Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Cash flows from operating activities:    
Net loss $ (10,875,793) $ (1,985,981)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 813 4,855
Stock-based compensation expense 330,212 304,338
Amortization of warrants and stock issued for services [1]   12,500
Change in fair value of conversion rights of Series B preferred stock   (88,532)
Change in fair value of conversion rights of convertible debt 185,000  
Change in fair value of warrant liabilities 417,749 (38,998)
Fair value of warrant liability in excess of proceeds 7,174,634  
Loss on extinguishment of convertible debt 590,392  
Amortization of convertible debt discount 34,608  
Common stock issued for services   187,550
Changes in assets and liabilities:    
Prepaid expenses [1] 135,907 (104,830)
Other current assets (2,609) 831
Accounts payable (89,001) 404,843
Accounts payable to related party 65,000  
Accrued payroll and related expenses 3,815 114,829
Accrued expenses and other liabilities (83,302) 100,777
Net cash used in operating activities (2,112,575) (1,087,818)
Cash flows from investing activities:    
Purchases of property and equipment (4,385)  
Net cash used in investing activities (4,385)  
Cash flows from financing activities:    
Proceeds from Series D preferred stock issuance, net of $183,343 issuance costs [2]   1,131,857
Proceeds from common stock issuance, net of $16,901 issuance costs 3,233,099  
Proceeds from warrant exercises 98,700  
Proceeds from convertible debt issuance 400,000  
Net cash provided by financing activities 3,731,799 1,131,857
Net increase in cash, cash equivalents and restricted cash 1,614,839 44,039
Cash, cash equivalents and restricted cash, beginning of period 264,383 102,320
Cash, cash equivalents and restricted cash, end of period 1,879,222 146,359
Reconciliation of cash, cash equivalents and restricted cash:    
Cash and cash equivalents 1,874,720 108,859
Restricted cash 4,502 37,500
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows 1,879,222 146,359
Cash paid during the period for:    
Interest 0 0
Income taxes 1,600 4,031
Supplemental disclosures of non-cash financing activities:    
Conversion of outstanding preferred stock into common stock 1,947,227 880,000
Conversion of outstanding preferred stock subject to redemption into common stock 828,916 $ 405,625
Fair value of common stock issued in extinguishment of convertible debt 1,710,000  
Fair value of warrants issued in connection with Emerald financing 10,424,634  
Reclassification of warrant liabilities due to exercise of warrants $ 1,301,866  
[1] During the six months ended June 30, 2017, warrants issued to service providers for consulting services were valued at $22,245 and were recorded as a Prepaid expense and amortized over the service period. During the six months ended June 30, 2017, warrants issued to service providers for consulting services were valued at $30,000 and are being amortized over the service period.
[2] During the six months ended June 30, 2017 preferred deemed dividends of $536,000 were recognized on Series D Preferred Stock and $175,000 on Series C Preferred Stock.