Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.7.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Cash flows from operating activities:    
Net loss $ (3,178,093) $ (4,841,161)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 14,916 9,953
Stock-based compensation expense 706,368 414,343
Amortization of warrants and stock issued for services [1],[2] 51,538 585,111
Change in fair value of warrant liability (1,342,651) (481,610)
Warrant issued for services 55,900  
Common stock issued for license 50,000  
Changes in assets and liabilities:    
Restricted cash   (37,500)
Prepaid expenses [1] (40,323) (65,341)
Deposits and other assets 9,594 (25,290)
Other current assets 29,112 454
Accounts payable [2] 149,293 (274,142)
Accrued payroll and related expenses 121,069 702
Accrued license and patent reimbursement fees (97,500) (21,928)
Stock subscription liability   (100,000)
Accrued expenses and other liabilities (130,728) 104,475
Net cash used in operating activities (3,552,941) (3,727,989)
Cash flows from investing activities:    
Purchases of property and equipment (11,117) (1,982)
Net cash used in investing activities (11,117) (1,982)
Cash flows from financing activities:    
Proceeds from common stock issuance, net of $3,920 issuance costs   721,021
Net cash provided by financing activities 407,669 6,743,850
Net increase (decrease) in cash and cash equivalents (3,156,389) 3,013,879
Cash and cash equivalents, beginning of period 3,221,209 207,330
Cash and cash equivalents, end of period 64,820 3,221,209
Cash paid during the period for:    
Interest
Income taxes   1,716
Supplemental disclosures of non-cash financing activities:    
Conversion of outstanding preferred stock into common stock 114,000 1,450,000
Conversion of outstanding preferred stock subject to redemption into common stock 469,000 580,000
Series A Preferred stock    
Adjustments to reconcile net loss to net cash used in operating activities:    
Change in fair value of conversion rights 986,000
Cash flows from financing activities:    
Proceeds from preferred stock issuance 1,430,300
Series B Preferred Stock    
Adjustments to reconcile net loss to net cash used in operating activities:    
Change in fair value of conversion rights 48,564 17,945
Cash flows from financing activities:    
Proceeds from preferred stock issuance 4,592,529
Series C Preferred Stock    
Cash flows from financing activities:    
Proceeds from preferred stock issuance [3] $ 407,669
[1] During the year ended December 31, 2015, the Company issued warrants of our common stock for consulting services. The warrants were valued at $446,225 and were recorded as a Prepaid expense and was amortized over the service period. During the year ended December 31, 2015, the Company issued shares of common stock for consulting services valued at $168,000. Such amounts were recorded as a Prepaid expense and was amortized over the service period. During the year ended December 31, 2016, warrants issued to service providers for consulting services were valued at $22,425 and recorded as a Prepaid expense and was amortized over the service period.
[2] During the year ended December 31, 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.
[3] During the year ended December 31, 2016 a preferred deemed dividend of $325,000 was recognized.