Qualigen Therapeutics (QLGN) 10-K 27 Feb 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Feb. 22, 2017	Jun. 30, 2016
Document And Entity Information
Entity Registrant Name	RITTER PHARMACEUTICALS INC
Entity Central Index Key	1,460,702
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 8,100,000
Entity Common Stock, Shares Outstanding		11,619,197
Trading Symbol	RTTR
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

Balance Sheets

Balance Sheets - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 7,046,282	$ 15,819,566
Prepaid expenses	156,752	189,136
Total current assets	7,203,034	16,008,702
Other assets	10,326	10,326
Property and equipment, net	23,542	20,688
Total Assets	7,236,902	16,039,716
Current liabilities
Accounts payable	1,896,368	739,357
Accrued expenses	1,222,735	614,141
Other liabilities	14,736	1,223
Total current liabilities	3,133,839	1,354,721
Stockholders' equity (deficit)
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding
Common stock, $0.001 par value; 25,000,000 shares authorized; 11,619,197 and 8,582,004 shares issued and outstanding as of December 31, 2016 and December 31, 2015, respectively	11,619	8,582
Additional paid-in capital	49,559,020	41,759,355
Accumulated deficit	(45,467,576)	(27,082,942)
Total stockholders' equity (deficit)	4,103,063	14,684,995
Total Liabilities and Stockholders' Equity (Deficit)	$ 7,236,902	$ 16,039,716

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	11,619,197	8,582,004
Common stock, shares outstanding	11,619,197	8,582,004

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Operating costs and expenses
Research and development	$ 13,292,488	$ 2,260,297
Patent costs	272,514	243,463
General and administrative	4,881,725	6,404,643
Total operating costs and expenses	18,446,727	8,908,403
Operating loss	(18,446,727)	(8,908,403)
Other income
Interest income	60,879	40,876
Other income	1,214	79,756
Other income	62,093	120,632
Net loss	(18,384,634)	(8,787,771)
Cumulative preferred stock dividends		(327,569)
Accretion of discount of Series C preferred stock		(63,283)
Net loss attributable to common stockholders	$ (18,384,634)	$ (9,178,623)
Net loss attributable to common stockholders per share, basic and diluted	$ (2.04)	$ (3.11)
Weighted average shares outstanding, basic and diluted	8,993,317	2,946,792

Statements of Changes in Securi

Statements of Changes in Securities Subject to Redemption and Stockholders' Equity (Deficit) - USD ($)	Preferred Stock Subject to Redemption [Member]	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2014	$ 16,203,612	$ 8,888	$ 465	$ 3,399,924	$ (17,904,319)	$ (14,495,042)
Balance, shares at Dec. 31, 2014	13,399,668	8,887,500	465,384
Exercise of prepaid forward sale of Series B preferred stock
Exercise of prepaid forward sale of Series B preferred stock, shares	1,469,994
Cumulative dividends on Series B preferred stock	$ 327,569				(327,569)	(327,569)
Accretion of discount on Series C preferred stock	63,283				(63,283)	(63,283)
Conversion of all outstanding preferred stock to common stock		$ (8,888)	$ 1,243	7,645
Conversion of all outstanding preferred stock to common stock, shares		(8,887,500)	1,243,002
Conversion of all outstanding preferred stock subject to redemption to common stock	$ (16,594,464)		$ 2,080	16,592,384		16,594,464
Conversion of all outstanding preferred stock subject to redemption to common stock, shares	(14,869,662)		2,079,650
Common stock subject to repurchase				(180)		(180)
Issuance of common stock upon closing of initial public offering			$ 4,000	19,996,000		20,000,000
Issuance of common stock upon closing of initial public offering, shares			4,000,000
Commissions and offering costs of initial public offering				(2,551,390)		(2,551,390)
Issuance of common stock under common stock purchase agreement			$ 500	999,500		1,000,000
Issuance of common stock under common stock purchase agreement, shares			500,000
Issuance of common stock for commitment fee			$ 189	(189)
Issuance of common stock for commitment fee, shares			188,864
Issuance of common stock to supplier			$ 100	415,900		416,000
Issuance of common stock to supplier, shares			100,000
Exercise of options on common stock			$ 5	5,252		5,257
Exercise of options on common stock, shares			5,104
Stock-based compensation				2,894,509		2,894,509
Net loss					(8,787,771)	(8,787,771)
Balance at Dec. 31, 2015			$ 8,582	41,759,355	(27,082,942)	14,684,995
Balance, shares at Dec. 31, 2015			8,582,004
Issuance of common stock under common stock purchase agreement			$ 889	2,025,173		2,026,062
Issuance of common stock under common stock purchase agreement, shares			888,835
Exercise of options on common stock			$ 21	15,532		15,553
Exercise of options on common stock, shares			20,698
Stock-based compensation				1,359,205		1,359,205
Issuance of common stock upon closing of follow-on public offering			$ 2,127	4,997,873		5,000,000
Issuance of common stock upon closing of follow-on public offering, shares			2,127,660
Commissions and offering costs of follow-on public offering				(598,118)		(598,118)
Net loss					(18,384,634)	(18,384,634)
Balance at Dec. 31, 2016			$ 11,619	$ 49,559,020	$ (45,467,576)	$ 4,103,063
Balance, shares at Dec. 31, 2016			11,619,197

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities
Net loss	$ (18,384,634)	$ (8,787,771)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	5,209	1,939
Stock-based compensation	1,359,205	2,894,509
Gain on disposal of equipment		(456)
Issuance of shares of common stock to supplier		416,000
Changes in operating assets and liabilities:
Prepaid expenses	32,384	(132,021)
Accounts payable	1,157,011	(344,240)
Accrued expenses	608,594	231,950
Other liabilities	13,513	(1,475)
Net cash used in operating activities	(15,208,718)	(5,721,565)
Cash flows from investing activities
Purchases of property and equipment	(8,063)	(16,999)
Net cash used in investing activities	(8,063)	(16,999)
Cash flows from financing activities
Proceeds from issuance of shares upon closing of follow-on offering	5,000,000
Discounts and issuance costs of follow-on offering	(598,118)
Proceeds from the issuance of shares from common stock purchase agreement	2,026,062	1,000,000
Proceeds from exercise of options on common stock	15,553	5,257
Proceeds from issuance of shares upon closing of initial public offering		20,000,000
Commissions and issuance costs of initial public offering		(2,194,375)
Net cash provided by financing activities	6,443,497	18,810,882
Net (decrease) increase in cash and cash equivalents	(8,773,284)	13,072,318
Cash and cash equivalents at beginning of year	15,819,566	2,747,248
Cash and cash equivalents at end of year	7,046,282	15,819,566
Supplemental disclosure of cash flow information
Cash paid for interest
Cash paid for taxes	80,702
Supplemental disclosure of noncash financing activities
Accrual of commissions and issuance costs of the initial public offering		213,561
Deferred offering costs reclassified to additional paid-in capital		665,603
Conversion of all outstanding preferred stock into common stock		8,888
Conversion of all outstanding preferred stock subject to redemption into common stock		16,594,464
Common stock subject to repurchase		180
Cumulative preferred stock dividends		327,569
Accretion of discount on Series C preferred stock		63,283
Common stock issued as commitment fee for stock purchase agreement		$ 400,392

Organization and Principal Acti

Organization and Principal Activities	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Principal Activities	NOTE 1 — ORGANIZATION AND PRINCIPAL ACTIVITIES Ritter Pharmaceuticals, Inc. (“Ritter” or the “Company”) is a Delaware corporation headquartered in Los Angeles, California. The Company was formed as a Nevada limited liability company on March 29, 2004 under the name Ritter Natural Sciences, LLC, and converted into a Delaware corporation on September 16, 2008. Ritter Pharmaceuticals, Inc. develops therapeutic products that modulate the human gut microbiome to treat gastrointestinal diseases. The Company conducts human gut health research by exploring metabolic capacity of the gut microbiota and translating the functionality of prebiotic-based therapeutics. The Company’s lead compound, RP-G28 is currently under development for the treatment of lactose intolerance. There currently is no drug approved by the Food and Drug Administration (“FDA”) for the treatment of lactose intolerance, a debilitating disease that affects over 1 billion people worldwide. The Company currently operates in one business segment focusing on the development and commercialization of RP-G28. The Company is not organized by market and is managed and operated as one business. A single management team reports to the chief operating decision maker, the Chief Executive Officer. The Company does not currently operate any separate lines of business or separate business entities. Initial Public Offering On June 24, 2015, the Company’s registration statement on Form S-1 (File No. 333-202924) relating to its initial public offering of its common stock was declared effective by the Securities and Exchange Commission (“SEC”). The shares began trading on the NASDAQ Capital Market on June 24, 2015. The initial public offering closed on June 29, 2015, and 4,000,000 shares of common stock were sold at an initial public offering price of $5.00 per share. The Company paid to the underwriters underwriting discounts and commissions of approximately $1.6 million in connection with the offering. In addition, the Company incurred expenses of approximately $1 million in connection with the offering. Thus, the net offering proceeds to the Company, after deducting underwriting discounts and commissions and offering expenses, were approximately $17.4 million. Capitalization In connection with the Company’s initial public offering in June 2015, the Company effected a 1–for-7.15 reverse split of its common stock. All references to shares of common stock outstanding, average number of shares outstanding and per share amounts in these financial statements and notes to financial statements have been adjusted to reflect the reverse split on a retroactive basis.

Basis of Presentation

Basis of Presentation	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	NOTE 2 — BASIS OF PRESENTATION The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include all adjustments necessary for the fair presentation of the Company’s financial position for the periods presented. Going Concern and Liquidity The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company has not generated any product revenue and has not achieved profitable operations. The Company had net losses of approximately $18.4 million and $8.8 million for the years ended December 31, 2016 and 2015, respectively, and had net cash used in operating activities of approximately $15.2 million and $5.7 million, for the years ended December 31, 2016 and 2015, respectively. There is no assurance that profitable operations will ever be achieved, and, if achieved, could be sustained on a continuing basis. In addition, development activities, clinical and pre-clinical testing, and commercialization of the Company’s products will require significant financing. These matters, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 3 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of 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 and such differences may be material to the financial statements. The more significant estimates and assumptions by management include among others; the valuation allowance of deferred tax assets resulting from net operating losses and the valuation of options on the Company’s common stock. Cash and Cash Equivalents Cash consists of amounts held in a financial institution and consists of immediately available fund balances. The funds were maintained at a stable financial institution, generally at amounts in excess of federally insured limits, which represents a concentration of credit risk. The Company has not experienced any losses on deposits of cash and cash equivalents to date. Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method (see Note 4). Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to income. Maintenance and repairs are charged to expense as incurred while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Impairment of Long-Lived Assets The Company periodically assesses the impairment of long lived assets in accordance with Accounting Standards Codification (“ASC”) Topic 360, Property Plant and Equipment. Clinical Trial and Pre-Clinical Study Accruals The Company makes estimates of accrued expenses as of each balance sheet date in its financial statements based on the facts and circumstances known to it at that time. Accrued expenses for pre-clinical studies and clinical trials are based on estimates of costs incurred and fees that may be associated with services provided by contract research organizations, clinical trial investigational sites, and other related vendors. Payments under certain contracts with such parties depend on factors such as successful enrollment of patients, site initiation and the completion of milestones. In accruing service fees, management estimates the time period over which services will be performed and the level of effort to be expended in each period. If possible, the Company obtains information regarding unbilled services directly from these service providers. However, the Company may be required to estimate these services based on other information available to it. If the Company underestimates or overestimates the activity or fees associated with a study or service at a given point in time, adjustments to research and development expenses may be necessary in future periods. Historically, estimated accrued liabilities have approximated actual expense incurred. Subsequent changes in estimates may result in a material change in the Company’s accruals. Research and Development The Company expenses the cost of research and development as incurred. Research and development expenses comprise costs incurred in performing research and development activities, including clinical trial costs, manufacturing costs for both clinical and pre-clinical materials as well as other contracted services, license fees, and other external costs. Nonrefundable advance payments for goods and services that will be used in future research and development activities are expensed when the activity is performed or when the goods have been received, rather than when payment is made, in accordance with ASC Topic 730, Research and Development Patent Costs The Company has no historical data to support a probable future economic benefit for the arising patent applications, filing and prosecution costs. Therefore, patent costs are expensed as incurred. Should the Company experience a legal cost to defend a patent in the future, that cost would be capitalized only when it is part of the cost of retaining and obtaining the future economic benefit of the patent. Costs related to an unsuccessful outcome would be expensed. Stock-based Compensation Stock-based compensation cost for stock awards issued to employees, members of the Company’s board of directors and non-employees, is measured at the grant date based on the fair value of the award and is recognized as expense over the required service period, which is generally equal to the vesting period. Stock-based compensation is recognized only for those awards that are ultimately expected to vest. Common stock, stock options or warrants issued to non-employees, including consultants and members of the Company’s Scientific Advisory Board as consideration for goods or services received by the Company, are accounted for based on the fair value of the equity instruments issued unless the fair value consideration received can be more reliably measured. The fair value of stock options is determined using the Black-Scholes option-pricing model. The fair value of any options issued to non-employees is recorded as expense over the vesting period. See Note 8 for further information. Fair Value Measurements The Company follows authoritative accounting guidance, which among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. As of December 31, 2016 and 2015, the carrying amounts of cash and cash equivalents, prepaid expenses, accounts payable and accrued expenses are generally considered to be representative of their fair value because of the short term nature of these instruments. No transfers between levels have occurred during the periods presented. Accounting for Income Taxes Deferred tax assets and liabilities are recognized for the expected future consequences of events that have been reflected in the financial statements. Deferred tax assets and liabilities are determined based on the differences between the book and tax basis of assets and liabilities and operating loss carryforwards, using tax rates expected to be in effect for the years in which the differences are expected to reverse. Such differences arise primarily from stock-based compensation and net operating loss carryforwards. The Company records a valuation allowance to reduce deferred income tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. Prior to September 15, 2008, the Company was a limited liability company and the Company’s tax losses and credits generally flowed directly to the members. Net Loss Per Share Basic net loss per share is calculated by dividing net loss by the weighted-average common shares outstanding during the period. Diluted net loss per share is calculated by dividing net loss by the weighted-average common shares outstanding during the period using the treasury stock method or the two-class method, whichever is more dilutive. The potentially dilutive stock options issued under the 2015 Equity Incentive Plan (described in Note 8) and warrants on the Company’s common stock (described in Note 7) are not considered in the computation of diluted net loss per share because they would be anti-dilutive. All common share amounts and per share amounts have been adjusted to reflect a 1-for-7.15 reverse stock split of the Company’s common stock effected in June 2015. Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. The Company is required to record all components of comprehensive loss in the financial statements in the period in which they are recognized. Net income (loss) and other comprehensive loss, including foreign currency translation adjustments and unrealized gains and losses on investments are reported, net of their related tax effect, to arrive at a comprehensive loss. For the years ended December 31, 2016 and 2015, comprehensive loss was equal to the net loss. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-02, Leases (Topic 842) i.e., Leases On March 30, 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting On August 26, 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230), Other accounting standards updates effective after December 31, 2016 are not expected to have a material effect on the Company’s financial statements.

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	NOTE 4 — PROPERTY AND EQUIPMENT Property and equipment consists of the following: Useful Life (Years) December 31, 2016 December 31, 2015 Furniture and fixtures 7 $ 23,325 $ 15,840 Computer equipment 5 10,274 9,696 33,599 25,536 Less: Accumulated depreciation and amortization (10,057 ) (4,848 ) Property and equipment, net $ 23,542 $ 20,688 Depreciation expense of approximately $5,200 and $1,900 was recognized for the years ended December 31, 2016 and 2015, respectively, and is classified in general and administrative expense in the accompanying Statements of Operations.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 5 — COMMITMENTS AND CONTINGENCIES Master Services Agreement On December 30, 2015, the Company entered into a Master Service Agreement with an effective date of December 29, 2015. Pursuant to the terms of the Master Service Agreement, Covance, Inc., or one or more of its affiliates, (“Covance”) will provide Phase 1, 2, 3, and 4 clinical services for a clinical study or studies to the Company, and, at the request of the Company, assist with the design of such studies, in accordance with the terms of separate individual project agreements to be entered into by the parties. The term of the agreement is for three years and will renew automatically for successive one year periods unless Covance is no longer providing services under the agreement or either party has terminated the agreement upon written notice. The Company may terminate the Master Service Agreement or any individual project agreement entered into under the Master Service Agreement prior to the applicable study’s completion at any time for any reason upon 30 days written notice to Covance, except when the reason for termination is the safety of subjects, in which case it may be terminated immediately. Covance may not terminate any individual project agreement without cause, except when the reason for the termination is the safety of subjects, in which case it may be terminated immediately. In the event of a termination of the Master Service Agreement, Covance will be entitled to full payment for (i) work performed on the applicable project upon through the date work on such project is concluded and (ii) reimbursement for all non-cancellable and non-refundable expenses and financial obligations which Covance (or an affiliate) has incurred or undertaken on our behalf. Clinical Supply and Cooperation Agreement with Ricerche Sperimentali Montale (“Ricerche”) and Inalco SpA (“Inalco”) Effective July 24, 2015, the Company entered into an amended Clinical Supply and Cooperation Agreement (the “Amended Supply Agreement”) with Ricerche and Inalco (collectively, “RSM”). The Amended Supply Agreement amends certain terms of the Clinical Supply and Cooperation Agreement, dated December 16, 2009, amended on September 25, 2010 (the “Existing Supply Agreement”). Pursuant to the terms of the Amended Supply Agreement, the Company purchased the exclusive worldwide assignment of all right, title and interest to a purified GOS product (“Improved GOS”), the composition of matter of the Improved GOS and any information relating to the Improved GOS, including certain specified technical information and other intellectual property rights (the “Improved GOS IP”) on July 30, 2015 for $800,000. The Company also issued 100,000 shares of its common stock to RSM pursuant to a stock purchase agreement. The shares issued to RSM are subject to a lock-up agreement, pursuant to which RSM has agreed that it will not sell these shares for a period ending of the earlier of (i) the public release by the Company of the final results of its Phase 2b/3 clinical trial of RP-G28 and (ii) the filing of a Form 10-Q with the SEC for the fiscal quarter in which the Company receives the results of its Phase 2b/3 clinical trial of RP-G28. Under the terms of the Amended Supply Agreement, if the Company fails to make any future option payment to RSM as required under the terms of the Amended Supply Agreement, the Company may be required to return the Improved GOS IP to RSM. The Amended Supply Agreement also provides that the Company must pay RSM $400,000 within 10 days following FDA approval of a new drug application for the first product owned or controlled by us using Improved GOS as its active pharmaceutical ingredient and to pay RSM the sum of $250 per kilo for clinical supply of Improved GOS. Lease Agreement The Company leases office space for its headquarters in California. Until September 30, 2015, the Company leased office and storage space pursuant to a two-year agreement which called for a minimum monthly rent of approximately $5,000 and an annual increase of 3%. On July 9, 2015, the Company entered into a lease with Century Park, a California limited partnership, pursuant to which the Company leases approximately 2,780 square feet of office space in Los Angeles, California for its headquarters. The lease provides for a term of sixty-one (61) months, commencing on October 1, 2015. The Company paid no rent for the first month of the term and paid base rent of $9,174 per month for months 2 through 13 of the term, with increasing base rent for each twelve-month period thereafter under the term of the lease to a maximum of $10,325 per month for months 50 through 61. The base rent payments do not include the Company’s proportionate share of any operating expenses, including real estate taxes. The Company has the option to extend the term of the lease for one five-year term, provided that the rent would be subject to market adjustment at the beginning of the renewal term. Rent expense, recognized on a straight-line basis over the term of the lease, was approximately $115,000 and $74,000 for the years ended December 31, 2016 and 2015, respectively, and is recorded in general and administrative expenses in the accompanying statements of operations. The following table summarized our lease obligations at December 31, 2016: LEASE COMMITMENTS Years ended December 31, Operating Lease 2017 $ 113,958 2018 117,376 2019 120,898 2020 103,254 Total minimum lease payments $ 455,486 Legal The Company is not currently involved in any legal matters arising in the normal course of business. From time to time, the Company could become involved in disputes and various litigation matters that arise in the normal course of business. These may include disputes and lawsuits related to intellectual property, licensing, contract law and employee relations matters. Periodically, the Company reviews the status of significant matters, if any exist, and assesses its potential financial exposure. If the potential loss from any claim or legal claim is considered probable and the amount can be estimated, the Company accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability related to pending claims and litigation.

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit)	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Stockholders' Equity (Deficit)	NOTE 6 — STOCKHOLDERS’ EQUITY (DEFICIT) Authorized Shares On June 29, 2015, the Company amended and restated its Certificate of Incorporation (“the Amended Certificate”) authorizing the issuance of 25,000,000 shares of common stock, $0.001 par value per share, and 5,000,000 shares of preferred stock, $0.001 par value per share. Each share of the Company’s common stock is entitled to one vote, and all shares rank equally as to voting and other matters. Preferred stock has the rights, preferences and privileges that the Company’s Board of Directors may determine from time to time. Initial Public Offering On June 24, 2015, the Company’s registration statement on Form S-1 (File No. 333-202924) relating to its initial public offering of its common stock was declared effective by the SEC. The shares began trading on the NASDAQ Capital Market on June 24, 2015. On June 29, 2015, the Company closed its initial public offering, selling 4,000,000 shares of the Company’s common stock at an initial public offering price of $5.00 per share, for aggregate gross proceeds to the Company of $20 million. The Company paid to the underwriters underwriting discounts and commissions of approximately $1.6 million in connection with the offering, and approximately $1 million of other expenses in connection with the offering. The underwriters paid an aggregate purchase price of $100 for warrants to purchase 160,000 shares of the Company’s common stock, representing 4.0% of the initial public offering shares, at an exercise price of $6.25 per share, which equaled 125.0% of the initial public offering price. The warrants were exercisable on June 29, 2016 and expire on June 29, 2020. Effective prior to the closing of the initial public offering, the Company converted all of its outstanding shares of Series A-1, Series A-2, Series A-3, Series B, and Series C preferred into an aggregate of 3,322,652 shares of the Company’s common stock. Common Stock Purchase Agreement On December 18, 2015, the Company entered into a common stock purchase agreement (the “Aspire Purchase Agreement”), with Aspire Capital Fund, LLC, an Illinois limited liability company, (“Aspire Capital”), which provides that, upon the terms and subject to the conditions and limitations set forth therein, Aspire Capital is committed to purchase up to an aggregate of $10.0 million of the Company’s shares of common stock over the approximate 30-month term of the Aspire Purchase Agreement. In consideration for entering into the Aspire Purchase Agreement, concurrently with the execution of the Aspire Purchase Agreement, the Company issued to Aspire Capital 188,864 shares of the Company’s common stock as a commitment fee (the “Commitment Shares”). The fair value of the Commitment Shares were capitalized and recorded as a reduction of additional paid-in capital. Upon execution of the Aspire Purchase Agreement, the Company agreed to sell to Aspire Capital 500,000 shares of common stock at $2.00 per share for proceeds of $1.0 million. The Company sold an additional 888,835 shares of common stock to Aspire Capital pursuant to the terms of the Aspire Purchase Agreement on December 8, 2016 at $2.28 per share for approximate proceeds of $2.0 million. As of December 31, 2016, the Company issued an aggregate of 1,577,699 shares of its common stock to Aspire Capital under the Aspire Purchase Agreement for approximate proceeds of $3.0 million. Any trading day on which the closing sale price of the Company’s common stock exceeds $0.50, the Company has the right, in its sole discretion, to present Aspire Capital with a purchase notice, directing Aspire Capital (as principal) to purchase up to 100,000 shares of the Company’s common stock per trading day, for up to $7.0 million of the Company’s common stock in the aggregate at a per share price, calculated by reference to the prevailing market price of the Company’s common stock (as provided in the Aspire Purchase Agreement). Concurrently with entering into the Aspire Purchase Agreement, the Company also entered into a registration rights agreement with Aspire Capital, as amended (the “Registration Agreement”), in which the Company agreed to file one or more registration statements, as permissible and necessary to register under the Securities Act of 1933, as amended (the “Securities Act”), the sale of the shares of its common stock that have been and may be issued to Aspire Capital under the Aspire Purchase Agreement. On December 31, 2015, the Company filed a registration statement on Form S-1 (File No. 333-208818) pursuant to the terms of the Registration Agreement, which registration statement was declared effective on February 11, 2016. The Company filed a second registration statement on Form S-1 (File No. 333-215143), which registration statement was declared effective on February 13, 2017. October 2016 Public Offering On October 31, 2016, the Company closed a public offering, selling 2,127,660 shares of the Company’s common stock at a price to the public of $2.35 per share, for aggregate gross proceeds to the Company of approximately $5.0 million. The Company paid to the underwriters underwriting discounts and commissions of approximately $0.4 million in connection with the offering, and approximately $0.2 million of other expenses in connection with the offering. This offering was made pursuant to a shelf registration statement on Form S-3 (File No. 333-213087), which was declared effective by the SEC on August 23, 2016. The shelf registration statement allows the Company to issue, from time to time at prices and on terms to be determined at or prior to the time of an offering, up to $150,000,000 of any combination of an indeterminate number of shares of common stock, an indeterminate number of shares of preferred stock, an indeterminate principal amount of debt securities, an indeterminate number of warrants, rights and purchase contracts to purchase common stock or debt securities, and an indeterminate number of units. If any debt securities are issued at an original issue discount, then the offering price of such debt securities shall be in such greater principal amount as shall result in an aggregate offering price not to exceed $150,000,000, less the aggregate dollar amount of all securities previously issued hereunder. The securities registered also include such indeterminate number of shares of common stock and preferred stock that may be issued upon conversion or exchange of convertible or exchangeable securities being registered or pursuant to the anti-dilution provisions of any such securities.

Warrants

Warrants	12 Months Ended
	Dec. 31, 2016
Warrants and Rights Note Disclosure [Abstract]
Warrants	NOTE 7 — WARRANTS Warrants to purchase an aggregate of 578,323 shares of the Company’s common stock were outstanding at December 31, 2016. These warrants are all vested and exercisable, have exercise prices ranging from $6.25 to $9.30 per share, with a weighted average exercise price of $8.45, and expire at various dates through December 2021.

Stock Based Compensation

Stock Based Compensation	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Based Compensation	NOTE 8 — STOCK BASED COMPENSATION Equity Incentive Plans The Company issued equity awards under the terms of its 2015 Equity Incentive Plan, 2009 Stock Plan and 2008 Stock Plan (collectively the “Plans”.) The Plans permit the Company to grant non-statutory stock options, incentive stock options and other equity awards to the Company’s employees, outside directors and consultants; however, incentive stock options may only be granted to the Company’s employees. Beginning June 29, 2015, no further awards may be granted under the 2009 Stock Plan or 2008 Stock Plan. As of December 31, 2016, the aggregate number of shares of common stock available for issuance under the 2015 Equity Incentive Plan is 88,360. However, to the extent awards under the 2008 Plan or 2009 Plan are forfeited or lapse unexercised or are settled in cash, the common stock subject to such awards will be available for future issuance under the 2015 Equity Incentive Plan. The following table summarizes stock option activity under the equity incentive plans for the year ended December 31, 2016: Number of Shares Weighted- Average Exercise Price Aggregate Intrinsic Value Weighted- Average Remaining Contractual Life (in years) Outstanding at December 31, 2015 1,938,534 $ 7.08 $ 65,601 8.7 Options granted 574,088 $ 2.08 Options forfeited (15,000 ) $ 1.39 Options exercised (20,698 ) $ 0.75 Outstanding at December 31, 2016 2,476,924 $ 6.01 $ 497,351 8.3 Exercisable at December 31, 2016 1,528,536 The exercise price for an option issued under the Plans is determined by the Board of Directors, but will be (i) in the case of an incentive stock option (A) granted to an employee who, at the time of grant of such option, is a 10% stockholder, no less than 110% of the fair market value per share on the date of grant; or (B) granted to any other employee, no less than 100% of the fair market value per share on the date of grant; and (ii) in the case of a non-statutory stock option, no less than 100% of the fair market value per share on the date of grant. The options awarded under the Plans shall vest as determined by the Board of Directors but shall not exceed a ten-year period. Fair Value of Equity Awards The Company utilizes the Black-Scholes option pricing model to value awards under its Plans. Key valuation assumptions include: ● Expected dividend yield. ● Expected stock-price volatility. ● Risk-free interest rate. ● Expected term. The Company elected to adopt the amendments of ASU 2016-09 (described in Note 3) related to the presentation of excess tax benefits on the statement of cash flows using a prospective transition method but does not expect any impact on its financial statements. The material factors incorporated in the Black-Scholes model in estimating the fair value of the options granted for the periods presented were as follows: Years ended December 31, 2016 2015 Expected dividend yield 0.00 % 0.00 % Expected stock-price volatility 53.60% - 59.03 % 51.45% - 67.08 % Risk-free interest rate 1.29% - 2.60 % 0.77% - 2.27 % Term of options 10 10 Stock price $1.13 - $2.91 $1.70 - $5.86 Stock-Based Compensation The Company recognized stock-based compensation expense for services within general and administrative expense in the accompanying statements of operations of approximately $1.4 million and $2.9 million for the years ended December 31, 2016 and 2015, respectively. As of December 31, 2016, there was approximately $1.1 million of total unrecognized compensation cost related to un-vested stock-based compensation arrangements. This cost is expected to be recognized over a weighted average period of 1.4 years. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2016 and 2015 was approximately $56,000 and $9,000, respectively. The cash received from exercised options was approximately $16,000 and $5,000 for the years ended December 31, 2016 and 2015, respectively.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 9 — RELATED PARTY TRANSACTIONS A director of the Company is a managing director of Javelin Venture Partners GP, LLC, the general partner of Javelin Venture Partners GP, L.P., which holds a significant investment in the Company’s common stock and warrants. Two directors of the Company have acted as a managing director of Stonehenge Partners, LLC, which holds significant investment in the Company’s common stock. Other than disclosed, the Company has not entered into or been a participant in any transaction in which a related party had or will have a direct or indirect material interest.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 10 — INCOME TAXES As of December 31, 2016, the Company has net operating loss carryforwards of approximately $32.3 million available to reduce future taxable income, if any, for Federal and state income tax purposes. The U.S. federal and state net operating loss carryforwards will begin to expire in 2028. As of December 31, 2016, the Company has Federal and state research and development credit carryforwards of approximately $1.2 million and $734,000, respectively, available to reduce future taxable income, if any, for Federal and state income tax purposes. The Federal credit carryforwards begin to expire in 2029. California credits have no expiration date. Under the Internal Revenue Code (“IRC”) Sections 382 and 383, annual use of the Company’s net operating loss and research tax credit carryforwards to offset taxable income may be limited based on cumulative changes in ownership. The Company has not completed an analysis to determine whether any such limitations have been triggered as of December 31, 2016. The Company has no income tax affect due to the recognition of a full valuation allowance on the expected tax benefits of future loss carry forwards based on uncertainty surrounding realization of such assets. A reconciliation of the statutory income tax rates and the Company’s effective tax rate is as follows: December 31, 2016 2015 Statutory U.S. federal rate 34.0 % 34.0 % State income tax, net of federal benefit 5.8 % 5.8 % Meals & entertainment (0.1 )% (0.1 )% Valuation allowance (39.7 )% (39.7 )% Provision for income taxes 0.0 % 0.0 % The tax effects of the temporary differences and carryforwards that give rise to deferred tax assets consist of the following: As of December 31, 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 12,862,811 $ 6,192,058 Patent costs 363,775 410,913 Capitalized interest — 85,568 Accrued vacation 31,583 27,852 Research and development credit 1,951,539 345,721 Stock-based compensation 2,095,076 1,480,266 Other 7,535 5,195 Gross deferred tax assets 17,312,319 8,547,573 Valuation allowance (17,312,319 ) (8,547,573 ) Net deferred tax assets $ — $ — The Company did not record any accruals for income tax accounting uncertainties for the years ended December 31, 2016 and 2015 . Authoritative guidance requires companies to accrue interest and related penalties, if applicable, on all tax positions for whichsss reserves have been established consistent with jurisdictional tax laws. The Company’s policy is to recognize interest and penalties that would be assessed in relation to the settlement value of unrecognized tax benefits as a component of income tax expense. The Company did not accrue either interest or penalties from inception through December 31, 2016. The Company does not have any unrecognized tax benefits that will significantly decrease or increase within 12 months of December 31, 2016. The Company’s major tax jurisdictions are the United States and California. All of the Company’s tax years will remain open three and four years for examination by the Federal and state tax authorities, respectively, from the date of utilization of the net operating loss. The Company does not have any tax audits pending.

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of 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 and such differences may be material to the financial statements. The more significant estimates and assumptions by management include among others; the valuation allowance of deferred tax assets resulting from net operating losses and the valuation of options on the Company’s common stock.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash consists of amounts held in a financial institution and consists of immediately available fund balances. The funds were maintained at a stable financial institution, generally at amounts in excess of federally insured limits, which represents a concentration of credit risk. The Company has not experienced any losses on deposits of cash and cash equivalents to date.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method (see Note 4). Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to income. Maintenance and repairs are charged to expense as incurred while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company periodically assesses the impairment of long lived assets in accordance with Accounting Standards Codification (“ASC”) Topic 360, Property Plant and Equipment.
Clinical Trial and Pre-Clinical Study Accruals	Clinical Trial and Pre-Clinical Study Accruals The Company makes estimates of accrued expenses as of each balance sheet date in its financial statements based on the facts and circumstances known to it at that time. Accrued expenses for pre-clinical studies and clinical trials are based on estimates of costs incurred and fees that may be associated with services provided by contract research organizations, clinical trial investigational sites, and other related vendors. Payments under certain contracts with such parties depend on factors such as successful enrollment of patients, site initiation and the completion of milestones. In accruing service fees, management estimates the time period over which services will be performed and the level of effort to be expended in each period. If possible, the Company obtains information regarding unbilled services directly from these service providers. However, the Company may be required to estimate these services based on other information available to it. If the Company underestimates or overestimates the activity or fees associated with a study or service at a given point in time, adjustments to research and development expenses may be necessary in future periods. Historically, estimated accrued liabilities have approximated actual expense incurred. Subsequent changes in estimates may result in a material change in the Company’s accruals.
Research and Development	Research and Development The Company expenses the cost of research and development as incurred. Research and development expenses comprise costs incurred in performing research and development activities, including clinical trial costs, manufacturing costs for both clinical and pre-clinical materials as well as other contracted services, license fees, and other external costs. Nonrefundable advance payments for goods and services that will be used in future research and development activities are expensed when the activity is performed or when the goods have been received, rather than when payment is made, in accordance with ASC Topic 730, Research and Development
Patent Costs	Patent Costs The Company has no historical data to support a probable future economic benefit for the arising patent applications, filing and prosecution costs. Therefore, patent costs are expensed as incurred. Should the Company experience a legal cost to defend a patent in the future, that cost would be capitalized only when it is part of the cost of retaining and obtaining the future economic benefit of the patent. Costs related to an unsuccessful outcome would be expensed.
Stock-based Compensation	Stock-based Compensation Stock-based compensation cost for stock awards issued to employees, members of the Company’s board of directors and non-employees, is measured at the grant date based on the fair value of the award and is recognized as expense over the required service period, which is generally equal to the vesting period. Stock-based compensation is recognized only for those awards that are ultimately expected to vest. Common stock, stock options or warrants issued to non-employees, including consultants and members of the Company’s Scientific Advisory Board as consideration for goods or services received by the Company, are accounted for based on the fair value of the equity instruments issued unless the fair value consideration received can be more reliably measured. The fair value of stock options is determined using the Black-Scholes option-pricing model. The fair value of any options issued to non-employees is recorded as expense over the vesting period. See Note 8 for further information.
Fair Value Measurements	Fair Value Measurements The Company follows authoritative accounting guidance, which among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. As of December 31, 2016 and 2015, the carrying amounts of cash and cash equivalents, prepaid expenses, accounts payable and accrued expenses are generally considered to be representative of their fair value because of the short term nature of these instruments. No transfers between levels have occurred during the periods presented.
Accounting for Income Taxes	Accounting for Income Taxes Deferred tax assets and liabilities are recognized for the expected future consequences of events that have been reflected in the financial statements. Deferred tax assets and liabilities are determined based on the differences between the book and tax basis of assets and liabilities and operating loss carryforwards, using tax rates expected to be in effect for the years in which the differences are expected to reverse. Such differences arise primarily from stock-based compensation and net operating loss carryforwards. The Company records a valuation allowance to reduce deferred income tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. Prior to September 15, 2008, the Company was a limited liability company and the Company’s tax losses and credits generally flowed directly to the members.
Net Loss Per Share	Net Loss Per Share Basic net loss per share is calculated by dividing net loss by the weighted-average common shares outstanding during the period. Diluted net loss per share is calculated by dividing net loss by the weighted-average common shares outstanding during the period using the treasury stock method or the two-class method, whichever is more dilutive. The potentially dilutive stock options issued under the 2015 Equity Incentive Plan (described in Note 8) and warrants on the Company’s common stock (described in Note 7) are not considered in the computation of diluted net loss per share because they would be anti-dilutive. All common share amounts and per share amounts have been adjusted to reflect a 1-for-7.15 reverse stock split of the Company’s common stock effected in June 2015.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. The Company is required to record all components of comprehensive loss in the financial statements in the period in which they are recognized. Net income (loss) and other comprehensive loss, including foreign currency translation adjustments and unrealized gains and losses on investments are reported, net of their related tax effect, to arrive at a comprehensive loss. For the years ended December 31, 2016 and 2015, comprehensive loss was equal to the net loss.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-02, Leases (Topic 842) i.e., Leases On March 30, 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting On August 26, 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230), Other accounting standards updates effective after December 31, 2016 are not expected to have a material effect on the Company’s financial statements.

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consists of the following: Useful Life (Years) December 31, 2016 December 31, 2015 Furniture and fixtures 7 $ 23,325 $ 15,840 Computer equipment 5 10,274 9,696 33,599 25,536 Less: Accumulated depreciation and amortization (10,057 ) (4,848 ) Property and equipment, net $ 23,542 $ 20,688

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Summarized Operating Lease Obligations	The following table summarized our lease obligations at December 31, 2016: LEASE COMMITMENTS Years ended December 31, Operating Lease 2017 $ 113,958 2018 117,376 2019 120,898 2020 103,254 Total minimum lease payments $ 455,486

Stock-Based compensation (Table

Stock-Based compensation (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Option Activity	The following table summarizes stock option activity under the equity incentive plans for the year ended December 31, 2016: Number of Shares Weighted- Average Exercise Price Aggregate Intrinsic Value Weighted- Average Remaining Contractual Life (in years) Outstanding at December 31, 2015 1,938,534 $ 7.08 $ 65,601 8.7 Options granted 574,088 $ 2.08 Options forfeited (15,000 ) $ 1.39 Options exercised (20,698 ) $ 0.75 Outstanding at December 31, 2016 2,476,924 $ 6.01 $ 497,351 8.3 Exercisable at December 31, 2016 1,528,536
Schedule Assumptions Used in Black-Scholes Option-pricing Method	The material factors incorporated in the Black-Scholes model in estimating the fair value of the options granted for the periods presented were as follows: Years ended December 31, 2016 2015 Expected dividend yield 0.00 % 0.00 % Expected stock-price volatility 53.60% - 59.03 % 51.45% - 67.08 % Risk-free interest rate 1.29% - 2.60 % 0.77% - 2.27 % Term of options 10 10 Stock price $1.13 - $2.91 $1.70 - $5.86

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of Reconiliation of Statutory Income Tax Rate	A reconciliation of the statutory income tax rates and the Company’s effective tax rate is as follows: December 31, 2016 2015 Statutory U.S. federal rate 34.0 % 34.0 % State income tax, net of federal benefit 5.8 % 5.8 % Meals & entertainment (0.1 )% (0.1 )% Valuation allowance (39.7 )% (39.7 )% Provision for income taxes 0.0 % 0.0 %
Schedule of Deferred Tax Assets	The tax effects of the temporary differences and carryforwards that give rise to deferred tax assets consist of the following: As of December 31, 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 12,862,811 $ 6,192,058 Patent costs 363,775 410,913 Capitalized interest — 85,568 Accrued vacation 31,583 27,852 Research and development credit 1,951,539 345,721 Stock-based compensation 2,095,076 1,480,266 Other 7,535 5,195 Gross deferred tax assets 17,312,319 8,547,573 Valuation allowance (17,312,319 ) (8,547,573 ) Net deferred tax assets $ — $ —

Organization and Principal Ac22

Organization and Principal Activities (Details Narrative) - USD ($)	Jun. 29, 2015	Jun. 29, 2015	Dec. 31, 2016	Dec. 31, 2015
Organization And Principal Activities [Line Items]
Offering expenses				$ 2,194,375
Stock reverse split			1-for-7.15 reverse stock split
IPO [Member]
Organization And Principal Activities [Line Items]
Number of common shares sold	4,000,000	4,000,000
Shares of common stock sold, per share	$ 5	$ 5
Underwriting discounts and commissions	$ 1,600,000	$ 1,600,000
Offering expenses		1,000,000
Net offering proceeds		$ 17,400,000
Stock reverse split		1–for-7.15 reverse split

Basis of Presentation (Details

Basis of Presentation (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ 18,384,634	$ 8,787,771
Net cash used in operating activities	$ 15,208,718	$ 5,721,565

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Detail Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Impairments chagers
Stock reverse split	1-for-7.15 reverse stock split

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 5,209	$ 1,939

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 33,599	$ 25,536
Less: Accumulated depreciation and amortization	(10,057)	(4,848)
Property and equipment, net	23,542	20,688
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 23,325	15,840
Useful Life (Years)	7 years
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 10,274	$ 9,696
Useful Life (Years)	5 years

Commitments and Contingencies27

Commitments and Contingencies (Details Narrative)	Jul. 30, 2015USD ($)$ / kgshares	Jul. 09, 2015ft²	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Percentage of increase in annual rent			3.00%
Minimum monthly rent			$ 5,000
Lease agreement term			2 years
Rent expense			$ 115,000	$ 74,000
Century Park [Member]
Lease agreement term		61 months
Area of lease | ft²		2,780
Months 2 Through 13 [Member]
Rent expense			$ 9,174
Lease term description			months 2 through 13 of the term
Months 50 Through 61 [Member]
Rent expense			$ 10,325
Lease term description			months 50 through 61
Ricerche Sperimentali Montale Spa And Inalco Spa [Member] | Amended Clinical Supply And Cooperation Agreement [Member] | Contractual Rights [Member]
Payment for GOS IP	$ 800,000
Payment required following FDA approval to RSM	$ 400,000
GOS price per kilo | $ / kg	250
Ricerche Sperimentali Montale Spa And Inalco Spa [Member] | Stock Purchase Agreement [Member]
Number of common shares to be issued | shares	100,000

Commitments and Contingencies -

Commitments and Contingencies - Summarized Operating Lease Obligations (Details)	Dec. 31, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,017	$ 113,958
2,018	117,376
2,019	120,898
2,020	103,254
Total minimum lease payments	$ 455,486

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	Dec. 08, 2016	Oct. 31, 2016	Dec. 18, 2015	Jun. 29, 2015	Jun. 29, 2015	Dec. 31, 2016	Dec. 31, 2015
Common stock, shares authorized				25,000,000	25,000,000	25,000,000	25,000,000
Common stock, par value				$ 0.001	$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares authorized				5,000,000	5,000,000	5,000,000	5,000,000
Preferred stock, par value				$ 0.001	$ 0.001	$ 0.001	$ 0.001
Aggregate gross proceeds from sale of common stock						$ 5,000,000
Warrants exercise price						$ 8.45
Common Stock Purchase Agreement [Member] | Aspire Capital Fund LLC [Member]
Number of common shares sold	888,835		500,000			1,577,699
Shares of common stock sold, per share	$ 2.28		$ 2			$ 0.50
Payments to acquire common stock			$ 10,000,000			$ 7,000,000
Purchase agreement term			30 months
Aggregate of shares issued during period			188,864			100,000
Number of stock sold during period, value	$ 2,000,000		$ 1,000,000			$ 3,000,000
IPO [Member]
Number of common shares sold				4,000,000	4,000,000
Shares of common stock sold, per share				$ 5	$ 5
Aggregate gross proceeds from sale of common stock				$ 20,000,000
Underwriting discounts and commissions				1,600,000	$ 1,600,000
Other expenses with offering				1,000,000
Underwriters paid an aggregate purchase price				$ 100
Warrant issued to purchase number of common stock				160,000
Percentage of initial public offering shares				4.00%
Warrants exercise price				$ 6.25	$ 6.25
Percentage of warrants exercise price equal to initial public offering price				125.00%
Warrants exercisable expiration				June 29, 2016 and expire on June 29, 2020
Number of preferred stock and preferred stock subject to redemption converted into common stock (in shares)				3,322,652	3,322,652
October 2016 Public Offering [Member]
Number of common shares sold		2,127,660
Shares of common stock sold, per share		$ 2.35
Aggregate gross proceeds from sale of common stock		$ 5,000,000
Underwriting discounts and commissions		400,000
Other expenses with offering		$ 200,000
October 2016 Public Offering [Member] | Maximum [Member]
Aggregate gross proceeds from sale of common stock						150,000,000
Debt securities issued						$ 150,000,000

Warrants (Details Narrative)

Warrants (Details Narrative)	12 Months Ended
	Dec. 31, 2016$ / sharesshares
Issuance of warrants to purchase of common stock shares | shares	578,323
Weighted average exercise price	$ 8.45
Warrant term	Dec. 31, 2021
Minimum [Member]
Warrants exercise prices ranging	$ 6.25
Maximum [Member]
Warrants exercise prices ranging	$ 9.30

Stock-Based Compensation (Detai

Stock-Based Compensation (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Stock based compensation expense	$ 1,359,205	$ 2,894,509
Cash Received from Exercise of Stock Options	16,000	5,000
Employee Stock Option [Member]
Unrecognized compensation cost related to un-vested stockbased compensation	$ 1,100,000
Weighted average period of compensation cost expected to be recognized	1 year 4 months 24 days
Aggregate intrinsic value of stock options exercised	$ 56,000	9,000
Employee Stock Option [Member] | General and Administrative Expense [Member]
Stock based compensation expense	$ 1,400,000	$ 2,900,000
Stock Plan 2015 [Member] | Employee Stock Option [Member]
Aggregate number of shares of common stock authorized to issue	88,360
Stock option description	The exercise price for an option issued under the Plans is determined by the Board of Directors, but will be (i) in the case of an incentive stock option (A) granted to an employee who, at the time of grant of such option, is a 10% stockholder, no less than 110% of the fair market value per share on the date of grant; or (B) granted to any other employee, no less than 100% of the fair market value per share on the date of grant; and (ii) in the case of a non-statutory stock option, no less than 100% of the fair market value per share on the date of grant. The options awarded under the Plans shall vest as determined by the Board of Directors but shall not exceed a ten-year period.
Vesting period of options	10 years

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Details)	12 Months Ended
	Dec. 31, 2016USD ($)$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of Shares, Outstanding, beginning	1,938,534
Number of Shares, Options granted	574,088
Number of Shares, Options forfeited	(15,000)
Number of Shares, Options exercised	(20,698)
Number of Options, Outstanding at ending	2,476,924
Number of Options, Exercisable	1,528,536
Weighted Average Exercise Price, Outstanding, beginning | $ / shares	$ 7.08
Weighted Average Exercise Price, Options granted | $ / shares	2.08
Weighted Average Exercise Price, Options forfeited | $ / shares	1.39
Weighted Average Exercise Price, Options exercised | $ / shares	0.75
Weighted Average Exercise Price, Outstanding at ending | $ / shares	$ 6.01
Aggregate Intrinsic Value, Outstanding, beginning | $	$ 65,601
Aggregate Intrinsic Value, Outstanding at ending | $	$ 497,351
Weighted- Average Remaining Contractual Life (in years), Outstanding, beginning	8 years 8 months 12 days
Weighted- Average Remaining Contractual Life (in years), Outstanding at ending	8 years 3 months 18 days

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule Assumptions Used in Black-Scholes Option-pricing Method (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Expected dividend yield	0.00%	0.00%
Expected stock-price volatility, Minimum	53.60%	51.45%
Expected stock-price volatility, Maximum	59.03%	67.08%
Risk-free interest rate, Minimum	1.29%	0.77%
Risk-free interest rate, Maximum	2.60%	2.27%
Expected term of options	10 years	10 years
Minimum [Member]
Stock price	$ 1.13	$ 1.70
Maximum [Member]
Stock price	$ 2.91	$ 5.86

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Operating loss carryforwards	$ 32,300,000
Operating loss carryforwards expire year	2,028
Research and development credit carryforwards expire year	2,029
Accruals for income tax accounting uncertainties
Interest or penalties
Unrecognized tax benefits decrease or increase during period
Federal [Member]
Research and development credit carryforwards	1,200,000
State [Member]
Research and development credit carryforwards	$ 734,000

Income Taxes - Schedule of Reco

Income Taxes - Schedule of Reconiliation of Statutory Income Tax Rate (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Statutory U.S. federal rate	34.00%	34.00%
State income tax, net of federal benefit	5.80%	5.80%
Meals & entertainment	(0.10%)	(0.10%)
Valuation allowance	(39.70%)	(39.70%)
Provision for income taxes	0.00%	0.00%

Income Taxes - Schedule of Defe

Income Taxes - Schedule of Deferred Tax Assets (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Net operating loss carry forwards	$ 12,862,811	$ 6,192,058
Patent costs	363,775	410,913
Capitalized interest		85,568
Accrued vacation	31,583	27,852
Research and development credit	1,951,539	345,721
Stock based compensation	2,095,076	1,480,266
Other	7,535	5,195
Gross deferred tax assets	17,312,319	8,547,573
Valuation allowance	(17,312,319)	(8,547,573)
Net deferred tax assets