Fair Value Measurements (Tables)
|
9 Months Ended |
Sep. 30, 2020 |
|---|
| Fair Value Disclosures [Abstract] |
|
| Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis |
The Company’s assets and liabilities measured at fair value on a recurring basis at September 30, 2020 consisted of the following:
|
|
|
Fair Value Measurement at September 30, 2020 |
|
|
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Recurring fair value measurements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash equivalents - money market funds |
|
$ |
47,191,204 |
|
|
$ |
47,191,204 |
|
|
$ |
— |
|
|
$ |
— |
|
|
Short-term investments |
|
|
63,282,716 |
|
|
|
— |
|
|
|
63,282,716 |
|
|
|
— |
|
|
Contingent consideration liability (see Note 8) |
|
|
25,070,000 |
|
|
|
— |
|
|
|
— |
|
|
|
25,070,000 |
|
|
Warrant liability |
|
|
10,000 |
|
|
|
— |
|
|
|
— |
|
|
|
10,000 |
|
The Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2019 consisted of the following:
|
|
|
Fair Value Measurement at December 31, 2019 |
|
|
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Recurring fair value measurements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash equivalents - money market funds |
|
$ |
8,034,640 |
|
|
$ |
8,034,640 |
|
|
$ |
— |
|
|
$ |
— |
|
|
Short-term investments |
|
|
28,277,386 |
|
|
|
— |
|
|
|
28,277,386 |
|
|
|
— |
|
|
Contingent consideration liability (see Note 8) |
|
|
2,750,000 |
|
|
|
— |
|
|
|
— |
|
|
|
2,750,000 |
|
|
Warrant liability |
|
|
10,000 |
|
|
|
— |
|
|
|
— |
|
|
|
10,000 |
|
|
| Schedule of Short Term Investments |
Short-term investments had quoted prices at September 30, 2020 as shown below:
|
|
|
September 30, 2020 |
|
|
|
|
Amortized Cost |
|
|
Unrealized Gain (Loss) |
|
|
Market Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States treasury securities |
|
$ |
3,995,784 |
|
|
$ |
936 |
|
|
$ |
3,996,720 |
|
|
Financial and corporate debt securities |
|
|
49,283,352 |
|
|
|
(3,045 |
) |
|
|
49,280,307 |
|
|
Certificate of deposit |
|
|
10,005,689 |
|
|
|
— |
|
|
|
10,005,689 |
|
|
Total |
|
$ |
63,284,825 |
|
|
$ |
(2,109 |
) |
|
$ |
63,282,716 |
|
|
| Schedule of Reconciliation of Beginning and Ending Balance of Contingent Consideration Liability |
The fair value of contingent payments classified as a liability was based on the regulatory milestones described in Note 8 and estimated using the Monte Carlo simulation valuation model with Level 3 inputs. The following table is a reconciliation of the beginning and ending balance of contingent consideration liability:
|
Balance at December 31, 2019 |
$ |
2,750,000 |
|
|
Change in fair value |
|
22,320,000 |
|
|
Balance at September 30, 2020 |
$ |
25,070,000 |
|
|
| Summary of Assumptions Used to Estimate Fair Value of Contingent Payments |
The assumptions used to estimate the fair value of contingent payments that are classified as a liability at September 30, 2020 include the following significant unobservable inputs:
|
Unobservable input |
|
Value or Range |
|
|
Weighted Average |
|
|
|
|
|
|
|
|
|
|
|
|
Expected volatility |
|
113.7% |
|
|
113.7% |
|
|
Risk-free interest rate |
|
0.13% |
|
|
0.13% |
|
|
Cost of capital |
|
30% |
|
|
30% |
|
|
Discount for lack of marketability |
|
12%-18% |
|
|
15% |
|
|
Probability of payment |
|
63%-100% |
|
|
91% |
|
|
Projected year of payment |
|
2020-2022 |
|
|
2020 |
|
|