NOTE 4 – COMMON STOCK TRANSACTIONS

A summary of the Company’s compensatory stock activity and related weighted average grant date fair value information for the three and six months ended October 31, 2022, and 2021 is as follows: 

During the six months ended October 31, 2020, three non-employee members of the Board were issued 1,334 shares of common stock pursuant to their Director Letter Agreements (“DLAs”) in respect of their service during that year. The shares were fully vested upon issuance. The Company recorded a non-cash expense of $0 and $971 for the three months ended October 31, 2022, and 2021, respectively, and $0 and $4,342 for the six months ended October 31, 2022, and 2021, respectively. There were zero unvested shares remaining related to such DLAs as of October 31, 2022.

In September 2020, a consultant was issued 333 shares of common stock in respect of his services as the Chairman of the Company’s Medical and Scientific Advisory Board with vesting subject to the consultant continuing to provide services to the Company. The Company recorded a non-cash consulting expense in the amount of $0 and $1,417 for the three months ended October 31, 2022, and 2021, respectively, and $0 and $3,542 for the six months ended October 31, 2022, and 2021, respectively. There were zero unvested shares remaining related to his compensation arrangement as of October 31, 2022, and 2021, respectively.

In January 2021, the Company awarded 4,400 shares of common stock to the executive officers of the Company as part of their compensation agreements for 2021. These shares vest monthly over a twelve-month period and are subject to the executive officers continuing to provide service under their compensation agreements. During the three months ended October 31, 2022, and 2021, the Company recorded a non-cash compensation expense in the amount of $0 and $11,055, respectively, and $0 and $22,110 for the six months ended October 31, 2022, and 2021, respectively. There were zero and 733 unvested shares as of October 31, 2022, and 2021, respectively.

During the six months ended October 31, 2021, three non-employee members of the Board were issued 1,336 shares of common stock pursuant to their DLAs in respect of their service during that year. The shares were fully vested upon issuance. The Company recorded a non-cash expense of $0 and $5,851 for the three months ended October 31, 2022, and 2021, respectively, and $0 and $10,736 for the six months ended October 31, 2022, and 2021, respectively. There were zero unvested shares remaining related to such DLAs as of October 31, 2022, and 2021, respectively.

During the six months ended October 31, 2021, two consultants were issued 334 shares of common stock pursuant to their consulting agreements with the Company. The shares vest monthly over a twelve-month period and are subject to the consultants continuing to provide services under their consulting agreements. The Company recorded a non-cash consulting expense in the amount of $0 and $2,442 for the three months ended October 31, 2022, and 2021, respectively, and $0 and $4,062 for the six months ended October 31, 2022, and 2021, respectively. There were zero and 167 unvested shares remaining related to these consulting agreements as of October 31, 2022, and 2021, respectively.

In September 2021, a consultant was issued 334 shares of common stock in respect of his services as the Chairman of the Company’s Medical and Scientific Advisory Board with vesting subject to the consultant continuing to provide services to the Company. The Company recorded a non-cash consulting expense in the amount of $0 and $88 for the three months ended October 31, 2022, and 2021, respectively, and $0 and $88 for the six months ended October 31, 2022, and 2021, respectively. There were zero unvested shares remaining related to his compensation arrangement as of October 31, 2022, and 2021, respectively.

In January 2022, the Company awarded 4,400 shares of common stock to the executive officers of the Company as part of their compensation agreements for 2022. These shares vest monthly over a twelve-month period and are subject to the executive officers continuing to provide service under their compensation agreements. During the three months ended October 31, 2022, and 2021, the Company recorded a non-cash compensation expense in the amount of $3,917 and $0, respectively, and $6,667 and $0 for the six months ended October 31, 2022, and 2021, respectively. There were 267 and zero unvested shares as of October 31, 2022, and 2021, respectively. Two of the executive officers terminated their services in October 2022 and pursuant to their separation agreements the shares were fully vested.

During the six months ended October 31, 2022, three non-employee members of the Board were issued 1,002 shares of common stock pursuant to their DLAs in respect of their service during that year. The shares were fully vested upon issuance. The Company recorded a non-cash expense of $0 and $0 for the three months ended October 31, 2022, and 2021, respectively, and $2,278 for the six months ended October 31, 2022, and 2021, respectively. There were zero unvested shares remaining related to such DLAs as of October 31, 2022, and 2021, respectively.

All shares were issued without registration under the Securities Act of 1933 as amended (“Securities Act”) in reliance upon the exemption afforded by Section 4(a)(2) of the Securities Act.

On April 9, 2021, the Third S-3 (“Third S-3”) was declared effective by the Commission for a public offering of up to $100 million on a “shelf offering” basis. During August 2021, the Company sold and issued approximately 19.1 million shares of common stock, at prices ranging from $4.25 to $5.00 per share. Net of underwriting discounts, legal, accounting, and other offering expenses, the Company received approximately $87.4 million from the sale of these shares and the exercise of approximately 2.5 million warrant shares.

On August 9, 2021, the Company entered into an underwriting agreement to offer and sell shares of common stock, pre-funded warrants to purchase common stock and warrants to purchase common stock in a public offering (“First Offering”). The gross proceeds of the First Offering were $15 million, before deducting underwriting discounts, commissions, and offering expenses.

In August 2021, the Company received twenty-seven (27) cash exercise notices relating to the common warrants with respect to the First Offering totaling 2,522,387 warrant shares (“Warrant Exercises”). The Company received approximately $10,720,000 and issued 2,522,387 shares of common stock as a result of the exercise notices.

On August 19, 2021, the Company entered into a securities purchase agreement (“Securities Purchase Agreement”) with certain institutional investors (“Purchasers”) pursuant to which the Company agreed to sell in a registered direct offering (“Registered Direct Offering”), shares of the Company’s common stock and pre-funded warrants to purchase shares of common stock. Further, pursuant to the Securities Purchase Agreement, in a concurrent private placement (together with the Registered Direct Offering, “Second Offering”), the Company also agreed to issue to the Purchasers unregistered warrants (“Series A Warrants”) to purchase shares of common stock. The Company received gross proceeds from the Second Offering, before deducting placement agent fees and estimated offering expenses payable by the Company, of approximately $70 million. On November 17, 2021, the Company’s Registration Statement on Form S-3 registering the resale of the common stock underlying the Series A Warrants was declared effective by the U.S. Securities and Exchange Commission (“Commission”).

A summary of the Company’s non-vested restricted stock activity and related weighted average grant date fair value information for the last six months ended October 31, 2022, are as follows: