Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Cash flows from operating activities:    
Net loss $ (4,149,977) $ (1,031,539)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 7,290 344
Stock-based compensation for employees 263,985  
Amortization of warrants and stock issued for services [1],[2] 529,016  
Change in fair value of conversion rights of Series A preferred stock 986,000  
Changes in assets and liabilities:    
Restricted cash (37,500)  
Prepaid expenses [1] 25,800 (23,758)
Other current assets 5,470  
Deposits and other assets   (64,970)
Accounts payable [2] (267,264)  
Accrued payroll and related expenses 99,157  
Accrued license and patent reimbursement fees (29,212)  
Stock subscription liability (100,000)  
Accrued expenses and other liabilities 52,899 167,355
Net cash used in operating activities (2,614,336) (952,568)
Cash flows from investing activities:    
Purchases of property and equipment (1,982) (12,389)
Net cash used in investing activities (1,982) (12,389)
Cash flows from financing activities:    
Proceeds from common stock issuance, net of $3,920 issuance costs 721,069 1,989,980
Proceeds from Series A preferred stock issuance, net of $7,700 issuance costs 1,442,302  
Proceeds from Series B preferred stock issuance, net of $411,661 issuance costs 4,588,339  
Net cash provided by financing activities 6,751,710 1,989,980
Net increase in cash and cash equivalents 4,135,392 1,025,023
Cash and cash equivalents, beginning of period 207,330  
Cash and cash equivalents, end of period $ 4,342,722 $ 1,025,023
Cash paid during the period for:    
Income taxes $ 116 $ 905
[1] During the nine months ended September 30, 2015, the Company issued 200,000 warrants to purchase shares of our common stock for consulting services. The warrants were valued at $417,875. The Company also issued shares of common stock for consulting services valued at $168,000. Such amounts were recorded as a Prepaid Expense and are being amortized over the service period.
[2] The Company issued 6,000 warrants at an exercise price of $2.50 to a service provider in exchange for extinguishment of $10,000 of trade accounts payable owed to this vendor.