Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash flows from operating activities:    
Net loss $ (1,112,354) $ (2,967,185)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 7,603 4,626
Stock-based compensation expense 363,216 259,699
Amortization of warrants and stock issued for services [1],[2] 51,539 459,316
Change in fair value of warrant liabilities (1,612,634)  
Changes in assets and liabilities:    
Prepaid expenses [1] 7,289 29,728
Other current assets 7,500 4,470
Accounts payable [2] 57,859 (113,601)
Accrued payroll and related expenses (11,684) 82,393
Accrued license and patent reimbursement fees (97,500)  
Stock subscription liability   288,000
Accrued expenses and other liabilities (61,083) (66,879)
Net cash used in operating activities (2,378,435) (1,319,433)
Cash flows from investing activities:    
Purchases of property and equipment (11,116)  
Net cash used in investing activities (11,116)  
Cash flows from financing activities:    
Proceeds from common stock issuance, net of $3,920 issuance costs   713,369
Proceeds from Series A preferred stock issuance   1,000,000
Net cash provided by financing activities   1,713,369
Net increase (decrease) in cash and cash equivalents (2,389,551) 393,936
Cash and cash equivalents, beginning of period 3,221,209 207,330
Cash and cash equivalents, end of period 831,658 601,266
Cash paid during the period for:    
Interest
Income taxes   816
Series A preferred stock    
Adjustments to reconcile net loss to net cash used in operating activities:    
Change in fair value of conversion rights of preferred stock   $ 700,000
Series B Preferred Stock    
Adjustments to reconcile net loss to net cash used in operating activities:    
Change in fair value of conversion rights of preferred stock $ 21,814  
[1] During the six months ended June 30, 2015, the Company issued warrants of our common stock for consulting services. The warrants were valued at $328,650 and were recorded as a Prepaid expense and are being amortized over the service period During the six months ended June 30, 2015, 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. During the six months ended June 30, 2016, warrants issued to service providers for consulting services were valued at $22,425 and recorded as a Prepaid expense and are being amortized over the service period.
[2] During the six months ended June 30, 2015, the Company issued warrants of our common stock to a service provider in exchange for extinguishment of $10,000 of trade accounts payable owed to this vendor.