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 ($)
 3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Cash flows from operating activities:    
Net loss $ (1,283,218) $ (1,685,447)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 2,428 3,701
Stock-based compensation expense 152,169 181,608
Amortization of warrants and stock issued for services 5,000 [1] 38,161 [2]
Change in fair value of conversion rights of Series B preferred stock (85,205) 53,228
Change in fair value of warrant liabilities (12,561) 411,480
Common stock issued for services 187,550  
Changes in assets and liabilities:    
Prepaid expenses 43,994 [1] (13,886) [2]
Other current assets   7,500
Accounts payable (47,486) 12,013
Accrued payroll and related expenses (48,368) (19,619)
Accrued license and patent reimbursement fees 16,250 (65,000)
Accrued expenses and other liabilities 253,042 (72,210)
Net cash used in operating activities (816,405) (1,148,471)
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 Series D preferred stock issuance, net of $183,343 issuance costs [3] 1,131,857  
Net cash provided by financing activities 1,131,857  
Net increase (decrease) in cash and cash equivalents 315,452 (1,159,587)
Cash and cash equivalents, beginning of period 64,820 3,221,209
Cash and cash equivalents, end of period 380,272 2,061,622
Cash paid during the period for:    
Interest
Income taxes $ 1,631  
[1] During the three months ended March 31, 2017, warrants issued to service providers for consulting services were valued at $30,000 and were recorded as a Prepaid expense and are being amortized over the service period.
[2] During the three months ended March 31, 2016, warrants issued to service providers for consulting services were valued at $22,245 and were recorded as a Prepaid expense and are being amortized over the service period.
[3] During the three months ended March 31, 2017 preferred deemed dividends of $536,000 was recognized on Series D Preferred Stock and $175,000 on Series C Preferred Stock.