PLx Pharma Winddown (PLXPQ) 10-Q12 Nov 142014 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2014	Nov. 12, 2014
Document and Entity Information	'	'
Entity Registrant Name	'Dipexium Pharmaceuticals, Inc.	'
Entity Central Index Key	'0001497504	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	8,537,877
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'

CONDENSED_BALANCE_SHEETS

CONDENSED BALANCE SHEETS (USD $)	Sep. 30, 2014	Dec. 31, 2013
CURRENT ASSETS	'	'
Cash	$29,892,515	$3,861,145
Prepaid Expenses	133,443	46,094
TOTAL CURRENT ASSETS	30,025,958	3,907,239
OTHER ASSETS	'	'
Security Deposit	49,385	'
Deferred Initial Public Offering costs	'	122,826
TOTAL OTHER ASSETS	49,385	122,826
TOTAL ASSETS	30,075,343	4,030,065
CURRENT LIABILITIES	'	'
Accounts Payable and Accrued Expenses	1,298,923	823,834
TOTAL LIABILITIES	1,298,923	823,834
COMMITMENTS AND CONTINGENCIES	'	'
MEMBERS' AND SHAREHOLDERS' EQUITY	'	'
Members' Equity	'	3,206,231
Common Stock : $.001 par value, 30,000,000 shares authorized, 8,537,877 shares issued and outstanding at September 30, 2014	8,538	'
Additional paid-in capital	47,812,754	'
Accumulated deficit	-19,044,872	'
TOTAL MEMBERS' AND SHAREHOLDERS' EQUITY	28,776,420	3,206,231
TOTAL LIABILITIES AND MEMBERS' AND SHAREHOLDERS' EQUITY	$30,075,343	$4,030,065

CONDENSED_BALANCE_SHEETS_Paren

CONDENSED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
CONDENSED BALANCE SHEETS	'	'
Common Stock, par value (in dollars per share)	$0.00	$0.00
Common Stock, shares authorized	30,000,000	'
Common Stock, shares issued	8,537,877	'
Common Stock, shares outstanding	8,537,877	'

CONDENSED_STATEMENTS_OF_OPERAT

CONDENSED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
CONDENSED STATEMENTS OF OPERATIONS (USD $)	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
OPERATING EXPENSES	'	'	'	'
Research and Development Expenses	$2,529,457	$636,301	$6,939,063	$792,778
General and Administrative Expenses	1,313,697	354,678	3,368,044	967,975
TOTAL OPERATING EXPENSES	3,843,154	990,979	10,307,107	1,760,753
LOSS FROM OPERATIONS	-3,843,154	-990,979	-10,307,107	-1,760,753
NET LOSS	($3,843,154)	($990,979)	($10,307,107)	($1,760,753)
LOSS PER SHARE	'	'	'	'
Basic and diluted net loss per common share/units (in dollars per share)	($0.45)	($0.21)	($1.35)	($0.39)
Weighted average common shares/units outstanding basic and diluted	8,537,877	4,771,911	7,618,540	4,525,713

CONDENSED_STATEMENTS_OF_CASH_F

CONDENSED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONDENSED STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2014	Sep. 30, 2013
Operating Activities:	'	'
Net Loss	($10,307,107)	($1,760,753)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Share Based Compensation	971,615	361,083
Share Based Payments to Vendors	450,012	10,900
Changes In:	'	'
Prepaid Expenses	-87,349	1,035
Security Deposits	-49,385	3,670
Accounts Payable and Accrued Expenses	597,915	47,247
Net Cash Used In Operating Activities	-8,424,299	-1,336,818
Financing Activities:	'	'
Proceeds from issuance of Common Stock, net of issuance costs	34,455,669	'
Proceeds from Private Placement Offerings, net of issuance costs	'	3,661,000
Net Cash Provided By Financing Activities	34,455,669	3,661,000
Net Increase In Cash	26,031,370	2,324,182
Cash at Beginning of Period	3,861,145	1,457,115
Cash at End of Period	$29,892,515	$3,781,297

CONDENSED_STATEMENTS_OF_CHANGE

CONDENSED STATEMENTS OF CHANGES IN MEMBERS' & SHAREHOLDERS' EQUITY (USD $)	Class A Membership Interests	Common Stock	Additional paid-capital	Deficit during Development Stage	Total
Balance (in units) at Dec. 31, 2013	735,588	'	'	'	'
Balance at Dec. 31, 2013	$3,206,231	'	'	'	$3,206,231
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	'	'	'
Initial Public Offering, net of issuance costs	'	3,163	34,452,506	'	34,455,669
Initial Public Offering, net of issuance costs (in shares)	'	3,162,500	'	'	'
Share-Based Compensation	'	'	971,615	'	971,615
Net Loss	'	'	'	-10,307,107	-10,307,107
Balance (in shares) at Sep. 30, 2014	'	8,537,877	'	'	8,537,877
Balance at Sep. 30, 2014	'	$8,538	$47,812,754	($19,044,872)	$28,776,420

NATURE_OF_OPERATIONS

NATURE OF OPERATIONS	9 Months Ended
NATURE OF OPERATIONS	Sep. 30, 2014
NATURE OF OPERATIONS	'
NATURE OF OPERATIONS	'
	NOTE 1 — NATURE OF OPERATIONS

	Business:

	Dipexium Pharmaceuticals, Inc., (the “Company”), a Delaware corporation, formerly Dipexium Pharmaceuticals, LLC, is a biopharmaceutical company addressing the need for new antibiotics to treat infectious diseases. The Company was formed on January 14, 2010. The Company is a late-stage pharmaceutical company focused on the development and commercialization of Locilex® (pexiganan cream 0.8%).

	On March 18, 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 Dipexium Pharmaceuticals, Inc. common stock.

	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 initial public offering of common stock with proceeds, net of issuance costs, of approximately $34.5 million. As of September 30, 2014, the Company had a cash balance of approximately $29.9 million. Based on the Company’s projected expenditures for 2014, management currently believes that its current cash balances should be sufficient to fund the Company’s operations into the second half of 2016. Furthermore, 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 biotechnology 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, and compliance with Food and Drug Administration (“FDA”) and other governmental regulations and approval requirements.

	Unaudited Condensed Interim Financial Data

	The accompanying interim condensed financial statements are unaudited. These unaudited condensed financial statements have been prepared in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all the information and footnotes required by United States Generally Accepted Accounting Principles (“GAAP”) for complete financial statements. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and accompanying notes for the year ended December 31, 2013. The unaudited interim condensed financial statements have been prepared on the same basis as the annual financial statements included in the registration statement and, in the opinion of management, reflect all the adjustments (consisting of normal recurring adjustments) necessary to state fairly the Company’s financial position as of September 30, 2014, the results of operations for the three and nine months ended September 30, 2014 and 2013, and the cash flows for the nine months ended September 30, 2014 and 2013, respectively. The December 31, 2013 balance sheet included herein was derived from the audited financial statements, but may not include all disclosures including notes required by GAAP for complete financial statements.

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Sep. 30, 2014
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.

	Federal 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 losses of the Company was passed through to members for inclusion in their respective income tax returns.

	The Company currently estimates an annual effective tax rate of 0% as the Company incurred losses for the three and nine month periods ended September 30, 2014 and is forecasting additional losses through year end, resulting in an estimated net loss for both financial statement and tax purposes. Therefore, no federal or state income tax expense has been recorded in the financial statements.

	The Company has a history of generating operating losses and anticipates operating losses continuing in the foreseeable future. The Company believes that the tax benefits from these net operating losses will be realized in the future, however, based on the history of operating losses, GAAP rules require a full valuation allowance against all deferred tax assets, which has been recorded. Should the Company’s assessment change, tax benefits associated with the historic net operating loss carryforwards would be available from the time of the corporate conversion to the present.

	Concentration of Credit Risk

	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 amount of $2,529,457 and $636,301 for the three months ended September 30, 2014 and 2013, respectively, and $6,939,063 and $792,778 for the nine months ended September 30, 2014 and 2013, respectively.

	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.

	Deferred Initial Public Offering Costs

	The Company incurred legal and accounting costs relating to its initial public offering. These specific incremental costs directly attributable to the offering of equity securities were capitalized in other noncurrent assets as of December 31, 2013. These costs were subsequently applied against the proceeds of the initial public offering which was consummated in March 2014.

ACCOUNTS_PAYABLE_AND_ACCRUED_E

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	9 Months Ended
	Sep. 30, 2014
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	'
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	'
	NOTE 3 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES

	Accounts payable and accrued expenses at September 30, 2014 and December 31, 2013 were as follows:

		September 30, 2014		December 31, 2013
	Accrued compensation expense	$	350,730	$	247,845
	Accrued research and development	891,770		367,065
	Accrued professional fees	19,225		160,370
	Other accounts payable and accrued expenses	37,198		48,554
	Totals	$	1,298,923	$	823,834

EXECUTIVE_COMPENSATION

EXECUTIVE COMPENSATION	9 Months Ended
EXECUTIVE COMPENSATION	Sep. 30, 2014
EXECUTIVE COMPENSATION	'
EXECUTIVE COMPENSATION	'
	NOTE 4 — EXECUTIVE COMPENSATION

	The Company’s co-founders and original two executives received compensation pursuant to employment agreements effective July 23, 2010 (the “Original Agreements”). The Original Agreements stipulated that the executives would receive a base salary of $252,000 per annum, of which one-half was payable with the issuance of Class A Membership Interests of the Company (then organized as a limited liability company prior to the corporate conversion in March 2014) at the most recent offering price ($50 per Class A Membership Interest in each case), until such time as the Company raised aggregate proceeds of at least $2,000,000. This threshold was reached on March 11, 2011; however, both executives signed temporary waivers until January 2012, at which time the executives revoked one-half of each waiver, and then subsequently reinstated the waiver in full. The Company issued no Class A Membership Interests to these two executives pursuant to the Original Agreements for both of the three month and nine month periods ended September 30, 2014 and 1,680 Class A Membership Interests for the three and nine month periods ended September 30, 2013.

	The Original Agreements also stipulated that the two executives would receive 5 weeks of vacation per annum. Any unused weeks at the end of each year are payable to the executives in cash. Accordingly, compensation expense representing accrued vacation pay from the Original Agreements has been recorded in the amount of $10,176 and $12,923 for the three months ended March 31, 2014 and 2013, respectively, and $183,021 for the cumulative period from January 14, 2010 (inception) to March 31, 2014, which was paid in March 2014.

	The Company currently is managed by four executives including the original two executives, in each case, pursuant to employment agreements effective March 18, 2014. Compensation expense representing accrued vacation pay for all executives has been recorded in the amount of $16,304 and $47,913 for the three and nine month periods ended September 30, 2014, respectively.

ISSUANCE_OF_MEMBERSHIP_INTERES

ISSUANCE OF MEMBERSHIP INTERESTS and COMMON STOCK	9 Months Ended
ISSUANCE OF MEMBERSHIP INTERESTS and COMMON STOCK	Sep. 30, 2014
ISSUANCE OF MEMBERSHIP INTERESTS and COMMON STOCK	'
ISSUANCE OF MEMBERSHIP INTERESTS and COMMON STOCK	'
	NOTE 5 — ISSUANCE OF MEMBERSHIP INTERESTS and COMMON STOCK

	In February 2014, the Company issued an aggregate of 23,719 Class A Membership Interests to investors in its prior financings in exchange for 89,900 outstanding warrants with an exercise price $60 per Class A Membership Interest or $8.57 on a 7 to 1 converted basis. The exchange was effectively a cashless exercise in which 23,719 Class A Membership Interests issued were calculated using an implied intrinsic value of the warrants at $2.93 per share, on a 7 to 1 as converted basis and an estimated issuance price of $11.50 per share. As the warrants and membership interests are both classified as equity instruments, the warrant exercise resulted in an immaterial reclassification within members’ equity.

	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 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.

SHAREBASED_COMPENSATION_and_ST

SHARE-BASED COMPENSATION and STOCK OPTIONS	9 Months Ended
SHARE-BASED COMPENSATION and STOCK OPTIONS	Sep. 30, 2014
SHARE-BASED COMPENSATION and STOCK OPTIONS	'
SHARE-BASED COMPENSATION and STOCK OPTIONS	'
	NOTE 6 — SHARE-BASED COMPENSATION and STOCK OPTIONS

	The Company granted restricted Class A Membership Interests awards to board members in exchange for services. These membership interests awards were originally scheduled to vest over a period of 3 or 4 years, with the first year beginning on the date the member joined the board. Accelerated vesting will occur 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). In December 2013, the Company received resignation letters from six members of the board of directors and the continuing members of the board of directors authorized accelerated vesting of their Class A Membership Interests. The Company issued 20,333 Class A Membership Interests in connection with both the accelerated and annual vesting of the awards and recorded compensation expense in the amount of $693,750 associated with this accelerated vesting. Total compensation expense in the amount of $25,000 and $116,667 has been recorded as director fees for the three months ended September 30, 2014 and 2013, respectively, and $100,000 and $277,083 for the nine months ended September 30, 2014 and 2013, respectively.

	In July 2014, a member of the board of directors resigned, resulting in the forfeiture of 21,000 shares of restricted common stock. The resignation and forfeiture resulted in the Company reducing previously recorded compensation expense by $29,167 for the three and nine months ended September 30, 2014.

	The following table summarizes the non-vested Class A Membership Interests at September 30, 2014 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, 2013	111,986
	Granted	112,000
	Vested	(146,986	)
	Nonvested at December 31, 2013	77,000
	Granted	—
	Forfeited	(21,000	)
	Vested	(14,000	)
	Nonvested at September 30, 2014	42,000

	In December 2013, 1,000 Membership Interests were issued to a member of board of directors which did not vest until February 2014.

	As of September 30, 2014, there was $245,833 of total unrecognized compensation cost related to these awards. That cost is expected to be recognized over a weighted average period of 2.5 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 Equity Incentive Plan reserves an aggregate number of common shares equal to 20% of the issued and outstanding common stock. 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 four of its 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, an employee received 7,500 stock options at an exercise price of $10.46 vesting over a three (3) year period. 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 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:

		Nine Months Ended
		September 30, 2014
	Expected term	4.3 years
	Volatility	59.6	%
	Dividend yield	0	%
	Risk free interest rate	1.23	%

	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:

		Nine Months Ended		Weighted Average
		September 30, 2014		Exercise Price
	Outstanding at the beginning of the period	—
	Granted	861,287		$	13.90
	Forfeited	—
	Outstanding at the end of the period	861,287		$	13.90

	Compensation expense relating to options for the three months ended September 30, 2014 and 2013 was $421,697 and $0, respectively, and $900,782 and $0 for the nine months ended September 30, 2014 and 2013, respectively. The total compensation expense not yet recognized as of September 30, 2014 was $4,159,580. The weighted average vesting period over which the total compensation expense will be recorded related to unvested options not yet recognized as of September 30, 2014 was approximately 2.46 years. The weighted average grant date fair value is $5.88. The intrinsic value of the stock options as of September 30, 2014 was $0, with a remaining weighted average contractual life of 5.99 years.

SHAREBASED_PAYMENTS_TO_VENDORS

SHARE-BASED PAYMENTS TO VENDORS	9 Months Ended
SHARE-BASED PAYMENTS TO VENDORS	Sep. 30, 2014
SHARE-BASED PAYMENTS TO VENDORS	'
SHARE-BASED PAYMENTS TO VENDORS	'
	NOTE 7 — SHARE-BASED PAYMENTS TO VENDORS

	In January 2013, the Company granted an additional 218 Class A Membership Interests to one vendor in exchange for consulting services. The fair value of the Class A Membership Interests granted is equal to the value of the most-recent private placement ($50 per Class A Membership Interest). Consulting expense in the amount of $10,900 was recorded for the nine months ended September 30, 2013.

	In August 2013, the Company engaged a consultant for investor related services for a 12 month term. The Company agreed to pay for the services rendered in cash and a grant of 2,000 Class A Membership Interests which will vest one year after the effective date of the agreement. 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 and remeasured based on the market value at each reporting date) over the term of the agreement and when the cash is paid. Consulting expense, which includes cash payments and the membership interest grant, in the amount of $11,410 and $114,812 was recorded for the three and nine month periods ended September 30, 2014, respectively.

	In January 2014, the Company entered into a Product Development Agreement with RRD International, LLC, pursuant to which RRD International, LLC provides certain strategic product development services to the Company during the term of the agreement which is calendar year 2014. These product development services include the development, 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 has agreed to pay RRD International, LLC partially in cash and by issuing 7,604 of the Company’s Class A Membership Interests. The Company expensed $380,200, the fair value of the Class A Membership Interests, ($50 per Class A Membership Interest, based on the previous private placement).

LEASE_OF_OFFICE_SPACE

LEASE OF OFFICE SPACE	9 Months Ended
LEASE OF OFFICE SPACE	Sep. 30, 2014
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 $12,346. The term of the sublease is 23 months with inflationary escalations in 2015 and the first three months of 2016. Total minimum sublease payments for the remaining term of the sublease is $228,936.

LEGAL_MATTERS

LEGAL MATTERS	9 Months Ended
LEGAL MATTERS	Sep. 30, 2014
LEGAL MATTERS	'
LEGAL MATTERS	'
	NOTE 9 — LEGAL MATTERS

	The Company, as well as its two original executives, were three of some thirty defendants in a lawsuit filed by a former stockholder of Genaera Corporation, which was the predecessor of the Genaera Liquidating Trust (“the Trust”), the party which sold the Company 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 LCC, 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 Genera Corporation, the Trust and/or Argyce LLC, as well as against the Company and its two executives, as individuals. 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 and their related institutional and personal investors.

	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 Argyce, LLC, the trustee of the Trust, and the Trust as well as former individuals associated with Genaera Corporation before it went into liquidation via a majority vote of its stockholders. Plaintiff claimed that the defendants, aided and abetted a breach of the duties of the trustee under common law and under a certain trust agreement allegedly signed between Argyce, LLC, as the trustee, and the 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 granting each and every motion to dismiss, with prejudice, without leave to refile, was granted by the court on August 12, 2013. Plaintiff’s lawyers then filed a Motion for Reconsideration which was also denied by the court on September 25, 2013. Plaintiff then filed an appeal in the United States Third Circuit Court of Appeals seeking reversal of the court’s orders dismissing the complaint and denying the motion to reconsider. Appellate court briefs were filed by the defendants in the case, and the plaintiff filed his reply brief accordingly.

	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 will file the necessary documents requesting a petition for rehearing en banc, by the majority of the Third Circuit justices who are in active service with the appellate court. With the strength of the dissent, the Company is hopeful that the en banc panel will reverse the Third Circuit’s 2-1 decision. If not, this matter will be remanded to the U.S. district court for further hearing on alternative grounds for dismissal of Plaintiff’s claims, and for limited discovery on the issue of Plaintiff’s initial knowledge of his potential claims against the defendants. The U.S. district court may still determine after some limited discovery that Plaintiff’s claims are barred by the applicable statutes of limitations. Even if Plaintiff’s claims survive these initial technical challenges, the Company will continue to vigorously defend Plaintiff’s claims on the factual record, which it believes will prove that the Company is not liable to Plaintiff in any regard whatsoever. The Company believes that this legal matter will not have a material adverse effect on the Company’s financial position.

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
RELATED PARTY TRANSACTIONS	Sep. 30, 2014
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 $15,000 in fees for the three months ended September 30, 2014 and 2013, respectively, and $22,500 and $55,000 in fees for services rendered by Aumoe for the nine months ended September 30, 2014 and 2013, respectively, which were recorded in general and administrative expenses.

NET_LOSS_PER_SHARE

NET LOSS PER SHARE	9 Months Ended
NET LOSS PER SHARE	Sep. 30, 2014
NET LOSS PER SHARE	'
NET LOSS PER SHARE	'
	NOTE 11 — NET LOSS PER SHARE

	Basic and diluted net loss per common share for the three months and nine months ended September 30, 2014 was determined by dividing net loss by the weighted average common shares outstanding during the period. The Company’s potentially dilutive shares, which include 861,287 of stock options, 42,000 unvested common shares, and 34,300 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 18, 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_PRONOUNCEMEN

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS	Sep. 30, 2014
RECENT ACCOUNTING PRONOUNCEMENTS	'
RECENT ACCOUNTING PRONOUNCEMENTS	'

	NOTE 12 — RECENT ACCOUNTING PRONOUNCEMENTS

	In June 2014, the Financial Accounting Standards Board issued an Accounting Standards Update for Development Stage Entities (Topic 915). The main provisions eliminate the requirements for development stage entities to present inception-to-date information in the financial statements and other related disclosures. The Company elected to early adopt these amendments beginning in the prior quarter and for the periods covered by the report herein.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2014
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.

Federal Income Taxes	'
	Federal 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 losses of the Company was passed through to members for inclusion in their respective income tax returns.

	The Company currently estimates an annual effective tax rate of 0% as the Company incurred losses for the three and nine month periods ended September 30, 2014 and is forecasting additional losses through year end, resulting in an estimated net loss for both financial statement and tax purposes. Therefore, no federal or state income tax expense has been recorded in the financial statements.

	The Company has a history of generating operating losses and anticipates operating losses continuing in the foreseeable future. The Company believes that the tax benefits from these net operating losses will be realized in the future, however, based on the history of operating losses, GAAP rules require a full valuation allowance against all deferred tax assets, which has been recorded. Should the Company’s assessment change, tax benefits associated with the historic net operating loss carryforwards would be available from the time of the corporate conversion to the present.

Concentration of Credit Risk	'
	Concentration of Credit Risk

	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 amount of $2,529,457 and $636,301 for the three months ended September 30, 2014 and 2013, respectively, and $6,939,063 and $792,778 for the nine months ended September 30, 2014 and 2013, respectively.

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.

Deferred Initial Public Offering Costs	'
	Deferred Initial Public Offering Costs

	The Company incurred legal and accounting costs relating to its initial public offering. These specific incremental costs directly attributable to the offering of equity securities were capitalized in other noncurrent assets as of December 31, 2013. These costs were subsequently applied against the proceeds of the initial public offering which was consummated in March 2014.

ACCOUNTS_PAYABLE_AND_ACCRUED_E1

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	9 Months Ended
	Sep. 30, 2014
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	'
Schedule of accounts payable and accrued expenses	'

		September 30, 2014		December 31, 2013
	Accrued compensation expense	$	350,730	$	247,845
	Accrued research and development	891,770		367,065
	Accrued professional fees	19,225		160,370
	Other accounts payable and accrued expenses	37,198		48,554
	Totals	$	1,298,923	$	823,834

SHAREBASED_COMPENSATION_and_ST1

SHARE-BASED COMPENSATION and STOCK OPTIONS (Tables)	9 Months Ended
SHARE-BASED COMPENSATION and STOCK OPTIONS (Tables)	Sep. 30, 2014
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	'

		Class A
		Membership Interests
		converted to Common Stock 7:1 ratio
	Nonvested at January 1, 2013	111,986
	Granted	112,000
	Vested	(146,986	)
	Nonvested at December 31, 2013	77,000
	Granted	—
	Forfeited	(21,000	)
	Vested	(14,000	)
	Nonvested at September 30, 2014	42,000


Schedule of weighted average assumptions used in determining the fair value of the option awards using the Black-Scholes option pricing model	'

		Nine Months Ended
		September 30, 2014
	Expected term	4.3 years
	Volatility	59.6	%
	Dividend yield	0	%
	Risk free interest rate	1.23	%


Summary of stock option activity	'

		Nine Months Ended		Weighted Average
		September 30, 2014		Exercise Price
	Outstanding at the beginning of the period	—
	Granted	861,287		$	13.90
	Forfeited	—
	Outstanding at the end of the period	861,287		$	13.90

NATURE_OF_OPERATIONS_Details

NATURE OF OPERATIONS (Details) (USD $)	0 Months Ended	9 Months Ended
NATURE OF OPERATIONS (Details) (USD $)	Mar. 18, 2014	Sep. 30, 2014	Dec. 31, 2013
NATURE OF OPERATIONS	'	'	'
Proceeds from initial public offering of common stock, net of transaction costs	$34,455,669	$34,455,669	'
Cash balance	'	$29,892,515	$3,861,145

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
	item	Sep. 30, 2013	item	Sep. 30, 2013
Federal Income Taxes	'	'	'	'
Estimated annual effective tax rate (as a percent)	0.00%	'	0.00%	'
Current federal income tax expense	'	'	$0	'
Current state income tax expense	'	'	0	'
Concentration of Credit Risk	'	'	'	'
Number of financial institutions in which the entity maintains its cash balance	1	'	1	'
Research and Development	'	'	'	'
Net research and development expenses	$2,529,457	$636,301	$6,939,063	$792,778

ACCOUNTS_PAYABLE_AND_ACCRUED_E2

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	'	'
Accrued compensation expense	$350,730	$247,845
Accrued research and development	891,770	367,065
Accrued professional fees	19,225	160,370
Other accounts payable and accrued expenses	37,198	48,554
Total	$1,298,923	$823,834

EXECUTIVE_COMPENSATION_Details

EXECUTIVE COMPENSATION (Details) (USD $)

0 Months Ended

1 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

51 Months Ended

Jul. 23, 2010

Jan. 31, 2012

Sep. 30, 2014

Mar. 31, 2014

Sep. 30, 2013

Mar. 31, 2013

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Mar. 31, 2014

item

EXECUTIVE COMPENSATION

Number of original executives who will receive compensation pursuant to employment agreements

Base salary per annum of executives

$252,000

Percentage of the base salary payable with the issuance of Class A Membership Interests

50.00%

Offering price per unit (in dollars per unit)

$50

Threshold aggregate proceeds to be raised from executives for waiver from payment of base salary with issuance of Class A Membership Interests

2,000,000

Percentage of each waiver revoked by the executives

50.00%

Class A Membership Interests issued to the two executives (in units)

1,680

Period of vacation per annum which executives will receive

'35 days

Compensation expense representing accrued vacation pay

$16,304

$10,176

$12,923

$47,913

$183,021

Number of executives by whom Company is managed

ISSUANCE_OF_MEMBERSHIP_INTERES1

ISSUANCE OF MEMBERSHIP INTERESTS and COMMON STOCK (Details) (USD $)	0 Months Ended	3 Months Ended	9 Months Ended	0 Months Ended	1 Months Ended	9 Months Ended
	Mar. 18, 2014	Mar. 31, 2013	Sep. 30, 2014	Mar. 18, 2014	Feb. 28, 2014	Sep. 30, 2014	Feb. 28, 2014
	Mar. 18, 2014	Mar. 31, 2013	Sep. 30, 2014	Class A Membership Interests	Class A Membership Interests	Class A Membership Interests	Warrants
Issuance of membership interests and common stock	'	'	'	'	'	'	'
Number of Class A Membership Interests that can be purchased with aggregate warrants issued and sold	'	'	'	'	89,900	'	'
Exercise price (in dollars per unit)	'	'	'	'	$60	'	'
Membership interests issued to investors in prior financings in exchange for outstanding warrants	'	'	'	'	23,719	23,719	'
Implied intrinsic value of the warrants (in dollars per share)	'	'	'	'	$8.57	'	$2.93
Conversion ratio	7	7	'	7	7	'	'
Shares of common stock issued in IPO	3,162,500	'	'	'	'	'	'
Share price of common stock (in dollars per share)	$12	'	'	'	$11.50	'	'
Net proceeds from IPO	$34,455,669	'	$34,455,669	'	'	'	'
Underwriting discounts	2,656,500	'	'	'	'	'	'
Offering costs	$837,831	'	'	'	'	'	'
Membership interests converted into shares of common stock	'	'	'	767,911	'	'	'
Shares of common stock issued upon conversion of membership interests	5,375,377	'	'	'	'	'	'

SHAREBASED_COMPENSATION_and_ST2

SHARE-BASED COMPENSATION and STOCK OPTIONS (Details) (USD $)

0 Months Ended

9 Months Ended

12 Months Ended

1 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

Jul. 23, 2010

Sep. 30, 2014

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Jul. 31, 2014

Dec. 31, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Dec. 31, 2013

Restricted Class A Membership Interests awards

Non-vested Class A Membership Interests awards converted to Common Stock awards

item

Minimum

Maximum

Share-based compensation and stock options

Vesting period

'3 years

'4 years

Fair value of the membership interests granted (in dollars per share)

$50

Number of members of the board of directors from whom entity has received resignation letters

Membership interests issued in connection with both the accelerated and annual vesting of the awards (in shares)

20,333

Compensation expense associated with accelerated vesting

$693,750

Total compensation expense recorded as director fees

25,000

116,667

100,000

277,083

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)

77,000

111,986

Granted (in shares)

112,000

Forfeited (in shares)

21,000

Redcution in compensation

29,167

Vested (in shares)

-14,000

-146,986

Nonvested at the end of the period (in shares)

42,000

77,000

Additional disclosures

Number of Membership Interests issued but not vested

1,000

Total unrecognized compensation cost

$245,833

Weighted average period over which total unrecognized compensation cost is expected to be recognized

'2 years 6 months

SHAREBASED_COMPENSATION_and_ST3

SHARE-BASED COMPENSATION and STOCK OPTIONS (Details 2) (Employee stock options, USD $)	1 Months Ended			3 Months Ended			9 Months Ended
	Apr. 30, 2014	Mar. 31, 2014	Nov. 30, 2013	Sep. 30, 2014	Mar. 31, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
	Apr. 30, 2014	item	Nov. 30, 2013	Sep. 30, 2014	item	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Employee stock options	'	'	'	'	'	'	'	'
Share-based compensation and stock options	'	'	'	'	'	'	'	'
Percentage of the issued and outstanding common stock reserved under the Equity Incentive Plan	'	'	20.00%	'	'	'	'	'
Awards granted as percentage of common stock outstanding	'	10.00%	'	'	'	'	'	'
Number of executives to whom awards are granted	'	4	'	'	'	'	'	'
Number of equal monthly installments in which awards issued under the 2013 Equity Incentive Plan will vest	'	'	'	'	36	'	'	'
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	'	'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%	'
Weighted average grant date fair value (in dollars per share)	'	'	'	'	'	'	$5.88	'
Company's stock option activity	'	'	'	'	'	'	'	'
Outstanding at the beginning of the period(in shares)	853,787	'	'	'	'	'	'	'
Granted (in shares)	7,500	'	'	'	'	'	861,287	'
Outstanding at the end of the period (in shares)	'	853,787	'	861,287	853,787	'	861,287	'
Weighted Average Exercise Price	'	'	'	'	'	'	'	'
Grant price (in dollars per share)	'	'	'	'	'	'	$13.90	'
Outstanding at the end of the period (in dollars per share)	$10.46	$13.93	'	$13.90	$13.93	'	$13.90	'
Compensation expense	'	'	'	$421,697	'	$0	$900,782	$0
Total compensation expense not yet recognized	'	'	'	4,159,580	'	'	4,159,580	'
Weighted average vesting period over which the total compensation expense will be recorded	'	'	'	'	'	'	'2 years 5 months 16 days	'
Vesting period	'3 years	'	'	'	'	'	'	'
Intrinsic value	'	'	'	$0	'	'	$0	'
Remaining weighted average contractual life	'	'	'	'	'	'	'5 years 11 months 27 days	'
Exercise price (in dollars per share)	$10.46	$13.93	'	$13.90	$13.93	'	$13.90	'

SHAREBASED_PAYMENTS_TO_VENDORS1

SHARE-BASED PAYMENTS TO VENDORS (Details) (USD $)

0 Months Ended

9 Months Ended

12 Months Ended

9 Months Ended

1 Months Ended

3 Months Ended

9 Months Ended

1 Months Ended

9 Months Ended

Jul. 23, 2010

Sep. 30, 2014

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Sep. 30, 2014

Jan. 31, 2013

Aug. 31, 2013

Sep. 30, 2014

Aug. 31, 2013

Jan. 31, 2014

Sep. 30, 2014

Consultant for consulting services

Consultant for investor related services

RRD International, LLC

Class A Membership Interests

item

Share-based payments to vendors

Membership Interests granted (in units)

218

2,000

7,604

Number of vendors to whom membership interests are granted

Value of recent private placement taken as fair value for the grant of the membership interests (in dollars per share)

$50

($50)

Consulting expense

$10,900

$11,410

$114,812

$380,200

Term of services

'12 months

Vesting period

'1 year

LEASE_OF_OFFICE_SPACE_Details

LEASE OF OFFICE SPACE (Details) (Subsequent event, USD $)	1 Months Ended
LEASE OF OFFICE SPACE (Details) (Subsequent event, USD $)	31-May-14
Subsequent event	'
Lease of office space	'
Term of lease agreement	'23 months
Monthly payments of lease under agreement	$12,346
Total minimum sublease payments	$228,936

LEGAL_MATTERS_Details

LEGAL MATTERS (Details) (Lawsuit filed by a former stockholder of Genaera Corporation for breach of fiduciary duty)	0 Months Ended
	Jun. 08, 2012
	item
Lawsuit filed by a former stockholder of Genaera Corporation for breach of fiduciary duty	'
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) (Aumoe, USD $)	3 Months Ended		9 Months Ended
RELATED PARTY TRANSACTIONS (Details) (Aumoe, USD $)	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Aumoe	'	'	'	'
Related party transactions	'	'	'	'
Fees for services rendered by the related party	$0	$15,000	$22,500	$55,000

NET_LOSS_PER_SHARE_Details

NET LOSS PER SHARE (Details)	0 Months Ended	3 Months Ended	0 Months Ended	1 Months Ended	9 Months Ended
	Mar. 18, 2014	Mar. 31, 2013	Mar. 18, 2014	Feb. 28, 2014	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014
	Mar. 18, 2014	Mar. 31, 2013	Class A Membership Interests	Class A Membership Interests	Class A Membership Interests	Stock options	Warrants	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	'	'	'	'	'	861,287	34,300	42,000
Conversion ratio used to convert Class A Membership Interests on proforma basis to common shares to calculate the weighted average common shares	7	7	7	7	'	'	'	'
Membership interests converted into shares of common stock	'	'	767,911	'	'	'	'	'
Shares of common stock issued upon conversion of membership interests	5,375,377	'	'	'	-767,911	'	'	'