Transition report pursuant to Rule 13a-10 or 15d-10

Stockholders' Equity (Deficit) (Tables)

v3.21.1
Stockholders' Equity (Deficit) (Tables)
9 Months Ended
Dec. 31, 2020
Schedule of Reserved Shares

At December 31, 2020, shares were reserved in connection with the following:

 

Exercise of issued and future grants of stock options     4,011,356  
Exercise of stock warrants     11,222,590  
Conversion of Series Alpha preferred stock     243,418  
Total     15,477,364  

Summary of Stock Option Activity

The following represents a summary of the options granted to employees and non-employee service providers that are outstanding at December 31, 2020, and changes during the nine months 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       1.39  
Granted     3,917,500       4.97     $ 3.52—$5.13       9.46  
Expired     (1,268 )     34.54     $ 15.00 — 562.50          
Forfeited                            
Total outstanding – December 31, 2020     4,011,356     $ 7.05     $ 3.52—$1,465.75       9.29  
Exercisable (vested)     108,856     $ 81.38     $ 3.52—$1,465.75       2.50  
Non-Exercisable (non-vested)     3,902,500     $ 4.97     $ 3.52—$5.13       9.47  

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 nine

months

ended

December 31, 2020

 
Expected dividend yield     0.00 %
Expected stock-price volatility     102 %
Risk-free interest rate     0.33% — 0.65 %
Expected average term of options (in years)     6.0  
Stock price   $ 3.52 — 5.13  

Schedule of Share-based Compensation Expense

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

 

   

For the nine months

ended

December 31, 2020

   

For the year

ended

March 31, 2020

 
General and administrative   $ 2,388,380     $ 4,830  
Research and development     412,471       3,036  
Total   $ 2,800,851     $ 7,866  

Compensatory Warrant Activity [Member]  
Summary of Warrant Activity

The following table summarizes the equity classified compensatory warrant activity for the nine months ended December 31, 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 compensatory warrants exchanged for common stock warrants upon reverse recapitalization     668,024       2.25                  
Granted to advisor and its designees     811,431       1.11                  
Exercised     (159,978 )     1.26                  
Expired                            
Forfeited     (25,260 )     2.07                  
Total outstanding – December 31, 2020     1,294,217     $ 1.6670                  
Exercisable     1,290,621     $ 1.66     $ 1.11 —$2.54       4.17  
Non-Exercisable     3,596     $ 2.54     $ 2.54       5.72  

 

The following table summarizes the compensatory warrant activity for the year ended March 31, 2020:

 

    Series C Preferred Stock Warrants  
    Shares    

Weighted– Average

Exercise Price

    Range of
Exercise Price
   

Weighted–

Average

Remaining

Life (Years)

 
Total outstanding – March 31, 2019     756,262     $ 1.99                  
Forfeited     (2,000 )     2.25                  
Expired                            
Granted                            
Total outstanding – March 31, 2020     754,262     $ 1.99                  
Exercisable     746,142     $ 1.99     $ 1.83 – $2.25       4.59  
Non-Exercisable     8,120     $ 2.25     $ 2.25       6.48  

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

The following table summarizes the noncompensatory equity classified warrant activity for the nine months ended December 31, 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       21.94                  
Granted     7,450,193       4.18                  
Exercised     (980,198 )     1.11                  
Expired     (1,673 )     1,562.50                  
Forfeited                            
Total outstanding – December 31, 2020     6,549,777     $ 4.36                  
Exercisable     5,707,081     $ 4.40     $ 0.01 – $2,325.00       1.43  
Non-Exercisable     842,696     $ 4.07       4.07       3.00