Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Cash flows from operating activities:            
Net loss $ (19,194,236) $ (3,094,298)        
Adjustments to reconcile net loss to net cash used in operating activities:            
Depreciation 1,544 8,039        
Loss on disposal of assets 803 1,788        
Fixed assets provided to university in lieu of cash   18,004        
Stock-based compensation expense 674,961 608,676        
Amortization of warrants and stock issued for services (1) [1]   30,000        
Change in fair value of derivative liabilities 6,503,174 (767,198)        
Fair value of warrant liability in excess of proceeds 7,174,634          
Financing transaction costs 137,192          
Loss on common stock issuance from conversion of accrued interest 9,794          
Loss on extinguishment of secured convertible promissory note - related party 590,392          
Amortization of debt discount 58,536          
Common stock issued for services   187,550        
Changes in assets and liabilities:            
Prepaid expenses [1] 198,235 (121,273)        
Deposits and other assets   34,290        
Other current assets (2,609) 7,014        
Accounts payable (85,324) (173,729)        
Accrued payroll and related expenses 11,701 (112,825)        
Accrued expenses (21,811) 42,677        
Net cash used in operating activities (3,943,014) (3,331,285)        
Cash flows from investing activities:            
Purchases of property and equipment (4,385) (19,654)        
Net cash used in investing activities (4,385) (19,654)        
Cash flows from financing activities:            
Proceeds from Emerald Financing, net of $154,092 issuance costs 3,095,908          
Proceeds from Series B warrant exercises 98,700          
Proceeds from secured convertible promissory note - related party 400,000 500,000        
Proceeds from convertible multi-draw credit agreement, net of $53,707 issuance costs 1,946,293          
Net cash provided by financing activities 5,540,901 3,513,002        
Net increase in cash, cash equivalents and restricted cash 1,593,502 162,063      
Cash, cash equivalents and restricted cash, beginning of period 264,383 102,320        
Cash, cash equivalents and restricted cash, end of period 1,857,885 264,383 102,320      
Reconciliation of cash, cash equivalents and restricted cash:            
Cash and cash equivalents       $ 1,853,373 $ 259,955
Restricted cash       4,512 4,428
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows 264,383 264,383 $ 102,320 $ 1,857,885 $ 264,383 $ 102,320
Cash paid during the period for:            
Interest 23,334          
Income taxes 1,642 1,631        
Supplemental disclosures of non-cash financing activities:            
Conversion of outstanding preferred stock into common stock 1,947,228 1,386,000        
Conversion of outstanding preferred stock subject to redemption into common stock 828,915 1,197,450        
Fair value of common stock issued in extinguishment of convertible debt and accrued interest 1,713,766          
Fair value of warrants issued in connection with financings 10,424,634          
Proceeds allocated to equity classified warrants issued with convertible multi-draw credit agreement 315,080          
Reclassification of warrant liabilities to equity from exercise of warrants 1,539,866          
Fair value of compound derivative liability issued with convertible multi-draw credit agreement 204,102          
Beneficial conversion feature on convertible multi-draw credit agreement $ 90,080          
Series D Preferred Stock            
Cash flows from financing activities:            
Proceeds from Issuance of Preferred Stock and Preference Stock [2]   1,131,857        
Series F Preferred stock            
Cash flows from financing activities:            
Proceeds from Issuance of Preferred Stock and Preference Stock   $ 1,881,145        
[1] During the year ended December 31, 2017, warrants issued to service providers for consulting services were valued at $30,000 and were recorded as a Prepaid expense and amortized over the service period.
[2] During the year ended December 31, 2017 preferred deemed dividends of $333,000 was recognized on Series F Preferred Stock, $536,000 was recognized on Series D Preferred Stock and $175,000 on Series C Preferred Stock.