Annual report pursuant to Section 13 and 15(d)

10. SUBSEQUENT EVENTS

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10. SUBSEQUENT EVENTS
12 Months Ended
Mar. 31, 2021
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

10. SUBSEQUENT EVENTS

 

Management has evaluated events subsequent to March 31, 2021 through the date that the accompanying consolidated financial statements were filed with the Securities and Exchange Commission for transactions and other events which may require adjustment of and/or disclosure in such financial statements.

 

SALES UNDER ATM FACILITY

 

In June 2021, we raised aggregate net proceeds under the Agreement described above of $4,947,785, net of $126,922 in commissions to Wainwright and $2,154 in other offering expense through the sale of 626,000 shares of our common stock at an average price of $7.90 per share of net proceeds.

 

REGISTERED DIRECT FINANCING

 

In June 2021, we sold an aggregate of 1,380,555 shares of our common stock at a purchase price per share of $9.00, for aggregate gross proceeds to us of approximately $12.425 million, before deducting fees payable to Maxim Group LLC, the placement agent and other offering expenses. These shares were sold through a securities purchase agreement with certain institutional investors, The shares were issued pursuant to an effective shelf registration statement on Form S-3, which was originally filed with the SEC on March 19, 2020, and was declared effective on March 30, 2020 (File No. 333-237269) and a prospectus supplement thereunder.

 

WARRANT EXERCISES

 

In June 2021, pursuant to the exercise of outstanding warrants to purchase 531,167 shares of our common stock, we received proceeds in the amount of $820,938 from institutional investors.

 

Also in June 2021, pursuant to the exercise of 874,664 outstanding warrants on a cashless basis, we issued 675,554 shares of our common stock. The difference of 199,110 shares of common stock issuable pursuant to the warrants were cancelled.

 

STOCK OPTION EXERCISE

 

In June 2021, a former employee paid us $22,969 to exercise 9,375 stock options.

 

RSU GRANTS

 

On April 1, 2021, pursuant to the terms of the Company’s 2012 Non-Employee Directors Compensation Program, as amended, or the Directors Plan, the Compensation Committee of the Board granted RSUs under the Company’s 2020 Plan to each non-employee director of the Company. The Director’s Plan provides for a grant of $50,000 worth of RSUs at the beginning of each fiscal year, priced at the average for the closing prices for the five days preceding and including the date of grant, or $2.06 per share as of April 1, 2021. Each eligible director was granted an RSU in the amount of 24,295 shares under the 2020 Plan. The RSU’s are subject to vesting in four equal quarterly installments on June 30, September 30, December 31, 2021, and March 31, 2022, subject to the recipient's continued service with the Company on each such vesting date.

 

CONTINGENT BONUS AWARDS

 

Pursuant to the terms of the Executive Employment Agreement, dated October 30, 2020, between the Company and Charles J. Fisher, Jr., M.D., or the Employment Agreement, the Company’s Chief Executive Officer, Dr. Fisher is entitled to a cash bonus equal to 50% of his annual base salary upon achievement of certain qualified events, or a Qualifying Event, as set forth in the Employment Agreement, as well as a stock option grant of a number of shares of common stock, pursuant to the 2020 Plan, such that Dr. Fisher’s equity holdings in the Company after the additional grant will equal 3% of the Company, on a fully diluted basis. Based on the market capitalization of the Company and the Company’s recent registered direct financing, the Company believes, subject to approval of the Compensation Committee of the Company’s Board of Directors, that in June 2021 a Qualifying Event has occurred and that Dr. Fisher has earned the cash bonus award in the amount of $215,000 and an additional stock option grant under the terms of the Employment Agreement.