Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v2.4.0.6
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
12 Months Ended 77 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2011
Cash flows from operating activities:      
Net loss $ (2,067,964) $ (880,250) $ (7,997,765)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation 0 0 1,909
Stock-based compensation costs 204,898 160,712 2,457,421
Stock-based research and development costs 982 67,222 465,034
Warrant extension costs 199,839 0 199,839
Changes in operating assets and liabilities:      
Funds on deposit with law firm 50,000 (50,000) 0
Grant receivable 116,485 (116,485) 0
Advances on research and development contract services (18,883) (5,100) (28,983)
Prepaid expenses and other current assets (708) (7,292) (35,354)
Increase (decrease) in -      
Accounts payable and accrued expenses 80,996 (55,201) 109,341
Liquidated damages payable under registration rights agreement 0 0 74,000
Research and development contract liabilities 74,688 (50,000) 74,688
Net cash used in operating activities (1,359,667) (936,394) (4,679,870)
Cash flows from investing activities:      
(Increase) decrease in money market funds 1,249,877 (1,576,006) (351,129)
Purchase of office equipment 0 0 (1,909)
Net cash provided by (used in) investing activities 1,249,877 (1,576,006) (353,038)
Cash flows from financing activities:      
Proceeds from exercise of stock options 5,000 0 5,000
Proceeds from sale of common stock to consulting firm 0 0 250
Proceeds from sale of common stock to founder 0 0 1,500
Proceeds from issuance of notes payable to consultant 0 0 200,000
Repayment of notes payable to consultant 0 0 (200,000)
Cash acquired in reverse merger transaction 0 0 62,500
Gross proceeds from sale of securities 0 1,087,500 5,331,389
Payment of private placement offering costs 0 0 (446,147)
Advances received from stockholder 0 0 92,717
Net cash provided by financing activities 5,000 1,087,500 5,047,209
Cash:      
Net increase (decrease) (104,790) (1,424,900) 14,301
Balance at beginning of period 119,091 1,543,991 0
Balance at end of period 14,301 119,091 14,301
Supplemental disclosures of cash flow information:      
Interest 0 0 2,469
Income taxes 0 0 0
Non-cash financing activities:      
Decrease in advances under equity financing 0 1,200,000 1,200,000
Aggregate exercise price of warrants and options exercised on a cashless basis $ 84,207 $ 0 $ 84,207