0001558370-20-014100 | 10-Q | XBRL Viewer

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2020	Nov. 27, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2020
Entity File Number	001-39169
Entity Registrant Name	Kiromic BioPharma, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-4762913
Entity Address, Address Line One	7707 Fannin Street
Entity Address, Address Line Two	Suite 140
Entity Address, City or Town	Houston
Entity Address State Or Province	TX
Entity Address, Postal Zip Code	77054
City Area Code	832
Local Phone Number	968-4888
Title of 12(b) Security	Common Shares, par value $0.001 per share
Trading Symbol	KRBP
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,332,999
Entity Central Index Key	0001792581
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance Sheets (unaudited) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Current Assets:
Cash and cash equivalents	$ 469,300	$ 1,929,100
Inventories	22,200	22,200
Prepaid expenses and other current assets	1,051,900	89,100
Total current assets	1,543,400	2,040,400
Property and equipment, net	1,612,300	587,900
Other assets	24,400	24,400
Total Assets	3,180,100	2,652,700
Current Liabilities:
Accounts payable	1,672,900	452,400
Accrued expenses and other current liabilities	473,000	221,300
Loan payable	105,600
Total current liabilities	2,251,500	673,700
Total Liabilities	2,251,500	673,700
Commitments and contingencies (Note 8)
Stockholders' Equity:
Common stock: 300,000,000 shares authorized as of September 30, 2020 and December 31, 2019; 4,989,269 and 2,863,812 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively
Additional paid-in capital	27,525,500	13,965,000
Accumulated deficit	(38,062,900)	(22,427,600)
Total Stockholders' Equity	928,600	1,979,000
Total Liabilities and Stockholders' Equity	3,180,100	2,652,700
Series A-1 Preferred Stock
Stockholders' Equity:
Preferred Stock	9,134,700	9,134,700
Series B Preferred Stock
Stockholders' Equity:
Preferred Stock	2,331,300	1,306,900
Preferred Stock
Stockholders' Equity:
Preferred Stock

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Preferred stock, authorized	60,000,000	60,000,000
Common stock, authorized	300,000,000	300,000,000
Common stock, issued	4,989,269	2,863,812
Common stock, outstanding	4,989,269	2,863,812
Series A-1 Preferred Stock
Preferred stock, par value ( in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, authorized	24,000,000	24,000,000
Preferred stock, issued	21,822,301	21,822,301
Preferred stock, outstanding	21,822,301	21,822,301
Series B Preferred Stock
Preferred stock, par value ( in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, authorized	16,500,000	14,130,435
Preferred stock, issued	16,391,397	9,869,659
Preferred stock, outstanding	16,391,397	9,869,659
Preferred Stock
Preferred stock, par value ( in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, authorized	19,500,000	21,869,565
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0

Condensed Consolidated Statements of Operations (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Operating expenses:
Research and development	$ 1,225,700	$ 272,100	$ 3,526,100	$ 601,500
General and administrative	1,190,000	607,400	12,109,200	934,300
Total operating expenses	2,415,700	879,500	15,635,300	1,535,800
Loss from operations	(2,415,700)	(879,500)	(15,635,300)	(1,535,800)
Other expense
Interest expense		(7,400)		(22,400)
Total other expense		(7,400)		(22,400)
Net loss	$ (2,415,700)	$ (886,900)	$ (15,635,300)	$ (1,558,200)
Net loss per share, basic and diluted	$ (0.65)	$ (0.32)	$ (4.39)	$ (0.55)
Weighted average common shares outstanding, basic and diluted	3,719,132	2,862,523	3,719,132	2,862,523

Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) (unaudited) - USD ($)	Preferred Stock Series A-1 Preferred Stock	Preferred Stock Series B Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Series B Preferred Stock	Total
Balance at beginning of period at Dec. 31, 2018	$ 8,727,400			$ 10,237,600	$ (18,699,700)		$ 265,300
Balance at beginning of period (in shares) at Dec. 31, 2018	20,886,782		2,862,093
Stock compensation expense				(104,000)			(104,000)
Net loss					(390,900)		(390,900)
Balance at end of period at Mar. 31, 2019	$ 8,727,400			10,341,600	(19,090,600)		(21,600)
Balance at end of period (in shares) at Mar. 31, 2019	20,886,782		2,862,093
Balance at beginning of period at Dec. 31, 2018	$ 8,727,400			10,237,600	(18,699,700)		265,300
Balance at beginning of period (in shares) at Dec. 31, 2018	20,886,782		2,862,093
Series B Preferred Stock discount amortization							(16,400)
Net loss							(1,558,200)
Balance at end of period at Sep. 30, 2019	$ 9,134,700			11,802,200	(20,257,900)		679,000
Balance at end of period (in shares) at Sep. 30, 2019	21,822,301		2,863,525
Balance at beginning of period at Dec. 31, 2018	$ 8,727,400			10,237,600	(18,699,700)		265,300
Balance at beginning of period (in shares) at Dec. 31, 2018	20,886,782		2,862,093
Issuance of common stock (in shares)						9,782,609
Balance at end of period at Dec. 31, 2019	$ 9,134,700	$ 1,306,900		13,965,000	(22,427,600)		1,979,000
Balance at end of period (in shares) at Dec. 31, 2019	21,822,301	9,869,659	2,863,812
Balance at beginning of period at Mar. 31, 2019	$ 8,727,400			10,341,600	(19,090,600)		(21,600)
Balance at beginning of period (in shares) at Mar. 31, 2019	20,886,782		2,862,093
Stock compensation expense				(105,000)			(105,000)
Net loss					(280,400)		(280,400)
Balance at end of period at Jun. 30, 2019	$ 8,727,400			10,446,600	(19,371,000)		(197,000)
Balance at end of period (in shares) at Jun. 30, 2019	20,886,782		2,862,093
Series B Preferred Stock discount amortization				(16,400)		$ (16,400)	(16,400)
Conversion of convertible promissory notes and accrued interest into Series A-1 Preferred Stock	$ 407,300						407,300
Conversion of convertible promissory notes and accrued interest into Series A-1 Preferred Stock (in shares)	935,519
Warrants underlying Series B Preferred Stock issuance				1,202,500			1,202,500
Exercised stock options				9,500			9,500
Exercised stock options (in shares)			1,432
Stock compensation expense				(160,000)			(160,000)
Net loss					(886,900)		(886,900)
Balance at end of period at Sep. 30, 2019	$ 9,134,700			11,802,200	(20,257,900)		679,000
Balance at end of period (in shares) at Sep. 30, 2019	21,822,301		2,863,525
Balance at beginning of period at Dec. 31, 2019	$ 9,134,700	$ 1,306,900		13,965,000	(22,427,600)		1,979,000
Balance at beginning of period (in shares) at Dec. 31, 2019	21,822,301	9,869,659	2,863,812
Issuance of common stock		$ 331,700					331,700
Issuance of common stock (in shares)		6,521,738
Series B Preferred Stock discount amortization		$ 368,400		(368,400)		$ (368,400)
Warrants underlying Series B Preferred Stock issuance				2,668,300			2,668,300
Stock compensation expense				(456,000)			(456,000)
Net loss					(1,852,700)		(1,852,700)
Balance at end of period at Mar. 31, 2020	$ 9,134,700	$ 2,007,000		16,720,900	(24,280,300)		3,582,300
Balance at end of period (in shares) at Mar. 31, 2020	21,822,301	16,391,397	2,863,812
Balance at beginning of period at Dec. 31, 2019	$ 9,134,700	$ 1,306,900		13,965,000	(22,427,600)		1,979,000
Balance at beginning of period (in shares) at Dec. 31, 2019	21,822,301	9,869,659	2,863,812
Issuance of common stock (in shares)						6,521,738
Series B Preferred Stock discount amortization							(692,700)
Warrants underlying Series B Preferred Stock issuance						$ 5,208,700
Net loss							(15,635,300)
Balance at end of period at Sep. 30, 2020	$ 9,134,700	$ 2,331,300		27,525,500	(38,062,900)		928,600
Balance at end of period (in shares) at Sep. 30, 2020	21,822,301	16,391,397	4,989,269
Balance at beginning of period at Mar. 31, 2020	$ 9,134,700	$ 2,007,000		16,720,900	(24,280,300)		3,582,300
Balance at beginning of period (in shares) at Mar. 31, 2020	21,822,301	16,391,397	2,863,812
Issuance of common stock				9,432,000			9,432,000
Issuance of common stock (in shares)			725,536
Series B Preferred Stock discount amortization		$ 324,300		(324,300)		$ (324,300)
Exercise of warrants				4,900			4,900
Exercise of warrants (in shares)			1,399,921
Stock compensation expense				(443,000)			(443,000)
Net loss					(11,366,900)		(11,366,900)
Balance at end of period at Jun. 30, 2020	$ 9,134,700	$ 2,331,300		26,276,500	(35,647,200)		2,095,300
Balance at end of period (in shares) at Jun. 30, 2020	21,822,301	16,391,397	4,989,269
Stock compensation expense				(1,249,000)			(1,249,000)
Net loss					(2,415,700)		(2,415,700)
Balance at end of period at Sep. 30, 2020	$ 9,134,700	$ 2,331,300		$ 27,525,500	$ (38,062,900)		$ 928,600
Balance at end of period (in shares) at Sep. 30, 2020	21,822,301	16,391,397	4,989,269

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Cash flows from operating activities:
Net loss	$ (2,415,700)	$ (1,852,700)	$ (886,900)	$ (390,900)	$ (15,635,300)	$ (1,558,200)
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation	50,400		20,700		118,900	63,700
Stock compensation expense					11,580,000	369,000
Non-cash interest						20,500
Changes in operating assets and liabilities:
Unbilled receivables from granting agency						5,000
Inventories						(5,900)
Prepaid expenses and other current assets					(149,800)	34,800
Accounts payable					398,300	226,100
Accrued expenses and other current liabilities					130,700	(138,900)
Deferred rent						(19,000)
Convertible promissory notes derivative liability						2,000
Net cash used for operating activities					(3,557,200)	(1,000,900)
Cash flows from investing activities:
Purchases of property and equipment					(1,013,100)	(26,500)
Net cash used for investing activities					(1,013,100)	(26,500)
Cash flows from financing activities:
Proceeds from sale of convertible promissory notes						250,000
Exercise of stock options						9,500
Proceeds from warrant exercise					4,900
Proceeds from loan payable					115,600
Loan repayments					(10,000)
Proceeds from Series B Preferred Stock issuance					3,000,000	1,571,400
Net cash provided by financing activities					3,110,500	1,830,900
Net change in cash and cash equivalents					(1,459,800)	803,500
Cash and cash equivalents:
Beginning of year		$ 1,929,100		$ 384,300	1,929,100	384,300	$ 384,300
End of period	$ 469,300		$ 1,187,800		469,300	1,187,800	$ 1,929,100
Supplemental disclosures of non-cash investing and financing activities:
Accruals for property and equipment					130,200	74,700
Conversion of accounts payable into convertible promissory notes						134,800
Conversion of convertible promissory notes and accrued interest into Series A1 Preferred Stock						$ 407,300
Accruals for deferred initial public offering costs					813,000
Warrants underlying Series B Preferred Stock issuance					$ 2,668,300

ORGANIZATION

9 Months Ended

Sep. 30, 2020

ORGANIZATION

ORGANIZATION

1.	ORGANIZATION

Nature of Business

Kiromic BioPharma, Inc. and subsidiary (the "Company") is a preclinical stage biopharmaceutical company formed under the Texas Business Organizations Code in December 2012. On May 27, 2016, the Company converted from a Texas limited liability company into a Delaware corporation and changed its name from Kiromic LLC to Kiromic Inc. On December 16, 2019, the Company amended and restated its certificate of incorporation charter to re-name the company, Kiromic BioPharma, Inc.

The Company is focused on discovering, developing, and commercializing novel immune-oncology therapy applications through its robust product pipeline, which are in the pre initial new drug validation stages of the US Food and Drug Administration clinical trial process. The Company maintains offices in Houston, Texas. The Company has not generated any revenues to date.

The Company’s wholly-owned subsidiary, GreenPlanet Pharma, Inc., operates an oral healthcare business. It has developed a mouthwash using a high quality, safe, and natural ingredient formulation to provide effective symptomatic relief for a wide range of oral irritations and health concerns. This business is recently formed and the product was recently developed. This business has not generated any revenues.

Going Concern—These condensed consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has incurred significant losses and negative cash flows from operations since inception and expects to incur additional losses until such time that it can generate significant revenue from the commercialization of its product candidates. The Company had negative cash flow from operations of $3,557,200 for the nine months ended September 30, 2020, and an accumulated deficit of $38,062,900 as of September 30, 2020. Although the Company completed its initial public offering on October 15, 2020 and received net proceeds of $12,372,700, the Company does not have sufficient cash on hand or available liquidity to meet its obligations through the 12 months following the date the condensed consolidated financial statements are issued. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

To date, the Company has relied on equity and debt financing to fund its operations. The Company’s product candidates are still in the early stages of development, and substantial additional financing will be needed by the Company to fund its operations and ongoing research and development efforts prior to the commercialization, if any, of its product candidates. Given its projected operating requirements and its existing cash and cash equivalents, the Company plans to complete an additional financing transaction in the first half of 2021 in order to continue operations. Management is currently evaluating different strategies to obtain the required funding of future operations. These strategies may include, but are not limited to, additional funding from current or new investors. However, there can be no assurance that the Company will be able to secure such additional financing, or if available, that it will be sufficient to meet its needs or on favorable terms. Therefore, the plans cannot be deemed probable. As a result, the Company has concluded that management’s plans do not alleviate substantial doubt about the Company’s ability to continue as a going concern.

The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty.

NIH Grant—In August 2018, the National Institute of Health ("the NIH"), the primary agency of the US government responsible for biomedical and public health research, awarded a Phase I/II grant to the Company in the amount of $2,235,000 for the development and non-clinical testing of a new anti-arteriosclerosis gene therapy delivered by engineered adeno-associated viral vectors. Phase I of the grant approved amounts of $851,000 and covered the period September 2018 through August 2019, entitled the Company to reimbursement for certain salaries and wages, materials and supplies, facilities and administrative costs, and fixed fees. The Company did not complete Phase I by August 2019, but was granted an extension to complete Phase I by the NIH through August 2021. Starting after Phase 1 completion in 2021, Phase II of the grant covers reimbursements for certain salaries and wages, materials and supplies, facilities and administrative costs, and fixed fees of $1,384,000.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information (Accounting Standards Codification ("ASC") 270, Interim Reporting) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information necessary for a full presentation of financial position, results of operations, and cash flows in conformity GAAP. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of the Company for the periods presented.

All intercompany balances were eliminated upon consolidation.

On December 17, 2019, the Company completed a 1-for-10 reverse stock split of its outstanding common stock. On June 17, 2020, the Company completed a 1-for-3.494 reverse stock split of its outstanding common stock. Accordingly, unless otherwise noted, all share and per share information has been restated to retroactively show the effect of these stock splits.

Use of Estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include determination of the fair value of common stock and related stock-based compensation, the fair value of convertible promissory notes and the related embedded derivative liability, warrants to purchase common stock underlying shares of Series B Preferred Stock, and estimating services incurred by third-party service providers used to recognize research and development expense.

Cash and Cash Equivalents—As of September 30, 2020 and December 31, 2019, cash and cash equivalents consisted entirely of cash on hand and bank deposits. The Company considers all highly liquid instruments with remaining maturities at purchase of 90 days or less to be cash equivalents.

Unbilled Receivables from Granting Agency—Unbilled receivables include certain cost reimbursements owed to the Company resulting from a biomedical research grant from the NIH. Direct costs subject to reimbursement are recorded only after actual expenses have been incurred while indirect costs are calculated using the percentage-of-completion accounting method. Unbilled receivables represent qualified cost reimbursements for which reimbursement have not yet been requested from or billed to the NIH due to the timing of the accounting invoicing cycle. The Company estimates the amount of probable credit losses from its existing unbilled receivables in the form of an allowance for doubtful accounts. The Company determines the allowance for doubtful accounts based upon an aging of unbilled receivables, historical experience, and management judgment. Unbilled receivable balances are reviewed individually for collectability. For the three and nine months ended September 30, 2020 and 2019, the Company has not experienced any credit-related losses.

Concentrations of Credit Risk and Other Uncertainties—Financial instruments that potentially subject the Company to concentration of credit risk consist of cash and cash equivalents. Substantially all of the Company’s cash and cash equivalents were deposited in accounts at a small number of national financial institutions. Account balances may at times exceed federally-insured limits. The Company has not incurred losses related to these cash and cash equivalents deposited at financial institutions and management believes that the Company is not exposed to significant credit risk due to the financial strength of the depository institutions in which the cash is held.

The Company is subject to certain risks and uncertainties from changes in any of the following areas that the Company believes could have a material adverse effect on future financial position or results of operations: the ability to obtain regulatory approval and market acceptance of, and reimbursement for, the Company’s product candidates; the performance of third-party clinical research organizations and manufacturers; protection of the intellectual property; litigation or claims against the Company based on intellectual property, patent, product, regulatory or other factors; the Company’s ability to attract and retain employees necessary to support commercial success; and changes in the industry or customer requirements including the emergence of competitive products with new capabilities.

The Company records receivables resulting from activities under its research grant from the NIH. Management believes that the Company is not exposed to significant credit risk due to the financial strength of the granting agency.

Deposit—In connection with one of the Company’s facility leases, a deposit is held by the lessor per the terms of the noncancelable agreement. The deposit has been recorded as a long-term asset on the Company’s condensed consolidated balance sheets.

Inventories—Inventories consist entirely of finished products. The balances presented are stated at the lower of cost or market and is determined using the first-in, first-out method. The Company’s policy is to write down inventory that has become obsolete, inventory that has a cost basis in excess of its expected net realizable value, and inventory quantity in excess of expected requirements. The estimate of write downs to inventory from obsolescence, costs in excess of inventory net realizable value, and inventory quantity in excess of expected requirements is subjective and primarily dependent on the estimates of future demand for a particular product. Adjustments generally increase as demand decreases due to market conditions and product life-cycle changes. As of September 30, 2020 and December 31, 2019, no such adjustments have been recorded.

Deferred Initial Public Offering Costs—In the nine months ended September 30, 2020, the Company began incurring costs in connection with the filing of a Registration Statement on Form S-1/A for an initial public offering, which are deferred in other current assets in accordance with ASC 505-10-25 in the condensed consolidated balance sheets. Initial public offering costs consist of legal, accounting, and other costs directly related to the Company’s efforts to raise capital. As of September 30, 2020, $933,100 of deferred costs related to the initial public offering were classified as other current assets on the condensed consolidated balance sheets.

Property and Equipment—Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets ranging from 1 to 8 years. Major replacements and improvements are capitalized as leasehold improvements, while general repairs and maintenance are expensed as incurred. Estimated useful lives of leasehold improvements are the shorter of the remaining lease term or the estimated useful economic life of the specific asset.

Estimated useful lives of property and equipment are as follows for the major classes of assets:


Asset Description		Estimated Lives
Laboratory Equipment		3 - 8
Leasehold Improvements		1 - 7
Office Furniture, Fixtures, and Equipment		5
Software		3 - 5

Internal Use Software Development Costs—The Company capitalizes certain costs incurred to develop internal use software. All costs incurred that relate to planning and post-implementation phases of development are expensed as incurred. Costs incurred in the development and implementation phases are capitalized and amortized over the estimated life of the software, generally five years. The Company capitalized software development costs of approximately $10,200 and $20,000 for the nine months ended September 30, 2020 and 2019, respectively.

Impairment of Long-Lived Assets—The Company reviews its long-lived assets, including property and equipment, for impairment indicators. If indicators are noted, the Company compares the carrying amount of the asset to its estimated undiscounted cash flows. If the carrying amount exceeds its estimated undiscounted cash flows, an impairment loss is recognized to adjust the long-lived asset to fair value. There has been no impairment losses on the Company’s long-lived assets since inception.

Comprehensive Loss—Comprehensive loss includes net loss as well as other changes in stockholders’ equity that result from transactions and economic events other than those with stockholders. For all periods presented, there was no difference between net loss and comprehensive loss.

Income Taxes—The Company files federal and state income tax returns, utilizing the accrual basis of accounting. Income taxes are provided for the tax effects of transactions reported in the condensed consolidated financial statements and consist of taxes currently due and deferred taxes. Certain transactions of the Company may be subject to accounting methods for income tax purposes, which differ from the accounting methods used in preparing these condensed consolidated financial statements in accordance with GAAP. Accordingly, the net income or loss of the Company reported for income tax purposes may differ from the balances reported for those same items in the accompanying condensed consolidated financial statements.

Deferred tax assets and liabilities are recognized for the future tax consequences attributable between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which such temporary differences are expected to be recovered or settled. The Company records valuation allowances to reduce deferred income tax assets to the amount that is more likely than not to be realized.

The Company records uncertain tax positions in accordance with ASC 740, Income Taxes, on the basis of a two-step process in which (1) the Company determines whether it is more-likely-than-not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying condensed consolidated statements of operations. No such interest or penalties were recognized during the three and nine months ended September 30, 2020 and 2019.

Research and Development Expense—The Company expenses research and development costs as incurred. Research and development expenses include personnel and personnel-related costs, costs associated with the Company’s pre-clinical development activities including costs of outside consultants and contractors, the submission and maintenance of regulatory filings, equipment and supplies used in developing products prior to market approval and an allocation of certain overhead costs such as facility and related expenses.

The Company accrues and expenses costs of services provided by contract research organizations in connection with preclinical studies and contract manufacturing organizations engaged to manufacture clinical trial material, costs of licensing technology, and costs of services provided by research organizations and service providers. Upfront payments and milestone payments made for the licensing of technology are expensed as research and development in the period in which they are incurred if the technology is not expected to have any alternative future uses other than the specific research and development project for which it was intended. Nonrefundable advance payments for goods or services to be received in the future for use in research and development activities are recorded as prepaid expenses. The prepaid amounts are expensed as the related goods are delivered or the services are performed rather than when the payment is made.

Proceeds from Grants—During the three months ended September 30, 2020 and 2019, the Company recognized $142,400 and $51,600, respectively, as reductions to research and development expense within the condensed consolidated statements of operations pursuant to its grant from the NIH. During the nine months ended September 30, 2020 and 2019, the Company recognized $142,400 and $239,900, respectively, as reductions to research and development expense within the condensed consolidated statements of operations pursuant to its grant from the NIH.

Convertible Promissory Notes Derivative Liability—The Company has recorded an embedded derivative liability related to the discount on the per share selling price the holders of the convertible promissory notes would receive at the time of conversion in connection with the Company’s next equity financing ("the Next Financing Close"). The embedded derivative liability is initially recorded at fair value, with gains and losses arising from changes in fair value

recognized in interest expense in the condensed consolidated statements of operations at each period end while such instruments are outstanding. The embedded derivative liability is valued using a probability weighted expected return model. See Note 7.

Upon repurchase of convertible promissory notes, ASC 470, Debt with conversion and other options, requires the Company to allocate total settlement consideration, inclusive of transaction costs, amongst the liability components of the instrument based on the fair value of the liability component immediately prior to repurchase. The difference between the settlement consideration allocated to the liability component and the net carrying value of the liability component would be recognized as gain (loss) on extinguishment of debt in the condensed consolidated statements of operations.

Fair Value Measurements—The carrying value of the Company’s cash and cash equivalents, unbilled receivables from the granting agency, prepaid expenses and other assets, accounts payable, accrued expenses and other current liabilities approximate their fair value due to their short-term nature.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.

The Company accounts for financial instruments in accordance with ASC 820, Fair Value Measurements and Disclosures. ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below:

Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2—Quoted prices in non-active markets or in active markets for similar assets or liabilities, observable inputs other than quoted prices, and inputs that are not directly observable but are corroborated by observable market data.

Level 3—Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

There were no changes in the fair value hierarchy levels during the nine months ended September 30, 2020 and 2019.

The Company’s liabilities that were measured at fair value on a non-recurring and recurring basis converted into Series A-1 Preferred Stock as of September 30, 2020 and December 31, 2019. Per ASC 820, the fair values of the convertible promissory notes are measured on a non-recurring basis at the relevant measurement date. The fair value of convertible promissory notes embedded derivative liability is measured on a recurring basis at the end of each reporting period.

Rollforward of Level 3 Liabilities Measured at Fair Value on a Non-Recurring Basis:


	September 30,		December 31,
	2020		2019
Convertible promissory notes
Beginning balance	$	—	$	—
Amounts allocated to the embedded derivative liability at inception (at fair value)		—		(21,000)
Conversions from accounts payable into convertible promissory notes		—		134,800
Proceeds from issuances of convertible promissory notes		—		250,000
Conversions into Series A‑1 Stock		—		(363,800)
Ending balance	$	—	$	—

Rollforward of Level 3 Liabilities Measured at Fair Value on a Recurring Basis:
Convertible promissory note embedded derivative liability
Beginning balance	$	—	$	—
Realized and unrealized gains and losses		—		2,000
Fair value of embedded derivative liability at inception		—		21,000
Amounts derecognized upon conversion of the related convertible promissory notes		—		(23,000)
Ending balance	$	—	$	—

Nonvested Stock Options and Restricted Stock Units—Pursuant to the Company’s 2017 Stock Incentive Plan (the “Plan”), the Company has the ability to issue a variety of share-based payments and incentives to members, employees, and non-employees through grants of nonvested stock options.

The vesting conditions for stock options include annual, and monthly. Annual vesting conditions are for four years. Monthly vesting conditions range from 10 to 48 months. When nonvested options are vested, they become exercisable over a 10 year period from grant date.

The vesting conditions for restricted stock units include cliff vesting conditions. Certain restricted stock units vest with a range of 6 to 12 months following the expiration of employee lock-up agreements. Certain restricted stock units vest based on the later of achievement of key milestones or the expiration of employee lock-up agreements. When nonvested restricted stock units are vested, they become exercisable over a 10 year period from grant date.

Stock-Based Compensation—The Company records stock compensation expense related to the Plan in accordance with ASC 718, Compensation—Stock Compensation. The Company measures and recognizes stock compensation expense for all stock-based awards, including stock options, based on estimated fair values recognized using cliff vesting or the straight-line method over the requisite service period. The fair value of stock options is estimated on the grant date using the Black-Scholes option-valuation model (the “Black-Scholes model”). The calculation of stock-based compensation expense requires that the Company make assumptions and judgments about the variables used in the Black-Scholes model, including the fair value of the Company’s common stock, expected term, expected volatility of the underlying common stock, and risk-free interest rate. Forfeitures are accounted for when they occur.

The board of directors’ approach to estimating the fair value of the Company’s common stock includes utilizing methods outlined in the American Institute of Certified Public Accountants’ Practice Aid, Valuation of Privately- Held Company Equity Securities Issued as Compensation.

The Company estimates the grant-date fair value of stock options using the Black-Scholes model and the assumptions used to value such stock options are determined as follows:

Expected Term. The expected term represents the period that the Company’s stock options are expected to be outstanding. Due to limitations on the sale or transfer of the Company’s common stock as a privately held company, the Company does not believe its historical exercise pattern is indicative of the pattern it will experience as a future publicly traded company. The Company has consequently used the Staff Accounting Bulletin (“SAB”) No. 110, simplified method to calculate the expected term, which is the average of the contractual term and vesting period. The Company plans to continue to use the SAB 110 simplified method until it has sufficient trading history as a publicly traded company.

Risk-Free Interest Rate. The Company bases the risk-free interest rate used in the Black-Scholes model on the implied yield available on US Treasury zero-coupon issues with a term equivalent to that of the expected term of the stock options for each stock option group.

Volatility. The Company determines the price volatility based on the historical volatilities of industry peers as it has no trading history for its common stock price. The Company intends to continue to consistently apply this process using the same or a similar peer group of public companies, until a sufficient amount of historical information regarding the volatility of its own common stock price becomes available, or unless circumstances change such that the identified peer companies are no longer similar, in which case other suitable peer companies whose common stock prices are publicly available would be utilized in the calculation.

Dividend Yield. The expected dividend assumption is based on the Company’s current expectations about its anticipated dividend policy. To date, the Company has not declared any dividends and, therefore, the Company has used an expected dividend yield of zero.

Common Stock Valuations. The fair value of the common stock underlying the Company’s stock-based compensation grants has historically been determined by the Company’s board of directors, with input from management and third-party valuations. The Company believes that the board of directors has the relevant experience and expertise to determine the fair value of the Company’s common stock. Given the absence of a public trading market of the Company’s common stock, and in accordance with the American Institute of Certified Public Accountants Practice Aid, Valuation of Privately-Held Company Equity Securities Issued as Compensation, the board of directors exercised reasonable judgment and considered numerous objective and subjective factors to determine the best estimate of the fair value of the Company’s common stock at each grant date. These factors include:

●

valuations of the common stock performed by third-party specialists;

●

the prices, rights, preferences, and privileges of the Company’s Series A-1 Preferred Stock and Series B Preferred Stock relative to those of the Company’s common stock;

●

lack of marketability of the common stock;

●

current business conditions and projections;

●

hiring of key personnel and the experience of management;

●

the Company’s stage of development;

●

likelihood of achieving a liquidity event, such as an initial public offering, a merger or acquisition of the Company given prevailing market conditions, or other liquidation event;

●

the market performance of comparable publicly traded companies; and

●

the US and global capital market conditions.

In valuing the common stock, the board of directors determined the equity value of the Company’s business using various valuation methods including combinations of income and market approaches. The income approach estimates value based on the expectation of future cash flows that a company will generate. These future cash flows are discounted to their present values using a discount rate derived from an analysis of the cost of capital of comparable publicly traded companies in the Company’s industry or similar business operations as of each valuation date and is adjusted to reflect the risks inherent in the Company’s cash flows. The market approach references actual transactions involving (i) the subject being valued, or (ii) similar assets and/or enterprises.

For each valuation, the equity value determined by the income and market approaches was then allocated to the common stock using either the option pricing method (“OPM”) or probability—weighted expected return model (“PWERM”).

The option pricing method is based on the Black-Scholes option valuation model, which allows for the identification of a range of possible future outcomes, each with an associated probability. The OPM is appropriate to use when the range of possible future outcomes is difficult to predict and thus creates highly speculative forecasts. In general, while simple in its application, management did not use the OPM approach when considering allocation techniques for the valuation of

equity interests in early stage, privately held life science companies. Management determined that applying the OPM would violate the major assumptions of the Black Scholes option valuation model approach. Additionally, the simulation approach can generally be reasonably approximated by a scenario-based approach like the PWERM as described below.

PWERM involves a forward-looking analysis of the possible future outcomes of the enterprise. This method is particularly useful when discrete future outcomes can be predicted at a relatively high confidence level with a probability distribution. Discrete future outcomes considered under the PWERM include an initial public offering, as well as non- initial public offering market-based outcomes. Determining the fair value of the enterprise using the PWERM requires the Company to develop assumptions and estimates for both the probability of an initial public offering liquidity event and stay private outcomes, as well as the values the Company expects those outcomes could yield. Since February 2018, the Company has valued its common stock based on a PWERM.

Application of the Company’s approach involves the use of estimates, judgment, and assumptions that are highly complex and subjective, such as those regarding expected future revenue, expenses, and future cash flows, discount rates, market multiples, the selection of comparable companies, and the probability of possible future events. Changes in any or all of these estimates and assumptions or the relationships between those assumptions impact valuations as of each valuation date and may have a material impact on the valuation of the common stock.

For valuations after the completion of an initial public offering, the board of directors will determine the fair value of each share of underlying common stock based on the closing price of the common stock as reported on the date of grant. Future expense amounts for any particular period could be affected by changes in assumptions or market conditions.

Segment Data—The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions.

Recently Issued Accounting Pronouncements—From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial position, results of operations, or cash flows upon adoption.

In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. In July 2018, the FASB issued ASU 2018-11 to amend certain aspects of Topic 842. These amendments provide entities with an additional (and optional) transition method to adopt Topic 842. Under this transition method, an entity initially applies the transition requirements in Topic 842 at that Topic’s effective date with the effects of initially applying Topic 842 recognized as a cumulative effect adjustment to the opening balance of retained earnings (or other components of equity or net assets, as appropriate) in the period of adoption. On October 16, 2019, the FASB changed the effective date of this standard applicable to the Company as an emerging growth company to January 1, 2022. The Company is currently evaluating the potential impact of this standard on its financial position, results of operations, and cash flows.

In June 2016, FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). The amendments in ASU 2016-13 affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in ASU 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. On October 16, 2019, the FASB has changed the effective date of this standard applicable to the Company as an emerging growth company to January 1, 2023. The Company is currently evaluating the potential impact of this standard on its financial position, results of operations, and cash flows.

On January 1, 2019, the Company adopted ASU 2016-15 (Topic 230), Classification of Certain Cash Receipts and Payments, a new standard providing guidance on statement of cash flow classification on specific issues. The standard is effective for financial statements issued for fiscal periods beginning after December 15, 2018. It is required to be applied

on a retrospective approach. The Company determined that this standard had no impact on its financial position, results of operations, and cash flows for the year ended December 31, 2019.

NET LOSS PER COMMON SHARE

9 Months Ended

Sep. 30, 2020

NET LOSS PER COMMON SHARE

NET LOSS PER COMMON SHARE

3.NET LOSS PER COMMON SHARE

Basic and diluted net loss per common share is determined by dividing net loss less deemed dividends by the weighted-average common shares outstanding during the period. For all periods presented, the common shares underlying the stock options, convertible Series A-1 Preferred Stock, and the convertible Series B Preferred Stock have been excluded from the calculation because their effect would be anti-dilutive. Therefore, the weighted-average common shares outstanding used to calculate both basic and diluted loss per common shares are the same. The following table illustrates the computation of basic and diluted earnings per share:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Net loss	$	(2,415,700)	$	(886,900)	$	(15,635,300)	$	(1,558,200)
Less: Series B Preferred Stock discount amortization		—		(16,400)		(692,700)		(16,400)
Net loss attributable to common shareholders, basic and diluted	$	(2,415,700)	$	(903,300)	$	(16,328,000)	$	(1,574,600)
Weighted average common shares outstanding, basic and diluted		3,719,132		2,862,523		3,719,132		2,862,523
Net loss per common share, basic and diluted	$	(0.65)	$	(0.32)	$	(4.39)	$	(0.55)

For the nine months ended September 30, 2020 and 2019, potentially dilutive securities excluded from the computations of diluted weighted-average common shares outstanding were (in shares):


	September 30,	September 30,
	2020	2019
Options to purchase	1,484	149,309
Restricted Stock Units	36,368	—
Series A‑1 Preferred Stock	624,594	602,426
Series B Preferred Stock	452,378	70,622
Total	1,114,824	822,357

PROPERTY AND EQUIPMENT

9 Months Ended

Sep. 30, 2020

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

4.PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at September 30, 2020 and December 31, 2019:


	September 30,		December 31,
	2020		2019
Equipment	$	736,000	$	488,800
Leasehold improvements		1,126,600		302,700
Office furniture, fixtures, and equipment		16,600		16,600
Software		151,700		141,500
Construction in progress		62,000		—
		2,092,900		949,600
Less: Accumulated depreciation		(480,600)		(361,700)
Total	$	1,612,300	$	587,900

Depreciation expense was $50,400 and $20,700 for the three months ended September 30, 2020 and 2019, respectively, and $118,900 and $63,700 for the nine months ended September 30, 2020 and 2019, respectively. Depreciation expense is allocated between research and development and general and administrative operating expenses on the condensed consolidated statements of operations.

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

9 Months Ended

Sep. 30, 2020

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

5.ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consisted of the following at September 30, 2020 and December 31, 2019:


	September 30,		December 31,
	2020		2019
Accrued consulting and outside services	$	435,900	$	221,300
Accrued compensation		37,100		—
Total	$	473,000	$	221,300

CURRENT LOAN PAYABLE

9 Months Ended

Sep. 30, 2020

CURRENT LOAN PAYABLE

CURRENT LOAN PAYABLE

6.CURRENT LOAN PAYABLE

On May 1, 2020, the Company received a loan in the principal amount of $115,600 (the “SBA Loan”) under the Paycheck Protection Program (“PPP”), which was established under the recently enacted Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) administered by the U.S. Small Business Administration (the “SBA”). The intent and purpose of the PPP is to support companies, during the COVID-19 pandemic, by providing funds for certain specified business expenses, with a focus on payroll. As a qualifying business as defined by the SBA, the Company is using the proceeds from this loan to primarily help maintain its payroll. The term of the SBA Loan promissory note (“the Note”) is two years, though it may be payable sooner in connection with an event of default under the Note. The SBA Loan carries a fixed interest rate of one percent per year, with the first payment due seven months from the date of initial cash receipt. Under the CARES Act and the PPP, certain amounts of loans made under the PPP may be forgiven if the recipients use the loan proceeds for eligible purposes, including payroll costs and certain rent or utility costs, and meet other requirements regarding, among other things, the maintenance of employment and compensation levels. The Company intends to use the SBA Loan for qualifying expenses and to apply for forgiveness of the SBA Loan in accordance with the terms of the CARES Act.

The Note provides for customary events of default, including, among others, those relating to failure to make payment, bankruptcy, materially false or misleading representations to the SBA, and adverse changes in the Company’s financial condition or business operations that may materially affect its ability to pay the SBA Loan.

As the legal form of the Note is a debt obligation, the Company accounts for it as debt under ASC 470, Debt, and recorded $105,600 during the nine months ended September 30, 2020 in the condensed consolidated balance sheet. During the nine months ended September 30, 2020, the Company received initial proceeds of $115,600 and made a repayment of $10,000 on the SBA Loan, bringing the balance to $105,600 as of September 30, 2020. The Company accrues interest over the term of the loan and does not impute additional interest at a market rate because the guidance on imputing interest in ASC 835-30, Interest, excludes transactions where interest rates are prescribed by a government agency. If any amount of the loan is ultimately forgiven, income from the extinguishment of debt would be recognized as a gain on loan extinguishment in the condensed consolidated statement of operations.

CONVERTIBLE PROMISSORY NOTES

9 Months Ended

Sep. 30, 2020

CONVERTIBLE PROMISSORY NOTES

CONVERTIBLE PROMISSORY NOTES

7.CONVERTIBLE PROMISSORY NOTES

Starting in June 2016, the Company sold convertible promissory notes to certain investors to help finance its operations. The convertible promissory notes were in amounts ranging from $12,500 to $500,000, earning annual interest between 6% and 17% and all maturities were on June 1, 2019, January 2, 2020, or June 30, 2020 (the “Maturity Date”).

The convertible promissory notes were convertible into shares issued in the Company’s Next Financing Close by dividing the total amount of convertible promissory notes, plus accrued interest (the “Balance”), by the applicable conversion price, as defined in the convertible promissory notes. If the convertible promissory notes have not been converted, the Balance shall be payable in full if the Company consummates a change of control transaction. If there has not been a Next Financing Close or a change in control by the Maturity Date, then at the noteholders’ option, the Company shall either repay the Balance then outstanding or convert into the Company’s common stock at a set conversion price then in effect, as defined in the convertible promissory notes.

The estimated fair value of the conversion discount related embedded derivative was determined using a probability-weighted expected return model. The probability of a Next Financing Close occurring prior to the Maturity Date was determined to be 55% during the nine months ended September 30, 2019. The net present value of the conversion discount related embedded derivative was measured using a discount rate of 25% in the nine months ended

September 30, 2019. There have been no convertible promissory note issuances in the nine months ended September 30, 2020. Below is a table that outlines the initial value of issuances and the bifurcated embedded derivative liability during the nine months ended September 30, 2020 and 2019:


	September 30,		September 30,
	2020		2019
Convertible promissory notes- issuances	$	—	$	250,000
Conversion of accounts payable into convertible promissory notes		—		134,800
Total issuances and conversions into convertible promissory notes		—		384,800

Embedded derivative liability
Initial fair value upon issuance of convertible promissory notes		—		21,000
Realized and unrealized gains and losses		—		2,000
Converted embedded derivative liability into Series A‑1 Preferred Stock		—		(23,000)
Embedded derivative liability balance at September 30	$	—	$	—

On August 15, 2019, each holder of convertible promissory notes issued during 2019 agreed to voluntarily convert the amounts of principal and interest then outstanding into shares of Series A-1 Preferred Stock. See Note 9 for further details. No additional convertible promissory notes were issued for the nine months ended September 30, 2020 following the conversion on August 15, 2019.

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2020

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

8.COMMITMENTS AND CONTINGENCIES

Facility Lease Agreements—The Company leases its premises in Houston, Texas under a noncancelable operating lease expiring in May 2021. The lease renewal which occurred in 2019 resulted in an expansion to the lease of approximately 4,100 square feet. The Company may extend this lease for up to two years. The total lease payments per month will be $21,353 beginning January 1, 2020. The Company records rent expense on a straight-line basis over the term of the respective leases.

As of September 30, 2020, future minimum commitments under facility lease agreements were as follows:


	Amount
2020	$	64,100
2021		85,400
Total	$	149,500

Rent expense for the facility lease agreements was $194,800 and $91,300 during the nine months ended September 30, 2020 and 2019, respectively, and $67,700 and $33,300 during the three months ended September 30, 2020 and 2019, respectively. Rent expense is included as an allocation between research and development and general and administrative expense in the condensed consolidated statements of operations.

License Agreements—The Company has entered into a number of licensing arrangements for various intellectual property and licensed patent rights for technologies being developed for commercial sale. As part of these arrangements, the Company is subject to contingent milestone payments in accordance with agreed-upon development objectives, as well as future royalty payments on product sales of the underlying assets. As of September 30, 2020 and December 31, 2019, the Company has not incurred any milestone or royalty liabilities related to these license agreements.

Legal Proceedings—In the normal course of business, the Company may have various claims in process and other contingencies. The Company regularly assesses all contingencies and believes, based on information presently known, the Company is not involved in any matters that would have a material effect on the Company’s financial position, results of operations and cash flows.

STOCKHOLDERS' EQUITY (DEFICIT)

9 Months Ended

Sep. 30, 2020

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT)

9.STOCKHOLDERS’ EQUITY (DEFICIT)

On December 16, 2019, the Company amended and restated its certificate of incorporation to, among other things, (i) complete a 1-for-10 reverse split of the Company’s outstanding shares of common stock; (ii) increase the Company’s authorized Preferred Stock to 60,000,000 shares and (iii) change the par value of the Preferred Stock from $0.01 to $0.0001 per share.

On June 17, 2020, the Company filed an amendment to its amended and restated certificate of incorporation to complete a 1-for-3.494 reverse split of the Company’s outstanding shares common stock.

Accordingly, unless otherwise noted, all share and per share information has been restated to retroactively show the effect of these stock splits.

As of September 30, 2020, the Company was authorized to issue 300,000,000 shares of common stock and 60,000,000 shares of Preferred Stock, of which 24,000,000 shares were designated as Series A-1 Preferred Stock and 16,500,000 shares were designated as Series B Preferred Stock.

As of December 31, 2019, the Company was authorized to issue 300,000,000 shares of common stock and 60,000,000 shares of Preferred Stock, of which 24,000,000 shares were designated as Series A-1 Preferred Stock and 14,130,435 shares were designated as Series B Preferred Stock.

Common Stock—From inception in December 2012 through May 2016, the Company raised proceeds from capital contributions for common stock at a $0.001 par value, net of redemptions, totaling $6,214,800. When the Company converted from Kiromic, LLC to Kiromic, Inc., the shares converted from two classes to a single class of common stock. At the time of conversion, the par value on the two classes of common stock eliminated, and the par value of common stock transferred entirely into additional paid-in capital. There were no additional raises from common stock that occurred in the nine months ended September 30, 2020 or 2019.

The Company authorized shares of 300,000,000 as of September 30, 2020 and December 31, 2019. On June 8, 2020, the Company agreed to amend the warrant vesting schedule such that the warrants became immediately exercisable for each warrant holder. On June 8, 2020, warrant holders exercised their option to purchase 335,982 shares of common stock for proceeds of $1,200. Then, on June 10, 2020, warrant holders exercised their option to purchase an additional 1,063,939 shares of common stock for proceeds of $3,700. There are 0 and 839,952 warrants outstanding as of September 30, 2020 and December 31, 2019, respectively.

On June 8, 2020, the Company issued 3,106 and 430 shares of common stock to the Company’s Chief Medical Officer and another employee, respectively. In addition, on June 19, 2020, the Company issued 402,000 and 320,000 shares of common stock to the Company’s Chief Financial Officer and Chief Operating Officer ("the CFO and COO") and Chief Strategy and Innovation Officer ("the CSO"), respectively. The shares were issued in exchange for services rendered and no cash considerations. These issuances resulted in $9,432,000 in stock compensation expenses.

Each holder of outstanding shares of common stock shall be entitled to one vote in respect of each share. The number of authorized shares of common stock may be increased or decreased by the affirmative vote of a majority of the outstanding shares of common stock and preferred stock voting together as a single class.

The Company has never paid dividends and has no plans to pay dividends on common stock. As of December 31, 2017, the Company adopted a stock option plan (“the Plan”). On September 25, 2019, the board of directors approved an additional 10,000,000 shares to be reserved and authorized under the Plan. This approval increased the total number of authorized shares from 20,000,000 to 30,000,000. After the reverse stock splits, the total number of authorized shares was updated to 858,615. On June 19, 2020, the board of directors approved an additional 850,000 shares to be reserved and authorized under the Plan. This approval increased the total number of authorized shares from 858,615 to 1,708,615.

There were 142,141 shares and 258,813 shares available for issuance as of September 30, 2020 and December 31, 2019, respectively.

Series A-1 Preferred Stock—Between June 8, 2018 and August 14, 2018, the Company entered into agreements to issue preferred stock and received advances of $900,000. The advances received under the agreements were recorded as liabilities until the preferred stock was issued and bore interest at a rate of 6.5%. The agreements were amended on

September 10, 2018, when, in exchange for additional preferred stock to be issued, the advances no longer bore interest. On December 20, 2018, 2,032,749 shares of Series A-1 Preferred Stock were issued for the $912,800, representing the advances received and accrued interest through September 10, 2018.

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company or the occurrence of a liquidation the holders of the shares of Series A-1 Preferred Stock then outstanding shall be entitled to be paid out of the assets of the Company available for distribution to its stockholders, before any payment shall be made to the holders of common stock by reason of their ownership thereof, an amount per share equal to $0.50, the original issue price.

On matters submitted to a vote of the stockholders of the Company, Series A-1 Preferred Stock and common stock (see above) vote together as one class, with the vote of the Series A-1 Preferred Stock on an as-converted basis. Each holder of Series A-1 Preferred Stock shall have a number of votes equal to the shares of common stock into which the shares of Series A-1 Preferred Stock held by such holder are then convertible.

With respect rights on liquidation, winding up and dissolution, shares of the Series A-1 Preferred Stock rank senior to all shares of common stock.

Each share of Series A-1 Preferred Stock is convertible at any time at the option of the holder at the then current conversion rate. In addition, upon the closing of the sale of shares of common stock to the public in an initial public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, all shares of preferred stock shall automatically be converted into shares of common stock at the then effective conversion rate.

Series B Preferred Stock—On September 13, 2019, the Company amended and restated its certificate of incorporation to authorize the issuance of up to 14,130,435 shares of Series B Preferred Stock. On September 13, 2019, the Company sold 7,608,696 shares of Series B Preferred Stock for $3,500,000. Proceeds of $1,571,400 were received as of September 30, 2020, with the remaining balance received as of October 31, 2019. On November 13, 2019, the Company issued an additional 2,173,913 shares of Series B Preferred Stock for $1,000,000. In connection with the sale of the Series B Preferred Stock, each investor was issued warrants to purchase 0.0859 shares of common stock for each share of Series B Preferred Stock purchased at a price of $0.003494 per share of common stock ("Warrants"). See below for further details.

Until the filing of the amended and restated certificate of incorporation on December 16, 2019, shares of Series B Preferred Stock had accrued unpaid dividends at an annual rate of 6% per share. The amended and restated certificate of incorporation eliminated the clause requiring the dividend accrual. In addition, on December 6, 2019, the Series B Preferred Stock investors voted in favor of forfeiting all accrued and unpaid dividends, along with all future dividends. In exchange, the Company issued 87,050 shares of Series B Preferred Stock to the investors. The Company treated this transaction as accretion and settlement of a Series B Preferred Stock dividends in the amount of $40,000. Accordingly, additional paid-in capital was reduced by $40,000.

The Series B Preferred Stock conversion price is initially equal to the Series B Preferred Stock original issuance price of $0.46 per share divided by the rate at which shares of Series B Preferred Stock may be converted into shares of common stock. The holders of the Series B Preferred Stock held a special redemption right. In the event the Company had not filed an initial registration statement with the United States Securities and Exchange Commission and submitted an application to be listed on the Nasdaq Stock market on or prior to November 15, 2019, subject to Delaware law governing distributions to stockholders and the Company’s ability to redeem its shares, all or part of the shares of Series B Preferred Stock held by any holder of record as of such date of shares of Series B Preferred Stock with an aggregate purchase price of at least $1,000,000 would have been be redeemable at the option of such holders of record commencing any time on or after November 16, 2019 at a price equal to the purchase price paid for such shares plus all unpaid dividends accrued on such shares. Also, in the event that the Company was not ultimately approved for listing on a Nasdaq Stock Market tier lower than the Nasdaq Global Select Market, the special redemption right would remain in effect and may have been exercisable on any date thereafter. If the Company was unable to execute a redemption upon request of a holder, interest would accrue on the shares at rate of 14.6%, or warrants underlying the shares would be exercisable and the fair market value of the shares of common stock received in connection therewith would be treated as payment in exchange for the shares of Series B Preferred Stock submitted for redemption by such holder.

On November 12, 2019 and November 13, 2019, the Series B Preferred Stock investors signed waivers, which provided consent to the Company to eliminate the special redemption right. When the Company amended and restated its certificate of incorporation on December 16, 2019, the special redemption right provision was eliminated.

The elimination of the special redemption right allows for permanent equity classification for the Series B Preferred Stock. Since the Warrants are equity classified, the Company allocated the relative fair value of the cash proceeds between the Series B Preferred Stock and the Warrants. The fair value of the Warrants is offset by a contra account, which is classified as a discount to the Series B Preferred Stock. The discount is amortized using the effective interest method at an effective interest rate of 28% per annum.

On January 24, 2020, the Company issued 4,782,608 shares of Series B Preferred Stock for $2,200,000. On January 29, 2020, the Company filed a certificate of correction to its amended and restated its certificate of incorporation to authorize the issuance of up to 16,500,000 shares of Series B Preferred Stock. On January 31, 2020, the Company issued an additional 1,739,130 shares of Series B Preferred Stock for $800,000.

Below is a table that outlines the initial value of issuances allocated to Series B Preferred Stock and the Series B Preferred Stock discount amortized during the three months and nine months ended September 30:


	2020		2019
Series B Preferred Stock
Balance at January 1,	$	1,306,900	$	—
Series B Preferred Stock proceeds		3,000,000		—
Series B Preferred Stock discount		(2,668,300)		—
Series B Preferred Stock discount amortization		368,400		—
Balance at March 31	$	2,007,000	$	—
Series B Preferred Stock discount amortization		324,300		—
Balance at June 30	$	2,331,300	$	—
Series B Preferred Stock proceeds		—		1,571,400
Series B Preferred Stock discount		—		(1,202,600)
Series B Preferred Stock discount amortization		—		16,400
Balance at September 30	$	2,331,300	$	385,200

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company or the occurrence of a liquidation, the holders of the shares of Series B Preferred Stock then outstanding shall be entitled to be paid out of the assets of the Company available for distribution to its stockholders, before any payment shall be made to the holders of common stock by reason of their ownership thereof, an amount per share equal to $0.46, the original issue price.

On matters submitted to a vote of the stockholders of the Company, Series B Preferred Stock, Series A-1 Preferred Stock, and common stock vote together as one class, with the vote of the Series B Preferred Stock on an as-converted basis. Each holder of Series B Preferred Stock shall have a number of votes equal to the shares of common stock into which the shares of Series B Preferred Stock held by such holder are then convertible.

With respect rights on liquidation, winding up and dissolution, shares of Series B Preferred Stock rank senior to all shares of common stock, but not senior to Series A-1 Preferred Stock.

Each share of Series B Preferred Stock is convertible at any time at the option of the holder at the then current conversion rate. In addition, upon the closing of the sale of shares of common stock to the public in an initial public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, all shares of preferred stock shall automatically be converted into shares of common stock at the then effective conversion rate.

Conversion of Convertible Promissory Notes—On December 20, 2018, the Company’s certificate of incorporation was amended to authorize 24,000,000 shares Series A-1 Preferred Stock. This amendment qualified as the Next Financing Close with respect to the convertible promissory notes. Therefore, the outstanding principal and accrued interest was converted into Series A-1 Preferred Stock. At the time of conversion, outstanding principal and accrued interest of the convertible promissory notes totaled $7,541,600. Per the convertible promissory notes, the conversion price was $0.40. Accordingly, 18,854,033 shares were issued to convert the outstanding principal and accrued interest into Series A-1 Preferred Stock.

On August 15, 2019, each holder of convertible promissory notes issued during 2019 agreed to voluntarily convert the amounts of principal and interest then outstanding into shares of Series A-1 Preferred Stock. At the time of conversion, outstanding principal and accrued interest of the convertible promissory notes totaled $405,300. Per the convertible promissory notes, the notes containing a $250,000 principal balance with a 17% coupon rate had a conversion price of

$0.43. Additionally, the Company settled an accounts payable with a vendor by issuing a convertible promissory note in the amount of $134,800 with a 6% coupon rate, with a conversion rate of $0.43. Accordingly, 935,519 shares were issued to convert the outstanding principal and accrued interest into Series A-1 Preferred Stock.

Warrants Underlying Series B Preferred Stock—In connection with the sale of the Series B Preferred Stock, each investor was issued warrants to purchase 0.0859 shares of common stock for each share of Series B Preferred Stock purchased at a price of $0.003494 per share of common stock. The warrants become exercisable in accordance with the schedule set forth below following completion by the Company of an initial public offering and thereafter may be exercised at any time prior to expiration ten years from the date of issuance.

●

30% of the warrants beginning six months after the date on which the securities of the Company are first listed on a United States national securities exchange (such date, the "Listing Date");

●

An additional 30% of the warrants beginning nine months after the Listing Date; and

●

The remainder of the warrants beginning twelve months after the Listing Date.

As of December 31, 2019, the Company sold 9,782,609 shares of Series B Preferred Stock, which contained 839,952 underlying warrants to purchase common stock based on the exercise price and vesting schedule outlined above. As of September 30, 2020, the Company sold an additional 6,521,738 shares of Series B Preferred Stock, which contained 559,969 underlying warrants to purchase common stock based on the exercise price and vesting schedule outlined above. These warrants were equity classified and the fair value of $5,208,700 is reflected as additional paid-in capital. On June 8, 2020, the Company agreed to amend the warrant vesting schedule such that the warrants became immediately exercisable for each warrant holder.

On June 8, 2020, warrant holders exercised their option to purchase 335,982 shares of common stock for proceeds of $1,200. Then, on June 10, 2020, warrant holders exercised their option to purchase an additional 1,063,939 shares of common stock for proceeds of $3,700. There are no warrants outstanding as of September 30, 2020.

The Black-Scholes option-pricing model was used to estimate the fair value of the warrants with the following weighted-average assumptions for the nine months ended September 30, 2020 and 2019:


	September 30,		September 30,
	2020		2019
Risk-free interest rate	1.54% - 1.88	%	1.81% - 1.84	%
Expected volatility	71.95% - 72.71	%	72.18% - 72.20‑	%
Expected life (years)	10.00		10.00
Expected dividend yield	0	%	0	%

STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2020

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

10.STOCK-BASED COMPENSATION

2017 Stock Incentive Plan— Stock Options

The Black-Scholes option-pricing model was used to estimate the fair value of stock options with the following weighted-average assumptions for the nine months ended September 30:


	2020		2019
Risk-free interest rate	0.15% - 2.92	%	1.61% - 2.92	%
Expected volatility	72.29% - 82.52	%	72.29% - 78.16	%
Expected life (years)	4.93 – 6.07		4.93 – 6.01
Expected dividend yield	0	%	0	%

The fair value of the common shares underlying the stock options has historically been determined by the board of directors, with input from management. Because there was no public market for Company’s common shares, the board of directors determined the fair value of the common shares at the time of grant of the stock option by considering a number of objective and subjective factors, including important developments in the Company’s operations, third-party valuations performed, sales of Series A-1 Preferred Stock, sales of Series B Preferred Stock, actual operating results and financial performance, the conditions in the biotechnology industry and the economy in general, the stock price performance and volatility of comparable public companies, and the lack of liquidity of the Company’s common shares, among other factors.

The following table summarizes the activity for all stock options outstanding at September 30 under the Plan:


	2020			2019
		Weighted			Weighted
		Average			Average
		Exercise			Exercise
	Shares	Price		Shares	Price
Options outstanding at beginning of year	598,083	$	11.11	520,517	$	8.64
Granted	86,536		17.95	209,505		17.47
Exercised	—		—	(1,432)		6.64
Cancelled and forfeited	(66,109)		15.06	(94,318)		11.40
Balance at September 30	618,510	$	11.58	634,272	$	11.15
Options exercisable at September 30:	390,075	$	8.51	389,584	$	7.82
Weighted average grant date fair value for options granted during the year:		$	17.43		$	11.28

The following table summarizes additional information about stock options outstanding and exercisable at September 30, 2020 and 2019 under the Plan:


	Options Outstanding						Options Exercisable
		Weighted
		Average	Weighted					Weighted
		Remaining	Average		Aggregate			Average		Aggregate
As of	Options	Contractual	Exercise		Intrinsic		Options	Exercise		Intrinsic
September 30,	Outstanding	Life	Price		Value		Exercisable	Price		Value
2019	634,272	7.97	$	11.15	$	4,009,000	389,584	$	7.82	$	3,761,100
2020	618,510	7.79	$	11.58	$	1,787,200	390,075	$	8.51	$	1,521,400

Total stock compensation expense recognized from stock-based compensation awards classified as stock options were recognized in the condensed consolidated statements of operations for the three and nine months ended September 30, 2020 and 2019 as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Research and development	$	169,000	$	43,000	$	980,000	$	85,000
General and administrative		160,000		62,000		248,000		124,000
Total	$	329,000	$	105,000	$	1,228,000	$	209,000

On August 20, 2020, the board of directors canceled and terminated 15,792 stock options, granted during the quarter ended June 30, 2020 to four non-employees. Thereafter, on August 20, 2020, the board of directors granted 21,112 stock options to the same individuals with a grant date fair value of $12.41 per share. There were 3,959 stock option grants that were considered vested on the grant date. The effects of the stock option modifications resulted in $71,600 of stock compensation expense allocable to general and administrative for the three months ended September 30, 2020. Included in that amount were $19,700 of incremental compensation costs resulting from the modifications for the three months ended September 30, 2020.

As of September 30, 2020, total unrecognized stock compensation expense is $2,088,400, related to unvested stock options to be recognized over the remaining weighted-average vesting period of 2.72 years.

2017 Stock Incentive Plan—Restricted Stock Units

In January 2017, the Company’s board of directors approved the adoption of the Plan. The Plan permits the Company to grant up to 1,708,615 shares of the Company’s common stock awards, including incentive stock options; non-statutory stock options; and conditional share awards to employees, directors, and consultants of the Company. All granted shares that are canceled, forfeited, or expired are returned to the Plan and are available for grant in conjunction with the issuance of new common stock awards. Restricted stock units (“RSUs”) vest over a specified amount of time or when certain performance metrics are achieved by the Company.

The fair value of the common shares underlying the RSUs has historically been determined by the board of directors, with input from management. As there was no public market for Company’s common shares, the board of directors determined the fair value of the common shares at the time of grant of the RSUs by considering a number of objective and subjective factors, including important developments in the Company’s operations, third-party valuations performed, sales of Series A-1 Preferred Stock, sales of Series B Preferred Stock, actual operating results and financial performance, the conditions in the biotechnology industry and the economy in general, the stock price performance and volatility of comparable public companies, and the lack of liquidity of the Company’s common shares, among other factors.

The following table summarizes the activity for all RSUs outstanding at September 30 under the Plan:


	2020
		Weighted Average
		Grant Date
		Fair Value
	Shares	Per Share
Nonvested RSUs at beginning of year	—	$	—
Granted	1,655,579		15.23
Vested	—		—
Cancelled and forfeited	(709,334)		19.00
Nonvested RSUs at September 30	946,245	$	12.41

During the nine months ended September 30, 2020, 1,655,579 RSUs were granted and 709,334 RSUs were cancelled. During the nine months ended September 30, 2020, no RSUs vested. No RSUs were granted or vested in the nine months ended September 30, 2019.

On August 20, 2020, the board of directors canceled and terminated 709,334 RSUs, granted during the quarter ended June 30, 2020. The cancelled RSUs were originally granted to five individuals with a grant date fair value of $19.00 per share. Thereafter, on August 20, 2020, the board of directors granted 946,245 RSUs to the same individuals with a grant date fair value of $12.41 per share. None of the stock option and RSU grants were considered vested on the grant date. The RSU grants were modified for three employees and two non-employees. The effects of the RSU modifications resulted in $299,000 and $621,000 of stock compensation expense allocable to research and development and general and administrative, respectively, during the three months ended September 30, 2020. Included in those amounts were incremental compensation costs of $65,600 and $141,200 of stock compensation expense allocable to research and development and general and administrative, respectively, during the three months ended September 30, 2020.

INCOME TAXES

9 Months Ended

Sep. 30, 2020

INCOME TAXES

INCOME TAXES

11.INCOME TAXES

The Company’s effective tax rate from continuing operations was 0% for the three and nine months ended September 30, 2020 and 2019. The Company recorded no income tax provision for the three and nine months ended September 30, 2020 and 2019.

The provision for income taxes during the interim reporting periods is calculated by applying an estimate of the annual effective tax rate for the full fiscal year to "ordinary" income or loss for the reporting period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including changes in the mix of

the pre-tax income and the jurisdictions to which it relates, changes in tax laws, business reorganizations and settlements with taxing authorities.

The income tax rates vary from the US federal statutory rate of 21% primarily due to the full valuation allowance on the Company’s deferred tax assets. The Company has recorded the full valuation allowance based on an evaluation of both positive and negative evidence, including latest forecasts and cumulative losses in recent years. The Company has concluded that it was more likely than not that none of its deferred tax assets would be realized.

On March 27, 2020, in response to the COVID-19 pandemic, the president of the United States signed the CARES Act. The Company does not expect there to be any significant benefit to its income tax provision as a result of the CARES Act, and the Company continues to monitor for any potential tax legislation related to the COVID-19 pandemic.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2020

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

12.RELATED PARTY TRANSACTIONS

Through September 30, 2020, the Company maintained two separate consulting agreements with the Company’s CSO and the Company’s CFO and COO.

Beginning in the year ended December 31, 2014, the Company entered into its first consulting agreement with the CSO. Pursuant to the amended agreement dated July 20, 2018, the CSO is entitled to a consulting fee of $400 per hour, provided that he is limited to nineteen (19) hours per month unless he obtains approval from the Company’s Chief Executive Officer. The consulting agreement indicates that the CSO will provide a leadership role for the Company’s business development strategies. The consulting fees paid to the CSO totaled $579,700 and $135,900 in the nine months ended September 30, 2020 and 2019, respectively. In addition, the Company issued the CSO 320,000 shares of common stock on June 19, 2020 in exchange for services rendered and no cash considerations. See Note 9.

Beginning in the year ended December 31, 2018, the Company entered into its first consulting agreement with the CFO and COO. Initially, his title was "Consultant", and the Company changed his title to CFO and COO on October 25, 2019. The CFO and COO was elected as a director of the Company on January 17, 2020. Pursuant to the agreement on April 18, 2018 and amended on September 4, 2019, the CFO and COO is entitled to a consulting fee of $2,500 per month amended to $10,000 per month plus discretionary bonuses approved by management. The consulting fees paid to the CFO and COO totaled $140,000 and $23,800 in the nine months ended September 30, 2020 and 2019, respectively. In addition, the Company issued the CFO and COO 402,000 shares of common stock on June 19, 2020 in exchange for services rendered and no cash considerations. See Note 9.

On June 8, 2020, the Company issued the Chief Medical Officer and another employee 3,106 and 430 shares of common stock, respectively. The shares were issued in exchange for services rendered and no cash considerations. See Note 9.

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2020

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

13.SUBSEQUENT EVENTS

Initial Public Offering and Preferred Stock Conversion

On October 15, 2020, the Company received net proceeds of $12,372,700 its initial public offering (“the IPO”), after deducting underwriting discounts and commissions of $1,275,000 and other offering expenses of $1,352,300 incurred. The Company issued and sold 1,250,000 shares of common stock in the IPO at a price of $12.00 per share. In connection with the IPO, all shares of the Company’s Series A-1 Preferred Stock and Series B Preferred Stock were converted into 624,594 and 469,136 shares of common stock, respectively.

Lease Facility Renewal

On November 19, 2020, the Company’s board of directors approved the lease renewal of its premises in Houston, Texas. Once the current lease expires in May, 2021, the renewed lease agreement will commence under an operating lease agreement that is noncancelable from commencement until May 1, 2024. The Company has the option to cancel the lease thereafter until the agreement expires on May 1, 2026. The termination date is effective after 90 days notice of cancellation.

If the Company exercises the cancellation option, the Company must also pay the lessor a termination payment equal to three months of base rent.

The future minimum commitments under the renewed facility lease agreement will be as follows:


	Amount
2021	$	179,800
2022		269,700
2023		274,200
2024		230,400
Total	$	954,100

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

All intercompany balances were eliminated upon consolidation.

Use of Estimates

Cash and Cash Equivalents

Unbilled Receivables from Granting Agency

Concentrations of Credit Risk and Other Uncertainties

Deposit

Inventories

Deferred Initial Public Offering Costs

Property and Equipment

Estimated useful lives of property and equipment are as follows for the major classes of assets:


Asset Description		Estimated Lives
Laboratory Equipment		3 - 8
Leasehold Improvements		1 - 7
Office Furniture, Fixtures, and Equipment		5
Software		3 - 5

Internal Use Software Development Costs

Impairment of Long-Lived Assets

Comprehensive Loss

Income Taxes

Research and Development Expense

Proceeds from Grants

Convertible Promissory Notes Derivative Liability

Fair Value Measurements

Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 3—Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

There were no changes in the fair value hierarchy levels during the nine months ended September 30, 2020 and 2019.

Rollforward of Level 3 Liabilities Measured at Fair Value on a Non-Recurring Basis:


	September 30,		December 31,
	2020		2019
Convertible promissory notes
Beginning balance	$	—	$	—
Amounts allocated to the embedded derivative liability at inception (at fair value)		—		(21,000)
Conversions from accounts payable into convertible promissory notes		—		134,800
Proceeds from issuances of convertible promissory notes		—		250,000
Conversions into Series A‑1 Stock		—		(363,800)
Ending balance	$	—	$	—

Rollforward of Level 3 Liabilities Measured at Fair Value on a Recurring Basis:
Convertible promissory note embedded derivative liability
Beginning balance	$	—	$	—
Realized and unrealized gains and losses		—		2,000
Fair value of embedded derivative liability at inception		—		21,000
Amounts derecognized upon conversion of the related convertible promissory notes		—		(23,000)
Ending balance	$	—	$	—

Nonvested Stock Options and Restricted Stock Units

Stock-Based Compensation

The Company estimates the grant-date fair value of stock options using the Black-Scholes model and the assumptions used to value such stock options are determined as follows:

●

valuations of the common stock performed by third-party specialists;

●

the prices, rights, preferences, and privileges of the Company’s Series A-1 Preferred Stock and Series B Preferred Stock relative to those of the Company’s common stock;

●

lack of marketability of the common stock;

●

current business conditions and projections;

●

hiring of key personnel and the experience of management;

●

the Company’s stage of development;

●

likelihood of achieving a liquidity event, such as an initial public offering, a merger or acquisition of the Company given prevailing market conditions, or other liquidation event;

●

the market performance of comparable publicly traded companies; and

●

the US and global capital market conditions.

Segment Data

Segment Data—The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions.

Recently Issued Accounting Pronouncements

on a retrospective approach. The Company determined that this standard had no impact on its financial position, results of operations, and cash flows for the year ended December 31, 2019.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of estimated useful lives of property and equipment


Asset Description		Estimated Lives
Laboratory Equipment		3 - 8
Leasehold Improvements		1 - 7
Office Furniture, Fixtures, and Equipment		5
Software		3 - 5

Schedule of Level 3 liabilities measured at fair value on a recurring and nonrecurring basis


	September 30,		December 31,
	2020		2019
Convertible promissory notes
Beginning balance	$	—	$	—
Amounts allocated to the embedded derivative liability at inception (at fair value)		—		(21,000)
Conversions from accounts payable into convertible promissory notes		—		134,800
Proceeds from issuances of convertible promissory notes		—		250,000
Conversions into Series A‑1 Stock		—		(363,800)
Ending balance	$	—	$	—

Rollforward of Level 3 Liabilities Measured at Fair Value on a Recurring Basis:
Convertible promissory note embedded derivative liability
Beginning balance	$	—	$	—
Realized and unrealized gains and losses		—		2,000
Fair value of embedded derivative liability at inception		—		21,000
Amounts derecognized upon conversion of the related convertible promissory notes		—		(23,000)
Ending balance	$	—	$	—

NET LOSS PER COMMON SHARE (Tables)

9 Months Ended

Sep. 30, 2020

NET LOSS PER COMMON SHARE

Schedule of earnings per share, basic and diluted


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Net loss	$	(2,415,700)	$	(886,900)	$	(15,635,300)	$	(1,558,200)
Less: Series B Preferred Stock discount amortization		—		(16,400)		(692,700)		(16,400)
Net loss attributable to common shareholders, basic and diluted	$	(2,415,700)	$	(903,300)	$	(16,328,000)	$	(1,574,600)
Weighted average common shares outstanding, basic and diluted		3,719,132		2,862,523		3,719,132		2,862,523
Net loss per common share, basic and diluted	$	(0.65)	$	(0.32)	$	(4.39)	$	(0.55)

Schedule of antidilutive securities excluded from computation of earnings per share


	September 30,	September 30,
	2020	2019
Options to purchase	1,484	149,309
Restricted Stock Units	36,368	—
Series A‑1 Preferred Stock	624,594	602,426
Series B Preferred Stock	452,378	70,622
Total	1,114,824	822,357

PROPERTY AND EQUIPMENT (Tables)

9 Months Ended

Sep. 30, 2020

PROPERTY AND EQUIPMENT

Schedule of property and equipment


	September 30,		December 31,
	2020		2019
Equipment	$	736,000	$	488,800
Leasehold improvements		1,126,600		302,700
Office furniture, fixtures, and equipment		16,600		16,600
Software		151,700		141,500
Construction in progress		62,000		—
		2,092,900		949,600
Less: Accumulated depreciation		(480,600)		(361,700)
Total	$	1,612,300	$	587,900

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2020

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Schedule of accrued expenses and other current liabilities


	September 30,		December 31,
	2020		2019
Accrued consulting and outside services	$	435,900	$	221,300
Accrued compensation		37,100		—
Total	$	473,000	$	221,300

CONVERTIBLE PROMISSORY NOTES (Tables)

9 Months Ended

Sep. 30, 2020

CONVERTIBLE PROMISSORY NOTES

Schedule of initial value of issuances and the bifurcated embedded derivative liability


	September 30,		September 30,
	2020		2019
Convertible promissory notes- issuances	$	—	$	250,000
Conversion of accounts payable into convertible promissory notes		—		134,800
Total issuances and conversions into convertible promissory notes		—		384,800

Embedded derivative liability
Initial fair value upon issuance of convertible promissory notes		—		21,000
Realized and unrealized gains and losses		—		2,000
Converted embedded derivative liability into Series A‑1 Preferred Stock		—		(23,000)
Embedded derivative liability balance at September 30	$	—	$	—

COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 30, 2020

COMMITMENTS AND CONTINGENCIES

Schedule of future minimum rental payments for operating leases

As of September 30, 2020, future minimum commitments under facility lease agreements were as follows:


	Amount
2020	$	64,100
2021		85,400
Total	$	149,500

STOCKHOLDERS' EQUITY (DEFICIT) (Tables)

9 Months Ended

Sep. 30, 2020

STOCKHOLDERS' EQUITY (DEFICIT)

Schedule of initial value of issuances allocated to Series B Preferred Stock and the Series B Preferred Stock discount amortized


	2020		2019
Series B Preferred Stock
Balance at January 1,	$	1,306,900	$	—
Series B Preferred Stock proceeds		3,000,000		—
Series B Preferred Stock discount		(2,668,300)		—
Series B Preferred Stock discount amortization		368,400		—
Balance at March 31	$	2,007,000	$	—
Series B Preferred Stock discount amortization		324,300		—
Balance at June 30	$	2,331,300	$	—
Series B Preferred Stock proceeds		—		1,571,400
Series B Preferred Stock discount		—		(1,202,600)
Series B Preferred Stock discount amortization		—		16,400
Balance at September 30	$	2,331,300	$	385,200

Schedule of assumptions used to estimate fair value of warrants


	September 30,		September 30,
	2020		2019
Risk-free interest rate	1.54% - 1.88	%	1.81% - 1.84	%
Expected volatility	71.95% - 72.71	%	72.18% - 72.20‑	%
Expected life (years)	10.00		10.00
Expected dividend yield	0	%	0	%

STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2020

STOCK-BASED COMPENSATION

Schedule of assumptions used to estimate fair value of stock options

The Black-Scholes option-pricing model was used to estimate the fair value of stock options with the following weighted-average assumptions for the nine months ended September 30:


	2020		2019
Risk-free interest rate	0.15% - 2.92	%	1.61% - 2.92	%
Expected volatility	72.29% - 82.52	%	72.29% - 78.16	%
Expected life (years)	4.93 – 6.07		4.93 – 6.01
Expected dividend yield	0	%	0	%

Schedule of stock option activity


	2020			2019
		Weighted			Weighted
		Average			Average
		Exercise			Exercise
	Shares	Price		Shares	Price
Options outstanding at beginning of year	598,083	$	11.11	520,517	$	8.64
Granted	86,536		17.95	209,505		17.47
Exercised	—		—	(1,432)		6.64
Cancelled and forfeited	(66,109)		15.06	(94,318)		11.40
Balance at September 30	618,510	$	11.58	634,272	$	11.15
Options exercisable at September 30:	390,075	$	8.51	389,584	$	7.82
Weighted average grant date fair value for options granted during the year:		$	17.43		$	11.28


	Options Outstanding						Options Exercisable
		Weighted
		Average	Weighted					Weighted
		Remaining	Average		Aggregate			Average		Aggregate
As of	Options	Contractual	Exercise		Intrinsic		Options	Exercise		Intrinsic
September 30,	Outstanding	Life	Price		Value		Exercisable	Price		Value
2019	634,272	7.97	$	11.15	$	4,009,000	389,584	$	7.82	$	3,761,100
2020	618,510	7.79	$	11.58	$	1,787,200	390,075	$	8.51	$	1,521,400

Schedule of stock-based compensation


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Research and development	$	169,000	$	43,000	$	980,000	$	85,000
General and administrative		160,000		62,000		248,000		124,000
Total	$	329,000	$	105,000	$	1,228,000	$	209,000

Schedule of restricted stock unit activity


	2020
		Weighted Average
		Grant Date
		Fair Value
	Shares	Per Share
Nonvested RSUs at beginning of year	—	$	—
Granted	1,655,579		15.23
Vested	—		—
Cancelled and forfeited	(709,334)		19.00
Nonvested RSUs at September 30	946,245	$	12.41

SUBSEQUENT EVENTS (Tables)

9 Months Ended

Sep. 30, 2020

SUBSEQUENT EVENTS

Schedule of future minimum rental payments for renewed operating lease upon commencement


	Amount
2021	$	179,800
2022		269,700
2023		274,200
2024		230,400
Total	$	954,100

ORGANIZATION (Details) - USD ($)		9 Months Ended
ORGANIZATION (Details) - USD ($)	Oct. 15, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Aug. 31, 2019	Aug. 31, 2018
ORGANIZATION
Cash flow from operations		$ (3,557,200)	$ (1,000,900)
Accumulated deficit		(38,062,900)		$ (22,427,600)
Proceeds from issuance of stock	$ 12,372,700
NIH Grant receivable						$ 2,235,000
Phase I approved amount of grant					$ 851,000
Phase II approved amount of grant		$ 1,384,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Jun. 17, 2020	Dec. 17, 2019	Sep. 30, 2020 USD ($) item	Dec. 31, 2019 USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Stock split (Reverse stock split) ratio	3.494	10
Inventory adjustments			$ 0	$ 0
Deferred costs			$ 933,100
Lease facility \| item			1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Property and Equipment
Impairment of long-lived assets held-for-use			$ 0
Unrecognized tax benefits, interest or penalties	$ 0	$ 0	0	$ 0
Grants recognized	$ 142,400	$ 51,600	$ 142,400	239,900
Minimum
Property and Equipment
Property plant and equipment useful life			1 year
Maximum
Property and Equipment
Property plant and equipment useful life			8 years
Laboratory Equipment \| Minimum
Property and Equipment
Property plant and equipment useful life			3 years
Laboratory Equipment \| Maximum
Property and Equipment
Property plant and equipment useful life			8 years
Leasehold improvements \| Minimum
Property and Equipment
Property plant and equipment useful life			1 year
Leasehold improvements \| Maximum
Property and Equipment
Property plant and equipment useful life			7 years
Office furniture, fixtures, and equipment
Property and Equipment
Property plant and equipment useful life			5 years
Software
Property and Equipment
Property plant and equipment useful life			5 years
Capitalized software development costs			$ 10,200	$ 20,000
Software \| Minimum
Property and Equipment
Property plant and equipment useful life			3 years
Software \| Maximum
Property and Equipment
Property plant and equipment useful life			5 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value Measurements (Details) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Fair Value Measurements
Changes in fair value hierarchy levels	$ 0	$ 0
Conversions into Series A1 Stock		$ (407,300)
Non-recurring \| Convertible promissory notes \| Level 3
Fair Value Measurements
Amounts allocated to the embedded derivative liability at inception (at fair value)			$ (21,000)
Conversions from accounts payable into convertible promissory notes			134,800
Proceeds from issuances of convertible promissory notes			250,000
Conversions into Series A1 Stock			(363,800)
Recurring \| Convertible promissory notes \| Level 3
Convertible promissory note embedded derivative liability
Realized and unrealized gains and losses			2,000
Fair value of embedded derivative liability at inception			21,000
Amounts derecognized upon conversion of the related convertible promissory notes			$ (23,000)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nonvested Stock Options (Details)	9 Months Ended
	Sep. 30, 2020
Nonvested Stock Options
Expected dividend yield	0.00%
RSU
Nonvested Stock Options
Expiration period	10 years
Monthly Vesting Conditions \| Minimum \| RSU
Nonvested Stock Options
Vesting period	6 months
Monthly Vesting Conditions \| Maximum \| RSU
Nonvested Stock Options
Vesting period	12 months
Stock Incentive Plan 2017
Nonvested Stock Options
Expiration period	10 years
Stock Incentive Plan 2017 \| Annual Vesting Conditions
Nonvested Stock Options
Vesting period	4 years
Stock Incentive Plan 2017 \| Monthly Vesting Conditions \| Minimum
Nonvested Stock Options
Vesting period	10 months
Stock Incentive Plan 2017 \| Monthly Vesting Conditions \| Maximum
Nonvested Stock Options
Vesting period	48 months

NET LOSS PER COMMON SHARE - Computation of basic and diluted earnings per share (Details) - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
NET LOSS PER COMMON SHARE
Net loss	$ (2,415,700)	$ (11,366,900)	$ (1,852,700)	$ (886,900)	$ (280,400)	$ (390,900)	$ (15,635,300)	$ (1,558,200)
Less: Series B Preferred Stock discount amortization				(16,400)			(692,700)	(16,400)
Net loss attributable to common shareholders, basic and diluted	$ (2,415,700)			$ (903,300)			$ (16,328,000)	$ (1,574,600)
Weighted average common shares outstanding, basic and diluted	3,719,132			2,862,523			3,719,132	2,862,523
Net loss per common share, basic and diluted	$ (0.65)			$ (0.32)			$ (4.39)	$ (0.55)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669625-108580

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=121586364&loc=d3e3602-108585

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22663-107794

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22658-107794

+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1448-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1377-109256

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

+ Details

NET LOSS PER COMMON SHARE - Dilutive Securities Excluded From the Computations of Earnings Per Share (Details) - shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Dilutive Securities Excluded From the Computations of Earnings Per Share
Total	1,114,824	822,357
Series A-1 Preferred Stock
Dilutive Securities Excluded From the Computations of Earnings Per Share
Total	624,594	602,426
Series B Preferred Stock
Dilutive Securities Excluded From the Computations of Earnings Per Share
Total	452,378	70,622
Stock Options
Dilutive Securities Excluded From the Computations of Earnings Per Share
Total	1,484	149,309
RSU
Dilutive Securities Excluded From the Computations of Earnings Per Share
Total	36,368

PROPERTY AND EQUIPMENT (Details) - USD ($)	3 Months Ended		9 Months Ended
PROPERTY AND EQUIPMENT (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
PROPERTY AND EQUIPMENT
Property, Plant and Equipment, Gross	$ 2,092,900		$ 2,092,900		$ 949,600
Less: Accumulated depreciation	(480,600)		(480,600)		(361,700)
Total	1,612,300		1,612,300		587,900
Depreciation	50,400	$ 20,700	118,900	$ 63,700
Laboratory Equipment
PROPERTY AND EQUIPMENT
Property, Plant and Equipment, Gross	736,000		736,000		488,800
Leasehold improvements
PROPERTY AND EQUIPMENT
Property, Plant and Equipment, Gross	1,126,600		1,126,600		302,700
Office furniture, fixtures, and equipment
PROPERTY AND EQUIPMENT
Property, Plant and Equipment, Gross	16,600		16,600		16,600
Software
PROPERTY AND EQUIPMENT
Property, Plant and Equipment, Gross	151,700		151,700		$ 141,500
Construction in progress
PROPERTY AND EQUIPMENT
Property, Plant and Equipment, Gross	$ 62,000		$ 62,000

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued consulting and outside services	$ 435,900	$ 221,300
Accrued compensation	37,100
Total	$ 473,000	$ 221,300

CURRENT LOAN PAYABLE (Details) - USD ($)		9 Months Ended
CURRENT LOAN PAYABLE (Details) - USD ($)	May 01, 2020	Sep. 30, 2020
CURRENT LOAN PAYABLE
Loan payable		$ 105,600
Loan initial proceeds		115,600
Loan repayments		10,000
SBA Loan
CURRENT LOAN PAYABLE
Principal amount	$ 115,600
Loan payable		105,600
Loan repayments		$ 10,000
Loan term	2 years
Loan fixed interest rate	1.00%
Loan first payment due	7 months

CONVERTIBLE PROMISSORY NOTES (Details) - Convertible promissory notes - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2020	Jun. 30, 2016
CONVERTIBLE PROMISSORY NOTES
Convertible promissory notes		$ 0
Probability of next financing close (as a percent)	55.00%
Embedded derivative discount rate ( as a percent)	25.00%
Minimum
CONVERTIBLE PROMISSORY NOTES
Convertible promissory notes			$ 12,500
Annual interest (as a percent)			6.00%
Maximum
CONVERTIBLE PROMISSORY NOTES
Convertible promissory notes			$ 500,000
Annual interest (as a percent)			17.00%

CONVERTIBLE PROMISSORY NOTES - Initial Issuance and Bifurcated Embedded Derivative Liability (Details) - Convertible promissory notes	9 Months Ended
	Sep. 30, 2019 USD ($)
CONVERTIBLE PROMISSORY NOTES
Convertible promissory notes- issuances	$ 250,000
Conversion of accounts payable into convertible promissory notes	134,800
Total issuances and conversions into convertible promissory notes	384,800
Embedded derivative liability
Beginning balance	21,000
Realized and unrealized gains and losses	2,000
Converted embedded derivative liability into Series A1 Preferred Stock	$ (23,000)

COMMITMENTS AND CONTINGENCIES (Details)	3 Months Ended		9 Months Ended
COMMITMENTS AND CONTINGENCIES (Details)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) ft²	Sep. 30, 2019 USD ($)
Leases
Area leased \| ft²			4,100
Total lease payments per month			$ 21,353
Rent expense	$ 67,700	$ 33,300	194,800	$ 91,300
Future minimum commitments
2020	64,100		64,100
2021	85,400		85,400
Total	$ 149,500		$ 149,500
Maximum
Leases
Renewal term	2 years		2 years

STOCKHOLDERS' EQUITY (DEFICIT) (Details)						9 Months Ended		42 Months Ended
STOCKHOLDERS' EQUITY (DEFICIT) (Details)	Jun. 19, 2020 USD ($) shares	Jun. 17, 2020 shares	Jun. 10, 2020 USD ($) shares	Jun. 08, 2020 USD ($) Vote shares	Dec. 17, 2019	Sep. 30, 2020 USD ($) $ / shares shares	Sep. 30, 2019 shares	May 31, 2016 USD ($) $ / shares	Sep. 19, 2020 shares	Sep. 18, 2020 shares	Dec. 31, 2019 $ / shares shares	Dec. 16, 2019 $ / shares shares	Dec. 15, 2019 $ / shares	Sep. 25, 2019 shares	Sep. 24, 2019 shares	Sep. 13, 2019 shares
Stockholder's equity (Deficit)
Reverse split		3.494			10
Preferred stock, authorized						60,000,000					60,000,000	60,000,000
Preferred stock, par value ( in dollars per share) \| $ / shares								$ 0.001				$ 0.0001	$ 0.01
Proceeds from issuance of common stock \| $								$ 6,214,800
Common stock, authorized		858,615				300,000,000			1,708,615	858,615	300,000,000			30,000,000	20,000,000
Warrants to purchase shares			1,063,939	335,982
Proceeds from Issuance of Warrants \| $			$ 3,700	$ 1,200		$ 4,900
Warrants outstanding						0					839,952
Stock compensation expenses \| $				$ 9,432,000
Number of Votes \| Vote				1
Dividend paid \| $ / shares						$ 0
Shares available for issuance						142,141			850,000		258,813			10,000,000
Additional raises from common stock						0	0
Employees
Stockholder's equity (Deficit)
Shares issued for services				430
Cash consideration \| $				$ 0
CMO
Stockholder's equity (Deficit)
Shares issued for services				3,106
Cash consideration \| $				$ 0
CFO and COO
Stockholder's equity (Deficit)
Shares issued for services	402,000
Cash consideration \| $	$ 0
CSO
Stockholder's equity (Deficit)
Shares issued for services	320,000
Cash consideration \| $	$ 0
Series A-1 Preferred Stock
Stockholder's equity (Deficit)
Preferred stock, authorized						24,000,000					24,000,000
Preferred stock, par value ( in dollars per share) \| $ / shares						$ 0.0001					$ 0.0001
Series B Preferred Stock
Stockholder's equity (Deficit)
Preferred stock, authorized						16,500,000					14,130,435					14,130,435
Preferred stock, par value ( in dollars per share) \| $ / shares						$ 0.0001					$ 0.0001
Warrants to purchase shares						559,969					839,952
Proceeds from Issuance of Warrants \| $				$ 1,200
Warrants outstanding						0

STOCKHOLDERS' EQUITY (DEFICIT) - Preferred Stock (Details) - USD ($)												3 Months Ended		9 Months Ended		12 Months Ended	13 Months Ended
	Dec. 20, 2020	Jun. 10, 2020	Jun. 08, 2020	Jan. 31, 2020	Jan. 24, 2020	Dec. 15, 2019	Dec. 06, 2019	Nov. 15, 2019	Nov. 13, 2019	Sep. 13, 2019	Dec. 20, 2018	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Sep. 30, 2020	Jan. 29, 2020	Dec. 16, 2019	Nov. 16, 2019	Aug. 14, 2018
Stockholder's equity (Deficit)
Issuance of common stock												$ 9,432,000	$ 331,700
Preferred stock, authorized														60,000,000		60,000,000	60,000,000		60,000,000
Proceeds														$ 3,000,000	$ 1,571,400
Additional paid-in capital														$ 27,525,500		$ 13,965,000	$ 27,525,500
Series A-1 Preferred Stock
Stockholder's equity (Deficit)
Advance received on issuance of preferred stock																					$ 900,000
Interest rate (as a percent)																					6.50%
Shares issued											2,032,749
Issuance of common stock	$ 912,800
Original issue price														$ 0.50			$ 0.50
Preferred stock, authorized														24,000,000		24,000,000	24,000,000
Series B Preferred Stock
Stockholder's equity (Deficit)
Shares issued		1,063,939	335,982	1,739,130	4,782,608		87,050		2,173,913	7,608,696				6,521,738		9,782,609
Issuance of common stock				$ 800,000	$ 2,200,000				$ 1,000,000	$ 3,500,000
Original issue price														$ 0.46			$ 0.46
Preferred stock, authorized										14,130,435				16,500,000		14,130,435	16,500,000
Proceeds																	$ 1,571,400
Warrants to purchase									0.0859					0.0859			0.0859
Warrant purchase price									$ 0.003494					$ 0.003494			$ 0.003494
Annual dividend rate						6.00%
Accretion of dividend							$ 40,000
Additional paid-in capital							$ (40,000)
Effective interest rate (as a percent)														28.00%			28.00%			14.60%
Series B Preferred Stock \| Minimum
Stockholder's equity (Deficit)
Aggregate purchase price								$ 1,000,000
Series B Preferred Stock \| Maximum
Stockholder's equity (Deficit)
Preferred stock, authorized																		16,500,000

STOCKHOLDERS' EQUITY (DEFICIT) - Initial value of issuances allocated to Series B Preferred Stock and the Series B Preferred Stock (Details) - USD ($)	3 Months Ended			9 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Stockholder's equity (Deficit)
Series B Preferred Stock discount amortization			$ 16,400	$ 692,700	$ 16,400
Series B Preferred Stock
Stockholder's equity (Deficit)
Balance at beginning of period	$ 2,007,000	$ 1,306,900		1,306,900
Series B Preferred Stock proceeds		3,000,000	1,571,400
Series B Preferred Stock discount		(2,668,300)	(1,202,600)		(1,202,600)
Series B Preferred Stock discount amortization	324,300	368,400	16,400
Balance at end of period	$ 2,331,300	$ 2,007,000	$ 385,200	$ 2,331,300	$ 385,200

STOCKHOLDERS' EQUITY (DEFICIT) - Conversion of Convertible Promissory Notes (Details) - USD ($)			9 Months Ended
	Aug. 15, 2019	Dec. 20, 2018	Sep. 30, 2020	Dec. 31, 2019	Dec. 16, 2019
Stockholder's equity (Deficit)
Preferred stock, authorized			60,000,000	60,000,000	60,000,000
Series A-1 Preferred Stock
Stockholder's equity (Deficit)
Preferred stock, authorized			24,000,000	24,000,000
Series A-1 Preferred Stock \| Convertible promissory notes
Stockholder's equity (Deficit)
Preferred stock, authorized		24,000,000
Outstanding principal and interest	$ 405,300	$ 7,541,600
Conversion price		$ 0.40
Number of shares converted		18,854,033	935,519
Principal amount	$ 250,000
Coupon rate	17.00%		6.00%
Conversion of accounts payable into convertible promissory notes			$ 134,800
Conversion rate	0.43%		0.43%

STOCKHOLDERS' EQUITY (DEFICIT) - Warrants Underlying Series B Preferred Stock (Details) - USD ($)								3 Months Ended		9 Months Ended	12 Months Ended
	Jun. 10, 2020	Jun. 08, 2020	Jan. 31, 2020	Jan. 24, 2020	Dec. 06, 2019	Nov. 13, 2019	Sep. 13, 2019	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2020	Dec. 31, 2019
Stockholder's equity (Deficit)
Warrants to purchase shares	1,063,939	335,982
Fair value of warrants reflected as additional paid-in capital								$ 2,668,300	$ 1,202,500
Proceeds from issuance of warrants	$ 3,700	$ 1,200								$ 4,900
Warrants outstanding										0	839,952
Series B Preferred Stock
Stockholder's equity (Deficit)
Warrants to purchase						0.0859				0.0859
Warrant purchase price (in dollars per share)						$ 0.003494				$ 0.003494
Warrant expiration term										10 years
Shares issued	1,063,939	335,982	1,739,130	4,782,608	87,050	2,173,913	7,608,696			6,521,738	9,782,609
Warrants to purchase shares										559,969	839,952
Fair value of warrants reflected as additional paid-in capital	$ 3,700									$ 5,208,700
Proceeds from issuance of warrants		$ 1,200
Warrants outstanding										0
Series B Preferred Stock \| Warrants exercise beginning six months after the listing date
Stockholder's equity (Deficit)
Warrant exercise percentage										30.00%
Series B Preferred Stock \| Warrants exercise beginning nine months after the listing date
Stockholder's equity (Deficit)
Warrant exercise percentage										30.00%

STOCKHOLDERS' EQUITY (DEFICIT) - Estimate the fair value of the warrants (Details)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Estimate the fair value of the warrants
Expected dividend yield	0.00%
Warrant
Estimate the fair value of the warrants
Risk-free interest rate, minimum	1.54%	1.81%
Risk-free interest rate, maximum	1.88%	1.84%
Expected volatility, minimum	71.95%	72.18%
Expected volatility, maximum	72.71%	72.20%
Expected life (years)	10 years	10 years
Expected dividend yield	0.00%	0.00%

STOCK-BASED COMPENSATION - Weighted-average Assumptions (Details)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Weighted average assumptions
Expected dividend yield	0.00%
Stock Incentive Plan 2017 \| Stock Options
Weighted average assumptions
Risk-free interest rate, minimum	0.15%	1.61%
Risk-free interest rate, maximum	2.92%	2.92%
Expected volatility, minimum	72.29%	72.29%
Expected volatility, maximum	82.52%	78.16%
Expected dividend yield	0.00%	0.00%
Stock Incentive Plan 2017 \| Stock Options \| Minimum
Weighted average assumptions
Expected life (years)	4 years 11 months 4 days	4 years 11 months 4 days
Stock Incentive Plan 2017 \| Stock Options \| Maximum
Weighted average assumptions
Expected life (years)	6 years 25 days	6 years 3 days

STOCK-BASED COMPENSATION - Summarizes Stock Options Outstanding (Details) - Stock Incentive Plan 2017 - Stock Options - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Stock option activity
Options outstanding at beginning of year	598,083	520,517
Granted	86,536	209,505
Exercised		(1,432)
Cancelled and forfeited	(66,109)	(94,318)
Balance at September 30	618,510	634,272
Options exercisable at September 30:			390,075	389,584
Weighted average exercise price
Options outstanding at beginning of year	$ 11.11	$ 8.64
Granted	17.95	17.47
Exercised		6.64
Cancelled and forfeited	15.06	11.40
Balance at September 30	11.58	11.15
Options exercisable at September 30:			$ 8.51	$ 7.82
Weighted average grant date fair value for options granted during the year:	$ 17.43	$ 11.28
Additional stock option information
Options outstanding, number	618,510	634,272	618,510	634,272
Options outstanding, weighted average remaining contractual life	7 years 9 months 14 days	7 years 11 months 19 days
Options outstanding, weighted average exercise price	$ 11.58	$ 11.15	$ 11.58	$ 11.15
Options outstanding, aggregate intrinsic value			$ 1,787,200	$ 4,009,000
Options exercisable, number			390,075	389,584
Options exercisable, weighted average exercise price			$ 8.51	$ 7.82
Options exercisable, aggregate intrinsic value			$ 1,521,400	$ 3,761,100

STOCK-BASED COMPENSATION - Stock Option Modifications (Details)			3 Months Ended		9 Months Ended
	Aug. 20, 2020 employee $ / shares shares	Jun. 08, 2020 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) $ / shares shares	Sep. 30, 2019 USD ($) $ / shares shares
Stock compensation expense
Stock compensation expense		$ 9,432,000
Stock Options \| Four Nonemployees \| General and administrative
Stock compensation expense
Stock compensation expense			$ 71,600
Incremental compensation costs			19,700
Stock Incentive Plan 2017 \| Stock Options
Stock compensation expense
Stock compensation expense			329,000	$ 105,000	$ 1,228,000	$ 209,000
Cancelled and forfeited \| shares					66,109	94,318
Number of persons to whom shares were cancelled \| employee	4
Granted \| shares					86,536	209,505
Weighted average grant date fair value for options granted during the year: \| $ / shares					$ 17.43	$ 11.28
Total unrecognized stock compensation expense			2,088,400		$ 2,088,400
Unvested Shares to be recognized over the remaining weighted-average vesting period					2 years 8 months 19 days
Stock Incentive Plan 2017 \| Stock Options \| Research and development
Stock compensation expense
Stock compensation expense			169,000	43,000	$ 980,000	$ 85,000
Stock Incentive Plan 2017 \| Stock Options \| General and administrative
Stock compensation expense
Stock compensation expense			$ 160,000	$ 62,000	$ 248,000	$ 124,000
Stock Incentive Plan 2017 \| Stock Options \| Four Nonemployees
Stock compensation expense
Cancelled and forfeited \| shares	15,792
Granted \| shares	21,112
Weighted average grant date fair value for options granted during the year: \| $ / shares	$ 12.41
Options vested \| shares	3,959

STOCK-BASED COMPENSATION - Schedule 2017 Stock Incentive Plan-Restricted Stock Units (Details)			3 Months Ended	9 Months Ended
	Aug. 20, 2020 item individual $ / shares shares	Jun. 08, 2020 USD ($)	Sep. 30, 2020 USD ($) $ / shares shares	Sep. 30, 2020 $ / shares shares	Sep. 30, 2019 shares	Jan. 31, 2017 shares
Restricted stock units
Stock compensation expense \| $		$ 9,432,000
Stock Incentive Plan 2017 \| RSU
Restricted stock units
Authorized shares \| shares						1,708,615
Number of persons to whom shares were cancelled \| individual	5
Restricted stock unit activity
Granted \| shares	946,245			1,655,579	0
Vested \| shares	0			0	0
Cancelled and forfeited \| shares	(709,334)			(709,334)
Nonvested RSUs at September 30 \| shares			946,245	946,245
Weighted average grant day fair value per share
Granted \| $ / shares				$ 15.23
Cancelled and forfeited \| $ / shares	$ 19.00			19.00
Nonvested RSUs at September 30 \| $ / shares	$ 12.41		$ 12.41	$ 12.41
Stock Incentive Plan 2017 \| RSU \| Research and development
Restricted stock units
Stock compensation expense \| $			$ 299,000
Incremental compensation costs \| $			65,600
Stock Incentive Plan 2017 \| RSU \| General and administrative
Restricted stock units
Stock compensation expense \| $			621,000
Incremental compensation costs \| $			$ 141,200
Stock Incentive Plan 2017 \| RSU \| Non-Employees
Restricted stock units
Number of persons to whom shares were cancelled \| item	2
Stock Incentive Plan 2017 \| RSU \| Employees
Restricted stock units
Number of persons to whom shares were cancelled \| item	3

INCOME TAXES (Details) - USD ($)	3 Months Ended		9 Months Ended
INCOME TAXES (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
INCOME TAXES
Effective tax rate from continuing operations	0.00%	0.00%	0.00%	0.00%
Income tax provision	$ 0	$ 0	$ 0	$ 0
Federal statutory rate			21.00%
Realized deferred tax assets	$ 0		$ 0

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

RELATED PARTY TRANSACTIONS (Details)						9 Months Ended
RELATED PARTY TRANSACTIONS (Details)	Jun. 19, 2020 USD ($) shares	Jun. 08, 2020 USD ($) shares	Sep. 04, 2019 USD ($)	Jul. 20, 2018 USD ($) item	Apr. 18, 2018 USD ($)	Sep. 30, 2020 USD ($) agreement	Sep. 30, 2019 USD ($)
Related Party Transaction [Line Items]
Number of separate consulting agreements \| agreement						2
CSO
Related Party Transaction [Line Items]
Consulting fee per hour				$ 400
Threshold number of hours per month for which consulting fees are entitled \| item				19
Consulting fee paid						$ 579,700	$ 135,900
Shares issued for services rendered \| shares	320,000
Cash consideration	$ 0
CFO and COO
Related Party Transaction [Line Items]
Consulting fee paid						$ 140,000	$ 23,800
Shares issued for services rendered \| shares	402,000
Cash consideration	$ 0
Consulting fee per month			$ 10,000		$ 2,500
CMO
Related Party Transaction [Line Items]
Shares issued for services rendered \| shares		3,106
Cash consideration		$ 0
Employee
Related Party Transaction [Line Items]
Shares issued for services rendered \| shares		430
Cash consideration		$ 0

SUBSEQUENT EVENTS - IPO and Preferred Stock Conversion (Details) - USD ($)										9 Months Ended	12 Months Ended
	Oct. 15, 2020	Jun. 10, 2020	Jun. 08, 2020	Jan. 31, 2020	Jan. 24, 2020	Dec. 06, 2019	Nov. 13, 2019	Sep. 13, 2019	Dec. 20, 2018	Sep. 30, 2020	Dec. 31, 2019
Subsequent events
Proceeds from issuance of stock	$ 12,372,700
Series A-1 Preferred Stock
Subsequent events
Shares issued									2,032,749
Series B Preferred Stock
Subsequent events
Shares issued		1,063,939	335,982	1,739,130	4,782,608	87,050	2,173,913	7,608,696		6,521,738	9,782,609
Subsequent Event \| IPO
Subsequent events
Proceeds from issuance of stock	12,372,700
Underwriting discounts and commissions	1,275,000
Offering expenses	$ 1,352,300
Shares issued	1,250,000
Share price	$ 12.00
Subsequent Event \| IPO \| Series A-1 Preferred Stock
Subsequent events
Stock issued on conversion	624,594
Subsequent Event \| IPO \| Series B Preferred Stock
Subsequent events
Stock issued on conversion	469,136

SUBSEQUENT EVENTS - Lease Facility Renewal (Details)	Nov. 19, 2020 USD ($) item	Sep. 30, 2020 USD ($)
Future minimum commitments
2021		$ 85,400
Total		$ 149,500
Subsequent Event
Subsequent events
Notice period required for cancellation of lease	90 days
Number of months base rent due as a termination payment if cancellation option exercised \| item	3
Future minimum commitments
2021	$ 179,800
2022	269,700
2023	274,200
2024	230,400
Total	$ 954,100