0001411685
2020-04-01
2020-06-30
0001411685
2020-03-31
0001411685
2020-06-30
0001411685
us-gaap:SeriesAPreferredStockMember
2020-06-30
0001411685
us-gaap:SeriesAPreferredStockMember
2020-03-31
0001411685
us-gaap:SeriesBPreferredStockMember
2020-06-30
0001411685
us-gaap:SeriesBPreferredStockMember
2020-03-31
0001411685
us-gaap:SeriesCPreferredStockMember
2020-06-30
0001411685
us-gaap:SeriesCPreferredStockMember
2020-03-31
0001411685
2019-03-31
0001411685
2019-06-30
0001411685
us-gaap:CommonStockMember
2020-03-31
0001411685
us-gaap:CommonStockMember
2020-06-30
0001411685
us-gaap:AdditionalPaidInCapitalMember
2020-03-31
0001411685
us-gaap:AdditionalPaidInCapitalMember
2020-06-30
0001411685
us-gaap:TreasuryStockMember
2020-03-31
0001411685
us-gaap:TreasuryStockMember
2020-06-30
0001411685
us-gaap:RetainedEarningsMember
2020-03-31
0001411685
us-gaap:RetainedEarningsMember
2020-06-30
0001411685
VTGN:NotesPayable1Member
2020-06-30
0001411685
VTGN:NotesPayable1Member
2020-03-31
0001411685
2019-04-01
2019-06-30
0001411685
us-gaap:RetainedEarningsMember
2020-04-01
2020-06-30
0001411685
us-gaap:ResearchAndDevelopmentExpenseMember
2020-04-01
2020-06-30
0001411685
us-gaap:ResearchAndDevelopmentExpenseMember
2019-04-01
2019-06-30
0001411685
us-gaap:GeneralAndAdministrativeExpenseMember
2020-04-01
2020-06-30
0001411685
us-gaap:GeneralAndAdministrativeExpenseMember
2019-04-01
2019-06-30
0001411685
us-gaap:AdditionalPaidInCapitalMember
2020-04-01
2020-06-30
0001411685
us-gaap:CommonStockMember
2020-04-01
2020-06-30
0001411685
us-gaap:SeriesAPreferredStockMember
2020-04-01
2020-06-30
0001411685
us-gaap:SeriesAPreferredStockMember
2019-04-01
2019-06-30
0001411685
us-gaap:SeriesBPreferredStockMember
2019-04-01
2019-06-30
0001411685
us-gaap:SeriesBPreferredStockMember
2020-04-01
2020-06-30
0001411685
VTGN:IncentivePlanMember
2020-04-01
2020-06-30
0001411685
VTGN:IncentivePlanMember
2019-04-01
2019-06-30
0001411685
us-gaap:WarrantMember
2020-04-01
2020-06-30
0001411685
us-gaap:WarrantMember
2019-04-01
2019-06-30
0001411685
us-gaap:SeriesCPreferredStockMember
2020-04-01
2020-06-30
0001411685
us-gaap:SeriesCPreferredStockMember
2019-04-01
2019-06-30
0001411685
VTGN:Warrant1Member
2020-04-01
2020-06-30
0001411685
VTGN:Warrant2Member
2020-04-01
2020-06-30
0001411685
VTGN:Warrant3Member
2020-04-01
2020-06-30
0001411685
VTGN:Warrant4Member
2020-04-01
2020-06-30
0001411685
VTGN:Warrant5Member
2020-04-01
2020-06-30
0001411685
VTGN:Warrant6Member
2020-04-01
2020-06-30
0001411685
VTGN:Warrant7Member
2020-04-01
2020-06-30
0001411685
VTGN:Warrant8Member
2020-04-01
2020-06-30
0001411685
VTGN:Warrant1Member
2020-06-30
0001411685
VTGN:Warrant2Member
2020-06-30
0001411685
VTGN:Warrant3Member
2020-06-30
0001411685
VTGN:Warrant4Member
2020-06-30
0001411685
VTGN:Warrant5Member
2020-06-30
0001411685
VTGN:Warrant6Member
2020-06-30
0001411685
VTGN:Warrant7Member
2020-06-30
0001411685
VTGN:Warrant8Member
2020-06-30
0001411685
us-gaap:CommonStockMember
2019-04-01
2019-06-30
0001411685
us-gaap:CommonStockMember
2019-03-31
0001411685
us-gaap:CommonStockMember
2019-06-30
0001411685
us-gaap:AdditionalPaidInCapitalMember
2019-04-01
2019-06-30
0001411685
us-gaap:AdditionalPaidInCapitalMember
2019-03-31
0001411685
us-gaap:AdditionalPaidInCapitalMember
2019-06-30
0001411685
us-gaap:TreasuryStockMember
2019-04-01
2019-06-30
0001411685
us-gaap:TreasuryStockMember
2019-03-31
0001411685
us-gaap:TreasuryStockMember
2019-06-30
0001411685
us-gaap:RetainedEarningsMember
2019-04-01
2019-06-30
0001411685
us-gaap:RetainedEarningsMember
2019-03-31
0001411685
us-gaap:RetainedEarningsMember
2019-06-30
0001411685
us-gaap:EquipmentMember
2020-06-30
0001411685
VTGN:TenantImprovementsMember
2020-06-30
0001411685
us-gaap:ComputerEquipmentMember
2020-06-30
0001411685
us-gaap:OfficeEquipmentMember
2020-06-30
0001411685
us-gaap:EquipmentMember
2020-03-31
0001411685
VTGN:TenantImprovementsMember
2020-03-31
0001411685
us-gaap:ComputerEquipmentMember
2020-03-31
0001411685
us-gaap:OfficeEquipmentMember
2020-03-31
0001411685
us-gaap:SeriesAPreferredStockMember
2020-04-01
2020-06-30
0001411685
us-gaap:SeriesAPreferredStockMember
2019-04-01
2019-06-30
0001411685
us-gaap:SeriesAPreferredStockMember
2020-03-31
0001411685
us-gaap:SeriesAPreferredStockMember
2020-06-30
0001411685
us-gaap:SeriesAPreferredStockMember
2019-03-31
0001411685
us-gaap:SeriesAPreferredStockMember
2019-06-30
0001411685
us-gaap:SeriesBPreferredStockMember
2020-04-01
2020-06-30
0001411685
us-gaap:SeriesBPreferredStockMember
2019-04-01
2019-06-30
0001411685
us-gaap:SeriesBPreferredStockMember
2020-03-31
0001411685
us-gaap:SeriesBPreferredStockMember
2020-06-30
0001411685
us-gaap:SeriesBPreferredStockMember
2019-03-31
0001411685
us-gaap:SeriesBPreferredStockMember
2019-06-30
0001411685
us-gaap:SeriesCPreferredStockMember
2020-04-01
2020-06-30
0001411685
us-gaap:SeriesCPreferredStockMember
2019-04-01
2019-06-30
0001411685
us-gaap:SeriesCPreferredStockMember
2020-03-31
0001411685
us-gaap:SeriesCPreferredStockMember
2020-06-30
0001411685
us-gaap:SeriesCPreferredStockMember
2019-03-31
0001411685
us-gaap:SeriesCPreferredStockMember
2019-06-30
0001411685
us-gaap:TreasuryStockMember
2020-04-01
2020-06-30
0001411685
VTGN:Plan2019Member
2020-06-30
0001411685
VTGN:Plan2019Member
2020-04-01
2020-06-30
0001411685
2020-08-13
0001411685
VTGN:Plan2019Member
srt:MinimumMember
2020-06-30
0001411685
VTGN:Plan2019Member
srt:MaximumMember
2020-06-30
0001411685
VTGN:Plan2019Member
srt:MinimumMember
2020-04-01
2020-06-30
0001411685
VTGN:Plan2019Member
srt:MaximumMember
2020-04-01
2020-06-30
0001411685
VTGN:NotesPayable2Member
2020-06-30
0001411685
VTGN:NotesPayable2Member
2020-03-31
0001411685
VTGN:CatoResearchLtdMember
2020-04-01
2020-06-30
0001411685
VTGN:CatoResearchLtdMember
2019-04-01
2019-06-30
0001411685
VTGN:CatoResearchLtdMember
2020-06-30
0001411685
VTGN:CatoResearchLtdMember
2020-03-31
0001411685
VTGN:PherinPharmaceuticalsIncMember
2020-06-30
0001411685
VTGN:PherinPharmaceuticalsIncMember
2020-03-31
0001411685
VTGN:ConsultingAgreementMember
2020-04-01
2020-06-30
0001411685
VTGN:ConsultingAgreementMember
2019-04-01
2019-06-30
0001411685
VTGN:ConsultingAgreementMember
2020-06-30
0001411685
VTGN:ConsultingAgreementMember
2020-03-31
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
xbrli:pure
VistaGen Therapeutics, Inc.
0001411685
10-Q
2020-06-30
false
--03-31
Yes
Non-accelerated Filer
false
true
false
Yes
NV
001-37761
Q1
2021
73998057
1580200
2178900
225100
633000
1355100
1545900
13100300
8297100
47800
47800
355100
263900
3579600
3492100
209600
184200
5772300
6166900
2771300
2673100
3300
3400
313400
325700
56500
428900
561500
607800
1836600
1307300
8730400
9105500
3000
2100
3715600
3631100
5011800
5347600
0
124700
11501700
11778600
500
500
1200
1200
2300
2300
5772300
6166900
-5729400
-5611700
7075200
1625800
49300
55900
200092800
20330700
-3968100
-3968100
-201907400
-205034200
42800
42800
192129900
192890400
-3968100
-3968100
-181133400
-187343300
500
500
500
500
1200
1200
1200
1200
2300
2300
2300
2300
-201907400
-205034200
3968100
3968100
200092800
203330700
49300
55900
0.001
.001
10000000
10000000
500000
500000
4000000
4000000
3000000
3000000
500000
500000
1160240
1160240
2318012
2318012
500000
500000
1160240
1160240
2318012
2318012
0.001
.001
175000000
175000000
49348707
55937472
49348707
55937472
135665
135665
3121800
6224000
1390600
1910100
1731200
4313900
-3121800
-6224000
600
0
-3126800
-6209900
2400
2400
-3124400
-6207500
335800
302500
-3462600
-6512400
-.07
-.15
51321355
42622965
0
10300
0
69100
674600
1063000
226600
390600
448000
672400
25400
26200
-2806700
-4761400
-434400
40200
-72200
-61100
-87500
-81700
-39200
80900
0
-300000
0
0
2997500
-41800
49900
41100
800
700
224400
0
2790600
0
29400
0
62600
0
190800
-4803200
335800
320600
322200
230200
49348707
55937472
42758630
42758630
500000
500000
500000
500000
1160240
1160240
1160240
1160240
2318012
2318012
2318012
2318012
1954000
335800
302500
335800
302500
674600
1063000
674600
1063000
-3126800
-6209900
-3126800
-6209900
125000
50000
49800
200
6201995
2747500
2741300
6200
28125
12600
12600
233645
125000
124800
200
-29400
-29400
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">VistaGen Therapeutics. Inc., a Nevada corporation
(which may be referred to as <i>VistaGen</i>, the <i>Company</i>, <i>we</i>, <i>our</i>, or <i>us</i>), is a biopharmaceutical
company committed to developing new generation therapies for anxiety, depression and certain additional central nervous system
(<i>CNS</i>) disorders for which we believe current treatment options are inadequate, resulting in high unmet need in multiple
CNS markets worldwide. Our pipeline includes three clinical-stage CNS product candidates, PH94B, PH10 and AV-101, each with a differentiated
mechanism of action, an exceptional safety profile in all clinical studies to date, and therapeutic potential in multiple CNS indications.
We are currently preparing PH94B for Phase 3 clinical development for the acute treatment of anxiety in adult patients with social
anxiety disorder (<i>SAD</i>). We are also preparing PH94B for an exploratory Phase 2A open-label clinical study in adult patients
experiencing adjustment disorder with anxiety (<i>AjDA</i>), including, but not limited to, AjDA as a result of the diverse impact
of the COVID-19 pandemic (e.g., anxiety regarding health and safety, economic loss, unemployment, social isolation, remote education
and work, etc.), as well as recent social unrest. PH10 has completed successful exploratory Phase 2A clinical development as a
new generation treatment for major depressive disorder (<i>MDD</i>). We are currently preparing PH10 for Phase 2B clinical development
as a potential stand-alone treatment for MDD that is fundamentally different from all current MDD therapies. In several clinical
studies, we have established that AV-101 is orally available and has an excellent safety profile. Based on successful preclinical
studies involving AV-101 alone and in combination with probenecid, we are currently assessing additional preclinical data and potential
Phase 1B development of AV-101, in combination with probenecid, for treatment of several CNS indications involving abnormal function
of the NMDAR (<i>N-methyl-D-aspartate receptor</i>). Additionally, our subsidiary, VistaStem Therapeutics (<i>VistaStem</i>), has
pluripotent stem cell technology focused on assessing and developing potential small molecule new chemical entities <i>(NCEs</i>)
for our CNS pipeline, or for out-licensing, by utilizing <i>CardioSafe</i> 3D™, VistaStem’s customized human heart
cell-based cardiac bioassay system. Our goal is to become a fully integrated biopharmaceutical company that develops and commercializes
innovative medicine for large and growing neuropsychiatry and neurology markets worldwide where we believe current treatments are
inadequate to meet the needs of millions of patients.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Our Product Candidates</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">PH94B is a novel, first-in-class neuroactive
nasal spray with therapeutic potential in a wide range of indications involving anxiety or phobia. Self-administered in microgram-level
doses, PH94B does not require systemic uptake and distribution to produce its rapid-onset anti-anxiety effects. We are initially
developing PH94B as a potential rapid-onset (within 15 minutes), non-sedating, non-addictive new generation acute treatment of
anxiety in adult patients with SAD, and as an acute treatment for adult patients with AjDA. With its rapid-onset pharmacology,
lack of systemic exposure and excellent safety profile, we believe PH94B also has potential as a novel treatment for postpartum
anxiety (<i>PPA</i>), post-traumatic stress disorder (<i>PTSD</i>), preoperative anxiety (<i>POA</i>), panic disorder and other
anxiety-related disorders. The FDA has granted Fast Track designation for development of PH94B as a potential acute treatment of
anxiety in adults with SAD.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">PH10 is an odorless, fast-acting synthetic neurosteroid
delivered intranasally that has therapeutic potential in a wide range of neuropsychiatric indications involving depression. Self-administered
in microgram-level doses, PH10 does not require systemic uptake and distribution to produce its rapid-onset antidepressant effects.
We are initially developing PH10 as a potential rapid-onset, non-sedating, non-addictive new generation stand-alone treatment of
MDD. With its rapid-onset pharmacology, lack of systemic exposure, and exceptional safety profile in all studies to date, we believe
PH10 also has potential as a novel treatment for postpartum depression (<i>PPD</i>), treatment-resistant depression (<i>TRD</i>)
and suicidal ideation (<i>SI</i>).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">AV-101 (4-Cl-KYN) is a novel, oral prodrug that
targets the NMDAR, an ionotropic glutamate receptor in the brain. Abnormal NMDAR function is associated with numerous CNS diseases
and disorders. AV-101’s active metabolite, 7-chloro-kynurenic acid (<i>7-Cl-KYNA</i>), is a potent and selective full antagonist
of the glycine coagonist site of the NMDAR that inhibits the function of the NMDAR, but does not block the NMDAR receptor like
ketamine and other NMDAR antagonists. We have demonstrated in clinical trials that AV-101 is orally-available, well-tolerated and
does not cause dissociative or hallucinogenic psychological side effects or safety concerns similar to those that may be caused
by other NMDAR antagonists. With its exceptionally few side effects and excellent safety profile, we believe AV-101 has potential
to be an oral, new generation treatment for multiple CNS indications involving abnormal NMDAR function and where current treatments
are inadequate to meet high unmet patient needs. The FDA has granted Fast Track designation for development of AV-101 as both a
potential adjunctive treatment for MDD and as a non-opioid treatment for neuropathic pain (<i>NP</i>). We are currently assessing
AV-101’s potential in combination with probenecid, to treat both MDD and NP, as well as dyskinesia associated with levodopa
therapy for Parkinson’s disease, epilepsy and suicidal ideation.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">VistaStem is applying pluripotent stem cell
(<i>hPSC</i>) technology and CardioSafe 3D, our customized cardiac bioassay system, to discover and develop, novel small molecule
NCEs for our CNS pipeline or for out-licensing. To advance potential cell therapy (<i>CT</i>) and regenerative medicine (<i>RM</i>)
applications of VistaStem’s hPSC technologies related to heart cells, in 2016, we licensed to BlueRock Therapeutics LP, a
next generation CT/RM company formed jointly by Bayer AG and Versant Ventures, rights to develop and commercialize certain proprietary
technologies relating to the production of cardiac stem cells for the treatment of heart disease. As a result of its acquisition
of BlueRock Therapeutics in 2019, Bayer AG now holds rights to develop and commercialize VistaStem’s hPSC technologies relating
to the production of heart cells for the treatment of heart disease (the <i>Bayer Agreement</i>), which is described more
completely in Note 11, <i>Sublicensing and Collaboration Agreements</i>.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our product candidates are protected through
a combination of patents, trade secrets, and proprietary know-how. If approved, they may also be eligible for periods of regulatory
exclusivity. Our intellectual property portfolio includes issued U.S. and foreign patents, as well as U.S. and foreign patent applications.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Subsidiaries</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As noted above, VistaStem, a California corporation,
is our wholly-owned subsidiary. Our Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q (<i>Report</i>)
also include the accounts of VistaStem and VistaStem’s two wholly-owned inactive subsidiaries, Artemis Neuroscience, Inc.,
a Maryland corporation, and VistaStem Canada, Inc., a corporation organized under the laws of Ontario, Canada.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited Condensed Consolidated
Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (<i>U.S.
GAAP</i>) for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly,
they do not contain all of the information and footnotes required for complete consolidated financial statements. In the opinion
of management, the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, which include only
normal recurring adjustments, necessary to present fairly our interim financial information. The accompanying Condensed Consolidated
Balance Sheet at March 31, 2020 has been derived from our audited consolidated financial statements at that date but does not include
all disclosures required by U.S. GAAP.  The operating results for the three months ended June 30, 2020 are not necessarily
indicative of the operating results to be expected for our fiscal year ending March 31, 2021, or for any other future interim or
other period.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited Condensed Consolidated
Financial Statements and notes to the Condensed Consolidated Financial Statements contained in this Report should be read in conjunction
with our audited Consolidated Financial Statements for our fiscal year ended March 31, 2020 contained in our Annual Report on Form
10-K, as filed with the Securities and Exchange Commission (<i>SEC</i>) on June 29, 2020.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited Condensed Consolidated
Financial Statements have been prepared assuming we will continue as a going concern. As a clinical-stage biopharmaceutical company
having not yet developed commercial products or achieved sustainable revenues, we have experienced recurring losses and negative
cash flows from operations resulting in a deficit of approximately $205.0 million accumulated from inception (May 1998) through
June 30, 2020. We expect losses and negative cash flows from operations to continue for the foreseeable future as we engage in
further development of PH94B, PH10 and AV-101, execute our drug rescue programs and pursue potential drug development and regenerative
medicine opportunities.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Since our inception in May 1998 through June
30, 2020, we have financed our operations and technology acquisitions primarily through the issuance and sale of our equity and
debt securities for cash proceeds of approximately $86.1 million, as well as from an aggregate of approximately $17.7 million of
government research grant awards (excluding the fair market value of government sponsored and funded clinical trials), strategic
collaboration payments, intellectual property licensing and other revenues. Additionally, we have issued equity securities with
an approximate value at issuance of $38.2 million in noncash acquisitions of product licenses and in settlements of certain liabilities,
including liabilities for professional services rendered to us or as compensation for such services.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><i> </i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Recent Developments</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At June 30, 2020, we
had cash and cash equivalents of approximately $1.5 million. As more completely described in Note 8, <i>Capital Stock</i>, on
March 24, 2020, we entered into a purchase agreement and a registration rights agreement with Lincoln Park Capital Fund
(<i>Lincoln Park</i>) pursuant to which Lincoln Park committed to purchase up to $10,250,000 of our common stock at
market-based prices over a period of 24 months (the <i>LPC Agreement</i>). To satisfy our obligations under the registration
rights agreement, we filed a Registration Statement on Form S-1 (the <i>LPC Registration Statement</i>) with the Securities
and Exchange Commission (the <i>SEC</i>) on March 31, 2020, which the SEC declared effective on April 14, 2020 (Registration
No. 333-237514). Subsequent to the effectiveness of the LPC Registration Statement, through June 30, 2020, we sold 6,201,995
registered shares of our common stock to Lincoln Park and received gross cash proceeds of $2,840,200. Refer to Note 12, <i>Subsequent
Events</i>, for dislosure of additional sales of our common stock under the LPC Agreement subsequent to June 30, 2020.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">As more
completely described in Note 11, <i>Sublicensing and Collaboration Agreements</i>, and in Note 12, <i>Subsequent Events</i>, in
June 2020, we entered into a strategic licensing and collaboration agreement for the clinical development and commercialization
of PH94B for acute treatment of anxiety in adults with SAD and other potential anxiety-related disorders, with EverInsight Therapeutics
Inc., a biopharmaceutical company focused on developing and commercializing transformative pharmaceutical products for patients
in Greater China and other parts of Asia (the <i>EverInsight Agreement</i>). Under the terms of the EverInsight Agreement, EverInsight
agreed to make a non-dilutive upfront license payment of $5.0 million to us. Upon successful development and commercialization
of PH94B, we are also eligible to receive up to $172 million in additional development and commercial milestone payments, in addition
to royalties on commercial sales. In August 2020, we received the $5.0 million non-dilutive upfront license payment from EverInsight,
which resulted in net cash proceeds to us of approximately $4.655 million after the sublicense payment we agreed to make to Pherin
Pharmaceuticals, Inc. (<i>Pherin</i>) pursuant to our PH94B license from Pherin, and payment for consulting services related to
the EverInsight Agreement.</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As described more completely in Note 12, <i>Subsequent
Events</i>, on August 2, 2020, we entered into an underwriting agreement (the <i>Underwriting Agreement</i>) pursuant to which
we sold to the Underwriter, in an underwritten public offering (the <i>Public Offering</i>), an aggregate of 15,625,000 shares
(the S<i>hares</i>) of our common stock for a public offering price of $0.80 per Share, resulting in gross proceeds to us of $12,500,000.
The Public Offering closed on August 5, 2020. Under the terms of the Underwriting Agreement, we granted to the Underwriter a 45-day over-allotment option
(the <i>Over-Allotment Option</i>) to purchase up to an additional 2,343,750 Shares (the <i>Option Shares</i>) at a public offering
price of $0.80 per share. On August 5, 2020, the Underwriter exercised the Over-Allotment Option with respect to an aggregate of
2,243,250 Option Shares (the <i>Exercised Option Shares</i>). We completed the sale of the Exercised Option Shares on August 7,
2020, which resulted in additional gross proceeds to us of $1,794,600. Net proceeds to us from the sale of the Shares and the Exercised
Option Shares, after deducting underwriting discounts and commissions and offering expenses payable by us, were approximately $12.9
million.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Going Concern</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Although the transactions
described above have generated approximately $20.0 million in net cash procceds for us between April 1, 2020 and the date of
this Report, we believe it is possible that our cash position at June 30, 2020, together with such net proceeds will not be
sufficient to fund our planned operations for the twelve months following the issuance of these financial statements, which
raises substantial doubt that we can continue as a going concern. During the next twelve months, subject to securing
appropriate and adequate additional financing, we plan to prepare for and launch (i) a pivotal Phase 3 clinical trial of
PH94B for acute treatment of anxiety in adult patients with SAD, (ii) a small exploratory open-label Phase 2A study of PH94B
for acute treatment of adult patients with AjDA, and (iii) several nonclinical studies involving PH94B, PH10 and AV-101.
When necessary and advantageous, we plan to raise additional capital, through the sale of our equity securities in one or
more (i) private placements to accredited investors, (ii) public offerings and/or (iii) in strategic licensing and
development collaborations involving one or more of our drug candidates in markets outside the United States, similar to the
Everinsight Agreement. Subject to certain restrictions, our Registration Statement on Form S-3 (Registration No. 333-234025)
(the <i>S-3 Registration Statement</i>), which became effective on October 7, 2019, remains available for future sales of our
equity securities in one or more public offerings from time to time. While we may make additional sales of our equity
securities under the S-3 Registration Statement, we do not have an obligation to do so.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As we have been in the past, we expect that,
when and as necessary, we will be successful in raising additional capital from the sale of our equity securities either in one
or more public offerings or in one or more private placement transactions with individual accredited investors and institutions.
In addition to the potential sale of our equity securities, we may also seek to enter research, development and/or commercialization
collaborations similar to the EverInsight Agreement and the Bayer Agreement that could generate revenue or provide funding, including
non-dilutive funding, for development of one or more of our CNS product candidate programs. We may also seek additional government
grant awards or agreements similar to our prior agreement with the U.S. National Institutes of Health (<i>NIH</i>), Baylor University
and the U.S. Department of Veterans Affairs in connection with certain government-sponsored studies of AV-101. Such strategic collaborations
may provide non-dilutive resources to advance our strategic initiatives while reducing a portion of our future cash outlays and
working capital requirements. We may also pursue intellectual property arrangements similar to the EverInsight Agreement and the
Bayer Agreement with other parties. Although we may seek additional collaborations that could generate revenue and/or provide non-dilutive
funding for development of our product candidates, as well as new government grant awards and/or agreements, no assurance can be
provided that any such collaborations, awards or agreements will occur in the future.  </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our future working capital requirements will
depend on many factors, including, without limitation, potential impacts related to the current COVID-19 pandemic, the scope and
nature of opportunities related to our success and the success of certain other companies in nonclinical and clinical trials, including
our development and commercialization of our current product candidates and various applications of our stem cell technology platform,
the availability of, and our ability to obtain, government grant awards and agreements, and our ability to enter into collaborations
on terms acceptable to us. To further advance the clinical development of PH94B, PH10, and AV-101 and, to a lesser extent, our
stem cell technology platform, as well as support our operating activities, we plan to continue to carefully manage our routine
operating costs, including our employee headcount and related expenses, as well as costs relating to regulatory consulting, contract
manufacturing, research and development, investor and public relations, business development, legal, intellectual property acquisition
and protection, public company compliance and other professional services and operating costs. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Notwithstanding the foregoing, there can be
no assurance that our current strategic collaborations under the EverInsight Agreement and the Bayer Agreement, will generate revenue
from future potential milestone payments, or that future financings or government or other strategic collaborations will be available
to us in sufficient amounts, in a timely manner, or on terms acceptable to us, if at all. If we are unable to obtain substantial
additional financing on a timely basis when needed in 2021 or thereafter, our business, financial condition, and results of operations
may be harmed, the price of our stock may decline, we may be required to reduce, defer, or discontinue certain of our research
and development activities and we may not be able to continue as a going concern.  As noted above, these Condensed Consolidated
Financial Statements do not include any adjustments that might result from the negative outcome of this uncertainty.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Use of Estimates</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in conformity
with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities,
the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those estimates.  Significant estimates include
those relating to revenue recognition, share-based compensation, right-of-use assets and lease liabilities and assumptions that
have been used historically to value warrants and warrant modifications.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Revenue Recognition</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We generate revenue from collaborative research
and development arrangements, licensing and technology transfer agreements, including strategic licenses or sublicenses, and government
grants. We expect that our primary source of revenue beginning in the second fiscal quarter of our current fiscal year will be
from the EverInsight Agreement involving clinical development and commercialization of PH94B for acute treatment of anxiety in
adults with SAD, and potentially other anxiety-related disorders, in Greater China, South Korea, and Southeast Asia, which is described
in more detail in Note 11, <i>Sublicensing and Collaboration Agreements.</i> The terms of the EverInsight Agreement include a $5.0
million non-refundable upfront license fee, potential payments based upon achievement of certain development and commercial milestones,
and royalties on product sales. We also have the Bayer Agreement, pursuant to which we recorded sublicense revenue in the third
quarter of our fiscal year ended March 31, 2017, also described in Note 11, <i>Sublicensing and Collaborative Agreements</i>, as
a potential revenue generating arrangement.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under Accounting Standards Codification (<i>ASC</i>)
Topic 606, <i>Revenue from Contracts with Customers (Topic 606)</i>, we recognize revenue when our customers obtain control of
promised goods or services, in an amount that reflects the consideration that we expect to receive in exchange for those goods
or services. To determine revenue recognition for arrangements that we determine are within the scope of Topic 606, we perform
the following five steps: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract;
(iii) determine the transaction price, including variable consideration, if any; (iv) allocate the transaction price to the performance
obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. We only apply the five-step
model to contracts when it is probable that we will collect the consideration to which we are entitled in exchange for the goods
or services we transfer to a customer.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Performance Obligations</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We assess whether each promised good or service
is distinct for the purpose of identifying the performance obligations in the contract. This assessment involves subjective determinations
and requires judgments about the individual promised goods or services and whether such components are separable from the other
aspects of the contractual relationship. In assessing whether a promised good or service is distinct in the evaluation of a collaboration
arrangement subject to Topic 606, we consider factors such as the research, manufacturing and commercialization capabilities of
the collaboration partner and the availability of the associated expertise in the general marketplace.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Collaboration arrangements can have several
promised goods or services including a license for our intellectual property, product supply and development and regulatory services.
When the customer could not obtain the intended benefit of the contract from a promised good or service without one or more other
promises in the contract, the promise is determined to be not distinct in the context of the contract and is combined with other
promises until the combined promises are distinct to identify performance obligations. We have determined that the Everinsight
Agreement includes a single combined performance obligation that includes both the license to intellectual property and development
and regulatory services.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Arrangements can include promises for optional
additional items, which are considered marketing offers and are accounted for as separate contracts when the customer elects such
options. Arrangements that include a promise for future supply of product for either clinical development or commercial supply
and optional research and development services at the customer’s or the Company’s discretion are generally considered
as options. We assess whether these options provide a material right to the customer and if so, such material rights are accounted
for as separate performance obligations. When the customer exercises an option, any additional payments related to the option are
recorded in revenue when the customer obtains control of the goods or services.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Transaction Price</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Arrangements may have both fixed and variable
consideration. For collaboration agreements, the non-refundable upfront fees and product supply selling prices are considered fixed,
while milestone payments are considered variable consideration when determining the transaction price. At the inception of each
arrangement, we evaluate whether the development milestones are considered probable of being achieved and estimate an amount to
be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal
would not occur, the value of the associated milestone is included in the transaction price. Milestone payments that are not within
our control or the licensee’s control, such as approvals from regulators, are generally not considered probable of being
achieved until such approvals are received.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For sales-based royalties, including commercial
milestone payments based on the level of sales, for which the license is deemed to be the predominant item to which the royalties
relate, we recognize revenue at the later of when (a) the related sales occur, or (b) the performance obligation to which some
or all of the royalty has been allocated has been satisfied (or partially satisfied).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In determining the transaction price, we adjust
consideration for the effects of the time value of money if the timing of payments provides us with a significant benefit of financing.
We do not assess whether a contract has a significant financing component if the expectation at contract inception is such that
the period between payment by the licensee and the transfer of the promised goods or services to the licensee will be one year
or less.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Allocation of Consideration</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As part of the accounting for collaboration
arrangements, we must develop assumptions that require judgment to determine the stand-alone selling price of each performance
obligation identified in the contract. The transaction price is allocated to the identified performance obligations in proportion
to their stand-alone selling prices (<i>SSP</i>) on a relative SSP basis. SSP is determined at contract inception and is not updated
to reflect changes between contract inception and satisfaction of the performance obligations. In developing the SSP for a performance
obligation, we consider applicable market conditions and relevant Company-specific factors, including factors that were contemplated
in negotiating the agreement with the customer and estimated costs. We validate the SSP for performance obligations by evaluating
whether changes in the key assumptions used to determine the SSP will have a significant effect on the allocation of arrangement
consideration between multiple performance obligations. Since the EverInsight Agreement includes a single combined performance
obligation that is not distinct, there is no allocation of consideration.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Timing of Recognition</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Significant management judgment is required
to determine the level of effort required under collaboration arrangements and the period over which we expect to complete our
performance obligations under the arrangement. The performance period or measure of progress is estimated at the inception of the
arrangement and re-evaluated in each reporting period. This re-evaluation may shorten or lengthen the period over which revenue
is recognized. Changes to these estimates are recorded on a cumulative catch up basis. Revenue is recognized for products at a
point in time and for licenses of functional intellectual property at the point in time the customer can use and benefit from the
license. For performance obligations that are services, revenue is recognized over time using an output or input method. For performance
obligations that are a combination of licenses to intellectual property and interdependent services, the nature of the combined
performance obligation is considered when determining the method and measure of progress that best represents the satisfaction
of the performance obligation. For the single combined performance obligation of the EverInsight Agreement, the measure of progress
is stand-ready straight-line over the period in which we expect to perform the services related to the license of PH94B.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have recorded no receivables, contract assets,
or contract liabilities as of June 30, 2020 related to the EverInsight Agreement, as there are no rights and obligations as of
that date. In subsequent periods, the difference between revenue recognized to-date and the consideration invoiced to-date will
be recognized as either a contract asset/unbilled revenue (revenue earned exceeds invoices) or a contract liability/deferred revenue
(invoices exceed revenue earned).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Contract Costs</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Subsequent to June 30, 2020, we expect to make
cash payments aggregating $345,000 for sublicense fees which we are obligated to make pursuant to our PH94B license from Pherin,
and fees for consulting services exclusively related to the EverInsight Agreement. Additionally, on June 24, 2020, we issued 233,645
unregistered shares of our common stock, valued at $125,000, as partial compensation for consulting services exclusively related
to the EverInsight Agreement. These sublicense fees and consulting payments were incurred solely as a result of obtaining the EverInsight
Agreement, and will, accordingly, be capitalized as contract acquisition costs. Capitalized contract acquisition costs are amortized
over the period in which we expect to satisfy the performance obligations under the arrangement and will be included in general
and administrative expenses. At June 30, 2020, the $125,000 fair value of the common stock issued has been recorded as a prepaid
asset. In subsequent periods, the aggregate costs of $470,000 incurred to obtain the EverInsight Agreement will be capitalized
as contract acquisition costs and amortized as indicated. In the quarter ended June 30, 2020, no amounts were amortized to expense,
as services have not yet commenced under the arrangement.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Research and Development Expenses</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Research and development expenses are composed
of both internal and external costs.  Internal costs include salaries and employment-related expenses, including stock-based
compensation expense, of scientific personnel and direct project costs.  External research and development expenses consist
primarily of costs associated with clinical and non-clinical development of PH94B, PH10, AV-101, and stem cell research and development
costs, and costs related to the application and prosecution of patents related to those product candidates and, to a lesser extent,
our stem cell technology platform. All such costs are charged to expense as incurred. We also record accruals for estimated ongoing
clinical trial costs. Clinical trial costs represent costs incurred by contract research organizations (<i>CRO</i>s) and clinical
trial sites. Progress payments are generally made to contract research and development organizations, clinical sites, investigators
and other professional service providers. We analyze the progress of clinical trials, including levels of subject enrollment, invoices
received and contracted costs, when evaluating the adequacy of accrued liabilities. Significant judgments and estimates must be
made and used in determining the clinical trial accrual in any reporting period. Actual results could differ from those estimates
under different assumptions. Revisions are charged to research and development expense in the period in which the facts that give
rise to the revision become known. Costs incurred in obtaining product or technology licenses are charged immediately to research
and development expense if the product or technology licensed has not achieved regulatory approval or reached technical feasibility
and has no alternative future uses, as was the case with our acquisition of the exclusive worldwide licenses for PH94B and PH10
from Pherin during our fiscal year ended March 31, 2019.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Stock-Based Compensation</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We recognize compensation cost for all stock-based
awards to employees and non-employee consultants based on the grant date fair value of the award.  We record non-cash,
stock-based compensation expense over the period during which the employee or other grantee is required to perform services in
exchange for the award, which generally represents the scheduled vesting period.  We have not granted restricted stock
awards to employees nor do we have any awards with market or performance conditions. Non-cash expense attributable to compensatory
grants of shares of our common stock to non-employees is determined by the quoted market price of the stock on the date of grant
and is either recognized as fully-earned at the time of the grant or amortized ratably over the term of the related service agreement,
depending on the terms of the specific agreement.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The table below summarizes stock-based compensation
expense included in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months
ended June 30, 2020.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b> Three Months Ended June 30,</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b> 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b> 2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 75%"><font style="font-size: 8pt"> Research and development expense</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">226,600</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">390,600</font></td>
<td style="width: 2%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> General and administrative expense</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">448,000</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">672,400</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Total stock-based compensation expense</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">674,600</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">1,063,000</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Expense amounts reported above include $2,500
and $1,500 in research and development expense and general and administrative expense, respectively, attributable to our 2019 Employee
Stock Purchase Plan for the quarter ended June 30, 2020.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the quarter ended June 30, 2020, we granted
from our 2019 Omnibus Equity Incentive Plan (the <i>2019 Plan</i>) options to purchase an aggregate of 1,945,000 shares of our
common stock at exercise prices at or above the closing market price of our common stock on the date of grant to the independent
members of our Board, our officers and employees and certain consultants. The options vested 25% upon grant with the remaining
shares vesting ratably over two years for independent directors, officers and employees, and over one or two years for consultants.
We valued the options granted during the quarter ended June 30, 2020 using the Black-Scholes Option Pricing Model and the following
assumptions:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt"><b>Assumption:</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Weighted Average</b></font></td>
<td style="padding-bottom: 1.5pt"><b> </b></td>
<td style="padding-bottom: 1.5pt"><b> </b></td>
<td colspan="2" style="border-bottom: black 1pt solid"><p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Range</b></p></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; text-align: justify"><font style="font-size: 8pt">Market price per share at grant date</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">0.41</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">0.40 to 0.54</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Exercise price per share</font></td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">0.41</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">0.40 to 0.55</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Risk-free interest rate</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">0.39</font></td>
<td><font style="font-size: 8pt">%</font></td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font-size: 8pt">0.35% to 0.44</font></td>
<td><font style="font-size: 8pt">%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Expected term in years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">5.36</font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font-size: 8pt">5.20 to 5.94</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Volatility</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">84.10</font></td>
<td><font style="font-size: 8pt">%</font></td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font-size: 8pt">82.93% to 85.85</font></td>
<td><font style="font-size: 8pt">%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Dividend rate</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">0.0</font></td>
<td><font style="font-size: 8pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">0.0</font></td>
<td><font style="font-size: 8pt">%</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Shares</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,945,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"><b>Fair Value per share</b></font></td>
<td> </td>
<td><font style="font-size: 8pt"><b>$</b></font></td>
<td style="text-align: right"><font style="font-size: 8pt"><b>0.28</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At June 30, 2020, there were stock options outstanding
under our 2016 Equity Incentive Plan (the <i>2016 Plan</i>) and our 2019 Plan to purchase 11,948,088 shares of our common stock
at a weighted average exercise price of $1.21 per share. At that date, there were also 4,785,162 shares of our common stock available
for future issuance under the 2019 Plan. There are no additional shares available for issuance under our 2016 Plan.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Leases, Right-of-Use Assets and Lease Liabilities</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 1, 2019, we adopted Financial Accounting
Standards Board (<i>FASB</i>) Accounting Standards Update (<i>ASU</i>) No. 2016-02, <i>Leases</i>, which replaced the
existing guidance in Accounting Standards Codification (<i>ASC</i>) 840, “Leases”, and its subsequent amendments including
ASU No. 2018-11, <i>Leases (Topic 842):</i> Targeted Improvements (<i>ASC 842</i>) using the modified transition method.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We determine whether an arrangement is an operating
or financing lease at contract inception. Operating lease assets represent our right to use an underlying asset for the lease term
and operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets
and liabilities are recognized at the commencement date of the lease based upon the present value of lease payments over the lease
term. When determining the lease term, we include options to extend or terminate the lease when it is reasonably certain that we
will exercise that option. In determining the present value of the lease payments, we use the interest rate implicit in the lease
when it is readily determinable and we use our estimated incremental borrowing rate based upon information available at the commencement
date when the implicit rate is not readily determinable.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The lease payments used to determine our operating
lease assets include lease incentives and stated rent increases and may include escalation or other clauses linked to rates of
inflation or other factors when determinable and are recognized in our operating lease assets in our condensed consolidated balance
sheets.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our operating leases are reflected in right
of use asset – operating leases, other current liabilities and non-current operating lease liability in our condensed consolidated
balance sheets. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Short-term
leases, defined as leases that have a lease term of 12 months or less at the commencement date, are excluded from this treatment
and are recognized on a straight-line basis over the term of the lease.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our accounting for financing leases, previously
referred to as “capital leases” under earlier guidance, remained substantially unchanged with our adoption of ASC 842.
Financing leases are included in property and equipment, net and as current and non-current financing lease liabilities in our
condensed consolidated balance sheets. Refer to Note 10, <i>Commitments and Contingencies,</i> for additional information regarding
ASC 842 and its impact on our condensed consolidated financial statements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Comprehensive Loss</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have no components of other comprehensive
loss other than net loss, and accordingly our comprehensive loss is equivalent to our net loss for the periods presented.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Loss per Common Share</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic net loss attributable to common stockholders
per share of common stock excludes the effect of dilution and is computed by dividing net loss increased by the accrual of dividends
on outstanding shares of our Series B 10% Convertible Preferred Stock (<i>Series B Preferred</i>), by the weighted-average number
of shares of common stock outstanding for the period. Diluted net loss attributable to common stockholders per share of common
stock reflects the potential dilution that could occur if securities or other contracts to issue shares of common stock were exercised
or converted into shares of common stock. In calculating diluted net loss attributable to common stockholders per share, we have
generally not increased the denominator to include the number of potentially dilutive common shares assumed to be outstanding during
the period using the treasury stock method because the result is antidilutive.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of our net loss for all periods
presented, potentially dilutive securities were excluded from the computation of diluted net loss per share, as their effect would
be antidilutive. Potentially dilutive securities excluded in determining diluted net loss attributable to common stockholders per
common share are as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>At June 30,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>At March 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%"><font style="font-size: 8pt">Series A Preferred stock issued and outstanding (1)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">750,000</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">750,000</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Series B Preferred stock issued and outstanding (2)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,160,240</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,160,240</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Series C Preferred stock issued and outstanding (3)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,318,012</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,318,012</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Outstanding options under the Company's Amended and Restated 2016 (formerly 2008) Stock Incentive Plan and 2019 Omnibus Equity Incentive Plan</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">11,948,088</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">10,003,088</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Outstanding warrants to purchase common stock</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">26,589,834</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">26,555,281</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Total</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"> </td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">42,766,174</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"> </td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">40,786,621</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">____________</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">(1) Assumes exchange under the terms of the October 11, 2012 Note
Exchange and Purchase Agreement, as amended</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">(2) Assumes exchange under the terms of the Certificate of Designation
of the Relative Rights and Preferences of the Series B 10% Convertible Preferred Stock, effective May 5, 2015; excludes shares
of unegistered common stock issuable in payment of dividends on Series B Preferred upon conversion</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">(3) Assumes exchange under the terms of the Certificate of Designation
of the Relative Rights and Preferences of the Series C Convertible Preferred Stock, effective January 25, 2016</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Fair Value Measurements</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We do not use derivative instruments for hedging
of market risks or for trading or speculative purposes. We carried no assets or liabilities that are measured on a recurring basis
at fair value at June 30, 2020 or March 31, 2020.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Recent Accounting Pronouncements</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other than as described in our Form 10-K for
our fiscal year ended March 31, 2020, we do not expect that accounting standards that have been issued or proposed by the Financial
Accounting Standards Board <i>(FASB</i>) or other standards-setting bodies that do not require adoption until a future date will
have a material impact on our consolidated financial statements upon adoption.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">Prepaid expenses and other current assets are composed of the following
at June 30, 2020 and March 31, 2020:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b> June 30,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b> March 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b> 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b> 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%"><font style="font-size: 8pt"> Clinical and nonclinical materials and contract services</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">115,200</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">115,200</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Fair value of securities issued for professional services</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">125,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Insurance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">391,200</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">107,200</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> All other</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,600</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2,700</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">633,000</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">225,100</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">Property and equipment is composed of the following at June 30, 2020
and March 31, 2020:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b> June 30,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b> March 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%"><font style="font-size: 8pt"> Laboratory equipment</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">892,500</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">892,500</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Tenant improvements</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">214,400</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">214,400</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Computers and network equipment</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">54,600</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">54,600</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Office furniture and equipment</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">84,600</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">84,600</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,246,100</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,246,100</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Accumulated depreciation and amortization</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(1,061,900</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(1,036,500</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Property and equipment, net</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">184,200</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">209,600</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Included in amounts reported above for office
furniture and equipment is the right-of-use asset related to a financing lease of certain office equipment. Amounts associated
with assets subject to the financing lease at June 30, 2020 and March 31, 2020 are as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>June 30,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>March 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%"><font style="font-size: 8pt">Office equipment subject to financing lease</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">14,700</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">14,700</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Accumulated depreciation</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(10,100</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(9,400</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Net book value of office equipment subject to</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">   financing lease</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">4,600</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">5,300</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">Accrued expenses are composed of the following at June 30, 2020 and
March 31, 2020:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b> June 30,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b> March 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Accrued expenses for clinical and nonclinical</font></td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%"><font style="font-size: 8pt">      materials, development and contract services</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">397,100</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">462,300</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Accrued professional services</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">194,600</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">76,500</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> All other</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">16,100</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">22,700</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">607,800</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">561,500</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">The following table summarizes our unsecured promissory notes at
June 30, 2020 and March 31, 2020:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>June 30, 2020</b>  </font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>March 31, 2020</b>  </font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt">Principal</font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt">Accrued</font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt">Principal</font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt">Accrued</font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Balance</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Interest</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Total</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Balance</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Interest</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Total</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">   7.30% and 6.30% Notes payable</font></td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 36%"><font style="font-size: 8pt">to insurance premium financing company (current)</font></td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; width: 7%; text-align: right"><font style="font-size: 8pt">328,800</font></td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; width: 7%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; width: 7%; text-align: right"><font style="font-size: 8pt">328,800</font></td>
<td style="width: 3%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; width: 7%; text-align: right"><font style="font-size: 8pt">56,500</font></td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; width: 7%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; width: 7%; text-align: right"><font style="font-size: 8pt">56,500</font></td>
<td style="width: 3%; padding-bottom: 3pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">  1% Note payable under Paycheck Protection Program</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">224,400</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">400</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">224,800</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">     less: current portion</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(99,700</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(400</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(100,100</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">     Non-current portion</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">124,700</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">124,700</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Total current notes payable</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">428,500</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">400</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">428,900</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">56,500</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">56,500</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2020, we executed a 6.30% promissory
note in the principal amount of $322,200 in connection with certain insurance policy premiums. The note is payable in monthly installments
of $33,200, including principal and interest, through March 2021, and had an outstanding principal balance of $290,800 at June
30, 2020. In February 2020, we executed a 7.30% promissory note in the principal amount of $62,600 in connection with other insurance
policy premiums. That note is payable in monthly installments of $6,500 including principal and interest, through December 2020
and had an outstanding principal balance of $38,000 at June 30, 2020.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In April 2020, we entered into a note payable
agreement (the <i>PPP Loan Agreement</i>) with Silicon Valley Bank as lender (the <i>Lender</i>), pursuant to which we received
net proceeds of $224,400 from a potentially forgivable loan from the U.S. Small Business Administration (<i>SBA</i>) pursuant
to the Paycheck Protection Program (<i>PPP</i>) enacted by Congress under the Coronavirus Aid, Relief, and Economic Security
Act (the <i>CARES Act</i>) administered by the SBA (the <i>PPP Loan</i>). The PPP Loan matures on April 22, 2022. Under the CARES
Act and the PPP Loan Agreement, all payments of both principal and interest are deferred until at least October 22, 2020, after
which time we will be required to make monthly principal payments of approximately $12,500 until maturity, unless the loan is
forgiven prior to maturity. The PPP Loan will accrue interest at a rate of 1.00% per annum, and interest will continue to accrue
throughout the period the PPP Loan is outstanding, or until it is forgiven. The CARES Act (including subsequent guidance issued
by SBA and U.S. Department of the Treasury related thereto) provides that all or a portion of the PPP Loan may be forgiven upon
our request to the Lender, subject to requirements in the PPP Loan Agreement and the CARES Act. While we currently believe that
the use of the PPP Loan proceeds will meet the conditions for forgiveness under the PPP, there can be no assurance that we will
obtain full or partial forgiveness of the loan.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Common Stock Purchase Agreement with Lincoln
Park Capital Fund</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 24, 2020, we entered into a purchase
agreement and a registration rights agreement with Lincoln Park Capital Fund (<i>LPC</i>) pursuant to which LPC committed to purchase
up to $10,250,000 of our common stock at market-based prices over a period of 24 months (the <i>LPC Agreement</i>). On March 24,
2020, we sold 500,000 unregistered shares of our common stock (the <i>Initial Purchase Shares</i>) to LPC under the purchase agreement
at a price of $0.50 per share for gross cash proceeds of $250,000 (the <i>Initial Purchase</i>) and we also issued 750,000 unregistered
shares of our common stock to LPC under the terms of the LPC Agreement for its purchase commitments under the LPC Agreement (the
<i>Commitment Shares</i>). To satisfy our obligations under the registration rights agreement associated with the LPC Agreement,
we filed a Registration Statement on Form S-1 (the <i>LPC Registration Statement</i>) with the SEC on March 31, 2020 (Registration
No. 333-237514), which the SEC declared effective on April 14, 2020 (the <i>Commencement Date</i>). The LPC Registration Statement
included registration of the Initial Purchase Shares and the Commitment Shares. The fair value of the Commitment Shares, $284,400,
determined based on the quoted closing market price of our common stock on March 24, 2020, is a component of deferred offering
costs attributable to this offering, which costs are amortized ratably to additional paid-in capital as we sell shares of our common
stock to LPC under the LPC Agreement. Subsequent to the Commencement Date and through June 30, 2020, we sold an additional 6,201,995
registered shares of our common stock to LPC and received aggregate gross cash proceeds of $2,840,200. At June 30, 2020, there
were approximately 2.1 million registered shares of our common stock remaining available for sale under the LPC Agreement.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On any business day during the term of the LPC
Agreement, we have the right, in our sole discretion, to direct LPC to purchase up to 100,000 shares on such business day (the
“<i>Regular Purchase</i>”) (subject to adjustment under certain circumstances as provided in the LPC Agreement). The
purchase price per share for each such Regular Purchase will be based on prevailing market prices of our common stock immediately
preceding the time of sale as computed under the LPC Agreement. In each case, LPC’s maximum commitment in any single Regular
Purchase may not exceed $1,000,000. In addition to Regular Purchases, provided that we present LPC with a purchase notice for the
full amount allowed for a Regular Purchase, we may also direct LPC to make <font style="color: #212529">accelerated purchases and
additional accelerated purchases as described in the LPC Agreement</font>. Although LPC has no right to require us to sell any
shares of our common stock to LPC, LPC is obligated to make purchases as we direct, subject to certain conditions. In all instances,
we may not sell shares of our common stock to LPC under the LPC Agreement if such sales would result in LPC beneficially owning
more than 9.99% of our common stock. There are no upper limits on the price per share that LPC must pay for shares of our common
stock.  See Note 12, <i>Subsequent Events,</i> for disclosure regarding sales of our common stock under the LPC Agreement
after June 30, 2020.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Sale of Common Stock and Warrants in the
Spring 2020 Private Placement</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In April 2020, in a self-directed private placement,
we sold to an accredited investor units to purchase an aggregate of 125,000 unregistered shares of our common stock and four-year
warrants to purchase 125,000 shares of our common stock at an exercise price of $0.50 per share and we received cash proceeds of
$50,000 (the <i>Spring 2020 Private Placement</i>).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Registration Statement for shares underlying
warrants issued in Private Placements</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 1, 2020, we filed a registration statement
on Form S-3 (Registration No. 333-237968) to register approximately 12.1 million shares of common stock underlying outstanding
warrants that we had issued in earlier private placement offerings, including the Spring 2020 Private Placement, as well as common
stock underlying warrants that had been previously issued to various consultants as full or partial compensation for their services.
Included in the registration statement were shares of our common stock underlying approximately 5.8 million outstanding warrants
to purchase shares of our common stock that had been modified in December 2019 to temporarily reduce, for a period of two years
or, if sooner, until the expiration of the warrant, the exercise price of such warrants to $0.50 per share, in order to more closely
align the exercise price of the warrants with the trading price of our common stock at that time (the <i>Winter 2019 Warrant Modification</i>).
We also registered approximately 0.8 million shares of unregistered outstanding common stock held by former holders of warrants
who had exercised such warrants subsequent to the Winter 2019 Warrant Modification. Further, we registered the 125,000 shares of
common stock issued in the Spring 2020 Private Placement. The SEC declared the registration statement effective on May 13, 2020
(the <i>Warrant Registration Statement</i>). As a result of the effectiveness of this registration statement, the shares of common
stock underlying essentially all of our outstanding warrants have been registered.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Warrants Outstanding</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes warrants outstanding
and exercisable as of June 30, 2020 subsequent to the issuance in the Spring 2020 Private Placement described above. The weighted
average exercise price of outstanding and exercisable warrants at June 30, 2020 is $1.64 per share and $1.80 per share, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Warrants</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Warrants</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Exercise</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Outstanding at</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Exercisable at</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Price</b></font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt"><b>Expiration</b></font></td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>June 30,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>June 30,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>per Share</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td>
<p style="border-bottom: black 0.75pt solid; font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Date</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 20%; text-align: right"><font style="font-size: 8pt">0.50</font></td>
<td style="width: 1%"> </td>
<td style="width: 31%; text-align: center"><font style="font-size: 8pt">3/25/2021 to 4/30/2024</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 20%; text-align: right"><font style="font-size: 8pt">8,151,312</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 20%; text-align: right"><font style="font-size: 8pt">8,026,312</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">0.73</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt">7/25/2025</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">3,870,077</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">0.805</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt">12/31/2022</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">80,431</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">80,431</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">1.50</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt">12/13/2022</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">9,596,200</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">9,596,200</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">1.82</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt">3/7/2023</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,388,931</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,388,931</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">3.51</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt">12/31/2021</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">50,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">50,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">5.30</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt">5/16/2021</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,705,883</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,705,883</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">7.00</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt">9/2/2020 to 3/3/2023</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">747,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">747,000</font></td>
<td> </td></tr>
<tr>
<td colspan="2" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="text-align: right; vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: right; vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: right; vertical-align: bottom"><font style="font-size: 8pt">26,589,834 </font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="text-align: right; vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: right; vertical-align: bottom"><font style="font-size: 8pt"> </font></td>
<td style="text-align: right; vertical-align: bottom"><font style="font-size: 8pt">22,594,757 </font></td>
<td> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At June 30, 2020, with the effectiveness of
the Warrant Registration Statement in May 2020, the shares of common stock underlying essentially all of the outstanding warrants
except those having an exercise price of $7.00 per share have been registered for resale by the warrant holders. The warrants exercisable
at $0.73 per share become exercisable on July 25, 2020. Additionally, no outstanding warrant is subject to any down round anti-dilution
protection features and all of the outstanding warrants are exercisable by the holders only by payment in cash of the stated exercise
price per share.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><i>Contract Research and Development Agreement with Cato Research
Ltd.</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cato Holding Company (<i>CHC</i>), doing business
as Cato BioVentures (<i>CBV</i>), was the parent of Cato Research Ltd. (<i>CRL</i>), now known as Cato Research LLC. CRL is a contract
research, development and regulatory services organization (<i>CRO</i>) that we have in the past, and continue to engage for a
wide range of material aspects related to the nonclinical and clinical development, manufacturing and regulatory affairs associated
with our efforts to develop and commercialize PH94B, PH10, AV-101. In October 2018, CHC completed the sale of CRL to an independent
third party. As a result of this transaction, CHC and/or CBV is no longer affiliated with or has any control over CRL. Prior to
the sale of CRL, CBV held shares of our common stock and at June 30 2020, CBV held approximately 1.7% of our outstanding common
stock.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In July 2017, we entered into a Master Services
Agreement (<i>MSA</i>) with CRL, which replaced a substantially similar May 2007 master services agreement, pursuant to which CRL
may assist us in the evaluation, development, commercialization and marketing of our potential product candidates, and provide
regulatory and strategic consulting services as requested from time to time. Specific projects or services are and will be delineated
in individual work orders negotiated from time-to-time under the MSA. Under the terms of work orders issued pursuant to the July
2017 MSA, we incurred expenses of $124,800 and $1,405,100 during the quarters ended June 30, 2020 and 2019, respectively. At June
30, 2020 and March 31, 2020, we had recorded accounts payable and accrued expenses related to CRL aggregating $422,800 and $578,800,
respectively. We anticipate periodic expenses for CRO services from CRL related to nonclinical and clinical development of, and
regulatory affairs related to PH94B, PH10, AV-101 and other potential product candidates will remain significant in future periods.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>License and Option Agreements with Pherin
Pharmaceuticals, Inc.</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During our fiscal year ended March 31, 2019,
we issued an aggregate of 2,556,361 shares of our unregistered common stock having an issue-date fair market value of $4,250,000
to Pherin to acquire exclusive worldwide licenses to develop and commercialize PH94B and PH10. We recorded the acquisition of the
licenses as research and development expense during our fiscal year ended March 31, 2019. During the quarters ended June 30, 2020
and 2019, we recorded $10,000 and $30,000, respectively, as research and development expense for monthly support payments to Pherin
under the terms of the PH94B and PH10 license agreements. Our liability for such monthly support payments terminated in April 2020
under the terms of the PH10 license agreement. We recorded no amounts payable to Pherin at June 30, 2020 or March 31, 2020. At
June 30,2020, Pherin held approximately 2.4% of our outstanding common stock.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Consulting Agreement</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the quarters ended June 30, 2020 and
2019, we engaged a consulting firm headed by one of the independent members of our Board to provide various market research studies,
competitive analyses, and commercial advisory projects for certain of our CNS pipeline candidates pursuant to which we recorded
research and development expense of $15,000 and $27,700 for the quarters ended June 30, 2020 and 2019, respectively. We recorded
accounts payable and accrued expenses of $15,000 at June 30, 2020 and no amounts payable at March 31, 2020 related to these projects
and services.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b><i>Operating Leases</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We lease our headquarters office and laboratory
space in South San Francisco, California under the terms of a lease that expires on July 31, 2022 and that provides an option to
renew for an additional five years at then-current market rates. Consistent with the guidance in Accounting Standards Codification
Topic 842, Leases (<i>ASC 842</i>), beginning April 1, 2019, we recorded this lease in our Condensed Consolidated Balance Sheet
as an operating lease. For the purpose of determining the right-of-use asset and associated lease liability, we determined that
the renewal of this lease is reasonably probable. The lease of our South San Francisco facilities does not include any restrictions
or covenants requiring special treatment under ASC 842.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes the presentation
of the operating lease in our Condensed Consolidated Balance Sheet at June 30, 2020 and March 31, 2020:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>As of June 30, 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>As of March 31, 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"><i>Assets</i></font></td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; padding-left: 0.25in"><font style="font-size: 8pt">Right of use asset – operating lease</font></td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; width: 9%; text-align: right"><font style="font-size: 8pt">3,492,100</font></td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; width: 9%; text-align: right"><font style="font-size: 8pt">3,579,600</font></td>
<td style="width: 1%; padding-bottom: 3pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"><i>Liabilities</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in"><font style="font-size: 8pt">Current operating lease obligation</font></td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">325,700</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">313,400</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in"><font style="font-size: 8pt">Non-current operating lease obligation</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">3,631,100</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">3,715,600</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Total operating lease liability</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">3,956,800</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">4,029,000</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes the effect of
operating lease costs in the Company’s condensed consolidated statements of operations for the three months ended June 30,
2020 and 2019:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>For the Three Months Ended</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>For the Three Months Ended</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>June 30, 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>June 30, 2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 54%; padding-left: 0.25in; text-indent: -0.25in"><font style="font-size: 8pt">Operating lease cost</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 18%; text-align: right"><font style="font-size: 8pt">212,800</font></td>
<td style="width: 2%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 18%; text-align: right"><font style="font-size: 8pt">208,800</font></td>
<td style="width: 2%"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">The minimum (base rental) lease payments related to our South San
Francisco operating lease are expected to be as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"><b>Fiscal Years Ending March 31,</b></font></td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 88%"><font style="font-size: 8pt">2021 (remaining nine months)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">488,000</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">2022</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">668,400</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">2023</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">726,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">2024</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">766,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">2025</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">789,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Thereafter</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,931,400</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in"><font style="font-size: 8pt">Total lease expense</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">5,368,800</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Less imputed interest</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(1,412,000</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in"><font style="font-size: 8pt">Present value of operating lease liabilities</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">3,956,800</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">The remaining lease term, including the assumed five-year extension
at the expiration of the current lease period, and the discount rate assumption for our South San Francisco operating lease is
as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>As of June 30, 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 88%"><font style="font-size: 8pt">Assumed remaining lease term in years</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">7.08</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Assumed discount rate</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">8.54</font></td>
<td><font style="font-size: 8pt">%</font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The interest rate implicit in lease contracts
is typically not readily determinable and, as such, we used our estimated incremental borrowing rate based on information available
at the adoption of ASC 842, which represents an internally developed rate that would be incurred to borrow, on a collateralized
basis, over a similar term, an amount equal to the lease payments in a similar economic environment.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Supplemental disclosure of cash flow information
related to our operating lease included in cash flows used by operating activities in the condensed consolidated statements of
cash flows is as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>For the Three Months Ended</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>For the Three Months Ended</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>June 30, 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>June 30, 2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 54%; padding-left: 0.25in; text-indent: -0.25in"><font style="font-size: 8pt">Cash paid for amounts included in the measurement of lease liabilities</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 18%; text-align: right"><font style="font-size: 8pt">197,500</font></td>
<td style="width: 2%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 18%; text-align: right"><font style="font-size: 8pt">188,200</font></td>
<td style="width: 2%"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended June 30, 2020,
we recorded no new right of use assets arising from new lease liabilities.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We also lease a small office in the San Francisco
Bay Area under a month-to-month arrangement at insignificant cost and have made an accounting policy election not to apply the
ASC 842 operating lease recognition requirements to such short-term lease. We recognize the lease payments for this lease in general
and administrative expense over the lease term. We recorded rent expense of $3,500 and $3,400 for the three months ended June
30, 2020 and 2019, respectively, attributable to this lease.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b><i>PH94B Sublicense Agreement with EverInsight</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 24, 2020, we entered into a license
and collaboration agreement (the <i>EverInsight Agreement</i>) with EverInsight Therapeutics Inc., a company incorporated
under the laws of the British Virgin Islands (<i>EverInsight</i>), pursuant to which we granted EverInsight an exclusive
license to develop and commercialize PH94B, our neurosteroid drug candidate for multiple anxiety-related disorders, in Greater
China (which includes Mainland China, Hong Kong, Macau and Taiwan), South Korea and Southeast Asia (which includes Indonesia, Malaysia,
Philippines, Thailand and Vietnam) (collectively, the <i>Territory</i>). We retain exclusive development and commercialization
rights for PH94B in the rest of the world.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the terms of the EverInsight Agreement,
EverInsight is be responsible for all costs related to developing, obtaining regulatory approval of, and commercializing PH94B
for treatment of SAD, and potentially other anxiety-related indications, in the Territory. A joint development committee has been
established between us and EverInsight to coordinate and review the development and commercialization plans with respect to PH94B
in the Territory.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We are responsible to pursue clinical development
and regulatory submissions of PH94B for acute treatment of anxiety in adults with SAD, and potentially other anxiety-related indications,
in the United States on a ‘‘best efforts’’ basis, with no guarantee of success. EverInsight has the option
to participate in the global Phase 3 clinical trials of PH94B and will assume all direct costs and expenses of conducting such
clinical trial in the Territory and a portion of the indirect costs of the global trial. We will transfer all development data
(nonclinical and clinical data) and our regulatory documentation related to PH94B throughout the term as it is developed or generated
or otherwise comes into our control. We will grant to EverInsight a Right of Reference to all of our regulatory documentation and
our development data.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the terms of the EverInsight Agreement,
EverInsight agreed to pay us a non-refundable upfront license payment of $5.0 million within 30 business days of the effective
date of the agreement. Refer to Note 12, <i>Subsequent Events</i>, for disclosure regarding receipt of this payment in August 2020.
Additionally, upon successful development and commercializatipn of PH94B in the Territory, we are eligible to receive milestone
payments of up to $172.0 million. Further, we are eligible to receive royalty payments on a country-by-country basis on net sales
for the later of ten years or the expiration of market or regulatory exclusivity in the jurisdiction, except that payments will
be reduced on a country-by-country basis in the event that there is no market exclusivity in the period. Royalty payments may also
be reduced if there is generic competitive product in the period.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have determined that we have one combined
performance obligation for the license to develop and commercialize PH94B in the Territory and related development and regulatory
services. In addition, EverInsight has an option that will create manufacturing obligations for us during development upon exercise
by EverInsight. These option for manufacturing services was evaluated and determined not to include a material right.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Development and commercialization milestones
were not considered probable at inception and are therefore were excluded from the initial transaction price. The royalties were
excluded from the initial transaction price because they relate to a license of intellectual property and are subject to the royalty
constraint.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We recognize revenue as the combined performance
obligation is satisfied over time using an output method. The measure of progress is stand-ready straight-line over the period
in which we expect to perform the services related to the license of PH94B. As of June 30, 2020, no revenue related to this agreement
has been recognized. As of June 30, 2020, the aggregate amount of the transaction price allocated to the remaining performance
obligation is $5.0 million and will be recognized as revenue as the services are completed, which is expected to occur over approximately
the next four years beginning in the quarter ending September 30, 2020.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Unless earlier terminated due to certain material
breaches of the contract, or otherwise, the License Agreement will expire on a jurisdiction-by-jurisdiction basis
until the latest to occur of expiration of the last valid claim under a licensed patent of PH94B in such jurisdiction, the expiration
of regulatory exclusivity in such jurisdiction or ten years after the first commercial sale of PH94B in such jurisdiction.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>BlueRock Therapeutics Sublicense Agreement</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In December 2016, we entered into an Exclusive
License and Sublicense Agreement with BlueRock Therapeutics, LP, a next generation regenerative medicine company established in
December 2016 by Bayer AG and Versant Ventures (<i>BlueRock Therapeutics</i>), pursuant to which BlueRock Therapeutics received
exclusive rights to utilize certain technologies exclusively licensed by us from University Health Network (<i>UHN</i>) for the
production of cardiac stem cells for the treatment of heart disease. As a result of its acquisition of BlueRock Therapeutics in
2019, Bayer AG now holds the rights to develop and commercialize our hPSC technologies relating to the production of heart cells
for the treatment of heart disease (the <i>Bayer Agreement</i>).  We retained rights to cardiac stem cell technology
licensed from UHN related to small molecule, protein and antibody drug discovery, drug rescue and drug development, including small
molecules with cardiac regenerative potential, as well as small molecule, protein and antibody testing involving cardiac cells.
To date, we have recognized $1.25 million in sublicense revenue, in our fiscal year ended March 31, 2017, under the Bayer Agreement.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have evaluated subsequent events through
the date of this Report and have identified the following matters requiring disclosure:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Registered Public Offering of Common Stock</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 2, 2020, we entered into an underwriting
agreement (the <i>Underwriting Agreement</i>) with Maxim Group, LLC as representative of the underwriters named therein (the <i>Underwriter</i>),
pursuant to which we sold to the Underwriter, in an underwritten public offering (the <i>Public Offering</i>), an aggregate of
15,625,000 shares (the <i>Shares</i>) of our common stock for a public offering price of $0.80 per Share, resulting in gross proceeds
to us of $12,500,000. The Public Offering closed on August 5, 2020 at which time we sold the Shares to the Underwriter. Under the
terms of the Underwriting Agreement, we granted to the Underwriter a 45-day over-allotment option (the <i>Over-Allotment
Option</i>) to purchase up to an additional 2,343,750 Shares (the <i>Option Shares</i>) at a public offering price of $0.80 per
share. On August 5, 2020, the Underwriter elected to exercise the Over-Allotment Option with respect to an aggregate of 2,243,250
Option Shares (the <i>Exercised Option Shares</i>). We completed the sale of the Exercised Option Shares on August 7, 2020 and
received additional gross proceeds of $1,794,600. After deducting underwriting discounts and commissions and offering expenses
payable by us, we received net proceeds of approximately $12.9 million from the sale of the Shares and the Exercised Option Shares.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Receipt of $5,000,000 Upfront License
Payment from EverInsight</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 3, 2020, we received the $5,000,000
non-dilutive upfront license fee payment from EverInsight<font style="background-color: white">, which resulted in net cash proceeds
to us of approximately $4.655 million after the sublicense payment we agreed to make to Pherin pursuant to our PH94B license from
Pherin, and payment for consulting services related to the EverInsight Agreement.</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Exercise of Warrants</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During July 2020, holders of warrants to purchase
an aggregate of 228,000 shares of our common stock exercised such warrants, and we received aggregate cash proceeds of $114,000.
We issued 228,000 registered shares of our common stock upon these exercises pursuant to the effectiveness of the Warrant Registration
Statement.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b><i>Sales of Common Stock under the LPC Agreement</i></b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During July 2020, we sold an additional 100,000
registered shares of our common stock to LPC under the terms of the LPC Agreement and received cash proceeds of $51,000.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in conformity
with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities,
the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those estimates.  Significant estimates include
those relating to revenue recognition, share-based compensation, right-of-use assets and lease liabilities and assumptions that
have been used historically to value warrants and warrant modifications.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We generate revenue from collaborative research
and development arrangements, licensing and technology transfer agreements, including strategic licenses or sublicenses, and government
grants. We expect that our primary source of revenue beginning in the second fiscal quarter of our current fiscal year will be
from the EverInsight Agreement involving clinical development and commercialization of PH94B for acute treatment of anxiety in
adults with SAD, and potentially other anxiety-related disorders, in Greater China, South Korea, and Southeast Asia, which is described
in more detail in Note 11, <i>Sublicensing and Collaboration Agreements.</i> The terms of the EverInsight Agreement include a $5.0
million non-refundable upfront license fee, potential payments based upon achievement of certain development and commercial milestones,
and royalties on product sales. We also have the Bayer Agreement, pursuant to which we recorded sublicense revenue in the third
quarter of our fiscal year ended March 31, 2017, also described in Note 11, <i>Sublicensing and Collaborative Agreements</i>, as
a potential revenue generating arrangement.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under Accounting Standards Codification (<i>ASC</i>)
Topic 606, <i>Revenue from Contracts with Customers (Topic 606)</i>, we recognize revenue when our customers obtain control of
promised goods or services, in an amount that reflects the consideration that we expect to receive in exchange for those goods
or services. To determine revenue recognition for arrangements that we determine are within the scope of Topic 606, we perform
the following five steps: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract;
(iii) determine the transaction price, including variable consideration, if any; (iv) allocate the transaction price to the performance
obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. We only apply the five-step
model to contracts when it is probable that we will collect the consideration to which we are entitled in exchange for the goods
or services we transfer to a customer.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Performance Obligations</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We assess whether each promised good or service
is distinct for the purpose of identifying the performance obligations in the contract. This assessment involves subjective determinations
and requires judgments about the individual promised goods or services and whether such components are separable from the other
aspects of the contractual relationship. In assessing whether a promised good or service is distinct in the evaluation of a collaboration
arrangement subject to Topic 606, we consider factors such as the research, manufacturing and commercialization capabilities of
the collaboration partner and the availability of the associated expertise in the general marketplace.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Collaboration arrangements can have several
promised goods or services including a license for our intellectual property, product supply and development and regulatory services.
When the customer could not obtain the intended benefit of the contract from a promised good or service without one or more other
promises in the contract, the promise is determined to be not distinct in the context of the contract and is combined with other
promises until the combined promises are distinct to identify performance obligations. We have determined that the Everinsight
Agreement includes a single combined performance obligation that includes both the license to intellectual property and development
and regulatory services.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Arrangements can include promises for optional
additional items, which are considered marketing offers and are accounted for as separate contracts when the customer elects such
options. Arrangements that include a promise for future supply of product for either clinical development or commercial supply
and optional research and development services at the customer’s or the Company’s discretion are generally considered
as options. We assess whether these options provide a material right to the customer and if so, such material rights are accounted
for as separate performance obligations. When the customer exercises an option, any additional payments related to the option are
recorded in revenue when the customer obtains control of the goods or services.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Transaction Price</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Arrangements may have both fixed and variable
consideration. For collaboration agreements, the non-refundable upfront fees and product supply selling prices are considered fixed,
while milestone payments are considered variable consideration when determining the transaction price. At the inception of each
arrangement, we evaluate whether the development milestones are considered probable of being achieved and estimate an amount to
be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal
would not occur, the value of the associated milestone is included in the transaction price. Milestone payments that are not within
our control or the licensee’s control, such as approvals from regulators, are generally not considered probable of being
achieved until such approvals are received.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For sales-based royalties, including commercial
milestone payments based on the level of sales, for which the license is deemed to be the predominant item to which the royalties
relate, we recognize revenue at the later of when (a) the related sales occur, or (b) the performance obligation to which some
or all of the royalty has been allocated has been satisfied (or partially satisfied).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In determining the transaction price, we adjust
consideration for the effects of the time value of money if the timing of payments provides us with a significant benefit of financing.
We do not assess whether a contract has a significant financing component if the expectation at contract inception is such that
the period between payment by the licensee and the transfer of the promised goods or services to the licensee will be one year
or less.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Allocation of Consideration</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As part of the accounting for collaboration
arrangements, we must develop assumptions that require judgment to determine the stand-alone selling price of each performance
obligation identified in the contract. The transaction price is allocated to the identified performance obligations in proportion
to their stand-alone selling prices (<i>SSP</i>) on a relative SSP basis. SSP is determined at contract inception and is not updated
to reflect changes between contract inception and satisfaction of the performance obligations. In developing the SSP for a performance
obligation, we consider applicable market conditions and relevant Company-specific factors, including factors that were contemplated
in negotiating the agreement with the customer and estimated costs. We validate the SSP for performance obligations by evaluating
whether changes in the key assumptions used to determine the SSP will have a significant effect on the allocation of arrangement
consideration between multiple performance obligations. Since the EverInsight Agreement includes a single combined performance
obligation that is not distinct, there is no allocation of consideration.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Timing of Recognition</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Significant management judgment is required
to determine the level of effort required under collaboration arrangements and the period over which we expect to complete our
performance obligations under the arrangement. The performance period or measure of progress is estimated at the inception of the
arrangement and re-evaluated in each reporting period. This re-evaluation may shorten or lengthen the period over which revenue
is recognized. Changes to these estimates are recorded on a cumulative catch up basis. Revenue is recognized for products at a
point in time and for licenses of functional intellectual property at the point in time the customer can use and benefit from the
license. For performance obligations that are services, revenue is recognized over time using an output or input method. For performance
obligations that are a combination of licenses to intellectual property and interdependent services, the nature of the combined
performance obligation is considered when determining the method and measure of progress that best represents the satisfaction
of the performance obligation. For the single combined performance obligation of the EverInsight Agreement, the measure of progress
is stand-ready straight-line over the period in which we expect to perform the services related to the license of PH94B.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have recorded no receivables, contract assets,
or contract liabilities as of June 30, 2020 related to the EverInsight Agreement, as there are no rights and obligations as of
that date. In subsequent periods, the difference between revenue recognized to-date and the consideration invoiced to-date will
be recognized as either a contract asset/unbilled revenue (revenue earned exceeds invoices) or a contract liability/deferred revenue
(invoices exceed revenue earned).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Contract Costs</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Subsequent to June 30, 2020, we expect to make
cash payments aggregating $345,000 for sublicense fees which we are obligated to make pursuant to our PH94B license from Pherin,
and fees for consulting services exclusively related to the EverInsight Agreement. Additionally, on June 24, 2020, we issued 233,645
unregistered shares of our common stock, valued at $125,000, as partial compensation for consulting services exclusively related
to the EverInsight Agreement. These sublicense fees and consulting payments were incurred solely as a result of obtaining the EverInsight
Agreement, and will, accordingly, be capitalized as contract acquisition costs. Capitalized contract acquisition costs are amortized
over the period in which we expect to satisfy the performance obligations under the arrangement and will be included in general
and administrative expenses. At June 30, 2020, the $125,000 fair value of the common stock issued has been recorded as a prepaid
asset. In subsequent periods, the aggregate costs of $470,000 incurred to obtain the EverInsight Agreement will be capitalized
as contract acquisition costs and amortized as indicated. In the quarter ended June 30, 2020, no amounts were amortized to expense,
as services have not yet commenced under the arrangement.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Research and development expenses are composed
of both internal and external costs.  Internal costs include salaries and employment-related expenses, including stock-based
compensation expense, of scientific personnel and direct project costs.  External research and development expenses consist
primarily of costs associated with clinical and non-clinical development of PH94B, PH10, AV-101, and stem cell research and development
costs, and costs related to the application and prosecution of patents related to those product candidates and, to a lesser extent,
our stem cell technology platform. All such costs are charged to expense as incurred. We also record accruals for estimated ongoing
clinical trial costs. Clinical trial costs represent costs incurred by contract research organizations (<i>CRO</i>s) and clinical
trial sites. Progress payments are generally made to contract research and development organizations, clinical sites, investigators
and other professional service providers. We analyze the progress of clinical trials, including levels of subject enrollment, invoices
received and contracted costs, when evaluating the adequacy of accrued liabilities. Significant judgments and estimates must be
made and used in determining the clinical trial accrual in any reporting period. Actual results could differ from those estimates
under different assumptions. Revisions are charged to research and development expense in the period in which the facts that give
rise to the revision become known. Costs incurred in obtaining product or technology licenses are charged immediately to research
and development expense if the product or technology licensed has not achieved regulatory approval or reached technical feasibility
and has no alternative future uses, as was the case with our acquisition of the exclusive worldwide licenses for PH94B and PH10
from Pherin during our fiscal year ended March 31, 2019.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We recognize compensation cost for all stock-based
awards to employees and non-employee consultants based on the grant date fair value of the award.  We record non-cash,
stock-based compensation expense over the period during which the employee or other grantee is required to perform services in
exchange for the award, which generally represents the scheduled vesting period.  We have not granted restricted stock
awards to employees nor do we have any awards with market or performance conditions. Non-cash expense attributable to compensatory
grants of shares of our common stock to non-employees is determined by the quoted market price of the stock on the date of grant
and is either recognized as fully-earned at the time of the grant or amortized ratably over the term of the related service agreement,
depending on the terms of the specific agreement.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The table below summarizes stock-based compensation
expense included in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months
ended June 30, 2020.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b> Three Months Ended June 30,</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b> 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b> 2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 75%"><font style="font-size: 8pt"> Research and development expense</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">226,600</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">390,600</font></td>
<td style="width: 2%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> General and administrative expense</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">448,000</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">672,400</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Total stock-based compensation expense</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">674,600</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">1,063,000</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Expense amounts reported above include $2,500
and $1,500 in research and development expense and general and administrative expense, respectively, attributable to our 2019 Employee
Stock Purchase Plan for the quarter ended June 30, 2020.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the quarter ended June 30, 2020, we granted
from our 2019 Omnibus Equity Incentive Plan (the <i>2019 Plan</i>) options to purchase an aggregate of 1,945,000 shares of our
common stock at exercise prices at or above the closing market price of our common stock on the date of grant to the independent
members of our Board, our officers and employees and certain consultants. The options vested 25% upon grant with the remaining
shares vesting ratably over two years for independent directors, officers and employees, and over one or two years for consultants.
We valued the options granted during the quarter ended June 30, 2020 using the Black-Scholes Option Pricing Model and the following
assumptions:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt"><b>Assumption:</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Weighted Average</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">Range</p></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; text-align: justify"><font style="font-size: 8pt">Market price per share at grant date</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">0.41</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">0.40 to 0.54</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Exercise price per share</font></td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">0.41</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">0.40 to 0.55</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Risk-free interest rate</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">0.39</font></td>
<td><font style="font-size: 8pt">%</font></td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font-size: 8pt">0.35% to 0.44</font></td>
<td><font style="font-size: 8pt">%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Expected term in years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">5.36</font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font-size: 8pt">5.20 to 5.94</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Volatility</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">84.10</font></td>
<td><font style="font-size: 8pt">%</font></td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font-size: 8pt">82.93% to 85.85</font></td>
<td><font style="font-size: 8pt">%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Dividend rate</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">0.0</font></td>
<td><font style="font-size: 8pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">0.0</font></td>
<td><font style="font-size: 8pt">%</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Shares</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,945,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"><b>Fair Value per share</b></font></td>
<td> </td>
<td><font style="font-size: 8pt"><b>$</b></font></td>
<td style="text-align: right"><font style="font-size: 8pt"><b>0.28</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At June 30, 2020, there were stock options outstanding
under our 2016 Equity Incentive Plan (the <i>2016 Plan</i>) and our 2019 Plan to purchase 11,948,088 shares of our common stock
at a weighted average exercise price of $1.21 per share. At that date, there were also 4,785,162 shares of our common stock available
for future issuance under the 2019 Plan. There are no additional shares available for issuance under our 2016 Plan.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 1, 2019, we adopted Financial Accounting
Standards Board (<i>FASB</i>) Accounting Standards Update (<i>ASU</i>) No. 2016-02, <i>Leases</i>, which replaced the
existing guidance in Accounting Standards Codification (<i>ASC</i>) 840, “Leases”, and its subsequent amendments including
ASU No. 2018-11, <i>Leases (Topic 842):</i> Targeted Improvements (<i>ASC 842</i>) using the modified transition method.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We determine whether an arrangement is an operating
or financing lease at contract inception. Operating lease assets represent our right to use an underlying asset for the lease term
and operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets
and liabilities are recognized at the commencement date of the lease based upon the present value of lease payments over the lease
term. When determining the lease term, we include options to extend or terminate the lease when it is reasonably certain that we
will exercise that option. In determining the present value of the lease payments, we use the interest rate implicit in the lease
when it is readily determinable and we use our estimated incremental borrowing rate based upon information available at the commencement
date when the implicit rate is not readily determinable.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The lease payments used to determine our operating
lease assets include lease incentives and stated rent increases and may include escalation or other clauses linked to rates of
inflation or other factors when determinable and are recognized in our operating lease assets in our condensed consolidated balance
sheets.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our operating leases are reflected in right
of use asset – operating leases, other current liabilities and non-current operating lease liability in our condensed consolidated
balance sheets. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Short-term
leases, defined as leases that have a lease term of 12 months or less at the commencement date, are excluded from this treatment
and are recognized on a straight-line basis over the term of the lease.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our accounting for financing leases, previously
referred to as “capital leases” under earlier guidance, remained substantially unchanged with our adoption of ASC 842.
Financing leases are included in property and equipment, net and as current and non-current financing lease liabilities in our
condensed consolidated balance sheets. Refer to Note 10, <i>Commitments and Contingencies,</i> for additional information regarding
ASC 842 and its impact on our condensed consolidated financial statements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have no components of other comprehensive
loss other than net loss, and accordingly our comprehensive loss is equivalent to our net loss for the periods presented.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic net loss attributable to common stockholders
per share of common stock excludes the effect of dilution and is computed by dividing net loss increased by the accrual of dividends
on outstanding shares of our Series B 10% Convertible Preferred Stock (<i>Series B Preferred</i>), by the weighted-average number
of shares of common stock outstanding for the period. Diluted net loss attributable to common stockholders per share of common
stock reflects the potential dilution that could occur if securities or other contracts to issue shares of common stock were exercised
or converted into shares of common stock. In calculating diluted net loss attributable to common stockholders per share, we have
generally not increased the denominator to include the number of potentially dilutive common shares assumed to be outstanding during
the period using the treasury stock method because the result is antidilutive.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of our net loss for all periods
presented, potentially dilutive securities were excluded from the computation of diluted net loss per share, as their effect would
be antidilutive. Potentially dilutive securities excluded in determining diluted net loss attributable to common stockholders per
common share are as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>At June 30,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>At March 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%"><font style="font-size: 8pt">Series A Preferred stock issued and outstanding (1)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">750,000</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">750,000</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Series B Preferred stock issued and outstanding (2)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,160,240</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,160,240</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Series C Preferred stock issued and outstanding (3)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,318,012</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,318,012</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Outstanding options under the Company's Amended and Restated 2016 (formerly 2008) Stock Incentive Plan and 2019 Omnibus Equity Incentive Plan</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">11,948,088</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">10,003,088</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Outstanding warrants to purchase common stock</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">26,589,834</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">26,555,281</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Total</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"> </td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">42,766,174</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"> </td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">40,786,621</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">____________</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">(1) Assumes exchange under the terms of the October 11, 2012 Note
Exchange and Purchase Agreement, as amended</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">(2) Assumes exchange under the terms of the Certificate of Designation
of the Relative Rights and Preferences of the Series B 10% Convertible Preferred Stock, effective May 5, 2015; excludes shares
of unegistered common stock issuable in payment of dividends on Series B Preferred upon conversion</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">(3) Assumes exchange under the terms of the Certificate of Designation
of the Relative Rights and Preferences of the Series C Convertible Preferred Stock, effective January 25, 2016</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We do not use derivative instruments for hedging
of market risks or for trading or speculative purposes. We carried no assets or liabilities that are measured on a recurring basis
at fair value at June 30, 2020 or March 31, 2020.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other than as described in our Form 10-K for
our fiscal year ended March 31, 2020, we do not expect that accounting standards that have been issued or proposed by the Financial
Accounting Standards Board <i>(FASB</i>) or other standards-setting bodies that do not require adoption until a future date will
have a material impact on our consolidated financial statements upon adoption.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b> Three Months Ended June 30,</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b> 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b> 2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 75%"><font style="font-size: 8pt"> Research and development expense</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">226,600</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">390,600</font></td>
<td style="width: 2%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> General and administrative expense</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">448,000</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">672,400</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Total stock-based compensation expense</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">674,600</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">1,063,000</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt"><b>Assumption:</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Weighted Average</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid">
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center">Range</p></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; text-align: justify"><font style="font-size: 8pt">Market price per share at grant date</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">0.41</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">0.40 to 0.54</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Exercise price per share</font></td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">0.41</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">0.40 to 0.55</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Risk-free interest rate</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">0.39</font></td>
<td><font style="font-size: 8pt">%</font></td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font-size: 8pt">0.35% to 0.44</font></td>
<td><font style="font-size: 8pt">%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Expected term in years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">5.36</font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font-size: 8pt">5.20 to 5.94</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Volatility</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">84.10</font></td>
<td><font style="font-size: 8pt">%</font></td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font-size: 8pt">82.93% to 85.85</font></td>
<td><font style="font-size: 8pt">%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font-size: 8pt">Dividend rate</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">0.0</font></td>
<td><font style="font-size: 8pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">0.0</font></td>
<td><font style="font-size: 8pt">%</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Shares</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,945,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"><b>Fair Value per share</b></font></td>
<td> </td>
<td><font style="font-size: 8pt"><b>$</b></font></td>
<td style="text-align: right"><font style="font-size: 8pt"><b>0.28</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>At June 30,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>At March 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%"><font style="font-size: 8pt">Series A Preferred stock issued and outstanding (1)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">750,000</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">750,000</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Series B Preferred stock issued and outstanding (2)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,160,240</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,160,240</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Series C Preferred stock issued and outstanding (3)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,318,012</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,318,012</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Outstanding options under the Company's Amended and Restated 2016 (formerly 2008) Stock Incentive Plan and 2019 Omnibus Equity Incentive Plan</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">11,948,088</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">10,003,088</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Outstanding warrants to purchase common stock</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">26,589,834</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">26,555,281</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Total</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"> </td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">42,766,174</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"> </td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">40,786,621</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">____________</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">(1) Assumes exchange under the terms of the October 11, 2012 Note
Exchange and Purchase Agreement, as amended</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">(2) Assumes exchange under the terms of the Certificate of Designation
of the Relative Rights and Preferences of the Series B 10% Convertible Preferred Stock, effective May 5, 2015; excludes shares
of unegistered common stock issuable in payment of dividends on Series B Preferred upon conversion</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">(3) Assumes exchange under the terms of the Certificate of Designation
of the Relative Rights and Preferences of the Series C Convertible Preferred Stock, effective January 25, 2016</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b> June 30,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b> March 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b> 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b> 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%"><font style="font-size: 8pt"> Clinical and nonclinical materials and contract services</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">115,200</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">115,200</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Fair value of securities issued for professional services</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">125,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Insurance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">391,200</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">107,200</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> All other</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,600</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2,700</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">633,000</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">225,100</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b> June 30,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b> March 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%"><font style="font-size: 8pt"> Laboratory equipment</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">892,500</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">892,500</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Tenant improvements</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">214,400</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">214,400</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Computers and network equipment</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">54,600</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">54,600</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Office furniture and equipment</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">84,600</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">84,600</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,246,100</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,246,100</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Accumulated depreciation and amortization</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(1,061,900</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(1,036,500</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Property and equipment, net</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">184,200</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">209,600</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>June 30,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>March 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%"><font style="font-size: 8pt">Office equipment subject to financing lease</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">14,700</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">14,700</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Accumulated depreciation</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(10,100</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(9,400</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Net book value of office equipment subject to</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">   financing lease</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">4,600</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">5,300</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b> June 30,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b> March 31,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Accrued expenses for clinical and nonclinical</font></td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%"><font style="font-size: 8pt">      materials, development and contract services</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">397,100</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">462,300</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> Accrued professional services</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">194,600</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">76,500</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> All other</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">16,100</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">22,700</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">607,800</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">561,500</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>June 30, 2020</b>  </font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>March 31, 2020</b>  </font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt">Principal</font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt">Accrued</font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt">Principal</font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt">Accrued</font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Balance</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Interest</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Total</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Balance</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Interest</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Total</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">   7.30% and 6.30% Notes payable</font></td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 36%"><font style="font-size: 8pt">to insurance premium financing company (current)</font></td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; width: 7%; text-align: right"><font style="font-size: 8pt">328,800</font></td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; width: 7%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; width: 7%; text-align: right"><font style="font-size: 8pt">328,800</font></td>
<td style="width: 3%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; width: 7%; text-align: right"><font style="font-size: 8pt">56,500</font></td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; width: 7%; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; width: 7%; text-align: right"><font style="font-size: 8pt">56,500</font></td>
<td style="width: 3%; padding-bottom: 3pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">  1% Note payable under Paycheck Protection Program</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">224,400</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">400</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">224,800</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">     less: current portion</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(99,700</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(400</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(100,100</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">     Non-current portion</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">124,700</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">124,700</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Total current notes payable</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">428,500</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">400</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">428,900</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">56,500</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">56,500</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Warrants</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Warrants</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Exercise</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Outstanding at</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Exercisable at</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>Price</b></font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt"><b>Expiration</b></font></td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>June 30,</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>June 30,</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>per Share</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td>
<p style="border-bottom: black 0.75pt solid; font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Date</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 20%; text-align: right"><font style="font-size: 8pt">0.50</font></td>
<td style="width: 1%"> </td>
<td style="width: 31%; text-align: center"><font style="font-size: 8pt">3/25/2021 to 4/30/2024</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 20%; text-align: right"><font style="font-size: 8pt">8,151,312</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 20%; text-align: right"><font style="font-size: 8pt">8,026,312</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">0.73</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt">7/25/2025</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">3,870,077</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">0.805</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt">12/31/2022</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">80,431</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">80,431</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">1.50</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt">12/13/2022</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">9,596,200</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">9,596,200</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">1.82</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt">3/7/2023</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,388,931</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,388,931</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">3.51</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt">12/31/2021</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">50,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">50,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">5.30</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt">5/16/2021</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,705,883</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">2,705,883</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">7.00</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 8pt">9/2/2020 to 3/3/2023</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">747,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">747,000</font></td>
<td> </td></tr>
<tr>
<td colspan="2" style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; padding-bottom: 1.5pt"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="text-align: right; vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: right; vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: right; vertical-align: bottom"><font style="font-size: 8pt">26,589,834 </font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 8pt"> </font></td>
<td style="text-align: right; vertical-align: bottom; padding-bottom: 1.5pt"><font style="font-size: 8pt"> </font></td>
<td style="text-align: right; vertical-align: bottom"><font style="font-size: 8pt"> </font></td>
<td style="text-align: right; vertical-align: bottom"><font style="font-size: 8pt">22,594,757 </font></td>
<td> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>As of June 30, 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>As of March 31, 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"><i>Assets</i></font></td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 76%; padding-left: 0.25in"><font style="font-size: 8pt">Right of use asset – operating lease</font></td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; width: 9%; text-align: right"><font style="font-size: 8pt">3,492,100</font></td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="width: 1%; padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; width: 9%; text-align: right"><font style="font-size: 8pt">3,579,600</font></td>
<td style="width: 1%; padding-bottom: 3pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"><i>Liabilities</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in"><font style="font-size: 8pt">Current operating lease obligation</font></td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">325,700</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">313,400</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in"><font style="font-size: 8pt">Non-current operating lease obligation</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">3,631,100</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">3,715,600</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Total operating lease liability</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">3,956,800</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">4,029,000</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>For the Three Months Ended</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>For the Three Months Ended</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>June 30, 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>June 30, 2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 54%; padding-left: 0.25in; text-indent: -0.25in"><font style="font-size: 8pt">Operating lease cost</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 18%; text-align: right"><font style="font-size: 8pt">212,800</font></td>
<td style="width: 2%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 18%; text-align: right"><font style="font-size: 8pt">208,800</font></td>
<td style="width: 2%"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"><b>Fiscal Years Ending March 31,</b></font></td>
<td> </td>
<td colspan="2" style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 88%"><font style="font-size: 8pt">2021 (remaining nine months)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">488,000</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">2022</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">668,400</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">2023</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">726,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">2024</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">766,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">2025</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">789,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Thereafter</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,931,400</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in"><font style="font-size: 8pt">Total lease expense</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">5,368,800</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Less imputed interest</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(1,412,000</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.25in"><font style="font-size: 8pt">Present value of operating lease liabilities</font></td>
<td style="padding-bottom: 3pt"> </td>
<td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td>
<td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">3,956,800</font></td>
<td style="padding-bottom: 3pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>For the Three Months Ended</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 8pt"><b>For the Three Months Ended</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>June 30, 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>June 30, 2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 54%; padding-left: 0.25in; text-indent: -0.25in"><font style="font-size: 8pt">Cash paid for amounts included in the measurement of lease liabilities</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 18%; text-align: right"><font style="font-size: 8pt">197,500</font></td>
<td style="width: 2%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 18%; text-align: right"><font style="font-size: 8pt">188,200</font></td>
<td style="width: 2%"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>As of June 30, 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 88%"><font style="font-size: 8pt">Assumed remaining lease term in years</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt">7.08</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt">Assumed discount rate</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">8.54</font></td>
<td><font style="font-size: 8pt">%</font></td></tr>
</table>
.41
.40
.54
.50
.73
.805
1.50
1.82
3.51
5.30
7.00
.41
.40
.55
.0039
.0035
.0044
P5Y4M10D
P5Y2M12D
P5Y11M8D
.8410
.8293
.8585
.0000
.28
42766174
40786621
11948088
10003088
26589834
26555281
115200
115200
0
125000
107200
391200
2700
1600
225100
633000
1246100
1246100
892500
214400
54600
84600
892500
214400
54600
84600
1036500
1061900
14700
14700
9400
10100
5300
4600
462300
397100
76500
194600
22700
16100
56500
428500
328800
56500
224400
0
0
400
0
0
400
0
56500
428900
328800
56500
224800
0
0
124700
0
100100
3/25/2021 to 4/30/2024
7/25/2025
12/31/2022
12/13/2022
3/7/2023
12/31/2021
5/16/2021
9/2/2020 to 3/3/2023
22594757
8026312
0
80431
9596200
1388931
50000
2705883
747000
26589834
8151312
3870077
80431
9596200
1388931
50000
2705883
747000
124800
1405100
422800
578800
0
0
15000
15000
15000
27700
4029000
3956800
212800
208800
488000
668400
1931400
5368800
1412000
P7Y29D
.0854
197500
188200
3500
3400
-3200
16500
766000
789000
726000
Assumes exchange under the terms of the October 11, 2012 Note Exchange and Purchase Agreement, as amended.
Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series B 10% Convertible Preferred Stock, effective May 5, 2015; excludes shares of unegistered common stock issuable in payment of dividends on Series B Preferred upon conversion.
Assumes exchange under the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series C Convertible Preferred Stock, effective January 25, 2016.