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 101 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Cash flows from operating activities:      
Net loss $ (1,374,842) $ (3,579,366) $ (12,951,973)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation 0 0 1,909
Stock-based compensation expense included in general and administrative costs 119,125 723,554 3,300,100
Stock-based compensation expense included in research and development costs 125 293,450 758,609
Fair value of warrant extensions 0 1,139,592 1,339,431
Fair value of warrant discount 0 334,024 334,024
Changes in operating assets and liabilities:      
Advances on research and development contract services 17,695 (22,592) (33,880)
Prepaid expenses and other current assets (2,827) (4,825) (43,006)
Increase (decrease) in -      
Accounts payable and accrued expenses 27,358 (28,925) 107,774
Liquidated damages payable under registration rights agreement 0 0 74,000
Research and development contract liabilities 33,264 (60,669) 47,283
Net cash used in operating activities (1,180,102) (1,205,757) (7,065,729)
Cash flows from investing activities:      
(Increase) decrease in money market funds (1) 344,995 (6,135)
Purchase of office equipment 0 0 (1,909)
Net cash provided by (used in) investing activities (1) 344,995 (8,044)
Cash flows from financing activities:      
Proceeds from exercise of stock options 0 33,333 38,333
Proceeds from exercise of warrants 0 2,468,250 2,468,250
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 0 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 0 2,501,583 7,548,792
Cash:      
Net increase (decrease) (1,180,103) 1,640,821 475,019
Balance at beginning of period 1,655,122 14,301 0
Balance at end of period 475,019 1,655,122 475,019
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 0 1,200,000
Aggregate exercise price of warrants and options exercised on a cashless basis $ 0 $ 109,391 $ 193,598