Nature of Business and Basis of Presentation
|12 Months Ended|
Jun. 30, 2021
|Accounting Policies [Abstract]|
|Nature of Business and Basis of Presentation||
Note 1. Nature of business and basis of presentation
Anebulo Pharmaceuticals, Inc. (“the Company”) was founded on April 23, 2020, as a Delaware corporation. The Company is a clinical stage biotechnology company focused on developing and commercializing new treatments for patients suffering from Acute Cannabis Intoxication (ACI) and addiction. The Company’s principal operations are located in Lakeway, Texas.
Stock Split and Initial Public Offering
On April 23, 2021, the Company effected a six-for-one stock split of its common stock to be consummated prior to the completion of the Company’s Initial Public Offering (IPO). All shares, stock options, warrants and per share information presented in the accompanying financial statements and notes thereto have been adjusted to reflect the stock split on a retroactive basis for all periods presented. There was no change in the par value of the Company’s common stock.
On May 11, 2021, the Company completed an IPO of 3,078,224 shares of its common stock, including the partial exercise by the underwriters of their option to purchase up to 450,000 additional shares of common stock, for aggregate gross proceeds of approximately $21,548,000 and its shares started trading on The Nasdaq Capital Market under the ticker symbol “ANEB.” The Company received approximately $19,783,000 in net proceeds after deducting underwriting discounts and commissions and other offering expenses payable by the Company. Upon the closing of the IPO on May 11, 2021, a cashless exercise of Milestone Warrants resulted in the issuance of 5,236,343 shares of Series A convertible preferred stock and all of the outstanding shares of Series A convertible preferred stock automatically converted into 7,283,843 shares of common stock.
Liquidity and capital resources
From inception, the Company has devoted substantially all of its efforts to raising capital and acquiring licensing rights to its drug product.
Through June 30, 2021, the Company has raised approximately $5,426,000 of funding through the sales of its Series A Convertible Preferred Stock (“Series A Preferred”), Series A preferred milestone warrants, and the issuance of two promissory notes.
On May 11, 2021, the Company closed on an IPO of 3,078,224 shares of its common stock at an offering price of $7.00 per share for gross proceeds of approximately $21,548,000. Since its inception, the Company has incurred substantial losses and expects to continue to generate operating losses in the future. As of June 30, 2021, the Company had an accumulated deficit of $38,644,084 and cash of $19,985,645.
The Company believes that its existing cash will enable the Company to meet its operational liquidity needs and fund its planned investing activities for at least the next 12 months from the date of issuance of these financial statements.
Basis of presentation
The accompanying financial statements have been prepared in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”).
The entire disclosure for the general note to the financial statements for the reporting entity which may include, descriptions of the basis of presentation, business description, significant accounting policies, consolidations, reclassifications, new pronouncements not yet adopted and changes in accounting principles.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef