Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Operations (Unaudited)

v3.8.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Income Statement [Abstract]        
Revenue
General and administrative expenses 1,263,122 1,350,248 4,082,366 2,827,721
Research and development expenses 704,866 578,474 2,063,319 1,112,616
Total operating expenses 1,967,988 1,928,722 6,145,685 3,940,337
Loss from operations (1,967,988) (1,928,722) (6,145,685) (3,940,337)
Other income (expense)        
Interest expense (362,142) (362,142)
Loss on the issuance of Series A Preferred Stock Units (3,124,285)
Change in fair value of Series A Warrants liability (2,215,671) (680,851)
Change in fair value of derivative liability (583,517) (76,150)
Other income (expense), net (3,161,330) (4,243,428)
Loss before income tax (5,129,318) (1,928,722) (10,389,113) (3,940,337)
Income tax
Net loss (5,129,318) (1,928,722) (10,389,113) (3,940,337)
Series A Convertible Preferred Stock dividends [1] (52,299) (130,010)
Series A-1 Convertible Preferred Stock dividends (6,196) (6,196)
Deemed dividend Series A-1 Convertible Preferred Stock (182,500) (182,500)
Net loss attributable to common stockholders [2] $ (5,370,313) $ (1,928,722) $ (10,707,819) $ (3,940,337)
Net loss attributable to common stockholders per share, basic and diluted [3] $ (0.40) $ (0.14) $ (0.80) $ (0.31)
Weighted average common shares outstanding - basic and diluted 13,332,629 13,310,000 13,331,585 12,855,714
[1] On July 3, 2017, 2,660,000 Series S Warrants were issued in connection with the $5.0 million Senior Secured Notes Payable. While the Series S Warrants are exercisable for shares of common stock, if they had been outstanding at June 30, 2017, they would have been excluded from the computation of diluted weighted average shares outstanding, as their inclusion would be anti-dilutive. See Note 14, Subsequent Events, for a discussion of the July 3, 2017 issuance the $5.0 million Senior Secured Promissory Notes and Series S Warrants.
[2] The holders of the Series A Warrants and the Series A-1 Warrants have the same rights to receive dividends as the holders of common stock. As such, the Series A Warrants and Series A-1 Warrants are considered participating securities under the two-class method of calculating net loss per share. The Company has incurred net losses to-date, and as the holders of the Series A Warrants and the Series A-1 Warrants are not contractually obligated to share in the losses, there is no impact on the Company's net loss per share calculation for the periods indicated.
[3] The 422,838 shares of Series A Convertible Preferred Stock, at the election of the holder, if-converted into a number of shares of common stock at a conversion ratio equal to its $6.00 per share stated value divided by a conversion price of $4.99 per share, with such conversion price subject to further reduction, would result in 508,422 incremental shares of newly-issued common stock at September 30, 2017.