Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

Subsequent Events
6 Months Ended
Jun. 30, 2021
Subsequent Events [Abstract]  
Subsequent Events
11. Subsequent Events


On July 13, 2021, the Company entered into an underwriting agreement with Roth Capital Partners, pursuant to which the Company issued and sold, in an underwritten initial public offering, 5,000,000 units at a public offering price per unit of $5.00. Each unit consists of one share of common stock and four-fifths of a warrant to purchase one share of common stock. The warrants have an exercise price of $6.00 per share and are exercisable for a period of five years after the issuance date. In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 750,000 shares of its common stock and/or warrants to purchase up to an additional 600,000 shares of its common stock, at the initial public offering price, less the underwriting discounts and commissions. On July 15, 2021, the underwriters exercised their option to purchase warrants for an additional 600,000 shares of common stock, and the Company received gross proceeds of $7,500 for the exercise.


As a result of its initial public offering (“IPO”), on July 13, 2021 the Company began trading on the Nasdaq Capital Market under the symbol “UNCY”, and on July 15, 2021 received approximately $23,212,000 in net proceeds after deducting the underwriting discounts and commissions and estimated offering expenses. The Company intends to use the net proceeds from the IPO to complete pre-clinical and clinical studies, submit regulatory filings to the FDA, and for general and corporate purposes, including hiring additional management and conducting market research and other commercial planning.


On July 15, 2021, in connection with the completion of the Company’s IPO, all outstanding convertible notes, including principal and accrued interest, were automatically converted into shares of common stock. The conversion was calculated based on 70% of the IPO price per unit and will result in the issuance of 736,773 shares of common stock and 184,193 warrants to purchase additional shares of common stock.


On July 15, 2021, in connection with the completion of the Company’s IPO, the Company adopted a new comprehensive equity incentive plan, the 2021 Omnibus Equity Incentive Plan (the “2021 Plan”). Following the effective date of the 2021 Plan, no further awards may be issued under the 2018 Plan or the 2019 Plan (collectively, the “Prior Plans”). However, all awards under the Prior Plans that are outstanding as of the effective date of the 2021 Plan will continue to be governed by the terms, conditions and procedures set forth in the Prior Plans and any applicable award agreements. A total of 1,302,326 shares of common stock are reserved for issuance pursuant to the 2021 Plan. The 2021 Plan provides for the issuance of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based awards.


On July 2, 2021 we entered into an employment agreement with Mr. John Townsend, pursuant to which Mr. Townsend serves as our Chief Financial Officer. Mr. Townsend’s employment agreement provides for an annual base salary of $220,000 and provides that Mr. Townsend will be eligible for an annual discretionary bonus, with a target amount equal to 30% of his base salary, based on the achievement of certain performance objectives established by our Board of Directors. In accordance with the terms of Mr. Townsend’s employment agreement, as soon as reasonably practicable after the date of an initial public offering of the Company, he will receive a one-time equity grant of 18,605 stock options, which shall vest over a period of three years from the date of grant. In addition, Mr. Townsend’s employment agreement contains standard non-competition and non-solicitation provisions. Mr. Townsend is also eligible to receive additional equity-based compensation awards as the Company may grant from time to time. Mr. Townsend’s employment agreement further provides for standard expense reimbursement, vacation time and other standard executive benefits.


During July 2021, in connection with the completion of the Company’s IPO, Shalabh Gupta, our Chief Executive Officer, was paid approximately $463,000 for previously earned deferred compensation and approximately $219,000 for previously earned bonus amounts. Dr. Gupta was also repaid $216,000 for previous loans made to the Company.


In connection with the completion of the Company’s IPO, additional shares of common stock will be issued to Spectrum Pharmaceuticals, Inc., in September of 2021. The Company’s agreement with Spectrum contains an anti-dilution clause such that Spectrum maintains an ownership interest in the Company at 4% of the Company’s shares on a fully-diluted basis. The anti-dilution clause automatically expired after July 13, 2021 due to the Company attaining a market capitalization of more than $50 million as a result of the IPO.