|
Delaware
(State or other jurisdiction of incorporation or organization) |
| |
2834
(Primary Standard Industrial Classification Code Number) |
| |
82-3733567
(I.R.S. Employer Identification Number) |
|
|
Ivan K. Blumenthal, Esq.
Daniel A. Bagliebter, Esq. Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. 666 Third Avenue New York, NY 10017 (212) 935-3000 |
| |
David E. Danovitch, Esq.
Sullivan & Worcester LLP 1633 Broadway New York, NY 10019 (212) 660-3060 |
|
|
Large accelerated filer ☐
Non-accelerated filer ☒ |
| |
Accelerated filer ☐
Smaller reporting company ☒ Emerging growth company ☒ |
|
| | ||||||||||||||
Title of Each Class of Securities To Be Registered
|
| | |
Proposed
Maximum Aggregate Offering Price(1)(2) |
| | |
Amount of
Registration Fee(3) |
| ||||||
Common Stock, $0.001 par value per share
|
| | | | $ | 20,125,000 | | | | | | $ | 2,195.64 | | |
| | |
Page
|
| |||
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| | | | 106 | | | |
| | | | 106 | | | |
| | | | F-1 | | |
Statement of Operations Data
|
| |
Years Ended
December 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Total Revenue
|
| | | | | | | | | | | | |
Operating Expenses | | | | | | | | | | | | | |
Research & Development
|
| | | $ | 2,202,979 | | | | | $ | 3,510,088 | | |
General & Administrative
|
| | | | 2,397,059 | | | | | | 2,421,165 | | |
Loss from Operations
|
| | | | 4,600,038 | | | | | | 5,931,253 | | |
Net Loss
|
| | | $ | 4,600,038 | | | | | $ | 5,931,253 | | |
Net Loss per Share of Common Stock, Basic and Diluted(1)
|
| | | $ | (0.75) | | | | | $ | (1.25) | | |
Weighted average number of shares outstanding, Basic and Diluted(1)
|
| | | | 6,140,875 | | | | | | 4,751,536 | | |
Pro forma weighted average common shares outstanding, Basic And Diluted(2)
|
| | | | 8,841,338 | | | | | | 7,451,999 | | |
| | |
Years Ended
December 31, |
| |||||||||
Balance Sheet Data
|
| |
2020
|
| |
Pro Forma,
As Adjusted(1) |
| ||||||
Cash
|
| | | $ | 3,175,411 | | | | | $ | 16,315,411 | | |
Working Capital(2)
|
| | | | 2,751,464 | | | | | | 15,891,464 | | |
Total Assets
|
| | | | 3,224,020 | | | | | | 16,364,020 | | |
Total Liabilities
|
| | | | 522,434 | | | | | | 522,434 | | |
Accumulated Deficit
|
| | | | (13,800,612) | | | | | | (14,556,171) | | |
Total Members’ Equity
|
| | | $ | 2,701,586 | | | | | $ | 15,841,586 | | |
| | |
Actual
|
| |
Pro Forma
Accelerated Vesting(3) |
| |
Pro Forma
Corporate Conversion(1)(2) |
| |
Pro Forma
As Adjusted |
| ||||||||||||
Cash and cash equivalents
|
| | | $ | 3,175 | | | | | $ | 3,175 | | | | | $ | 3,175 | | | | | $ | 16,315 | | |
Equity: | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A membership interests: 13,493,807 interests issued
and outstanding, actual; 13,894,733 interests issued and outstanding pro forma (accelerated vesting); no interests issued or outstanding pro forma (corporate conversion); and no interests issued or outstanding pro forma (as adjusted)(1)(3) |
| | | | 16,402 | | | | | | 17,158 | | | | | | — | | | | | | — | | |
Class B membership interests: 100,000 interests issued and outstanding, actual; 100,000 interests issued and outstanding pro forma (accelerated vesting); no interests issued or outstanding pro forma (corporate conversion); and no interests issued or outstanding pro forma (as adjusted)(1)
|
| | | | 100 | | | | | | 100 | | | | | | — | | | | | | — | | |
Common stock, $0.001 par value per share: no shares authorized, issued or outstanding, actual; no shares authorized, issued or outstanding pro forma (accelerated vesting); 6,997,366 shares issued and outstanding, pro forma (corporate conversion); and 9,497,736 shares issued and outstanding pro forma
(as adjusted) |
| | | | — | | | | | | — | | | | | | 7 | | | | | | 10 | | |
Preferred stock, $0.001 par value per share: no shares
authorized, issued or outstanding, actual; no shares authorized, issued or outstanding pro forma (accelerated vesting); no shares issued or outstanding, pro forma (corporate conversion); and no shares issued or outstanding pro forma (as adjusted) |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Actual
|
| |
Pro Forma
Accelerated Vesting(3) |
| |
Pro Forma
Corporate Conversion(1)(2) |
| |
Pro Forma
As Adjusted |
| ||||||||||||
Additional Paid in Capital
|
| | | | | | | | | | | | | | | | 17,251 | | | | | | 15,832 | | |
Accumulated deficit
|
| | | | (13,801) | | | | | | (14,557) | | | | | | (14,557) | | | | | | — | | |
Total equity (deficit)
|
| | | $ | 2,701 | | | | | $ | 2,701 | | | | | $ | 2,701 | | | | | $ | 15,842 | | |
Total capitalization
|
| | | $ | 2,701 | | | | | $ | 2,701 | | | | | $ | 2,701 | | | | | $ | 15,842 | | |
|
|
Class A membership interests
|
| | | | 6,947,366 | | |
|
Class B membership interests
|
| | | | 50,000 | | |
|
Assumed initial public offering price per share
|
| | | | | | | | | $ | 6.00 | | |
|
Historical net tangible book value per Class A membership interest and Class B membership interest as of December 31, 2020
|
| | | $ | 0.20 | | | | | | | | |
|
Pro forma net tangible book value per share as of December 31, 2020 before this offering
and after giving effect to the Corporate Conversion and the accelerated vesting of currently unvested membership interests(1) |
| | | | 0.39 | | | | | | | | |
|
Increase in the pro forma net tangible book value per share after giving effect to this offering
|
| | | | 0.19 | | | | | | | | |
|
Pro forma as adjusted net tangible book value per share after this offering
|
| | | | | | | | | | 1.67 | | |
|
Dilution per share to new investors participating in this offering
|
| | | | | | | | | $ | 4.33 | | |
| | |
Shares Purchased
|
| |
Total Consideration
|
| |
Average Price
Per Share |
| | |||||||||||||||||||||||
| | |
Number
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| | | | ||||||||||||||||||
Existing stockholders
|
| | | | 6,997,367 | | | | | | 74% | | | | | $ | 17,257,757 | | | | | | 53% | | | | | $ | 2.47 | | | | ||
New investors
|
| | | | 2,500,000 | | | | | | 26% | | | | | $ | 15,000,000 | | | | | | 47% | | | | | $ | 6.00 | | | | ||
Total
|
| | | | 9,497,367 | | | | | | 100.0% | | | | | $ | 32,257,757, | | | | | | 100.0% | | | | | $ | 3.40 | | | |
| | |
Years Ended
December 31, |
| |
Percentage
Increase |
| ||||||||||||
| | |
2020
|
| |
2019
|
| ||||||||||||
| | |
(in thousands)
|
| | | | | | | |||||||||
Research and Development Expenses
|
| | | $ | 2,203 | | | | | $ | 3,510 | | | | | | (37)% | | |
General and Administrative Expenses
|
| | | | 2,397 | | | | | | 2,421 | | | | | | —% | | |
Total Expenses
|
| | | | 4,600 | | | | | | 5,931 | | | | | | (22)% | | |
Net Loss
|
| | | $ | 4,600 | | | | | $ | 5,931 | | | | | | (22)% | | |
Drug
|
| |
MIC range
|
| |
MIC50
|
| |
MIC90
|
| ||||||
Ibezapolstat
|
| |
1 – 4
|
| | | | 2 | | | | | | 4 | | |
Vancomycin
|
| |
1 – 8
|
| | | | 1 | | | | | | 4 | | |
Metronidazole
|
| |
0.25 – 4
|
| | | | 1 | | | | | | 4 | | |
Organism
|
| |
Micromyx Number
|
| |
362E
|
| |
Metronidazole
|
|
Bifidobacterium brevi
|
| |
3967 (ATCC(1) 15698)
|
| |
>32
|
| |
2
|
|
Bifidobacterium longum
|
| |
3968 (ATCC 15707)
|
| |
>32
|
| |
4
|
|
Lactobacillus casei
|
| |
1722 (ATCC 393)
|
| |
16
|
| |
>32
|
|
Lactobacillus acidophilus
|
| |
0681
|
| |
4
|
| |
>32
|
|
Eubacterium lentum
|
| |
1274 (ATCC 43055)
|
| |
>32
|
| |
0.25
|
|
Clostridium perfringens
|
| |
3414
|
| |
16
|
| |
1
|
|
Clostridium difficile
|
| |
3579
|
| |
4
|
| |
0.25
|
|
| | |
3580
|
| |
2
|
| |
0.25
|
|
| | |
3581
|
| |
2
|
| |
0.5
|
|
| | |
3582
|
| |
4
|
| |
0.5
|
|
| | |
3584
|
| |
1
|
| |
0.25
|
|
| | |
3585
|
| |
2
|
| |
0.25
|
|
| | |
3587
|
| |
2
|
| |
0.5
|
|
Organism
|
| |
Micromyx Number
|
| |
362E
|
| |
Metronidazole
|
|
| | |
3588
|
| |
0.5
|
| |
0.25
|
|
| | |
3589
|
| |
2
|
| |
1
|
|
Quality Control Strains | | | | | | | | | | |
Clostridium difficile
|
| |
4381 (ATCC 700057)
|
| |
1
|
| |
0.25
(0.12 – 0.5)(2) |
|
Bacteroides fragilis
|
| |
0123 (ATCC 25285)
|
| |
>32
|
| |
0.25
(0.25 – 1) |
|
| | |
362E
|
| |
MTZ
|
| |
VAN
|
| |
FDX
|
|
MIC range:
|
| |
0.5 – 8
|
| |
0.25 – >32
|
| |
0.5 – 16
|
| |
0.03 – > 8
|
|
MIC50:
|
| |
2
|
| |
0.5
|
| |
1
|
| |
0.5
|
|
MIC90:
|
| |
4
|
| |
4
|
| |
4
|
| |
2
|
|
| | |
ACX-362E
(ibezapolstat) |
| |
MTZ
|
| |
VAN
|
| |
FDX
|
|
MIC range:
|
| |
1 – 8
|
| |
0.25 – 16
|
| |
0.5 – 4
|
| |
0.015 – 1
|
|
MIC50:
|
| |
4
|
| |
0.5
|
| |
1
|
| |
0.12
|
|
MIC90:
|
| |
4
|
| |
1
|
| |
2
|
| |
0.25
|
|
| | | | | | | | | | | |
ACX-362E
(ibezapolstat) |
| |
Metronidazole
|
| |
Vancomycin
|
| ||||||||||||
Organism
|
| |
Isolate No.
|
| |
Type
|
| |
Replicate
|
| |
MIC
|
| |
MBC
|
| |
MIC
|
| |
MBC
|
| |
MIC
|
| |
MBC
|
| |||
C. difficile
|
| |
MMX 5680
|
| |
Ribotype 027
|
| |
A
|
| |
1
|
| |
1
|
| |
2
|
| |
2
|
| |
0.5
|
| | | | 0.5 | | |
| | | | | | | | |
B
|
| |
1
|
| |
1
|
| |
4
|
| |
4
|
| |
0.5
|
| | | | 0.5 | | |
| | | | | | | | |
C
|
| |
1
|
| |
2
|
| |
2
|
| |
2
|
| |
0.25
|
| | | | 0.25 | | |
| | |
BAA- 1382
|
| |
Ribotype 012
|
| |
A
|
| |
1
|
| |
4
|
| |
0.5
|
| |
0.5
|
| |
1
|
| | | | 2 | | |
| | | | | | | | |
B
|
| |
1
|
| |
2
|
| |
0.5
|
| |
1
|
| |
1
|
| | | | 1 | | |
| | | | | | | | |
C
|
| |
1
|
| |
2
|
| |
1
|
| |
1
|
| |
1
|
| | | | 2 | | |
| | |
BAA- 1875
|
| |
Ribotype 078
|
| |
A
|
| |
1
|
| |
>8*
|
| |
0.5
|
| |
1
|
| |
0.25
|
| | | | 0.5 | | |
| | | | | | | | |
B
|
| |
1
|
| |
2
|
| |
1
|
| |
1
|
| |
0.5
|
| | | | 0.5 | | |
| | | | | | | | |
C
|
| |
1
|
| |
>8*
|
| |
0.5
|
| |
0.5
|
| |
0.5
|
| | | | 0.5 | | |
| | | | | ||||
| Drug | | |
Survivors acute
infection/total animals |
| |
Survivors with no recurrent
infection /total animals |
|
| GLS362 | | |
7/7
|
| |
6/7
|
|
| (ibezapolstat) | | | | | | ||
|
vancomycin
|
| |
7/7
|
| |
3/7
|
|
MIC Range
|
| |
MRSA
|
| |
VRE
|
| |
MRSA and VRE
|
|
< 1 µg/mL
|
| |
18 compounds
|
| |
51 compounds
|
| |
17 compounds
|
|
>1 to <2 µg/mL
|
| |
65 compounds
|
| |
100 compounds
|
| |
61 compounds
|
|
>2 to < 4 µg/mL
|
| |
74 compounds
|
| |
80 compounds
|
| |
21 compounds
|
|
Name
|
| | | | Age | | | | | | Position | | |
Executive Officers | | | | | | | | | | | | | |
David P. Luci | | |
54
|
| | President and Chief Executive Officer, Director | | ||||||
Robert J. DeLuccia | | |
75
|
| | Executive Chairman, Director | | ||||||
Robert G. Shawah | | |
54
|
| | Vice President, Finance & Chief Accounting Officer | | ||||||
Non-Employee Directors | | | | | | | | | | | | | |
Carl V. Sailer | | |
51
|
| | Director | | ||||||
Thomas Harrison* | | |
73
|
| | Director Nominee | | ||||||
Joseph C. Scodari* | | |
68
|
| | Director Nominee | | ||||||
Jack H. Dean* | | |
79
|
| | Director Nominee | | ||||||
James Donohue*(1) | | |
51
|
| | Director Nominee | |
Name and principal position
|
| |
Year
|
| |
Salary
($) |
| |
Bonus
($) |
| |
Stock
awards ($) |
| |
Option
awards ($) |
| |
Non-equity
incentive plan compensation ($) |
| |
All other
compensation ($)(1) |
| |
Total ($)
|
| ||||||||||||||||||||||||
David P. Luci
|
| | | | 2020 | | | | | | 277,000(2) | | | | | | 20,775 | | | | | | 274,824 | | | | | | — | | | | | | — | | | | | | 23,438 | | | | | | 596,037 | | |
President and Chief Executive
Officer |
| | | | 2019 | | | | | | 266,833(2) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 23,438 | | | | | | 290,271 | | |
Robert J. DeLuccia
|
| | | | 2020 | | | | | | 277,000(3) | | | | | | 20,775 | | | | | | 274,824 | | | | | | — | | | | | | — | | | | | | 44,971 | | | | | | 617,570 | | |
Executive Chairman
|
| | | | 2019 | | | | | | 266,833(3) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 45,016 | | | | | | 311,849 | | |
Robert G. Shawah
|
| | | | 2020 | | | | | | 90,000(4) | | | | | | — | | | | | | 62,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | 152,500 | | |
Vice President, Finance and Chief Accounting Officer
|
| | | | 2019 | | | | | | 90,000(4) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 90,000 | | |
Participants
|
| |
Class A
Membership Interests |
| |
Warrants for
Class A Membership Interests |
| |
Aggregate
Purchase Price |
| |||||||||
Executive Officers and Directors(1)(2) | | | | | | | | | | | | | | | | | | | |
Robert J. DeLuccia, Executive Chairman(3)
|
| | | | 1,853,527 | | | | | | 47,917 | | | | | $ | 350,000 | | |
David P. Luci, President and Chief Executive Officer(4)
|
| | | | 1,900,193 | | | | | | 33,750 | | | | | $ | 350,000 | | |
Robert G. Shawah, Vice President, Finance and Chief Accounting Officer(5)
|
| | | | 302,500 | | | | | | 1,250 | | | | | $ | 35,000 | | |
Carl V. Sailer, Director Nominee(6)
|
| | | | 66,667 | | | | | | 33,334 | | | | | $ | 100,000 | | |
Jack H. Dean, PhD, Director Nominee(7)
|
| | | | 31,539 | | | | | | 10,000 | | | | | $ | 65,000 | | |
Joseph C. Scodari, Director Nominee
|
| | | | 6,154 | | | | | | | | | | | $ | 20,000 | | |
Thomas Harrison, Director Nominee
|
| | | | 3,077 | | | | | | | | | | | $ | 10,000 | | |
James Donohue, Director Nominee
|
| | | | 25,000 | | | | | | 12,500 | | | | | $ | 25,000 | | |
| | |
Shares Beneficially Owned
Prior to Offering |
| |
Shares Beneficially Owned
After Offering |
| ||||||||||||||||||
Name of Beneficial Owner
|
| |
Number
|
| |
Percentage
|
| |
Number
|
| |
Percentage
|
| ||||||||||||
Named Executive Officers and Directors(1) | | | | | | | | | | | | | | | | | | | | | | | | | |
David P. Luci(2)
|
| | | | 1,053,606 | | | | | | 15.2% | | | | | | 1,053,606 | | | | | | 11.2% | | |
Robert G. Shawah(3)
|
| | | | 189,200 | | | | | | 2.7% | | | | | | 189,200 | | | | | | 2.0% | | |
Robert J. DeLuccia(4)
|
| | | | 1,030,273 | | | | | | 14.9% | | | | | | 1,030,273 | | | | | | 11.0% | | |
Joseph C. Scodari
|
| | | | 3,077 | | | | | | *% | | | | | | 3,077 | | | | | | * | | |
Jack H. Dean(5)
|
| | | | 17,693 | | | | | | *% | | | | | | 17,693 | | | | | | * | | |
Thomas Harrison(6)
|
| | | | 1,539 | | | | | | *% | | | | | | 1,539 | | | | | | * | | |
Carl Sailer(7)
|
| | | | 60,250 | | | | | | 1.1% | | | | | | 60,250 | | | | | | * | | |
James Donohue
|
| | | | 12,500 | | | | | | *% | | | | | | 12,500 | | | | | | * | | |
All executive officers and directors as a group (8 persons)
|
| | | | 2,368,137 | | | | | | 34.5% | | | | | | 2,368,137 | | | | | | 25.5% | | |
Underwriter
|
| |
Number of
Shares of Common Stock |
|
Alexander Capital, L.P. | | | | |
Total:
|
| | | |
| | |
Per Share
|
| |
Total
Without Over- Allotment Option |
| |
Total
With Over- Allotment Option |
| |||
Public offering price
|
| | | $ | | | |
|
| |
|
| |
Underwriting discount (8%)
|
| | | $ | | | | | | | | | |
Proceeds, before expenses, to us
|
| | | $ | | | | | | | | |
| | |
Page
|
| |||
| | | | F-2 | | | |
FINANCIAL STATEMENTS: | | | | | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | |
|
/s/ CohnReznick LLP
|
| | | |
| | |
2020
|
| |
2019
|
| ||||||
ASSETS | | | | | | | | | | | | | |
CURRENT ASSETS | | | | | | | | | | | | | |
Cash
|
| | | $ | 3,175,411 | | | | | $ | 2,483,322 | | |
Prepaid Expenses
|
| | | | 48,609 | | | | | | 48,103 | | |
TOTAL CURRENT ASSETS
|
| | | | 3,224,020 | | | | | | 2,531,425 | | |
TOTAL ASSETS
|
| | | $ | 3,224,020 | | | | | $ | 2,531,425 | | |
LIABILITIES AND MEMBERS’ EQUITY | | | | | | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | | | | | | |
Accounts Payable and Accrued Expenses
|
| | | $ | 455,931 | | | | | $ | 1,256,591 | | |
Paycheck Protection Program Loan
|
| | | | 16,625 | | | | | | — | | |
Advanced Receipt of Equity Subscriptions
|
| | | | — | | | | | | 454,980 | | |
TOTAL CURRENT LIABILITIES
|
| | | | 472,556 | | | | | | 1,711,571 | | |
NONCURRENT LIABILITIES | | | | | | | | | | | | | |
Paycheck Protection Program Loan
|
| | | | 49,878 | | | | | | — | | |
TOTAL LIABILITIES
|
| | | | 522,434 | | | | | | — | | |
COMMITMENTS AND CONTINGENCIES | | | | | | | | | | | | | |
MEMBERS’ EQUITY | | | | | | | | | | | | | |
Members’ Equity, Class A
|
| | | | 16,402,198 | | | | | | 9,920,428 | | |
Members’ Equity, Class B
|
| | | | 100,000 | | | | | | 100,000 | | |
Accumulated Deficit
|
| | | | (13,800,612) | | | | | | (9,200,574) | | |
TOTAL MEMBERS’ EQUITY
|
| | | | 2,701,586 | | | | | | 819,854 | | |
TOTAL LIABILITIES AND MEMBERS’ EQUITY
|
| | | $ | 3,224,020 | | | | | $ | 2,531,425 | | |
| | |
2020
|
| |
2019
|
| ||||||
OPERATING EXPENSES | | | | | | | | | | | | | |
Research and Development
|
| | | $ | 2,202,979 | | | | | $ | 3,510,088 | | |
General and Administrative
|
| | | | 2,397,059 | | | | | | 2,421,165 | | |
TOTAL OPERATING EXPENSES
|
| | | | 4,600,038 | | | | | | 5,931,253 | | |
NET LOSS
|
| | | $ | 4,600,038 | | | | | $ | 5,931,253 | | |
Pro Forma C Corporation Information (unaudited) – See Note 9 | | | | | | | | | | | | | |
Historical loss from operations before income taxes
|
| | | | | | | | | | | | |
Pro forma provision (benefit) for income taxes
|
| | | | | | | | | | | | |
Pro forma net loss
|
| | | | | | | | | | | | |
Pro forma net loss per common share basic and diluted | | | | | | | | | | | | | |
Weighted average pro forma shares outstanding basic and diluted | | | | | | | | | | | | | |
| | |
Class A Membership Interests
|
| |
Class B Membership Interests
|
| |
Accumulated
Deficit |
| |
Total
Members’ Equity |
| ||||||||||||||||||||||||
| | |
Number of
Units |
| |
Amount
|
| |
Number of
Units |
| |
Amount
|
| ||||||||||||||||||||||||
Balance at January 1, 2019
|
| | | | 8,391,650 | | | | | $ | 5,019,542 | | | | | | 100,000 | | | | | $ | 100,000 | | | | | $ | (3,269,321) | | | | | $ | 1,850,221 | | |
Private Placement Offerings, net of issuance costs of $18,045
|
| | | | 2,009,252 | | | | | | 4,000,455 | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,000,455 | | |
Share-Based Compensation
|
| | | | 495,833 | | | | | | 569,444 | | | | | | — | | | | | | — | | | | | | — | | | | | | 569,444 | | |
Share-Based Payments to Vendors
|
| | | | 161,931 | | | | | | 330,987 | | | | | | — | | | | | | — | | | | | | — | | | | | | 330,987 | | |
Net Loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (5,931,253) | | | | | | (5,931,253) | | |
Balance at December 31, 2019
|
| | | | 11,058,666 | | | | | | 9,920,428 | | | | | | 100,000 | | | | | | 100,000 | | | | | | (9,200,574) | | | | | | 819,854 | | |
Private Placement Offerings, net of issuance costs of $51,409
|
| | | | 1,421,629 | | | | | | 4,432,124 | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,432,124 | | |
Executive Compensation Settled with Membership Interests
|
| | | | 312,680 | | | | | | 781,700 | | | | | | — | | | | | | — | | | | | | — | | | | | | 781,700 | | |
Share-Based Compensation
|
| | | | 553,419 | | | | | | 695,833 | | | | | | — | | | | | | — | | | | | | — | | | | | | 695,833 | | |
Share-Based Payments to Vendors
|
| | | | 147,413 | | | | | | 572,113 | | | | | | — | | | | | | — | | | | | | — | | | | | | 572,113 | | |
Net Loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,600,038) | | | | | | (4,600,038) | | |
Balance at December 31, 2020
|
| | | | 13,493,807 | | | | | $ | 16,402,198 | | | | | | 100,000 | | | | | $ | 100,000 | | | | | $ | (13,800,612) | | | | | $ | 2,701,586 | | |
| | |
2020
|
| |
2019
|
| ||||||
Cash Flow from Operating Activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (4,600,038) | | | | | $ | (5,931,253) | | |
Adjustments to reconcile net loss to net cash used in operating activities:
|
| | | | | | | | | | | | |
Share-Based Compensation
|
| | | | 695,833 | | | | | | 569,444 | | |
Share-Based Payments to Vendors
|
| | | | 572,113 | | | | | | 330,987 | | |
Executive Compensation Settled with Membership Interests
|
| | | | 781,700 | | | | | | — | | |
(Increase) / Decrease In:
|
| | | | | | | | | | | | |
Prepaid Expenses
|
| | | | (506) | | | | | | (15,374) | | |
Accounts Payable and Accrued Expenses
|
| | | | (800,660) | | | | | | 1,060,930 | | |
Net Cash Used In Operating Activities
|
| | | | (3,351,558) | | | | | | (3,985,266) | | |
Cash Flow from Financing Activities: | | | | | | | | | | | | | |
Proceeds from Advanced Receipts of Private Placement Offerings
|
| | | | — | | | | | | 454,980 | | |
Proceeds from Paycheck Protection Program Loan
|
| | | | 66,503 | | | | | | — | | |
Proceeds from Private Placement Offerings, net of issuance costs
|
| | | | 3,977,144 | | | | | | 4,000,455 | | |
Net Cash Provided By Financing Activities
|
| | | | 4,043,647 | | | | | | 4,455,435 | | |
Net Increase In Cash
|
| | | | 692,089 | | | | | | 470,169 | | |
Cash at Beginning of Year
|
| | | | 2,483,322 | | | | | | 2,013,153 | | |
Cash at End of Year
|
| | | $ | 3,175,411 | | | | | $ | 2,483,322 | | |
SUPPLEMENTAL DISCLOSURE | | | | | | | | | | | | | |
NONCASH FINANCING ACTIVITY
|
| | | | | | | | | | | | |
Vendor warrant issuance related to Private Placement Offering
|
| | | $ | 23,177 | | | | | $ | — | | |
| | |
2020
|
| |
2019
|
| ||||||
Accrued compensation expenses
|
| | | $ | 317,068 | | | | | $ | 854,244 | | |
Accrued research and development
|
| | | | 89,156 | | | | | | 347,363 | | |
Accrued professional fees
|
| | | | 49,707 | | | | | | 52,680 | | |
Other accounts payable and accrued expenses
|
| | | | — | | | | | | 2,304 | | |
Total
|
| | | $ | 455,931 | | | | | $ | 1,256,591 | | |
|
Total Paycheck Protection Program Loan
|
| | | $ | 66,503 | | |
|
Less current portion
|
| | | | 16,625 | | |
|
Long-term Debt
|
| | | $ | 49,878 | | |
|
2021
|
| | | $ | 16,625 | | |
|
2022
|
| | | $ | 33,251 | | |
|
2023
|
| | | $ | 16,627 | | |
| | |
Class A
Membership Interests |
| |||
Nonvested at January1, 2019
|
| | | | 1,107,870 | | |
Granted
|
| | | | 225,000 | | |
Vested
|
| | | | (495,833) | | |
Nonvested at December 31, 2019
|
| | | | 837,037 | | |
Granted
|
| | | | 117,308 | | |
Vested
|
| | | | (553,419) | | |
Nonvested at December 31, 2020
|
| | | | 400,926 | | |
| | |
Amount
|
| |||
SEC registration fee
|
| | | $ | 2,196 | | |
FINRA filing fee
|
| | | | 3,519 | | |
Initial listing fee
|
| | | | * | | |
Printing and engraving expenses
|
| | | | * | | |
Legal fees and expenses
|
| | | | * | | |
Accounting fees and expenses
|
| | | | * | | |
Transfer agent and registrar fees and expenses
|
| | | | * | | |
Miscellaneous expenses
|
| | | | * | | |
Total
|
| | | $ | * | | |
|
Exhibit
Number |
| |
Description of Exhibit
|
| |||
| | | 1.1* | | | | Form of Underwriting Agreement. | |
| | | 2.1* | | | | Form of Certificate of Conversion. | |
| | | 3.1* | | | | Certificate of Formation. | |
| | | 3.2* | | | | Form of Certificate of Incorporation to be in effect upon completion of the Registrant’s conversion from a limited liability company to a corporation. | |
| | | 3.3* | | | | Form of By-Laws of the Registrant to be in effect upon completion of the Registrant’s conversion from a limited liability company to a corporation. | |
| | | 4.1* | | | | Form of Common Stock Certificate. | |
| | | 5.1* | | | | Opinion of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. | |
| | | 10.1* | | | | Form of Indemnification Agreement. | |
| | | 10.2* | | | | Form of Securities Purchase Agreement. | |
| | | 10.3* | | | | Form of Warrant. | |
| | | 10.4* | | | | Form of Investor Rights Agreement, by and between the Registrant and certain purchasers. | |
| | | 10.4+* | | | | Executive Employment Agreement, by and between the Registrant and Robert J. DeLuccia, dated , 2021. | |
| | | 10.5+* | | | | Executive Employment Agreement, by and between the Registrant and David P. Luci, dated, 2021. | |
| | | 10.6+* | | | | Executive Employment Agreement, by and between the Registrant and Robert Shawah, dated, 2021. | |
| | | 10.7* | | | | 2021 Equity Incentive Plan. | |
|
Exhibit
Number |
| |
Description of Exhibit
|
| |||
| | | 21.1* | | | | Subsidiaries of Registrant. | |
| | | 23.1* | | | | Consent of CohnReznick LLP. | |
| | | 23.2* | | | | Consent of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. (included in Exhibit 5.1). | |
| | | 24.1* | | | | Power of Attorney (included on signature page). | |
| | | 99.1* | | | | Consent of Joseph C. Scodari to be Named as a Director Nominee | |
| | | 99.2* | | | | Consent of Jack H. Dean to be Named as a Director Nominee | |
| | | 99.3* | | | | Consent of Thomas Harrison to be Named as a Director Nominee | |
|
Name
|
| |
Title
|
| |
Date
|
|
|
David P. Luci
|
| |
Chief Executive Officer & President
(Principal Executive Officer) |
| |
, 2021
|
|
|
Robert G. Shawah
|
| |
Vice President, Finance & Chief Accounting Officer
(Principal Financial Officer and Principal Accounting Officer) |
| |
, 2021
|
|
|
Robert J. DeLuccia
|
| | Executive Chairman | | |
, 2021
|
|
|
Carl Sailer
|
| | Director | | |
, 2021
|
|