Quarterly report pursuant to Section 13 or 15(d)

Liquidity and Management's Plan

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Liquidity and Management's Plan
6 Months Ended
Mar. 31, 2021
Going Concern Uncertainty and Management's Plan [Abstract]  
LIQUIDITY AND MANAGEMENT'S PLAN

2. LIQUIDITY AND MANAGEMENT'S PLAN

 

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company experienced negative cash flows from operations of $13,835,881 for the six months ended March 31, 2021. As a result of the Company's recent common stock offerings and common stock warrant exercises in its second fiscal quarter of 2021, the Company had working capital of $101,989,545 at March 31, 2021. The Company estimates that its available cash resources will be sufficient to fund its operations through March 2023.

 

The Company has generated no operating revenue to date and has principally raised capital through the issuance of debt and equity instruments to finance its operations. However, the Company's continued operations beyond March 2023, including its development plans for Mino-Lok, Mino-Wrap, Halo-Lido and Novecite, will depend on its ability to obtain regulatory approval to market Mino-Lok and generate substantial revenue from the sale of Mino-Lok and on its ability to raise additional capital through various potential sources, such as equity and/or debt financings, strategic relationships, or out-licensing of its products. However, the Company can provide no assurances on future sales of Mino-Lok or that financing or strategic relationships will be available on acceptable terms, or at all. If the Company is unable to raise sufficient capital, find strategic partners or generate substantial revenue from the sale of Mino-Lok, there would be a material adverse effect on its business. Further, the Company expects in the future to incur additional expenses as it continues to develop its product candidates, including regulatory approval, and protect its intellectual property.