Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 14, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | RespireRx Pharmaceuticals Inc. | |
Entity Central Index Key | 0000849636 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 3,872,076 | |
Trading Symbol | RSPI | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 5,498 | $ 33,284 |
Advance payment on research contract | 48,912 | 48,912 |
Prepaid expenses, including current portion of long-term prepaid insurance of $14,322 at March 31, 2019 and 14,495 at December 31, 2018 | 90,364 | 38,880 |
Total current assets | 144,774 | 121,076 |
Long-term prepaid insurance, net of current portion of $14,322 at March 31, 2019 and $14,945 at December 31, 2018 | 3,114 | |
Total assets | 144,774 | 124,190 |
Current liabilities: | ||
Accounts payable and accrued expenses, including $472,711 and $400,229 payable to related parties at March 31, 2019 and December 31, 2018, respectively | 3,441,681 | 3,303,120 |
Accrued compensation and related expenses | 1,499,734 | 1,304,434 |
Convertible notes payable, currently due and payable on demand, including accrued interest of $70,478 and $62,635 at March 31, 2019 and December 31, 2018, respectively ($40,518 and $38,292, including accrued interest of $16,143 and $13,292 was deemed to be in default at March 31, 2019 and December 31, 2018, respectively and $20,928 and $27,969 of original issue discount at March 31, 2019 (Note 4)) | 364,550 | 239,666 |
Note payable to SY Corporation, including accrued interest of $327,136 and $315,307 at March 31, 2019 and December 31, 2018, respectively (payment obligation currently in default - Note 4) | 741,627 | 744,441 |
Notes payable to officer, including accrued interest of $27,649 and $25,116 as of March 31, 2019 and December 31, 2018, respectively (Note 4) | 105,249 | 102,716 |
Notes payable to former officer, including accrued interest of $30,362 and $26,561 as of March 31, 2019 and December 31, 2018, respectively (Note 4) | 157,962 | 154,161 |
Other short-term notes payable | 61,746 | 8,907 |
Total current liabilities | 6,372,549 | 5,857,445 |
Commitments and contingencies (Note 8) | ||
Stockholders' deficiency: (Note 6) | ||
Series B convertible preferred stock, $0.001 par value; $0.6667 per share liquidation preference; aggregate liquidation preference $25,001; shares authorized: 37,500; shares issued and outstanding: 11; common shares issuable upon conversion at 0.00030 common shares per Series B share | 21,703 | 21,703 |
Common stock, $0.001 par value; shares authorized: 65,000,000; shares issued and outstanding: 3,872,076 at March 31, 2019 and December 31, 2018, respectively (Note 2) | 3,872 | 3,872 |
Additional paid-in capital | 158,681,034 | 158,635,222 |
Accumulated deficit | (164,934,384) | (164,394,052) |
Total stockholders' deficiency | (6,227,775) | (5,733,255) |
Total liabilities and stockholders' deficiency | $ 144,774 | $ 124,190 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Long term prepaid insurance current portion | $ 14,322 | $ 14,495 |
Long-term prepaid insurance net of current portion | 14,322 | 14,945 |
Accounts payable and accrued expenses to related party | $ 472,711 | $ 400,229 |
Preferred stock, par value | $ 0.001 | |
Preferred stock, shares authorized | 5,000,000 | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 65,000,000 | 65,000,000 |
Common stock, shares issued | 3,872,076 | 3,872,076 |
Common stock, shares outstanding | 3,872,076 | 3,872,076 |
Officers [Member] | ||
Accrued interest | $ 27,649 | $ 25,116 |
Former Officers [Member] | ||
Accrued interest | 30,362 | 26,561 |
SY Corporation [Member] | ||
Accrued interest | 327,136 | 315,307 |
Convertible Notes Payable [Member] | ||
Accrued interest | 70,478 | 62,635 |
Unamortized discount | 40,518 | 38,292 |
Notes default amount | 16,143 | 13,292 |
Original issue discount | $ 20,928 | $ 27,969 |
Series B Convertible Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, liquidation preference, per share | $ 0.6667 | $ 0.6667 |
Preferred stock, liquidation preference value | $ 25,001 | $ 25,001 |
Preferred stock, shares authorized | 37,500 | 37,500 |
Preferred stock, shares issued | 11 | 11 |
Preferred stock, shares outstanding | 11 | 11 |
Preferred stock shares issuable upon conversion, per share | $ 0.00030 | $ 0.00030 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating expenses: | ||
General and administrative, including $121,200 and $207,594 to related parties for the three-months ended March 31, 2019 and 2018, respectively | $ 324,513 | $ 354,843 |
Research and development, including $122,400 and $122,509 to related parties for the three-months ended March 31, 2019 and 2018, respectively | 149,350 | 151,334 |
Total operating costs and expenses | 473,863 | 506,177 |
Loss from operations | (473,863) | (506,177) |
Loss on extinguishment of debt in exchange for equity | (66,782) | |
Interest expense, including $2,533 and $2,808 to related parties for the three-months ended March 31, 2019 and 2018, respectively | (81,112) | (27,273) |
Foreign currency transaction gain (loss) | 14,643 | (146,446) |
Net loss attributable to common stockholders | $ (540,332) | $ (746,678) |
Net loss per common share - basic and diluted | $ (0.14) | $ (0.24) |
Weighted average common shares outstanding - basic and diluted | 3,872,076 | 3,085,263 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
General and administrative expense to related parties | $ 121,200 | $ 207,594 |
Research and development expenses to related parties | 122,400 | 122,509 |
Interest expense to related parties | $ 2,533 | $ 2,808 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Deficiency (Unaudited) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Series B Convertible Preferred Stock [Member] | |||
Balance beginning | $ 21,703 | $ 21,703 | $ 21,703 |
Balance beginning, shares | 37,500 | 37,500 | 37,500 |
Fair value of common stock options issued to consultants | |||
Common stock issued related to extinguishment of convertible notes | |||
Common stock issued related to extinguishment of convertible notes, shares | |||
Fari value of common stock warrants issued in connection with convertible notes | |||
Net loss | |||
Balance ending | $ 21,703 | $ 21,703 | $ 21,703 |
Balance ending, shares | 37,500 | 37,500 | 37,500 |
Common Stock [Member] | |||
Balance beginning | $ 3,872 | $ 3,065 | $ 3,065 |
Balance beginning, shares | 3,872,076 | 3,065,261 | 3,065,261 |
Fair value of common stock options issued to consultants | |||
Common stock issued related to extinguishment of convertible notes | $ 58 | ||
Common stock issued related to extinguishment of convertible notes, shares | 58,071 | ||
Fari value of common stock warrants issued in connection with convertible notes | |||
Net loss | |||
Balance ending | $ 3,872,076 | $ 3,123 | $ 3,872 |
Balance ending, shares | 3,872,076 | 3,123,332 | 3,872,076 |
Additional Paid-in Capital [Member] | |||
Balance beginning | $ 158,635,222 | $ 157,422,110 | $ 157,422,110 |
Fair value of common stock options issued to consultants | 14,474 | ||
Common stock issued related to extinguishment of convertible notes | 110,277 | ||
Fari value of common stock warrants issued in connection with convertible notes | 45,812 | ||
Net loss | |||
Balance ending | 158,681,034 | 157,546,861 | 158,635,222 |
Accumulated Deficit [Member] | |||
Balance beginning | (164,394,052) | (161,802,262) | (161,802,262) |
Fair value of common stock options issued to consultants | |||
Common stock issued related to extinguishment of convertible notes | |||
Fari value of common stock warrants issued in connection with convertible notes | |||
Net loss | (540,332) | (746,678) | |
Balance ending | (164,934,384) | (162,548,940) | (164,394,052) |
Balance beginning | (5,733,255) | (4,355,384) | (4,355,384) |
Fair value of common stock options issued to consultants | 14,474 | ||
Common stock issued related to extinguishment of convertible notes | 110,335 | ||
Fari value of common stock warrants issued in connection with convertible notes | 45,812 | ||
Net loss | (540,332) | (746,678) | (2,591,790) |
Balance ending | $ (6,227,775) | $ (4,977,253) | $ (5,733,255) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (540,332) | $ (746,678) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of original issue discount to interest expense | 52,851 | |
Loss on extinguishment of convertible debt | 66,782 | |
Stock-based compensation and fees included in - General and administrative expenses | 14,474 | |
Foreign currency transaction (gain) loss | (14,643) | 146,446 |
(Increase) decrease in - | ||
Prepaid expenses | (48,370) | (54,021) |
Increase (decrease) in - | ||
Accounts payable and accrued expenses | 138,561 | 126,942 |
Accrued compensation and related expenses | 195,300 | 278,950 |
Accrued interest payable | 78,847 | 27,083 |
Net cash used in operating activities | (137,786) | (140,022) |
Cash flows from financing activities: | ||
Borrowings on short-term notes payable | 110,000 | 55,386 |
Net cash provided by financing activities | 110,000 | 55,386 |
Cash and cash equivalents: | ||
Net decrease | (27,786) | (84,636) |
Balance at beginning of period | 33,284 | 84,902 |
Balance at end of period | 5,498 | 266 |
Cash paid for - | ||
Interest | 71 | 190 |
Income taxes | ||
Non-cash operating activity: | ||
Settlement of accounts payable with common stock options | 14,474 | |
Non-cash financing activities: | ||
Short-term note payable issued in connection with financing of directors and officers insurance policy | 61,746 | |
Extinguishment of Convertible Notes Payable | (43,522) | |
Issuance of common stock in exchange for extinguishment of Convertible Notes Payable | $ 110,334 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | 1. Organization and Basis of Presentation Organization RespireRx Pharmaceuticals Inc. (“RespireRx”) was formed in 1987 under the name Cortex Pharmaceuticals, Inc. to engage in the discovery, development and commercialization of innovative pharmaceuticals for the treatment of neurological and psychiatric disorders. On December 16, 2015, RespireRx filed a Certificate of Amendment to its Second Restated Certificate of Incorporation with the Secretary of State of the State of Delaware to amend its Second Restated Certificate of Incorporation to change its name from Cortex Pharmaceuticals, Inc. to RespireRx Pharmaceuticals Inc. While developing potential applications for respiratory disorders, RespireRx has retained and expanded its ampakine intellectual property and data with respect to neurological and psychiatric disorders and is considering developing certain potential products in this platform, pending additional financing and/or strategic relationships. In August 2012, RespireRx acquired Pier Pharmaceuticals, Inc. (“Pier”), which is now its wholly-owned subsidiary. Basis of Presentation The condensed consolidated financial statements are of RespireRx and its wholly-owned subsidiary, Pier (collectively referred to herein as the “Company,” “we” or “our,” unless the context indicates otherwise). The condensed consolidated financial statements of the Company at March 31, 2019 and for the three-months ended March 31, 2019 and 2018, are unaudited. In the opinion of management, all adjustments (including normal recurring adjustments) have been made that are necessary to present fairly the condensed consolidated financial position of the Company as of March 31, 2019, the results of its condensed consolidated operations for the three-months ended March 31, 2019 and 2018, changes in its condensed consolidated statements of stockholders’ deficiency for the three-months ended March 31, 2019 and 2018 and its condensed consolidated cash flows for the three-months ended March 31, 2019 and 2018. Condensed consolidated operating results for the interim periods presented are not necessarily indicative of the results to be expected for a full fiscal year. The consolidated balance sheet at December 31, 2018 has been derived from the Company’s audited consolidated financial statements at such date. The condensed consolidated financial statements and related notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and other information included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, as filed with the SEC. |
Business
Business | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | 2. Business The mission of the Company is to develop innovative and revolutionary treatments to combat diseases caused by disruption of neuronal signaling. We are developing treatment options that address conditions that affect millions of people, but for which there are few or poor treatment options, including obstructive sleep apnea (“OSA”), attention deficit hyperactivity disorder (“ADHD”) and recovery from spinal cord injury (“SCI”), as well as certain neurological orphan diseases such as Fragile X Syndrome. RespireRx is developing a pipeline of new drug products based on our broad patent portfolios for two drug platforms: cannabinoids, including dronabinol (“∆9-THC”), and the ampakines, proprietary compounds that positively modulate AMPA-type glutamate receptors to promote neuronal function. RespireRx is developing a number of potential products. From the cannabinoid platform, two Phase 2 clinical trials have been completed demonstrating the ability of dronabinol to significantly reduce the symptoms of OSA, which management believes is potentially a multi-billion-dollar market. Subject to raising sufficient financing, we believe that we have put most of the necessary pieces into place to rapidly initiate a Phase 3 clinical trial program. By way of definition, when a new drug is allowed by the United States Food and Drug Administration (“FDA”) to be tested in humans, Phase 1 clinical trials are conducted in healthy people to determine safety and pharmacokinetics. If successful, Phase 2 clinical trials are conducted in patients to determine safety and preliminary efficacy. Phase 3 trials, large scale studies to determine efficacy and safety, are the final step prior to seeking FDA approval to market a drug. From our ampakine platform, our lead clinical compounds, CX717 and CX1739, have successfully completed multiple Phase 1 safety trials. Both compounds have also completed Phase 2 efficacy trials demonstrating target engagement, by antagonizing the ability of opioids to induce respiratory depression. CX717 has completed a Phase 2 trial demonstrating the ability to significantly reduce the symptoms of adult ADHD. In an early Phase 2 study, CX1739 improved breathing in patients with central sleep apnea. Preclinical studies have highlighted the potential ability of these ampakines to improve motor function in animals with spinal injury. Subject to raising sufficient financing (of which no assurance can be provided), we believe that we will be able to rapidly initiate a human Phase 2 study with CX1739 and/or CX717 in patients with spinal cord injury and a human Phase 2B study in patients with ADHD with either CX717 or CX1739. Going Concern The Company’s condensed consolidated financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has incurred net losses of $540,332 for the three-months ended March 31, 2019 and $2,591,790 for the fiscal year ended December 31, 2018, and negative operating cash flows of $137,786 for the three-months ended March 31, 2019 and $427,368 for the fiscal year ended December 31, 2018. The Company also had a stockholders’ deficiency of $6,227,775 at March 31, 2019 and expects to continue to incur net losses and negative operating cash flows for at least the next few years. As a result, management has concluded that there is substantial doubt about the Company’s ability to continue as a going concern, and the Company’s independent registered public accounting firm, in its report on the Company’s consolidated financial statements for the year ended December 31, 2018, expressed substantial doubt about the Company’s ability to continue as a going concern. The Company is currently, and has for some time, been in significant financial distress. It has extremely limited cash resources and current assets and has no ongoing source of sustainable revenue. Management is continuing to address various aspects of the Company’s operations and obligations, including, without limitation, debt obligations, financing requirements, intellectual property, licensing agreements, legal and patent matters and regulatory compliance, and has taken steps to continue to raise new debt and equity capital to fund the Company’s business activities from both related and unrelated parties. The Company is continuing its efforts to raise additional capital in order to be able to pay its liabilities and fund its business activities on a going forward basis, including the pursuit of the Company’s planned research and development activities. The Company regularly evaluates various measures to satisfy the Company’s liquidity needs, including development and other agreements with collaborative partners and, when necessary, seeking to exchange or restructure the Company’s outstanding securities. The Company is evaluating certain changes to its operations and structure to facilitate raising capital from sources that may be interested in financing only discrete aspects of the Company’s development programs. Such changes could include a significant reorganization, which may include the formation of one or more subsidiaries into which one or more programs may be contributed. As a result of the Company’s current financial situation, the Company has limited access to external sources of debt and equity financing. Accordingly, there can be no assurances that the Company will be able to secure additional financing in the amounts necessary to fully fund its operating and debt service requirements. If the Company is unable to access sufficient cash resources, the Company may be forced to discontinue its operations entirely and liquidate. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies Principles of Consolidation The accompanying condensed consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”) and include the financial statements of RespireRx and its wholly-owned subsidiary, Pier. Intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include, among other things, accounting for potential liabilities, and the assumptions used in valuing stock-based compensation issued for services. Actual amounts may differ from those estimates. Concentration of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company limits its exposure to credit risk by investing its cash with high credit quality financial institutions. The Company’s research and development efforts and potential products rely on licenses from research institutions and if the Company loses access to these technologies or applications, its business could be substantially impaired. By letter dated May 18, 2018, the Company received notice from counsel claiming to represent TEC Edmonton and The Governors of the University of Alberta, which purports to terminate, effective December 12, 2017, the license agreement dated May 9, 2007 between the Company and The Governors of the University of Alberta. The Company, through its counsel, disputed any grounds for termination and notified the representative that it invoked Section 13 of that license agreement, which mandates a meeting to be attended by individuals with decision-making authority to attempt in good faith to negotiate a resolution to the dispute. In February 2019, the Company and TEC Edmonton tentatively agreed to terms acceptable to all parties to establish a new license agreement and the form of a new license agreement. However, the parties have not signed the draft new license agreement pending the Company’s payment of the agreed amount of historical unreimbursed patent fees, of approximately CAD$23,000 (approximately US$17,000 as of December 31, 2018). No assurance can be provided that the Company will or will not be able to remit the historical license fees or that the draft new license agreement will be executed and become effective. If we do not remit the historical fees and the new license agreement does not become effective, we cannot estimate the possible adverse impact on the Company’s operations or business prospects. Through the merger with Pier, the Company gained access to the Old License Agreement that Pier had entered into with the University of Illinois on October 10, 2007. The Old License Agreement covered certain patents and patent applications in the United States and other countries claiming the use of certain compounds referred to as cannabinoids for the treatment of sleep related breathing disorders (including sleep apnea), of which dronabinol is a specific example of one type of cannabinoid. Dronabinol is a synthetic derivative of the naturally occurring substance in the cannabis plant, otherwise known as Δ9-THC (Δ9-tetrahydrocannabinol). Dronabinol is currently approved by the FDA and is sold generically for use in refractory chemotherapy-induced nausea and vomiting, as well as for anorexia in patients with AIDS. Pier’s business plan was to determine whether dronabinol would significantly improve subjective and objective clinical measures in patients with OSA. The Old License Agreement was terminated effective March 21, 2013 due to the Company’s failure to make a required payment and on June 27, 2014, the Company entered into the 2014 License Agreement with the University of Illinois, the material terms of which were similar to the Old License Agreement that had been terminated and also included the assignment of rights to the University of Illinois, to certain patent applications filed by RespireRx. If the Company is unable to comply with the terms of the 2014 License Agreement, such as an inability to make the payments required thereunder, the Company would be at risk of the 2014 License Agreement being terminated. Cash Equivalents The Company considers all highly liquid short-term investments with maturities of less than three-months when acquired to be cash equivalents. Fair Value of Financial Instruments The authoritative guidance with respect to fair value of financial instruments established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels and requires that assets and liabilities carried at fair value be classified and disclosed in one of three categories, as presented below. Disclosure as to transfers into and out of Levels 1 and 2, and activity in Level 3 fair value measurements, is also required. Level 1. Observable inputs such as quoted prices in active markets for an identical asset or liability that the Company has the ability to access as of the measurement date. Financial assets and liabilities utilizing Level 1 inputs include active-exchange traded securities and exchange-based derivatives. Level 2. Inputs, other than quoted prices included within Level 1, which are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. Financial assets and liabilities utilizing Level 2 inputs include fixed income securities, non-exchange based derivatives, mutual funds, and fair-value hedges. Level 3. Unobservable inputs in which there is little or no market data for the asset or liability which requires the reporting entity to develop its own assumptions. Financial assets and liabilities utilizing Level 3 inputs include infrequently-traded, non-exchange-based derivatives and commingled investment funds, and are measured using present value pricing models. The Company determines the level in the fair value hierarchy within which each fair value measurement falls in its entirety, based on the lowest level input that is significant to the fair value measurement in its entirety. In determining the appropriate levels, the Company performs an analysis of the assets and liabilities at each reporting period end. The carrying amounts of financial instruments (consisting of cash, cash equivalents, advances on research grants and accounts payable and accrued expenses) are considered by the Company to be representative of the respective fair values of these instruments due to the short-term nature of those instruments. With respect to the note payable to SY Corporation and the convertible notes payable, management does not believe that the credit markets have materially changed for these types of borrowings since the original borrowing date. The Company considers the carrying amounts of the notes payable to officers, inclusive of accrued interest, to be representative of the respective fair values of such instruments due to the short-term nature of those instruments and their terms. Convertible Notes Payable Convertible notes are evaluated to determine if they should be recorded at amortized cost. To the extent that there are associated warrants or a beneficial conversion feature, the convertible notes and warrants are evaluated to determine if there are embedded derivatives to be identified, bifurcated and valued at fair value in connection with and at the time of such financing. Notes Exchanges In cases where debt or other liabilities are exchanged for equity, the Company compares the carrying value of debt, inclusive of accrued interest, if applicable, being exchanged, to the fair value of the equity issued and records any loss or gain as a result of such exchange. See Note 4. Notes Payable. Extinguishment of Debt The Company accounts for the extinguishment of debt in accordance with GAAP by comparing the carrying value of the debt to the fair value of consideration paid or assets given up and recognizing a loss or gain in the condensed consolidated statement of operations in the amount of the difference in the period in which such transaction occurs. Equipment Equipment is recorded at cost and depreciated on a straight-line basis over their estimated useful lives, which range from three to five years. All equipment was fully depreciated as of March 31, 2019. Prepaid Insurance Long-term prepaid insurance represents the premium paid in March 2014 for directors’ and officers’ insurance tail coverage, which is being amortized on a straight-line basis over the policy period of six years. The amount amortizable in the ensuing twelve-month period is recorded as a current asset in the Company’s condensed consolidated balance sheet at each reporting date. As of March 31, 2019, all such prepaid amounts have been reclassified as current since the policy will expire within one year. Impairment of Long-Lived Assets The Company reviews its long-lived assets, including long-term prepaid insurance, for impairment whenever events or changes in circumstances indicate that the total amount of an asset may not be recoverable, but at least annually. An impairment loss is recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition is less than the asset’s carrying amount. The Company has not deemed any long-lived assets as impaired at March 31, 2019. Stock-Based Awards The Company periodically issues common stock and stock options to officers, directors, outside consultants and vendors for services rendered. Such issuances vest and expire according to terms established at the issuance date of each grant. The Company accounts for stock-based payments to officers, directors, outside consultants and vendors by measuring the cost of services received in exchange for equity awards based on the grant date fair value of the awards, with the cost recognized as compensation expense on the straight-line basis in the Company’s consolidated financial statements over the vesting period of the awards. The fair value of stock options granted as stock-based payments is determined utilizing the Black-Scholes option-pricing model, and is affected by several variables, the most significant of which are the life of the equity award, the exercise price of the stock option as compared to the fair market value of the common stock on the grant date, and the estimated volatility of the common stock over the term of the equity award. Estimated volatility is based on the historical volatility of the Company’s common stock. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The fair market value of common stock is determined by reference to the quoted market price of the Company’s common stock. There were no stock or stock option grants during the three-months ended March 31, 2019. For stock options requiring an assessment of value during the three-months ended March 31, 2018, the fair value of each stock option award was estimated using the Black-Scholes option-pricing model using the following assumptions: Risk-free interest rate 2.56 % Expected dividend yield 0 % Expected volatility 185.41 % Expected life 4.7 The Company recognizes the fair value of stock-based payments in general and administrative costs and in research and development costs, as appropriate, in the Company’s condensed consolidated statements of operations. The Company issues new shares of common stock to satisfy stock option and warrant exercises. There were no stock options exercised during the three-months ended March 31, 2019 and 2018. Income Taxes The Company accounts for income taxes under an asset and liability approach for financial accounting and reporting for income taxes. Accordingly, the Company recognizes deferred tax assets and liabilities for the expected impact of differences between the financial statements and the tax basis of assets and liabilities. The Company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. In the event the Company was to determine that it would be able to realize its deferred tax assets in the future in excess of its recorded amount, an adjustment to the deferred tax assets would be credited to operations in the period such determination was made. Likewise, should the Company determine that it would not be able to realize all or part of its deferred tax assets in the future, an adjustment to the deferred tax assets would be charged to operations in the period such determination was made. Pursuant to Internal Revenue Code Sections 382 and 383, use of the Company’s net operating loss and credit carryforwards may be limited if a cumulative change in ownership of more than 50% occurs within any three-year period since the last ownership change. The Company may have had a change in control under these Sections. However, the Company does not anticipate performing a complete analysis of the limitation on the annual use of the net operating loss and tax credit carryforwards until the time that it anticipates it will be able to utilize these tax attributes. As of March 31, 2019, the Company did not have any unrecognized tax benefits related to various federal and state income tax matters and does not anticipate any material amount of unrecognized tax benefits within the next 12 months. The Company is subject to U.S. federal income taxes and income taxes of various state tax jurisdictions. As the Company’s net operating losses have yet to be utilized, all previous tax years remain open to examination by Federal authorities and other jurisdictions in which the Company currently operates or has operated in the past. The Company accounts for uncertainties in income tax law under a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns as prescribed by GAAP. The tax effects of a position are recognized only if it is “more-likely-than-not” to be sustained by the taxing authority as of the reporting date. If the tax position is not considered “more-likely-than-not” to be sustained, then no benefits of the position are recognized. As of March 31, 2019, the Company had not recorded any liability for uncertain tax positions. In subsequent periods, any interest and penalties related to uncertain tax positions will be recognized as a component of income tax expense. Foreign Currency Transactions The note payable to SY Corporation, which is denominated in a foreign currency (the South Korean Won), is translated into the Company’s functional currency (the United States Dollar) at the exchange rate on the balance sheet date. The foreign currency exchange gain or loss resulting from translation is recognized in the related condensed consolidated statements of operations. Research and Development Research and development costs include compensation paid to management directing the Company’s research and development activities, and fees paid to consultants and outside service providers and organizations (including research institutes at universities), and other expenses relating to the acquisition, design, development and clinical testing of the Company’s treatments and product candidates. Research and development costs incurred by the Company under research grants are expensed as incurred over the life of the underlying contracts, unless the terms of the contract indicate that a different expensing schedule is more appropriate. The Company reviews the status of its research and development contracts on a quarterly basis. On May 6, 2016, the Company made an advance payment to Duke University with respect to the Phase 2A clinical trial of CX1739. At March 31, 2019, an asset balance of $48,912 remained from the advance payment. License Agreements Obligations incurred with respect to mandatory payments provided for in license agreements are recognized ratably over the appropriate period, as specified in the underlying license agreement, and are recorded as liabilities in the Company’s condensed consolidated balance sheet, with a corresponding charge to research and development costs in the Company’s condensed consolidated statement of operations. Obligations incurred with respect to milestone payments provided for in license agreements are recognized when it is probable that such milestone will be reached and are recorded as liabilities in the Company’s condensed consolidated balance sheet, with a corresponding charge to research and development costs in the Company’s condensed consolidated statement of operations. Payments of such liabilities are made in the ordinary course of business. Patent Costs Due to the significant uncertainty associated with the successful development of one or more commercially viable products based on the Company’s research efforts and any related patent applications, all patent costs, including patent-related legal and filing fees, are expensed as incurred and recorded as general and administrative expenses. Earnings per Share The Company’s computation of earnings per share (“EPS”) includes basic and diluted EPS. Basic EPS is measured as the income (loss) attributable to common stockholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., warrants and options) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Net loss attributable to common stockholders consists of net loss, as adjusted for actual and deemed preferred stock dividends declared, amortized or accumulated. Loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the respective periods. Basic and diluted loss per common share is the same for all periods presented because all warrants and stock options outstanding are anti-dilutive. At March 31, 2019 and 2018, the Company excluded the outstanding securities summarized below, which entitle the holders thereof to acquire shares of common stock, from its calculation of earnings per share, as their effect would have been anti-dilutive. March 31, 2019 2018 Series B convertible preferred stock 11 11 Convertible notes payable 16,893 29,957 Common stock warrants 1,874,828 1,464,415 Common stock options 4,337,609 4,012,929 Total 6,229,341 5,507,312 Reclassifications Certain comparative figures in 2018 have been reclassified to conform to the current quarter’s presentation. These reclassifications were immaterial, both individually and in the aggregate. Recent Accounting Pronouncements In June 2018, the FASB issued Accounting Standards Update No. 2018-07 (“ASU 2018-07”), Compensation-Stock Compensation (Topic 718)—Improvements to Nonemployee Share-Based Payment Accounting. In July 2017, the FASB issued Accounting Standards Update No. 2017-11 (“ASU 2017-11”), Earnings Per Share (Topic 260): Distinguishing Liabilities from Equity (Topic 480): Derivatives and Hedging (Topic 815) |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Notes Payable | 4. Notes Payable Convertible Notes Payable On January 2, 2019, February 27, 2019, March 6, 2019 and March 14, 2019, the Company issued convertible notes (“2019 Convertible Notes”) bearing interest at 10% per year. The January 2, 2019 Convertible Note matured on February 28, 2019 with a face amount of $10,000. The February 27, 2019, March 6, 2019 and March 14, 2019, 2019 Convertible Notes matured on April 30, 2019 with an aggregate face amount of $100,000. Investors also received an aggregate of 110,000 common stock purchase warrants. The warrants were valued using the Black Scholes option pricing model calculated on the date of each grant and had an aggregate value of $78,780. Total value received by the investors was $188,780, the sum of the face value of the convertible note and the value of the warrant. Therefore, the Company recorded an initial original issue discount of $45,812 and an initial value of the convertible notes of $64,188 using the relative fair value method. $24,883 of the original issue discount was amortized to interest expense through March 31, 2019. An additional $1,061 of interest expense was recorded based upon the 10% annual rate. The 2019 Convertible Note that matured on February 28, 2019 was not paid and remain outstanding and continue to accrue interest. The 2019 Convertible Notes that matured on April 30, 2019 were not paid and remain outstanding and continue to accrue interest. Although the 2019 Convertible Notes are in default, the Company has not received any notices of default from any of the note holders. The 2019 Convertible Notes have no reset rights or other protections based on subsequent equity transactions, equity-linked transactions or other events other than the right, but not the obligation, for each investor to convert or exchange his or her 2019 Convertible Note, but not the warrant, into the next exempt private securities offering, which offering has not occurred as of March 31, 2019 or as of the date of the issuance of these financial statements. Therefore, the number of shares of common stock (or preferred stock) into which the 2019 Convertible Notes may convert is not determinable and the Company has not accounted for any beneficial conversion feature. The warrants to purchase 110,000 shares of common stock issued in connection with the sale of the 2019 Convertible Notes are exercisable at a fixed price of $1.50 per share of common stock, provide no right to receive a cash payment, and included no reset rights or other protections based on subsequent equity transactions, equity-linked transactions or other events. The Company determined that there were no embedded derivatives to be identified, bifurcated and valued in connection with this financing. During December 2018, convertible notes (“2018 Convertible Notes”) bearing interest at 10% per year and maturing on February 28, 2019 and warrants were sold to investors with an aggregate face amount of $80,000. Investors also received 80,000 common stock purchase warrants. The warrants were valued using the Black Scholes option pricing model calculated on the date of each grant and had an aggregate value of $68,025. Total value received by the investors was $148,025, the sum of the face value of the convertible note and the value of the warrant. Therefore, the Company recorded an initial original issue discount of $36,347 and an initial value of the convertible notes of $43,653 using the relative fair value method. $27,969 of the original issue discount was amortized to interest expense for the three-months ended March 31, 2019 and $8,379 was amortized from inception through December 31, 2018. An additional $2,000 of interest expense was recorded based upon the 10% annual rate for the three-months ended March 31, 2019 and $401 of interest expense was recorded from inception through December 31, 2018. The 2018 Convertible Notes matured on February 28, 2019, were not paid, remain outstanding and continue to accrue interest. Although the 2018 Convertible Notes are in default, the Company has not received any notices of default from any of the note holders. The 2018 Convertible Notes have no reset rights or other protections based on subsequent equity transactions, equity-linked transactions or other events other than the right, but not the obligation for each investor to convert or exchange his or her 2018 Convertible Note, but not the warrant, into the next exempt private securities offering, which offering has not occurred as of March 31, 2019 or as of the date of the issuance of these financial statements. Therefore, the number of shares of common stock (or preferred stock) into which the 2018 Convertible Notes may convert is not determinable and the Company has not accounted for any beneficial conversion feature. The warrants to purchase 80,000 shares of common stock issued in connection with the sale of the 2018 Convertible Notes are exercisable at a fixed price of $1.50 per share of common stock, provide no right to receive a cash payment, and included no reset rights or other protections based on subsequent equity transactions, equity-linked transactions or other events. The Company determined that there were no embedded derivatives to be identified, bifurcated and valued in connection with this financing. The 2018 and 2019 Convertible Notes consist of the following at March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Principal amount of notes payable $ 190,000 $ 80,000 Original issue discount net of amortization of $8,379 (20,928 ) (27,968 ) Accrued interest payable 3,462 401 $ 172,534 $ 52,433 Convertible notes were also sold to investors in 2014 and 2015 (“Original Convertible Notes), which aggregated a total of $579,500, had a fixed interest rate of 10% per annum and those that remain outstanding are convertible into common stock at a fixed price of $11.3750 per share. The Original Convertible Notes have no reset rights or other protections based on subsequent equity transactions, equity-linked transactions or other events. The warrants to purchase 50,945 shares of common stock issued in connection with the sale of the convertible notes were exercisable at a fixed price of $11.3750 per share. All such warrants have either been exchanged as part of April and May 2016 note and warrant exchange agreements or expired on September 15, 2016. The maturity date of the Original Convertible Notes was extended to September 15, 2016 and included the issuance of 27,936 additional warrants to purchase common stock, exercisable at $11.375 per share of common stock, which expired on September 15, 2016. The remaining outstanding Original Convertible Notes (including those for which default notices have been received) consist of the following at March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Principal amount of notes payable $ 125,000 $ 125,000 Accrued interest payable 67,016 62,233 $ 192,016 $ 187,233 As of March 31, 2019, principal and accrued interest on the one remaining outstanding Original Convertible Note subject to a default notice, which therefore accrues annual interest at 12% instead of 10%, totaled $40,518, of which $16,143 was accrued interest. As of December 31, 2018, principal and accrued interest on convertible notes subject to default notices totaled $38,292 of which $13,292 was accrued interest. As of March 31, 2019, the remaining total outstanding Original Convertible Notes, inclusive of accrued interest, were convertible into 16,881 shares of the Company’s common stock, including 5,892 shares attributable to accrued interest of $67,016 payable as of such date. As of December 31, 2018, the outstanding Original Convertible Notes were convertible into 16,460 shares of the Company’s common stock, including 5,471 shares attributable to accrued interest of $62,233 payable as of such date. Such Original Convertible Notes will continue to accrue interest until exchanged, paid or otherwise discharged. There can be no assurance that any of the additional holders of the remaining Original Convertible Notes will exchange their notes. Note Payable to SY Corporation Co., Ltd. On June 25, 2012, the Company borrowed 465,000,000 Won (the currency of South Korea, equivalent to approximately $400,000 United States Dollars) from and executed a secured note payable to SY Corporation Co., Ltd., formerly known as Samyang Optics Co. Ltd. (“SY Corporation”), an approximately 20% common stockholder of the Company at that time. SY Corporation was a significant stockholder and a related party at the time of the transaction but has not been a significant stockholder or related party of the Company subsequent to December 31, 2014. The note accrues simple interest at the rate of 12% per annum and had a maturity date of June 25, 2013. The Company has not made any payments on the promissory note. At June 30, 2013 and subsequently, the promissory note was outstanding and in default, although SY Corporation has not issued a notice of default or a demand for repayment. Management believes that SY Corporation is in default of its obligations under its January 2012 license agreement, as amended, with the Company, but the Company has not yet issued a notice of default. The Company has in the past made several efforts towards a comprehensive resolution of the aforementioned matters involving SY Corporation. During the three-months ended March 31, 2019, there were no further communications between the Company and SY Corporation. The promissory note is secured by collateral that represents a lien on certain patents owned by the Company, including composition of matter patents for certain of the Company’s high impact ampakine compounds and the low impact ampakine compounds CX2007 and CX2076, and other related compounds. The security interest does not extend to the Company’s patents for its ampakine compounds CX1739 and CX1942, or to the patent for the use of ampakine compounds for the treatment of respiratory depression. Note payable to SY Corporation consists of the following at March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Principal amount of note payable $ 399,774 $ 399,774 Accrued interest payable 327,136 315,307 Foreign currency transaction adjustment 14,717 29,360 $ 741,627 $ 744,441 Interest expense with respect to this promissory note was $11,829 and $11,829 for the three-months ended March 31, 2019 and 2018, respectively. Notes Payable to Officers and Former Officers For the three-months ended March 31, 2019 and 2018, $2,533 and $2,255 was charged to interest expense with respect to Dr. Arnold S. Lippa’s notes, respectively. For the three-months ended March 31, 2019 and 2018, $3,801 and $2,254 was charged to interest expense with respect to Dr. James S. Manuso’s notes, respectively. As of September 30, 2018, Dr. James S. Manuso resigned as executive officer in all capacities and as a member of the Board of Directors of the Company. All of the $3,801 of interest expense noted above for the three-months ended March 31, 2019, was incurred while Dr. Manuso was no longer an officer. Other Short-Term Notes Payable Other short-term notes payable at March 31, 2019 and December 31, 2018 consisted of premium financing agreements with respect to various insurance policies. At March 31, 2019, a premium financing agreement was payable in the initial amount of $61,746, with interest at 9% per annum, in nine monthly installments of $7,120. At March 31, 2019 and December 31, 2018, the aggregate amount of the short-term notes payable was $61,746 and $8,907 respectively. |
Settlement and Payment Agreemen
Settlement and Payment Agreements | 3 Months Ended |
Mar. 31, 2019 | |
Settlement And Payment Agreements | |
Settlement and Payment Agreements | 5. Settlement and Payment Agreements There were no settlement or payment agreements during the three-month periods ended March 31, 2019 or 2018. |
Stockholders' Deficiency
Stockholders' Deficiency | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Deficiency | 6. Stockholders’ Deficiency Preferred Stock The Company has authorized a total of 5,000,000 shares of preferred stock, par value $0.001 per share. As of March 31, 2019 and December 31, 2018, 1,250,000 shares were designated as 9% Cumulative Convertible Preferred Stock (non-voting, “9% Preferred Stock”); 37,500 shares were designated as Series B Convertible Preferred Stock (non-voting, “Series B Preferred Stock”); 205,000 shares were designated as Series A Junior Participating Preferred Stock (non-voting, “Series A Junior Participating Preferred Stock”); and 1,700 shares were designated as Series G 1.5% Convertible Preferred Stock. Accordingly, as of March 31, 2019 and December 31, 2018, 3,505,800 shares of preferred stock were undesignated and may be issued with such rights and powers as the Board of Directors may designate. Series B Preferred Stock outstanding as of March 31, 2019 and 2018 consisted of 37,500 shares issued in a May 1991 private placement. Each share of Series B Preferred Stock is convertible into approximately 0.00030 shares of common stock at an effective conversion price of $2,208.375 per share of common stock, which is subject to adjustment under certain circumstances. As of March 31, 2019 and December 31, 2018, the shares of Series B Preferred Stock outstanding are convertible into 11 shares of common stock. The Company may redeem the Series B Preferred Stock for $25,001, equivalent to $0.6667 per share, an amount equal to its liquidation preference, at any time upon 30 days prior notice. Common Stock There are 3,872,076 shares of the Company’s Common Stock outstanding as of March 31, 2019. After reserving an aggregate of 10,726,417 for conversions of convertible debt as well as common stock purchase options and warrants exercises, there are 50,401,507 shares of the Company’s Common Stock available for future issuances. Common Stock Warrants Information with respect to the issuance and exercise of common stock purchase warrants in connection with the Convertible Note Payable and Warrant Purchase Agreement, and Notes Payable to Officers, is provided at Note 4. A summary of warrant activity for the three-months ended March 31, 2019 is presented below. Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Warrants outstanding at December 31, 2018 1,783,229 $ 2.20393 Issued 110,000 1.50000 Expired (18,401 ) 5.71706 Warrants outstanding at March 31, 2019 1,874,828 $ 2.12815 2.96 Warrants exercisable at March 31, 2019 1,874,828 $ 2.12815 2.96 The exercise prices of common stock warrants outstanding and exercisable are as follows at March 31, 2019: Exercise Price Warrants Outstanding (Shares) Warrants Exercisable (Shares) Expiration Date $ 1.0000 916,217 916,217 September 20, 2022 $ 1.2870 41,002 41,002 April 17, 2019 $ 1.5000 190,000 190,000 December 30, 2023 $ 1.5620 130,284 130,284 December 31, 2021 $ 1.5750 238,814 238,814 April 30, 2023 $ 2.7500 8,000 8000 September 20, 2022 $ 4.8500 5,155 5,155 September 23, 2019 $ 4.8750 108,594 108,594 September 30, 2020 $ 5.0000 5,000 5,000 September 22, 2019 $ 6.8348 145,758 145,758 September 30, 2020 $ 7.9300 86,004 86,004 February 28, 2021 1,874, 828 1,874,828 Based on a fair market value of $0.85000 per share on March 31, 2019, there was no intrinsic value of exercisable in-the-money common stock warrants as of March 31, 2019. A summary of warrant activity for the three-months ended March 31, 2018 is presented below. Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Warrants outstanding at December 31, 2017 1,464,415 $ 2.68146 Issued - - Warrants outstanding at March 31, 2018 1,464,415 $ 2.68146 4.59 Warrants exercisable at March 31, 2018 1,464,415 $ 2.68146 4.59 The exercise prices of common stock warrants outstanding and exercisable are as follows at March 31, 2018: Exercise Price Warrants Outstanding (Shares) Warrants Exercisable (Shares) Expiration Date $ 1.0000 916,217 916,217 September 20, 2022 $ 1.2870 41,002 41,002 April 17, 2019 $ 1.5620 130,284 130,284 December 31, 2021 $ 2.7500 8,000 8000 September 20, 2022 $ 4.8500 5,155 5,155 September 23, 2019 $ 4.8750 108,594 108,594 September 30, 2020 $ 5.0000 5,000 5,000 September 22, 2019 $ 5.1025 10,309 10,309 January 29, 2019 $ 6.5000 8,092 8,092 February 4, 2019 $ 6.8348 145,758 145,758 September 30, 2020 $ 7.9300 86,004 86,004 February 28, 2021 1,464,415 1,464,415 Based on a fair market value of $1.3100 per share on March 31, 2018, the intrinsic value of exercisable in-the-money common stock warrants was $284,970 as of March 31, 2018. Stock Options On March 18, 2014, the stockholders of the Company holding a majority of the votes to be cast on the issue approved the adoption of the Company’s 2014 Equity, Equity-Linked and Equity Derivative Incentive Plan (the “2014 Plan”), which had been previously adopted by the Board of Directors of the Company, subject to stockholder approval. The Plan permits the grant of options and restricted stock with respect to up to 325,025 shares of common stock, in addition to stock appreciation rights and phantom stock, to directors, officers, employees, consultants and other service providers of the Company. On June 30, 2015, the Board of Directors adopted the 2015 Stock and Stock Option Plan (the “2015 Plan”). The 2015 Plan initially provided for, among other things, the issuance of either or any combination of restricted shares of common stock and non-qualified stock options to purchase up to 461,538 shares of the Company’s common stock for periods up to ten years to management, members of the Board of Directors, consultants and advisors. The Company has not and does not intend to present the 2015 Plan to stockholders for approval. On August 18, 2015, the Board of Directors increased the number of shares that may be issued under the 2015 Plan to 769,231 shares of the Company’s common stock. On March 31, 2016, the Board of Directors further increased the number of shares that may be issued under the 2015 Plan to 1,538,461 shares of the Company’s common stock. On January 17, 2017, the Board of Directors further increased the number of shares that may be issued under the 2015 Plan to 3,038,461 shares of the Company’s common stock. On December 9, 2017, the Board of Directors further increased the number of shares that may be issued under the 2015 Plan to 6,985,260 shares of the Company’s common stock. On December 28, 2018, the Board of Directors further increased the number of shares that may be issued under the 2015 Plan to 8,985,260 shares of the Company’s common stock. Information with respect to the Black-Scholes variables used in connection with the evaluation of the fair value of stock-based compensation is provided at Note 3. There were no grants of common stock options or of stock for the three-month period ended March 31, 2019. The exercise prices of common stock options outstanding and exercisable were as follows at March 31, 2019: Exercise Price Options Outstanding (Shares) Options Exercisable (Shares) Expiration Date $ 0.7000 21,677 21,677 November 21, 2023 $ 1.1200 310,388 310,388 April 5, 2023 $ 1.2500 16,762 16,762 December 7, 2022 $ 1.3500 34,000 34,000 July 28, 2022 $ 1.4500 1,849,418 1,849,418 December 9, 2027 $ 1.4500 100,000 100,000 December 9, 2027 $ 2.0000 285,000 285,000 June 30, 2022 $ 2.0000 25,000 25,000 July 26, 2022 $ 3.9000 395,000 395,000 January 17, 2022 $ 4.5000 7,222 7,222 September 2, 2021 $ 5.6875 89,686 89,686 June 30, 2020 $ 5.7500 2,608 2,608 September 12, 2021 $ 6.4025 27,692 27,692 August 18, 2020 $ 6.4025 129,231 129,231 August 18, 2022 $ 6.4025 261,789 261,789 August 18, 2025 $ 6.8250 8,791 8,791 December 11, 2020 $ 7.3775 523,077 523,077 March 31, 2021 $ 8.1250 169,231 169,231 June 30, 2022 $ 13.0000 3,846 3,846 April 14, 2019 $ 13.9750 3,385 3,385 March 14, 2024 $ 15.4700 7,755 7,755 April 8, 2020 $ 15.9250 2,462 2,462 February 28, 2024 $ 16.0500 46,154 46,154 July 17, 2019 $ 16.6400 1,538 1,538 January 29, 2020 $ 19.5000 9,487 9,487 July 17, 2022 $ 19.5000 6,410 6,410 August 10, 2022 4,337,609 4,337,609 There was no deferred compensation expense for the outstanding stock options at March 31, 2019. Based on a fair market value of $0.8500 per share on March 31, 2019, the intrinsic value of exercisable in-the-money options was $3,252 as of March 31, 2019. Pier Contingent Stock Consideration In connection with the merger transaction with Pier effective August 10, 2012, RespireRx issued 179,747 newly issued shares of its common stock with an aggregate fair value of $3,271,402 ($18.2000 per share), based upon the closing price of RespireRx’s common stock on August 10, 2012. The shares of common stock were distributed to stockholders, convertible note holders, warrant holders, option holders, and certain employees and vendors of Pier in satisfaction of their interests and claims. The common stock issued by RespireRx represented approximately 41% of the 443,205 common shares outstanding immediately following the closing of the transaction. Pursuant to the terms of the transaction, RespireRx agreed to issue additional contingent consideration, consisting of up to 56,351 shares of common stock, to Pier’s former security holders and certain other creditors and service providers (the “Pier Stock Recipients”) that received RespireRx’s common stock as part of the Pier transaction if certain of RespireRx’s stock options and warrants outstanding immediately prior to the closing of the merger were subsequently exercised. In the event that such contingent shares were issued, the ownership percentage of the Pier Stock Recipients, following their receipt of such additional shares, could not exceed their ownership percentage as of the initial transaction date. The stock options and warrants outstanding at June 30, 2012 were all out-of-the-money on August 10, 2012. During late July and early August 2012, shortly before completion of the merger, the Company issued options to officers and directors at that time to purchase a total of 22,651 shares of common stock exercisable for ten years at $19.5000 per share. By October 1, 2012, these options, as well as the options and warrants outstanding at June 30, 2012, were also out-of-the-money and continued to be out-of-the-money through March 31, 2019. There were no stock options or warrants exercised subsequent to August 10, 2012 that triggered additional contingent consideration, and the only remaining stock options outstanding that could still trigger the additional contingent consideration remained out-of-the-money through March 31, 2019. As of March 31, 2019, due to the expirations and forfeitures of RespireRx stock options and warrants occurring since August 10, 2012, 6,497 contingent shares of common stock remained potentially issuable under the Pier merger agreement. The Company concluded that the issuance of any of the contingent shares to the Pier Stock Recipients was remote, as a result of the large spread between the exercise prices of these stock options and warrants as compared to the common stock trading range, the subsequent expiration or forfeiture of most of the options and warrants, the Company’s distressed financial condition and capital requirements, and that these stock options and warrants have remained significantly out-of-the-money through March 31, 2019. Accordingly, the Company considered the fair value of the contingent consideration to be immaterial and therefore did not ascribe any value to such contingent consideration. If any such shares are ultimately issued to the former Pier stockholders, the Company will recognize the fair value of such shares as a charge to operations at that time. Reserved and Unreserved Shares of Common Stock On January 17, 2017, the Board of Directors of the Company approved the adoption of an amendment of the Amended and Restated RespireRx Pharmaceuticals, Inc. 2015 Stock and Stock Option Plan (as amended, the “2015 Plan”). That amendment increases the shares issuable under the plan by 1,500,000, from 1,538,461 to 3,038,461. On December 9, 2017, the Board of Directors further amended the 2015 Plan to increase the number of shares that may be issued under the 2015 Plan to 6,985,260 shares of the Company’s common stock. On December 28, 2018, the Board of Directors further amended the 2015 Plan to increase the number of shares that may be issued under the 2015 Plan to 8,985,260 shares of the Company’s common stock. Other than the change in the number of shares available under the 2015 Plan, no other changes were made to the 2015 Plan by these amendments noted above. At March 31, 2019, the Company had 65,000,000 shares of common stock authorized and 3,872,076 shares of common stock issued and outstanding. Furthermore, as of March 31, 2019, the Company had reserved an aggregate of 11 shares for issuance upon conversion of the Series B Preferred Stock; 1,874,828 shares for issuance upon exercise of warrants; 4,337,609 shares for issuance upon exercise of outstanding stock options; 63,236 shares to cover equity grants available for future issuance pursuant to the Company’s 2014 Equity, Equity-linked and Equity Derivative Incentive Plan; 4,427,343 shares to cover equity grants available for future issuance pursuant to the 2015 Plan; 16,893 shares for issuance upon conversion of the Convertible Notes; and 6,497 shares issuable as contingent shares pursuant to the Pier merger. Accordingly, as of March 31, 2019, the Company had an aggregate of 10,726,417 shares of common stock reserved for issuance and 50,401,507 shares of common stock unreserved and available for future issuance. The Company expects to satisfy its future common stock commitments through the issuance of authorized but unissued shares of common stock. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7. Related Party Transactions Dr. Arnold S. Lippa and Jeff E. Margolis, officers and directors of the Company since March 22, 2013, have indirect ownership interests and managing memberships in Aurora Capital LLC (“Aurora”) through interests held in its members, and Jeff. E. Margolis is also an officer of Aurora. Aurora is a boutique investment banking firm specializing in the life sciences sector that is also a full-service brokerage firm. A description of advances and notes payable to officers is provided at Note 4. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Pending or Threatened Legal Action and Claims By letter dated May 18, 2018, the Company received notice from counsel claiming to represent TEC Edmonton and The Governors of the University of Alberta, which purported to terminate, effective December 12, 2017, the license agreement dated May 9, 2007 between the Company and The Governors of the University of Alberta. The Company, through its counsel, disputed any grounds for termination and notified the representative that it invoked Section 13 of that license agreement, which mandates a meeting to be attended by individuals with decision-making authority to attempt in good faith to negotiate a resolution to the dispute. In February 2019, the Company and TEC Edmonton tentatively agreed to terms acceptable to all parties to establish a new license agreement and the form of a new license agreement. However, the parties have not signed the draft new license agreement pending the Company’s payment of the agreed amount of historical unreimbursed patent fees of approximately CAD$23,000 (approximately US$17,000 as of March 31, 2019). No assurance can be provided that the Company will or will not be able to remit the historical license fees or that the draft new license agreement will be executed and become effective. If we do not remit the historical fees and the new license agreement does not become effective, we cannot estimate the possible adverse impact on the Company’s operations or business prospects. By e-mail dated July 21, 2016, the Company received a demand from an investment banking consulting firm that represented the Company in 2012 in conjunction with the Pier transaction alleging that $225,000 is due and payable for investment banking services rendered. Such amount has been included in accrued expenses at March 31, 2019 and December 31, 2018. By letter dated February 5, 2016, the Company received a demand from a law firm representing a professional services vendor of the Company alleging an amount due and payable for services rendered. On January 18, 2017, following an arbitration proceeding, an arbitrator awarded the vendor the full amount sought in arbitration of $146,082. Additionally, the arbitrator granted the vendor attorneys’ fees and costs of $47,937. All such amounts have been included in accrued expenses at March 31, 2019 and December 31, 2018, including accrued interest at 4.5% annually from February 26, 2018, the date of the judgment, through March 31, 2019, totaling $9,652 and which amounts at December 31, 2018 totaled $7,470. The Company is periodically the subject of various pending and threatened legal actions and claims. In the opinion of management of the Company, adequate provision has been made in the Company’s consolidated financial statements as of March 31, 2019 and December 31, 2018 with respect to such matters, including, specifically, the matters noted above. The Company intends to vigorously defend itself if any of the matters described above results in the filing of a lawsuit or formal claim. Significant Agreements and Contracts Consulting Agreement Richard Purcell, the Company’s Senior Vice President of Research and Development since October 15, 2014, provides his services to the Company on a month-to-month basis through his consulting firm, DNA Healthlink, Inc., through which the Company has contracted for his services, for a monthly cash fee of $12,500. Additional information with respect to shares of common stock that have been issued to Mr. Purcell is provided at Note 6. Cash compensation expense pursuant to this agreement totaled $37,500 for the three-months ended March 31, 2019 and 2018, which is included in research and development expenses in the Company’s consolidated statements of operations for such periods. Employment Agreements On October 12, 2018, Dr. Lippa was named Interim President and Interim Chief Executive Officer to replace Dr. Manuso who resigned effective September 30, 2018. Dr. Lippa continues to serve as the Company’s Executive Chairman and as a member of the Board of Directors. Also, on August 18, 2015, Dr. Lippa was named Chief Scientific Officer of the Company, and the Company entered into an employment agreement with Dr. Lippa in that capacity. Pursuant to the agreement, which is for an initial term through September 30, 2018 (and which automatically extended on September 30, 2018 and will automatically extend annually, upon the same terms and conditions, for successive periods of one year, unless either party provides written notice of its intention not to extend the term of the agreement at least 90 days prior to the applicable renewal date), Dr. Lippa received an annual base salary of $300,000. Dr. Lippa is also eligible to earn a performance-based annual bonus award of up to 50% of his base salary, based upon the achievement of annual performance goals established by the Board of Directors in consultation with the executive prior to the start of such fiscal year, or any amount at the discretion of the Board of Directors. Additionally, Dr. Lippa was granted stock options to acquire 30,769 shares of common stock of the Company and is eligible to receive additional awards under the Company’s Plans at the discretion of the Board of Directors. Dr. Lippa is also entitled to receive, until such time as the Company establishes a group health plan for its employees, $1,200 per month, on a tax-equalized basis, as additional compensation to cover the cost of health coverage and up to $1,000 per month, on a tax-equalized basis, as reimbursement for a term life insurance policy and disability insurance policy. Dr. Lippa is also entitled to be reimbursed for business expenses. Additional information with respect to the stock options granted to Dr. Lippa is provided at Note 6. Cash compensation accrued pursuant to this agreement totaled $84,900 for the three-months ended March 31, 2019 and 2018, respectively, which amounts are included in accrued compensation and related expenses in the Company’s consolidated balance sheet at March 31, 2019 and December 31, 2018, and in research and development expenses in the Company’s consolidated statement of operations. Dr. Lippa does not receive any additional compensation for serving as Executive Chairman and on the Board of Directors. On August 18, 2015, the Company also entered into an employment agreement with Jeff E. Margolis, in his continuing role as Vice President, Secretary and Treasurer. Pursuant to the agreement, which was for an initial term through September 30, 2016 (and which automatically extended on September 30, 2016 and will automatically extend annually upon the same terms and conditions, for successive periods of one year, unless either party provides written notice of its intention not to extend the term of the agreement at least 90 days prior to the applicable renewal date), Mr. Margolis received an annual base salary of $195,000, and is also eligible to receive performance-based annual bonus awards ranging from $65,000 to $125,000, based upon the achievement of annual performance goals established by the Board of Directors in consultation with the executive prior to the start of such fiscal year, or any amount at the discretion of the Board of Directors. Additionally, Mr. Margolis was granted stock options to acquire 30,769 shares of common stock of the Company and is eligible to receive additional awards under the Company’s Plans at the discretion of the Board of Directors. Mr. Margolis is also entitled to receive, until such time as the Company establishes a group health plan for its employees, $1,200 per month, on a tax-equalized basis, as additional compensation to cover the cost of health coverage and up to $1,000 per month, on a tax-equalized basis, as reimbursement for a term life insurance policy and disability insurance policy. Mr. Margolis is also entitled to be reimbursed for business expenses. Additional information with respect to the stock options granted to Mr. Margolis is provided at Note 6. Mr. Margolis’ employment agreement was amended effective July 1, 2017. The employment agreement amendment called for payment in three installments in cash of the $60,000 bonus granted on June 30, 2015. A minimum of $15,000 was to be payable in cash as follows: (a) $15,000 payable in cash upon the next closing (after July 1, 2017) of any financing in excess of $100,000 (b) $15,000 payable by the end of the following month assuming cumulative closings (beginning with the closing that triggered (a)) in excess of $200,000 and (c) $30,000 payable in cash upon the next closing of any financing in excess of an additional $250,000. The conditions of (a), (b) and (c) above were met as of December 31, 2017, however Mr. Margolis has waived the Company’s obligation to make any payments of the cash bonus until the Board of Directors of the Company determines that sufficient capital has been raised by the Company or is otherwise available to fund the Company’s operations on an ongoing basis. Recurring cash compensation accrued pursuant to this amended agreement totaled $80,400 for the three-months ended March 31, 2019 and 2018 and were $321,600 for the fiscal year ended December 31, 2018. Such amounts are included in accrued compensation and related expenses in the Company’s consolidated balance sheet at March 31, 2019 and December 31, 2018 respectively, and in general and administrative expenses in the Company’s consolidated statement of operations. The employment agreements between the Company and each of Dr. Lippa and Mr. Margolis (prior to the 2017 amendment), respectively, provided that the payment obligations associated with the first year base salary were to accrue, but no payments were to be made, until at least $2,000,000 of net proceeds from any offering or financing of debt or equity, or a combination thereof, was received by the Company, at which time scheduled payments were to commence. Dr. Lippa and Mr. Margolis (who are each also directors of the Company), and prior to his resignation, Dr. James S. Manuso, have each agreed, effective as of August 11, 2016, to continue to defer the payment of such amounts indefinitely, until such time as the Board of Directors of the Company determines that sufficient capital has been raised by the Company or is otherwise available to fund the Company’s operations on an ongoing basis. University of Alberta License Agreement On May 9, 2007, the Company entered into a license agreement, as amended, with the University of Alberta granting the Company exclusive rights to practice patents held by the University of Alberta claiming the use of ampakines for the treatment of various respiratory disorders. The Company agreed to pay the University of Alberta a licensing fee and a patent issuance fee, which were paid, and prospective payments consisting of a royalty on net sales, sublicense fee payments, maintenance payments and milestone payments. The prospective maintenance payments commence on the enrollment of the first patient into the first Phase 2B clinical trial and increase upon the successful completion of the Phase 2B clinical trial. As the Company does not at this time anticipate scheduling a Phase 2B clinical trial in the near term, no maintenance payments to the University of Alberta are currently due and payable, nor are any maintenance payments expected to be due in the near future in connection with the license agreement. On May 18, 2018, the Company received a letter from counsel claiming to represent TEC Edmonton and The Governors of the University of Alberta, which purported to terminate, effective December 12, 2017, the license agreement dated May 9, 2007 (as subsequently amended) between the Company and The Governors of the University of Alberta. The Company, through its counsel, disputed any grounds for termination and notified the representative that it invoked Section 13 of that license agreement, which mandates a meeting to be attended by individuals with decision-making authority to attempt in good faith to negotiate a resolution to the dispute. In February 2019, the Company and TEC Edmonton tentatively agreed to terms acceptable to all parties to establish a new license agreement and the form of a new license agreement. However, the parties have not signed the draft new license agreement pending the Company’s payment of the agreed amount of historical unreimbursed patent fees, of approximately CAD$23,000 (approximately US$17,000 as of March 31, 2019). No assurance can be provided that the Company will or will not be able to remit the historical license fees or that the draft new license agreement will be executed and become effective. If we do not remit the historical fees and the new license agreement does not become effective, we cannot estimate the possible adverse impact on the Company’s operations or business prospects. University of Illinois 2014 Exclusive License Agreement On June 27, 2014, the Company entered into an Exclusive License Agreement (the “2014 License Agreement”) with the University of Illinois, the material terms of which were similar to a License Agreement between the parties that had been previously terminated on March 21, 2013. The 2014 License Agreement became effective on September 18, 2014, upon the completion of certain conditions set forth in the 2014 License Agreement, including: (i) the payment by the Company of a $25,000 licensing fee, (ii) the payment by the Company of outstanding patent costs aggregating $15,840, and (iii) the assignment to the University of Illinois of rights the Company held in certain patent applications, all of which conditions were fulfilled. The 2014 License Agreement granted the Company (i) exclusive rights to several issued and pending patents in numerous jurisdictions and (ii) the non-exclusive right to certain technical information that is generated by the University of Illinois in connection with certain clinical trials as specified in the 2014 License Agreement, all of which relate to the use of cannabinoids for the treatment of sleep related breathing disorders. The Company is developing dronabinol (Δ9-tetrahydrocannabinol), a cannabinoid, for the treatment of OSA, the most common form of sleep apnea. The 2014 License Agreement provides for various commercialization and reporting requirements commencing on June 30, 2015. In addition, the 2014 License Agreement provides for various royalty payments, including a royalty on net sales of 4%, payment on sub-licensee revenues of 12.5%, and a minimum annual royalty beginning in 2015 of $100,000, which is due and payable on December 31 of each year beginning on December 31, 2015. The minimum annual royalty obligation of $100,000 due on December 31, 2018, was extended to February 28, 2019, when such payment obligation was paid by the Company. The minimum annual royalty obligation was paid as scheduled in December 2017. One-time milestone payments may become due based upon the achievement of certain development milestones. $350,000 will be due within five days after the dosing of the first patient is a Phase III human clinical trial anywhere in the world. $500,000 will be due within five days after the first NDA filing with FDA or a foreign equivalent. $1,000,000 will be due within twelve months of the first commercial sale. One-time royalty payments may also become due and payable. Annual royalty payments may also become due. In the year after the first application for market approval is submitted to the FDA or a foreign equivalent and until approval is obtained, the minimum annual royalty will increase to $150,000. In the year after the first market approval is obtained from the FDA or a foreign equivalent and until the first sale of a product, the minimum annual royalty will increase to $200,000. In the year after the first commercial sale of a product, the minimum annual royalty will increase to $250,000. For each of the three-month periods ending March 31, 2019 and 2018, the Company recorded a charge to operations of $25,000 with respect to its minimum annual royalty obligation, which is included in research and development expenses in the Company’s consolidated statements of operations for the three-months ended March 31, 2019 and 2018. As of December 31, 2018, the Company received an extension of time to make a $100,000 payment that would have due on such date. An additional extension was granted until February 28, 2019, on which date the Company made the required payment. Research Contract with the University of Alberta On January 12, 2016, the Company entered into a Research Contract with the University of Alberta in order to test the efficacy of ampakines at a variety of dosage and formulation levels in the potential treatment of Pompe Disease, apnea of prematurity and spinal cord injury, as well as to conduct certain electrophysiological studies to explore the ampakine mechanism of action for central respiratory depression. The Company agreed to pay the University of Alberta total consideration of approximately CAD$146,000 (approximately US$111,000), consisting of approximately CAD$85,000 (approximately US$65,000) of personnel funding in cash in four installments during 2016, to provide approximately CAD$21,000 (approximately US$16,000) in equipment, to pay patent costs of CAD$20,000 (approximately US$15,000), and to underwrite additional budgeted costs of CAD$20,000 (approximately US$15,000). The final amount payable in respect to this Research Contract of US$16,207 (CAD$21,222) was paid in US dollars in January 2018 and completed the payments under the contract. The conversion to US dollars above utilizes an exchange rate of approximately US$0.76 for every CAD$1.00. The University of Alberta received matching funds through a grant from the Canadian Institutes of Health Research in support of this research. The Company retained the rights to research results and any patentable intellectual property generated by the research. Dr. John Greer, faculty member of the Department of Physiology, Perinatal Research Centre and Women & Children’s Health Research Institute at the University of Alberta collaborated on this research. The studies were completed in 2016. See “University of Alberta License Agreement” above for more information on the related license agreement. Summary of Principal Cash Obligations and Commitments The following table sets forth the Company’s principal cash obligations and commitments for the next five fiscal years as of March 31, 2019, aggregating $805,600. License agreement amounts included in the 2019 column represents amounts contractually due from April 1, 2019 through December 31, 2019 (nine months) and in each of the subsequent years, represents the full year. Employment agreement amounts included in the 2019 column represent amounts contractually due at from April 1, 2019 through September 30, 2019 (six months) when such contracts expire unless extended pursuant to the terms of the contracts. Payments Due By Year Total 2019 2020 2021 2022 2023 License agreements $ 475,000 $ 75,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 Employment agreements (1) 330,600 330,600 - - - - Total $ 805,600 $ 405,600 $ 100,000 $ 100,000 $ 100,000 $ 100,000 (1) The payment of such amounts has been deferred indefinitely, as described above at “Employment Agreements.” The 2019 amounts include six-months of employment agreement obligations for Dr. Lippa and Mr. Margolis as their employment contracts renewed on September 30, 2018 and the 2019 obligations include the six months of obligations through September 30, 2019. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 9. Subsequent Events Arnold S. Lippa, the Company’s Interim Chief Executive Officer, Interim President and Chief Scientific Officer extended credit to the Company on April 15, 2019 for operating expenses by making a payment of $25,000 to the Company’s auditors which amount has been accounted for by the Company as an advance by Dr. Lippa payable on demand. The balance of the amount payable to the auditors has been paid directly by the Company. On April 24, 2019, the Company issued a new convertible note for $58,500 in face amount, payable on April 24, 2020 and bearing interest at a rate equal to 12% per annum, with any amount of principal or interest which is not paid when due bearing interest at the rate of 22% per annum. At any time during the period beginning on the date that is 180 days following the date of the note and ending on the later of (i) April 24, 2020 and (ii) the date of payment of the Default Amount (as defined in the note), any outstanding and unpaid amount of the note may be converted into shares of the Company’s common stock or securities convertible into the Company’s common stock, provided that such conversion would not result in the lender beneficially owning more than 4.99% of the Company’s common stock. The note also contains provisions that permit the Company to prepay the note inclusive of accrued interest. Upon such conversion, the note would be deemed repaid and terminated. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”) and include the financial statements of RespireRx and its wholly-owned subsidiary, Pier. Intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include, among other things, accounting for potential liabilities, and the assumptions used in valuing stock-based compensation issued for services. Actual amounts may differ from those estimates. |
Concentration of Risk | Concentration of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company limits its exposure to credit risk by investing its cash with high credit quality financial institutions. The Company’s research and development efforts and potential products rely on licenses from research institutions and if the Company loses access to these technologies or applications, its business could be substantially impaired. By letter dated May 18, 2018, the Company received notice from counsel claiming to represent TEC Edmonton and The Governors of the University of Alberta, which purports to terminate, effective December 12, 2017, the license agreement dated May 9, 2007 between the Company and The Governors of the University of Alberta. The Company, through its counsel, disputed any grounds for termination and notified the representative that it invoked Section 13 of that license agreement, which mandates a meeting to be attended by individuals with decision-making authority to attempt in good faith to negotiate a resolution to the dispute. In February 2019, the Company and TEC Edmonton tentatively agreed to terms acceptable to all parties to establish a new license agreement and the form of a new license agreement. However, the parties have not signed the draft new license agreement pending the Company’s payment of the agreed amount of historical unreimbursed patent fees, of approximately CAD$23,000 (approximately US$17,000 as of December 31, 2018). No assurance can be provided that the Company will or will not be able to remit the historical license fees or that the draft new license agreement will be executed and become effective. If we do not remit the historical fees and the new license agreement does not become effective, we cannot estimate the possible adverse impact on the Company’s operations or business prospects. Through the merger with Pier, the Company gained access to the Old License Agreement that Pier had entered into with the University of Illinois on October 10, 2007. The Old License Agreement covered certain patents and patent applications in the United States and other countries claiming the use of certain compounds referred to as cannabinoids for the treatment of sleep related breathing disorders (including sleep apnea), of which dronabinol is a specific example of one type of cannabinoid. Dronabinol is a synthetic derivative of the naturally occurring substance in the cannabis plant, otherwise known as Δ9-THC (Δ9-tetrahydrocannabinol). Dronabinol is currently approved by the FDA and is sold generically for use in refractory chemotherapy-induced nausea and vomiting, as well as for anorexia in patients with AIDS. Pier’s business plan was to determine whether dronabinol would significantly improve subjective and objective clinical measures in patients with OSA. The Old License Agreement was terminated effective March 21, 2013 due to the Company’s failure to make a required payment and on June 27, 2014, the Company entered into the 2014 License Agreement with the University of Illinois, the material terms of which were similar to the Old License Agreement that had been terminated and also included the assignment of rights to the University of Illinois, to certain patent applications filed by RespireRx. If the Company is unable to comply with the terms of the 2014 License Agreement, such as an inability to make the payments required thereunder, the Company would be at risk of the 2014 License Agreement being terminated. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid short-term investments with maturities of less than three-months when acquired to be cash equivalents. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The authoritative guidance with respect to fair value of financial instruments established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels and requires that assets and liabilities carried at fair value be classified and disclosed in one of three categories, as presented below. Disclosure as to transfers into and out of Levels 1 and 2, and activity in Level 3 fair value measurements, is also required. Level 1. Observable inputs such as quoted prices in active markets for an identical asset or liability that the Company has the ability to access as of the measurement date. Financial assets and liabilities utilizing Level 1 inputs include active-exchange traded securities and exchange-based derivatives. Level 2. Inputs, other than quoted prices included within Level 1, which are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. Financial assets and liabilities utilizing Level 2 inputs include fixed income securities, non-exchange based derivatives, mutual funds, and fair-value hedges. Level 3. Unobservable inputs in which there is little or no market data for the asset or liability which requires the reporting entity to develop its own assumptions. Financial assets and liabilities utilizing Level 3 inputs include infrequently-traded, non-exchange-based derivatives and commingled investment funds, and are measured using present value pricing models. The Company determines the level in the fair value hierarchy within which each fair value measurement falls in its entirety, based on the lowest level input that is significant to the fair value measurement in its entirety. In determining the appropriate levels, the Company performs an analysis of the assets and liabilities at each reporting period end. The carrying amounts of financial instruments (consisting of cash, cash equivalents, advances on research grants and accounts payable and accrued expenses) are considered by the Company to be representative of the respective fair values of these instruments due to the short-term nature of those instruments. With respect to the note payable to SY Corporation and the convertible notes payable, management does not believe that the credit markets have materially changed for these types of borrowings since the original borrowing date. The Company considers the carrying amounts of the notes payable to officers, inclusive of accrued interest, to be representative of the respective fair values of such instruments due to the short-term nature of those instruments and their terms. |
Convertible Notes Payable | Convertible Notes Payable Convertible notes are evaluated to determine if they should be recorded at amortized cost. To the extent that there are associated warrants or a beneficial conversion feature, the convertible notes and warrants are evaluated to determine if there are embedded derivatives to be identified, bifurcated and valued at fair value in connection with and at the time of such financing. |
Notes Exchanges | Notes Exchanges In cases where debt or other liabilities are exchanged for equity, the Company compares the carrying value of debt, inclusive of accrued interest, if applicable, being exchanged, to the fair value of the equity issued and records any loss or gain as a result of such exchange. See Note 4. Notes Payable. |
Extinguishment of Debt | Extinguishment of Debt The Company accounts for the extinguishment of debt in accordance with GAAP by comparing the carrying value of the debt to the fair value of consideration paid or assets given up and recognizing a loss or gain in the condensed consolidated statement of operations in the amount of the difference in the period in which such transaction occurs. |
Equipment | Equipment Equipment is recorded at cost and depreciated on a straight-line basis over their estimated useful lives, which range from three to five years. All equipment was fully depreciated as of March 31, 2019. |
Prepaid Insurance | Prepaid Insurance Long-term prepaid insurance represents the premium paid in March 2014 for directors’ and officers’ insurance tail coverage, which is being amortized on a straight-line basis over the policy period of six years. The amount amortizable in the ensuing twelve-month period is recorded as a current asset in the Company’s condensed consolidated balance sheet at each reporting date. As of March 31, 2019, all such prepaid amounts have been reclassified as current since the policy will expire within one year. |
Impairment of Long-lived Assets | Impairment of Long-Lived Assets The Company reviews its long-lived assets, including long-term prepaid insurance, for impairment whenever events or changes in circumstances indicate that the total amount of an asset may not be recoverable, but at least annually. An impairment loss is recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition is less than the asset’s carrying amount. The Company has not deemed any long-lived assets as impaired at March 31, 2019. |
Stock-based Awards | Stock-Based Awards The Company periodically issues common stock and stock options to officers, directors, outside consultants and vendors for services rendered. Such issuances vest and expire according to terms established at the issuance date of each grant. The Company accounts for stock-based payments to officers, directors, outside consultants and vendors by measuring the cost of services received in exchange for equity awards based on the grant date fair value of the awards, with the cost recognized as compensation expense on the straight-line basis in the Company’s consolidated financial statements over the vesting period of the awards. The fair value of stock options granted as stock-based payments is determined utilizing the Black-Scholes option-pricing model, and is affected by several variables, the most significant of which are the life of the equity award, the exercise price of the stock option as compared to the fair market value of the common stock on the grant date, and the estimated volatility of the common stock over the term of the equity award. Estimated volatility is based on the historical volatility of the Company’s common stock. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The fair market value of common stock is determined by reference to the quoted market price of the Company’s common stock. There were no stock or stock option grants during the three-months ended March 31, 2019. For stock options requiring an assessment of value during the three-months ended March 31, 2018, the fair value of each stock option award was estimated using the Black-Scholes option-pricing model using the following assumptions: Risk-free interest rate 2.56 % Expected dividend yield 0 % Expected volatility 185.41 % Expected life 4.7 The Company recognizes the fair value of stock-based payments in general and administrative costs and in research and development costs, as appropriate, in the Company’s condensed consolidated statements of operations. The Company issues new shares of common stock to satisfy stock option and warrant exercises. There were no stock options exercised during the three-months ended March 31, 2019 and 2018. |
Income Taxes | Income Taxes The Company accounts for income taxes under an asset and liability approach for financial accounting and reporting for income taxes. Accordingly, the Company recognizes deferred tax assets and liabilities for the expected impact of differences between the financial statements and the tax basis of assets and liabilities. The Company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. In the event the Company was to determine that it would be able to realize its deferred tax assets in the future in excess of its recorded amount, an adjustment to the deferred tax assets would be credited to operations in the period such determination was made. Likewise, should the Company determine that it would not be able to realize all or part of its deferred tax assets in the future, an adjustment to the deferred tax assets would be charged to operations in the period such determination was made. Pursuant to Internal Revenue Code Sections 382 and 383, use of the Company’s net operating loss and credit carryforwards may be limited if a cumulative change in ownership of more than 50% occurs within any three-year period since the last ownership change. The Company may have had a change in control under these Sections. However, the Company does not anticipate performing a complete analysis of the limitation on the annual use of the net operating loss and tax credit carryforwards until the time that it anticipates it will be able to utilize these tax attributes. As of March 31, 2019, the Company did not have any unrecognized tax benefits related to various federal and state income tax matters and does not anticipate any material amount of unrecognized tax benefits within the next 12 months. The Company is subject to U.S. federal income taxes and income taxes of various state tax jurisdictions. As the Company’s net operating losses have yet to be utilized, all previous tax years remain open to examination by Federal authorities and other jurisdictions in which the Company currently operates or has operated in the past. The Company accounts for uncertainties in income tax law under a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns as prescribed by GAAP. The tax effects of a position are recognized only if it is “more-likely-than-not” to be sustained by the taxing authority as of the reporting date. If the tax position is not considered “more-likely-than-not” to be sustained, then no benefits of the position are recognized. As of March 31, 2019, the Company had not recorded any liability for uncertain tax positions. In subsequent periods, any interest and penalties related to uncertain tax positions will be recognized as a component of income tax expense. |
Foreign Currency Transactions | Foreign Currency Transactions The note payable to SY Corporation, which is denominated in a foreign currency (the South Korean Won), is translated into the Company’s functional currency (the United States Dollar) at the exchange rate on the balance sheet date. The foreign currency exchange gain or loss resulting from translation is recognized in the related condensed consolidated statements of operations. |
Research and Development | Research and Development Research and development costs include compensation paid to management directing the Company’s research and development activities, and fees paid to consultants and outside service providers and organizations (including research institutes at universities), and other expenses relating to the acquisition, design, development and clinical testing of the Company’s treatments and product candidates. Research and development costs incurred by the Company under research grants are expensed as incurred over the life of the underlying contracts, unless the terms of the contract indicate that a different expensing schedule is more appropriate. The Company reviews the status of its research and development contracts on a quarterly basis. On May 6, 2016, the Company made an advance payment to Duke University with respect to the Phase 2A clinical trial of CX1739. At March 31, 2019, an asset balance of $48,912 remained from the advance payment. |
License Agreements | License Agreements Obligations incurred with respect to mandatory payments provided for in license agreements are recognized ratably over the appropriate period, as specified in the underlying license agreement, and are recorded as liabilities in the Company’s condensed consolidated balance sheet, with a corresponding charge to research and development costs in the Company’s condensed consolidated statement of operations. Obligations incurred with respect to milestone payments provided for in license agreements are recognized when it is probable that such milestone will be reached and are recorded as liabilities in the Company’s condensed consolidated balance sheet, with a corresponding charge to research and development costs in the Company’s condensed consolidated statement of operations. Payments of such liabilities are made in the ordinary course of business. |
Patent Costs | Patent Costs Due to the significant uncertainty associated with the successful development of one or more commercially viable products based on the Company’s research efforts and any related patent applications, all patent costs, including patent-related legal and filing fees, are expensed as incurred and recorded as general and administrative expenses. |
Earnings Per Share | Earnings per Share The Company’s computation of earnings per share (“EPS”) includes basic and diluted EPS. Basic EPS is measured as the income (loss) attributable to common stockholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., warrants and options) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Net loss attributable to common stockholders consists of net loss, as adjusted for actual and deemed preferred stock dividends declared, amortized or accumulated. Loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the respective periods. Basic and diluted loss per common share is the same for all periods presented because all warrants and stock options outstanding are anti-dilutive. At March 31, 2019 and 2018, the Company excluded the outstanding securities summarized below, which entitle the holders thereof to acquire shares of common stock, from its calculation of earnings per share, as their effect would have been anti-dilutive. March 31, 2019 2018 Series B convertible preferred stock 11 11 Convertible notes payable 16,893 29,957 Common stock warrants 1,874,828 1,464,415 Common stock options 4,337,609 4,012,929 Total 6,229,341 5,507,312 |
Reclassifications | Reclassifications Certain comparative figures in 2018 have been reclassified to conform to the current quarter’s presentation. These reclassifications were immaterial, both individually and in the aggregate. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2018, the FASB issued Accounting Standards Update No. 2018-07 (“ASU 2018-07”), Compensation-Stock Compensation (Topic 718)—Improvements to Nonemployee Share-Based Payment Accounting. In July 2017, the FASB issued Accounting Standards Update No. 2017-11 (“ASU 2017-11”), Earnings Per Share (Topic 260): Distinguishing Liabilities from Equity (Topic 480): Derivatives and Hedging (Topic 815) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Fair Value of Option Estimated Using Black-Scholes Pricing Model with Valuation Assumptions | For stock options requiring an assessment of value during the three-months ended March 31, 2018, the fair value of each stock option award was estimated using the Black-Scholes option-pricing model using the following assumptions: Risk-free interest rate 2.56 % Expected dividend yield 0 % Expected volatility 185.41 % Expected life 4.7 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | At March 31, 2019 and 2018, the Company excluded the outstanding securities summarized below, which entitle the holders thereof to acquire shares of common stock, from its calculation of earnings per share, as their effect would have been anti-dilutive. March 31, 2019 2018 Series B convertible preferred stock 11 11 Convertible notes payable 16,893 29,957 Common stock warrants 1,874,828 1,464,415 Common stock options 4,337,609 4,012,929 Total 6,229,341 5,507,312 |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Notes Payable | The 2018 and 2019 Convertible Notes consist of the following at March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Principal amount of notes payable $ 190,000 $ 80,000 Original issue discount net of amortization of $8,379 (20,928 ) (27,968 ) Accrued interest payable 3,462 401 $ 172,534 $ 52,433 The remaining outstanding Original Convertible Notes (including those for which default notices have been received) consist of the following at March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Principal amount of notes payable $ 125,000 $ 125,000 Accrued interest payable 67,016 62,233 $ 192,016 $ 187,233 |
Summary of Note Payable to Related Party | Note payable to SY Corporation consists of the following at March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Principal amount of note payable $ 399,774 $ 399,774 Accrued interest payable 327,136 315,307 Foreign currency transaction adjustment 14,717 29,360 $ 741,627 $ 744,441 |
Stockholders' Deficiency (Table
Stockholders' Deficiency (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Warrants Activity | A summary of warrant activity for the three-months ended March 31, 2019 is presented below. Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Warrants outstanding at December 31, 2018 1,783,229 $ 2.20393 Issued 110,000 1.50000 Expired (18,401 ) 5.71706 Warrants outstanding at March 31, 2019 1,874,828 $ 2.12815 2.96 Warrants exercisable at March 31, 2019 1,874,828 $ 2.12815 2.96 A summary of warrant activity for the three-months ended March 31, 2018 is presented below. Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Warrants outstanding at December 31, 2017 1,464,415 $ 2.68146 Issued - - Warrants outstanding at March 31, 2018 1,464,415 $ 2.68146 4.59 Warrants exercisable at March 31, 2018 1,464,415 $ 2.68146 4.59 |
Schedule of Exercise Prices of Common Stock Warrants Outstanding and Exercisable | The exercise prices of common stock warrants outstanding and exercisable are as follows at March 31, 2019: Exercise Price Warrants Outstanding (Shares) Warrants Exercisable (Shares) Expiration Date $ 1.0000 916,217 916,217 September 20, 2022 $ 1.2870 41,002 41,002 April 17, 2019 $ 1.5000 190,000 190,000 December 30, 2023 $ 1.5620 130,284 130,284 December 31, 2021 $ 1.5750 238,814 238,814 April 30, 2023 $ 2.7500 8,000 8000 September 20, 2022 $ 4.8500 5,155 5,155 September 23, 2019 $ 4.8750 108,594 108,594 September 30, 2020 $ 5.0000 5,000 5,000 September 22, 2019 $ 6.8348 145,758 145,758 September 30, 2020 $ 7.9300 86,004 86,004 February 28, 2021 1,874, 828 1,874,828 The exercise prices of common stock warrants outstanding and exercisable are as follows at March 31, 2018: Exercise Price Warrants Outstanding (Shares) Warrants Exercisable (Shares) Expiration Date $ 1.0000 916,217 916,217 September 20, 2022 $ 1.2870 41,002 41,002 April 17, 2019 $ 1.5620 130,284 130,284 December 31, 2021 $ 2.7500 8,000 8000 September 20, 2022 $ 4.8500 5,155 5,155 September 23, 2019 $ 4.8750 108,594 108,594 September 30, 2020 $ 5.0000 5,000 5,000 September 22, 2019 $ 5.1025 10,309 10,309 January 29, 2019 $ 6.5000 8,092 8,092 February 4, 2019 $ 6.8348 145,758 145,758 September 30, 2020 $ 7.9300 86,004 86,004 February 28, 2021 1,464,415 1,464,415 |
Schedule of Exercise Prices of Common Stock Options Outstanding and Exercisable | The exercise prices of common stock options outstanding and exercisable were as follows at March 31, 2019: Exercise Price Options Outstanding (Shares) Options Exercisable (Shares) Expiration Date $ 0.7000 21,677 21,677 November 21, 2023 $ 1.1200 310,388 310,388 April 5, 2023 $ 1.2500 16,762 16,762 December 7, 2022 $ 1.3500 34,000 34,000 July 28, 2022 $ 1.4500 1,849,418 1,849,418 December 9, 2027 $ 1.4500 100,000 100,000 December 9, 2027 $ 2.0000 285,000 285,000 June 30, 2022 $ 2.0000 25,000 25,000 July 26, 2022 $ 3.9000 395,000 395,000 January 17, 2022 $ 4.5000 7,222 7,222 September 2, 2021 $ 5.6875 89,686 89,686 June 30, 2020 $ 5.7500 2,608 2,608 September 12, 2021 $ 6.4025 27,692 27,692 August 18, 2020 $ 6.4025 129,231 129,231 August 18, 2022 $ 6.4025 261,789 261,789 August 18, 2025 $ 6.8250 8,791 8,791 December 11, 2020 $ 7.3775 523,077 523,077 March 31, 2021 $ 8.1250 169,231 169,231 June 30, 2022 $ 13.0000 3,846 3,846 April 14, 2019 $ 13.9750 3,385 3,385 March 14, 2024 $ 15.4700 7,755 7,755 April 8, 2020 $ 15.9250 2,462 2,462 February 28, 2024 $ 16.0500 46,154 46,154 July 17, 2019 $ 16.6400 1,538 1,538 January 29, 2020 $ 19.5000 9,487 9,487 July 17, 2022 $ 19.5000 6,410 6,410 August 10, 2022 4,337,609 4,337,609 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Principal Cash Obligations and Commitments | Employment agreement amounts included in the 2019 column represent amounts contractually due at from April 1, 2019 through September 30, 2019 (six months) when such contracts expire unless extended pursuant to the terms of the contracts. Payments Due By Year Total 2019 2020 2021 2022 2023 License agreements $ 475,000 $ 75,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 Employment agreements (1) 330,600 330,600 - - - - Total $ 805,600 $ 405,600 $ 100,000 $ 100,000 $ 100,000 $ 100,000 (1) The payment of such amounts has been deferred indefinitely, as described above at “Employment Agreements”. 2019 amounts include six-months of employment agreement obligations for Dr. Lippa and Mr. Margolis as their employment contracts renewed on September 30, 2018 and the 2019 obligations include the six months of obligations through September 30, 2019. |
Business (Details Narrative)
Business (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Net losses | $ 540,332 | $ 746,678 | $ 2,591,790 | |
Negative operating cash flows | 137,786 | 140,022 | 427,368 | |
Stockholders' deficiency | $ (6,227,775) | $ (4,977,253) | $ (5,733,255) | $ (4,355,384) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Share granted during period | 16,762 | |||
Value of options granted | ||||
Stock options exercised | ||||
Advance payment on research contract | $ 48,912 | $ 48,912 | ||
Unreimbursed patent fees | $ 17,000 | $ 17,000 | ||
Minimum [Member] | ||||
Estimated useful lives of equipment | P3Y | |||
Maximum [Member] | ||||
Estimated useful lives of equipment | P5Y | |||
CAD [Member] | ||||
Unreimbursed patent fees | $ 23,000 | |||
License Agreements [Member] | CAD [Member] | ||||
Unreimbursed patent fees | $ 23,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Fair Value of Option Estimated Using Black-Scholes Pricing Model with Valuation Assumptions (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Risk-free interest rate | 2.56% |
Expected dividend yield | 0.00% |
Expected volatility | 185.41% |
Expected life | 4 years 8 months 12 days |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | 6,229,341 | 5,507,312 |
Common Stock Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 1,874,828 | 1,464,415 |
Common Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 4,337,609 | 4,012,929 |
Convertible Notes Payable [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 16,893 | 29,957 |
Series B Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 11 | 11 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | Mar. 14, 2019 | Mar. 06, 2019 | Feb. 27, 2019 | Jan. 02, 2019 | Jun. 25, 2012 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2015 | Dec. 31, 2014 |
Debt maturity date | Jun. 25, 2013 | ||||||||||
Interest expense | $ 81,112 | $ 27,273 | |||||||||
Converted into common stock | 16,893 | ||||||||||
Stockholder's percentage | 20.00% | ||||||||||
Percentage of convertible notes payable | 12.00% | ||||||||||
Nine Monthly Installments [Member] | |||||||||||
Debt periodic payments | $ 7,120 | ||||||||||
SY Corporation [Member] | |||||||||||
Debt face amount | $ 400,000 | ||||||||||
Interest expense | $ 11,829 | 11,829 | |||||||||
SY Corporation [Member] | Won [Member] | |||||||||||
Debt face amount | $ 465,000,000 | ||||||||||
Convertible Notes Payable [Member] | |||||||||||
Warrant to purchase shares | 27,936 | ||||||||||
Debt instrument original issue discount | $ 40,518 | $ 38,292 | $ 38,292 | ||||||||
Initial value of note | $ 16,143 | 13,292 | 13,292 | ||||||||
Warrant exercise price | $ 11.375 | ||||||||||
Extended maturity date | Sep. 15, 2016 | ||||||||||
Accrued interest | $ 70,478 | $ 62,635 | $ 62,635 | ||||||||
Dr. Lippa [Member] | |||||||||||
Interest expense | 2,533 | 2,255 | |||||||||
Dr. James S. Manuso [Member] | |||||||||||
Interest expense | $ 3,801 | $ 2,254 | |||||||||
2019 Convertible Notes [Member] | |||||||||||
Debt instrument interest rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | ||||||
Debt maturity date | Apr. 30, 2019 | Apr. 30, 2019 | Apr. 30, 2019 | Feb. 28, 2019 | Feb. 28, 2019 | ||||||
Debt face amount | $ 100,000 | $ 100,000 | $ 100,000 | $ 10,000 | |||||||
Warrant to purchase shares | 110,000 | ||||||||||
Value of warrants to purchase shares | $ 78,780 | ||||||||||
Fair value of convertible note and warrant | 188,780 | ||||||||||
Debt instrument original issue discount | 45,812 | ||||||||||
Initial value of note | 64,188 | ||||||||||
Interest expense | 24,883 | ||||||||||
Additional debt interest expense | $ 1,061 | ||||||||||
Debt instrument, description | The 2019 Convertible Notes that matured on February 28, 2019 were not paid and remain outstanding and continue to accrue interest. The 2019 Convertible Notes that matured on April 30, 2019 were not paid and remain outstanding and continue to accrue interest. | ||||||||||
Warrant exercise price | $ 1.50 | ||||||||||
2018 Convertible Notes [Member] | Investor [Member] | |||||||||||
Debt instrument interest rate | 10.00% | 10.00% | 10.00% | ||||||||
Debt maturity date | Feb. 28, 2019 | ||||||||||
Debt face amount | $ 80,000 | $ 80,000 | |||||||||
Warrant to purchase shares | 80,000 | 80,000 | |||||||||
Value of warrants to purchase shares | $ 68,025 | $ 68,025 | |||||||||
Fair value of convertible note and warrant | 148,025 | ||||||||||
Debt instrument original issue discount | 36,347 | 36,347 | |||||||||
Initial value of note | $ 43,653 | 43,653 | |||||||||
Interest expense | $ 27,969 | 8,379 | |||||||||
Additional debt interest expense | $ 2,000 | $ 401 | |||||||||
Warrant exercise price | $ 1.50 | $ 1.50 | |||||||||
Convertible Notes Payable [Member] | Investor [Member] | |||||||||||
Debt instrument interest rate | 10.00% | 10.00% | |||||||||
Debt face amount | $ 579,500 | $ 579,500 | |||||||||
Warrant to purchase shares | 50,945 | 50,945 | |||||||||
Shares issued price per share | $ 11.3750 | $ 11.3750 | |||||||||
Warrants exercisable fixed price per share | $ 11.3750 | $ 11.3750 | |||||||||
Convertible Notes [Member] | |||||||||||
Debt instrument interest rate | 12.00% | ||||||||||
Debt periodic payments | $ 40,518 | $ 38,292 | |||||||||
Accrued interest | 16,143 | 13,292 | $ 13,292 | ||||||||
Original Convertible Notes [Member] | |||||||||||
Accrued interest | $ 67,016 | $ 62,233 | 62,233 | ||||||||
Converted into common stock | 16,881 | 16,460 | |||||||||
Number of conversion into common shares attributable to accrued interest | 5,892 | 5,471 | |||||||||
Other Short-Term Notes Payable [Member] | |||||||||||
Debt instrument interest rate | 9.00% | ||||||||||
Insurance premium | $ 61,746 | ||||||||||
Short term borrowings | $ 61,746 | $ 8,907 | $ 8,907 |
Notes Payable - Schedule of Con
Notes Payable - Schedule of Convertible Notes Payable (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Convertible notes payable, gross | $ 364,550 | $ 239,666 |
2018 and 2019 Convertible Notes [Member] | ||
Principal amount of notes payable | 190,000 | 80,000 |
Original issue discount net of amortization of $8,379 | (20,928) | (27,968) |
Accrued interest payable | 3,462 | 401 |
Convertible notes payable, gross | 172,534 | 52,433 |
Original Convertible Notes [Member] | ||
Principal amount of notes payable | 125,000 | 125,000 |
Accrued interest payable | 67,016 | 62,233 |
Convertible notes payable, gross | $ 192,016 | $ 187,233 |
Notes Payable - Schedule of C_2
Notes Payable - Schedule of Convertible Notes Payable (Details) (Parenthetical) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Net of amortization discount | $ 52,851 | ||
2018 and 2019 Convertible Notes [Member] | |||
Net of amortization discount | $ 8,379 | $ 8,379 |
Notes Payable - Summary of Note
Notes Payable - Summary of Note Payable to Related Party (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Total note payable | $ 741,627 | $ 744,441 |
SY Corporation [Member] | ||
Principal amount of note payable | 399,774 | 399,774 |
Accrued interest payable | 327,136 | 315,307 |
Foreign currency transaction adjustment | 14,717 | 29,360 |
Total note payable | $ 741,627 | $ 744,441 |
Stockholders' Deficiency (Detai
Stockholders' Deficiency (Details Narrative) - USD ($) | Dec. 28, 2018 | Dec. 09, 2017 | Jan. 17, 2017 | Mar. 31, 2016 | Aug. 18, 2015 | Jun. 30, 2015 | Mar. 18, 2014 | Aug. 10, 2012 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Preferred stock, shares authorized | 5,000,000 | ||||||||||
Preferred stock, par value | $ 0.001 | ||||||||||
Preferred stock voting | Cumulative Convertible Preferred Stock (non-voting, "9% Preferred Stock") | ||||||||||
Preferred stock, shares undesignated | 3,505,800 | 3,505,800 | |||||||||
Common stock, shares outstanding | 443,205 | 3,872,076 | 3,872,076 | ||||||||
Common stock available for future issuances | 10,726,416 | ||||||||||
Share granted during period | 16,762 | ||||||||||
Stock option period | 4 years 8 months 12 days | ||||||||||
Sold units for aggregate cash consideration | 179,747 | ||||||||||
Fair value of common stock | $ 3,271,402 | ||||||||||
Purchase price per share | $ 18.2000 | ||||||||||
Percentage of common stock issued | 41.00% | ||||||||||
Issue additional contingent consideration | 56,351 | ||||||||||
Common stock, shares authorized | 65,000,000 | 65,000,000 | |||||||||
Common stock, shares issued | 3,872,076 | 3,872,076 | |||||||||
Number of warrants, outstanding, exercisable | 1,874,828 | 1,464,415 | 1,783,229 | ||||||||
Debt conversion, shares issued | 16,893 | ||||||||||
Issuance of contingent shares of common stock | 6,497 | ||||||||||
Number of common stock shares unreserved for future issuance | 50,401,507 | ||||||||||
Pier Merger Agreement [Member] | |||||||||||
Issuance of contingent shares of common stock | 6,497 | ||||||||||
Officer and Director [Member] | |||||||||||
Share granted during period | 22,651 | ||||||||||
Stock options exercise price | $ 19.5000 | ||||||||||
2014 Equity Plan [Member] | |||||||||||
Share granted during period | 325,025 | ||||||||||
2015 Stock and Stock Option Plan [Member] | Board of Directors [Member] | |||||||||||
Option issued to purchase number of common stock | 461,538 | ||||||||||
Stock option period | 10 years | ||||||||||
2015 Equity Plan [Member] | |||||||||||
Fair value of market price per share | $ 0.8500 | ||||||||||
Stock warrant intrinsic value of exercisable | $ 3,252 | ||||||||||
Deferred compensation expense | |||||||||||
2015 Equity Plan [Member] | Board of Directors [Member] | |||||||||||
Share granted during period | 8,985,260 | 6,985,260 | 3,038,461 | 1,538,461 | 769,231 | ||||||
2015 Stock and Stock Option Plan [Member] | Board of Directors [Member] | |||||||||||
Share granted during period | 1,500,000 | ||||||||||
2015 Stock and Stock Option Plan [Member] | Board of Directors [Member] | Minimum [Member] | |||||||||||
Share granted during period | 1,538,461 | ||||||||||
2015 Stock and Stock Option Plan [Member] | Board of Directors [Member] | Maximum [Member] | |||||||||||
Share granted during period | 3,038,461 | ||||||||||
2015 Stock and Stock Option Plan [Member] | Board of Directors [Member] | |||||||||||
Share granted during period | 8,985,260 | 6,985,260 | |||||||||
Series B Convertible Preferred Stock [Member] | |||||||||||
Preferred stock, shares authorized | 37,500 | 37,500 | |||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | |||||||||
Preferred stock, shares designated | 37,500 | 37,500 | |||||||||
Preferred stock shares issuable upon conversion, per share | $ 0.00030 | $ 0.00030 | |||||||||
Debt instrument, conversion price per share | $ 2,208.375 | $ 2,208.375 | |||||||||
Preferred stock shares issuable upon conversion | 11 | 11 | |||||||||
Preferred stock redemption amount | $ 25,001 | $ 25,001 | |||||||||
Redeemed preferred stock price per share | $ 0.6667 | $ 0.6667 | |||||||||
Series B Convertible Preferred Stock [Member] | Stock Option [Member] | |||||||||||
Conversion of stock | 4,337,609 | ||||||||||
Series B Convertible Preferred Stock [Member] | 2014 Plan [Member] | |||||||||||
Common stock available for future issuances | 63,236 | ||||||||||
Series B Convertible Preferred Stock [Member] | 2015 Plan [Member] | |||||||||||
Common stock available for future issuances | 4,427,343 | ||||||||||
Series A Junior Participating Preferred Stock [Member] | |||||||||||
Preferred stock, shares designated | 205,000 | 205,000 | |||||||||
Series G 1.5% Convertible Preferred Stock [Member] | |||||||||||
Preferred stock, shares designated | 1,700 | 1,700 | |||||||||
9% Cumulative Convertible Preferred Stock [Member] | |||||||||||
Preferred stock, shares designated | 1,250,000 | 1,250,000 | |||||||||
Common Stock [Member] | |||||||||||
Common stock available for future issuances | 50,401,507 | ||||||||||
Common Stock Warrants [Member] | |||||||||||
Fair value of market price per share | $ 0.85000 | $ 1.3100 | |||||||||
Stock warrant intrinsic value of exercisable | $ 284,970 |
Stockholders' Deficiency - Sche
Stockholders' Deficiency - Schedule of Warrants Activity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | ||
Number of Warrants, Outstanding, Beginning balance | 1,783,229 | 1,464,415 |
Number of Warrants, Issued | 110,000 | |
Number of Warrants, Expired | (18,401) | |
Number of Warrants, Outstanding, Ending balance | 1,874,828 | 1,464,415 |
Number of Warrants, Outstanding, Exercisable Ending balance | 1,874,828 | 1,464,415 |
Weighted Average Exercise Price, Outstanding, Beginning | $ 2.20393 | $ 2.68146 |
Weighted Average Exercise Price, Issued | 1.50000 | |
Weighted Average Exercise Price, Expired | 5.71706 | |
Weighted Average Exercise Price, Outstanding, Ending | 2.12815 | 2.68146 |
Weighted Average Exercise Price, Exercisable, Ending | $ 2.12815 | $ 2.68146 |
Warrants outstanding ,Weighted Average Remaining Contractual Life (in Years), Ending | 2 years 11 months 15 days | 4 years 7 months 2 days |
Warrants exercisable, Weighted Average Remaining Contractual Life (in Years), Ending | 2 years 11 months 15 days | 4 years 7 months 2 days |
Stockholders' Deficiency - Sc_2
Stockholders' Deficiency - Schedule of Exercise Prices of Common Stock Warrants Outstanding and Exercisable (Details) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Warrants, Outstanding (Shares) | 1,874,828 | 1,783,229 | 1,464,415 | 1,464,415 |
Warrants, Exercisable (Shares) | 1,874,828 | 1,783,229 | 1,464,415 | |
Warrants [Member] | ||||
Warrants, Outstanding (Shares) | 1,874,828 | 1,464,415 | ||
Warrants, Exercisable (Shares) | 1,874,828 | 1,464,415 | ||
Exercise Price Range One [Member] | Warrants [Member] | ||||
Warrants, Exercise Price | $ 1 | $ 1 | ||
Warrants, Outstanding (Shares) | 916,217 | 916,217 | ||
Warrants, Exercisable (Shares) | 916,217 | 916,217 | ||
Warrants, Expiration Date | Sep. 20, 2022 | Sep. 20, 2022 | ||
Exercise Price Range Two [Member] | Warrants [Member] | ||||
Warrants, Exercise Price | $ 1.2870 | $ 1.2870 | ||
Warrants, Outstanding (Shares) | 41,002 | 41,002 | ||
Warrants, Exercisable (Shares) | 41,002 | 41,002 | ||
Warrants, Expiration Date | Apr. 17, 2019 | Apr. 17, 2019 | ||
Exercise Price Range Three [Member] | Warrants [Member] | ||||
Warrants, Exercise Price | $ 1.5000 | $ 1.5620 | ||
Warrants, Outstanding (Shares) | 190,000 | 130,284 | ||
Warrants, Exercisable (Shares) | 190,000 | 130,284 | ||
Warrants, Expiration Date | Dec. 30, 2023 | Dec. 31, 2021 | ||
Exercise Price Range Four [Member] | Warrants [Member] | ||||
Warrants, Exercise Price | $ 1.5620 | $ 2.7500 | ||
Warrants, Outstanding (Shares) | 130,284 | 8,000 | ||
Warrants, Exercisable (Shares) | 130,284 | 8,000 | ||
Warrants, Expiration Date | Dec. 31, 2021 | Sep. 20, 2022 | ||
Exercise Price Range Five [Member] | Warrants [Member] | ||||
Warrants, Exercise Price | $ 1.5750 | $ 4.8500 | ||
Warrants, Outstanding (Shares) | 238,814 | 5,155 | ||
Warrants, Exercisable (Shares) | 238,814 | 5,155 | ||
Warrants, Expiration Date | Apr. 30, 2023 | Sep. 23, 2019 | ||
Exercise Price Range Six [Member] | Warrants [Member] | ||||
Warrants, Exercise Price | $ 2.7500 | $ 4.8750 | ||
Warrants, Outstanding (Shares) | 8,000 | 108,594 | ||
Warrants, Exercisable (Shares) | 8,000 | 108,594 | ||
Warrants, Expiration Date | Sep. 20, 2022 | Sep. 30, 2020 | ||
Exercise Price Range Seven [Member] | Warrants [Member] | ||||
Warrants, Exercise Price | $ 4.8500 | $ 5 | ||
Warrants, Outstanding (Shares) | 5,155 | 5,000 | ||
Warrants, Exercisable (Shares) | 5,155 | 5,000 | ||
Warrants, Expiration Date | Sep. 23, 2019 | Sep. 22, 2019 | ||
Exercise Price Range Eight [Member] | Warrants [Member] | ||||
Warrants, Exercise Price | $ 4.8750 | $ 5.1025 | ||
Warrants, Outstanding (Shares) | 108,594 | 10,309 | ||
Warrants, Exercisable (Shares) | 108,594 | 10,309 | ||
Warrants, Expiration Date | Sep. 30, 2020 | Jan. 29, 2019 | ||
Exercise Price Range Nine [Member] | Warrants [Member] | ||||
Warrants, Exercise Price | $ 5 | $ 6.5000 | ||
Warrants, Outstanding (Shares) | 5,000 | 8,092 | ||
Warrants, Exercisable (Shares) | 5,000 | 8,092 | ||
Warrants, Expiration Date | Sep. 22, 2019 | Feb. 4, 2019 | ||
Exercise Price Range Ten [Member] | Warrants [Member] | ||||
Warrants, Exercise Price | $ 6.8348 | $ 6.8348 | ||
Warrants, Outstanding (Shares) | 145,758 | 145,758 | ||
Warrants, Exercisable (Shares) | 145,758 | 145,758 | ||
Warrants, Expiration Date | Sep. 30, 2020 | Sep. 30, 2020 | ||
Exercise Price Range Eleven [Member] | Warrants [Member] | ||||
Warrants, Exercise Price | $ 7.9300 | $ 7.9300 | ||
Warrants, Outstanding (Shares) | 86,004 | 86,004 | ||
Warrants, Exercisable (Shares) | 86,004 | 86,004 | ||
Warrants, Expiration Date | Feb. 28, 2021 | Feb. 28, 2021 |
Stockholders' Deficiency - Sc_3
Stockholders' Deficiency - Schedule of Exercise Prices of Common Stock Options Outstanding and Exercisable (Details) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Options Outstanding (Shares) | 4,337,609 |
Options Exercisable (Shares) | 4,337,609 |
Stock Option One [Member] | |
Options Exercise Price | $ / shares | $ 0.7000 |
Options Outstanding (Shares) | 21,677 |
Options Exercisable (Shares) | 21,677 |
Options, Expiration Date | Nov. 21, 2023 |
Stock Option Two [Member] | |
Options Exercise Price | $ / shares | $ 1.1200 |
Options Outstanding (Shares) | 310,388 |
Options Exercisable (Shares) | 310,388 |
Options, Expiration Date | Apr. 5, 2023 |
Stock Option Three [Member] | |
Options Exercise Price | $ / shares | $ 1.2500 |
Options Outstanding (Shares) | 16,762 |
Options Exercisable (Shares) | 16,762 |
Options, Expiration Date | Dec. 7, 2022 |
Stock Option Four [Member] | |
Options Exercise Price | $ / shares | $ 1.3500 |
Options Outstanding (Shares) | 34,000 |
Options Exercisable (Shares) | 34,000 |
Options, Expiration Date | Jul. 28, 2022 |
Stock Option Five [Member] | |
Options Exercise Price | $ / shares | $ 1.4500 |
Options Outstanding (Shares) | 1,849,418 |
Options Exercisable (Shares) | 1,849,418 |
Options, Expiration Date | Dec. 9, 2027 |
Stock Option Six [Member] | |
Options Exercise Price | $ / shares | $ 1.4500 |
Options Outstanding (Shares) | 100,000 |
Options Exercisable (Shares) | 100,000 |
Options, Expiration Date | Dec. 9, 2027 |
Stock Option Seven [Member] | |
Options Exercise Price | $ / shares | $ 2 |
Options Outstanding (Shares) | 285,000 |
Options Exercisable (Shares) | 285,000 |
Options, Expiration Date | Jun. 30, 2022 |
Stock Option Eight [Member] | |
Options Exercise Price | $ / shares | $ 2 |
Options Outstanding (Shares) | 25,000 |
Options Exercisable (Shares) | 25,000 |
Options, Expiration Date | Jul. 26, 2022 |
Stock Option Nine [Member] | |
Options Exercise Price | $ / shares | $ 3.9000 |
Options Outstanding (Shares) | 395,000 |
Options Exercisable (Shares) | 395,000 |
Options, Expiration Date | Jan. 17, 2022 |
Stock Option Ten [Member] | |
Options Exercise Price | $ / shares | $ 4.5000 |
Options Outstanding (Shares) | 7,222 |
Options Exercisable (Shares) | 7,222 |
Options, Expiration Date | Sep. 2, 2021 |
Stock Option Eleven [Member] | |
Options Exercise Price | $ / shares | $ 5.6875 |
Options Outstanding (Shares) | 89,686 |
Options Exercisable (Shares) | 89,686 |
Options, Expiration Date | Jun. 30, 2020 |
Stock Option Twelve[Member] | |
Options Exercise Price | $ / shares | $ 5.7500 |
Options Outstanding (Shares) | 2,608 |
Options Exercisable (Shares) | 2,608 |
Options, Expiration Date | Sep. 12, 2021 |
Stock Option Thirteen [Member] | |
Options Exercise Price | $ / shares | $ 6.4025 |
Options Outstanding (Shares) | 27,692 |
Options Exercisable (Shares) | 27,692 |
Options, Expiration Date | Aug. 18, 2020 |
Stock Option Fourteen [Member] | |
Options Exercise Price | $ / shares | $ 6.4025 |
Options Outstanding (Shares) | 129,231 |
Options Exercisable (Shares) | 129,231 |
Options, Expiration Date | Aug. 18, 2022 |
Stock Option Fifteen [Member] | |
Options Exercise Price | $ / shares | $ 6.4025 |
Options Outstanding (Shares) | 261,789 |
Options Exercisable (Shares) | 261,789 |
Options, Expiration Date | Aug. 18, 2025 |
Stock Option Sixteen [Member] | |
Options Exercise Price | $ / shares | $ 6.8250 |
Options Outstanding (Shares) | 8,791 |
Options Exercisable (Shares) | 8,791 |
Options, Expiration Date | Dec. 11, 2020 |
Stock Option Seventeen [Member] | |
Options Exercise Price | $ / shares | $ 7.3775 |
Options Outstanding (Shares) | 523,077 |
Options Exercisable (Shares) | 523,077 |
Options, Expiration Date | Mar. 31, 2021 |
Stock Option Eighteen [Member] | |
Options Exercise Price | $ / shares | $ 8.1250 |
Options Outstanding (Shares) | 169,231 |
Options Exercisable (Shares) | 169,231 |
Options, Expiration Date | Jun. 30, 2022 |
Stock Option Nineteen [Member] | |
Options Exercise Price | $ / shares | $ 13 |
Options Outstanding (Shares) | 3,846 |
Options Exercisable (Shares) | 3,846 |
Options, Expiration Date | Apr. 14, 2019 |
Stock Option Twenty [Member] | |
Options Exercise Price | $ / shares | $ 13.9750 |
Options Outstanding (Shares) | 3,385 |
Options Exercisable (Shares) | 3,385 |
Options, Expiration Date | Mar. 14, 2024 |
Stock Option Twenty One [Member] | |
Options Exercise Price | $ / shares | $ 15.4700 |
Options Outstanding (Shares) | 7,755 |
Options Exercisable (Shares) | 7,755 |
Options, Expiration Date | Apr. 8, 2020 |
Stock Option Twenty Two [Member] | |
Options Exercise Price | $ / shares | $ 15.9250 |
Options Outstanding (Shares) | 2,462 |
Options Exercisable (Shares) | 2,462 |
Options, Expiration Date | Feb. 28, 2024 |
Stock Option Twenty Three [Member] | |
Options Exercise Price | $ / shares | $ 16.0500 |
Options Outstanding (Shares) | 46,154 |
Options Exercisable (Shares) | 46,154 |
Options, Expiration Date | Jul. 17, 2019 |
Stock Option Twenty Four [Member] | |
Options Exercise Price | $ / shares | $ 16.6400 |
Options Outstanding (Shares) | 1,538 |
Options Exercisable (Shares) | 1,538 |
Options, Expiration Date | Jan. 29, 2020 |
Stock Option Twenty Five [Member] | |
Options Exercise Price | $ / shares | $ 19.5000 |
Options Outstanding (Shares) | 9,487 |
Options Exercisable (Shares) | 9,487 |
Options, Expiration Date | Jul. 17, 2022 |
Stock Option Twenty Six [Member] | |
Options Exercise Price | $ / shares | $ 19.5000 |
Options Outstanding (Shares) | 6,410 |
Options Exercisable (Shares) | 6,410 |
Options, Expiration Date | Aug. 10, 2022 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) | Feb. 26, 2018USD ($) | Jan. 18, 2017USD ($) | Jul. 21, 2016USD ($) | Jan. 12, 2016USD ($) | Jan. 12, 2016CAD ($) | Aug. 18, 2015USD ($)shares | Jun. 30, 2015USD ($) | Oct. 15, 2014USD ($) | Jun. 27, 2014USD ($) | Mar. 31, 2019USD ($)shares | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Jan. 31, 2018USD ($) | Jan. 31, 2018CAD ($) |
Unreimbursed patent fees | $ 17,000 | $ 17,000 | ||||||||||||
Due and payable investment banking services | $ 225,000 | |||||||||||||
Arbitrator awarded amount | $ 146,082 | |||||||||||||
Attorneys' fees and costs | $ 47,937 | |||||||||||||
Percentage of annual bonus from base salary | 4.50% | |||||||||||||
Accrued interest | $ 7,470 | 9,652 | ||||||||||||
Stock options to purchase | shares | 4,337,609 | |||||||||||||
Principal cash obligations and commitments | $ 805,600 | |||||||||||||
Payment for litigation | 100,000 | |||||||||||||
Employment Agreements [Member] | Tranche One [Member] | ||||||||||||||
Cash bonuses | $ 15,000 | |||||||||||||
Excess of financing cost | 100,000 | |||||||||||||
Employment Agreements [Member] | Tranche Two [Member] | ||||||||||||||
Cash bonuses | 15,000 | |||||||||||||
Excess of financing cost | 200,000 | |||||||||||||
Employment Agreements [Member] | Tranche Three [Member] | ||||||||||||||
Cash bonuses | 30,000 | |||||||||||||
Excess of financing cost | 250,000 | |||||||||||||
Recurring Cash Compensation Accrued Pursuant Amended Agreement [Member] | ||||||||||||||
Cash compensation expense | 80,400 | $ 80,400 | $ 321,600 | |||||||||||
University of Alberta License Agreement [Member] | ||||||||||||||
Unreimbursed patent fees | $ 17,000 | |||||||||||||
University of Illinois 2014 Exclusive License Agreement [Member] | ||||||||||||||
License agreement effective date | Sep. 18, 2014 | |||||||||||||
License fee | $ 25,000 | |||||||||||||
Outstanding patent costs | $ 15,840 | |||||||||||||
Percentage of royalty on net sale | 4.00% | |||||||||||||
Percentage of payment on sub licensee revenue | 12.50% | |||||||||||||
Minimum annual royalty payment amount | $ 100,000 | |||||||||||||
Royalty due date | Feb. 28, 2019 | |||||||||||||
Charge to operations with stock options | $ 100,000 | 25,000 | ||||||||||||
University of Illinois 2014 Exclusive License Agreement [Member] | Research and Development Expenses [Member] | ||||||||||||||
Minimum annual royalty payment amount | 250,000 | |||||||||||||
University of Illinois 2014 Exclusive License Agreement [Member] | Due Within Five Days After Dosing of First Patient Phase Three Human Clinical Trial [Member] | ||||||||||||||
Payment for sale of product | 350,000 | |||||||||||||
University of Illinois 2014 Exclusive License Agreement [Member] | Due Within Five Days After First New Drug Application Filing [Member] | ||||||||||||||
Payment for sale of product | 500,000 | |||||||||||||
University of Illinois 2014 Exclusive License Agreement [Member] | Due Within Twelve Months of First Commercial Sale Member [Member] | ||||||||||||||
Payment for sale of product | 1,000,000 | |||||||||||||
Neuroscience and Mental Health Institute at University of Alberta [Member] | ||||||||||||||
Research grants award amount | $ 111,000 | |||||||||||||
Additional cost budgeted under research grant | 65,000 | |||||||||||||
Funding cash installments | 16,000 | |||||||||||||
Payments to patent costs | 15,000 | |||||||||||||
Underwrite additional budgeted costs | $ 15,000 | |||||||||||||
Accounts payable | $ 16,207 | |||||||||||||
Foreign conversion exchange rate | 0.76 | 0.76 | ||||||||||||
Jeff E. Margolis [Member] | Employment Agreements [Member] | ||||||||||||||
Cash bonuses | 60,000 | |||||||||||||
Minimum [Member] | Jeff E. Margolis [Member] | Employment Agreements [Member] | ||||||||||||||
Cash bonuses | $ 15,000 | |||||||||||||
Maximum [Member] | University of Illinois 2014 Exclusive License Agreement [Member] | First Sale Of Product [Member] | ||||||||||||||
Minimum annual royalty payment amount | 150,000 | |||||||||||||
Maximum [Member] | University of Illinois 2014 Exclusive License Agreement [Member] | First Commercial Sale Of Product [Member] | ||||||||||||||
Minimum annual royalty payment amount | 200,000 | |||||||||||||
Dr. Arnold S.Lippa [Member] | ||||||||||||||
Percentage of annual bonus from base salary | 50.00% | |||||||||||||
Cash compensation expense | $ 300,000 | 84,900 | 84,900 | |||||||||||
Stock options to purchase | shares | 30,769 | |||||||||||||
Health plan for employees expense | $ 1,200 | |||||||||||||
Maximum health coverage amount per month | 1,000 | |||||||||||||
Mr Margolis [Member] | ||||||||||||||
Cash compensation expense | $ 195,000 | |||||||||||||
Stock options to purchase | shares | 30,769 | |||||||||||||
Health plan for employees expense | $ 1,200 | |||||||||||||
Maximum health coverage amount per month | 1,000 | |||||||||||||
Mr Margolis [Member] | Minimum [Member] | ||||||||||||||
Bonuses | 65,000 | |||||||||||||
Mr Margolis [Member] | Maximum [Member] | ||||||||||||||
Bonuses | $ 125,000 | |||||||||||||
Dr. Manuso, Dr. Lippa, Mr. Margolis and Mr. Weingarten [Member] | ||||||||||||||
Net proceeds from offering cost | 2,000,000 | |||||||||||||
DNA Healthlink, Inc [Member] | Richard Purcell [Member] | ||||||||||||||
Cash fee | $ 12,500 | |||||||||||||
Cash compensation expense | 37,500 | $ 37,500 | ||||||||||||
CAD [Member] | ||||||||||||||
Unreimbursed patent fees | 23,000 | |||||||||||||
CAD [Member] | University of Alberta License Agreement [Member] | ||||||||||||||
Unreimbursed patent fees | $ 23,000 | |||||||||||||
CAD [Member] | Neuroscience and Mental Health Institute at University of Alberta [Member] | ||||||||||||||
Research grants award amount | $ 146,000 | |||||||||||||
Additional cost budgeted under research grant | 85,000 | |||||||||||||
Funding cash installments | 21,000 | |||||||||||||
Payments to patent costs | 20,000 | |||||||||||||
Underwrite additional budgeted costs | $ 20,000 | |||||||||||||
Accounts payable | $ 21,222 | |||||||||||||
Foreign conversion exchange rate | 1 | 1 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Principal Cash Obligations and Commitments (Details) | Mar. 31, 2019USD ($) | |
2019 | $ 405,600 | |
2020 | 100,000 | |
2021 | 100,000 | |
2022 | 100,000 | |
2023 | 100,000 | |
Total | 805,600 | |
License Agreements [Member] | ||
2019 | 75,000 | |
2020 | 100,000 | |
2021 | 100,000 | |
2022 | 100,000 | |
2023 | 100,000 | |
Total | 475,000 | |
Employment and Consulting Agreements [Member] | ||
2019 | 330,600 | [1] |
2020 | [1] | |
2021 | [1] | |
2022 | [1] | |
2023 | [1] | |
Total | $ 330,600 | [1] |
[1] | The payment of such amounts has been deferred indefinitely, as described above at "Employment Agreements". 2019 amounts include six-months of employment agreement obligations for Dr. Lippa and Mr. Margolis as their employment contracts renewed on September 30, 2018 and the 2019 obligations include the six months of obligations through September 30, 2019. |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Apr. 24, 2019 | Apr. 15, 2019 | Jun. 25, 2012 | Mar. 31, 2019 |
Debt maturity date | Jun. 25, 2013 | |||
Convertible Notes [Member] | ||||
Debt instrument interest rate | 12.00% | |||
Subsequent Event [Member] | Convertible Notes [Member] | ||||
Debt instrument principal amount | $ 58,500 | |||
Debt maturity date | Apr. 24, 2020 | |||
Debt instrument interest rate | 12.00% | |||
Debt instrument interest rate description | Bearing interest at the rate of 22% per annum. At any time during the period beginning on the date that is 180 days following the date of the note and ending on the later of (i) April 24, 2020 and (ii) the date of payment of the Default Amount (as defined in the note), any outstanding and unpaid amount of the note may be converted into shares of the Company's common stock or securities convertible into the Company's common stock, provided that such conversion would not result in the lender beneficially owning more than 4.99% of the Company's common stock. | |||
Subsequent Event [Member] | Arnold S. Lippa [Member] | ||||
Payment to extend credit for operating expenes | $ 25,000 |