Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Deficit (Tables)

v3.20.2
Stockholders' Deficit (Tables)
3 Months Ended
Jun. 30, 2020
Schedule of Reserved Shares

At June 30, 2020, shares were reserved in connection with the following:

 

Exercise of issued and future grants of stock options     3,674,624  
Exercise of stock warrants     6,543,205  
Conversion of Series Alpha preferred stock     6,247,689  
Total     16,465,518  

Summary of Stock Option Activity

The following represents a summary of the options granted to employees and non-employees that are outstanding at June 30, 2020, and changes during the period then ended:

 

    Shares    

Weighted–

Average

Exercise Price

    Range of Exercise Price     Weighted–
Average
Remaining
Life (Years)
 
Total outstanding – March 31, 2020         $                  
Legacy Ritter options     95,124       92.80     $ 5.75—$1,465.75       1.87  
Granted     3,579,500       5.10     $ 4.97—$5.13       9.94  
Expired                            
Forfeited                            
Total outstanding – June 30, 2020     3,674,624     $ 7.37     $ 4.97—$1,465.75       9.73  
Exercisable (vested)     110,124     $ 80.84     $ 4.97—$1,465.75       2.97  
Non-Exercisable (non-vested)     3,564,500     $ 5.10     $ 4.97—$5.13       9.94  

Schedule of Assumptions Used in Black-Scholes Option-Pricing Method

The material factors incorporated in the Black-Scholes model in estimating the fair value of the options granted for the periods presented were as follows:

 

   

For the three months

ended

June 30, 2020

 
Expected dividend yield     0.00 %
Expected stock-price volatility     102 %
Risk-free interest rate     0.33% — 0.59 %
Expected average term of options     6.0  
Stock price   $ 4.97 — 5.13  

Schedule of Share-based Compensation Expense

The Company recorded share-based compensation expense and classified it in the condensed consolidated statements of operations as follows:

 

    For the three months ended June 30,  
    2020     2019  
General and administrative   $ 272,978     $  
Research and development     85,647        
Total   $ 358,625     $  

Compensatory Warrant Activity [Member]  
Summary of Warrant Activity

The following table summarizes the compensatory warrant activity for the three months ended June 30, 2020:

 

    Common Stock  
    Shares    

Weighted–

Average

Exercise Price

    Range of Exercise Price     Weighted–
Average
Remaining
Life (Years)
 
Total outstanding – March 31, 2020         $                  
Series C preferred stock warrants exchanged for common stock warrants upon reverse recapitalization     668,024       2.34                  
Legacy Ritter warrants                            
Granted     811,431       1.11                  
Expired                            
Forfeited                            
Total outstanding – June 30, 2020     1,479,455     $ 1.67                  
Exercisable     660,832     $ 2.34       $2.07 —$2.54       3.82  
Non-Exercisable     818,623     $ 1.12       $1.11 —$2.54       4.91  

Non-Compensatory Warrant Activity [Member]  
Summary of Warrant Activity

The following table summarizes the noncompensatory equity classified warrant activity for the three months ended June 30, 2020:

 

    Common Stock  
    Shares    

Weighted–

Average

Exercise Price

    Range of Exercise Price     Weighted–
Average
Remaining
Life (Years)
 
Total outstanding – March 31, 2020         $                  
Legacy Ritter warrants     81,455       54.04                  
Granted     270,478       1.11                  
Expired     (1,673 )     1,562.50                  
Forfeited                            
Total outstanding – June 30, 2020     350,260     $ 1.08                  
Exercisable     350,260     $ 5.96       $1.11 – $2,325.00       4.31  
Non-Exercisable         $