ADMA Biologics (ADMA) 10-Q 13 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 13, 2016
Document And Entity Information
Entity Registrant Name	ADMA BIOLOGICS, INC.
Entity Central Index Key	1,368,514
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		12,886,741
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current Assets
Cash and Cash Equivalents	$ 8,925,132	$ 10,440,959
Short-Term Investments	2,694,978	6,368,177
Accounts Receivable	943,950	924,468
Inventories	4,049,239	3,445,773
Prepaid Expenses	744,910	111,027
Total Current Assets	17,358,209	21,290,404
Property and Equipment at cost, Net	2,295,994	2,396,950
Other Assets
Deferred Financing Costs	3,554	0
Deposits	27,163	27,163
Total Other Assets	30,717	27,163
TOTAL ASSETS	19,684,920	23,714,517
Current Liabilities
Accounts Payable	2,468,470	2,087,855
Accrued Expenses	1,661,922	1,968,384
Current Portion of Deferred Revenue	145,154	145,154
Current Portion of Leasehold Improvement Loan	15,482	15,139
Total Current Liabilities	4,291,028	4,216,532
Notes Payable, Net of Debt Discount	14,380,759	14,247,212
End of Term Liability, Note Payable	1,432,000	1,432,000
Deferred Revenue	2,797,158	2,832,867
Deferred Rent Liability	121,036	128,676
Leasehold Improvement Loan	32,254	36,256
TOTAL LIABILITIES	$ 23,054,235	$ 22,893,543
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' (DEFICIENCY) EQUITY
Common Stock $0.0001 par value 75,000,000 shares authorized, and 10,713,087 shares issued and outstanding	$ 1,072	$ 1,072
Additional Paid-In Capital	88,661,749	88,239,569
Accumulated Deficit	(92,032,136)	(87,419,667)
TOTAL STOCKHOLDERS' (DEFICIENCY) EQUITY	(3,369,315)	820,974
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIENCY) EQUITY	$ 19,684,920	$ 23,714,517

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Stockholders Equity
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, issued	10,713,087	10,713,087
Common stock, outstanding	10,713,087	10,713,087

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Condensed Consolidated Statements Of Operations
Product revenue	$ 2,088,178	$ 1,484,217
License and other revenue	35,708	18,889
Total Revenues	2,123,886	1,503,106
OPERATING EXPENSES
Cost of product revenue	1,266,421	909,629
Research and development	2,027,712	1,401,723
Plasma centers	1,280,419	1,048,094
General and administrative	1,707,870	1,345,997
TOTAL OPERATING EXPENSES	6,282,422	4,705,443
LOSS FROM OPERATIONS	(4,158,536)	(3,202,337)
OTHER INCOME (EXPENSE):
Interest income	13,508	4,982
Interest expense	(467,441)	(476,040)
Change in fair value of stock warrants	0	67,860
OTHER EXPENSE, NET	(453,933)	(403,198)
NET LOSS	$ (4,612,469)	$ (3,605,535)
NET LOSS PER COMMON SHARE - Basic and Diluted	$ (0.43)	$ (0.37)
WEIGHTED AVERAGE SHARES OUTSTANDING, Basic and Diluted	10,710,587	9,855,323

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - 3 months ended Mar. 31, 2016 - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning Balance, Amount at Dec. 31, 2015	$ 1,072	$ 88,239,569	$ (87,419,667)	$ 820,974
Beginning Balance, Shares at Dec. 31, 2015	10,713,087
Stock-based compensation		422,180		422,180
Net loss			(4,612,469)	(4,612,469)
Ending Balance, Amount at Mar. 31, 2016	$ 1,072	$ 88,661,749	$ (92,032,136)	$ (3,369,315)
Ending Balance, Shares at Mar. 31, 2016	10,713,087

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$ (4,612,469)	$ (3,605,535)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	118,393	117,122
Stock-based compensation	422,180	387,069
Warrant liability	0	(67,860)
Amortization of debt discount	133,547	46,271
Amortization of deferred financing costs	0	23,364
Payment-in-kind interest	0	74,104
Amortization of license revenue	(35,709)	(18,889)
Changes in operating assets and liabilities
Accounts receivable	(19,482)	32,518
Inventories	(603,466)	(232,171)
Prepaid expenses	(633,883)	(469,771)
Accounts payable	377,061	(69,866)
Accrued expenses	(306,462)	(514,564)
Accrued interest	0	9,051
Deferred rent liability	(7,640)	68,382
Net cash used in operating activities	(5,167,930)	(4,220,775)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of short-term investments	3,673,199	(6,859,539)
Purchase of property and equipment	(17,437)	(14,186)
Net cash provided by (used in) investing activities	3,655,762	(6,873,725)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock, net	0	10,463,005
Payments of leasehold improvement loan	(3,659)	(3,345)
Net cash (used in) provided by financing activities	(3,659)	10,459,660
NET DECREASE IN CASH AND CASH EQUIVALENTS	(1,515,827)	(634,840)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	10,440,959	17,199,030
CASH AND CASH EQUIVALENTS - END OF PERIOD	8,925,132	16,564,190
Cash paid for interest	328,223	324,378
Supplemental Disclosure of Noncash Financing Activities:
Reclassification of equity issuance costs to additional paid-in capital	0	11,999
Accrued equity issuance costs	$ 3,554	219,622
Elimination of warrant liability		$ 408,900

1. ORGANIZATION AND BUSINESS

1. ORGANIZATION AND BUSINESS	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
1. ORGANIZATION AND BUSINESS	ADMA Biologics, Inc. (“ADMA” or the “Company”) is a late stage biopharmaceutical company that develops, manufactures, and intends to commercialize specialty plasma-based biologics for the treatment and prevention of certain infectious diseases. The Company’s targeted patient populations include immune-compromised individuals who suffer from an underlying immune deficiency disease or who may be immune-suppressed for medical reasons. ADMA also operates its wholly-owned subsidiary, ADMA BioCenters Georgia, Inc., (“ADMA BioCenters”), a source plasma collection business with U.S. Food and Drug Administration (“FDA”) approved facilities in Norcross, Georgia and Marietta, Georgia. Each facility holds certifications from the German Health Authority (“GHA”) and the Korean Ministry of Food and Drug Safety (“MFDS”). ADMA BioCenters provides ADMA with a portion of its raw material plasma for the manufacture of RI-002, ADMA’s lead product candidate, which is intended for the treatment of Primary Immune Deficiency Disease, (“PIDD”). A Biologics License Application (“BLA”) for RI-002 was submitted to the FDA and accepted for review during the third quarter of 2015. The Company’s Marietta, Georgia center received FDA approval to sell human source plasma within the U.S. during the third quarter of 2015. The Company has experienced net losses and negative cash flows from operations since inception in 2004 and expects these conditions to continue for the foreseeable future. Since inception, the Company has needed to raise capital from the sales of its equity securities and debt financings to sustain operations. In October 2013, the Company completed an Initial Public Offering (“IPO”) to raise gross proceeds of approximately $29.1 million. In March 2015, ADMA completed an underwritten public offering of its common stock, raising gross proceeds of approximately $11.3 million. In June 2015, ADMA entered into a Loan and Security Agreement (the “LSA”) with Oxford Finance LLC (“Oxford”), as collateral agent and lender, pursuant to which ADMA accessed an initial term loan in the aggregate principal amount of $16.0 million, of which approximately $15.7 million was used to repay a prior loan balance of approximately $15.0 million to Hercules Technology Growth Capital, Inc. (“Hercules”), along with approximately $0.4 million of interest and approximately $0.3 million of prepayment premium and other fees, under its prior loan and security agreement, dated December 21, 2012, with Hercules (the “Prior Loan Agreement”), as amended on February 24, 2014, (see Note 3). ADMA may elect to access an additional term loan under the LSA in the aggregate principal amount of $5.0 million if it receives approval of its BLA for RI-002 from the FDA on or before January 31, 2017, which funding would also extend its interest only period for an additional six months pursuant to the May 2016 amendment to the LSA. In May 2016 the Company amended its LSA with Oxford. This amendment provided ADMA with an additional $4.0 million term loan, the availability of which was predicated on completing an equity financing of its common stock of at least $10.0 million in gross proceeds no later than May 31, 2016. In May 2016, the Company completed an underwritten public offering of its common stock, raising gross proceeds of approximately $14.1 million, (see Note 8 for additional details on the equity financing and loan amendment) and subsequently borrowed an additional $4.0 million from Oxford under the amended LSA, which brings the total principal borrowed to $20.0 million. As of March 31, 2016, the Company had working capital of $13.1 million, consisting primarily of $8.9 million of cash and cash equivalents, $2.7 million of short-term investments, $1.0 million of accounts receivable, $4.0 million of inventories, and $0.7 million of prepaid expenses, offset primarily by $2.4 million of accounts payable, $1.7 million of accrued expenses and $0.1 million of deferred revenue. Based upon the Company’s projected revenue and expenditures for 2016 and 2017, including the ongoing implementation of the Company’s commercialization and expansion activities, management currently believes that its cash, cash equivalents, short-term investments and accounts receivable as of the date of this report are sufficient to fund ADMA’s operations, as currently conducted, into the second half of 2017. Because the Company does not anticipate receiving FDA approval for RI-002 earlier than the second half of 2016, if at all, the Company would not expect to generate revenue from the commercialization of RI-002 earlier than such time, if at all. Furthermore, if the Company’s assumptions are incorrect underlying its estimated expenses, timing of FDA approval for RI-002, or estimated revenues for RI-002, it may have to raise additional capital sooner than anticipated. The Company has the option to borrow an additional $5.0 million through its current LSA with Oxford, based upon the Company receiving BLA approval by the FDA for RI-002 by January 31, 2017. Other than this additional $5.0 million, the Company does not have any existing commitments for future external funding. The sale of additional equity or debt securities, if convertible, could result in dilution to the Company’s stockholders. The incurrence of indebtedness would result in increased fixed obligations and could also result in covenants that would restrict the Company’s operations or other financing alternatives. Additional equity or debt financing, grants, or corporate collaboration and potential licensing arrangements may not be available on acceptable terms, if at all. If adequate funds are not available, the Company may be required to delay, reduce the scope of or eliminate the Company’s research and development programs, reduce the Company’s planned clinical trials and delay or abandon potential commercialization efforts of the Company’s lead or other product candidates. The Company has reported losses since inception in June 2004 through March 31, 2016 of $92.0 million. Management believes that the Company will continue to incur net losses and negative net cash flows from operating activities to fund its research and development, commercial programs and meet its obligations on a timely basis through the foreseeable future. ADMA’s long-term liquidity will be dependent upon on its ability to obtain FDA approval for RI-002, generate sales of RI-002 and potentially raise additional capital, to fund its research and development and commercial programs and meet to its obligations on a timely basis, if at all. There can be no assurance that the Company’s research and development will be successfully completed or that any product will be approved or commercially viable. The Company is subject to risks common to companies in the biotechnology industry including, but not limited to, dependence on collaborative arrangements and third-party manufacturers, development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, and compliance with FDA and other governmental regulations and approval requirements.

2. SUMMARY OF SIGNIFICANT ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Basis of presentation and principles of consolidation The accompanying condensed consolidated financial statements include the accounts of ADMA and its wholly-owned subsidiaries, ADMA Plasma Biologics, Inc. and ADMA BioCenters. All significant intercompany transactions and balances have been eliminated in consolidation. The condensed consolidated financial statements for the interim periods included herein are unaudited; however, they contain all adjustments (consisting of only normal recurring adjustments) which in the opinion of management are necessary to present fairly the condensed consolidated financial position of the Company as of March 31, 2016 and its results of operations for the three months ended March 31, 2016 and 2015 and cash flows for the three months ended March 31, 2016 and 2015. The results of operations for the interim periods are not necessarily indicative of results that may be expected for any other interim periods or for the full year. These interim financial statements should be read in conjunction with the audited annual consolidated financial statements and notes thereto included in the Company’s Annual Report for the year ended December 31, 2015 on Form 10-K, filed with the U.S. Securities and Exchange Commission, (the “SEC”) on March 23, 2016. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, (“GAAP”), in accordance with the rules and regulations of the SEC for interim reporting. Pursuant to such rules and regulations, certain information and footnote disclosures normally included in complete annual financial statements have been condensed or omitted. Inventories Plasma inventories (both plasma intended for resale and plasma intended for internal use in the Company's research and development and future anticipated commercialization activities) are carried at the lower of cost or market value determined on the first-in, first-out method. Research and development plasma used in clinical trials was processed to a finished product and subsequently expensed to research and development. Inventory at March 31, 2016 and December 31, 2015 consists of high titer plasma and normal source plasma. Debt In April 2015, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2015-03, Interest—Imputation of Interest Revenue recognition Depending on the agreement with the customer, revenues from the sale of human plasma collected at the Company’s FDA licensed plasma collection centers are recognized at the time of transfer of title and risk of loss to the customer, which occurs at the time of shipment. Revenue is recognized at the time of delivery if the Company retains the risk of loss during shipment. The Company’s revenues are substantially attributable to one customer. Revenue from license fees and research and development services rendered are recognized as revenue when the performance obligations under the terms of the license agreement have been completed. Revenues for the three months ended March 31, 2016 are comprised of product revenues from the sale of normal source human plasma collected from the Company’s plasma collection centers segment and license and other revenues are primarily attributable to the out-licensing of RI-002 to Biotest AG to market and sell in Europe and selected countries in North Africa and the Middle East. Biotest AG and Biotest Pharmaceuticals Corporation, or Biotest, a subsidiary of Biotest AG, has provided the Company with certain financial payment and services in accordance with the related license agreement and is obligated to pay the Company certain amounts in the future if certain milestones are achieved. During the third quarter 2015, the Company recorded deferred revenue of $1.5 million for a milestone payment provided to the Company upon its filing of the BLA for RI-002 with the FDA, in accordance with the terms of the license agreement. Deferred revenue of $1.7 million was recorded in 2013 as a result of certain research and development services provided in accordance with the same license agreement. Deferred revenue is recognized over the term of the license. Deferred revenue is amortized into income for a period of approximately 20 years, the term of the license agreement. Use of estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include valuation of inventory, assumptions used in the fair value determination of stock-based compensation, warrants and the allowance for the valuation of future tax benefits. Loss per common share Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is calculated by dividing net loss attributable to common stockholders as adjusted for the effect of dilutive securities, if any, by the weighted average number of common stock and dilutive common stock outstanding during the period. Potential common stock includes the shares of common stock issuable upon the exercise of outstanding stock options and warrants (using the treasury stock method). Potential common stock in the diluted net loss per share computation is excluded to the extent that it would be anti-dilutive. No potentially dilutive securities are included in the computation of any diluted per share amounts as the Company reported a net loss for all periods presented. The aggregate number of potentially dilutive securities upon the exercise of outstanding warrants and stock options was 1.8 million and 1.5 million as of March 31, 2016 and 2015, respectively. Stock-based compensation The Company follows recognized accounting guidance which requires all stock-based payments, including grants of stock options, to be recognized in the statement of operations as compensation expense, based on their fair values on the grant date. The estimated fair value of stock options granted under the Company’s 2007 Employee Stock Option Plan (the “2007 Plan”) and the 2014 Omnibus Incentive Compensation Plan (the “2014 Plan”) is recognized as compensation expense over the option-vesting period. During the three months ended March 31, 2016 and 2015, the Company granted stock options to purchase 85,984 and 230,000 shares of common stock, respectively, to its directors and employees.

3. DEBT

3. DEBT	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
3. Debt	Loan and Security Agreement On June 19, 2015, the Company entered into the LSA with Oxford for up to $21.0 million and refinanced its existing loan with Hercules. The first tranche of $16.0 million from the Oxford loan was primarily used to repay its previous facility with Hercules and the remaining $5.0 million is available at ADMA’s option upon RI-002’s BLA being approved from the FDA on or before January 31, 2017, which funding would also extend its interest only period for an additional six months pursuant to the May 2016 amendment to the LSA. The LSA bears interest at a rate per annum equal to the greater of (i) 7.80% and (ii) the sum of (a) the three (3) month U.S. LIBOR rate (as reported in The Wall Street Journal In connection with the LSA, on June 19, 2015, the Company issued to Oxford a seven year warrant, expiring on June 19, 2022, to purchase 74,309 shares of common stock at an exercise price of $8.51 per share. The Company recorded $367,700 as the fair value of the warrant to additional paid-in capital and as a debt discount to the carrying value of the loan. The key assumptions used to value the warrants included: volatility of 57% on the Company’s common stock based upon a pro rata percentage of the Company’s common stock’s volatility and similar public companies’ volatilities for comparison, an expected dividend yield of 0.0%, a risk-free interest rate of 1.99% and a term of 7 years. As a result of prepaying the Hercules loan prior to maturity, the Company incurred a loss on extinguishment of debt of $0.7 million comprised of unamortized debt issuance costs, unamortized debt discount related to the warrants issued to Hercules, along with a prepayment penalty. In May 2016, the Company amended its LSA with Oxford. This amendment provided ADMA with an additional $4.0 million term loan, the availability of which was predicated on completing an equity financing of its common stock of at least $10.0 million in gross proceeds no later than May 31, 2016. In May 2016, the Company completed an underwritten public offering of its common stock, raising gross proceeds of approximately $14.1 million, (see Note 8 for additional details on the equity financing and loan amendment) and subsequently borrowed an additional $4.0 million from Oxford under the amended LSA, which brings the total principal borrowed to $20.0 million. A summary of the Oxford loan balance as of March 31, 2016 is as follows: Gross proceeds $ 16,000,000 Less: debt discount, net End of term fee (1,161,544 ) Warrants (282,486 ) Financing fees (175,211 ) Note payable $ 14,380,759

4. STOCKHOLDERS' EQUITY

4. STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
4. STOCKHOLDERS' EQUITY	On March 18, 2015, the Company announced the closing of an underwritten sale of 1,225,000 shares of its common stock, as well as 183,750 additional shares of its common stock pursuant to the full exercise of the over-allotment option granted to the underwriters thereof, for gross proceeds of approximately $11.3 million. Net proceeds from this offering were approximately $10.2 million, net of underwriting discounts and offering expenses of approximately $1.1 million. The shares were sold under a shelf registration statement on Form S-3 (File No. 333-200638) that was declared effective by the SEC on December 23, 2014. In May 2016, the Company completed an underwritten public offering of its common stock, raising gross proceeds of approximately $14.1 million, (see Note 8 for additional details on the equity financing). Equity incentive plan The fair value of employee options granted was determined on the date of grant using the Black-Scholes option valuation model. The Black-Scholes model was developed for use in estimating the fair value of publicly traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. The Company's employee stock options have characteristics significantly different from those of traded options, and changes in the subjective input assumptions can materially affect the fair value estimate. Because there has been minimal data for the Company's stock and very little historical experience with the Company's stock options, similar public companies and a pro rata percentage of the Company’s common stock were used for calculating ADMA’s volatility for comparison and expectations as to the assumptions required for fair value computation using the Black-Scholes methodology. Three Months Ended Three Months Ended March 31, 2016 March 31, 2015 Expected term 5.8 - 6.3 years 6.3 years Volatility 52% 56-57% Dividend yield 0.0 0.0 Risk-free interest rate 1.75-1.79% 1.49-1.90% Guidance for stock-based compensation requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company has not experienced any material forfeitures of stock options and, as such, has not established a forfeiture rate since the stock options currently outstanding are primarily held by its senior management and directors. The Company will continue to evaluate the effects of such future potential forfeitures, as they may arise, to evaluate its estimated forfeiture rate. The weighted average remaining contractual life of stock options outstanding and expected to vest at March 31, 2016 is 7.1 years. The weighted average remaining contractual life of stock options exercisable at March 31, 2016 is 6.1 years. A summary of the Company’s option activity under the 2007 Plan and 2014 Plan and related information is as follows: Three Months Ended March 31, 2016 Weighted Average Exercise Shares Price Outstanding at beginning of period 1,464,203 $ 8.02 Forfeited (2,584 ) $ 8.25 Granted 85,984 $ 5.97 Outstanding at end of period and expected to vest 1,547,603 $ 7.91 Options exercisable 994,085 $ 7.40 Stock-based compensation expense for the three months ended March 31, 2016 and 2015 is as follows: Three Months Ended March 31, 2016 2015 Research and development $ 156,556 $ 164,068 Plasma centers 13,010 11,033 General and administrative 252,614 211,968 Total stock-based compensation expense $ 422,180 $ 387,069 As of March 31, 2016, the total compensation expense related to unvested options not yet recognized totaled $2,469,668. The weighted average vesting period over which the total compensation expense will be recorded related to unvested options not yet recognized at March 31, 2016 was approximately 2.7 years.

5. RELATED PARTY TRANSACTIONS

5. RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
5. RELATED PARTY TRANSACTIONS	The Company leases an office building and equipment from an entity owned by related parties on a month-to-month basis. Rent expense amounted to $24,112 for the three months ended March 31, 2016 and 2015, respectively. The Company also reimburses its landlord for office related expenses, equipment and certain other operational expenses, which have been insignificant to the consolidated financial statements for the three months ended March 31, 2016 and 2015. The Company maintains deposits and other accounts at a bank which was less than 5%-owned by related parties through January 2016, and where a stockholder and Company director was a member of the bank’s board of directors through January 2016, and is now a member of its Corporate Advisory Council.

6. COMMITMENT AND CONTINGENCIES

6. COMMITMENT AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
6. COMMITMENT AND CONTINGENCIES	General Legal Matters The Company is and may become subject to certain legal proceedings and claims arising in connection with the normal course of its business. In the opinion of management, there are currently no claims that would have a material adverse effect on its consolidated financial position, results of operations or cash flows.

7. SEGMENTS

7. SEGMENTS	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
7. SEGMENTS	The Company is engaged in the development and commercialization of human plasma and plasma-derived therapeutics. The Company also operates two FDA-licensed source plasma collection facilities located in Georgia through ADMA BioCenters. The Company defines its segments as those business units whose operating results are regularly reviewed by the chief operating decision maker (“CODM”) to analyze performance and allocate resources. The Company’s CODM, is its President and Chief Executive Officer. The plasma collection center segment includes the Company’s operations in Georgia. The research and development segment includes the Company’s plasma development operations in New Jersey. Summarized financial information concerning reportable segments is shown in the following tables: Three Months Ended Plasma Collection Research and March 31, 2016 Centers Development Corporate Consolidated Revenues $ 2,088,178 $ - $ 35,708 $ 2,123,886 Cost of product revenue 1,266,421 - - 1,266,421 Gross profit 821,757 - 35,708 857,465 Loss from operations (458,662 ) (2,027,712 ) (1,672,162 ) (4,158,536 ) Other expense - - (453,933 ) (453,933 ) Loss before income taxes (458,662 ) (2,027,712 ) (2,126,095 ) (4,612,469 ) Total assets 2,595,429 - 17,089,491 19,684,920 Depreciation and amortization expense 105,189 - 13,204 118,393 Three Months Ended Plasma Collection Research and March 31, 2015 Center Development Corporate Consolidated Revenues $ 1,484,217 $ - $ 18,889 $ 1,503,106 Cost of product revenue 909,629 - - 909,629 Gross profit 574,588 - 18,889 593,477 Loss from operations (473,506 ) (1,401,723 ) (1,327,108 ) (3,202,337 ) Other expense - - (403,198 ) (403,198 ) Net loss (473,506 ) (1,401,723 ) (1,730,306 ) (3,605,535 ) Total assets 3,008,050 - 30,919,630 33,927,680 Depreciation and amortization expense 104,917 - 12,205 117,122 The “Corporate” column includes general and administrative overhead expenses. Property and equipment, net, included in the “Corporate” column above includes assets related to corporate and support functions.

8. SUBSEQUENT EVENTS

8. SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
8. SUBSEQUENT EVENTS	In May 2016, the Company completed an underwritten public offering of 2,176,154 shares of its common stock, for gross proceeds of approximately $14.1 million. Net proceeds from this offering were approximately $13.0 million, after payment of underwriting discounts and offering expenses of approximately $1.1 million. The shares were sold under a shelf registration statement on Form S-3 (File No. 333-200638) that was declared effective by the SEC on December 23, 2014. Additionally, in May 2016, the Company amended its LSA with Oxford. This amdendment provided ADMA with an additional term loan of $4.0 million, the availability of which was predicated on the Company completing an equity raise of at least $10.0 million in gross proceeds by May 31, 2016. The Company subsequently borrowed the additional $4.0 million from Oxford under the amended LSA, and in connection therewith, the Company issued warrants to purchase an aggregate of up to 24,800 shares of the Company’s Common Stock at an exercise price equal to $6.37, which will expire seven years after their issuance on May 13, 2023 and incurred a facility fee of $20,000 as part of accessing the additional funding.

2. SUMMARY OF SIGNIFICANT ACC15

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of presentation and principles of consolidation	The accompanying condensed consolidated financial statements include the accounts of ADMA and its wholly-owned subsidiaries, ADMA Plasma Biologics, Inc. and ADMA BioCenters. All significant intercompany transactions and balances have been eliminated in consolidation. The condensed consolidated financial statements for the interim periods included herein are unaudited; however, they contain all adjustments (consisting of only normal recurring adjustments) which in the opinion of management are necessary to present fairly the condensed consolidated financial position of the Company as of March 31, 2016 and its results of operations for the three months ended March 31, 2016 and 2015 and cash flows for the three months ended March 31, 2016 and 2015. The results of operations for the interim periods are not necessarily indicative of results that may be expected for any other interim periods or for the full year. These interim financial statements should be read in conjunction with the audited annual consolidated financial statements and notes thereto included in the Company’s Annual Report for the year ended December 31, 2015 on Form 10-K, filed with the U.S. Securities and Exchange Commission, (the “SEC”) on March 23, 2016. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, (“GAAP”), in accordance with the rules and regulations of the SEC for interim reporting. Pursuant to such rules and regulations, certain information and footnote disclosures normally included in complete annual financial statements have been condensed or omitted.
Inventories	Plasma inventories (both plasma intended for resale and plasma intended for internal use in the Company's research and development and future anticipated commercialization activities) are carried at the lower of cost or market value determined on the first-in, first-out method. Research and development plasma used in clinical trials was processed to a finished product and subsequently expensed to research and development. Inventory at March 31, 2016 and December 31, 2015 consists of high titer plasma and normal source plasma.
Debt	In April 2015, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2015-03, Interest—Imputation of Interest
Revenue recognition	Depending on the agreement with the customer, revenues from the sale of human plasma collected at the Company’s FDA licensed plasma collection centers are recognized at the time of transfer of title and risk of loss to the customer, which occurs at the time of shipment. Revenue is recognized at the time of delivery if the Company retains the risk of loss during shipment. The Company’s revenues are substantially attributable to one customer. Revenue from license fees and research and development services rendered are recognized as revenue when the performance obligations under the terms of the license agreement have been completed. Revenues for the three months ended March 31, 2016 are comprised of product revenues from the sale of normal source human plasma collected from the Company’s plasma collection centers segment and license and other revenues are primarily attributable to the out-licensing of RI-002 to Biotest AG to market and sell in Europe and selected countries in North Africa and the Middle East. Biotest AG and Biotest Pharmaceuticals Corporation, or Biotest, a subsidiary of Biotest AG, has provided the Company with certain financial payment and services in accordance with the related license agreement and is obligated to pay the Company certain amounts in the future if certain milestones are achieved. During the third quarter 2015, the Company recorded deferred revenue of $1.5 million for a milestone payment provided to the Company upon its filing of the BLA for RI-002 with the FDA, in accordance with the terms of the license agreement. Deferred revenue of $1.7 million was recorded in 2013 as a result of certain research and development services provided in accordance with the same license agreement. Deferred revenue is recognized over the term of the license. Deferred revenue is amortized into income for a period of approximately 20 years, the term of the license agreement.
Use of estimates	The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include valuation of inventory, assumptions used in the fair value determination of stock-based compensation, warrants and the allowance for the valuation of future tax benefits.
Loss per common share	Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is calculated by dividing net loss attributable to common stockholders as adjusted for the effect of dilutive securities, if any, by the weighted average number of common stock and dilutive common stock outstanding during the period. Potential common stock includes the shares of common stock issuable upon the exercise of outstanding stock options and warrants (using the treasury stock method). Potential common stock in the diluted net loss per share computation is excluded to the extent that it would be anti-dilutive. No potentially dilutive securities are included in the computation of any diluted per share amounts as the Company reported a net loss for all periods presented. The aggregate number of potentially dilutive securities upon the exercise of outstanding warrants and stock options was 1.8 million and 1.5 million as of March 31, 2016 and 2015, respectively.
Stock-based compensation	The Company follows recognized accounting guidance which requires all stock-based payments, including grants of stock options, to be recognized in the statement of operations as compensation expense, based on their fair values on the grant date. The estimated fair value of stock options granted under the Company’s 2007 Employee Stock Option Plan (the “2007 Plan”) and the 2014 Omnibus Incentive Compensation Plan (the “2014 Plan”) is recognized as compensation expense over the option-vesting period. During the three months ended March 31, 2016 and 2015, the Company granted stock options to purchase 85,984 and 230,000 shares of common stock, respectively, to its directors and employees.

3. DEBT (Tables)

3. DEBT (Tables)	3 Months Ended
	Mar. 31, 2016
Oxford Loan
Summary of loans	Gross proceeds $ 16,000,000 Less: debt discount, net End of term fee (1,161,544 ) Warrants (282,486 ) Financing fees (175,211 ) Note payable $ 14,380,759

4. STOCKHOLDERS' EQUITY (Tables

4. STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Schedule of assumptions used for equity compensation expense	Three Months Ended Three Months Ended March 31, 2016 March 31, 2015 Expected term 5.8 - 6.3 years 6.3 years Volatility 52% 56-57% Dividend yield 0.0 0.0 Risk-free interest rate 1.75-1.79% 1.49-1.90%
Schedule of stock options outstanding	Three Months Ended March 31, 2016 Weighted Average Exercise Shares Price Outstanding at beginning of period 1,464,203 $ 8.02 Forfeited (2,584 ) $ 8.25 Granted 85,984 $ 5.97 Outstanding at end of period and expected to vest 1,547,603 $ 7.91 Options exercisable 994,085 $ 7.40
Stock-based compensation expense	Three Months Ended March 31, 2016 2015 Research and development $ 156,556 $ 164,068 Plasma centers 13,010 11,033 General and administrative 252,614 211,968 Total stock-based compensation expense $ 422,180 $ 387,069

7. SEGMENTS (Tables)

7. SEGMENTS (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
SEGMENTS	Three Months Ended Plasma Collection Research and March 31, 2016 Centers Development Corporate Consolidated Revenues $ 2,088,178 $ - $ 35,708 $ 2,123,886 Cost of product revenue 1,266,421 - - 1,266,421 Gross profit 821,757 - 35,708 857,465 Loss from operations (458,662 ) (2,027,712 ) (1,672,162 ) (4,158,536 ) Other expense - - (453,933 ) (453,933 ) Loss before income taxes (458,662 ) (2,027,712 ) (2,126,095 ) (4,612,469 ) Total assets 2,595,429 - 17,089,491 19,684,920 Depreciation and amortization expense 105,189 - 13,204 118,393 Three Months Ended Plasma Collection Research and March 31, 2015 Center Development Corporate Consolidated Revenues $ 1,484,217 $ - $ 18,889 $ 1,503,106 Cost of product revenue 909,629 - - 909,629 Gross profit 574,588 - 18,889 593,477 Loss from operations (473,506 ) (1,401,723 ) (1,327,108 ) (3,202,337 ) Other expense - - (403,198 ) (403,198 ) Net loss (473,506 ) (1,401,723 ) (1,730,306 ) (3,605,535 ) Total assets 3,008,050 - 30,919,630 33,927,680 Depreciation and amortization expense 104,917 - 12,205 117,122

1. ORGANIZATION AND BUSINESS (D

1. ORGANIZATION AND BUSINESS (Details Narrative) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Cash and cash equivalents	$ 8,925,132	$ 10,440,959
Short-term investments	2,694,978	6,368,177
Accounts Receivable	$ 943,950	$ 924,468

2. SUMMARY OF SIGNIFICANT ACC20

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Summary Of Significant Accounting Policies Details Narrative
Options issued to employees and directors	85,984	230,000

3. DEBT (Details)

3. DEBT (Details) - Oxford Loan	3 Months Ended
	Mar. 31, 2016USD ($)
Gross proceeds	$ 16,000,000
Less: debt discount, net
End of term fee	(1,161,544)
Warrants	(282,486)
Financing fees	(175,211)
Note payable	$ 14,380,759

4. STOCKHOLDERS' EQUITY (Detail

4. STOCKHOLDERS' EQUITY (Details)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Compensation expense associated with stock options and other forms of equity compensation assumptions
Expected Term		6 years 3 months 18 days
Expected Term, minimum	5 years 9 months 18 days
Expected Term, maximum	6 years 3 months 18 days
Volatility	52.00%
Volatility, minimum		56.00%
Volatility, maximum		57.00%
Dividend yield	0.00%	0.00%
Risk-free interest rate, minimum	1.75%	1.49%
Risk-free interest rate, maximum	1.79%	1.90%

4. STOCKHOLDERS' EQUITY (Deta23

4. STOCKHOLDERS' EQUITY (Details 1)	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Shares
Outstanding at beginning of period | shares	1,464,203
Forfeited | shares	(2,584)
Granted | shares	85,984
Outstanding at end of period and expected to vest | shares	1,547,603
Options exercisable | shares	994,085
Weighted Average Exercise Price
Outstanding at beginning of period | $ / shares	$ 8.02
Forfeited | $ / shares	8.25
Granted | $ / shares	5.97
Outstanding at end of period and expected to vest | $ / shares	7.91
Options exercisable | $ / shares	$ 7.40

4. STOCKHOLDERS' EQUITY (Deta24

4. STOCKHOLDERS' EQUITY (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stock-based compensation expense
Total stock-based compensation expense	$ 422,180	$ 387,069
Research and development
Stock-based compensation expense
Total stock-based compensation expense	156,556	164,068
Plasma centers
Stock-based compensation expense
Total stock-based compensation expense	13,010	11,033
General and administrative
Stock-based compensation expense
Total stock-based compensation expense	$ 252,614	$ 211,968

5. RELATED PARTY TRANSACTIONS (

5. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Related Party Transactions [Abstract]
Rent expense	$ 24,112	$ 24,112

7. SEGMENTS (Details)

7. SEGMENTS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Summarized financial information concerning reportable segments
Revenues	$ 2,123,886	$ 1,503,106
Cost of product revenue	1,266,421	909,629
Gross profit	857,465	593,477
Loss from operations	(4,158,536)	(3,202,337)
Other expense	(453,933)	(403,198)
Net loss	(4,612,469)	(3,605,535)
Total assets	19,684,920	33,927,680
Depreciation and amortization expense	118,393	117,122
Plasma Collection Center Member
Summarized financial information concerning reportable segments
Revenues	2,088,178	1,484,217
Cost of product revenue	1,266,421	909,629
Gross profit	821,757	574,588
Loss from operations	(458,662)	(473,506)
Other expense	0	0
Net loss	(458,662)	(473,506)
Total assets	2,595,429	3,008,050
Depreciation and amortization expense	105,189	104,917
Research And Development Member
Summarized financial information concerning reportable segments
Revenues	0	0
Cost of product revenue	0	0
Gross profit	0	0
Loss from operations	(2,027,712)	(1,401,723)
Other expense	0	0
Net loss	(2,027,712)	(1,401,723)
Total assets	0	0
Depreciation and amortization expense	0	0
Corporate Member
Summarized financial information concerning reportable segments
Revenues	35,708	18,889
Cost of product revenue	0	0
Gross profit	35,708	18,889
Loss from operations	(1,672,162)	(1,327,108)
Other expense	(453,933)	(403,198)
Net loss	(2,126,095)	(1,730,306)
Total assets	17,089,491	30,919,630
Depreciation and amortization expense	$ 13,204	$ 12,205