If we are unable to obtain funding on a timely basis or on acceptable terms, we may be
required to significantly curtail, delay or discontinue one or more of our research or development programs or the commercialization of any approved product candidates.
There is substantial doubt relating to our ability to continue as a going concern.
We have recurring net losses, which have resulted in an accumulated deficit of $143.3 million as of March 31, 2022 and
$130.1 million as of June 30, 2021. We have incurred a net loss of $13.9 million for the fiscal year ended June 30, 2021 and $13.1 million for the nine-month period ended March 31, 2022. At March 31, 2022 and
June 30, 2021, we had cash and cash equivalents of $8.6 million and $19.8 million, respectively. The Company does not have adequate liquidity to fund its operations for the next 12 months without raising additional funds and the
success of raising such additional capital is not solely within the control of the Company. These factors raise substantial doubt about our ability to continue as a going concern.
We will continue to seek to raise additional working capital through public equity, private equity or debt financings. If we fail to raise
additional working capital, or do so on commercially unfavorable terms, it would materially and adversely affect our business, prospects, financial condition and results of operations, and we may be unable to continue as a going concern. Future
reports from our independent registered public accounting firm may also contain statements expressing substantial doubt about our ability to continue as a going concern. If we seek additional financing to fund our business activities in the future
and there remains substantial doubt about our ability to continue as a going concern, investors or other financing sources may be unwilling to provide additional funding to us on commercially reasonable terms, if at all.
Risk Relating to this Offering
You will
experience immediate dilution as a result of this offering and may experience additional dilution in the future.
The public
offering price for shares of our common stock and common warrants (or pre-funded warrants and common warrants in lieu thereof) offered hereby will be substantially higher than the net tangible book
value per share of our common stock immediately after this offering. If you purchase common stock and common warrants (or pre-funded warrants and common warrants in lieu thereof) in this offering,
you will incur substantial and immediate dilution in the net tangible book value of your investment. Net tangible book value per share represents the amount of total tangible assets less total liabilities, divided by the number of shares of our
common stock then outstanding. To the extent that options that are currently outstanding are exercised, there will be further dilution to your investment. Exercise of the pre-funded warrants or the
common warrants will also dilute your investment. We may also issue additional common stock, options and other securities in the future that may result in further dilution of your shares of our common stock.
There is no public market for the pre-funded warrants or the common warrants being offered by us in
this offering.
There is no established public trading market for
the pre-funded warrants or the common warrants being offered in this offering, and we do not expect a market to develop. In addition, we do not intend to apply to list
the pre-funded warrants or the common warrants on any national securities exchange or other nationally recognized trading system, including The Nasdaq Capital Market. Without an active market, the
liquidity of the pre-funded warrants or the common warrants will be limited.
Holders of the pre-funded warrants or the common warrants offered hereby will have no rights as common stockholders with respect to the common stock underlying
the pre-funded warrants or the common warrants, as applicable, until such holders exercise their pre-funded warrants or common warrants, as
applicable, and acquire our common stock, except as otherwise provided in the pre-funded warrants or the common warrants, as applicable.
Until holders of the pre-funded warrants or the common warrants acquire our common stock upon
exercise of the pre-funded warrants or the common warrants, as applicable, holders of pre-funded warrants or common
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