |
Warrant liability
|
| | | | — | | | | | | — | | | | | | 14,524 | | | | | | 14,524 | | |
| | | | $ | — | | | | | $ | — | | | | | $ | 253,524 | | | | | $ | 253,524 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Professional fees
|
| | | $ | 1,650 | | | | | $ | 15,820 | | |
Consulting fees
|
| | | | 0 | | | | | | 15,549 | | |
State filing and credit card fees
|
| | | | 607 | | | | | | 628 | | |
Accrued license payments
|
| | | | 25,000 | | | | | | 50,000 | | |
| | | | $ | 27,257 | | | | | $ | 81,997 | | |
Note Identifier
|
| |
Issue Date
|
| |
Principal
Amount |
| |
Accrued Interest at
December 31, 2019 |
| |
Accrued Interest at
December 31, 2018 |
| |||||||||
Note One
|
| |
May 2, 2018
|
| | | $ | 500,000 | | | | | $ | 50,055 | | | | | $ | 20,055 | | |
Note Two
|
| |
June 26, 2018
|
| | | $ | 50,000 | | | | | $ | 4,553 | | | | | $ | 1,553 | | |
Note Three
|
| |
March 2, 2019
|
| | | $ | 100,000 | | | | | $ | 4,751 | | | | | | — | | |
Note Four
|
| |
March 5, 2019
|
| | | $ | 50,000 | | | | | $ | 2,458 | | | | | | — | | |
Note Five
|
| |
March 8, 2019
|
| | | $ | 50,000 | | | | | $ | 2,375 | | | | | | — | | |
Note Six
|
| |
March 15, 2019
|
| | | $ | 50,000 | | | | | $ | 2,318 | | | | | | — | | |
Note Seven
|
| |
March 20, 2019
|
| | | $ | 50,000 | | | | | $ | 2,285 | | | | | | — | | |
Note Eight
|
| |
November 7, 2019
|
| | | $ | 100,000 | | | | | $ | 723 | | | | | | — | | |
Note Nine
|
| |
November 7, 2019
|
| | | $ | 100,000 | | | | | $ | 460 | | | | | | — | | |
| | |
As of December 31,
2019 |
| |
As of December 31,
2018 |
| ||||||
Principal amount of convertible promissory notes
|
| | | $ | 1,050,000 | | | | | $ | 550,000 | | |
Less unamortized debt issuance costs
|
| | | | (18,540) | | | | | | (31,257) | | |
Less unamortized debt discounts
|
| | | | (103,650) | | | | | | (82,528) | | |
Convertible promissory notes, net
|
| | | $ | 927,810 | | | | | $ | 436,215 | | |
|
Unvested restricted common stock at December 31, 2017
|
| | | | 1,553,167 | | | | | |
|
Shares issued
|
| | | | 1,689,500 | | | | ||
|
Shares vested
|
| | | | (941,458) | | | | ||
|
Unvested restricted common stock at December 31, 2018
|
| | | | 2,301,209 | | | | ||
|
Shares issued
|
| | | | — | | | | ||
|
Shares vested
|
| | | | (1,333,958) | | | | ||
|
Unvested restricted common stock at December 31, 2019
|
| | | | 967,251 | | | | ||
|
|
Fair value at May 2, 2018 (date of issuance)
|
| | | $ | 19,586 | | |
|
Change in fair value
|
| | | | (2,478) | | |
|
Fair value at December 31, 2018
|
| | | | 17,108 | | |
|
Change in fair value
|
| | | | (2,584) | | |
|
Fair value at December 31, 2019
|
| | | $ | 14,524 | | |
| | |
As of December 31,
|
| |
As of May 2,
|
| ||||||||||||
| | |
2019
|
| |
2018
|
| |
2018
|
| |||||||||
Fair value per share of Company’s common stock
|
| | | $ | 0.06 | | | | | $ | 0.04 | | | | | $ | 0.04 | | |
Dividend yield
|
| | | | 0.0% | | | | | | 0.0% | | | | | | 0.0% | | |
Expected volatility
|
| | | | 79.0% | | | | | | 83.0% | | | | | | 91.0% | | |
Risk Free interest rate
|
| | | | 1.7% | | | | | | 2.5% | | | | | | 2.9% | | |
Expected life (years)
|
| | | | 4.73 | | | | | | 5.24 | | | | | | 5.85 | | |
Fair value of warrants
|
| | | $ | 14,524 | | | | | $ | 17,108 | | | | | $ | 19,586 | | |
| | |
For the Year Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Numerator | | | | | | | | | | | | | |
Net loss
|
| | | $ | (607,212) | | | | | $ | (453,440) | | |
Denominator | | | | | | | | | | | | | |
Weighted-average common shares outstanding, basic and diluted
|
| | | | 7,643,500 | | | | | | 7,188,255 | | |
Net loss per share attributable to common stockholders, basic and diluted
|
| | | $ | (0.08) | | | | | $ | (0.06) | | |
| | |
For the Year Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Shares issuable on conversion of Promissory Notes
|
| | | | 777,763 | | | | | | 396,950 | | |
Shares issuable on exercise of Warrants
|
| | | | 19,099 | | | | | | 18,057 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Federal income tax benefit at statutory rate
|
| | | | 21.0% | | | | | | 21.0% | | |
State and local tax, net of federal benefit
|
| | | | 4.9% | | | | | | 5.2% | | |
Permanent differences
|
| | | | (4.8)% | | | | | | (3.8)% | | |
Change in valuation allowance
|
| | | | (21.1)% | | | | | | (22.4)% | | |
Effective Income Tax rate
|
| | | | 0.0% | | | | | | 0.0% | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Net operating loss carryforwards
|
| | | $ | 243,000 | | | | | $ | 120,000 | | |
Capitalized research and development costs, start-up costs and
amortization |
| | | | 17,000 | | | | | | 5,000 | | |
Total deferred tax assets
|
| | | | 260,000 | | | | | | 125,000 | | |
Less valuation allowance
|
| | | | (260,000) | | | | | | (125,000) | | |
Net deferred taxes
|
| | | $ | — | | | | | $ | — | | |
| | |
September 30, 2020
|
| |
December 31, 2019
|
| ||||||
| | |
(unaudited)
|
| | | | | | | |||
Assets
|
| | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 1,095,936 | | | | | $ | 204,471 | | |
Prepaid expenses and other current assets
|
| | | | 3,200 | | | | | | — | | |
Total current assets
|
| | | | 1,099,136 | | | | | | 204,471 | | |
Deferred offering costs
|
| | | | 73,514 | | | | | | — | | |
Total assets
|
| | | $ | 1,172,650 | | | | | $ | 204,471 | | |
Liabilities and Stockholders’ Equity (Deficit) | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 120,145 | | | | | $ | 27,257 | | |
Due to related parties
|
| | | | 35,685 | | | | | | 35,685 | | |
Total current liabilities
|
| | | | 155,830 | | | | | | 62,942 | | |
Convertible promissory notes, net of debt issuance costs and debt discounts
|
| | | | 2,066,629 | | | | | | 927,810 | | |
Accrued interest – convertible promissory notes
|
| | | | 157,868 | | | | | | 69,978 | | |
Derivative liabilities
|
| | | | 1,383,000 | | | | | | 239,000 | | |
Warrant liability
|
| | | | 28,688 | | | | | | 14,524 | | |
Total liabilities
|
| | | | 3,792,015 | | | | | | 1,314,254 | | |
Stockholders’ equity (deficit): | | | | | | | | | | | | | |
Preferred stock – $0.0001 par value; 5,000,000 and -0- shares authorized at September 30, 2020 and December 31, 2019, respectively; -0- shares issued or outstanding at September 30, 2020
|
| | | | — | | | | | | — | | |
Common stock – $0.0001 par value; 20,000,000 and 10,000,000 shares authorized at September 30, 2020 and December 31, 2019, respectively; 7,643,500 shares issued and outstanding at September 30, 2020 and December 31, 2019
|
| | | | 764 | | | | | | 764 | | |
Additional paid-in capital
|
| | | | 52,862 | | | | | | 19,714 | | |
Subscriptions receivable
|
| | | | (12,640) | | | | | | (12,272) | | |
Accumulated deficit
|
| | | | (2,660,351) | | | | | | (1,117,989) | | |
Total stockholders’ equity (deficit)
|
| | | | (2,619,365) | | | | | | (1,109,783) | | |
Total liabilities and stockholders’ equity (deficit)
|
| | | $ | 1,172,650 | | | | | $ | 204,471 | | |
| | |
For the Nine Months Ended September 30,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Operating expenses: | | | | | | | | | | | | | |
Research and development
|
| | | $ | 132,636 | | | | | $ | 109,209 | | |
General and administrative
|
| | | | 214,967 | | | | | | 192,647 | | |
Total operating expenses
|
| | | | 347,603 | | | | | | 301,856 | | |
Operating loss
|
| | | | (347,603) | | | | | | (301,856) | | |
Other income (expense): | | | | | | | | | | | | | |
Change in fair value of derivative liabilities
|
| | | | (840,000) | | | | | | — | | |
Change in fair value of warrant liability
|
| | | | (14,164) | | | | | | — | | |
Interest expense
|
| | | | (340,709) | | | | | | (109,797) | | |
Interest income
|
| | | | 114 | | | | | | 27 | | |
Total other income (expense)
|
| | | | (1,194,759) | | | | | | (109,770) | | |
Loss before income taxes
|
| | | | (1,542,362) | | | | | | (411,626) | | |
Income tax expense (benefit)
|
| | | | — | | | | | | — | | |
Net loss
|
| | | $ | (1,542,362) | | | | | $ | (411,626) | | |
Basic and diluted loss per common share
|
| | | $ | (0.20) | | | | | $ | (0.05) | | |
Weighted average number of common shares outstanding, basic and diluted
|
| | | | 7,643,500 | | | | | | 7,643,500 | | |
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Subscriptions
Receivable |
| |
Accumulated
Deficit |
| |
Total Stockholders’
Equity (Deficit) |
| |||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance, December 31, 2018
|
| | | | 7,643,500 | | | | | $ | 764 | | | | | $ | 17,846 | | | | | $ | (11,800) | | | | | $ | (510,778) | | | | | $ | (503,968) | | |
Interest on subscriptions receivable
|
| | | | — | | | | | | — | | | | | | 354 | | | | | | (354) | | | | | | — | | | | | | — | | |
Share-based compensation expense
|
| | | | — | | | | | | — | | | | | | 698 | | | | | | — | | | | | | — | | | | | | 698 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (411,626) | | | | | | (411,626) | | |
Balance, September 30, 2019
|
| | | | 7,643,500 | | | | | | 764 | | | | | | 18,898 | | | | | | (12,154) | | | | | | (922,404) | | | | | | (914,896) | | |
Nine Months Ended September 30, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance, December 31, 2019
|
| | | | 7,643,500 | | | | | | 764 | | | | | | 19,714 | | | | | | (12,272) | | | | | | (1,117,989) | | | | | | (1,109,783) | | |
Interest on subscriptions receivable
|
| | | | — | | | | | | — | | | | | | 368 | | | | | | (368) | | | | | | — | | | | | | — | | |
Share-based compensation expense
|
| | | | — | | | | | | — | | | | | | 32,780 | | | | | | — | | | | | | — | | | | | | 32,780 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,542,362) | | | | | | (1,542,362) | | |
Balance, September 30, 2020
|
| | | | 7,643,500 | | | | | $ | 764 | | | | | $ | 52,862 | | | | | $ | (12,640) | | | | | $ | (2,660,351) | | | | | $ | (2,619,365) | | |
| | |
For the Nine Months Ended September 30,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (1,542,362) | | | | | $ | (411,626) | | |
Adjustments to reconcile net loss to net cash used in operating activities:
|
| | | | | | | | | | | | |
Share-based compensation expense
|
| | | | 32,780 | | | | | | 698 | | |
Change in fair market value of derivative liabilities
|
| | | | 840,000 | | | | | | — | | |
Change in fair market value of warrant liability
|
| | | | 14,164 | | | | | | — | | |
Non-cash interest expense
|
| | | | 252,819 | | | | | | 75,465 | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses and other current assets
|
| | | | (3,200) | | | | | | 1,667 | | |
Accounts payable and accrued expenses
|
| | | | 80,429 | | | | | | (81,308) | | |
Accrued interest on convertible promissory notes
|
| | | | 87,890 | | | | | | 34,332 | | |
Net cash used in operating activities
|
| | | | (237,480) | | | | | | (380,772) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from convertible promissory notes
|
| | | | 1,190,000 | | | | | | 300,000 | | |
Payments of deferred offering costs
|
| | | | (61,055) | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 1,128,945 | | | | | | 300,000 | | |
Net change in cash and cash equivalents
|
| | | | 891,465 | | | | | | (80,772) | | |
Cash and cash equivalents, beginning of period
|
| | | | 204,471 | | | | | | 212,979 | | |
Cash and cash equivalents, end of period
|
| | | $ | 1,095,936 | | | | | $ | 132,207 | | |
Supplemental disclosure of cash flow
|
| | | | | | | | | | | | |
Cash paid during the nine months for Interest
|
| | | $ | — | | | | | $ | — | | |
Income taxes
|
| | | $ | — | | | | | $ | — | | |
Supplemental disclosure of non-cash investing and financing activities
|
| | | | | | | | | | | | |
Accrued interest on subscriptions receivable
|
| | | $ | 368 | | | | | $ | 354 | | |
Debt discounts associated with derivative liabilities of convertible promissory notes
|
| | | $ | 304,000 | | | | | $ | 67,000 | | |
Deferred offering costs included in accounts payable and accrued expenses
|
| | | $ | 12,459 | | | | | $ | — | | |
| | |
Fair value measurements as of
September 30, 2020, using: |
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liabilities
|
| | | $ | — | | | | | $ | — | | | | | $ | 1,383,000 | | | | | $ | 1,383,000 | | |
Warrant liability
|
| | | | — | | | | | | — | | | | | | 28,688 | | | | | | 28,688 | | |
| | | | $ | — | | | | | $ | — | | | | | $ | 1,411,688 | | | | | $ | 1,411,688 | | |
|
| | |
Fair value measurements as of
December 31, 2019, using: |
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liabilities
|
| | | $ | — | | | | | $ | — | | | | | $ | 239,000 | | | | | $ | 239,000 | | |
Warrant liability
|
| | | | — | | | | | | — | | | | | | 14,524 | | | | | | 14,524 | | |
| | | | $ | — | | | | | $ | — | | | | | $ | 253,524 | | | | | $ | 253,524 | | |
| | |
September 30, 2020
|
| |
December 31, 2019
|
| ||||||
Professional fees
|
| | | $ | 99,982 | | | | | $ | 1,650 | | |
Consulting fees
|
| | | | 17,550 | | | | | | — | | |
State filing and credit card fees
|
| | | | 613 | | | | | | 607 | | |
Research and development services
|
| | | | 2,000 | | | | | | — | | |
Accrued license payments
|
| | | | — | | | | | | 25,000 | | |
| | | | $ | 120,145 | | | | | $ | 27,257 | | |
Note Identifier
|
| |
Issue Date
|
| |
Principal
Amount |
| |
Accrued Interest at
September 30, 2020 |
| |
Accrued Interest at
December 31, 2019 |
| |||||||||
Note One
|
| |
May 2, 2018
|
| | | $ | 500,000 | | | | | $ | 72,575 | | | | | $ | 50,055 | | |
Note Two
|
| |
June 26, 2018
|
| | | $ | 50,000 | | | | | $ | 6,805 | | | | | $ | 4,553 | | |
Note Three
|
| |
March 2, 2019
|
| | | $ | 100,000 | | | | | $ | 4,710 | | | | | $ | 4,751 | | |
Note Four
|
| |
March 5, 2019
|
| | | $ | 50,000 | | | | | $ | 4,627 | | | | | $ | 2,458 | | |
Note Five
|
| |
March 8, 2019
|
| | | $ | 50,000 | | | | | $ | 9,255 | | | | | $ | 2,375 | | |
Note Six
|
| |
March 15, 2019
|
| | | $ | 50,000 | | | | | $ | 4,570 | | | | | $ | 2,318 | | |
Note Seven
|
| |
March 20, 2019
|
| | | $ | 50,000 | | | | | $ | 4,537 | | | | | $ | 2,285 | | |
Note Eight
|
| |
November 7, 2019
|
| | | $ | 100,000 | | | | | $ | 5,215 | | | | | $ | 723 | | |
Note Nine
|
| |
November 7, 2019
|
| | | $ | 100,000 | | | | | $ | 4,952 | | | | | $ | 460 | | |
Note Ten
|
| |
February 17, 2020
|
| | | $ | 1,000,000 | | | | | $ | 35,902 | | | | | | — | | |
Note Eleven
|
| |
April 3, 2020
|
| | | $ | 40,000 | | | | | $ | 1,187 | | | | | | — | | |
Note Twelve
|
| |
May 8, 2020
|
| | | $ | 50,000 | | | | | $ | 1,197 | | | | | | — | | |
Note Thirteen
|
| |
May 8, 2020
|
| | | $ | 50,000 | | | | | $ | 1,197 | | | | | | — | | |
Note Fourteen
|
| |
May 15, 2020
|
| | | $ | 50,000 | | | | | $ | 1,139 | | | | | | — | | |
| | |
As of September 31,
2020 |
| |
As of December 31,
2019 |
| ||||||
Principal amount of convertible promissory notes
|
| | | $ | 2,240,000 | | | | | $ | 1,050,000 | | |
Less unamortized debt issuance costs
|
| | | | (9,003) | | | | | | (18,540) | | |
Less unamortized debt discounts
|
| | | | (164,368) | | | | | | (103,650) | | |
Convertible promissory notes, net
|
| | | $ | 2,066,629 | | | | | $ | 927,810 | | |
|
Unvested restricted common stock at December 31, 2018
|
| | | | 2,301,209 | | |
|
Shares issued
|
| | | | — | | |
|
Shares vested
|
| | | | (1,333,958) | | |
|
Unvested restricted common stock at December 31, 2019
|
| | | | 967,251 | | |
|
Shares issued
|
| | | | — | | |
|
Shares vested
|
| | | | (595,376) | | |
|
Unvested restricted common stock at September 30, 2020
|
| | | | 371,875 | | |
Warrant Liability
|
| | |||||
Fair value at December 31, 2018
|
| | | $ | 17,108 | | |
Change in fair value
|
| | | | (2,584) | | |
Fair value at December 31, 2019
|
| | | | 14,524 | | |
Change in fair value
|
| | | | 14,164 | | |
Fair value at September 30, 2020
|
| | | $ | 28,688 | | |
| | |
As of
September 30, 2020 |
| |
As of
December 31, 2019 |
| ||||||
Fair value per share of Company’s common stock
|
| | | $ | 2.75 | | | | | $ | 0.06 | | |
Dividend yield
|
| | | | 0.0% | | | | | | 0.0% | | |
Expected volatility
|
| | | | 86.0% | | | | | | 79.0% | | |
Risk Free interest rate
|
| | | | 0.2% | | | | | | 1.7% | | |
Expected life (years)
|
| | | | 3.98 | | | | | | 4.73 | | |
Fair value of warrants
|
| | | $ | 28,688 | | | | | $ | 14,524 | | |
| | |
Number
of shares |
| |
Weighted
average exercise price per share |
| |
Weighted
average remaining contractual term (years) |
| |||||||||
Outstanding at December 31, 2019
|
| | | | — | | | | | | — | | | | | | — | | |
Granted
|
| | | | 2,775,500 | | | | | $ | 0.053 | | | | | | 7.0 | | |
Exercised
|
| | | | — | | | | | | — | | | | | | — | | |
Forfeited
|
| | | | — | | | | | | — | | | | | | — | | |
Outstanding at September 30, 2020
|
| | | | 2,775,500 | | | | | $ | 0.053 | | | | | | 7.0 | | |
| | |
Nine months ended
September 30, 2020 |
|
Risk-free interest rate
|
| |
0.25% – 0.46%
|
|
Expected term (in years)
|
| |
3.5 – 6.25
|
|
Expected volatility
|
| |
95.83% – 97.20%
|
|
Expected dividend yield
|
| |
0%
|
|
| | |
For the Nine Months Ended
September 30, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Numerator | | | | | | | | | | | | | |
Net loss
|
| | | $ | (1,542,362) | | | | | $ | (411,626) | | |
Denominator | | | | | | | | | | | | | |
Weighted-average common shares outstanding, basic and diluted
|
| | | | 7,643,500 | | | | | | 7,643,500 | | |
Net loss per share attributable to common stockholders, basic and diluted
|
| | | $ | (0.20) | | | | | $ | (0.05) | | |
| | |
For the Nine Months Ended
September 30, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Convertible promissory notes and accrued interest
|
| | | | 1,665,186 | | | | | | 629,125 | | |
Warrants
|
| | | | 19,881 | | | | | | 18,837 | | |
Vested stock options
|
| | | | 583,333 | | | | | | — | | |
| | |
Amount Paid
or to Be Paid |
| |||
SEC registration fee
|
| | | $ | * | | |
FINRA filing fee
|
| | | | * | | |
listing fee
|
| | | | * | | |
Printing and mailing
|
| | | | * | | |
Legal fees and expenses
|
| | | | * | | |
Accounting fees and expenses
|
| | | | * | | |
Transfer agent and registrar fees and expenses
|
| | | | * | | |
Miscellaneous
|
| | | | * | | |
Total
|
| | | | * | | |
Exhibit
number |
| |
Description
|
|
1.1* | | | Form of Underwriting Agreement. | |
3.1* | | | Amended and Restated Certificate of Incorporation of the Registrant as currently in effect. | |
3.2* | | | Certificate of Amendment of Amended and Restated Certificate of Incorporation of the Registrant. | |
3.3* | | | Form of Amended and Restated Certificate of Incorporation of Registrant, to be in effect prior to the completion of this offering. | |
3.4* | | | Bylaws of the Registrant, as currently in effect. | |
3.5* | | | Form of Amended and Restated Bylaws of the Registrant, to be in effect prior to the completion of this offering. | |
4.1* | | | Specimen Common Stock Certificate. | |
4.2* | | | Form of Representative Warrant | |
5.1* | | | Opinion of Goodwin Procter LLP. | |
10.1*# | | | 2020 Stock Option and Grant Plan and form of award agreements thereunder. | |
10.2*# | | | 2021 Stock Option and Incentive Plan, and form of award agreements thereunder. | |
10.3*# | | | Senior Executive Cash Incentive Bonus Plan. | |
10.4*# | | | Form of Indemnification Agreement between the Registrant and each of its executive officers. | |
10.5*# | | | Form of Indemnification Agreement between the Registrant and each of its directors. | |
10.6*# | | | Non-Employee Director Compensation Policy. | |
10.7*† | | | Exclusive Option Agreement by and between TransCode Therapeutics, Inc. and The General Hospital Corporation, d/b/a Massachusetts General Hospital, dated as of August 30, 2017. | |
10.8*† | | | Amendment No. 1 to Exclusive Option Agreement by and between TransCode Therapeutics, Inc. and The General Hospital Corporation, d/b/a Massachusetts General Hospital, dated as of February 28, 2018. | |
10.9*† | | | Exclusive Patent License Agreement by and between TransCode Therapeutics, Inc. and The General Hospital Corporation, d/b/a Massachusetts General Hospital, dated as of October 26, 2018. | |
21.1* | | | List of Subsidiaries of the Registrant. | |
23.1* | | | Consent of Withum Smith+Brown, PC, independent registered public accounting firm. | |
23.2* | | | Consent of Goodwin Procter LLP (included in Exhibit 5.1). | |
24.1* | | | Power of Attorney (included on signature page to this registration statement). | |
|
NAME
|
| |
TITLE
|
| |
DATE
|
|
|
Robert Michael Dudley
|
| |
Director and Chief Executive Officer (Principal Executive Officer)
|
| |
, 2020
|
|
|
Thomas A. Fitzgerald, MBA
|
| |
Director and Chief Financial Officer (Principal Financial and Accounting Officer)
|
| |
, 2020
|
|
|
Philippe P. Calais, PhD
|
| |
Director
|
| |
, 2020
|
|
|
Erik Manting, PhD
|
| |
Director
|
| |
, 2020
|
|