Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 11-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | RestorGenex Corp | |
Entity Central Index Key | 1053691 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Is Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 18,614,968 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2015 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $19,209,918 | $21,883,887 |
Prepaid expenses, deposits and other assets | 1,790,783 | 2,286,930 |
Total current assets | 21,000,701 | 24,170,817 |
PROPERTY AND EQUIPMENT, NET | 115,260 | 102,315 |
OTHER ASSETS | ||
Intangible assets, net | 6,449,628 | 6,449,628 |
Goodwill | 12,055,991 | 12,055,991 |
TOTAL ASSETS | 39,621,580 | 42,778,751 |
CURRENT LIABILITIES | ||
Accounts payable | 301,674 | 417,307 |
Other accrued expenses and liabilities | 1,791,260 | 1,921,293 |
Total current liabilities | 2,092,934 | 2,338,600 |
DEFERRED TAXES | 2,274,526 | 2,274,526 |
TOTAL LIABILITIES | 4,367,460 | 4,613,126 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Common stock :Issued and outstanding; $0.001 par value; 1,000,000,000 shares authorized; 2015 - 18,614,968 ; 2014 - 18,614,968 | 18,615 | 18,615 |
Additional paid-in-capital | 114,042,295 | 113,437,384 |
Accumulated deficit | -78,806,790 | -75,290,374 |
Total stockholders' equity | 35,254,120 | 38,165,625 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $39,621,580 | $42,778,751 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Consolidated Balance Sheets | ||
Common stock par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 18,614,968 | 18,614,968 |
Common stock, shares outstanding | 18,614,968 | 18,614,968 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
EXPENSES | ||
Research and development | $1,551,552 | $169,332 |
General and administrative | 1,961,100 | 1,010,858 |
Depreciation and amortization | 6,284 | 191,330 |
TOTAL EXPENSES | 3,518,936 | 1,371,520 |
LOSS FROM OPERATIONS | -3,518,936 | -1,371,520 |
OTHER EXPENSES/(INCOME) | ||
Other (income) expenses | -2,520 | -49,639 |
Interest expense | 58,294 | |
TOTAL OTHER (INCOME)/EXPENSES | -2,520 | 8,655 |
NET LOSS | ($3,516,416) | ($1,380,175) |
TOTAL BASIC AND DILUTED LOSS PER SHARE (in dollars per share) | ($0.19) | ($0.23) |
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING | 18,614,968 | 5,934,474 |
FULLY-DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING | 18,614,968 | 5,934,474 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
CASH FLOWS (USED IN) OPERATING ACTIVITIES | ||
Net loss | ($3,516,416) | ($1,380,175) |
Adjustments to reconcile net loss to net cash (used in) operating activities | ||
Depreciation and amortization | 6,284 | 191,330 |
Employee and director stock-based compensation - non-cash | 605,427 | 149,885 |
Stock warrant expense - noncash | 132,423 | |
Changes in other assets and liabilities affecting cash flows from operations | ||
Prepaid expenses, deposits and other assets | 363,208 | 286,774 |
Accounts payable and accrued liabilities | -245,666 | 319,293 |
Net cash (used in) operating activities | -2,654,740 | -432,893 |
CASH FLOWS (USED IN) INVESTING ACTIVITIES | ||
Purchase of fixed assets | -19,229 | |
Net cash (used in) investing activities | -19,229 | |
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES | ||
Proceeds on notes payable | 400,000 | |
Net cash provided by financing activities | 400,000 | |
NET (DECREASE) CASH AND CASH EQUIVALENTS | -2,673,969 | -32,893 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 21,883,887 | 254,964 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 19,209,918 | 222,071 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Acquisition of business in exchange for common stock | $6,800,000 |
Description_of_Business
Description of Business | 3 Months Ended |
Mar. 31, 2015 | |
Description of Business | |
Description of Business | |
1.Description of Business | |
RestorGenex Corporation (“Company”) is a specialty biopharmaceutical company focused on developing products for ophthalmology, oncology and dermatology. The Company’s lead product is a novel PI3K/Akt/mTOR pathway inhibitor which has completed two Phase I clinical trials for age-related macular degeneration and is in pre-clinical development in oncology, specifically glioblastoma multiforme. The Company’s current pipeline also includes a “soft” anti-androgen compound for the treatment of acne vulgaris. The Company’s novel inhibition of the PI3K/Akt/mTOR pathway and unique targeting of the androgen receptor show promise in a number of additional diseases, which the Company is evaluating for the purpose of creating innovative therapies that are safe and effective treatments to satisfy unmet medical needs. | |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Basis of Presentation and Significant Accounting Policies | |
Basis of Presentation and Significant Accounting Policies | |
2.Basis of Presentation and Significant Accounting Policies | |
Basis of Presentation | |
The unaudited financial statements presented in this report represent the consolidation of RestorGenex Corporation and its consolidated subsidiaries. | |
The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim financial statements. Accordingly, certain information related to significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These unaudited condensed consolidated financial statements reflect, in the opinion of management, all material adjustments (which include only normally recurring adjustments) necessary to fairly state, in all material respects, the Company’s financial position, results of operations and cash flows for the periods presented. | |
Operating results for interim periods are not necessarily indicative of the results that can be expected for any subsequent interim period or for a full year. These interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in its annual report on Form 10-K for the year ended December 31, 2014. | |
In the fourth quarter of 2014, the Company recorded certain adjustments for misstatements related to prior 2014 interim and prior annual periods that had been deemed immaterial. See Note 2 to the Company’s consolidated financial statements for the year ended December 31, 2014, included in the Company’s annual report on Form 10-K for the year ended December 31, 2014, for further information as to the nature of the adjustments recorded in the fourth quarter of 2014. | |
Reclassifications | |
Certain first quarter 2014 amounts were reclassified to conform to the manner of presentation in the current period. These reclassifications included: | |
(a)The break-out of $169,332 of research and development expenses for the first quarter of 2014 into a separate line item in the condensed consolidated statements of operations. In the prior year period, such amount had been included in the line item “general and administrative.” | |
(b)$286,774 of expense recognized in the first quarter of 2014 from amortizing the prepaid expense asset for general financial advisory and investment banking services described in Note 4 to these condensed consolidated financial statements was reclassified to “general and administrative” expense in the condensed consolidated statements of operations from “depreciation and amortization” expense where it was presented in the prior year. In the condensed consolidated statements of cash flows, the same amount was reclassified within the “cash flows used in operating activities” section from “depreciation and amortization” in the prior period presentation to “prepaid expenses, deposits and other assets” in the current period presentation. | |
(c)The combination of various line items within current liabilities on the condensed consolidated balance sheets into a single line item for “other accrued expenses and liabilities.” | |
(d)$149,885 of expense recognized in the first quarter of 2014 from stock-based compensation and warrant expense described in Notes 7 and 8 to these condensed consolidated financial statements was reclassified to “general and administrative” expense in the first quarter of 2015 condensed consolidated statements of operations presentation from “warrants, options and stock compensation” expense in the prior period presentation. In the condensed consolidated statements of cash flows, the same amount was reclassified within the “cash flows used in operating activities” section from “warrants, options and stock” in the prior period presentation to “employee and director stock-based compensation — non-cash” in the amount of $149,885 in the current period presentation. | |
(e)$131,686 of expense recognized in the first quarter of 2014 from legal and professional services was reclassified to “general and administrative” expense in the first quarter of 2015 condensed consolidated statements of operations presentation from “legal and professional services” expense in the prior period presentation. | |
Use of Estimates | |
The preparation of the Company’s condensed consolidated financial statements in accordance with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Company’s condensed consolidated financial statements and accompanying notes. Although these estimates are based on the Company’s knowledge of current events and actions that the Company may undertake in the future, actual results may differ from such estimates and assumptions. | |
Income Taxes | |
The Company has no current tax provision due to its current and accumulated losses, which result in net operating loss carryforwards. The Company’s deferred tax liability relates to indefinite lived intangible assets. See Note 18 to the Company’s consolidated financial statements for the year ended December 31, 2014 included in the Company’s annual report on Form 10-K for the year ended December 31, 2014. | |
Comprehensive Income (Loss) | |
The Company does not have items of other comprehensive income (loss) for the three months ended March 31, 2015 or March 31, 2014; and therefore, comprehensive loss equals net loss for those periods. | |
Recently Issued Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (the “FASB”) issued guidance that changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2014, which means the Company’s first quarter of 2015, with early adoption permitted. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The adoption of this new guidance did not affect the Company’s consolidated financial position, results of operations or cash flows. | |
In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (ASC Topic 606).” The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: | |
Step 1: Identify the contract(s) with a customer. | |
Step 2: Identify the performance obligation in the contract. | |
Step 3: Determine the transaction price. | |
Step 4: Allocate the transaction price to the performance obligations in the contract. | |
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. | |
For public entities, this ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, however, the FASB has proposed a one-year deferral. Early adoption is not permitted. Entities have the option of applying either a full retrospective approach or a modified approach to adopt the guidance in the ASU. The Company is evaluating the potential impact of adoption of this ASU on its consolidated financial statements. | |
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). This pronouncement provides additional guidance surrounding the disclosure of going concern uncertainties in the financial statements and implementing requirements for management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. The Company will adopt this guidance as of January 1, 2017. The Company does not anticipate that the adoption of this guidance will result in additional disclosures; however, management will begin performing the periodic assessments required by ASU 2014-15 on its effective date. | |
Acquisitions
Acquisitions | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Acquisitions | |||||
Acquisitions | |||||
3.Acquisitions | |||||
Paloma and VasculoMedics Acquisitions | |||||
On March 3, 2014, the Company entered into an agreement and plan of merger with Paloma Acquisition, Inc., Paloma Pharmaceuticals, Inc. (“Paloma”) and David Sherris, Ph.D., as founding stockholder and holder representative, pursuant to which the Company agreed to acquire by virtue of a merger all of the outstanding capital stock of Paloma, with Paloma becoming a wholly owned subsidiary of the Company. On March 28, 2014, the merger with Paloma was effected and the Company issued an aggregate of 2,500,000 shares of common stock to the holders of Paloma’s common stock and its derivative securities, which included the assumption of promissory notes of Paloma in the aggregate amount (including both principal amount and accrued interest) of approximately $1,151,725, to be paid on the first anniversary of the closing date of the Paloma merger. On August 5, 2014, the Company repaid in full the then-outstanding balance, including accrued interest of the Paloma assumed promissory notes, totaling $1,331,007. The notes were terminated upon their prepayment and there were no early termination fees. | |||||
Also on March 3, 2014, the Company entered into an agreement and plan of merger with VasculoMedics Acquisition, Inc., VasculoMedics, Inc. (“VasculoMedics”) and David Sherris, Ph.D. pursuant to which the Company agreed to acquire by virtue of a merger all of the outstanding capital stock of VasculoMedics, with VasculoMedics becoming a wholly owned subsidiary of the Company. The VasculoMedics merger was concurrently closed with and as a condition to the closing of the Paloma merger on March 28, 2014 and the Company issued an aggregate of 220,000 shares of common stock to the VasculoMedics stockholders. | |||||
The acquisitions of Paloma and VasculoMedics were additional steps in the implementation of the Company’s plan to position itself as a specialty biopharmaceutical company. The total purchase consideration for the Paloma and VasculoMedics acquisitions was $6,800,000. | |||||
The transaction has been accounted for using the acquisition method of accounting which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The valuation technique utilized to value the intangible assets was the cost approach. The following table summarizes the assets acquired and liabilities assumed as of the acquisition date: | |||||
March 3, 2014 | |||||
Intangibles assets | $ | 6,449,628 | |||
Prepaids and other current assets | 23,642 | ||||
Property, plant and equipment | 58,123 | ||||
Goodwill | 3,829,858 | ||||
Accrued liabilities | (135,000 | ) | |||
Notes payable and accrued interest | (1,151,725 | ) | |||
Deferred tax liability | (2,274,526 | ) | |||
Net assets acquired | $ | 6,800,000 | |||
Pro Forma Financial Information (Unaudited) | |||||
The following pro forma financial information reflects the consolidated results of operations of the Company as if the acquisitions of Paloma and VasculoMedics had taken place on January 1, 2013. The pro forma information includes acquisition and integration expenses. The pro forma financial information is not necessarily indicative of the results of operations as they would have been had the transactions been effected on the assumed date. | |||||
Three Months Ended | |||||
March 31, 2014 | |||||
Net revenues | $ | 0 | |||
Net loss | (1,687,269 | ) | |||
Basic and diluted loss per share | $ | (0.19 | ) | ||
Prepaid_Expenses_Deposits_and_
Prepaid Expenses, Deposits and Other Assets | 3 Months Ended |
Mar. 31, 2015 | |
Prepaid Expenses, Deposits and Other Assets | |
Prepaid Expenses, Deposits and Other Assets | |
4.Prepaid Expenses, Deposits and Other Assets | |
In July 2013, the Company entered into an agreement with Maxim Group LLC (“Maxim”) to provide general financial advisory and investment banking services to the Company for three years on a non-exclusive basis. Under this agreement, the Company issued Maxim 210,250 shares of the Company’s common stock. These shares were valued at $15.00 per share, which was the closing price of the common stock on the date of the agreement, for a total expense of $3,153,750. This expense is being recognized ratably over the life of the three-year term of the agreement at $262,813 per quarter. As of March 31, 2015, $1,314,062 remained in prepaid expenses, deposits and other assets related to the Maxim agreement on the condensed consolidated balance sheets. | |
Intangible_Assets_Net
Intangible Assets, Net | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Intangible Assets, Net | ||||||||||||||||||||
Intangible Assets, Net | ||||||||||||||||||||
5.Intangible Assets, Net | ||||||||||||||||||||
Intangible assets were as follows: | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Gross | Accumulated | Intangible | Gross | Accumulated | Intangible | |||||||||||||||
Carrying | Amortization | Assets, net | Carrying | Amortization | Assets, net | |||||||||||||||
Amount | Amount | |||||||||||||||||||
In-process research and development costs (IPR&D) | $ | 6,449,628 | $ | 0 | $ | 6,449,628 | $ | 6,449,628 | $ | 0 | $ | 6,449,628 | ||||||||
For the three months ended March 31, 2014, the Company recorded amortization expense on finite lived intangible assets of $186,819 within depreciation and amortization on the condensed consolidated statements of operations. Such amortization expense related to intangible assets acquired in the Company’s acquisition of Canterbury Laboratories LLC and Hygeia Therapeutics, Inc., which the Company abandoned and wrote-off in the fourth quarter of 2014. See Note 6 to the Company’s consolidated financial statements for the year ended December 31, 2014 included in the Company’s annual report on Form 10-K for the year ended December 31, 2014. | ||||||||||||||||||||
Other_Accrued_Liabilities
Other Accrued Liabilities | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Accrued Liabilities. | ||||||||
Other Accrued Liabilities | ||||||||
6.Other Accrued Liabilities | ||||||||
Other accrued liabilities consisted of the following: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Payroll related | $ | 397,447 | $ | 741,032 | ||||
Professional fees | 419,412 | 217,663 | ||||||
Board fees | 59,687 | 55,000 | ||||||
Rent liability for facilities no longer occupied | 808,418 | 808,418 | ||||||
Other | 106,296 | 99,180 | ||||||
$ | 1,791,260 | $ | 1,921,293 | |||||
Stockholders_Equity
Stockholder's Equity | 3 Months Ended |
Mar. 31, 2015 | |
Stockholder's Equity | |
Stockholder's Equity | |
7.Stockholder’s Equity | |
Common Stock | |
During the three months ended March 31, 2015, the Company did not issue, purchase or retire any shares of its common stock. | |
Warrants | |
During the three months ended March 31, 2015, the Company did not grant any warrants to purchase shares of its common stock and no warrants were exercised. During the three months ended March 31, 2015, warrants to purchase an aggregate of 8,500 shares of common stock expired unexercised. | |
During the three months ended March 31, 2014, the Company issued to an independent consultant a warrant to purchase 15,000 shares of common stock at an exercise price of $4.90 in consideration for services. This warrant has a five-year term and vested in monthly installments over one year, resulting in 2,500 vested shares and a Black-Scholes warrant expense of $2,993 during the three months ended March 31, 2015. This warrant was fully vested as of March 31, 2015. | |
In December 2014, the Company issued to its investor relations firm a warrant to purchase 250,000 shares of common stock at an exercise price of $3.75 in consideration for investor relations services for one year, commencing December 15, 2014 and ending December 14, 2015. This warrant has a five-year term and was immediately vested and exercisable as of the date of grant, resulting in Black-Scholes warrant value of $517,576, of which $129,430 was expensed in general and administrative expenses during the three months ended March 31, 2015. | |
Warrants to purchase an aggregate of 4,815,266 shares of the Company’s common stock were outstanding and exercisable as of March 31, 2015 with per share exercise prices ranging from $2.00 to $200.00 and a weighted average exercise price of $8.58 per share. | |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Stock-Based Compensation | ||||||||
Stock-Based Compensation | ||||||||
8.Stock-Based Compensation | ||||||||
During the three months ended March 31, 2015, the Company did not grant any options to purchase shares of its common stock and no options were exercised. During the three months ended March 31, 2015, 137,975 options were cancelled or expired unexercised. Options to purchase an aggregate of 3,510,272 shares of common stock were outstanding as of March 31, 2015, and options to purchase an aggregate of 1,318,043 shares of common stock were exercisable as of March 31, 2015. All options outstanding as of March 31, 2015 are non-plan options and not granted under the terms of any equity based compensation plan. On March 5, 2015, the Company’s Board of Directors approved the RestorGenex Corporation 2015 Equity Incentive Plan (the “2015 Equity Plan”), subject to approval by the Company’s stockholders at the next annual meeting of stockholders currently scheduled to be held on June 17, 2015. If approved by the Company’s stockholders, the 2015 Equity Plan will allow for the issuance of up to a maximum of 2,500,000 shares of common stock in connection with the grant of stock-based awards, including stock options, restricted stock, restricted stock units, stock appreciation rights and other types of awards as deemed appropriate. | ||||||||
Options are granted with exercise prices equal to the fair value of the common stock on the date of grant. The Company recognizes the fair value of stock-based awards granted in exchange for employee and non-employee services as a cost of those services. The Company recognizes stock-based compensation expense for option awards on a straight-line basis over the vesting period. | ||||||||
The following table summarizes the stock-based compensation expense for employees and non-employees recognized in the Company’s condensed consolidated statements of operations for the periods indicated: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Research and development | $ | 231,524 | $ | 0 | ||||
General and administrative | 373,903 | 149,885 | ||||||
Total stock-based compensation expense | $ | 605,427 | $ | 149,885 | ||||
As of March 31, 2015, the Company had $5,171,725 of total unrecognized compensation cost related to unvested stock-based compensation arrangements granted to employees. That cost is expected to be recognized over a weighted-average service period of 2.15 years. | ||||||||
Basic_and_Diluted_Net_Loss_Per
Basic and Diluted Net Loss Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Basic and Diluted Net Loss Per Share | ||||||||
Basic and diluted net loss per share | ||||||||
9.Basic and Diluted Net Loss Per Share | ||||||||
Basic net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding for the period. Diluted net loss per share is computed similar to basic net loss per share except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if all of the Company’s potential shares, warrants and stock options had been issued and if the additional shares were dilutive. | ||||||||
Because of their anti-dilutive effect, 8,325,538 and 1,504,308 shares of the Company’s common stock equivalents comprised of stock options and warrants for the three months ended March 31, 2015 and 2014, respectively, have been excluded from the calculation of diluted net loss per share. | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Basic and dilutive numerator: | ||||||||
Net loss, as reported | $ | (3,516,416 | ) | $ | (1,380,175 | ) | ||
Denominator: | ||||||||
Weighted-average shares outstanding | 18,614,968 | 5,934,474 | ||||||
Net loss per share - basic and diluted | $ | (0.19 | ) | $ | (0.23 | ) | ||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies | |||||
Commitments and Contingencies | |||||
10.Commitments and Contingencies | |||||
Office Space Rental | |||||
On September 4, 2014, the Company entered into a lease agreement for office space totaling approximately 2,900 square feet in Buffalo Grove, Illinois and relocated its corporate headquarters to this facility in the third quarter of 2014. The term of the lease commenced on September 15, 2014 and will continue through February 28, 2018. The Company has an option to renew the lease for one renewal term of three years. Under the lease agreement, the first five months were rent free and then the base rent is approximately $6,000 per month through February 28, 2016 for a total of approximately $72,000 per year. The base rent will increase to approximately $6,100 per month for the first year thereafter and $6,200 per month for the second year thereafter. | |||||
The Company’s contractual obligations with respect to rental commitments as of March 31, 2015 were as follows: | |||||
Rental Commitments | |||||
Payments due by period: | |||||
One year | $ | 71,845 | |||
Two years | 73,279 | ||||
Three years | 68,378 | ||||
Thereafter | — | ||||
Total | $ | 213,502 | |||
Purchase Obligations | |||||
As of March 31, 2015, the Company had future purchase obligation commitments for $1,103,970 in regards to the preclinical development of RES-440 and RES-529. | |||||
Litigation | |||||
From time to time, the Company is subject to various pending or threatened legal actions and proceedings, including those that arise in the ordinary course of its business, which may include employment matters, breach of contract disputes and stockholder litigation. Such actions and proceedings are subject to many uncertainties and to outcomes that are not predictable with assurance and that may not be known for extended periods of time. The Company records a liability in its condensed consolidated financial statements for costs related to claims, including future legal costs, settlements and judgments, where the Company has assessed that a loss is probable and an amount can be reasonably estimated. If the reasonable estimate of a probable loss is a range, the Company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. The Company discloses a contingent liability even if the liability is not probable or the amount is not estimable, or both, if there is a reasonable possibility that a material loss may have been incurred. In the opinion of management, as of March 31, 2015, the amount of liability, if any, with respect to these matters, individually or in the aggregate, will not materially affect the Company’s consolidated results of operations, financial position or cash flows. | |||||
On August 7, 2014, a complaint was filed in the Superior Court of Los Angeles County, California by Paul Feller, the Company’s former Chief Executive Officer under the caption Paul Feller v. RestorGenex Corporation, Pro Sports & Entertainment, Inc., ProElite, Inc. and Stratus Media Group, GmbH (Case No. BC553996). The complaint asserts various causes of action, including, among other things, promissory fraud, negligent misrepresentation, breach of contract, breach of employment agreement, breach of the covenant of good faith and fair dealing, violations of the California Labor Code and common counts. The plaintiff is seeking, among other things, compensatory damages in an undetermined amount, punitive damages, accrued interest and an award of attorneys’ fees and costs. On December 30, 2014, the Company filed a petition to compel arbitration and a motion to stay the action. On April 1, 2015, the plaintiff filed a petition in opposition to the Company’s petition to compel arbitration and a motion to stay the action. After a hearing for the petition and motion on April 14, 2015, the Court granted the Company’s petition to compel arbitration and a motion to stay the action. A status conference is scheduled for January 14, 2016. The Company believes this action is without merit and intends to defend the action vigorously. Because this lawsuit is in an early stage, the Company does not believe a loss is probable, and is unable to predict the outcome of the lawsuit and the possible loss or range of loss, if any, associated with its resolution or any potential effect the lawsuit may have on the Company’s financial position, results of operations or cash flows. Depending on the outcome or resolution of this lawsuit, it could have a material effect on the Company’s financial position, results of operations or cash flows. | |||||
Subsequent_Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Event | |
Subsequent Event | |
11.Subsequent Event | |
On April 30, 2015, the Company entered into several agreements with Or-Genix Therapeutics, Inc. (“Or-Genix”), pursuant to which the Company transferred certain of its non-focus technology rights to Or-Genix in exchange for a 19.9% ownership interest in Or-Genix, representing 2,484,395 shares of the common stock of Or-Genix, and purchased $250,000 in perpetual non-redeemable preferred stock. The rights the Company transferred include exclusive rights to a compound currently known as “RES-102,” which is a “soft” estrogen potentially to be developed for the treatment of aging skin fragility/thinning and vulvo-vaginal atrophy, and exclusive rights to a compound currently known as “RES-214,” a non-prescription cosmeceutical product under development by a sublicensee. The Company previously licensed these rights from Yale University and as part of this transaction assigned those license agreements to Or-Genix. The Company also assigned its rights under a sublicense agreement with Ferndale Pharma Group, Inc. for the formulation, manufacture, sale and marketing of RES-214. Or-Genix is founded and owned primarily by Yael Schwartz, Ph.D., a former member of the Company’s Board of Directors and former Executive Vice President, Preclinical Development. The transfer of these technology rights to Or-Genix was executed since the Company is focusing its development efforts and resources on its other technologies. | |
On April 30, 2015, the Company entered into a resignation agreement with Yael Schwartz, Ph.D., a former member of the Company’s Board of Directors and former Executive Vice President, Preclinical Development, pursuant to which Dr. Schwartz resigned as an officer, employee and director of the Company and its subsidiaries. Under the terms of the resignation agreement, the Company agreed to pay Dr. Schwartz a cash severance payment in the amount of $247,500, which is equal to nine months of her base salary, paid in accordance with the Company’s standard payroll practices, in exchange for her execution of a general and customary release of claims. The resignation agreement also requires Dr. Schwartz to comply with certain non-competition and non-solicitation obligations. | |
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Basis of Presentation and Significant Accounting Policies | |
Basis of Presentation | |
Basis of Presentation | |
The unaudited financial statements presented in this report represent the consolidation of RestorGenex Corporation and its consolidated subsidiaries. | |
The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim financial statements. Accordingly, certain information related to significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These unaudited condensed consolidated financial statements reflect, in the opinion of management, all material adjustments (which include only normally recurring adjustments) necessary to fairly state, in all material respects, the Company’s financial position, results of operations and cash flows for the periods presented. | |
Operating results for interim periods are not necessarily indicative of the results that can be expected for any subsequent interim period or for a full year. These interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in its annual report on Form 10-K for the year ended December 31, 2014. | |
In the fourth quarter of 2014, the Company recorded certain adjustments for misstatements related to prior 2014 interim and prior annual periods that had been deemed immaterial. See Note 2 to the Company’s consolidated financial statements for the year ended December 31, 2014, included in the Company’s annual report on Form 10-K for the year ended December 31, 2014, for further information as to the nature of the adjustments recorded in the fourth quarter of 2014. | |
Reclassifications | |
Reclassifications | |
Certain first quarter 2014 amounts were reclassified to conform to the manner of presentation in the current period. These reclassifications included: | |
(a)The break-out of $169,332 of research and development expenses for the first quarter of 2014 into a separate line item in the condensed consolidated statements of operations. In the prior year period, such amount had been included in the line item “general and administrative.” | |
(b)$286,774 of expense recognized in the first quarter of 2014 from amortizing the prepaid expense asset for general financial advisory and investment banking services described in Note 4 to these condensed consolidated financial statements was reclassified to “general and administrative” expense in the condensed consolidated statements of operations from “depreciation and amortization” expense where it was presented in the prior year. In the condensed consolidated statements of cash flows, the same amount was reclassified within the “cash flows used in operating activities” section from “depreciation and amortization” in the prior period presentation to “prepaid expenses, deposits and other assets” in the current period presentation. | |
(c)The combination of various line items within current liabilities on the condensed consolidated balance sheets into a single line item for “other accrued expenses and liabilities.” | |
(d)$149,885 of expense recognized in the first quarter of 2014 from stock-based compensation and warrant expense described in Notes 7 and 8 to these condensed consolidated financial statements was reclassified to “general and administrative” expense in the first quarter of 2015 condensed consolidated statements of operations presentation from “warrants, options and stock compensation” expense in the prior period presentation. In the condensed consolidated statements of cash flows, the same amount was reclassified within the “cash flows used in operating activities” section from “warrants, options and stock” in the prior period presentation to “employee and director stock-based compensation — non-cash” in the amount of $149,885 in the current period presentation. | |
(e)$131,686 of expense recognized in the first quarter of 2014 from legal and professional services was reclassified to “general and administrative” expense in the first quarter of 2015 condensed consolidated statements of operations presentation from “legal and professional services” expense in the prior period presentation. | |
Use of Estimates | |
Use of Estimates | |
The preparation of the Company’s condensed consolidated financial statements in accordance with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Company’s condensed consolidated financial statements and accompanying notes. Although these estimates are based on the Company’s knowledge of current events and actions that the Company may undertake in the future, actual results may differ from such estimates and assumptions. | |
Income Taxes. | |
Income Taxes | |
The Company has no current tax provision due to its current and accumulated losses, which result in net operating loss carryforwards. The Company’s deferred tax liability relates to indefinite lived intangible assets. See Note 18 to the Company’s consolidated financial statements for the year ended December 31, 2014 included in the Company’s annual report on Form 10-K for the year ended December 31, 2014. | |
Comprehensive Income (Loss) | |
Comprehensive Income (Loss) | |
The Company does not have items of other comprehensive income (loss) for the three months ended March 31, 2015 or March 31, 2014; and therefore, comprehensive loss equals net loss for those periods. | |
Recently Issued Accounting Pronouncements | |
Recently Issued Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (the “FASB”) issued guidance that changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2014, which means the Company’s first quarter of 2015, with early adoption permitted. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The adoption of this new guidance did not affect the Company’s consolidated financial position, results of operations or cash flows. | |
In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (ASC Topic 606).” The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: | |
Step 1: Identify the contract(s) with a customer. | |
Step 2: Identify the performance obligation in the contract. | |
Step 3: Determine the transaction price. | |
Step 4: Allocate the transaction price to the performance obligations in the contract. | |
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. | |
For public entities, this ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, however, the FASB has proposed a one-year deferral. Early adoption is not permitted. Entities have the option of applying either a full retrospective approach or a modified approach to adopt the guidance in the ASU. The Company is evaluating the potential impact of adoption of this ASU on its consolidated financial statements. | |
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). This pronouncement provides additional guidance surrounding the disclosure of going concern uncertainties in the financial statements and implementing requirements for management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. The Company will adopt this guidance as of January 1, 2017. The Company does not anticipate that the adoption of this guidance will result in additional disclosures; however, management will begin performing the periodic assessments required by ASU 2014-15 on its effective date. | |
Acquisitions_Tables
Acquisitions (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Business combinations | |||||
Schedule of pro forma financial information | |||||
Three Months Ended | |||||
March 31, 2014 | |||||
Net revenues | $ | 0 | |||
Net loss | (1,687,269 | ) | |||
Basic and diluted loss per share | $ | (0.19 | ) | ||
Paloma and VasculoMedics | |||||
Business combinations | |||||
Summary of assets acquired and liabilities assumed | |||||
March 3, 2014 | |||||
Intangibles assets | $ | 6,449,628 | |||
Prepaids and other current assets | 23,642 | ||||
Property, plant and equipment | 58,123 | ||||
Goodwill | 3,829,858 | ||||
Accrued liabilities | (135,000 | ) | |||
Notes payable and accrued interest | (1,151,725 | ) | |||
Deferred tax liability | (2,274,526 | ) | |||
Net assets acquired | $ | 6,800,000 | |||
Intangible_Assets_Net_Tables
Intangible Assets, Net (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Intangible Assets, Net | ||||||||||||||||||||
Schedule of intangible assets | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Gross | Accumulated | Intangible | Gross | Accumulated | Intangible | |||||||||||||||
Carrying | Amortization | Assets, net | Carrying | Amortization | Assets, net | |||||||||||||||
Amount | Amount | |||||||||||||||||||
In-process research and development costs (IPR&D) | $ | 6,449,628 | $ | 0 | $ | 6,449,628 | $ | 6,449,628 | $ | 0 | $ | 6,449,628 | ||||||||
Other_Accrued_Liabilities_Tabl
Other Accrued Liabilities (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Accrued Liabilities. | ||||||||
Other accrued expenses and other liabilities | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Payroll related | $ | 397,447 | $ | 741,032 | ||||
Professional fees | 419,412 | 217,663 | ||||||
Board fees | 59,687 | 55,000 | ||||||
Rent liability for facilities no longer occupied | 808,418 | 808,418 | ||||||
Other | 106,296 | 99,180 | ||||||
$ | 1,791,260 | $ | 1,921,293 | |||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Stock-Based Compensation | ||||||||
Summary of stock option compensation expense recognized in the consolidated statements of operations | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Research and development | $ | 231,524 | $ | 0 | ||||
General and administrative | 373,903 | 149,885 | ||||||
Total stock-based compensation expense | $ | 605,427 | $ | 149,885 | ||||
Basic_and_Diluted_Net_Loss_Per1
Basic and Diluted Net Loss Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Basic and Diluted Net Loss Per Share | ||||||||
Summary of basic and diluted net loss per share | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Basic and dilutive numerator: | ||||||||
Net loss, as reported | $ | (3,516,416 | ) | $ | (1,380,175 | ) | ||
Denominator: | ||||||||
Weighted-average shares outstanding | 18,614,968 | 5,934,474 | ||||||
Net loss per share - basic and diluted | $ | (0.19 | ) | $ | (0.23 | ) | ||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies | |||||
Contractual obligations | |||||
The Company’s contractual obligations with respect to rental commitments as of March 31, 2015 were as follows: | |||||
Rental Commitments | |||||
Payments due by period: | |||||
One year | $ | 71,845 | |||
Two years | 73,279 | ||||
Three years | 68,378 | ||||
Thereafter | — | ||||
Total | $ | 213,502 | |||
Description_of_Business_Detail
Description of Business (Details) | Mar. 31, 2015 |
item | |
Description of Business | |
Number of Phase I clinical trials completed | 2 |
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Description of Business | |
Reclassification of research and development expenses | $169,332 |
Reclassification of amortization for prepaid expense asset | 286,774 |
Reclassification of stock-based compensation and warrant expense | 149,885 |
Reclassification of legal and professional services | 131,686 |
Reclassification of employee and director non-cash stock-based compensation | $149,885 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||
Mar. 28, 2014 | Mar. 31, 2014 | Aug. 05, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 03, 2014 | |
Assets acquired and liabilities assumed | ||||||
Goodwill | $12,055,991 | $12,055,991 | ||||
Paloma and VasculoMedics | ||||||
Business combinations | ||||||
Purchase price | 6,800,000 | |||||
Assets acquired and liabilities assumed | ||||||
Intangible assets | 6,449,628 | |||||
Prepaid and other current assets | 23,642 | |||||
Property, plant and equipment | 58,123 | |||||
Goodwill | 3,829,858 | |||||
Accrued liabilities | -135,000 | |||||
Notes payable and accrued interest | -1,151,725 | |||||
Deferred tax liability | -2,274,526 | |||||
Net assets acquired | 6,800,000 | |||||
Pro Forma Financial Information | ||||||
Net loss | -1,687,269 | |||||
Basic and diluted loss per share | ($0.19) | |||||
Paloma and VasculoMedics | Promissory note | ||||||
Business combinations | ||||||
Principal amount and accrued interest of assumed debt | 1,151,725 | |||||
Repayment of outstanding balance and accrued interest | 1,331,007 | |||||
Early termination fees | $0 | |||||
Paloma | ||||||
Business combinations | ||||||
Common stock issued (in shares) | 2,500,000 | |||||
VasculoMedics | ||||||
Business combinations | ||||||
Common stock issued (in shares) | 220,000 |
Prepaid_Expenses_Deposits_and_1
Prepaid Expenses, Deposits and Other Assets (Details) (USD $) | 1 Months Ended | 3 Months Ended | ||
Jul. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | |
Prepaid Expenses | ||||
Prepaid expenses, deposits and other assets | $1,790,783 | $2,286,930 | ||
Maxim Group LLC | ||||
Prepaid Expenses | ||||
Term of agreement | 3 years | |||
Number of shares of outstanding common stock granted as part of the agreement | 210,250 | |||
Price at which shares are granted as part of the agreement (in dollars per share) | $15 | |||
Value of shares of outstanding common stock granted as part of the agreement | 3,153,750 | |||
Value of shares of outstanding common stock recognized per quarter | 262,813 | |||
Prepaid expenses, deposits and other assets | $1,314,062 |
Intangible_Assets_Net_Details
Intangible Assets, Net (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2015 | |
Intangible assets | ||
Amortization of finite lived intangible assets | $186,819 | |
In-process research and development costs (IPR&D) | ||
Intangible assets | ||
Gross carrying amount | 6,449,628 | 6,449,628 |
Intangible assets, net | $6,449,628 | $6,449,628 |
Other_Accrued_Liabilities_Deta
Other Accrued Liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Accounts Payable and Accrued Liabilities | ||
Payroll related | $397,447 | $741,032 |
Professional fees | 419,412 | 217,663 |
Board fees | 59,687 | 55,000 |
Rent liability for facilities no longer occupied | 808,418 | 808,418 |
Other | 106,296 | 99,180 |
Total Accounts Payable and Accrued Liabilities | $1,791,260 | $1,921,293 |
Stockholders_Equity_Details
Stockholder's Equity (Details) (USD $) | 3 Months Ended | 1 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Class of Warrant or Right [Line Items] | ||
Number of shares of common stock to be purchased | 4,815,266 | |
Weighted average exercise price | $8.58 | |
Warrants to purchase common stock | ||
Class of Warrant or Right [Line Items] | ||
Warrants exercised | 0 | |
Warrants expired unexercised | 8,500 | |
Warrants to purchase common stock | Independent consultant | ||
Class of Warrant or Right [Line Items] | ||
Term of warrants | 5 years | |
Number of shares of common stock to be purchased | 15,000 | |
Exercise price of warrants | $4.90 | |
Vesting term of warrants | 1 year | |
Number of warrants vested | 2,500 | |
Warrant expense | $2,993 | |
Warrants to purchase common stock | Investor relations firm | ||
Class of Warrant or Right [Line Items] | ||
Term of warrants | 5 years | |
Number of shares of common stock to be purchased | 250,000 | |
Exercise price of warrants | $3.75 | |
Agreement term | 1 year | |
Fair value of warrants outstanding | 517,576 | |
Warrants to purchase common stock | Investor relations firm | General and administrative | ||
Class of Warrant or Right [Line Items] | ||
Fair value of warrants outstanding | $129,430 | |
Minimum | ||
Class of Warrant or Right [Line Items] | ||
Exercise price of warrants | $2 | |
Maximum | ||
Class of Warrant or Right [Line Items] | ||
Exercise price of warrants | $200 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 05, 2015 | |
Stock option compensation expense | |||
Total stock based compensation expense | $605,427 | $149,885 | |
Stock Options | |||
Stock option compensation expense | |||
Exercised | 0 | ||
Stock options cancelled or expired (in shares) | 137,975 | ||
Options outstanding (in shares) | 3,510,272 | ||
Number of shares exercisable | 1,318,043 | ||
2015 Equity Plan | |||
Stock option compensation expense | |||
Shares authorized for equity incentive plan | 2,500,000 | ||
Research and development | |||
Stock option compensation expense | |||
Total stock based compensation expense | 231,524 | ||
General and administrative | |||
Stock option compensation expense | |||
Total stock based compensation expense | $373,903 | $149,885 |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 2) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Stock-Based Compensation | |
Unrecognized compensation cost | $5,171,725 |
Period of recognition of unrecognized compensation cost | 2 years 1 month 24 days |
Basic_and_Diluted_Net_Loss_Per2
Basic and Diluted Net Loss Per Share (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Basic and Diluted Net Loss Per Share | ||
Antidilutive shares | 8,325,538 | 1,504,308 |
Net loss, as reported | ($3,516,416) | ($1,380,175) |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||
Weighted-average shares outstanding-basic | 18,614,968 | 5,934,474 |
Weighted-average shares outstanding | 18,614,968 | 5,934,474 |
Net loss per share - basic and diluted | ($0.19) | ($0.23) |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (Buffalo Grove, Long-term operating lease agreement, Office space, USD $) | 0 Months Ended | |
Sep. 04, 2014 | Sep. 04, 2014 | |
item | item | |
sqft | sqft | |
Buffalo Grove | Long-term operating lease agreement | Office space | ||
Office Space Rental | ||
Office area under lease | 2,900 | 2,900 |
Number of extension option | 1 | |
Renewal term | 3 years | |
Number of months from lease inception that monthly rental payments are not required | 5 | 5 |
Monthly rent | $6,000 | $6,000 |
Annual rent | 72,000 | 72,000 |
Annual increase in rent for first year | 6,100 | 6,100 |
Annual increase in rent for second year and thereafter | $6,200 | $6,200 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Contractual obligation | |
One year | $71,845 |
Two years | 73,279 |
Three years | 68,378 |
Total | 213,502 |
Future purchase obligations in regards to preclinical development of RES-440 and RES-529 | $1,103,970 |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent Event, USD $) | 1 Months Ended |
Apr. 30, 2015 | |
Subsequent event | |
Severance payments | $247,500 |
Severance payment as the number of months of base salary | 9 months |
Or-Genix Therapeutics Inc | |
Subsequent event | |
Ownership percentage | 19.90% |
Shares owned | 2,484,395 |
Purchase of perpetual non-redeemable preferred stock | $250,000 |