What changed in this filing

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Item 1. Financial Statements

2022-02-11 compared with 2021-11-15 · 105 added, 92 removed, 428 unchanged (32% of the section changed)

2 unchanged sentences

Condensed Consolidated Interim Financial Statements

For the three months ended September 30, 2021

For the six months ended December 31, 2021

(expressed in US dollars unless otherwise noted)

2 unchanged sentences

(In thousands, except par value amounts)

September 30,

Current assets

2 unchanged sentences

Clinical trial deposit

Total current assets

Clinical trial deposit

3 unchanged sentences

Related party payables

Total current liabilities

Milestone payment liability

4 unchanged sentences

Issued and outstanding

279 Series A shares at September 30, 2021

279 Series A shares at December 31, 2021

(June 30, 2021 – 279 )

18 Series C shares at September 30, 2021

17 Series C shares at December 31, 2021

(June 30, 2021 – 20 )

175,000 shares at September 30, 2021 and June 30, 2021,

175,000 shares at December 31, 2021 and June 30, 2021,

$ 0.001 par value

47,974 issued at September 30, 2021 (June 30, 2021 –

49,013 issued at December 31, 2021 (June 30, 2021 –

Additional paid-in capital

3 unchanged sentences

Total liabilities and stockholders’ equity

Nature of operations, corporate history, going concern

Nature of operations, corporate history, and going concern

and management plans (note 1)

5 unchanged sentences

Three months ended

September 30,

Six months ended

Research and development

18 unchanged sentences

Condensed Consolidated Interim Statements of Stockholders’ Equity

For the three months ended September 30, 2021

For the three and six months ended December 31, 2021

(In thousands)

13 unchanged sentences

Balance - September 30, 2021

Conversion of Series C Preferred stock

to common stock

Warrants issued for services

Stock option expense

Series A Preferred cash dividend

Loss for the period

Balance - December 31, 2021

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

1 unchanged sentence

Condensed Consolidated Interim Statements of Stockholders’ Equity

For the three months ended September 30, 2020

For the three and six months ended December 31, 2020

(In thousands)

15 unchanged sentences

Balance - September 30, 2020

Series C Preferred stock share issuance costs

Conversion of Series B Preferred stock

to common stock

Conversion of Series C Preferred stock

to common stock

Exercise of warrants

Warrants issued for services

Stock options exercised

Stock option expense

Series A Preferred cash dividend

Series B Preferred stock dividend

Loss for the period

Balance - December 31, 2020

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

2 unchanged sentences

(In thousands)

Three months ended

September 30,

Six months ended

Cash flows from operating activities

Loss for the period

Adjustments to reconcile net loss to net cash used in operating

Adjustments to reconcile net loss to net cash used in operating activities

Amortization of intangible assets

13 unchanged sentences

Cash acquired on merger with Adgero

Proceeds on sale of equipment

Net cash provided by investing activities

2 unchanged sentences

Warrants exercised for cash

Stock options exercised for cash

Proceeds from loan

8 unchanged sentences

Notes to Condensed Consolidated Interim Financial Statements

September 30, 2021

December 31, 2021

(expressed in US dollars and in thousands, except par value and per share amounts, unless otherwise noted)

29 unchanged sentences

These condensed consolidated interim financial statements have been prepared on a going concern basis, which assumes that the Company will continue its operations for the foreseeable future and contemplates the realization of assets and the settlement of liabilities in the normal course of business .

For the three months ended September 30, 2021, the Company reported a loss of $ 5,966 and a negative cash flow from operations of $ 5,073 .

The Company had an accumulated deficit of $ 119,655 and had cash and cash equivalents of $ 19,339 as of September 30, 2021.

For the six months ended December 31, 2021, the Company reported a loss of $ 11,859 and a negative cash flow from operations of $ 10,177 .

The Company had an accumulated deficit of $ 125,550 and had cash and cash equivalents of $ 14,064 as of December 31, 2021.

The Company is in the clinical stage and has not generated any revenues to-date.

17 unchanged sentences

The principal accounting policies applied in the preparation of these condensed consolidated interim financial statements are set out below and have been consistently applied to all periods presented.

Certain prior period balances have been reclassified to conform with the current year’s presentation.

Unaudited interim financial data

4 unchanged sentences

In the opinion of management, the unaudited condensed consolidated interim financial statements reflect all adjustments, consisting of normal and recurring adjustments, necessary for a fair presentation.

The results for three-months ended September 30, 2021 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2022, or for any other future annual or interim period.

The results for three and six months ended December 31, 2021 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2022, or for any other future annual or interim period.

Use of estimates

6 unchanged sentences

Income or loss per share is calculated based on the weighted average number of common shares outstanding.

For the three-month periods ended September 30, 2021, and 2020 diluted loss per share does not differ from basic loss per share since the effect of the Company’s warrants, stock options, and convertible preferred shares is anti-dilutive.

As of September 30, 2021, potential common shares of 19,152 (2020 – 11,858 ) related to outstanding common share warrants, 2,100 (2020 – 2,153 ) related to outstanding Series C preferred stock warrants, 6,809 (2020 – 6,544 ) related to stock options, nil (2020 – 162 ) relating to outstanding Series B convertible preferred shares, and 15,828 (2020 – 21,516 ) relating to outstanding Series C convertible preferred shares were excluded from the calculation of net loss per common share.

For the six-month periods ended December 31, 2021, and 2020 diluted loss per share does not differ from basic loss per share since the effect of the Company’s warrants, stock options, and convertible preferred shares is anti-dilutive.

As of December 31, 2021, potential common shares of 19,152 (2020 – 11,710 ) related to outstanding common share warrants, 2,100 (2020 – 2,153 ) related to outstanding Series C preferred stock warrants, 10,089 (2020 – 6,487 ) related to stock options, nil (2020 – 153 ) relating to outstanding Series B convertible preferred shares, and 14,789 (2020 – 20,349 ) relating to outstanding Series C convertible preferred shares were excluded from the calculation of net loss per common share.

Acquired in-process research and development expense

The Company acquired in-process research and development assets in connection with its Merger with Adgero (note 3).

As the acquired in-process research and development assets were deemed to have no current, or alternative future use, an expense of $ 16,094 was recognized in the condensed consolidated interim statements of operations for the three-month period ended September 30, 2020.

Property, equipment, and intangibles

2 unchanged sentences

Depreciation expense is recognized from the date the equipment was put into use.

Recent accounting pronouncements

During the three-months ended September 30, 2021, there have been no new, or existing recently issued, accounting pronouncements that are of significance, or potential significance, that impact the Company’s condensed consolidated interim financial statements.

Recently adopted accounting standards

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments.

ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity.

The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity.

ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments.

ASU 2020-06 is effective July 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on July 1, 2021.

The Company adopted ASU 2020-06 effective July 1, 2021.

The adoption of ASU 2020-06 did not have a material impact on the Company’s financial statements.

Recently issued accounting standards

Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s condensed consolidated interim financial statements.

As described in note 1, on August 19, 2020, the Company completed its Merger with Adgero in accordance with the terms of the Merger Agreement.

6 unchanged sentences

As part of the Merger, the Company acquired in-process research and development of $ 16,094 and other net assets of $ 631 .

The fair value of the acquired in-process research and development assets has been expensed as a charge in the condensed consolidated interim statements of operations for the three months ended September 30, 2020, as there is no alternative use for these assets.

The Company incurred approximately $ 1,554 of legal, consulting and other professional fees related to the Merger of which approximately $ 500 was incurred during the three months ended September 30, 2020.

The fair value of the acquired in-process research and development assets has been expensed as a charge in the condensed consolidated interim statements of operations for the six months ended December 31, 2020, as there is no alternative use for these assets.

The Company incurred approximately $ 1,554 of legal, consulting and other professional fees related to the Merger of which approximately $ 500 was incurred during the six months ended December 31, 2020.

The transaction costs have been classified as merger expenses in the condensed consolidated statement of operations.

5 unchanged sentences

Pursuant to the terms of the St.

Cloud Agreement, the Company is obligated to make certain payments under the agreement.

Cloud Agreement, the Company

is obligated to make certain payments under the agreement.

The future contingent amounts payable under that agreement are as follows:

4 unchanged sentences

With respect to the $300 and $700 potential milestone payments referenced above (each a “Milestone Payment”), if either such Milestone Payment becomes payable, and in the event the Company elects to pay either such Milestone Payment in shares of its common stock, the value of the common stock will equal the average of the closing price per share of the Company’s common stock over the twenty (20) trading days following the first public announcement of the applicable event described above.

As of September 30, 2021, the Company reviewed its estimates with respect to the planned timing of completion of the respective milestones and adjusted the liability accordingly.

As of December 31, 2021, the Company reviewed its estimates with respect to the planned timing of completion of the respective milestones and adjusted the liability accordingly.

(in thousands)

1 unchanged sentence

Change in fair value estimate

Balance – June 30, 2021

Change in fair value estimate

Balance – September 30, 2021

Balance – December 31, 2021

Clinical trial deposit

2 unchanged sentences

The Company is required to make certain payments under the agreement related to patient enrollment milestones.

For the three months ended September 30, 2021, the Company has recognized $ 1,952 (2020 – $nil) of expenses for this study in relation to clinical site initiation and patient enrollment.

For the three and six months ended December 31, 2021, the Company has recognized $ 1,978 (2020 – $ 750 ) and $ 3,930 (2020 – $ 1,250 ), respectively, of expenses for this study in relation to clinical site initiation and patient enrollment.

In relation to this study, the Company has made a deposit payment of $ 2,600 to the CRO.

It is anticipated that the deposit will be applied to future invoices, or refunded to the Company, beyond twelve months from September 30, 2021.

It is anticipated that the deposit will be applied to future invoices, or refunded to the Company, beyond twelve months from December 31, 2021.

The Company can terminate the study at any time.

Upon termination, the Company will be liable for any payments due to the effective date of the termination as well as any non-refundable costs incurred by the CRO prior to the date of termination.

Property, equipment and intangibles

Balance, June 30, 2020

Acquired in Adgero merger (note 3)

Laboratory equipment purchased

Disposal of furniture

Property, equipment and intangibles

Less accumulated depreciation

Balance, June 30, 2021

Less accumulated depreciation

Balance, September 30, 2021

Related party transactions

8 unchanged sentences

The Series A Preferred Stock has a stated value of $ 1.00 per share (the “Series A Stated Value”) and is not convertible into common stock.

The holder of the Series A Preferred Stock is entitled to dividends at the rate of 3 % of the Series A Stated Value per year, payable quarterly in arrears.

For the three-months ended September 30, 2021, and 2020 respectively,

the Company recorded $ 2 related to the dividend paid to Valent .

The holder of the Series A Preferred Stock is entitled to dividends at the rate of 3 % of the

Series A Stated Value per year, payable quarterly in arrears.

For the three months ended December 31, 2021 , and 2020 respectively, the Company recorded $ 2 related to the dividend paid to Valent , while for the six months ended December 31, 2021, and 2020 respectively, the Company recorded $ 4 related to the dividend paid to Valent .

The dividends have been recorded as a direct increase in accumulated deficit.

Related party payables

At September 30, 2021 there is an aggregate amount of $ 491 (June 30, 2021 - $ 561 ) payable to the Company’s officers and directors for fees, expenses, and accrued bonuses and other liabilities.

As of December 31, 2021, there is an aggregate amount of $ 543 (June 30, 2021 - $ 561 ) payable to the Company’s officers and directors for fees, expenses, and accrued bonuses and other liabilities.

Stockholders’ equity

4 unchanged sentences

Balance – June 30, 2021

Issued on exercise of Series C Agent Warrants

Conversion of Series C Preferred stock to common stock

Balance – June 30, 2021

Conversion of Series C Preferred stock to common stock

Balance – September 30, 2021

Balance – December 31, 2021

In connection with the Merger (note 3), in August 2020, the Company issued 25,028 shares of Series C Convertible Preferred Stock (the “Series C Preferred Stock”) in three separate closings of a private placement (Series C-1, C-2, and C-3).

2 unchanged sentences

Subject to ownership limitations, the owners of the Series C Preferred Stock are entitled to receive dividends, payable in shares of common stock at a rate of 10 %, 15 %, 20 % and 25 % of the number of shares of common stock issuable upon conversion of the Series C Preferred Stock, on the 12 th , 24 th , 36 th and 48 th month, anniversary of the initial closing of the private placement which occurred on August 19, 2020.

The Series C Preferred Stock dividends do not require declaration by the Board of Directors and are accrued annually as of the date the dividend is earned in an amount equal to fair value of the Company’s common stock on the dates the respective dividends are paid.

The Series C Preferred Stock dividends do not require declaration by the Board of Directors and are accrued annually as of the date the dividend is earned in an amount equal to the fair value of the Company’s common stock on the dates the respective dividends are paid.

The fair value of the Series C Preferred Stock dividend paid on August 19, 2021, was determined by multiplying the dividends paid of 1,698 by the Company’s closing share price on August 19, 2021, of $ 1.45 per share for a total fair value of $ 2,462 .

2 unchanged sentences

In addition, the Company issued 2,504 Series C Preferred Stock purchase warrants with a fair value of $ 3,287 to the placement agent (“Series C Agent Warrants”).

The Company’s Series C Preferred Stock outstanding, conversion shares, and dividends as of September 30, 2021, are as follows:

The Company’s Series C Preferred Stock outstanding, conversion shares, and dividends as of December 31, 2021, are as follows:

Dividend Shares (in thousands)

8 unchanged sentences

Because the Series C Convertible Preferred Stock was perpetual with no stated maturity date, and the conversions could occur any time from inception, the Company immediately recorded a non-cash deemed dividend of $ 3,181 related to the beneficial conversion feature arising from the issuance of Series C Convertible Preferred Stock.

This non-cash deemed dividend increased the Company’s net loss attributable to common stockholders and net loss per share for the three months ended September 30, 2020 .

This non-cash deemed dividend increased the Company’s net loss attributable to common stockholders and net loss per share for the six months ended December 31, 2020 .

The Series C Preferred Stock shall with respect to distributions of assets and rights upon the occurrence of a liquidation, rank (i) senior to the Company’s common stock and (ii) senior to any other class or series of capital stock of the Company hereafter created which does not expressly rank pari passu with, or senior to, the Series C Preferred Stock.

The Series C Preferred Stock shall be pari passu in liquidation to the Company’s Series A Preferred Stock.

The liquidation value of the Series C Preferred Stock at September 30, 2021, is the stated value of $ 18,382 (June 30, 2021 - $ 20,092 ).

The liquidation value of the Series C Preferred Stock at December 31, 2021, is the stated value of $ 17,177 (June 30, 2021 - $ 20,092 ).

Series B Preferred Stock

4 unchanged sentences

Dividends were payable solely by delivery of shares of common stock, in an amount for each holder equal to the aggregate dividend payable to such holder with respect to the shares of Series B Preferred Stock held by such holder divided by the conversion price.

Pursuant to the Series B Preferred Stock dividend, during the three-months ended September 30, 2021, the Company issued nil (2020 – 4 ) shares of common stock and recognized $nil (2020 - $ 5 ) as an increase in accumulated deficit.

In addition, the Company and the Series B Preferred Stock holders entered into a royalty agreement, pursuant to which the Company will pay the holders of the Series B Preferred Stock, in aggregate, a low, single-digit royalty based on their pro rata ownership of the Series B Preferred Stock on products sold directly by the Company or sold pursuant to a licensing or partnering arrangement.

Pursuant to the Series B Preferred Stock dividend, during the three months ended December 31, 2021, the Company issued nil (2020 – 3 ) shares of common stock and recognized $nil (2020 - $ 4 ) and during the six months ended December 31, 2021, the Company issued nil (2020 – 7 ) shares of common stock and recognized $nil (2020 - $ 9 ).

These dividends have been recognized as an increase in accumulated deficit.

In addition, the Company and the Series B Preferred Stockholders entered into a royalty agreement, pursuant to which the Company will pay the holders of the Series B Preferred Stock, in aggregate, a low, single-digit royalty based on their pro rata ownership of the Series B Preferred Stock on products sold directly by the Company or sold pursuant to a licensing or partnering arrangement.

Series A Preferred Stock

7 unchanged sentences

The Series A Preferred Stock shall be pari passu in liquidation to the Company’s Series C Preferred Stock.

The liquidation value of the Series A Preferred stock at September 30, 2021 is its stated value of $ 279 (June 30, 2021 - $ 279 ).

There was no change to the Series A Preferred stock for the three-months ended September 30, 2021 or 2020.

Stock issuances during the three months ended September 30, 2021

The liquidation value of the Series A Preferred stock at December 31, 2021 is its stated value of $ 279 (June 30, 2021 - $ 279 ).

There was no change to the Series A Preferred stock for the three or six months ended December 31, 2021 or 2020.

Stock issuances during the six months ended December 31, 2021

Registered direct financing

14 unchanged sentences

The term is based on the contractual term of the warrant .

During the three months ended September 30, 2021, all of the 4,800 PFW were exercised at $ 0.001 per PFW for proceeds of $ 4.8 .

During the six months ended December 31, 2021, all of the 4,800 PFW were exercised at $ 0.001 per PFW for proceeds of $ 4.8 .

Stock options

2017 Omnibus Incentive Plan

As subsequently approved by the Company’s stockholders at an annual meeting of stockholders on April 11, 2018, the Company’s board of directors approved adoption of the Company’s 2017 Omnibus Equity Incentive Plan (the “2017 Plan”).

As subsequently approved by the Company’s stockholders at an annual meeting of stockholders on April 11, 2018, the Company’s board of directors approved the adoption of the Company’s 2017 Omnibus Equity Incentive Plan (the “2017 Plan”), as amended.

The board of directors also approved a form of Performance Stock Unit Award Agreement to be used in connection with grants of performance stock units (“PSUs”) under the 2017 Plan.

1 unchanged sentence

Under the 2017 Plan, 13,000 shares of Company common stock are currently reserved for issuance, less the number of shares of common stock issued under the Del Mar (BC) 2013 Amended and Restated Stock Option Plan (the “Legacy Plan”), or that are subject to grants of stock options made, or that may be made, under the Legacy Plan, or that have been previously exercised.

A total of 129 shares of common stock have been issued under the Legacy Plan and/or are subject to outstanding stock options granted under the Legacy Plan, and a total of 6,680 shares of common stock have been issued under the 2017 Plan and/or are subject to outstanding stock options granted under the 2017 Plan leaving 5,997 shares of common stock available at September 30, 2021 for issuance under the 2017 Plan if all such options under the Legacy Plan were exercised, net of stock options previously exercised.

A total of 129 shares of common stock have been issued under the Legacy Plan and/or are subject to outstanding stock options granted under the Legacy Plan, and a total of 9,960 shares of common stock have been issued under the 2017 Plan and/or are subject to outstanding stock options granted under the 2017 Plan leaving 2,717 shares of common stock available at December 31, 2021 for issuance under the 2017 Plan if all such options under the Legacy Plan were exercised, net of stock options previously exercised.

The maximum number of shares of Company common stock with respect to which any one participant may be granted awards during any calendar year is 8 % of the Company’s fully diluted shares of common stock on the date of grant (excluding the number of shares of common stock issued under the 2017 Plan and/or the Legacy Plan or subject to outstanding awards granted under the 2017 Plan and/or the Legacy Plan).

No award will be granted under the 2017 Plan on, or after, July 7, 2027.

During the three-months ended September 30, 2021, a total of 435 options to purchase shares of common stock were granted to directors of the Company.

The options to purchase shares of common stock of the Company have an exercise price of $ 1.24 per share.

They vest in 12 equal monthly installments beginning on October 22, 2021.

During the six months ended December 31, 2021, a total of 3,954 stock options to purchase shares of common stock were granted to directors and an officer of the Company.

Of the total stock options granted, 435 have an exercise price of $

1.24 per share and vest in 12 equal monthly installments beginning on October 22, 2021.

The remaining 3,519 stock options granted have an exercise price of $ 0.96 per share and vest as to 25% on November 8, 2022 , with the remaining portion vesting in equal monthly installments over a period of 36 months commencing on December 8, 2022 .

All of the options to purchase shares of common stock granted have a 10 -year term and are subject to cancellation upon the grantees’ termination of service for the Company, with certain exceptions .

In addition, 2,715 stock options previously issued to an officer of the Company were modified such that 754 stock options that were to vest over the period December 15, 2022, to September 15, 2023, now vest on a contingent basis dependent on the achievement of certain strategic partnership initiatives.

In relation to the termination of an officer of the Company, the Company has recognized $31 in stock option expense due to the acceleration of vesting of certain stock options granted to that officer.

The following table sets forth changes in stock options outstanding under all plans:

2 unchanged sentences

Balance – June 30, 2021

Balance – September 30, 2021

The following table summarizes stock options outstanding and exercisable under all plans at September 30, 2021:

Balance – December 31, 2021

The following table summarizes stock options outstanding and exercisable under all plans at December 31, 2021:

Exercise price

Outstanding at

September 30, 2021

December 31, 2021

(in thousands)

2 unchanged sentences

exercisable at

September 30, 2021

December 31, 2021

(in thousands)

1 unchanged sentence

The exercise price of these options shown in the above table have been converted to US$ 15.75 per share using the period ending closing exchange rate.

Stock options granted during the three months ended September 30, 2021, have been valued using a Black-Scholes pricing model with the following assumptions:

September 30,

Stock options granted during the six months ended December 31, 2021, have been valued using a Black-Scholes pricing model with the following assumptions:

Dividend rate

7 unchanged sentences

Three months ended

September 30,

Six months ended

Research and development

General and administrative

All of the stock option expense for the periods ended September 30, 2021, and 2020 has been recognized as additional paid in capital.

The aggregate intrinsic value of stock options outstanding at September 30, 2021 was $ 235 (2020 - $ 977 ) and the aggregate intrinsic value of stock options exercisable at September 30, 2021 was $ 197 (2020 - $ 447 ).

As of September 30, 2021, there was $ 2,597 in unrecognized compensation expense that will be recognized over the next 2.58 years.

All of the stock option expense for the periods ended December 31, 2021, and 2020, has been recognized as additional paid in capital.

The aggregate intrinsic value of stock options outstanding at December 31, 2021 was $nil (2020 - $ 789 ) and the aggregate intrinsic value of stock options exercisable at December 31, 2021 was $nil (2020 - $ 572 ).

As of December 31, 2021, there was $ 3,938 in unrecognized compensation expense that will be recognized over the next 3.86 years.

The following table sets forth changes in unvested stock options under all plans:

1 unchanged sentence

Unvested at June 30, 2021

Unvested at September 30, 2021

The aggregate intrinsic value of unvested stock options at September 30, 2021 was $ 38 (2020 - $ 531 ).

Unvested at December 31, 2021

The aggregate intrinsic value of unvested stock options at December 31, 2021 was $nil (2020 - $ 218 ).

The unvested stock options have a remaining weighted average contractual term of 9.36 years (2020 – 9.64).

9 unchanged sentences

Expiry of Adgero replacement warrants

Balance – September 30, 2021

The following table summarizes the Company’s outstanding common stock warrants as of September 30, 2021:

Balance – December 31, 2021

The following table summarizes the Company’s outstanding common stock warrants as of December 31, 2021:

Description of warrants

54 unchanged sentences

Warrants Exercised

September 30, 2021

December 31, 2021

Issuance of Preferred Series C-1 Agent Warrants

1 unchanged sentence

Issuance of Preferred Series C-3 Agent Warrants

The following table summarizes the Company’s outstanding Series C Agent Warrants as of September 30, 2021:

The following table summarizes the Company’s outstanding Series C Agent Warrants as of December 31, 2021:

Series C Agent Warrants

1 unchanged sentence

The Company incurred the following non-cash investing and financing transactions (in thousands):

Three months ended

September 30,

Six months ended

Series C Preferred Stock common stock dividend (note 6)

16 unchanged sentences

Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy.

As at September 30, 2021, the Company’s milestone payment liability was measured using level 3 inputs (note 3).

September 30, 2021

As at December 31, 2021, the Company’s milestone payment liability was measured using level 3 inputs (note 3).

December 31, 2021

Milestone payment liability

2 unchanged sentences

Subsequent events

Series C Preferred Stock

Subsequent to September 30, 2021, 0.65 shares of Series C-1 Preferred Stock were converted into 560 shares of common stock.

Stock options

On November 8, 2021, the Company issued 3,519 stock options to one of its officers.

The stock options are exercisable at $ 0.96 per share until November 8, 2031 , and vest 25 % on November 8, 2022 , with the remainder to vest in equal installments over the subsequent 36 months commencing on December 8, 2022.

In addition, 2,715 stock options previously issued to an officer of the Company were modified such that 754 stock options that were to vest over the period December 15, 2022 , to September 15, 2023 , now vest on a contingent basis dependent on the achievement of certain strategic partnership initiatives.

The Company has evaluated its subsequent events from September 30, 2021, through the date these condensed consolidated interim financial statements were issued and has determined that there are no subsequent events requiring disclosure in these condensed consolidated interim financial statements other than the items noted above.

Subsequent to December 31, 2021, 50 shares of Series C-3 Preferred Stock were converted into 43 shares of common stock, 756 common stock warrants exercisable at $ 3.18 per share expired, 243 stock options exercisable at a weighted average exercise price of $ 1.57 per share were forfeited, and 10 stock options with a weighted average exercise price of $ 19.89 per share expired.

The Company has evaluated its subsequent events from December 31, 2021, through the date these condensed consolidated interim financial statements were issued and has determined that there are no subsequent events requiring disclosure in these condensed consolidated interim financial statements other than the items noted above.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements