Document_and_Entity_Informatio
Document and Entity Information (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Document and Entity Information: | ' |
Entity Registrant Name | 'Cardigant Medical Inc. |
Document Type | '10-Q |
Document Period End Date | 30-Jun-14 |
Amendment Flag | 'false |
Entity Central Index Key | '0001491487 |
Current Fiscal Year End Date | '--12-31 |
Entity Common Stock, Shares Outstanding | 23,330,662 |
Entity Public Float | $0 |
Entity Filer Category | 'Smaller Reporting Company |
Entity Current Reporting Status | 'Yes |
Entity Voluntary Filers | 'No |
Entity Well-known Seasoned Issuer | 'No |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q2 |
Balance_Sheets_Unaudited
Balance Sheets (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Assets, Current | ' | ' |
Cash and Cash Equivalents | $479 | $3,124 |
Prepaid Expense | 2,982 | 17,378 |
Deposits | 1,195 | 1,195 |
Total Current Assets | 4,656 | 21,697 |
Assets, Noncurrent | ' | ' |
Property, Plant and Equipment, Net | 3,794 | 4,903 |
Intangibles | 5,980 | 2,363 |
Total Assets | 14,430 | 28,963 |
Liabilities, Current | ' | ' |
Accounts Payable | 31,200 | 6,519 |
Accrued Liabilities | 71,534 | 66,185 |
Due to Stockholder | 2,724 | 14,938 |
Accrued Officer Compensation | 619,000 | 559,000 |
Total Liabilities | 724,458 | 646,642 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | ' | ' |
Common Stock, Value, Issued | 23,331 | 23,138 |
Additional Paid in Capital, Common Stock | 570,683 | 464,205 |
Retained Earnings (Accumulated Deficit) | -1,304,042 | -1,105,022 |
Stockholders' Equity | -710,028 | -617,679 |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures | ' | ' |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares Issued | 23,330,662 | 23,138,310 |
Total Liabilities and Stockholder's (Deficit) | $14,430 | $28,963 |
Statement_of_Operations_unaudi
Statement of Operations (unaudited) (USD $) | 3 Months Ended | 6 Months Ended | 62 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | |
Revenues | ' | ' | ' | ' | ' |
Net Sales | $0 | $0 | $0 | $0 | $0 |
Cost of Revenue | ' | ' | ' | ' | ' |
Cost of Goods Sold | 0 | 0 | 0 | 0 | 0 |
Gross Profit | 0 | 0 | 0 | 0 | 0 |
Operating Expenses | ' | ' | ' | ' | ' |
Research and Development Expense | 35,035 | 52,015 | 85,487 | 103,288 | 880,925 |
Selling, General and Administrative Expense | 55,944 | 31,767 | 112,261 | 73,002 | 561,318 |
Total Operating Expenses | 90,979 | 83,782 | 197,748 | 176,290 | 1,442,243 |
Loss from Operations | -90,979 | -83,782 | -197,748 | -176,290 | 0 |
Investment Income, Nonoperating | ' | ' | ' | ' | ' |
Interest Income (Expense) | -226 | -2,932 | -472 | -3,299 | -9,046 |
Grant Income | 0 | 0 | 0 | 0 | 151,247 |
Total Other Income | -226 | -2,932 | -472 | -3,299 | 142,201 |
Income Tax Expense (Benefit) | ' | ' | ' | ' | ' |
Provision for Income Tax | -800 | 0 | -800 | -800 | -4,000 |
Net Loss | ($92,005) | ($86,714) | ($199,020) | ($180,389) | ($1,304,042) |
Earnings Per Share | ' | ' | ' | ' | ' |
Earnings Per Share, Basic | $0 | $0 | $0 | $0 | ' |
Weighted Average Number of Shares Outstanding, Basic | 23,299,233 | 23,070,905 | 23,219,216 | 23,055,920 | ' |
Statement_of_Cash_Flows_Unaudi
Statement of Cash Flows (Unaudited) (USD $) | 6 Months Ended | 62 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | |
Net Cash Provided by (Used in) Operating Activities | ' | ' | ' |
Net Income (Loss) | ($199,020) | ($180,389) | ($1,304,042) |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | ' | ' | ' |
Stock based Compensation | 55,155 | 28,505 | 177,257 |
Depreciation, Depletion and Amortization | 1,109 | 959 | 4,301 |
Increase (Decrease) in Prepaid Expense and Other Assets | 14,396 | 16 | -4,927 |
Increase (Decrease) in Accounts Payable | 24,681 | 203 | 40,097 |
Increase (Decrease) in Accrued Liabilities | 65,435 | 60,898 | 690,621 |
Net Cash Provided by (Used in) Operating Activities | -38,244 | -89,808 | -396,693 |
Net Cash Provided by (Used in) Investing Activities | ' | ' | ' |
Investment in Long-term certificate of deposit | 0 | 0 | -100,381 |
Redemption of certificate of deposit | 0 | 0 | 100,381 |
Payments for Equipment & Software | 0 | -3,600 | -8,095 |
Investment in Intellectual Property | -3,617 | 0 | -5,980 |
Net Cash Provided by (Used in) Investing Activities | -3,617 | -3,600 | -14,075 |
Net Cash Provided by (Used in) Financing Activities | ' | ' | ' |
Proceeds from Issuance of Common Stock | 51,516 | 85,700 | 367,508 |
Advances from Related Parties | 18,400 | 23,848 | 227,883 |
Repayments to Related Parties | -30,700 | -32,200 | -184,144 |
Net Cash Provided by (Used in) Financing Activities | 39,216 | 77,348 | 411,247 |
Cash and Cash Equivalents, Period Increase (Decrease) | -2,645 | -16,060 | 479 |
Cash and Cash Equivalents, at Carrying Value | 3,124 | 54,194 | 0 |
Cash and Cash Equivalents, at Carrying Value | $479 | $38,134 | $479 |
Organization_Consolidation_and
Organization, Consolidation and Presentation of Financial Statements | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements: | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies | ' |
(1) Nature and Continuance of Operations | |
Description of the Business | |
Cardigant Medical Inc. ("Cardigant" or "Company") is a development stage biotechnology company focused on the development of novel biologic and peptide based compounds and enhanced methods for local delivery for the treatment of vascular disease including peripheral artery disease and ischemic stroke. Cardigant was founded on April 17, 2009 and is incorporated within the state of Delaware. The Company is engaged in research and development in multiple locations but maintains its corporate office in greater Los Angeles. | |
The Company is in the development stage, as defined in Accounting Standards Codification ("ASC") Topic 915-10. From its inception (April 17, 2009) through June 30, 2014, the Company has not had any revenue from its principal planned operations. The Company will continue to report as a development stage company until significant revenues are produced. | |
On March 4, 2013, the Company filed an amendment to its articles of incorporation changing its authorized common stock to 50,000,000. Also on March 4, 2013, the Company authorized a 2:1 forward stock split. The accompanying unaudited condensed financial statements reflect the change in capital and stock split as if they occurred at the Company’s inception. | |
Going Concern | |
The Company's financial statements are prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America and have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. | |
The Company has generated losses from operations to date, does not expect to generate operating revenue for several years, and its viability is dependent upon its ability to obtain financing and the success of its future operations. These financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or liabilities that might be necessary should the Company be unable to continue as a going concern. | |
Basis of Presentation | |
The accompanying unaudited financial statements contain all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the financial position of the Company as of June 30, 2014, and the results of its operations for the three and six months ended June 30, 2014 and 2013, and cash flows for the six months ended June 30, 2014 and 2013. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to rules and regulations of the U.S. Securities and Exchange Commission (“the Commission”). The Company believes that the disclosures in the unaudited financial statements are adequate to ensure the information presented is not misleading. However, the unaudited financial statements included herein should be read in conjunction with the financial statements and notes thereto included in the Company’s Amended Annual Report on Form 10-K/A for the year ended December 31, 2013, filed with the Commission on April 8, 2014. | |
The accompanying financial statements are prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America. |
Accounting_Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies: | ' |
Significant Accounting Policies | ' |
(2) Summary of Significant Accounting Policies | |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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 condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Cash and Cash Equivalents | |
The Company considers all highly liquid debt instruments and other short-term investments with maturities of three months or less, when purchased, to be cash equivalents. The Company maintains cash balances at one financial institution that is insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. As of June 30, 2014, the Company's cash balances did not exceed the FDIC limits. | |
Research and Development | |
The Company accounts for research and development costs in accordance with ASC Topic 730-10 "Research and Development." Under ASC Topic 730-10, all research and development costs must be charged to expenses as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company sponsored research and development costs related to both present and future products are expensed in the period incurred. For the three months ended June 30, 2014 and 2013, the Company incurred research and development expenses of $35,035 and $52,015, respectively. For the six months ended June 30, 2014 and 2013, the Company incurred research and development expenses of $85,487 and $103,288, respectively. | |
Stock-Based Compensation | |
The Company accounts for its stock-based compensation under ASC Topic 505-50. This standard defines a fair value-based method of accounting for stock-based compensation. In accordance with ASC Topic 505-50, the cost of stock-based compensation is measured at the grant date based on the value of the award and is recognized over the period in which the Company expects to receive the benefit, which is generally the vesting period. | |
See Note (6) Stockholder’s Equity (Deficit) for detail stock-based compensation activity. | |
Per Share Amounts | |
The Company reports earnings (loss) per share in accordance with ASC Topic 260-10 "Earnings per Share." Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of common shares available. | |
Recent Accounting Pronouncements | |
The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financials properly reflect the change. |
Commitment_and_Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitment and Contingencies: | ' |
Commitments and Contingencies Disclosure | ' |
(8) Commitments and Contingencies | |
Rental Agreement | |
On May 3, 2011 the Company entered into a rental agreement for laboratory space at a bioscience collective in Pasadena, California. The rental agreement calls for a security deposit of $1,100 and monthly rent payments of $1,200. The lease is month-to-month and can be terminated by either party with thirty days' notice. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2013 | |
Equity: | ' |
Stockholders' Equity Note Disclosure | ' |
(6) Stockholders’ Equity (Deficit) | |
There is no public market for the Company's common shares. Since its inception, the Company has negotiated the value of its common stock in arm's length transactions with unrelated parties. | |
During the three months ended June 30, 2014, the Company issued 70,000 unregistered shares of its common stock for services valued at $0.53 per share. | |
During the three months ended March 31, 2014, the Company issued 122,352 unregistered shares of its common stock. The issuance included 97,200 units issued for cash proceeds of $51,516 and 25,152 shares issued for services valued at $0.53 per share. The 97,200 units issued consisted of one common share and one common stock warrant. The warrants have an exercise price of $0.65 per share and expire in January 2018. | |
During the three months ended March 31, 2013, the Company issued 163,238 shares of its common stock and received $85,700 through the January 19, 2012 S-1 offering. | |
During the six months ended June 30, 2013, the Company issued 5,712 shares of its common stock for services provided by its Chief Scientific Officer valued at $3,000 and charged to expense. The Company also issued 4,500 shares of its common stock for services provided by its Chief Financial Officer valued at $2,363 and charged to expense. During the three months ended June 30, 2013, the Company issued options to a laboratory consultant to purchase 5,000 shares of the Company common stock at $0.53 per share. The options were valued at $932 using the Black-Sholes Option Model, of which all were immediately vested. Their fair value of $932 was charged to operations. The option valuation factors included a term of 10 years, volatility of approximately 23%, a U.S Treasury interest rate of 2.13%, a dividend rate of 0.0% with an exercise price of $0.53, and a stock price of $0.525. |
Compensation_Related_Costs_Gen
Compensation Related Costs, General | 12 Months Ended |
Dec. 31, 2013 | |
Compensation Related Costs, General: | ' |
Compensation Related Costs, General | ' |
(5) Accrued Officer's Compensation | |
The accrued officer’s compensation balances, net of any salary payments, at June 30, 2014 and December 31, 2013 were $619,000 and $559,000, respectively. Salary is allocated between research and development and general and administrative based upon time spent. |
Income_Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2013 | |
Income Taxes: | ' |
Income Tax Disclosure | ' |
(7) Income Taxes | |
The Company's policy regarding income tax interest and penalties is to expense those items as general and administrative expense and to identify them for tax purposes. The Company files income tax returns in the U.S. federal jurisdiction and the state of California. The Company is subject to income tax examination by tax authorities for 2011, 2012 and 2013 for its Federal tax returns and 2010, 2011, 2012, and 2013 for its state tax returns. |
Fair_Value_Measures_and_Disclo
Fair Value Measures and Disclosures | 12 Months Ended |
Dec. 31, 2013 | |
Fair Value Measures and Disclosures: | ' |
Fair Value Disclosures | ' |
(3) Fair Value Measurements | |
The Company’s financial instruments for 2014 and 2013 consist of account payables, accrued expenses and a short term loan payable. The Company considers the carrying value of such amounts in the financial statements to approximate their fair value due to their respective short maturity dates. |
Related_Party_Disclosures
Related Party Disclosures | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Disclosures: | ' |
Related Party Transactions Disclosure | ' |
(4) Related Party Transactions | |
The Company has received some of its working capital from its founder, Jerett A. Creed. Mr. Creed has also paid Company expenses with personal funds. These costs have been carried as a shareholder loan accruing interest at the rate of 5% per annum. The total outstanding balance as of June 30, 2014 and December 31, 2013 was $2,724, and $14,938, respectively. Accrued interest on the outstanding balance charged to operations for the quarter ended June 30, 2014 and 2013 was $33 and $279, respectively. Accrued interest on the outstanding balance charged to operations for the six months ended June 30, 2014 and 2013 was $86 and $646, respectively. |