PLx Pharma Winddown (PLXPQ) 10-K 22 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Mar. 21, 2016	Jun. 30, 2015
Document and Entity Information
Entity Registrant Name	Dipexium Pharmaceuticals, Inc.
Entity Central Index Key	1,497,504
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 77,568,188
Entity Common Stock, Shares Outstanding		10,351,613
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Dec. 31, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash	$ 5,234,953	$ 27,040,325
Short-term Investments	26,977,362
Prepaid Expenses	146,145	120,128
TOTAL CURRENT ASSETS	32,358,460	27,160,453
OTHER ASSETS
Security Deposit	49,385	49,385
TOTAL OTHER ASSETS	49,385	49,385
TOTAL ASSETS	32,407,845	27,209,838
CURRENT LIABILITIES
Accounts Payable and Accrued Expenses	1,606,307	1,260,598
TOTAL LIABILITIES	$ 1,606,307	$ 1,260,598
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Common Stock : $.001 par value, 30,000,000 shares authorized, 10,301,114 and 8,538,329 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively	$ 10,301	$ 8,538
Additional paid-in capital	71,852,692	48,259,451
Accumulated deficit	(41,061,455)	(22,318,749)
TOTAL SHAREHOLDERS' EQUITY	30,801,538	25,949,240
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 32,407,845	$ 27,209,838

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
BALANCE SHEETS
Common Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common Stock, shares authorized	30,000,000	30,000,000
Common Stock, shares issued	10,301,114	8,538,329
Common Stock, shares outstanding	10,301,114	8,538,329

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
OPERATING EXPENSES
Research and Development Expenses	$ 11,286,236	$ 8,898,280
Selling, General and Administrative Expenses	7,478,527	4,684,497
TOTAL OPERATING EXPENSES	18,764,763	13,582,777
LOSS FROM OPERATIONS	(18,764,763)	(13,582,777)
Interest Income	22,057	1,793
NET LOSS	$ (18,742,706)	$ (13,580,984)
LOSS PER SHARE
Basic and diluted net loss per common share (in dollars per share)	$ (1.99)	$ (1.73)
Weighted average common shares/units outstanding basic and diluted	9,432,705	7,850,350

STATEMENTS OF CHANGES IN MEMBER

STATEMENTS OF CHANGES IN MEMBERS' & SHAREHOLDERS' EQUITY - USD ($)	Class A Membership Interests	Common StockIPO	Common Stock	Additional Paid-in CapitalIPO	Additional Paid-in Capital	Accumulated Deficit	IPO	Total
Balance at Dec. 31, 2013	$ 3,206,231							$ 3,206,231
Balance (in units) at Dec. 31, 2013	735,588
Increase (Decrease) in Stockholders' Equity
Issuance of Restricted Membership Interest Awards (in shares)	1,000
Issuance of Restricted Membership Interest to Vendors	$ 380,200				$ 69,812			450,012
Issuance of Restricted Membership Interest to Vendors (in units)	7,604
Issuance of Membership Interest for Warrant conversion (in shares)	23,719
Corporate Conversion	$ (3,586,431)		$ 5,375		12,318,821	$ (8,737,765)
Corporate Conversion (in shares)	(767,911)		5,375,377
Issuance of Common Stock, net of issuance costs		$ 3,163		$ 34,452,506			$ 34,455,669
Issuance of Common Stock, net of issuance costs (in shares)		3,162,500
Share-Based Compensation					1,418,312			1,418,312
Cashless Exercise of Warrants (in shares)			452
Net Loss						(13,580,984)		(13,580,984)
Balance at Dec. 31, 2014			$ 8,538		48,259,451	(22,318,749)		$ 25,949,240
Balance (in shares) at Dec. 31, 2014			8,538,329					8,538,329
Increase (Decrease) in Stockholders' Equity
Issuance of Common Stock, net of issuance costs			$ 1,702		19,742,183			$ 19,743,885
Issuance of Common Stock, net of issuance costs (in shares)			1,702,000
Share Based Payments to Vendors			$ 44		575,167			575,211
Share Based Payments to Vendors (in shares)			43,953
Share-Based Compensation			$ 14		3,275,894			3,275,908
Share-Based Compensation (in shares)			14,000
Cashless Exercise of Warrants			$ 3		(3)
Cashless Exercise of Warrants (in shares)			2,832
Net Loss						(18,742,706)		(18,742,706)
Balance at Dec. 31, 2015			$ 10,301		$ 71,852,692	$ (41,061,455)		$ 30,801,538
Balance (in shares) at Dec. 31, 2015			10,301,114					10,301,114

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Operating Activities:
Net Loss	$ (18,742,706)	$ (13,580,984)
Adjustments to reconcile net loss to net cash used in operating activities:
Share Based Compensation	3,275,908	1,418,312
Share Based Payments to Vendors	575,211	450,012
Amortization of short-term investment interest income	(20,621)
(Increase) / Decrease In:
Prepaid Expenses	(26,017)	(74,034)
Security Deposit		(49,385)
Accounts Payable and Accrued Expenses	345,708	559,590
Net Cash Used In Operating Activities	(14,592,517)	(11,276,489)
Investing Activities:
Proceeds from Sale of Short-term Investments	4,000,000
Purchase of Short -term Investments	(30,956,740)
Net Cash Used In Investing Activities	(26,956,740)
Financing Activities:
Proceeds from issuance of Common Stock, net of issuance costs	19,743,885	34,455,669
Net Cash Provided By Financing Activities	19,743,885	34,455,669
Net Increase (Decrease) In Cash	(21,805,372)	23,179,180
Cash at Beginning of Year	27,040,325	3,861,145
Cash at End of Year	$ 5,234,953	$ 27,040,325

NATURE OF OPERATIONS

NATURE OF OPERATIONS	12 Months Ended
	Dec. 31, 2015
NATURE OF OPERATIONS
NATURE OF OPERATIONS	NOTE 1—NATURE OF OPERATIONS Business Dipexium Pharmaceuticals, Inc. (the "Company"), a Delaware corporation, is a late stage pharmaceutical company focused on the development and commercialization of Locilex® (pexiganan cream 0.8%). The Company was formed on January 14, 2010. On March 12, 2014, the Company completed a corporate conversion from a limited liability company to a corporation in conjunction with an initial public offering ("IPO") of common stock. As a result of the corporate conversion, holders of the Class A Membership Interests and warrants in Dipexium Pharmaceuticals, LLC, became holders of common stock and warrants of Dipexium Pharmaceuticals, Inc. The Company has experienced net losses and negative cash flows from operations since inception and expects these conditions to continue for the foreseeable future. The Company has needed to raise capital from sales of its securities to sustain operations. In March 2014, the Company completed an IPO of common stock with proceeds, net of issuance costs, of approximately $34.5 million. In June 2015, the Company completed an additional public offering of common stock with net proceeds of approximately $19.7 million. As of December 31, 2015, the Company had cash and short-term investments totaling approximately $32.2 million. Based on the Company's projected expenditures for 2016 and 2017, management currently believes that its current cash balances should be sufficient to fund the Company's operations through 2017. However, if the Company's assumptions underlying its estimated expenses prove to be wrong, it may have to raise additional capital sooner than anticipated. There can be no assurance that the Company's research and development will be successfully completed or that any Company product will be approved or commercially viable. The Company is subject to risks common to companies in the biopharmaceutical industry including, but not limited to, dependence on collaborative arrangements, development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, development of sales and marketing infrastructure and compliance with Food and Drug Administration ("FDA") and other governmental regulations and approval requirements.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity 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 at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Cash, Cash Equivalents, and Short-Term Investments The Company considers all highly-liquid instruments purchased with a maturity of three months or less to be cash equivalents. Instruments with maturities greater than three months, but less than twelve months are included in short-term investments. The Company purchases United States Treasury bills with maturities ranging from six to twelve months which are classified as being held to maturity and are carried at amortized cost. Securities classified as held to maturity securities are those securities that management has the intent and ability to hold to maturity. The Company maintains its cash balance in one financial institution. The balance is insured up to the maximum allowable by the Federal Deposit Insurance Company ("FDIC"). The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant risk of loss on cash. At times, the cash balance may exceed the maximum limit of the FDIC. Guaranteed Payments to Members Guaranteed payments to members of the Company prior to the March 2014 corporate conversion, that were designated to represent reasonable compensation for services rendered, were accounted for as Company expenses rather than an allocation of the Company's net income. Research and Development In accordance with Accounting Standards Codification ("ASC") 730, Accounting for Research and Development Costs , the Company expenses research and development costs when incurred. At times, the Company may make cash advances for research and development services. These amounts are capitalized and expensed in the period the service is provided. The Company incurred net research and development expenses in the amounts of $11,286,236 and $8,898,280 for the years ended December 31, 2015 and 2014, respectively. Although the Company manages the conduct of its clinical trials, it relies on third parties to conduct its clinical and preclinical studies and to provide services, including data management, statistical analysis and electronic compilation for clinical trials, as well as for the manufacture of clinical trial supplies. At the end of each reporting period, the Company compares the payments made to each service provider to the estimated progress towards completion of the related project. Factors that are considered in preparing these estimates include the number of subjects enrolled in studies, milestones achieved and other criteria related to the efforts of the vendors. These estimates are subject to change as additional information becomes available. Depending on the timing of payments to vendors and estimated services provided, the Company records net prepaid or accrued expenses related to these costs. Share-Based Compensation The Company accounts for the cost of services performed by officers and directors received in exchange for an award of Company membership interests, common stock, or stock options, based on the grant-date fair value of the award. In accordance with ASC 718, Stock Compensation , the Company recognizes compensation expense, net of estimated forfeitures, on a straight-line basis over the service period. Share-Based Payments to Vendors The Company accounts for the cost of services performed by vendors in exchange for an award of Company membership interests or common stock based on the grant-date fair value of the award or fair value of the services rendered, whichever is more readily determinable and adjusted to fair value at each reporting date. Such fair value is measured as of the earlier of the date the other party becomes committed to provide goods or services or the date performance by the other party is complete. The Company recognizes the expense in the same period and in the same manner as if the Company had paid cash for the services. Income Taxes Prior to the Company's corporate conversion in March 2014, the Company was organized as a limited liability company. As such, the Company was not a tax paying entity for Federal income tax purposes and, therefore, no income tax expense had been recorded in the financial statements. Income or loss of the Company was passed through to members for inclusion in their respective income tax returns. Subsequent to the corporate conversion in March 2014, the Company became a taxable entity. As such, the Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities and the expected benefits of net operating loss carryforwards. The impact of changes in tax rates and laws on deferred taxes, if any, applied during the years in which temporary differences are expected to be settled, is reflected in the financial statements in the period of enactment. The measurement of deferred tax assets is reduced, if necessary, if, based on weight of the evidence, it is more likely than not that some, or all, of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that such tax rate changes are enacted. The Company had no material amounts recorded for uncertain tax positions, interest or penalties in the accompanying financial statements. The Company currently estimates an annual effective tax rate of 0% as the Company incurred losses for the years ended December 31, 2015and 2014 for both financial statement and tax purposes. Therefore, no Federal or state income tax expense has been recorded in the financial statements. Based on the Company's history of generating operating losses and its anticipation of operating losses continuing in the foreseeable future, the Company has determined that it is more likely than not that the tax benefits from these net operating losses would not be realized and a full valuation allowance against all deferred tax assets has been recorded at December 31, 2015 and 2014, respectively. In the event the Company becomes profitable for a period of two or more years, with future expectations at that time of profitability for future years prior to any significant change in its equity capitalization, the Company would have an opportunity to realize benefit from the deferred tax asset at such time in the future. Fair value of financial instruments The carrying amount of certain of the Company's financial instruments, including cash and accounts payable, is shown at cost, which approximates fair value. Short-term investments with maturities ranging from six to twelve months are classified as being held to maturity and are carried at amortized cost. The age of gross unrealized gains and the fair value of related securities at December 31, 2015 were as follows: Total (maturities within 12 months) Cost Unrealized Gain Fair Value Held to Maturity: Debt Securities: United States Government sponsored bonds $ $ $ For the year ended December 31, 2015, the amount of total amortized interest income was $20,621. The carrying value of $26,977,362 as of December 31, 2015, is equal to the amortized cost plus the amortized interest income of $19,148 on the remaining bonds held at December 31, 2015.

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	12 Months Ended
	Dec. 31, 2015
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	NOTE 3—ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses at December 31, 2015 and 2014 are as follows: December 31, 2015 December 31, 2014 Accrued compensation expense $ $ Accrued research and development Accrued professional fees Other accounts payable and accrued expenses ​ ​ ​ ​ ​ ​ ​ ​ Totals $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

ISSUANCE OF MEMBERSHIP INTEREST

ISSUANCE OF MEMBERSHIP INTERESTS and COMMON STOCK	12 Months Ended
	Dec. 31, 2015
ISSUANCE OF MEMBERSHIP INTERESTS and COMMON STOCK
ISSUANCE OF MEMBERSHIP INTERESTS and COMMON STOCK	NOTE 4—ISSUANCE OF MEMBERSHIP INTERESTS and COMMON STOCK On March 18, 2014, the Company completed an IPO issuing 3,162,500 shares of common stock at a price of $12 per share, resulting in net proceeds of $34,455,669 after deducting underwriting discounts of $2,656,500 and offering costs $837,831. The then outstanding Class A Membership Interests were converted to shares of common stock using a conversion ratio of 7 to 1, resulting in the conversion of 767,911 Class A Membership Interests into an aggregate of 5,375,377 shares of common stock. On June 30, 2015, the Company completed a stock offering issuing 1,702,000 shares of common stock at a price of $12.50 per share, resulting in net proceeds of approximately $19.7 million after deducting underwriting discounts of $1.3 million and offering costs of approximately $0.3 million.

SHARE-BASED COMPENSATION and ST

SHARE-BASED COMPENSATION and STOCK OPTIONS	12 Months Ended
	Dec. 31, 2015
SHARE-BASED COMPENSATION and STOCK OPTIONS
SHARE-BASED COMPENSATION and STOCK OPTIONS	NOTE 5—SHARE-BASED COMPENSATION and STOCK OPTIONS Prior to the corporate conversion in March 2014, the Company granted awards of restricted Class A Membership Interests to board members in exchange for services. These membership interests awards were originally scheduled to vest over a period of either 3 or 4 years, with the first year beginning on the date the member joined the board. In each case, these membership interests involved accelerated vesting upon a change of control or other business combination. The fair value of the membership interests granted was equal to the per-membership interest value of the most recent private placement ($50 per membership interest). Total compensation expense in the amount of $100,000 and $125,000 has been recognized as director fees for the years ended December 31, 2015 and 2014, respectively. The following table summarizes the non-vested Class A Membership Interests at December 31, 2015 giving effect to the corporate conversion and the associated activity: Class A Membership Interests converted to Common Stock 7:1 ratio Nonvested at January 1, 2014 Granted — Forfeited ) Vested ) ​ ​ ​ ​ ​ Nonvested at December 31, 2014 Granted — Forfeited — Vested ) ​ ​ ​ ​ ​ Nonvested at December 31, 2015 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ In December 2013, 1,000 Membership Interests were issued to a member of the board of directors and vested in February 2014. As of December 31, 2015, there was $120,833 of total unrecognized compensation cost related to these awards. That cost is expected to be recognized over a weighted average period of 1.25 years. In November 2013, the board of directors adopted the 2013 Equity Incentive Plan. The plan became effective as of the completion of the corporate conversion and the closing of the IPO. The 2013 Equity Incentive Plan currently reserves 2,141,169 common shares available for issuance. The purpose of the plan is to attract and retain directors, officers, and employees whose services are considered valuable to the Company. In March 2014, effective at the closing of the Company's IPO, the Company granted stock options to purchase 853,787 common shares (10% of the common stock outstanding) to its four executives. The options were issued pursuant to the 2013 Equity Incentive Plan at an exercise price of $13.93 and vest over thirty-six (36) equal monthly installments. In April 2014, a new employee received 7,500 stock options at an exercise price of $10.46 vesting over a three (3) year period. In January 2015, the Company granted stock options to purchase 251,000 common shares to its five employees, outside directors, and certain non-employee consultants. The options were issued pursuant to the 2013 Equity Incentive Plan at an exercise price of $11.35, with one-half of the options vesting upon issuance and the balance vesting evenly over the subsequent 24 months. A portion of the January stock option grant, 35,000 options, was granted to non-employees for services rendered. As such, the Company expensed $353,150, the entire portion of those non-employee grants, at the grant date. Compensation expense associated with these awards is recognized over the vesting period based on the fair value of the option at the grant date determined based on the Black-Scholes model. Option valuation models require the input of highly subjective assumptions including the expected 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 is no public market for the Company's stock options and very little historical experience with the Company's stock, similar public companies were used for comparison and expectations as to the price volatility assumptions required for fair value computation using the Black-Scholes methodology. The Company determined the fair value of the option awards using the Black-Scholes option pricing model and the following weighted average assumptions: Year Ended December 31, 2015 Year Ended December 31, 2014 Expected term 5.65 years 4.3 years Volatility Dividend yield Risk free interest rate ASC 718 requires stock compensation expense to be recorded net of estimated forfeitures. The Company currently estimates there will be no forfeitures of options. A summary of the Company's stock option activity is as follows: Number of Options Weighted Average Exercise Price Outstanding at January 1, 2014 — Granted $ Forfeited — ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2014 $ Granted $ Forfeited — ​ ​ ​ ​ ​ ​ ​ ​ Outstanding and expected to vest at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Compensation expense relating to options for the years ended December 31, 2015 and 2014 was $3,175,908 and $1,322,479, respectively. The total compensation expense not yet recognized as of December 31, 2015 was $2,473,027. The weighted average vesting period over which the total compensation expense will be recorded related to unvested options not yet recognized as of December 31, 2015 was approximately 1.2 years. The weighted average grant date fair values were $7.61 and $5.88 for 2015 and 2014, respectively. The intrinsic value of the stock options was $0 as of December 31, 2015 and 2014, with a remaining weighted average contractual life of 5.4 years and 5.74 years as of December 31, 2015 and 2014, respectively. Total options excercisable at December 31, 2015 were 657,314.

SHARE-BASED PAYMENTS TO VENDORS

SHARE-BASED PAYMENTS TO VENDORS	12 Months Ended
	Dec. 31, 2015
SHARE-BASED PAYMENTS TO VENDORS
SHARE-BASED PAYMENTS TO VENDORS	NOTE 6—SHARE-BASED PAYMENTS TO VENDORS In January 2014, the Company entered into a Product Development Agreement with RRD International, LLC ("RRD"), pursuant to which RRD provides certain strategic product development services to the Company during the term of the agreement which was calendar year 2014. These product development services include the management of the Company's ongoing Phase 3 clinical trials, developing, planning and execution of a fully integrated product development strategy and implementation of that strategy either directly or with third party vendors. As consideration for services rendered, the Company agreed to pay RRD partially in cash and by issuing 7,604 of the Company's Class A Membership Interests. The Company expensed the fair value of the Class A Membership Interests, $50 per Class A Membership Interest, based on the most recent private placement. In January 2015, the Company entered into a new amendment to the Product Development Agreement with RRD dated January 2014, pursuant to which RRD will continue to provide certain strategic product development services to the Company for an additional six-month term. As consideration for services rendered, the Company has agreed to pay RRD a total of $600,000, consisting of $450,000 in cash and $150,000 in restricted shares of the Company's common stock (12,346 shares). The Company recorded research and development expense relating to this six-month agreement of $608,495, including the cash payments and stock issuance. In July 2015, the Company entered into two new amendments to the Product Development Agreement with RRD dated January 2014, pursuant to which RRD will continue to provide certain strategic product development services to the Company for an additional six-month term. These services include management of the Company's ongoing Phase 3 clinical trials, developing, planning, and execution of a fully integrated product development strategy and implementation of that strategy either directly or with third party vendors. The services also include activities to support the initiation and the preparation of the New Drug Application ("NDA") Amendment. As consideration for the services rendered, the Company has agreed to pay RRD approximately $1.7 million, consisting of approximately $1.27 million in cash and approximately $423,000 in restricted common stock (31,607 shares). Terms of the services to be provided after December 2015, if any, will be negotiated at a later date. The Company recognizes the costs incurred in connection with this agreement as research and development expenses as services are rendered. The Company recorded research and development expense relating to this agreement of $1,686,965, including cash and stock issuance, for the year ended December 31, 2015. In January 2016, the Company entered into two new amendments to the Product Development Agreement with RRD dated January 2014, pursuant to which RRD will continue to provide certain strategic product development services to the Company for an additional six-month term.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2015
INCOME TAXES
INCOME TAXES	NOTE 7—INCOME TAXES The Company has $25.5 million of net operating loss carryforwards and $1.2 million of research tax credit carryforwards as of December 31, 2015. The net operating loss carryforwards and research tax credit carryforwards begin to expire in 2034 and will be utilized for tax purposes at such time the Company generates taxable income. The utilization of these net operating loss carryforwards may also be limited to the extent the Company has certain ownership changes pursuant to section 382 of the Internal Revenue Code. The components of the net deferred income tax asset at December 31, 2015 and 2014 are as follows: 2015 2014 Deferred tax assets: Net operating loss carryforwards $ $ Share-based compensation Research and development credit carryforwards ​ ​ ​ ​ ​ ​ ​ ​ Gross deferred tax assets Less valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax asset $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ In assessing the realizability of deferred tax assets, the Company considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences representing net future deductible amounts become deductible. After consideration of all the evidence, both positive and negative, the Company has recorded a full valuation allowance against their net deferred tax assets at December 31, 2015 because the Company has determine that it is more-likely-than-not that these assets will not be fully realized. The Company reserves 100% of the deferred tax asset pursuant to applicable GAAP accounting rules. In the event the Company becomes profitable for a period of two or more years, with future expectations at that time of profitability for future years prior to any significant change in its equity capitalization, the Company would have an opportunity to realize benefit from the deferred tax asset at such time in the future. The Company did not have unrecognized tax benefits as of December 31, 2015, and does not expect this to change significantly over the next twelve months. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of December 31, 2015, the Company has not accrued interest or penalties related to any uncertain tax positions. A reconciliation of income tax expense (benefit) at the statutory Federal income tax rate and income taxes as reflected in the financial statements for both years ending December 31, 2015 and 2014 is as follows: Federal income tax expense at statutory rate )% State income tax, net of federal benefit — Permanent differences Change in valuation allowance ​ ​ ​ ​ ​ Effective income tax rate — % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company has generated research credits but has not conducted a study to document the qualified activities. This study may result in an adjustment to research and development credit carryforwards; however, until a study is completed and any adjustment is known, no amounts are being presented as an uncertain tax position for these years. A full valuation allowance has been provided against research and development credits and, if an adjustment is required, this adjustment to the deferred tax asset established for the research and development credit carryforwards would be offset by an adjustment to the valuation allowance. The Company files income tax returns in the U.S. Federal jurisdiction, and various state and local jurisdictions.

LEASE OF OFFICE SPACE

LEASE OF OFFICE SPACE	12 Months Ended
	Dec. 31, 2015
LEASE OF OFFICE SPACE
LEASE OF OFFICE SPACE	NOTE 8—LEASE OF OFFICE SPACE Effective May 2014, the Company entered into a sublease agreement for office space with current monthly payments of $13,098. The term of the sublease ends on March 30, 2016 with inflationary escalations in 2015 and the first three months of 2016. Total minimum sublease payments for the remaining term of the sublease from December 31, 2015 to March 30, 2016 are $39,294. In January 2016, the Company entered into a lease for office space commencing in March 2016 with current monthly payments of $18,857 subject to inflationary escalations and adjustments thereafter. The term of the lease is for five years and five months with total minimum lease payments of approximately $1.28 million. The future minimum lease payments under this lease are as follows: Year ending December 31: 2016 $ 2017 $ 2018 $ 2019 $ 2020 $ Thereafter $ ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

LEGAL MATTERS

LEGAL MATTERS	12 Months Ended
	Dec. 31, 2015
LEGAL MATTERS
LEGAL MATTERS	NOTE 9—LEGAL MATTERS The Company and its two original executives were three of some 30 defendants in a lawsuit filed by a former stockholder of Genaera Corporation, which was the predecessor of the Genaera Liquidating Trust, the party from which the Company purchased the worldwide rights to pexiganan, the active ingredient of the Product Locilex® on April 8, 2010. The complaint was filed on June 8, 2012 in the United States District Court for the Eastern District of Pennsylvania (Civil Action No. 12-3265) by Alan W. Schmidt, individually and on behalf of former Genaera Corporation shareholders. Among others, the suit was filed against the Company, as well as John A. Skolas and Argyce, LLC, who were responsible for the administration of the Trust and who sold pexiganan to the Company via a public auction. The defendants listed in the complaint included several individuals and companies formerly associated with Genaera Corporation, the Trust and/or Argyce, LLC. Also included in the defendant group were several other pharmaceutical companies that were involved in acquiring the former drug-related assets of the Genaera Corporation. The complaint alleged, among other things, the Company and its two executives aided and abetted a breach of fiduciary duty alleged to have been committed by the former director and officers of Genaera Corporation before it was approved for dissolution by its shareholders and also Argyce, LLC, the trustee of the Liquidating Trust. Plaintiff claims that the Company, and its executives, aided and abetted a breach of the duties of the board of directors and the trustee under common law and under a certain trust agreement allegedly signed between Argyce, LLC, as the trustee, and the Liquidating Trust. With regard to the claims made against the Company and two executives, the plaintiff alleged, in pertinent part, that the Company's acquisition of the pexiganan rights was for alleged inadequate consideration, and that the Company and its management aided and abetted a breach of fiduciary duty by the Genaera Corporation defendants who were formerly associated with Genaera Corporation and/or the Trust. The Company and its two executives filed a motion to dismiss the complaint within the prescribed time period. All of the other defendants in this litigation also filed motions to dismiss, and a court order by the Federal District Court granted each and every motion to dismiss, with prejudice, without leave to refile, on August 12, 2013 based on the argument that Plaintiff's claims were time barred. A subsequent motion to reconsider such dismissal was denied by the Federal District Court. Plaintiff appealed the dismissal to the United States Third Circuit Court of Appeals seeking reversal of the dismissal and the Third Circuit Court granted Plaintiff's appeal. On October 17, 2014, the Third Circuit Appellate Court, in a 2-1 decision with a strong dissenting opinion, reversed the trial court's dismissal of Plaintiff's claims based on the expiration of the applicable statutes of limitation. In a 2-1 decision, the Third Circuit held that more information was necessary to determine when Plaintiff should have been on notice of his claims to determine the applicability of the discovery rule, which could serve to extend the time frame in which Plaintiff could bring his claims. Due to the strong dissent, all Defendants filed the necessary documents requesting a petition for rehearing en banc, by the majority of the Third Circuit justices who are in active service. The Third Circuit denied the request for en banc hearing and remanded this case to District Court. Upon remand to the Federal District Court, all Defendants moved to dismiss the complaint for reasons other than being time barred. The Company and the executives moved for dismissal based on Plaintiff's inability to make a case for aiding and abetting a breach of fiduciary duty because there was no underlying breach and such an aiding and abetting claim requires an element of knowing participation in the fiduciary breach which cannot be established by Plaintiff. The District Court held a hearing on this in September 2015 and the District Court delivered an Order on November 10, 2015 pursuant to which the District Court granted the Motion to Dismiss filed by each and every defendant including the Company and its executives. In December 2015, Plaintiff appealed the Federal District Court's decision to the Third Circuit Appellate Court and the Company anticipates a decision on whether to grant Plaintiff's appeal by the Third Circuit Appellate Court in 2016. The Company will continue to vigorously defend against Plaintiff's claims on the factual record, which it believes will prove that the Company is not liable to the Plaintiff in any regard.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2015
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 10—RELATED PARTY TRANSACTIONS The individual employed as the Company's Vice President, Finance and Corporate Development as of the closing of the initial public offering, is the owner of Aumoe Partners, LLC ("Aumoe"), which was engaged in January 2012 to perform certain financial advisory services. The Company incurred $0 and $22,500 in fees to Aumoe for the years ended December 31, 2015 and 2014, respectively, which were recorded in general and administrative expenses. The Company engaged the consulting services of Drug Development Advisors ("DDA") pursuant to which DDA performed detailed analysis on a number of the Company's preclinical studies in connection with the NDA process. DDA is owned and operated by a member of the Company's board of directors. The Company incurred expenses for services provided by DDA in the amounts of $24,550 and $30,734 for the years ended December 31, 2015 and 2014, respectively, which were recorded in research and development expenses.

NET LOSS PER SHARE

NET LOSS PER SHARE	12 Months Ended
	Dec. 31, 2015
NET LOSS PER SHARE
NET LOSS PER SHARE	NOTE 11—NET LOSS PER SHARE Basic and diluted net loss per common share for the years ended December 31, 2015 and 2014, respectively, were determined by dividing net loss by the weighted average common shares outstanding during the period. The Company's potentially dilutive shares, which include 1,112,287 of stock options, 28,000 unvested common shares, and 24,500 warrants, have not been included in the computation of diluted net loss per share for all periods as the result would be antidilutive. On March 12, 2014, the Company completed a corporate conversion from a limited liability company to a corporation (the "Conversion"). Accordingly, the outstanding Class A Membership Interests were converted to shares of common stock using a conversion ratio of 7 to 1, resulting in the conversion of its 767,911 Class A Membership Interests into an aggregate of 5,375,377 shares of common stock. The effects of this Conversion on the Company's net loss per share have been reflected for all periods presented retroactively.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	12 Months Ended
	Dec. 31, 2015
RECENT ACCOUNTING PRONOUNCEMENTS
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 12—RECENT ACCOUNTING PRONOUNCEMENTS In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2014-15, Presentation of Financial Statements—Going Concern , which requires management of an entity to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued. This update will become effective beginning January 1, 2017, with early adoption permitted. The Company is currently evaluating the provisions of this amendment. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740), which requires that all deferred income tax assets and liabilities be presented as noncurrent in the statement of financial position. The pronoucement is effective for financial statements issued for annual periods beginning after December 15, 2018 with early application permitted. The adoption of this guidance is not expected to have a material impact on the Company's financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which includes amendments that require lessees to recognize a lease liability for all long-term leases (lease terms more than 12 months) at the commencement date. The lease liability is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis. The amendments also require lessees to recognize a right-of-use asset for all long-term leases. The right-of-use asset is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset to not recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. The amendments in this ASU require qualitative disclosures along with specific quantitative disclosures. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early application is permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. The Company is currently evaluating the provisions of this amendment.

SUMMARY OF SIGNIFICANT ACCOUN19

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates	Use of Estimates The preparation of financial statements in conformity 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 at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.
Cash, Cash Equivalents, and Short-Term Investments	Cash, Cash Equivalents, and Short-Term Investments The Company considers all highly-liquid instruments purchased with a maturity of three months or less to be cash equivalents. Instruments with maturities greater than three months, but less than twelve months are included in short-term investments. The Company purchases United States Treasury bills with maturities ranging from six to twelve months which are classified as being held to maturity and are carried at amortized cost. Securities classified as held to maturity securities are those securities that management has the intent and ability to hold to maturity. The Company maintains its cash balance in one financial institution. The balance is insured up to the maximum allowable by the Federal Deposit Insurance Company ("FDIC"). The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant risk of loss on cash. At times, the cash balance may exceed the maximum limit of the FDIC.
Guaranteed Payments to Members	Guaranteed Payments to Members Guaranteed payments to members of the Company prior to the March 2014 corporate conversion, that were designated to represent reasonable compensation for services rendered, were accounted for as Company expenses rather than an allocation of the Company's net income.
Research and Development	Research and Development In accordance with Accounting Standards Codification ("ASC") 730, Accounting for Research and Development Costs , the Company expenses research and development costs when incurred. At times, the Company may make cash advances for research and development services. These amounts are capitalized and expensed in the period the service is provided. The Company incurred net research and development expenses in the amounts of $11,286,236 and $8,898,280 for the years ended December 31, 2015 and 2014, respectively. Although the Company manages the conduct of its clinical trials, it relies on third parties to conduct its clinical and preclinical studies and to provide services, including data management, statistical analysis and electronic compilation for clinical trials, as well as for the manufacture of clinical trial supplies. At the end of each reporting period, the Company compares the payments made to each service provider to the estimated progress towards completion of the related project. Factors that are considered in preparing these estimates include the number of subjects enrolled in studies, milestones achieved and other criteria related to the efforts of the vendors. These estimates are subject to change as additional information becomes available. Depending on the timing of payments to vendors and estimated services provided, the Company records net prepaid or accrued expenses related to these costs.
Share-Based Compensation	Share-Based Compensation The Company accounts for the cost of services performed by officers and directors received in exchange for an award of Company membership interests, common stock, or stock options, based on the grant-date fair value of the award. In accordance with ASC 718, Stock Compensation , the Company recognizes compensation expense, net of estimated forfeitures, on a straight-line basis over the service period.
Share-Based Payments to Vendors	Share-Based Payments to Vendors The Company accounts for the cost of services performed by vendors in exchange for an award of Company membership interests or common stock based on the grant-date fair value of the award or fair value of the services rendered, whichever is more readily determinable and adjusted to fair value at each reporting date. Such fair value is measured as of the earlier of the date the other party becomes committed to provide goods or services or the date performance by the other party is complete. The Company recognizes the expense in the same period and in the same manner as if the Company had paid cash for the services.
Income Taxes	Income Taxes Prior to the Company's corporate conversion in March 2014, the Company was organized as a limited liability company. As such, the Company was not a tax paying entity for Federal income tax purposes and, therefore, no income tax expense had been recorded in the financial statements. Income or loss of the Company was passed through to members for inclusion in their respective income tax returns. Subsequent to the corporate conversion in March 2014, the Company became a taxable entity. As such, the Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities and the expected benefits of net operating loss carryforwards. The impact of changes in tax rates and laws on deferred taxes, if any, applied during the years in which temporary differences are expected to be settled, is reflected in the financial statements in the period of enactment. The measurement of deferred tax assets is reduced, if necessary, if, based on weight of the evidence, it is more likely than not that some, or all, of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that such tax rate changes are enacted. The Company had no material amounts recorded for uncertain tax positions, interest or penalties in the accompanying financial statements. The Company currently estimates an annual effective tax rate of 0% as the Company incurred losses for the years ended December 31, 2015and 2014 for both financial statement and tax purposes. Therefore, no Federal or state income tax expense has been recorded in the financial statements. Based on the Company's history of generating operating losses and its anticipation of operating losses continuing in the foreseeable future, the Company has determined that it is more likely than not that the tax benefits from these net operating losses would not be realized and a full valuation allowance against all deferred tax assets has been recorded at December 31, 2015 and 2014, respectively. In the event the Company becomes profitable for a period of two or more years, with future expectations at that time of profitability for future years prior to any significant change in its equity capitalization, the Company would have an opportunity to realize benefit from the deferred tax asset at such time in the future.
Fair Value of Financial Instruments	Fair value of financial instruments The carrying amount of certain of the Company's financial instruments, including cash and accounts payable, is shown at cost, which approximates fair value. Short-term investments with maturities ranging from six to twelve months are classified as being held to maturity and are carried at amortized cost. The age of gross unrealized gains and the fair value of related securities at December 31, 2015 were as follows: Total (maturities within 12 months) Cost Unrealized Gain Fair Value Held to Maturity: Debt Securities: United States Government sponsored bonds $ $ $ For the year ended December 31, 2015, the amount of total amortized interest income was $20,621. The carrying value of $26,977,362 as of December 31, 2015, is equal to the amortized cost plus the amortized interest income of $19,148 on the remaining bonds held at December 31, 2015.

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Gross unrealized gains and fair value of related securities	Total (maturities within 12 months) Cost Unrealized Gain Fair Value Held to Maturity: Debt Securities: United States Government sponsored bonds $ $ $

ACCOUNTS PAYABLE AND ACCRUED 21

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2015
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Schedule of accounts payable and accrued expenses	December 31, 2015 December 31, 2014 Accrued compensation expense $ $ Accrued research and development Accrued professional fees Other accounts payable and accrued expenses ​ ​ ​ ​ ​ ​ ​ ​ Totals $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

SHARE-BASED COMPENSATION and 22

SHARE-BASED COMPENSATION and STOCK OPTIONS (Tables)	12 Months Ended
	Dec. 31, 2015
SHARE-BASED COMPENSATION and STOCK OPTIONS
Summary of the non-vested Class A Membership Interests which were converted to Common Stock at a conversion ratio of seven to one, and the associated activity	The following table summarizes the non-vested Class A Membership Interests at December 31, 2015 giving effect to the corporate conversion and the associated activity: Class A Membership Interests converted to Common Stock 7:1 ratio Nonvested at January 1, 2014 Granted — Forfeited ) Vested ) ​ ​ ​ ​ ​ Nonvested at December 31, 2014 Granted — Forfeited — Vested ) ​ ​ ​ ​ ​ Nonvested at December 31, 2015
Schedule of weighted average assumptions used in determining the fair value of the option awards using the Black-Scholes option pricing model	Year Ended December 31, 2015 Year Ended December 31, 2014 Expected term 5.65 years 4.3 years Volatility Dividend yield Risk free interest rate
Summary of stock option activity	Number of Options Weighted Average Exercise Price Outstanding at January 1, 2014 — Granted $ Forfeited — ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2014 $ Granted $ Forfeited — ​ ​ ​ ​ ​ ​ ​ ​ Outstanding and expected to vest at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2015
INCOME TAXES
Components of net deferred income tax assets	The components of the net deferred income tax asset at December 31, 2015 and 2014 are as follows: 2015 2014 Deferred tax assets: Net operating loss carryforwards $ $ Share-based compensation Research and development credit carryforwards ​ ​ ​ ​ ​ ​ ​ ​ Gross deferred tax assets Less valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax asset $ — $ — ​ ​ ​ ​ ​ ​ ​ ​
Reconciliation of income tax expense (benefit) at the statutory federal income tax rate	A reconciliation of income tax expense (benefit) at the statutory Federal income tax rate and income taxes as reflected in the financial statements for both years ending December 31, 2015 and 2014 is as follows: Federal income tax expense at statutory rate )% State income tax, net of federal benefit — Permanent differences Change in valuation allowance ​ ​ ​ ​ ​ Effective income tax rate — % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

LEASE OF OFFICE SPACE (Tables)

LEASE OF OFFICE SPACE (Tables)	12 Months Ended
	Dec. 31, 2015
LEASE OF OFFICE SPACE
Future minimum lease payments	Year ending December 31: 2016 $ 2017 $ 2018 $ 2019 $ 2020 $ Thereafter $ ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

NATURE OF OPERATIONS (Details)

NATURE OF OPERATIONS (Details) - USD ($)	Jun. 30, 2015	Mar. 18, 2014	Jun. 30, 2015	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
NATURE OF OPERATIONS
Proceeds from initial public offering of common stock, net of transaction costs	$ 19,700,000	$ 34,455,669	$ 19,700,000	$ 34,500,000	$ 19,743,885	$ 34,455,669
Cash, Cash Equivalents, and Short-term Investments					$ 32,200,000

SUMMARY OF SIGNIFICANT ACCOUN26

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)
Concentration of Credit Risk
Number of financial institutions in which the entity maintains its cash balance | item	1
Research and Development
Net research and development expenses	$ 11,286,236	$ 8,898,280
Income Taxes
Income tax expense	$ 0
Estimated annual effective tax rate (as a percent)	0.00%	0.00%
Current federal income tax expense	$ 0
Current state income tax expense	$ 0
Minimum
Concentration of Credit Risk
Maturity period treasury bills	6 months
Maximum
Concentration of Credit Risk
Maturity period treasury bills	12 months

SUMMARY OF SIGNIFICANT ACCOUN27

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - FAIR VALUE (Details)	12 Months Ended
	Dec. 31, 2015USD ($)
Fair Value of Financial Instruments
Carrying value	$ 26,977,362
Interest income amortized	20,621
Interest Income Amortized on Remaining Bonds	19,148
US Government sponsored bonds
Fair Value of Financial Instruments
Amortized Cost	26,958,214
Unrealized Gains	4,646
Fair Value	$ 26,962,860

ACCOUNTS PAYABLE AND ACCRUED 28

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accrued compensation expense	$ 663,404	$ 511,769
Accrued research and development	859,053	641,997
Accrued professional fees	55,787	23,901
Other accounts payable and accrued expenses	28,063	82,931
Total	$ 1,606,307	$ 1,260,598

ISSUANCE OF MEMBERSHIP INTERE29

ISSUANCE OF MEMBERSHIP INTERESTS and COMMON STOCK (Details)	Jun. 30, 2015USD ($)$ / sharesshares	Mar. 18, 2014USD ($)$ / sharesshares	Mar. 12, 2014shares	Jun. 30, 2015USD ($)$ / shares	Mar. 31, 2014USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
ISSUANCE OF MEMBERSHIP INTERESTS and COMMON STOCK
Stock Issued During Period, Shares, New Issues | shares	1,702,000	3,162,500
Share price of common stock (in dollars per share) | $ / shares	$ 12.50	$ 12		$ 12.50
Net proceeds from IPO | $	$ 19,700,000	$ 34,455,669		$ 19,700,000	$ 34,500,000	$ 19,743,885	$ 34,455,669
Underwriting discounts | $	1,300,000	2,656,500
Offering costs | $	$ 300,000	$ 837,831
Conversion ratio		7	7
Membership interests converted into shares of common stock | shares		767,911	767,911
Shares of common stock issued upon conversion of membership interests | shares		5,375,377

SHARE-BASED COMPENSATION and 30

SHARE-BASED COMPENSATION and STOCK OPTIONS - RESTRICTED MEMBERSHIP INTERESTS (Details) - USD ($)	1 Months Ended		12 Months Ended
	Jan. 31, 2015	Dec. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Nov. 30, 2013
Share-based compensation and stock options
Vesting period	24 months
Total compensation expense recorded as director fees	$ 353,150
Additional disclosures
Common shares available for issuance under Equity Incentive Plan					2,141,169
Restricted Class A Membership Interests
Share-based compensation and stock options
Fair value of the membership interests granted (in dollars per share)			$ 50
Total compensation expense recorded as director fees			$ 100,000	$ 125,000
Non-vested Class A Membership interests converted to common stock at a conversion ratio and the associated activity
Nonvested at the beginning of the period (in shares)	42,000		42,000	77,000
Forfeited (in shares)				(21,000)
Vested (in shares)			(14,000)	(14,000)
Nonvested at the end of the period (in shares)		77,000	28,000	42,000
Additional disclosures
Number of Membership Interests issued but not vested		1,000
Total unrecognized compensation cost			$ 120,833
Weighted average period over which total unrecognized compensation cost is expected to be recognized			1 year 3 months
Restricted Class A Membership Interests | Minimum
Share-based compensation and stock options
Vesting period			3 years
Restricted Class A Membership Interests | Maximum
Share-based compensation and stock options
Vesting period			4 years

SHARE-BASED COMPENSATION and 31

SHARE-BASED COMPENSATION and STOCK OPTIONS - STOCK OPTIONS (Details)	1 Months Ended			12 Months Ended
	Jan. 31, 2015USD ($)employee$ / sharesshares	Apr. 30, 2014$ / sharesshares	Mar. 31, 2014item$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares	Apr. 30, 2014$ / shares
Weighted average assumptions used in determining the fair value of the option awards using the Black-Scholes option pricing model
Expected term					4 years 3 months 18 days
Volatility (as a percent)					59.60%
Dividend yield (as a percent)					0.00%
Risk free interest rate (as a percent)					1.23%
Company's stock option activity
Granted (in shares)	251,000
Number of Employees Total | employee	5
Compensation expense | $	$ 353,150
Grant price (in dollars per share) | $ / shares	$ 11.35
Vesting percentage upon issuance	1.00%
Vesting period	24 months
Stock Options
Share-based compensation and stock options
Awards granted as percentage of common stock outstanding			10.00%
Number of executives to whom awards are granted | item			4
Number of equal monthly installments in which awards issued under the 2013 Equity Incentive Plan will vest | item			36
Weighted average assumptions used in determining the fair value of the option awards using the Black-Scholes option pricing model
Expected term				5 years 7 months 24 days
Volatility (as a percent)				62.10%
Dividend yield (as a percent)				0.00%
Risk free interest rate (as a percent)				1.58%
Weighted average grant date fair value (in dollars per share) | $ / shares				$ 7.61	$ 5.88
Company's stock option activity
Outstanding at the beginning of the period(in shares)	861,287	853,787		861,287
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 13.90	$ 13.93		$ 13.90
Granted (in shares)		7,500		251,000	861,287
Outstanding at the end of the period (in shares)			853,787	1,112,287	861,287
Compensation expense | $				$ 3,175,908	$ 1,322,479
Total compensation expense not yet recognized | $					2,473,027
Weighted average vesting period over which the total compensation expense will be recorded				1 year 2 months 12 days
Intrinsic value | $					$ 0	$ 0
Remaining weighted average contractual life				5 years 4 months 24 days	5 years 8 months 27 days
Exercise price (in dollars per share) | $ / shares	$ 13.90	$ 13.93	$ 13.93	$ 13.90	$ 13.90	$ 13.32	$ 10.46
Grant price (in dollars per share) | $ / shares				$ 11.35	$ 13.90
Vesting period		3 years
Options excercisable (in shares)						657,314
Non Employee Member
Company's stock option activity
Granted (in shares)	35,000

SHARE-BASED PAYMENTS TO VENDO32

SHARE-BASED PAYMENTS TO VENDORS (Details) - RRD	1 Months Ended
	Jan. 31, 2016item	Jul. 31, 2015USD ($)itemshares	Jan. 31, 2015USD ($)shares	Jan. 31, 2014$ / sharesshares
Share-based payments to vendors
Membership Interests granted (in units) | shares		31,607	12,346	7,604
Value of recent private placement taken as fair value for the grant of the membership interests (in dollars per share) | $ / shares				$ 50
Consulting expense		$ 423,000	$ 150,000
Term of services	6 months	6 months	6 months
Number Of New Amendments To Product Development Agreement | item	2	2
Business Development		$ 1,700,000	$ 600,000
Cash portion		1,270,000	450,000
Research and Development Expense		$ 1,686,965	$ 608,495

INCOME TAXES (Details)

INCOME TAXES (Details)	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Net operating loss carry-forwards	$ 25,500,000
Research tax credit carryforwards	1,200,000
Income Taxes
Net operating loss carry-forwards	11,353,162	$ 4,797,498
Share-based compensation	2,023,572	588,860
Research and development credit carry-forwards	1,205,464	506,325
Gross deferred tax assets	14,582,198	5,892,683
Less: valuation allowance	$ (14,582,198)	$ (5,892,683)
Percentage of deferred tax asset reserved	100
Effective income tax expense (benefit)
Federal income tax expense at statutory rate	(34.00%)	(34.00%)
Permanent differences	0.10%	0.10%
Change in valuation allowance	33.90%	33.90%
Effective income tax rate	0.00%	0.00%
Uncertain tax position	$ 0
Minimum
Income Taxes
Period of profitability	2 years

LEASE OF OFFICE SPACE (Details)

LEASE OF OFFICE SPACE (Details) - USD ($)	1 Months Ended
	Jan. 31, 2016	May. 31, 2014	Mar. 30, 2016	Dec. 31, 2015
LEASE OF OFFICE SPACE
Term of lease agreement	5 years 5 months
Monthly payments of lease under agreement	$ 18,857	$ 13,098
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2,016				$ 169,713
2,017				231,534
2,018				238,004
2,019				244,658
2,020				251,522
Thereafter				150,347
Total future minimum lease payments			$ 39,294	$ 1,285,778

LEGAL MATTERS (Details)

LEGAL MATTERS (Details) - Genaera Lawsuit	Jun. 08, 2012item
Legal matters
Number of defendants represented by original executives	2
Number of defendants represented by executives and the Company	3
Number of defendants in a lawsuit	30

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Aumoe
Related party transactions
Fees for services rendered by the related party	$ 0	$ 22,500
DDA
Related party transactions
Fees for services rendered by the related party	$ 24,550	$ 30,734

NET LOSS PER SHARE (Details)

NET LOSS PER SHARE (Details)	Mar. 18, 2014shares	Mar. 12, 2014shares	Dec. 31, 2015shares	Dec. 31, 2014shares
Proforma net loss per share
Conversion ratio used to convert Class A Membership Interests on proforma basis to common shares to calculate the weighted average common shares	7	7
Membership interests converted into shares of common stock	767,911	767,911
Shares of common stock issued upon conversion of membership interests		5,375,377
Class A Membership Interests
Proforma net loss per share
Shares of common stock issued upon conversion of membership interests				(767,911)
Stock Options
Proforma net loss per share
Potentially dilutive shares not been included in the computation of diluted net loss per share as the result would be antidilutive			1,112,287
Unvested Common Shares
Proforma net loss per share
Potentially dilutive shares not been included in the computation of diluted net loss per share as the result would be antidilutive			28,000
Warrants
Proforma net loss per share
Potentially dilutive shares not been included in the computation of diluted net loss per share as the result would be antidilutive			24,500