Evolutionary Genomics (FNAM) 10-Q 11 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Mar. 31, 2017shares
Document And Entity Information [Abstract]
Entity Registrant Name	EVOLUTIONARY GENOMICS, INC.
Entity Central Index Key	884,363
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	5,881,898
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,017

Condensed and Consolidated Bala

Condensed and Consolidated Balance Sheets - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current assets
Cash	$ 243,764	$ 2,057,548
Accounts receivable	26,680	9,289
Trading securities	1,557,075	64,299
Prepaid expenses	24,664	22,414
Total current assets	1,852,183	2,153,550
Non-current assets
Property and equipment, net	195,664	205,726
Intangible assets, net	4,042,748	4,043,398
Total non-current assets	4,238,412	4,249,124
Total assets	6,090,595	6,402,674
Current liabilities
Accounts payable and accrued expenses	235,009	46,064
Total current liabilities	235,009	46,064
Long-term liabilities
Deferred tax liability	1,485,683	1,485,683
Total liabilities	1,720,692	1,531,747
Commitments and contingencies
Preferred Stock subject to possible redemption, $0.001 par value, 20,000,000 authorized at March 31, 2017 and December 31, 2016 Series A-1 Convertible Preferred Stock, $0.001 par value; 600,000 shares authorized, 577,063 shares issued and outstanding at March 31, 2017 and December 31, 2016; preference of $3,286,722	3,029,579	3,029,579
Stockholders' equity
Common Stock, $0.001 par value; 780,000,000 shares authorized, 5,881,898 shares issued and outstanding at March 31, 2017 and December 31, 2016	5,882	5,882
Preferred Stock	257,141	196,549
Additional paid-in capital	12,546,265	12,579,212
Accumulated deficit	(11,468,964)	(10,940,295)
Total stockholders' equity	1,340,324	1,841,348
Total liabilities and stockholders' equity	$ 6,090,595	$ 6,402,674

Condensed and Consolidated Bal3

Condensed and Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, authorized shares	20,000,000	20,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized shares	780,000,000	780,000,000
Common stock, issued shares	5,881,898	5,881,898
Common stock, outstanding shares	5,881,898	5,881,898
Series A-1 Convertible Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, authorized shares	600,000	600,000
Preferred stock, issued shares	577,063	577,063
Preferred stock, outstanding shares	577,063	577,063
Preferred stock, liquidation preference	$ 3,286,722

Condensed and Consolidated Stat

Condensed and Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Service and grant revenue	$ 26,680	$ 67,984
Operating expenses
Research and development	369,563	169,584
Salaries and benefits	85,144	40,590
General and administrative	94,129	77,146
Total operating expenses	548,836	287,320
Operating (loss)	(522,156)	(219,336)
Other income (expenses):
Investment income	644	1,200
Realized gain on the sale of investments		8,972
Unrealized gain (loss) on trading securities	(7,157)	(81,852)
Total other (expenses)	(6,513)	(71,680)
Net loss	(528,669)	(291,016)
Preferred stock dividend	(60,592)	(13,484)
Net loss attributable to common stockholders	$ (589,261)	$ (304,500)
Net loss per common share, basic and diluted	$ (0.10)	$ (0.05)
Weighted average common shares outstanding, basic and diluted	5,881,898	5,881,898

Condensed and Consolidated Sta5

Condensed and Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net loss	$ (528,669)	$ (291,016)
Adjustments to reconcile net loss to net cash flows from operating activities
Depreciation and amortization	10,713	7,028
Stock-based compensation	27,645	10,590
Realized gain on the sale of trading securities		(8,972)
Unrealized loss on trading securities	7,157	81,852
Changes in operating assets and liabilities:
Accounts receivable	(17,391)	(2,815)
Prepaid expenses	(2,250)	(15,573)
Accounts payable and accrued expenses	188,945	(113,787)
Billings in excess of costs		(49,022)
Cash flows from operating activities	(313,850)	(381,715)
Cash flows from investing activities:
Proceeds from sale of investments		18,184
Proceeds from sale of investment in VetDC, Inc.		55,000
Purchase of trading securities	(1,499,934)	(2,272,145)
Cash flows from investing activities	(1,499,934)	(2,198,961)
Cash flows from financing activities:
Proceeds from issuance of Preferred Stock, net of offering expense		2,904,033
Cash flows from financing activities		2,904,033
Net change in cash	(1,813,784)	323,357
Cash, beginning of period	2,057,548	3,823
Cash, end of period	$ 243,764	$ 327,180

Business Activity

Business Activity	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Activity	Note 1: Business Activity Evolutionary Genomics, Inc. (the “Company,” “We,” or “Our”) has developed a technology platform, the Adapted Traits Platform (“ATP”), to identify commercially valuable genes that control important traits in animals and plants. We are using the ATP to identify genes to improve crop plant traits such as yield, sugar content, biomass, drought tolerance, and pest/disease resistance. Our platform identifies key genes that have changed successfully to impart new or improved traits. The Company performs its research on behalf of governmental organizations, non-profit foundations, and commercial entities and receives revenue from grants and commercial research contracts. These grants/contracts contain fixed-fee arrangements and may also have licensing provisions upon effective commercialization of research results. Successful commercialization may take many years to produce license royalty payments. Ownership of intellectual property developed in research projects varies from the Company retaining no rights to intellectual property, to joint ownership, to the Company retaining all rights. During 2014, the Company purchased 75.16% of the outstanding stock of Fona, Inc., (“Fona”) a public shell company. Since Fona was a public shell company which does not constitute a business and the purchase was done in contemplation of a reverse merger, the Company accounted for the payment as a distribution to Fona, Inc. shareholders. The Company also entered into an Agreement and Plan of Merger (the “Merger”), which was consummated on October 19, 2015. As a result of the Merger, Evolutionary Genomics, Inc. became a wholly owned subsidiary of Fona. For accounting purposes, the merger was treated as a reverse acquisition with Evolutionary Genomics, Inc. as the acquirer and Fona as the acquired party. Subsequent to the Merger, Fona, Inc. was renamed Evolutionary Genomics, Inc. and our subsidiary was renamed from Evolutionary Genomics, Inc. to EG Crop Science, Inc. On May 9, 2016, we formed ICAM Therapeutics, Inc. (a Delaware corporation) as a wholly owned subsidiary of Evolutionary Genomics, Inc. We have not incurred any transactions in this company nor have we established any business plan for the future.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2: Summary of Significant Accounting Policies Principals of Consolidation Use of Estimates Cash Accounts Receivable: Trading Securities Property and Equipment Long-Lived Assets Intangible Assets Revenue Recognition In our Master Services Agreement with the Bill and Melinda Gates Foundation, we grant them a royalty-free license for use of intellectual property developed in low-income economies and lower-middle-income economies according to the World Bank classification and expressly excludes all of North America and Europe. The Company retains all rights to the use of intellectual property outside of these regions. Income Taxes Under the Income Tax topic of the ASC, in order to recognize an uncertain tax benefit, the taxpayer must be more likely than not of sustaining the position, and the measurement of the benefit is calculated as the largest amount that is more than 50% likely to be realized upon resolution of the benefit. The Company has no accruals for uncertain tax benefits. Stock-Based Compensation The Company’s accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services received follows the provisions of ASC Topic 505-50. Accordingly, the measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. Research and Development Net Loss Per Common Share Subsequent Events

New Accounting Standards

New Accounting Standards	3 Months Ended
	Mar. 31, 2017
Accounting Changes and Error Corrections [Abstract]
New Accounting Standards	Note 3: New Accounting Standards Recently Adopted Accounting Standards In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”), which requires management to evaluate, in connection with preparing financial statements for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable) and provide related disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. Adoption of this guidance did not have an impact on the condensed and consolidated financial statements. In November 2014, the FASB issued ASU 2015-17, “Income Taxes (Topic 740) Related to the Balance Sheet Classification of Deferred Taxes,” which will require entities to present deferred tax assets (DTAs) and deferred tax liabilities (DTLs) as non-current in a classified balance sheet. The ASU simplifies the current guidance (ASC 740-10-45-4), which requires entities to separately present DTAs and DTLs as current and non-current in a classified balance sheet. The ASU is effective for annual reporting periods beginning on or after December 15, 2016, and interim periods within those annual periods. The Company is evaluating the impact of the standard on its consolidated financial statements, but upon adoption it is not expected to have a material impact on the condensed and consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, "Compensation—Stock Compensation (Topic 718)." This standard makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. Adoption of this guidance did not have an impact on the condensed and consolidated financial statements. Recently Issued Accounting Standards In May 2014, and further amended in August 2015, March 2016 and April 2016, ASUs No. 2014-09, No. 2015-14, No. 2016-08, and No. 2016-10 were issued related to revenue from contracts with customers which supersedes existing revenue recognition guidance. In August 2015, the FASB approved a one year delay of the effective date to reporting periods beginning after December 15, 2017, while permitting companies to voluntarily adopt the new standard as of the original effective date. The core principle of the comprehensive new guidance is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. The guidance defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The new standard permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The Company will apply the retrospective method and expects incremental disclosures of this standard to be material. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently evaluating the impact of adoption. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU is intended to improve the recognition and measurement of financial instruments. Among other things, this ASU requires certain equity investments to be measured at fair value with changes in fair value recognized in net income. This guidance is effective for fiscal years beginning after December 15, 2017, and interim periods therein. The Company is currently assessing the impact this guidance will have on its consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 4: Fair Value Measurements The Company complies with the provisions of ASC 820 in measuring fair value and in disclosing fair value measurements at the measurement date. ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements required under other accounting pronouncements. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements also reflect the assumptions market participants would use in pricing an asset or liability based on the best information available. Assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and/or the risks inherent in the inputs to the model. ASC 820 provides three levels of the fair value hierarchy as described below: Level 1 Inputs – Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 Inputs – Observable market-based inputs, other than quoted prices in active markets for identical assets or liabilities. Level 3 Inputs – Unobservable inputs that are supported by little or no market activity. When determining the fair value measurements for assets or liabilities required or permitted to be recorded at and/or marked to fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. When possible, the Company looks to active and observable markets to price identical assets. When identical assets are not traded in active markets, the Company looks to market observable data for similar assets. The following tables summarize the basis used to measure certain financial assets and liabilities at fair value on a recurring basis in the condensed and consolidated balance sheets: Total Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at December 31, 2016 Trading securities $ 64,299 $ 64,299 $ — $ — $ 64,299 $ 64,299 $ — $ — Balance at March 31, 2017 Trading securities $ 1,557,075 $ 1,557,075 $ — $ — $ 1,557,075 $ 1,557,075 $ — $ — The following summarizes the valuation technique for assets and liabilities measured and recorded at fair value: For the Company’s Level 1 measures, which represent common stock in publicly traded companies, treasury bonds or bank certificates of deposit, fair value is based on the last closing trade occurring on, or closest to, the respective period end date. The carrying value of financial instruments, including cash, receivables, accounts payable, and accrued expenses, approximates their fair value at March 31, 2017 and December 31, 2016 due to the relatively short-term nature of these instruments.

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Property and Equipment	Note 5: Property and Equipment Property and equipment is comprised of the following: March 31, December 31, 2017 2016 Equipment $ 432,499 $ 432,499 Software 63,179 63,179 Furniture and fixtures 7,987 7,987 503,665 503,665 Accumulated depreciation (308,001 ) (297,939 ) Property and equipment, net $ 195,664 $ 205,726 Depreciation expense for the three months ended March 31, 2017 and 2016 was $10,062 and $6,377, respectively.

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Note 6: Intangible Assets Intangible assets are comprised of the following: March 31, December 31, 2017 2016 Acquired research in progress - indefinite lived $ 4,016,596 $ 4,016,596 Patents 52,045 52,045 Accumulated amortization (25,893 ) (25,243 ) Intangible assets, net $ 4,042,748 $ 4,043,398 The Company expects to recognize $2,603 of amortization expense related to its patents during each of the next five years and the remaining $13,137 thereafter. Amortization expense for the patents during the three months ended March 31, 2017 and 2016 was $650 and $651, respectively. In its merger completed on October 19, 2015, the Company acquired research in progress. The value of the acquired research in progress was based upon several factors including, evaluation of other intangible assets, the purchase price, estimated future cash flows, and the amounts expended on the research to date. Acquired research in progress is an indefinite lived intangible asset until the development phase is complete, at which time a useful life of the asset will be determined. The research in progress was the identification and validation of genes to provide pest and disease resistance to soybean plants performed by EG I, LLC. The research had been in process since November 2010 and the Company expects to complete the research and place this asset in service in late 2017. Additional costs to complete the research are expected to be approximately $270,424, which will be expensed as incurred. The timing and cost of additional research may vary from these estimates as the success of the research is subject to many factors outside of the Company’s control. If this research is not completed within a reasonable timeframe or within estimated costs, future licensing revenue and the financial condition of the Company could be significantly impacted.

Stockholders' Equity and Warran

Stockholders' Equity and Warrants	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Stockholders' Equity and Warrants	Note 7: Stockholders’ Equity and Warrants The Amended and Restated Certificate of Incorporation of the Company dated October 19, 2015 authorized the issuance of 800,000,000 shares of all classes of stock including 780,000,000 shares of Common Stock having a par value of $0.001 per share and 20,000,000 shares of Preferred Stock having a par value of $0.001 per share, 600,000 of which were designated as Series A-1 Convertible Preferred Stock (“Series A-1”). The Board of Directors, without a vote of the shareholders, is authorized to issue additional shares of Preferred Stock in series and to establish the characteristics thereof. Liquidation Conversion Optional Redemption; Sinking Fund Account: Dividends Voting Warrants Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Term(Years) Balance, January 1, 2016 113,479 $ 6.60 4.78 Granted — — — Exercised — — — Expired — — — Balance, December 31, 2016 113,479 $ 6.60 3.78 Granted — — — Exercised — — — Expired (2,595 ) 6.60 — Balance, March 31, 2017 110,884 $ 6.60 3.62

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Note 8: Stock-Based Compensation The Company grants stock-based instruments under the 2015 Stock Incentive Plan (“Plan”) for which 1,400,000 shares of the Company’s Common Stock has been reserved. The Plan allows for the issuance of incentive stock options and non-qualified stock options with a maximum contractual term of 10 years. Shares and options that are cancelled reload in the Plan for future issuance. For the three months ended March 31, 2017 and 2016, the Company recorded compensation costs for incentive stock options of $27,645 and $10,590, respectively. Stock options are generally issued with an exercise price at or above the estimated per-share value of the Company’s Common Stock. The Company granted no options during the three months ended March 31, 2017 and 380,000 options at exercises prices of $3.00 and $3.30 per share during the three months ended March 31, 2016. Management has valued the options at their date of grant utilizing the Black-Scholes option pricing model. As of the issuance of the outstanding options, there was not a public market for the Company’s shares. Accordingly, the Company utilized the value obtained in equity transactions with unrelated parties to estimate the fair value of the Company’s Common Stock on the date of grant. Volatility of the underlying common shares was determined based on the historical volatility for similar companies that are actively traded in the public markets for a term consistent with the expected life of the options. The risk-free interest rate used in the calculations is based on the implied yield available on U.S. Treasury issues with an equivalent term approximating the expected life of the options on the date of the grant. Due to the lack of sufficient historical activity, the expected life of the options was estimated using the formula set forth in Securities and Exchange Commission SAB 107. The following table summarizes the status of the Company’s aggregate stock options granted: Number of Options Weighted Average Exercise Price Weighted Average Remaining Term(Years) Total Intrinsic Value Balance, January 1, 2016 186,667 $ 0.55 7.39 Granted 380,000 3.21 10.00 Exercised — — — Cancelled — — — Balance, December 31, 2016 566,667 $ 2.33 7.95 Exercisable at December 31, 2016 216,667 $ 0.89 5.91 Balance, January 1, 2017 566,667 $ 2.33 7.95 Granted — — — Exercised — — — Cancelled — — — Balance, March 31, 2017 566,667 $ 2.33 7.70 $ 334,134 Exercisable at March 31, 2017 300,000 $ 1.51 6.56 $ 334,134 During the three months ended March 31, 2017 and 2016, options for 83,333 and 0 shares vested, respectively. As of March 31, 2017, there was $194,350 unrecognized compensation cost related to share-based compensation arrangements that will be recognized over the next 26 months.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 9: Commitments and Contingencies Officer Indemnification Lease Commitments Royalty The Company is obligated to pay royalties to the United Soybean Board of 10% of the sale of products derived from the soybean genes that were the subject of the research performed by the Contractor or from royalties received by the Company from the sale of products by a third party not to exceed 150% of the total amount paid to the Contractor under this Agreement. The Company has recognized to date grant revenue from the contract of $262,400 as of March 31, 2017, thus limiting any future royalties as of March 31, 2017 to a total of $393,600. The Company has not accrued or paid any royalties under the terms of the Agreement as of and during the three months ended March 31, 2017 and 2016 because it has not received any revenue from the sale of products to date.

Related Parties and Transaction

Related Parties and Transactions	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related Parties and Transactions	Note 10: Related Parties and Transactions Steve B. Warnecke: VetDC, Inc.:

Concentrations

Concentrations	3 Months Ended
	Mar. 31, 2017
Risks and Uncertainties [Abstract]
Concentrations	Note 11: Concentrations Revenue and Account Receivable Concentrations Considerations of Credit Risk

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Principals of Consolidation	Principals of Consolidation
Use of Estimates	Use of Estimates
Cash	Cash
Accounts Receivable	Accounts Receivable:
Trading Securities	Trading Securities
Property and Equipment	Property and Equipment
Long-Lived Assets	Long-Lived Assets
Intangible Assets	Intangible Assets
Revenue Recognition	Revenue Recognition In our Master Services Agreement with the Bill and Melinda Gates Foundation, we grant them a royalty-free license for use of intellectual property developed in low-income economies and lower-middle-income economies according to the World Bank classification and expressly excludes all of North America and Europe. The Company retains all rights to the use of intellectual property outside of these regions.
Income Taxes	Income Taxes Under the Income Tax topic of the ASC, in order to recognize an uncertain tax benefit, the taxpayer must be more likely than not of sustaining the position, and the measurement of the benefit is calculated as the largest amount that is more than 50% likely to be realized upon resolution of the benefit. The Company has no accruals for uncertain tax benefits.
Stock-Based Compensation	Stock-Based Compensation The Company’s accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services received follows the provisions of ASC Topic 505-50. Accordingly, the measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.
Research and Development	Research and Development
Net Loss Per Common Share	Net Loss Per Common Share
Subsequent Events	Subsequent Events

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value	The following tables summarize the basis used to measure certain financial assets and liabilities at fair value on a recurring basis in the consolidated balance sheets: Total Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at December 31, 2016 Trading securities $ 64,299 $ 64,299 $ — $ — $ 64,299 $ 64,299 $ — $ — Balance at March 31, 2017 Trading securities $ 1,557,075 $ 1,557,075 $ — $ — $ 1,557,075 $ 1,557,075 $ — $ —

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment is comprised of the following: March 31, December 31, 2017 2016 Equipment $ 432,499 $ 432,499 Software 63,179 63,179 Furniture and fixtures 7,987 7,987 503,665 503,665 Accumulated depreciation (308,001 ) (297,939 ) Property and equipment, net $ 195,664 $ 205,726 Depreciation expense for the three months ended March 31, 2017 and 2016 was $10,062 and $6,377, respectively.

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets are comprised of the following: March 31, December 31, 2017 2016 Acquired research in progress - indefinite lived $ 4,016,596 $ 4,016,596 Patents 52,045 52,045 Accumulated amortization (25,893 ) (25,243 ) Intangible assets, net $ 4,042,748 $ 4,043,398

Stockholders' Equity and Warr21

Stockholders' Equity and Warrants (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Summary of Warrants Activity	The following table summarizes the status of the Company’s aggregate warrants outstanding: Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Term(Years) Balance, January 1, 2016 113,479 $ 6.60 4.78 Granted — — — Exercised — — — Expired — — — Balance, December 31, 2016 113,479 $ 6.60 3.78 Granted — — — Exercised — — — Expired (2,595 ) 6.60 — Balance, March 31, 2017 110,884 $ 6.60 3.62

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock Option Activity	The following table summarizes the status of the Company’s aggregate stock options granted: Number of Options Weighted Average Exercise Price Weighted Average Remaining Term(Years) Total Intrinsic Value Balance, January 1, 2016 186,667 $ 0.55 7.39 Granted 380,000 3.21 10.00 Exercised — — — Cancelled — — — Balance, December 31, 2016 566,667 $ 2.33 7.95 Exercisable at December 31, 2016 216,667 $ 0.89 5.91 Balance, January 1, 2017 566,667 $ 2.33 7.95 Granted — — — Exercised — — — Cancelled — — — Balance, March 31, 2017 566,667 $ 2.33 7.70 $ 334,134 Exercisable at March 31, 2017 300,000 $ 1.51 6.56 $ 334,134

Business Activity (Details)

Business Activity (Details)	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Percentage of outstanding stock purchased during reverse merger with Fona, Inc.	75.16%

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Other) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Accounting Policies [Abstract]
Allowance for doubtful accounts
Asset impairment charges
Customer deposits

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Property and Equipment) (Details)	3 Months Ended
	Mar. 31, 2017
Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property and equipment	3 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property and equipment	7 years

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Intangible Assets) (Details)	3 Months Ended
	Mar. 31, 2017
Patents [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets useful lives	20 years

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Net Loss Per Common Share) (Details)	3 Months Ended
	Mar. 31, 2017shares
Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from earnings per share calculation	577,063
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from earnings per share calculation	566,667
Common Stock and Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from earnings per share calculation	110,884

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities	$ 1,557,075	$ 64,299
Total	1,557,075	64,299
Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities	1,557,075	64,299
Total	1,557,075	64,299
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities
Total
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities
Total

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 503,665		$ 503,665
Accumulated depreciation	(308,001)		(297,939)
Property and equipment, net	195,664		205,726
Depreciation expense	10,062	$ 6,377
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	432,499		432,499
Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	63,179		63,179
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 7,987		$ 7,987

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Intangible assets, accumulated amortization	$ (25,893)		$ (25,243)
Intangible assets, net	4,042,748		4,043,398
Acquired research in progress [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	4,016,596		4,016,596
Additional expected costs to complete research	270,424
Year one	2,603
Year two	2,603
Year three	2,603
Year four	2,603
Year five	2,603
After year five	13,137
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	52,045		$ 52,045
Amortization expense	$ 650	$ 651

Stockholders' Equity and Warr31

Stockholders' Equity and Warrants (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Oct. 19, 2015
Class of Stock [Line Items]
Capital stock, authorized shares			800,000,000
Common stock, authorized shares	780,000,000	780,000,000	780,000,000
Common stock, par value	$ 0.001	$ 0.001	$ 0.001
Preferred stock, authorized shares	20,000,000	20,000,000	20,000,000
Preferred stock, par value	$ 0.001	$ 0.001	$ .001
Series A-1 Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, authorized shares	600,000	600,000	600,000
Preferred stock, par value	$ 0.001	$ 0.001	$ 0.001
Stated per share value of preferred stock	5.25
Liquidation preference per share	$ 5.25
Dividend rate	8.00%
Dividends accrued	$ 257,141

Stockholders' Equity and Warr32

Stockholders' Equity and Warrants (Summary of Warrants Activity) (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Number of Warrants
Warrants outstanding at beginning of period	113,479	113,479
Granted
Exercised
Expired	(2,595)
Warrants outstanding at end of period	110,884	113,479	113,479
Weighted Average Exercise Price
Warrants outstanding at beginning of period	$ 6.60	$ 6.60
Granted
Exercised
Expired	6.60
Warrants outstanding at end of period	$ 6.60	$ 6.60	$ 6.60
Weighted Average Remaining Term (Years)	3 years 7 months 13 days	3 years 9 months 11 days	4 years 9 months 11 days

Stock-Based Compensation (Narra

Stock-Based Compensation (Narrative) (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of shares reserved for issuance under 2015 Stock Incentive Plan	1,400,000
Expiration period for stock options	10 years
Compensation costs for incentive stock options	$ 27,645	$ 10,590
Stock options granted during period		380,000	380,000
Options granted during period exercise price		$ 3	$ 3.21
Number of shares vested during the period	83,333	0
Unrecognized compensation cost related to share-based compensation arrangements	$ 194,350
Unrecognized compensation cost period of recognition	26 months

Stock-Based Compensation (Summa

Stock-Based Compensation (Summary of Stock Options Activity) (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Number of Options
Balance, beginning	566,667	186,667	186,667
Granted		380,000	380,000
Exercised
Cancelled
Balance, ending	566,667		566,667	186,667
Exercisable	300,000		216,667
Outstanding, intrinsic value	$ 334,134
Exercisable, intrinsic value	$ 334,134
Weighted Average Exercise Price
Balance, beginning	$ 2.33	$ 0.55	$ 0.55
Granted		$ 3	3.21
Exercised
Cancelled
Balance, ending	2.33		2.33	$ 0.55
Exercisable	$ 1.51		$ 0.89
Outstanding, contractual term	7 years 8 months 12 days		7 years 11 months 12 days	7 years 4 months 21 days
Exercisable, contractual term	6 years 6 months 22 days		5 years 10 months 28 days

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Monthly rent payment	$ 2,378
Future lease commitments	7,134
Rent expense	7,134	$ 6,875
Total amount of grant revenue recognized to date	262,400
Total possible future royalties owed	393,600
Accrued royalties
Payments for royalties

Related Parties and Transacti36

Related Parties and Transactions (Details) - Chief Executive Officer [Member]	Mar. 31, 2017shares
Related Party Transaction [Line Items]
Number of common stock shares outstanding owned by related party	1,932,088
Percentage of common stock shares outstanding owned by related party	32.90%

Concentrations (Details)

Concentrations (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2017USD ($)Customers	Dec. 31, 2016USD ($)Customers
Concentration Risk [Line Items]
Maximum exposure to credit losses from customers during period | $	$ 26,680	$ 9,289
Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	100.00%
Number of customers in concentration percentage	1	1
Gross Service Revenue [Member]
Concentration Risk [Line Items]
Number of customers in concentration percentage	1