14. STOCKHOLDERS EQUITY

12 Months Ended

Sep. 30, 2019

STOCKHOLDERS' EQUITY

14. STOCKHOLDERS' EQUITY

Exercise of Warrants

During the years ended September 30, 2019 and 2018, the Company received proceeds of approximately $14.5 million and $9.4 million, respectively, from the exercise of warrants, as detailed in Note 5. Upon exercise, 6,677,519 and 4,072,109 shares of common stock, respectively, were issued during the years ended September 30, 2019 and 2018.

Sales of Securities

On July 2, 2018, the Company closed on a registered direct offering and concurrent private placement with institutional investors. The Company received net proceeds of approximately $4.7 million. The Company issued approximately 3,900,000 registered shares of common stock at a purchase price of $1.30 per share. Concurrently in a private placement, the Company issued to the investors warrants to purchase up to 3,900,000 shares of its common stock. For each share of common stock purchased in the registered direct offering, the investors in the private placement received an unregistered warrant to purchase one share of common stock. The warrants have an exercise price of $1.75 per share and expire on January 2, 2024. The Company also issued 195,000 Series WW warrants to the placement agent. These Series WW warrants have an exercise price of $1.63 per share and expire on July 2, 2023. The Company allocated the proceeds received to the shares and the warrants on a relative fair value basis. As a result of such allocation, the Company determined the relative fair value of the Series VV warrants to be approximately $1.88 million and the relative fair value of the Series WW warrants to be approximately $0.1 million. The Series VV and WW warrants qualify for equity treatment in accordance with ASC 815.

On February 5, 2018, the Company sold 2,501,145 shares of its common stock at a price of $1.87 per share for total proceeds of approximately $4.7 million. The purchasers of the common stock also received Series TT warrants which allow the purchasers to acquire up to 1,875,860 shares of the Company’s common stock. The warrants are exercisable at a fixed price of $2.24 per share and expire on February 5, 2023. The shares and warrants were registered on February 28, 2018. The Company allocated the proceeds received to the shares and the Series TT warrants on a relative fair value basis. As a result of such allocation, the Company determined the relative fair value of the Series TT warrants to be approximately $1.56 million. The Series TT warrants qualify for equity treatment in accordance with ASC 815.

On December 19, 2017 the Company sold 1,289,478 shares of its common stock at a price of $1.90 per share for total proceeds of approximately $2.45 million. The purchasers of the common stock also received warrants which allow the purchasers to acquire up to 1,289,478 shares of the Company’s common stock. The warrants are exercisable at a fixed price of $2.09 per share and expire on December 18, 2022. The Company allocated the proceeds received to the shares and the Series SS warrants on a relative fair value basis. As a result of such allocation, the Company determined the relative fair value of the Series SS warrants to be approximately $1.0 million. The Series SS warrants qualify for equity treatment in accordance with ASC 815.

Other Equity Transactions

The Company has entered into Securities Purchase Agreements with Ergomed plc, one of its Clinical Research Organizations responsible for managing the Company’s Phase 3 clinical trial, to facilitate a partial payment of the amounts due Ergomed. Under the Agreements, the Company issued Ergomed shares of common stock that would reduce Ergomed’s bills in an amount equal to the net proceeds from the sales of the shares issued to Ergomed. Upon issuance, the Company expenses the full value of the shares as Other non-operating gain/loss and subsequently offsets the expense as amounts are realized through the sale by Ergomed and reduces accounts payable to Ergomed. Any amounts received from the sale of the shares in excess of the amounts due Ergomed will be applied towards the satisfaction of any future amounts owed.

During the year ended September 30, 2019 and 2018, the Company issued Ergomed 750,000 and 2,260,000 shares, respectively. On December 31, 2018, the expiration date of the prior agreement, Ergomed returned 564,905 unsold shares for cancellation. The following table summarizes the Other Non-Operating Gains (Loss) for the years ended September 30 relating to these agreements:

	2019		2018
Amount realized through the resale of shares	$	3,945,528	$	3,230,796
Fair value of shares upon issuance		3,400,000		5,507,400
Other non-operating gain (loss)	$	545,528	$	(2,276,604	)

As of September 30, 2019, Ergomed holds 198,000 shares for resale. As of September 30, 2018, Ergomed held 918,900 shares.