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 nine months ended January 31, 2023, and 2022 is as follows: 

During the nine months ended January 31, 2021, 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 $0 for the three months ended January 31, 2023, and 2022, respectively, and $0 and $4,342 for the nine months ended January 31, 2023, and 2022, respectively. There were zero unvested shares remaining related to such DLAs as of January 31, 2023.

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 $0 for the three months ended January 31, 2023, and 2022, respectively, and $0 and $3,542 for the nine months ended January 31, 2023, and 2022, respectively. There were zero unvested shares remaining related to his compensation arrangement as of January 31, 2023, and 2022, 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. During the three months ended January 31, 2023, and 2022, the Company recorded a non-cash compensation expense in the amount of $0 and $7,370, respectively, and $0 and $29,480 for the nine months ended January 31, 2023, and 2022, respectively. There were zero unvested shares as of January 31, 2023, and 2022, respectively.

During the nine months ended January 31, 2022, 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 $6,056 for the three months ended January 31, 2023, and 2022, respectively, and $0 and $16,792 for the nine months ended January 31, 2023, and 2022, respectively. There were zero unvested shares remaining related to such DLAs as of January 31, 2023, and 2022, respectively.

During the nine months ended January 31, 2022, 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 January 31, 2023, and 2022, respectively, and $0 and $6,504 for the nine months ended January 31, 2023, and 2022, respectively. There were zero and 84 unvested shares remaining related to these consulting agreements as of January 31, 2023, and 2022, 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 $265 for the three months ended January 31, 2023, and 2022, respectively, and $0 and $353 for the nine months ended January 31, 2023, and 2022, respectively. There were zero unvested shares remaining related to his compensation arrangement as of January 31, 2023, and 2022, 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. During the three months ended January 31, 2023, and 2022, the Company recorded a non-cash compensation expense in the amount of $666 and $916, respectively, and $7,333 and $916 for the nine months ended January 31, 2023, and 2022, respectively. There were zero unvested shares as of January 31, 2023, and 2022, 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 nine months ended January 31, 2023, 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 January 31, 2023, and 2022, respectively, and $2,278 and $0 for the nine months ended January 31, 2023, and 2022, respectively. There were zero unvested shares remaining related to such DLAs as of January 31, 2023, and 2022, 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 14, 2021, the Company’s Registration Statement on Form S-3 (File No. 333-255044) (“Third S-3”) was declared effective by the Commission, registering up to $100 million of the Company’s securities. 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 nine months ended January 31, 2023, are as follows: