SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
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3 Months Ended |
Mar. 31, 2021 |
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| Accounting Policies [Abstract] |
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| Schedule of Accrued Liabilities |
Accrued expenses consisted of the following: | | | | | | | | | | | | | | | | | March 31,
2021
(Unaudited) | | December 31,
2020 | | Accrued compensation and benefits | | $ | 697,376 | | | $ | 1,111,028 | | | Accrued clinical expenses | | 3,764,663 | | | 4,042,277 | | | Other accrued expenses | | 104,281 | | | 136,876 | | | Total | | $ | 4,566,320 | | | $ | 5,290,181 | |
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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 Note on their respective dates of issuance as of March 8, 2019 and January 10, 2020, respectively. | | | | | | | | | | | | | | Derivative Liability | | | January 10, | March 8, | | | 2020 | 2019 | |
| Discount rate | | 21.6% | 29.3% | | Expected stock price volatility | | 103.9% | 101.1% | | Risk-free interest rate | | 1.6% | 2.5% | | Expected term | | 2 years | 2 years | | Price of the underlying common stock | | $0.65 | $1.99 |
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 |
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 | |
| | | | | | | May 4, 2020 | | 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 December 31, 2020. | | | | | | | | | | | | | | | | December 31, 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 | $ | — | | $ | — | | $ | 7,000 | | $ | 7,000 | | | Warrant liabilities | — | | — | | — | | — | | | Total liabilities at fair value | $ | — | | $ | — | | $ | 7,000 | | $ | 7,000 | |
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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 classified in Level 3 during the three months ended March 31, 2021. Gains and losses reported in this table include changes in fair value that are attributable to unobservable inputs.
| | | | | | | Three Months Ended
March 31, 2021 | | Beginning balance as of December 31, 2020 | $ | 7,000 | | |
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| Change in fair value of derivative liability | (7,000) | | |
| Ending balance as of March 31, 2021 | $ | — | | | | | 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 | $ | — | | | |
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| Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share |
The potentially dilutive securities consisted of the following: | | | | | | | | | | | | | | | | | | | | | Three Months Ended
March 31, | | | | | 2021 | | 2020 | | | Options outstanding under the Private Innovate Plan | | 6,000,518 | | | 6,028,781 | | | | Options outstanding under the Omnibus Plan | | 13,601,796 | | | 2,717,870 | | | | Options outstanding under the Option Grant Agreements granted to RDD Employees | | 985,807 | | | — | | | 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 | | 26,822,849 | | | — | | | 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 $2.30 | | — | | | 6,405,644 | | | | Total | | 47,681,586 | | | 21,247,679 | | |
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