Annual report pursuant to Section 13 and 15(d)

Loan from National Brain Tumor Society and National Foundation for Cancer Research

v3.21.2
Loan from National Brain Tumor Society and National Foundation for Cancer Research
12 Months Ended
Jun. 30, 2021
Loans Payable [Abstract]  
Loan from National Brain Tumor Society and National Foundation for Cancer Research

7

Loan from National Brain Tumor Society and National Foundation for Cancer Research

 

 

 

$

(in thousands)

 

Balance – June 30, 2020

 

 

 

Funding

 

 

500

 

Financing costs

 

 

(94

)

Interest expense

 

 

30

 

Amortization of deferred financing costs

 

 

94

 

Payment of principal and interest

 

 

(530

)

Balance – June 30, 2021

 

 

 

During the year ended June 30, 2021, the Company received a loan of $500 from National Brain Tumor Society (“NBTS”) and the National Foundation for Cancer Research (the “NBTS Loan”) to support VAL-083's preparation for participation in the Global Coalition for Adaptive Research's sponsored trial, Adaptive Global Innovative Learning Environment study. In relation to the NBTS Loan, the Company issued 125 share purchase warrants which are exercisable at a price of $1.09 per common share until June 19, 2025 and were included in deferred financing costs as of June 30, 2020 (“NBTS Warrants”). The NBTS Loan is secured by a promissory note, accrues interest at a rate of 6% per annum and matures on June 19, 2021. On June 19, 2021, the Company repaid the NBTS Loan principal of $500 and loan interest of $30.

The NBTS Warrants were valued at $94 using a Black-Scholes valuation with a risk-free interest rate of 0.37%, a term of 5 years, a volatility of 89.82%, and a dividend rate of 0%.  The estimated volatility of the Company’s common stock at the date of measurement is based on the historical volatility of the Company. The risk-free interest rate is based on rates published by the government for bonds with a maturity similar to the expected remaining life of the instrument at the valuation date. The expected term has been estimated using the remaining life of the NBTS Warrants.