SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
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6 Months Ended |
Jun. 30, 2020 |
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| Accounting Policies [Abstract] |
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| Schedule of Accrued Liabilities |
Accrued expenses consisted of the following: | | | | | | | | | | | | June 30,
2020
(Unaudited) | | December 31, 2019 | Accrued compensation and benefits | | $ | 1,105,521 |
| | $ | 574,332 |
| Accrued clinical expenses | | 1,995,441 |
| | 4,143,269 |
| Other accrued expenses | | 183,133 |
| | 30,150 |
| Total | | $ | 3,284,095 |
| | $ | 4,747,751 |
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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 Unsecured Convertible Note and the Additional Convertible Note on their respective dates of issuance as of March 8, 2019 and January 10, 2020, respectively, and at the end of the period as of June 30, 2020.
| | | | | | | | | | | | | | Derivative Liability | | | June 30, | January 10, | March 8, | | | 2020 | 2020 | 2019 | Expected dividend yield | | | | | Discount rate | | 24.5 | % | 21.6 | % | 29.3 | % | Expected stock price volatility | | 76.7 | % | 103.9 | % | 101.1 | % | Risk-free interest rate | | 0.2 | % | 1.6 | % | 2.5 | % | Expected term | | 1.1 years |
| 2 years |
| 2 years |
| Price of the underlying common stock | | $ | 0.57 |
| $ | 0.65 |
| $ | 1.99 |
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The table below summarizes the valuation inputs into the MCS model for the Short-Term Warrants and Long-Term Warrants at their respective dates of issuance.
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| Short-Term Warrants | Long-Term Warrants |
| March 18, 2019 | March 18, 2019 | May 17, 2019 | Conversion price | $ | 4.00 |
| $ | 2.56 |
| $ | 2.13 |
| Expected stock price volatility | 122.0 | % | 85.2 | % | 83.4 | % | Risk-free interest rate | 2.5 | % | 2.2 | % | 2.2 | % | Expected term | 1 year |
| 5 years |
| 5 years |
| Price of the underlying common stock | $ | 2.48 |
| $ | 2.48 |
| $ | 1.58 |
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The table below summarizes the range of valuation inputs into the Black-Scholes model for the Exchange Warrants on their date of issuance and immediately prior to the exchange.
| | | | | | | | | Exchange Warrants | | May 1, 2019 | January 6, 2020 | Conversion price | $ 2.13 - $ 2.53 |
| $ | 2.13 |
| Expected stock price volatility | 84.1 | % | 87.3 | % | Risk-free interest rate | 2.2 | % | 1.7 | % | Expected term | 5 - 5.5 years |
| 4.9 years |
| Price of the underlying common stock | $ | 1.54 |
| $ | 0.58 |
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The table below summarizes the range of valuation inputs into the Black-Scholes model for the warrant liabilities as of February 11, 2020, immediately prior to the reduction in exercise price pursuant to the Offer to Amend and Exercise. | | | | | | | | | Short-Term Warrants | Long-Term Warrants | | February 11, 2020 | Conversion price | $ | 4.00 |
| $2.13 - $2.56 |
| Expected stock price volatility | 97.1 | % | 87.9% - 89.2% |
| Risk-free interest rate | 1.6 | % | 1.7 | % | Expected term | 7 months |
| 4 years 2 months |
| Price of the underlying common stock | $ | 0.79 |
| $ | 0.79 |
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The table below summarizes the inputs for the Black Scholes option pricing model on the date of issuance.
| | | | | | May 4, 2020 (Unaudited) | Conversion price | $ | 0.5894 |
| Expected stock price volatility | 73.7 | % | Risk-free interest rate | 0.4 | % | Expected term | 5 | years | Price of the underlying common stock | $ | 0.50 |
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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 June 30, 2020 and December 31, 2019, respectively.
| | | | | | | | | | | | | | | June 30, 2020 | | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | Derivative liability | $ | — |
| $ | — |
| $ | 247,000 |
| $ | 247,000 |
| Warrant liabilities | — |
| — |
| — |
| — |
| Total liabilities at fair value | $ | — |
| $ | — |
| $ | 247,000 |
| $ | 247,000 |
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| | | | | | | | | | | | | | | December 31, 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 | $ | — |
| $ | — |
| $ | 408,000 |
| $ | 408,000 |
| Warrant liabilities | — |
| — |
| 2,637,500 |
| 2,637,500 |
| Total liabilities at fair value | $ | — |
| $ | — |
| $ | 3,045,500 |
| $ | 3,045,500 |
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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.
| | | | | | Six Months Ended June 30, 2020 | Beginning balance as of December 31, 2019 | $ | 3,045,500 |
| Issuance of derivative liability (the Additional Note) | 370,000 |
| Exchange of the April Warrants | (380,600 | ) | Change in fair value of warrant liabilities | (1,198,200 | ) | Change in fair value of derivative liability | (531,000 | ) | Exercise of the Short-Term Warrants and Long-Term Warrants | (1,058,700 | ) | Ending balance as of June 30, 2020 | $ | 247,000 |
| | | 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 end of the period | $ | 531,000 |
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| Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share |
The potentially dilutive securities consisted of the following: | | | | | | | | | | | Six Months Ended
June 30, | | | | 2020 | | 2019 | | Options outstanding under the Private Innovate Plan | | 6,028,781 |
| | 6,240,792 |
| | Options outstanding under the Omnibus Plan | | 5,651,726 |
| | 1,266,546 |
| | Options outstanding under the Option Grant Agreements granted to RDD Employees | | 1,014,173 |
| | — |
| | Warrants issued at a weighted-average exercise price of $55.31 | | 154,403 |
| | 154,403 |
| | Warrants issued at an exercise price of $2.54 | | 2,233 |
| | 349,555 |
| | Warrants issued at an exercise price of $3.18 | | 113,980 |
| | 1,410,358 |
| | Warrants issued at an exercise price of $0.5894 | | 40,990,200 |
| | — |
| | 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 | | 53,955,496 |
| | 24,542,552 |
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