Annual report pursuant to Section 13 and 15(d)

Company Description and Summary of Significant Accounting Policies (Tables)

v3.22.1
Company Description and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2021
Company Description and Summary of Significant Accounting Policies [Abstract]  
Fair Value of Financial Instruments Measured on a Recurring Basis
The fair value of financial instruments measured on a recurring basis is as follows (in thousands):
 
   
As of December 31, 2021
  
Description
  
Total
  
Level 1
  
Level 2
  
Level 3
  
Assets:
                  
Short-term investments
  
$
219
    
$
219
    
$
—
    
$
—
  
Total assets at fair value
  
$
219
    
$
219
    
$
—
    
$
—
  

   
As of December 31, 2020
  
Description
  
Total
  
Level 1
  
Level 2
  
Level 3
  
Liabilities:
                  
Warrant liabilities
  
$
27,964
    
$
—
    
$
—
    
$
27,964
  
Total liabilities at fair value
  
$
27,964
    
$
—
    
$
—
    
$
27,964
  
Fair Value, Investments Measured on a Recurring Basis
The following table provides a roll-forward of investments measured at fair value on a recurring basis using observable level 1 inputs for the year ended December 31, 2021 and 2020 (in thousands):

 
  
2021
    
2020
  
Short-term investments
            
Balance as of beginning of period
  
$
—
    
$
—
  
Receipt of investments related to license agreement
    
289
      
—
  
Unrealized loss
    
(70
)
    
—
  
Balance as of end of period
  
$
219
    
$
—
  
Warrant Liabilities and Premium Conversion Derivatives Measured at Fair Value
The following table provides a roll-forward of the warrant liabilities and premium conversion derivatives measured at fair value on a recurring basis using unobservable level 3 inputs for the years ended December 31,  2021 and 2020 (in thousands):

 
  
2021
     2020
 		 
Warrant liabilities
            
Balance as of beginning of period
  
$
27,964
    
$
—
  
Value assigned to warrants upon in connection with pre-merger financing
    
—
      
25,821
  
Issuance of warrants to former Rexahn stockholders classified as a liability
    
—
      
768
  
Cash settlement of warrant liabilities
    
—
      
(506
)
Change in fair value of warrant liabilities
    
33,829
      
1,945
  
Reclassification of warrants from liability to equity
    
(61,793
)
    
(64
)
Balance as of end of period
  
$
—
    
$
27,964
  

   
2021
    
2020
  
Premium conversion derivatives
            
Balance as of beginning of period
  
$
—
    
$
2,714
  
Value assigned to the underlying derivatives in connection with convertible notes
    
—
      
831
  
Revaluation due to convertible note extinguishment
    
—
      
(3,086
)
Change in fair value of premium conversion derivatives
    
—
      
(459
)
Balance as of end of period
  
$
—
    
$
—