SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
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9 Months Ended |
Sep. 30, 2019 |
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| Accounting Policies [Abstract] |
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| Schedule of Accrued Liabilities |
Accrued expenses consisted of the following: | | | | | | | | | | | | September 30, 2019 | | December 31, 2018 | Accrued compensation and benefits | | $ | 542,214 |
| | $ | 697,334 |
| Accrued clinical expenses | | 1,268,132 |
| | 58,151 |
| Other accrued expenses | | 52,879 |
| | 70,842 |
| Total | | $ | 1,863,225 |
| | $ | 826,327 |
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| Fair Value Measurement Inputs and Valuation Techniques |
The table below summarizes the valuation inputs into the MCS model for the derivative liability associated with the Senior Convertible Note as of December 31, 2018 and for the derivative liability associated with the Unsecured Convertible Note as of March 8, 2019 and September 30, 2019.
| | | | | | | | | | | | | | Derivative Liability | | | September 30, | March 8, | December 31, | | | 2019 | 2019 | 2018 | Expected dividend yield | | | | | Discount rate | | 29.5 | % | 29.3 | % | 13.6 | % | Expected stock price volatility | | 108.3 | % | 101.1 | % | 105.6 | % | Risk-free interest rate | | 1.7 | % | 2.5 | % | 2.5 | % | Expected term | | 17 months |
| 24 months |
| 21 months |
| Price of the underlying common stock | | $ | 1.07 |
| $ | 1.99 |
| $ | 2.31 |
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The table below summarizes the valuation inputs into the MCS model for the warrant liabilities at their respective dates of issuance.
| | | | | | | | | | | | | | | Short-Term Warrants | Long-Term Warrants | | March 18, 2019 | March 18, 2019 | May 1, 2019 | May 17, 2019 | Conversion price | $ | 4.00 |
| $ | 2.56 |
| $ 2.13 - $ 2.53 |
| $ | 2.13 |
| Expected stock price volatility | 122.0 | % | 85.2 | % | 84.1 | % | 83.4 | % | Risk-free interest rate | 2.5 | % | 2.2 | % | 2.2 | % | 2.2 | % | Expected term | 1 year |
| 5 years |
| 5 - 5.5 years |
| 5 years |
| Price of the underlying common stock | $ | 2.48 |
| $ | 2.48 |
| $ | 1.54 |
| $ | 1.58 |
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The table below summarizes the range of valuation inputs into the Black-Scholes model for the warrant liabilities as of September 30, 2019. | | | | | | | | Short-Term Warrants | Long-Term Warrants | | September 30, 2019 | Conversion price | $ | 4.00 |
| $2.13 - $2.56 |
| Expected stock price volatility | 77.9 | % | 83.1% - 83.5% |
| Risk-free interest rate | 1.8 | % | 1.6 | % | Expected term | 6 months |
| 4.5 - 5.1 years |
| Price of the underlying common stock | $ | 1.07 |
| 1.07 |
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| Fair Value, Assets Measured on Recurring and Nonrecurring Basis |
The following table summarizes the fair value hierarchy of financial liabilities measured at fair value as of September 30, 2019 and December 31, 2018.
| | | | | | | | | | | | | | | September 30, 2019 | | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | Derivative liability | $ | — |
| $ | — |
| $ | 770,000 |
| $ | 770,000 |
| Warrant liabilities | — |
| — |
| 3,188,300 |
| 3,188,300 |
| Total liabilities at fair value | $ | — |
| $ | — |
| $ | 3,958,300 |
| $ | 3,958,300 |
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| | | | | | | | | | | | | | | December 31, 2018 | | Quoted Prices in Active Markets for Identical Assets
(Level 1) | Significant Other Observable Inputs
(Level 2) | Significant Unobservable Inputs
(Level 3) | Total | Derivative liability | $ | — |
| $ | — |
| $ | 370,000 |
| $ | 370,000 |
| Warrant liabilities | — |
| — |
| — |
| — |
| Total liabilities at fair value | $ | — |
| $ | — |
| $ | 370,000 |
| $ | 370,000 |
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| Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation |
The following table summarizes the changes in fair value of the derivative liability and warrant liabilities classified in Level 3. Gains and losses reported in this table include changes in fair value that are attributable to unobservable inputs.
| | | | | | | Nine Months Ended September 30, 2019 | | Beginning balance as of December 31, 2018 | $ | 370,000 |
| | Issuance of warrant liabilities | | 3,330,000 |
| | Extinguishment of derivative liability (the Senior Convertible Note) | | (370,000 | ) | | Issuance of derivative liability (the Unsecured Convertible Note) | | 1,281,000 |
| | Change in fair value of warrant liabilities | | (141,700 | ) | | Change in fair value of derivative liability | | (511,000 | ) | | Ending balance as of September 30, 2019 | $ | 3,958,300 |
| | | | The amount of total gain for the period included in earnings attributable to the change in unrealized gains relating to the fair value liabilities still held at the reporting date | $ | 652,700 |
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| Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share |
The potentially dilutive securities consisted of the following: | | | | | | | | | | Nine Months Ended
September 30, | | | 2019 | | 2018 | Options outstanding under the Private Innovate Plan | | 6,240,792 |
| | 6,428,577 |
| Options outstanding under the Amended Omnibus Plan | | 2,295,921 |
| | 1,202,843 |
| Warrants issued at a weighted-average exercise price of $55.31 | | 154,403 |
| | 154,403 |
| Warrants issued at an exercise price of $2.54 | | 349,555 |
| | 349,555 |
| Warrants issued at an exercise price of $3.18 | | 1,410,358 |
| | 1,410,358 |
| Short-term warrants issued at an exercise price of $4.00 | | 4,181,068 |
| | — |
| Long-term warrants issued at a weighted-average exercise price of $2.24 | | 10,939,830 |
| | — |
| Total | | 25,571,927 |
| | 9,545,736 |
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