Annual report pursuant to Section 13 and 15(d)

Statements of Cash Flows

Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating activities    
Net loss $ (8,787,771) $ (2,473,465)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 1,939 3,479
Stock-based compensation 2,894,509 $ 707,390
Gain on disposal of equipment (456)
Issuance of shares of common stock to supplier $ 416,000
Accretion of debt discount $ 10,192
Non-cash interest on conversion of debt 184,445
Changes in fair value of put embedded in convertible debt (21,148)
Changes in operating assets and liabilities:    
Prepaid expenses $ (132,021) 19,521
Other assets 5,028
Accounts payable $ (344,240) 249,101
Accrued expenses 231,950 160,071
Other liabilities (1,475) (1,999)
Net cash used in operating activities (5,721,565) (1,157,385)
Cash flows from investing activities    
Purchases of property and equipment (16,999) (1,166)
Net cash used in investing activities (16,999) $ (1,166)
Cash flows from financing activities    
Commissions and issuance costs of initial public offering (2,194,375)
Proceeds from issuance of shares upon closing of initial public offering 20,000,000
Proceeds from the issuance of shares from common stock purchase agreement 1,000,000
Proceeds from exercise of options on common stock $ 5,257 $ 14,400
Deferred offering costs (143,454)
Proceeds of borrowing under notes payable 605,000
Repayment of borrowing under note payable (31,500)
Net proceeds from issuance of preferred stock subject to redemption and warrants to purchase common stock 3,013,127
Net cash provided by financing activities $ 18,810,882 3,457,573
Net increase in cash and cash equivalents 13,072,318 2,299,022
Cash and cash equivalents at beginning of year 2,747,248 448,226
Cash and cash equivalents at end of year $ 15,819,566 $ 2,747,248
Supplemental disclosure of cash flow information    
Cash paid for interest
Cash paid for taxes
Supplemental disclosure of noncash financing activities    
Accrual of commissions and issuance costs of the initial public offering $ 213,561
Deferred offering costs reclassified to additional paid-in capital 665,603
Conversion of all outstanding preferred stock into common stock 8,888
Conversion of all outstanding preferred stock subject to redemption into common stock 16,594,464
Common stock subject to repurchase 180
Cumulative preferred stock dividends 327,569 $ 589,462
Accretion of discount on Series C preferred stock 63,283 $ 8,580
Common stock issued as commitment fee for stock purchase agreement $ 400,392
Conversion of notes payable into preferred stock subject to redemption and warrants to purchase common stock $ 612,923