ANAVEX LIFE SCIENCES CORP. 10-Q

ITEM 1. FINANCIAL STATEMENTS 3 Anavex Life Sciences Corp. Interim Condensed Consolidated Financial Statements March 31, 2022 (Unaudited) F- 1 Anavex Life Sciences Corp. Interim Condensed Consolidated Balance Sheets As at March 31, 2022 and September 30, 2021 (Unaudited) March 31, September 30, 2022 2021 Assets Current assets Cash and cash equivalents $ 153,342,556 $ 152,107,745 Incentive and tax receivables 6,468,987 9,136,831 Prepaid expenses and other current assets 464,605 371,914 Total assets $ 160,276,148 $ 161,616,490 Liabilities and stockholders' equity Current Liabilities Accounts payable $ 2,631,888 $ 4,739,781 Accrued liabilities (Note 4) 4,995,388 5,614,774 Deferred grant income 443,831 443,831 Total liabilities 8,071,107 10,798,386 Commitments and Contingencies - Note 6 Stockholders' equity Capital stock Authorized: 10,000,000 preferred stock, par value $ 0.001 per share 200,000,000 common stock, par value $ 0.001 per share Issued and outstanding: 77,161,688 common shares (September 30, 2021 - 75,918,465 ) 77,163 75,920 Additional paid-in capital 371,437,616 348,328,048 Share proceeds receivable ( 403,696 ) — Accumulated deficit ( 218,906,042 ) ( 197,585,864 ) Total stockholders' equity 152,205,041 150,818,104 Total liabilities and stockholders' equity $ 160,276,148 $ 161,616,490 See Accompanying Notes to Condensed Consolidated Interim Financial Statements F- 2 Anavex Life Sciences Corp. Interim Condensed Consolidated Statements of Operations and Comprehensive Loss For the three and six months ended March 31, 2022 and 2021 (Unaudited) Three months ended March 31, Six months ended March 31, 2022 2021 2022 2021 Operating expenses General and administrative $ 2,915,158 $ 2,233,745 $ 5,982,109 $ 3,704,401 Research and development 8,604,589 6,720,841 17,261,028 14,646,360 Total operating expenses ( 11,519,747 ) ( 8,954,586 ) ( 23,243,137 ) ( 18,350,761 ) Other income (expenses) Grant income — 10,820 — 10,820 Research and development incentive income 835,513 960,879 1,646,243 2,230,195 Interest income, net 7,578 9,216 12,488 7,657 Foreign exchange gain (loss), net 268,645 ( 154,563 ) 324,008 178,071 Total other income, net 1,111,736 826,352 1,982,739 2,426,743 Net loss before provision for income taxes ( 10,408,011 ) ( 8,128,234 ) ( 21,260,398 ) ( 15,924,018 ) Income tax expense, current ( 29,800 ) ( 26,988 ) ( 59,780 ) ( 86,269 ) Net loss and comprehensive loss $ ( 10,437,811 ) $ ( 8,155,222 ) $ ( 21,320,178 ) $ ( 16,010,287 ) Net Loss per share Basic and diluted $ ( 0.14 ) $ ( 0.12 ) $ ( 0.28 ) $ ( 0.24 ) Weighted average number of shares outstanding Basic and diluted 76,248,603 68,594,867 76,121,792 66,421,380 See Accompanying Notes to Condensed Consolidated Interim Financial Statements F- 3 Anavex Life Sciences Corp. Interim Condensed Consolidated Statement of Changes in Stockholders' Equity For the three months ended March 31, 2022 and 2021 (Unaudited) Common Stock Additional Paid-in Share proceeds Accumulated Shares par value Capital Receivable Deficit Total Balance, January 1, 2022 76,155,187 76,156 354,759,781 — $ ( 208,468,231 ) 146,367,706 Shares issued pursuant to exercise of stock options 39,700 40 123,386 — — 123,426 Shares issued under Sales Agreement 966,801 967 12,489,713 ( 403,696 ) — 12,086,984 Less: share issue costs — — ( 374,720 ) — — ( 374,720 ) Stock based compensation — — 4,439,456 — — 4,439,456 Net loss — — — — ( 10,437,811 ) ( 10,437,811 ) Balance, March 31, 2022 77,161,688 $ 77,163 $ 371,437,616 $ ( 403,696 ) $ ( 218,906,042 ) $ 152,205,041 Balance, January 1, 2021 66,962,957 $ 66,964 $ 213,766,108 — $ ( 167,532,295 ) $ 46,300,777 Shares issued under 2019 purchase agreement Purchase shares 661,708 662 6,649,134 — — 6,649,796 Commitment shares 21,571 22 ( 22 ) — — — Shares issued upon exercise of options 346,900 347 998,455 — — 998,802 Shares issued under Sales Agreement 2,037,484 2,037 29,039,187 — — 29,041,224 Less: share issue costs — — ( 871,237 ) — — ( 871,237 ) Stock based compensation — — 1,846,156 — — 1,846,156 Net loss — — — — ( 8,155,222 ) ( 8,155,222 ) Balance, March 31, 2021 70,030,620 $ 70,032 $ 251,427,781 $ — $ ( 175,687,517 ) $ 75,810,296 See Accompanying Notes to Condensed Consolidated Interim Financial Statements F- 4 Anavex Life Sciences Corp. Interim Condensed Consolidated Statement of Changes in Stockholders' Equity For the six months ended March 31, 2022 and 2021 (Unaudited) Common Stock Additional Paid-in Share proceeds Accumulated Shares Par Value Capital Receivable Deficit Total Balance, October 1, 2021 75,918,465 $ 75,920 $ 348,328,048 — $ ( 197,585,864 ) $ 150,818,104 Shares issued under Sales Agreement 1,066,389 1,066 14,802,398 ( 403,696 ) — 14,399,768 Less: share issue costs — — ( 537,806 ) — — ( 537,806 ) Shares issued upon exercise of stock options 176,834 177 496,746 — — 496,923 Stock based compensation — — 8,348,230 — — 8,348,230 Net loss — — — — ( 21,320,178 ) ( 21,320,178 ) Balance, March 31, 2022 77,161,688 $ 77,163 $ 371,437,616 $ ( 403,696 ) $ ( 218,906,042 ) $ 152,205,041 Balance, October 1, 2020 62,045,198 $ 62,047 $ 186,851,752 — $ ( 159,677,230 ) $ 27,236,569 Shares issued under 2019 Purchase Agreement — Purchase shares 4,007,996 4,008 24,107,190 — — 24,111,198 Commitment shares 78,213 78 ( 78 ) — — — Shares issued upon exercise of options 346,900 347 998,455 — — 998,802 Shares issued under Sales Agreement 3,552,313 3,552 37,819,689 — — 37,823,241 Less: share issue costs — — ( 1,134,697 ) — — ( 1,134,697 ) Stock based compensation — — 2,785,470 — — 2,785,470 Net loss — — — — ( 16,010,287 ) ( 16,010,287 ) Balance, March 31, 2021 70,030,620 $ 70,032 $ 251,427,781 $ — $ ( 175,687,517 ) $ 75,810,296 See Accompanying Notes to Condensed Consolidated Interim Financial Statements F- 5 Anavex Life Sciences Corp. Interim Condensed Consolidated Statements of Cash Flows For the six months ended March 31, 2022 and 2021 (Unaudited) 2022 2021 Cash flows used in operating activities Net loss $ ( 21,320,178 ) $ ( 16,010,287 ) Adjustments to reconcile net loss to net cash used in operations: Stock-based compensation 8,348,230 2,785,470 Changes in working capital balances: Incentive and tax receivables 2,667,844 ( 2,478,750 ) Prepaid expenses and other current assets ( 109,056 ) 57,030 Accounts payable ( 2,107,893 ) ( 331,002 ) Accrued liabilities ( 619,386 ) 302,205 Deferred grant income — 487,111 Net cash used in operating activities ( 13,140,439 ) ( 15,188,223 ) Cash flows provided by financing activities Issuance of common shares 14,399,768 61,934,439 Share issue costs ( 521,441 ) ( 1,134,697 ) Proceeds from exercise of stock options 496,923 998,802 Net cash provided by financing activities 14,375,250 61,798,544 Increase in cash and cash equivalents during the period 1,234,811 46,610,321 Cash and cash equivalents, beginning of period 152,107,745 29,249,018 Cash and cash equivalents, end of period $ 153,342,556 $ 75,859,339 Supplemental Cash Flow Information Cash paid for state and local minimum income taxes $ 141,374 $ 59,281 See Accompanying Notes to Condensed Consolidated Interim Financial Statements F- 6 Anavex Life Sciences Corp. Notes to the Condensed Consolidated Interim Financial Statements March 31, 2022 (Unaudited) Note 1 Description of Business and Basis of Presentation Description of Business Anavex Life Sciences Corp. (“Anavex” or the “Company”) is a clinical stage biopharmaceutical company engaged in the development of differentiated therapeutics by applying precision medicine to central nervous system (“CNS”) diseases with high unmet need. Anavex analyzes genomic data from clinical studies to identify biomarkers, which are used to select patients that will receive the therapeutic benefit for the treatment of neurodegenerative and neurodevelopmental diseases. The Company’s lead compound ANAVEX ® 2-73 is being developed to treat Alzheimer’s disease, Parkinson’s disease and potentially other central nervous system diseases, including rare diseases, such as Rett syndrome, a rare severe neurological monogenic disorder caused by mutations in the X-linked gene, methyl-CpG-binding protein 2 (“MECP2”) . Basis of Presentation These unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim reporting. Accordingly, certain information and note disclosures normally included in the annual financial statements in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the disclosures are adequate to make the information presented not misleading. These accompanying unaudited interim condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary for fair presentation of the information contained herein. The consolidated balance sheet as of September 30, 2021 was derived from the audited annual financial statements but does not include all disclosures required by U.S. GAAP. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended September 30, 2021 filed with the SEC on November 24, 2021. The Company follows the same accounting policies in the preparation of interim reports. Operating results for the three and six months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending September 30, 2022. Liquidity All of the Company’s potential drug compounds are in the clinical development stage and the Company cannot be certain that its research and development efforts will be successful or, if successful, that its potential drug compounds will ever be approved for sales to pharmaceutical companies or generate commercial revenues. To date, we have not generated any revenues from our operations. The Company expects the business to continue to experience negative cash flows from operations for the foreseeable future and cannot predict when, if ever, our business might become profitable. F- 7 Anavex Life Sciences Corp. Notes to the Condensed Consolidated Interim Financial Statements March 31, 2022 (Unaudited) Note 1 Description of Business and Basis of Presentation – (Continued) Management believes that the current working capital position will be sufficient to meet the Company’s working capital requirements beyond the next 12 months after the date that these interim condensed consolidated financial statements are issued. The process of drug development can be costly, and the timing and outcomes of clinical trials is uncertain. The assumptions upon which the Company has based its estimates are routinely evaluated and may be subject to change. The actual amount of the Company’s expenditures will vary depending upon a number of factors including but not limited to the design, timing and duration of future clinical trials, the progress of the Company’s research and development programs and the level of financial resources available. The Company has the ability to adjust its operating plan spending levels based on the timing of future clinical trials. Other than our rights related to the Sales Agreement (as defined below in Note 5), there can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If the Company is not able to obtain the additional financing on a timely basis, if and when it is needed, it will be forced to delay or scale down some or all of its research and development activities. Coronavirus Disease 2019 (COVID-19) The recent global outbreak of COVID-19 has not had a material impact on the Company’s results of operations or financial condition as of March 31, 2022. However, the pandemic continues to rapidly evolve as of the date these condensed consolidated interim financial statements are issued and has created a dynamic and uncertain situation in the global economy. As such, it is uncertain as to the full magnitude that the outbreak will have on the Company’s financial condition and future results of operations. Management is actively monitoring the global situation on its business, including on its clinical trials and operations and financial condition. Given the daily evolution of the COVID-19 situation, and the global responses to curb its spread, the Company is not able to estimate the effects COVID-19 may have on its future results of operations or financial condition. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to accounting for research and development costs, incentive income receivable, valuation and recoverability of deferred tax assets, asset impairment, stock-based compensation, and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. F- 8 Anavex Life Sciences Corp. Notes to the Condensed Consolidated Interim Financial Statements March 31, 2022 (Unaudited) Note 1 Description of Business and Basis of Presentation – (Continued) Principles of Consolidation These consolidated financial statements include the accounts of Anavex Life Sciences Corp. and its wholly-owned subsidiaries, Anavex Australia Pty Limited. (“Anavex Australia”), a company incorporated under the laws of Australia, Anavex Germany GmbH, a company incorporated under the laws of Germany, and Anavex Canada Ltd., a company incorporated under the laws of the Province of Ontario, Canada. All inter-company transactions and balances have been eliminated. Fair Value Measurements The fair value hierarchy under GAAP is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and Level 3 - assets and liabilities whose significant value drivers are unobservable by little or no market activity and that are significant to the fair value of the assets or liabilities. The book value of cash and cash equivalents and accounts payable and accrued liabilities approximate their fair values due to the short-term maturity of those instruments. At March 31, 2022 and September 30, 2021, the Company did not have any Level 3 assets or liabilities. Basic and Diluted Loss per Share Basic income/(loss) per common share is computed by dividing net income/(loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted income/(loss) per common share is computed by dividing net income/(loss) available to common stockholders by the sum of (1) the weighted-average number of common shares outstanding during the period, (2) the dilutive effect of the assumed exercise of options and warrants using the treasury stock method and (3) the dilutive effect of other potentially dilutive securities. For purposes of the diluted net loss per share calculation, options and warrants are potentially dilutive securities and are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. As of March 31, 2022, loss per share excludes 11,510,319 (September 30, 2021 – 11,540,903 ) potentially dilutive common shares related to outstanding options and warrants, as their effect was anti-dilutive. F- 9 Anavex Life Sciences Corp. Notes to the Condensed Consolidated Interim Financial Statements March 31, 2022 (Unaudited) Note 2 Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Effective October 1, 2021, the Company adopted ASU 2019-12, “Simplifying the Accounting for Income Taxes (ASC 740)”, which is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying and amending existing guidance to improve consistent application. There was no material impact on the Company’s operations, financial condition, or cash flows. Note 3 Other Income Grant Income During the year ended September 30, 2021, the Company received $ 497,931 of a $ 995,862 research grant awarded by the Michael J. Fox Foundation for Parkinson’s Research. The grant will be used to fund a clinical trial of the Company’s lead compound, ANAVEX ® 2-73 related to Parkinson’s disease. The grant income is being deferred when received and amortized to other income as the related research and development expenditures are incurred. During the three and six months ended March 31, 2022, the Company did not recognize any of this grant on its statements of operations (2021: $ 10,820 and $ 10,820 , respectively). At March 31, 2022, an amount of $ 443,831 (September 30, 2021: $ 443,831 ) of this grant is recorded as deferred grant income, representing the amount of this grant which has not yet been amortized to other income. The Company will recognize this income on its statement of operations as the relating expenditures are incurred to offset the income. Research and development incentive income Research and development incentive income represents the receipt by Anavex Australia, of the Australian research and development incentive credit, (the “R&D Incentive Credit”). During the three and six months ended March 31, 2022 the Company recorded research and development incentive income of $ 835,513 (AUD 1,146,955 ) and $ 1,646,243 (AUD 2,263,317 ) (2021: $ 960,879 (AUD 1,244,133 ) and $ 2,230,195 (AUD 2,980,095 )), respectively, related to the R&D Incentive Credit for eligible research and development expenses incurred during the period. Note 4 Accrued liabilities The principal components of accrued liabilities consists of: Schedule of Accrued Liabilities March 31, September 31, 2022 2021 Clinical site costs and patient visits $ 1,797,377 $ 2,035,800 Accrued compensation and benefits 511,234 1,201,903 Fixed contract accruals 391,818 649,649 Accrued license fees payables 500,000 — All other accrued liabilities 1,794,959 1,727,422 Total accrued liabilities $ 4,995,388 $ 5,614,774 F- 10 Anavex Life Sciences Corp. Notes to the Condensed Consolidated Interim Financial Statements March 31, 2022 (Unaudited) Note 5 Equity Offerings Common Stock Common shares are voting and are entitled to dividends as declared at the discretion of the Board of Directors. Preferred Stock The Company’s Board of Directors (the “Board”) has the authority to issue preferred stock in one or more series and to fix the rights, preferences, privileges, restrictions and the number of shares constituting any series of the designation of the series. Sales Agreement The Company entered into a Controlled Equity Offering Sales Agreement on July 6, 2018, which was amended and restated on May 1, 2020 (the “Sales Agreement”) with Cantor Fitzgerald & Co. and SVB Leerink LLC (together the “Sales Agents”), pursuant to which the Company may offer and sell shares of common stock registered under an effective registration statement from time to time through the Sales Agents (the “Offering”). Upon delivery of a placement notice based on the Company’s instructions and subject to the terms and conditions of the Sales Agreement, the Sales Agents may sell the Shares by methods deemed to be an “at the market offering” offering, in negotiated transactions at market prices prevailing at the time of sale or at prices related to such prevailing market prices, or by any other method permitted by law, including negotiated transactions, subject to the prior written consent of the Company. The Company is not obligated to make any sales of Shares under the Sales Agreement. The Company or Sales Agents may suspend or terminate the offering of Shares upon notice to the other party, subject to certain conditions. The Sales Agents will act as agent on a commercially reasonable efforts basis consistent with their normal trading and sales practices and applicable state and federal law, rules and regulations and the rules of Nasdaq. The Company has agreed to pay the Sales Agents commissions for their services of up to 3.0 % of the gross proceeds from the sale of the Shares pursuant to the Sales Agreement. The Company also agreed to provide the Sales Agents with customary indemnification and contribution rights. During the six months ended March 31, 2022, 1,066,389 shares were sold pursuant to the Offering for gross proceeds of $ 14,803,464 (net proceeds of $ 14,265,658 after deducting offering expenses) (2021: 3,552,313 shares were sold for gross proceeds of $ 37,823,241 (net proceeds of $ 36,688,544 after deducting offering expenses)). At March 31, 2022, an amount of $ 148,589,086 (September 30, 2021: $ 163,392,550 ) was registered pursuant to an effective registration statement and remained available to be sold under the Sales Agreement. F- 11 Anavex Life Sciences Corp. Notes to the Condensed Consolidated Interim Financial Statements March 31, 2022 (Unaudited) Note 5 Equity Offerings – (continued) 2019 Purchase Agreement On June 7, 2019, the Company entered into a $ 50,000,000 purchase agreement (the “2019 Purchase Agreement”) with Lincoln Park, as amended on July 1, 2020, pursuant to which the Company had the right to sell and issue to Lincoln Park, and Lincoln Park was obligated to purchase, up to $ 50,000,000 in value of its shares of common stock from time to time over a three-year period until July 1, 2022. In consideration for entering into the 2019 Purchase Agreement, the Company issued to Lincoln Park 324,383 shares of common stock as a commitment fee during the year ended September 30, 2019 and agreed to issue up to 162,191 shares pro rata, when and if, Lincoln Park purchased, at the Company’s discretion, the $50,000,000 aggregate commitment. At March 31, 2022 and September 30, 2021, no shares remained available for issuance under the 2019 Purchase Agreement. During the six months ended March 31, 2021, the Company issued to Lincoln Park an aggregate of 4,086,209 shares of common stock including 4,007,996 shares of common stock for an aggregate purchase price of $ 24,111,198 and 78,213 commitment shares. Note 6 Commitments and Contingencies a) Leases During the three and six months ended March 31, 2022, the Company incurred office lease expense of $ 16,488 and $ 21,333 (2021: $ 29,903 and $ 98,290 ), respectively. b) Employee 401(k) Benefit Plan The Company has a defined-contribution savings plan under Section 401(k) of the Internal Revenue Code. The plan covers all United States based employees. United States based employees eligible to participate in the plan may contribute up to the current statutory limits under the Internal Revenue Service regulations. The 401(k) plan permits the Company to make additional matching contributions on behalf of contributing employees. During the three and six months ended March 31, 2022, the Company made $ 70,940 and $ 93,622 (2021: $ 57,484 and $ 74,040 ), respectively, in matching contributions under the 401(k) plan. c) Litigation The Company is subject to claims and legal proceedings that arise in the ordinary course of business. Such matters are inherently uncertain, and there can be no guarantee that the outcome of any such matter will be decided favorably to the Company or that the resolution of any such matter will not have a material adverse effect upon the Company’s consolidated financial statements. The Company does not believe that any of such pending claims and legal proceedings will have a material adverse effect on its consolidated financial statements. F- 12 Anavex Life Sciences Corp. Notes to the Condensed Consolidated Interim Financial Statements March 31, 2022 (Unaudited) Note 6 Commitments and Contingencies – (Continued) d) Share Purchase Warrants A summary of the status of the Company’s outstanding share purchase warrants is presented below: Schedule of exercisable share purchase warrants outstanding Weighted Average Number of Exercise Price Shares ($) Balance, September 30, 2020 500,000 3.88 Granted 60,000 12.00 Exercised ( 350,000 ) 4.19 Balance, September 30, 2021 210,000 5.69 Forfeited ( 50,000 ) 12.00 Balance, March 31, 2022 160,000 3.72 At March 31, 2022, the Company had share purchase warrants outstanding as follows: Schedule of share purchase warrants outstanding Number Exercise Price Expiry Date 150,000 $ 3.17 May 6, 2024 10,000 $ 12.00 April 21, 2026 160,000 e) Stock–based Compensation Plan 2015 Stock Option Plan On September 18, 2015, the Company’s Board approved a 2015 Omnibus Incentive Plan (the “2015 Plan”), which provided for the grant of stock options and restricted stock awards to directors, officers, employees and consultants of the Company. The maximum number of our common shares reserved for issue under the plan was 6,050,553 shares, subject to adjustment in the event of a change of the Company’s capitalization. F- 13 Anavex Life Sciences Corp. Notes to the Condensed Consolidated Interim Financial Statements March 31, 2022 (Unaudited) Note 6 Commitments and Contingencies – (Continued) e) Stock-based Compensation Plan – (Continued) 2019 Stock Option Plan On January 15, 2019, the Board approved the 2019 Omnibus Incentive Plan (the “2019 Plan”), which provides for the grant of stock options and restricted stock awards to directors, officers, employees, consultants and advisors of the Company. The maximum number of our common shares reserved for issue under the plan was 6,000,000 shares, subject to adjustment in the event of a change of the Company’s capitalization. At March 31, 2022, 406,453 options previously available under the 2019 Plan and the 2015 Plan became available under the 2022 Plan. 2022 Stock Option Plan On March 25, 2022, the Board approved, subject to stockholder approval, the 2022 Omnibus Incentive Plan (the “2022 Plan”). Under the terms of the 2022 Plan, 10,000,000 additional shares of Common Stock will be available for issuance under the plan, in addition to the shares available under the 2019 Plan and the 2015 Plan. Any awards outstanding under a previous stock option plan will remain subject to and be paid under such plan, and any shares subject to outstanding awards under a previous plan that subsequently cease to be subject to such awards (other than by reason of settlement of the awards in shares) will automatically become available for issuance under the 2022 Plan. The 2022 Plan provides that it may be administered by the Board, or the Board may delegate such responsibility to a committee. The exercise price will be determined by the Board at the time of grant shall be at least equal to the fair market value on such date. If the grantee is a 10% stockholder on the grant date, then the exercise price shall not be less than 110% of fair market value of the Company’s shares of common stock on the grant date. Stock options may be granted under the 2022 Plan for an exercise period of up to ten years from the date of grant of the option or such lesser periods as may be determined by the board, subject to earlier termination in accordance with the terms of the 2022 Plan. At March 31, 2022, no awards had been issued under the 2022 Plan and 10,406,453 options were available for issue under the 2022 Plan, subject to stockholder approval. F- 14 Anavex Life Sciences Corp. Notes to the Condensed Consolidated Interim Financial Statements March 31, 2022 (Unaudited) Note 6 Commitments and Contingencies – (Continued) e) Stock-based Compensation Plan – (Continued) A summary of the status of Company’s outstanding stock options is presented below: Schedule of outstanding stock purchase options Weighted Weighted Average Average Grant Aggregate Number of Exercise Price Date Fair Value intrinsic value Shares ($) ($) ($) Outstanding, September 30, 2020 10,076,266 3.48 14,982,581 Granted 2,732,000 12.55 9.32 Forfeited ( 55,834 ) 3.04 2.43 Exercised ( 1,421,529 ) 2.89 2.43 24,446,305 Outstanding, September 30, 2021 11,330,903 5.74 140,132,451 Granted 300,000 15.16 10.19 Forfeited ( 103,750 ) 5.39 4.04 Exercised ( 176,834 ) 2.81 2.23 Outstanding, March 31, 2022 11,350,319 6.04 81,056,222 Exercisable, March 31, 2022 8,201,651 3.81 70,271,175 The following summarizes information about stock options at March 31, 2022 by a range of exercise prices: Schedule Of Share-based Payment Arrangement, Option, Activity Weighted Range of exercise average Weighted Weighted prices Number of remaining average Number of average outstanding contractual exercise vested exercise From To options life (in years) price options price $ 0.92 $ 2.96 4,108,765 5.67 2.29 4,059,181 2.29 $ 3.15 $ 4.80 2,097,500 5.85 3.30 1,822,500 3.30 $ 5.04 $ 8.98 3,347,054 5.91 6.06 2,207,054 6.35 $ 11.10 $ 17.03 500,000 8.03 13.53 67,916 12.62 $ 18.11 $ 24.58 1,297,000 9.33 19.39 45,000 24.08 11,350,319 8,201,651 The weighted average grant date fair value of options vested during the three and six months ended March 31, 2022 was $ 3.20 (2021: $ 2.28 ). At March 31, 2022, the weighted average contractual life of options outstanding was 6.29 years (September 30, 2021: 6.79 years) and for options exercisable was 5.37 years (September 30, 2021: 5.51 years). The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted market price of the Company’s stock for the options that were in-the-money at March 31, 2022. F- 15 Anavex Life Sciences Corp. Notes to the Condensed Consolidated Interim Financial Statements March 31, 2022 (Unaudited) Note 6 Commitments and Contingencies – (Continued) e) Stock-based Compensation Plan – (Continued) Schedule of general and administrative expenses and research and development expenses Three months ended March 31, Six months ended March 31, 2022 2021 2022 2021 General and administrative $ 1,577,831 $ 793,957 $ 3,249,557 $ 1,216,780 Research and development 2,861,625 1,052,199 5,098,673 1,568,690 Total stock-based compensation $ 4,439,456 $ 1,846,156 $ 8,348,230 $ 2,785,470 During the three and six months ended March 31, 2022, the Company recognized stock-based compensation expense of $ 4,439,456 and $ 8,348,230 (2021: $ 1,846,156 and $ 2,785,470 ), respectively, in connection with the issuance and vesting of stock options and warrants in exchange for services. These amounts have been included in general and administrative expenses and research and development expenses on the Company’s statement of operations as follows: An amount of approximately $ 16,030,270 in stock-based compensation is expected to be recorded over the remaining term of such options through fiscal 2025. The fair value of each option award granted during the three and six months ended March 31, 2022 and 2021 is estimated on the date of grant using the Black Scholes option pricing model based on the following weighted average assumptions: Schedule of weighted average assumptions for fair value of each option award 2022 2021 Risk-free interest rate 1.40 % 0.64 % Expected life of options (years) 4.90 5.64 Annualized volatility 95.88 % 96.26 % Dividend rate 0.00 % 0.00 % The fair value of stock compensation charges recognized during the three and six months ended March 31, 2022 and 2021 was determined with reference to the quoted market price of the Company’s shares on the grant date. F- 16