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 ($)
 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:    
Net loss $ (2,057,625) $ (4,149,977)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 11,505 7,290
Stock-based compensation expense 544,823 263,985
Amortization of warrants and stock issued for services [1],[2] 51,539 529,016
Change in fair value of warrant liabilities (1,584,969)  
Changes in assets and liabilities:    
Restricted cash (37,500)
Prepaid expenses [1] (119,361) 25,800
Other current assets 7,500 5,470
Accounts payable [2] 262,016 (267,264)
Accrued payroll and related expenses 25,534 99,157
Accrued license and patent reimbursement fees (17,500) (29,212)
Stock subscription liability (100,000)
Accrued expenses and other liabilities (96,497) 52,899
Net cash used in operating activities (2,890,163) (2,614,336)
Cash flows from investing activities:    
Purchases of property and equipment (11,116) (1,982)
Net cash used in investing activities (11,116) (1,982)
Cash flows from financing activities:    
Proceeds from common stock issuance, net of $3,920 issuance costs   721,069
Proceeds from preferred stock issuance, net of issuance costs
Net cash provided by financing activities 6,751,710
Net increase (decrease) in cash and cash equivalents (2,901,279) 4,135,392
Cash and cash equivalents, beginning of period 3,221,209 207,330
Cash and cash equivalents, end of period 319,930 4,342,722
Cash paid during the period for:    
Interest
Income taxes 116
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 986,000
Cash flows from financing activities:    
Proceeds from preferred stock issuance, net of issuance costs 1,442,302
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 82,872
Cash flows from financing activities:    
Proceeds from preferred stock issuance, net of issuance costs $ 4,588,339
[1] During the nine months ended September 30, 2015, the Company issued warrants of our common stock for consulting services. The warrants were valued at $417,875 and were recorded as a Prepaid expense and are being amortized over the service period.During the nine months ended September 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 nine months ended September 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 nine months ended September 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.