Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Cash flows from operating activities:    
Net loss $ (12,972,142) $ (2,466,114)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 1,178 6,801
Loss on disposal of assets 804 138
Stock-based compensation expense 484,720 456,507
Amortization of warrants and stock issued for services [1]   20,000
Change in fair value of conversion rights of Series B preferred stock   (88,532)
Change in fair value of conversion rights of convertible debt 185,000  
Change in fair value of warrant liabilities 1,468,477 (320,495)
Fair value of warrant liability in excess of proceeds 7,174,634  
Loss on extinguishment of convertible debt 590,392  
Amortization of convertible debt discount 34,608  
Common stock issued for services   187,550
Changes in assets and liabilities:    
Prepaid expenses [1] 194,906 (73,326)
Other current assets (2,609) 831
Accounts payable (55,418) 715,473
Accounts payable to related party 15,000  
Accrued payroll and related expenses (6,074) 278,161
Accrued license and patent reimbursement fees   80,893
Accrued expenses and other liabilities (42,333) 14,342
Net cash used in operating activities (2,928,857) (1,187,771)
Cash flows from investing activities:    
Purchases of property and equipment (4,385)  
Net cash used in investing activities (4,385)  
Cash flows from financing activities:    
Proceeds from Series D preferred stock issuance, net of $183,343 issuance costs [2]   1,131,857
Proceeds from common stock issuance, net of $16,901 issuance costs 3,233,099  
Proceeds from warrant exercises 98,700  
Proceeds from convertible debt issuance 400,000  
Net cash provided by financing activities 3,731,799 1,131,857
Net increase (decrease) in cash, cash equivalents and restricted cash 798,557 (55,914)
Cash, cash equivalents and restricted cash, beginning of period 264,383 102,320
Cash, cash equivalents and restricted cash, end of period 1,062,940 46,406
Reconciliation of cash, cash equivalents and restricted cash:    
Cash and cash equivalents 1,058,438 41,978
Restricted cash 4,502 4,428
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows 1,062,940 46,406
Cash paid during the period for:    
Interest
Income taxes 1,642 $ 1,631
Supplemental disclosures of non-cash financing activities:    
Conversion of outstanding preferred stock into common stock 1,947,227  
Conversion of outstanding preferred stock subject to redemption into common stock 828,916  
Fair value of common stock issued in extinguishment of convertible debt 1,710,000  
Fair value of warrants issued in connection with Emerald financing 10,424,634  
Reclassification of warrant liabilities due to exercise of warrants $ 1,333,866  
[1] During the nine months ended September 30, 2017, warrants issued to service providers for consulting services were valued at $22,245 and were recorded as a Prepaid expense and amortized over the service period. During the nine months ended September 30, 2017, warrants issued to service providers for consulting services were valued at $30,000 and are being amortized over the service period.
[2] During the nine months ended September 30, 2017 preferred deemed dividends of $536,000 were recognized on Series D Preferred Stock and $175,000 on Series C Preferred Stock.