Quarterly report pursuant to Section 13 or 15(d)

SUBSEQUENT EVENTS

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SUBSEQUENT EVENTS
9 Months Ended
Dec. 31, 2021
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

13. SUBSEQUENT EVENTS

 

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

 

Lab Lease

 

In December 2020, we entered into an agreement to lease approximately 2,823 square feet of office space and 1,807 square feet of laboratory space. The agreement carries a term of 63 months and we took possession of the office space effective October 1, 2021. We took possession of the lab space effective January 1, 2022 (see Note 12).

 

During the three months ending March 31, 2022, we will record a $400,797 right-of-use lease asset and associated lease liability related to the lab space component of the lease based on the present value of lease payments over the expected lease term of 60 months, discounted using our estimated incremental borrowing rate of 4.25%. The initial monthly base rent under the lab component of the lease is $7,456.

 

2021 Target Bonus Awards

 

On February 10, 2022, the Compensation Committee of the Board (the “Committee”) approved cash bonus awards to the Company’s executive officers in accordance with the terms of their respective employment agreements with the Company after review of Company and individual performance for 2021 and review of data from the Company’s independent compensation consultant. The Committee approved cash bonuses for the Company’s Chief Executive Officer, Chief Medical Officer, Chief Operating Officer and Chief Financial Officer in the amount of $215,000, $160,000, $136,000 and $110,000, respectively. The awards were based on a percentage of their respective 2021 annual base salaries.

 

2022 Annual Base Salaries and Target Bonus Levels

 

On February 10, 2022, after review of data provided by the Company’s independent compensation consultant, the Committee approved annual base salaries for its executive officers for 2022, as follows, Chief Executive Officer $460,000, Chief Medical Officer, $400,000, Chief Operating Officer $340,000, and Chief Financial Officer $325,000, effective January 1, 2022. The Committee also approved target bonus levels for its executive officers for 2022 as follows, Chief Executive Officer, 50% bonus target, Chief Medical Officer, Chief Operating Officer and Chief Financial Officer each at 40% bonus target for 2022. The Committee targeted the 50th percentile for companies in its peer group when approving 2022 base salaries and target bonus levels.

 

Stock Option Grants

 

On February 10, 2022, after review of data provided by the Company’s independent compensation consultant, the Committee awarded stock option grants to each of its executive officers. Each executive officer was granted an option to purchase shares of the Company’s common stock under the Company’s 2020 Equity Incentive Plan (the “Plan”), at an exercise price equal to the fair market value on the date of grant, or $[1.41] per share. The Committee awarded the grants as follows: the Chief Executive Officer was granted an option to purchase 192,600 shares of common stock, and the Chief Medical Officer, Chief Operating Officer and Chief Financial Officer each were granted an option to purchase 100,200 shares of common stock. The options are subject to vesting over four years at the rate of 25% at the end of the first year following the grant date, then monthly vesting over the following 36 months, subject to Continuous Service with the Company, as defined in the Plan.

 

Non-Employee Director Compensation Policy

 

On February 10, 2022, at the recommendation of the Company’s independent compensation consultant, the Committee approved an amendment to the Company’s Non-Employee Director Compensation Policy to increase the annual Board service retainer from $35,000 to $40,000, effective as of January 1, 2022.