Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 15, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | ADAMIS PHARMACEUTICALS CORPORATION | |
Entity Central Index Key | 887,247 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 20,886,829 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
CURRENT ASSETS | ||
Cash | $ 417,076 | $ 4,080,648 |
Accounts Receivable, net | 744,703 | |
Inventories | 1,226,097 | |
Prepaid Expenses and Other Current Assets | 170,823 | 70,985 |
Total Current Assets | 2,558,699 | 4,151,633 |
LONG TERM ASSETS | ||
Security Deposits | 85,000 | 85,000 |
Intangible Assets, net | 19,371,395 | 7,766,960 |
Goodwill | 2,225,101 | |
Equipment, net | 5,125,395 | 58,260 |
Total Assets | 29,365,590 | 12,061,853 |
CURRENT LIABILITIES | ||
Accounts Payable | 4,174,197 | 497,794 |
Accrued Other Expenses | 1,967,605 | 214,036 |
Accrued Bonuses | 470,220 | 478,274 |
Bank Loans - Line of Credit | 4,115,792 | |
Bank Loans - Building and Equipment | 3,606,766 | |
Warrants, at fair value | 1,174,312 | |
Warrant Derivative Liabilities, at fair value | 383,404 | |
Total Liabilities | 14,334,580 | 2,747,820 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Preferred Stock - Par Value $.0001; 10,000,000 Shares Authorized; Series A Convertible, Zero and 1,009,021 Issued and Outstanding at June 30, 2016 and December 31, 2015, Respectively | 101 | |
Common Stock - Par Value $.0001; 100,000,000 Shares Authorized; 17,621,114 and 13,739,199 Issued, 17,313,574 and 13,431,659 Outstanding at June 30, 2016 and December 31, 2015, Respectively | 1,762 | 1,374 |
Additional Paid-in Capital | 96,178,713 | 78,339,143 |
Accumulated Deficit | (81,144,236) | (69,021,356) |
Treasury Stock - 307,540 Shares, at cost | (5,229) | (5,229) |
Total Stockholders' Equity | 15,031,010 | 9,314,033 |
Total Liabilities and Stockholders' Equity | $ 29,365,590 | $ 12,061,853 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Preferred Stock, Par Value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Par Value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 17,621,114 | 13,739,199 |
Common Stock, Shares Outstanding | 17,313,574 | 13,431,659 |
Treasury Stock, Shares | 307,540 | 307,540 |
Series A Convertible Preferred Stock [Member] | ||
Preferred Stock, Shares Issued | 0 | 1,009,021 |
Preferred Stock, Shares Outstanding | 0 | 1,009,021 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
REVENUE, net | $ 1,928,103 | $ 1,928,103 | ||
COST OF GOODS SOLD | 1,346,030 | 1,346,030 | ||
Gross Profit | 582,073 | 582,073 | ||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 4,583,097 | $ 2,261,831 | 7,199,481 | $ 5,055,377 |
RESEARCH AND DEVELOPMENT | 3,429,899 | 1,269,590 | 6,830,719 | 2,624,913 |
Loss from Operations | (7,430,923) | (3,531,421) | (13,448,127) | (7,680,290) |
OTHER INCOME (EXPENSE) | ||||
Interest Expense | (72,391) | (72,391) | ||
Interest Income | 167 | 167 | ||
Change in Fair Value of Warrants | 1,432,052 | (92,026) | 1,049,330 | 1,000,032 |
Change in Fair Value of Warrant Derivative Liabilities | 356,706 | (21,454) | 348,141 | (106,349) |
Total Other Income (Expense) | 1,716,534 | (113,480) | 1,325,247 | 893,683 |
Net (Loss) | $ (5,714,389) | $ (3,644,901) | $ (12,122,880) | $ (6,786,607) |
Basic and Diluted (Loss) Per Share: | ||||
Basic (Loss) Per Share | $ (0.37) | $ (0.27) | $ (0.84) | $ (0.52) |
Basic Weighted Average Shares Outstanding | 15,373,510 | 13,415,920 | 14,408,971 | 13,123,646 |
Diluted (Loss) Per Share | $ (0.37) | $ (0.27) | $ (0.84) | $ (0.58) |
Diluted Weighted Average Shares Outstanding | 15,373,510 | 13,415,920 | 14,408,971 | 13,324,730 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net (Loss) | $ (12,122,880) | $ (6,786,607) |
Adjustments to Reconcile Net (Loss) to Net Cash (Used in) Operating Activities: | ||
Stock Based Compensation | 2,269,633 | 1,236,487 |
Stock Issued in Exchanged for Services | 59,087 | 25,002 |
Provision for Bad Debts | 15,563 | |
Change in Fair Value of Warrants | (1,049,330) | (1,000,032) |
Change in Fair Value of Warrant Derivative Liabilities | (348,141) | 106,349 |
Depreciation and Amortization Expense | 966,618 | 495,145 |
(Increase) Decrease in, net of impact of USC acquisition: | ||
Accounts receivable - Trade | (296,606) | |
Inventories | (282,139) | |
Prepaid Expenses and Other Current Assets | (36,464) | 133,300 |
Increase (Decrease) in: | ||
Accounts Payable | 316,665 | (289,002) |
Accrued Other Expenses and Bonuses | (626,137) | 118,499 |
Net Cash (Used in) Operating Activities | (11,134,131) | (5,960,859) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of Equipment | (16,832) | |
Cash from Acquisition of USC | 381,883 | |
Cash Payment to Former Shareholders of USC | (32) | |
Net Used in Investing Activities | 365,019 | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds form Issuance of Preferred Stock, net of issuance cost | 4,927,760 | |
Proceeds from Issuance of Common Stock, net of issuance cost | 10,565,972 | |
Proceeds from Bank loan - Line of Credit | 2,000,000 | |
Proceeds from Exercise of Warrants | 177,780 | 75,589 |
Net Cash Provided by Financing Activities | 7,105,540 | 10,641,561 |
Increase (Decrease) in Cash | (3,663,572) | 4,680,702 |
Cash: | ||
Beginning | 4,080,648 | 3,774,665 |
Ending | 417,076 | 8,455,367 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash Paid for Income Taxes | 2,400 | 46,053 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING AND INVESTING ACTIVITIES | ||
Release of Warrants Liability Upon Exercise | $ 160,245 | $ 230,332 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Basis Of Presentation | |
Basis of Presentation | Note 1: Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Articles 8 and 10 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments (including normal recurring adjustments and the elimination of intercompany accounts) considered necessary for a fair statement of all periods presented. The results of Adamis Pharmaceuticals Corporation’s operations for any interim periods are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. In January 2016, two wholly owned subsidiaries of Adamis Corporation, Adamis Viral Therapies, Inc., or Adamis Viral, and Adamis Laboratories, Inc., or Adamis Labs, effected a short-form merger, pursuant to which Adamis Viral and Adamis Labs merged with and into Adamis Corporation, with Adamis Corporation as the surviving corporation. On April 11, 2016, Adamis Pharmaceuticals Corporation (the "Company" or "Adamis") completed its acquisition of U.S. Compounding, Inc., an Arkansas corporation ("USC"), pursuant to the terms of the Agreement and Plan of Merger dated March 28, 2016 (the "Merger Agreement") and entered into by and among the Company, USC and Ursula MergerSub Corp., an Arkansas corporation and a wholly owned subsidiary of the Company ("MergerSub"). Pursuant to the terms of the Merger Agreement, MergerSub merged with and into USC (the "Merger"), with USC surviving as a wholly owned subsidiary of the Company. Segment Information The Company is engaged primarily in the discovery, development and sales of pharmaceutical, biotechnology and other drug products. Accordingly, the Company has determined that it operates in one operating segment. Overview of U.S. Compounding, Inc. USC, which is registered as a drug compounding outsourcing facility under Section 503B of the U.S. Food, Drug & Cosmetic Act and the U.S. Drug Quality and Security Act, provides prescription compounded medications, including compounded sterile preparations and non-sterile compounds to patients, physician clinics, hospitals, surgery centers and other clients throughout most of the United States. USC’s product offerings broadly include, among others, corticosteroids, hormone replacement therapies, hospital outsourcing products, injectables, urological preparations, ophthalmic preparations, topical compounds for pain and men’s and women’s health products. USC’s compounded formulations in many circumstances are offered as therapeutic alternatives to drugs approved by the U.S. Food and Drug Administration, or the FDA. USC also provides certain veterinary pharmaceutical products for animals. Revenue Recognition. The Company recognize revenues when all of the following criteria have been met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Revenues from our USC subsidiary consist of sales of compounded drugs for humans and animals, including sterile injectable and non-sterile integrative therapies. Sales discounts and rebates are sometimes offered to customers if specified criteria are met. Additionally, sales are generally made with a limited right of return under certain conditions. Revenues are recorded net of provisions for sales discounts and returns, which are established at the time of sale. Accounts Receivable Accounts receivable are reported at the amount management expects to collect on outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and credit to allowance for doubtful accounts. Uncollectible amounts are based on USC's history of past write-offs and collections and current credit conditions. Provision for bad debt totaled $15,563 for the period ended June 30, 2016. Inventories Inventories are valued at the lower of cost or market. The cost of inventories are determined using the first-in, first-out (“FIFO”) method. Inventories consist of compounding formulation raw materials, currently marketed products, and device supplies. A reserve for obsolescence is recorded monthly based on a review of inventory for obsolescence. Reserve for obsolescence was $20,253 as of June 30, 2016. Acquisitions and Intangibles The Company has engaged in business combination activity. The accounting for business combinations requires management to make judgments and estimates of the fair value of assets acquired, including the identification and valuation of intangible assets, as well as liabilities assumed. Such judgments and estimates directly impact the amount of goodwill recognized in connection with each acquisition, as goodwill represents the excess of the purchase price of an acquired business over the fair value of its net tangible and identifiable intangible assets. Goodwill and Other Long-Lived Assets Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of net assets acquired. Goodwill is reviewed for impairment at least annually during the fourth quarter, or more frequently if events occur indicating the potential for impairment. During its goodwill impairment review, the Company may assess qualitative factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount, including goodwill. The qualitative factors include, but are not limited to, macroeconomic conditions, industry and market considerations, and the overall financial performance of the Company. If, after assessing the totality of these qualitative factors, the Company determines that it is not more likely than not that the fair value of its reporting unit is less than its carrying amount, then no additional assessment is deemed necessary. Otherwise, the Company proceeds to perform the two-step test for goodwill impairment. The first step involves comparing the estimated fair value of the reporting unit with its carrying value, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the Company performs the second step of the goodwill impairment test to determine the amount of loss, which involves comparing the implied fair value of the goodwill to the carrying value of the goodwill. The Company may also elect to bypass the qualitative assessment in a period and elect to proceed to perform the first step of the goodwill impairment test. The Company evaluates its long-lived assets with definite lives, such as property and equipment, acquired technology, customer relationships, patent and license rights, for impairment by considering competition by products prescribed for the same indication, the likelihood and estimated future entry of non-generic and generic competition with the same or similar indication and other related factors. The factors that drive the estimate of the life are often uncertain and are reviewed on a periodic basis or when events occur that warrant review. Recoverability is measured by comparison of the assets' book value to future net undiscounted cash flows that the assets are expected to generate. Claims Liabilities USC is self-insured up to certain limits for health insurance. Provisions are made for both the estimated liabilities for known claims as incurred and estimates for those incurred but not reported. As of June 30, 2016, the Company was self-insured for up to the first $40,000 of claims per covered person with an aggregate deductible of $626,445. The estimated IBNR (Incurred But Not Reported) provided by the plan administrator was $77,818 at June 30, 2016. Deferred Income Taxes Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the tax basis of such assets and liabilities. The Company maintains a valuation allowance against its deferred tax assets due to the uncertainty regarding the future realization of such assets, which is based on historical taxable income, projected future taxable income and the expected timing of the reversals of existing temporary differences. Until such time as the Company can demonstrate that it will no longer incur losses, or if the Company is unable to generate sufficient future taxable income, it could be required to maintain the valuation allowance against its deferred tax assets. Liquidity and Capital Resources Our cash was $417,076 and $4,080,648 at June 30, 2016 and December 31, 2015, respectively. We prepared the condensed consolidated financial statements assuming that we will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities during the normal course of business. In preparing these condensed consolidated financial statements, consideration was given to the Company’s future business as described below, which may preclude the Company from realizing the value of certain assets. The Company has significant operating cash flow deficiencies. Additionally, the Company will need significant funding for future operations and the expenditures that will be required to conduct the clinical and regulatory work to develop the Company’s product candidates and to support the Company’s other operations. Management’s plans include attempting to secure additional required funding through equity or debt financings, sales or out-licensing of intellectual property assets, seeking partnerships with other pharmaceutical companies or third parties to co-develop and fund research and development efforts, or similar transactions, in order to satisfy existing obligations, liabilities and future working capital needs, to build working capital reserves and to fund the Company’s research and development projects and other ongoing activities. There is no assurance that the Company will be successful in obtaining the necessary funding to meet its business objectives. Basic and Diluted (Loss) per Share The Company computes basic loss per share by dividing the loss attributable to holders of common stock for the period by the weighted average number of shares of common stock outstanding during the period. The diluted loss per share calculation is based on the treasury stock method and gives effect to dilutive options, warrants, convertible notes, convertible preferred stock and other potential dilutive common stock. Except as noted below, the effect of common stock equivalents was anti-dilutive and was excluded from the calculation of weighted average shares outstanding. Potential dilutive securities, which are not included in dilutive weighted average shares for the six months ended June 30, 2016 and June 30, 2015 consist of outstanding equity classified warrants (3,914,299 and 1,730,868, respectively), outstanding options (4,516,019 and 2,173,485, respectively), outstanding restricted stock units (355,590 and 5,590, respectively), and convertible preferred stock (zero and 1,009,021 respectively). The calculation of diluted loss per share requires that, to the extent the average market price of the underlying shares for the reporting period exceeds the exercise price of liability classified equity securities and the presumed exercise of such securities are dilutive to loss per share for the period, an adjustment to net loss used in the calculation is required to remove the change in fair value of the warrants from the numerator for the period. Likewise, an adjustment to the denominator is required to reflect the related dilutive shares, if any, under the treasury stock method. Accordingly, the Company considered the impact of the warrants from the June 2013 private placement (see Note 7) on the calculation of the diluted earnings per share. For the Three For the Three For the Six For the Six Loss per Share - Basic Numerator for basic loss per share $ (5,714,389 ) $ (3,644,901 ) $ (12,122,880 ) $ (6,786,607 ) Denominator for basic loss per share 15,373,510 13,415,920 14,408,971 13,123,646 Loss per common share - basic $ (0.37 ) $ (0.27 ) $ (0.84 ) $ (0.52 ) Loss per Share - Diluted Numerator for basic loss per share $ (5,714,389 ) $ (3,644,901 ) $ (12,122,880 ) $ (6,786,607 ) Adjust: Change in Fair Value of Warrant Liability — — — (1,000,032 ) Adjust: Change in Fair Value Warrant Derivative Liability — — — 106,349 Numerator for dilutive loss per share $ (5,714,389 ) $ (3,644,901 ) $ (12,122,880 ) $ (7,680,290 ) Denominator for diluted loss per share 15,373,510 13,415,920 14,408,971 13,123,646 Plus: Incremental shares underlying “in the money” warrants outstanding — — — 201,084 Denominator for dilutive loss per share 15,373,510 13,415,920 14,408,971 13,324,730 Loss per common share - diluted $ (0.37 ) $ (0.27 ) $ (0.84 ) $ (0.58 ) Recent Accounting Pronouncements In July 2015, the FASB issued ASU 2015-11 Simplifying the Measurement of Inventory In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses. |
Acquisiton of U.S. Compounding
Acquisiton of U.S. Compounding | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisiton of U.S. Compounding | Note 2: Acquisition of U.S. Compounding The merger is accounted for as an acquisition of USC under the purchase method of accounting in accordance with FASB Accounting Standard Codification Subtopic 805—Business Combinations. The assets and liabilities of USC will be reflected at fair value on the balance sheet of the Company. The fair value of the assets and liabilities reflected in the financial statements and notes appearing in this Report on Form 10-Q was based on the estimated value of USC as of April 11, 2016 (the date on which the Company acquired USC). A final determination of the purchase accounting adjustments, including the allocation of fair value to the USC assets and liabilities, has not been made. Actual adjustments and allocations will be based on the final purchase price and analyses of fair values of identifiable tangible and intangible assets, and estimates of the useful lives of tangible and intangible assets, which will be completed after the Company completes its valuation and assessment process, which the Company believes will be finalized not later than one year from the acquisition date. Accordingly, the purchase accounting adjustments made in connection with the development of the financial statements are preliminary. Differences between the preliminary and final purchase price allocations could have a material impact on the accompanying unaudited financial statements for the period ended June 30, 2016 and the Company's future results of operations and financial position. The Company's unaudited financial statements as of June 30, 2016 do not include any adjustments to income tax benefit/provision related to the Merger. Total estimated purchase price is summarized as follows: Stock to Seller at Close $ 3,598,884 Stock to Escrow 1,899,000 Incentive Stock to Seller 4,747,500 Plus: Assumed Liabilities 5,722,558 Total Estimated Purchase Price $ 15,967,942 The purchase price has been preliminarily allocated based on the estimated fair value of assets acquired and liabilities assumed: Assets Acquired: Cash $ 381,883 Accounts Receivable and Prepaid Expenses 527,034 Inventory 943,958 Property, Plant & Equipment 5,202,356 Intangible Assets 12,419,000 Goodwill 2,225,101 Total assets 21,699,332 Liabilities Assumed: Accounts Payable and Accrued Expenses 5,731,390 Total Liabilities 5,731,390 Total Estimated Purchase Price $ 15,967,942 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3: Inventories Finished Goods $ 538,127 Raw Material 509,320 Devices 178,650 $ 1,226,097 |
Fixed Assets
Fixed Assets | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Note 4: Fixed Assets Fixed Assets at June 30, 2016 is summarized in the table below: Fixed Asset Description Costs/FMV Accumulated Depreciation Net Book Value Adamis: Equipment $ 97,100 $ (48,550 ) $ 48,550 USC: Land 460,000 — 460,000 Building 3,040,000 (21,213 ) 3,018,787 Machinery & Equipment 1,296,126 (107,108 ) 1,189,018 Furnitures & Fixtures 129,630 (7,577 ) 122,053 Automobile 9,395 (844 ) 8,551 Leasehold Improvements 284,037 (5,601 ) 278,436 $ 5,316,288 $ (190,893 ) $ 5,125,395 For the three months ended and six months ended June 30, 2016, depreciation and amortization expense was $147,199 and $152,053, respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Note 5: Intangible Assets and Goodwill The Company's intangible assets at June 30, 2016, consisted of the following: Amortization Periods Cost Accumulated Amortization Net Carrying Value Adamis: Taper DPI Intellectual Property 5 years $ 9,708,700 $ (2,427,175 ) $ 7,281,525 USC: Trade Name and Brand Indefinite 1,245,000 — 1,245,000 Non-competition Agreement 3 years 1,639,000 (119,890 ) 1,519,110 Customer Relationships 10 years 5,572,000 (122,274 ) 5,449,726 FDA 503B Registration and Compliance 10 years 3,963,000 (86,966 ) 3,876,034 $ 22,127,700 $ (2,756,305 ) $ 19,371,395 Amortization expense for intangible assets for the period ended June 30, 2016, was as follows: For the Three Months Ended June 30, 2016 For the Six Months Ended June 30, 2016 Adamis: Taper DPI Intellectual Property $ 242,718 $ 485,435 USC: Non-competition Agreement 119,890 119,890 Customer Relationships 122,274 122,274 FDA 503B Registration and Compliance 86,966 86,966 $ 571,848 $ 814,565 Estimated future amortization expense for the Company's intangible assets at June 30, 2016, is as follows: Remainder of 2016 $ 1,235,352 2017 2,470,703 2018 2,470,703 2019 2,077,647 2020 1,924,370 Thereafter 7,947,620 $ 18,126,395 Goodwill recorded at the acquisition of USC was approximately $2,225,000. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill is not amortized and is not deductible for income tax purposes. As indicated in Note 1 above, with respect to the Companys acquisition of USC in April 2016, the allocation of fair value to the USC assets and liabilities, including intangible assets and goodwill, has not been made. As a result, the amount of intangible assets, amortization expense and goodwill are subject to change, and differences between the preliminary and final purchase price allocations could have a material impact on the determination of such amounts. |
Sale of Preferred Stock
Sale of Preferred Stock | 6 Months Ended |
Jun. 30, 2016 | |
Sale Of Preferred Stock | |
Sale of Preferred Stock | Note 6: Sale of Preferred Stock August 2014 Series A Preferred Stock On August 19, 2014, the Company completed a private placement transaction with a small number of sophisticated investors pursuant to which the Company issued 1,418,439 shares of Series A Convertible Preferred Stock and warrants to purchase up to 1,418,439 shares of common stock. The shares of Series A Preferred and warrants were sold in units, with each unit consisting of one share and one warrant, at a purchase price of $3.525 per unit. The Series A Preferred is convertible into shares of common stock at an initial conversion rate of 1-for-1 (subject to stock splits, reverse stock splits and similar events) at any time at the discretion of the investor. The exercise price of the warrants is $3.40 per share, and the warrants are exercisable for five years. If the Company grants, issues or sells any Common Stock equivalents pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then a holder of Series A Preferred or warrants will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the holder could have acquired if the holder had held the number of shares of Common Stock acquirable upon conversion of the Series A Preferred or exercise of the warrants (without regard to any limitations on conversion). If the Company declares or makes any dividend or other distribution of its assets (or rights to acquire its assets) to holders of Common Stock, then a holder of Series A Preferred or warrants is entitled to participate in such distribution to the same extent as if the holder had held the number of shares of Common Stock acquirable upon complete conversion of the Series A Preferred or exercise of the warrants (without regard to any limitations on conversion). In accordance with the transaction agreements, the Company filed a registration statement with the SEC, which has been declared effective, to register the resale from time to time of shares of common stock underlying the Series A Preferred and the warrants. The warrants include call provisions giving the Company the option, subject to various conditions, to call the exercise of any or all of the 2014 warrants, by giving a call notice to the warrant holders. We may give a call notice only within (i) if a holder and its affiliates beneficially own 2% or less of our outstanding common stock, then 10 trading days after any 20‑consecutive trading day period during which the daily volume weighted average price of the common stock (the "VWAP") is not less than 250% of the exercise price for the 2014 warrants in effect for 10 out of such 20-consecutive trading day period, and (ii) if holder and its affiliates beneficially own more than 2% of the outstanding common stock, five trading days after any 30-consecutive trading day period during which the VWAP of the common stock is not less than 250% of the exercise price then in effect for 25 out of such 30-consecutive trading day period. The exercise price of the 2014 warrants is $3.40 per share, and accordingly 250% of such exercise price is $8.50 per share. During a “call period” of 30 trading days following the date on which the call notice is deemed given and effective (with the call period being extended for one trading day for each trading day during the call period during which the VWAP is less than 225% of the exercise price then in effect during the call period), a holder may exercise the 2014 warrant and purchase the called warrant shares. Subject to the foregoing and to the other provisions of the 2014 warrants, if the holder fails to timely exercise the called 2014 warrant, the Company may cancel the unexercised called warrant (or portion thereof that was called). As of June 30, 2016, the investors have converted 1,418,439 shares of Series A Preferred into an equal number of shares of common stock, with zero Series A Preferred Shares remaining outstanding. January 2016 Series A-1 Preferred Stock On January 26, 2016, the Company completed a private placement transaction with a small number of accredited investors pursuant to which the Company issued 1,183,432 shares of Series A-1 Convertible Preferred Stock ("Series A-1 Preferred") and warrants to purchase up to 1,183,432 shares of common stock or Series A-1 Preferred. The shares of Series A-1 Preferred and warrants were sold in units, with each unit consisting of one share and one warrant, at a purchase price of $4.225 per unit. The Series A-1 Preferred is convertible into shares of common stock at an initial conversion rate of 1-for-1 (subject to stock splits, reverse stock splits and similar events) at any time at the discretion of the investor. The exercise price of the warrants is $4.10 per share, and the warrants are exercisable at any time over the five year term of the warrants. If the Company grants, issues or sells any Common Stock equivalents pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then a holder of Series A-1 Preferred or warrants will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the holder could have acquired if the holder had held the number of shares of Common Stock acquirable upon conversion of the Series A-1 Preferred or exercise of the warrants (without regard to any limitations on conversion). If the Company declares or makes any dividend or other distribution of its assets (or rights to acquire its assets) to holders of Common Stock, then a holder of Series A-1 Preferred or warrants is entitled to participate in such distribution to the same extent as if the holder had held the number of shares of Common Stock acquirable upon complete conversion of the Series A-1 Preferred or exercise of the warrants (without regard to any limitations on conversion). Gross proceeds to the Company were approximately $5,000,000 excluding transactions costs, fees and expenses. In accordance with the transaction agreements, the Company filed a registration statement with the SEC, which has been declared effective, to register the resale from time to time of shares of common stock underlying the Series A-1 Preferred and the warrants. The 2016 warrants include call provisions that are generally similar to the 2014 warrants. The exercise price of the 2016 warrants is $4.10 per share, and accordingly 250% of such exercise price is $10.25 per share. As of June 30, 2016, the investors have converted 1,183,432 shares of Series A-1 Preferred into an equal number of shares of common stock, with zero Series A-1 Preferred Shares remaining outstanding. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Note 7: Debt Ben Franklin Note Biosyn, Inc., a wholly owned subsidiary of the Company, issued a note payable to Ben Franklin Technology Center of Southeastern Pennsylvania (“Ben Franklin Note”) in October 1992, in connection with funding the development of Savvy, a compound then under development to prevent the transmission of HIV/AIDS. The Ben Franklin Note was recorded at its estimated fair value of $205,000 and was assumed by the Company as an obligation in connection with its acquisition of Biosyn in 2004. The repayment terms of the non-interest bearing obligation include the remittance of an annual fixed percentage of 3.0% applied to future revenues of Biosyn, if any, until the principal balance of $777,902 (face amount) is satisfied. Under the terms of the obligation, revenues are defined to exclude the value of unrestricted research and development funding received by Biosyn from nonprofit sources. Absent a material breach of contract or other event of default, there is no obligation to repay the amounts in the absence of future Biosyn revenues. The Company accreted the discount of $572,902 against earnings using the interest rate method (approximately 46%) over the discount period of five years, which was estimated in connection with the Ben Franklin Note’s valuation at the time of the acquisition. Accounting principles generally accepted in the United States emphasize market-based measurement through the use of valuation techniques that maximize the use of observable or market-based inputs. The Ben Franklin Note’s peculiar repayment terms outlined above affects its comparability with main stream market issues and also affects its transferability. The value of the Ben Franklin Note would also be impacted by the ability to estimate Biosyn’s expected future revenues which in turn hinge largely upon future efforts to commercialize the product candidate, the results of which efforts are not known by the Company. Given the above factors and therefore the lack of market comparability, the Ben Franklin Note would be valued based on Level 3 inputs (see Note 8). As such, management has determined that the Ben Franklin Note will have no future cash flows, as we do not believe the product will create a revenue stream in the future. As a result, the Note had no fair market value at the time of the merger in April 2009 between the Company (which was then named Cellegy Pharmaceuticals, Inc.) and the corporation then-named Adamis Pharmaceuticals Corporation. Secured Convertible Promissory Notes On June 26, 2013, the Company completed the closing of a private placement financing transaction (the “Transaction”) with a small number of accredited institutional investors. Pursuant to a Subscription Agreement (the “Purchase Agreement”) and other transaction documents, we issued Secured Convertible Promissory Notes (“Secured Notes”) and common stock purchase warrants (“Warrants”) to purchase up to 764,960 shares of common stock (“Warrant Shares”), and received gross cash proceeds of $5,300,000, of which $286,349 was used to pay for transaction costs, fees and expenses. The Secured Notes had an aggregate principal amount of $6,502,158. The Secured Notes are no longer outstanding. The exercise price of the Warrants is subject to anti-dilution provisions providing that, with the exception of certain excluded categories of issuances and transactions, if we issue any shares of common stock or securities convertible into or exercisable for common stock, or if common stock equivalents are repriced, at an effective price per share less than the exercise price, without the consent of a majority in interest of the investors, the exercise price will be adjusted downward to equal the per share price of the securities issued or deemed issued in such transaction. The Warrants are exercisable for a period of five years from the date of issuance. The exercise price of the Warrants was initially $12.155 per share (and was subsequently reduced to $3.40 per share), which was 110% of the closing price of the common stock on the day before the closing. The Warrants provide for proportional adjustment of the number and kind of securities purchasable upon exercise of the Warrants and the per share exercise price upon the occurrence of certain specified events, and include price anti-dilution provisions which provide for an adjustment to the per share exercise price of the Warrants and, in certain instances, the number of shares issuable upon exercise of the Warrants, if the Company issues common stock or common stock equivalents at effective per share prices lower than the exercise price of the Warrants. As described in the paragraph below the warrants were called pursuant to the Trigger Condition and are cancelled. On May 31, 2016, the Company gave a Call Notice to all outstanding warrant holders to exercise the warrants. A Call Notice may be given only within 10 trading days after any 20-consecutive trading day period during which the volume weighted average price (“VWAP”) of the Company’s common stock is not less than 250% of the exercise price for the Warrants in effect for 10 out of such 20-consecutive trading day period. A holder must exercise the Warrant and purchase the called Warrant Shares within 14 trading days after the Call Date, or the Warrant will be cancelled with respect to the unexercised portion of the Warrant that was subject to the Call Notice. After the expiration of the applicable period, in June 2016 the holders of unexercised warrants were informed that the unexercised warrants subject to the Call Notice were canceled. Provided (i) there is an effective registration statement that covers resale of all of the Warrant Shares, or (ii) all of the Warrant Shares may be sold pursuant to Rule 144 upon cashless exercise without restrictions including without volume limitations or manner of sale requirements, each such event referred to as a Trigger Condition, the Company has the option to “call” the exercise of any or all of the Warrants, referred to as a Warrant Call, from time to time by giving a Call Notice to the holders, provided that the other conditions on the Company’s option to exercise a Warrant Call have been satisfied. The Company’s right to exercise a Warrant Call commences five trading days after either of the Trigger Conditions has been in effect continuously for 15 trading days. A holder has the right to cancel the Warrant Call up until the date that the called Warrant Shares are actually delivered to the holder, such date referred to as the Warrant Call Delivery Date, if the Trigger Condition relied upon for the Warrant Call ceases to apply. A Call Notice may not be given within 30 days of the expiration of the term of the Warrants. In addition, a Call Notice may be given not sooner than 15 trading days after the Warrant Call Delivery Date of the immediately preceding Call Notice. The Warrants with the embedded call option at issuance were valued using the Binomial Option Pricing Model (“BOPM”). The estimated fair value of a single Warrant, including the call option, was $2.329 per share and the estimated value of the Warrant anti-dilution reset feature was $1.2002 per share. As a result, the Company recorded liabilities for the warrant and warrant down-round protection derivative totaling $2,398,280. The warrant and warrant derivative liabilities at June 30, 2016 were zero with the cancellation of the June 2013 warrants, see Note 8. Working Capital Line of Credit On March 28, 2016, the Company entered into a loan and security agreement with Bear State Bank, N.A. (the “Lender” or the “Bank”), pursuant to which the Company may borrow up to an aggregate of $2,000,000 to provide working capital to USC, subject to the terms and conditions of the loan agreement. Interest on amounts borrowed under the Company's loan agreement with the Bank accrues at a rate equal to the prime interest rate, as defined in the agreement. Interest payments are required to be made quarterly. The entire outstanding principal balance, and all accrued and unpaid interest and all other sums payable pursuant to the loan documents, are due and payable on March 1, 2017, or sooner upon the occurrence of certain events as provided in the loan agreement and related documents. The Company's obligations under the loan agreement are secured by certain collateral, including without limitation its interest in amounts that it has loaned to USC, and a warrant that the Company issued to the Bank to purchase up to 1,000,000 shares of the Company's common stock at an exercise price equal to par value per share, exercisable only if the Company is in default under the loan agreement or related loan documents. As of June 30, 2016, the loan balance on the line of credit was $2,000,000 and accrued interest expense related to the loan was approximately $11,000. Loans Assumed from Acquisition of USC: Building Loan In connection with the closing of the Merger, the Company acquired from 4 HIMS, of which Eddie Glover, the chief executive officer of USC, and certain other former stockholders of USC are members, the 4 HIMS Property, in consideration of the Company being added as an additional “borrower” and assuming the obligations under the 4 HIMS Loan Agreement, the 4 HIMS Note and the other 4 HIMS Loan Documents. As of June 30, 2016, the outstanding principal balance owed on the note was approximately $2,454,000. The loan currently bears an interest of 3.75% per year with total interest payable of approximately $37,000. Equipment Loan, Tribute USC Working Capital Loan Under the USC Working Capital Loan Agreement, Lender agreed to loan funds to USC, as the “Borrower,” up to an aggregate principal amount of $2,500,000, and evidenced by the USC Working Capital Note. Borrowings are limited to 80% of qualified trade accounts receivables and 50% of qualified inventories per the borrowing base agreement and are collateralized with trade accounts receivables and inventory. As of June 30, 2016, the outstanding unpaid principal balance under the USC Working Capital Note was approximately $2,116,000. The note currently accrues interest at 3.25% per year with total interest payable of $43,000. USC Equipment Loan Loan Amendment, Forbearance and Assumption Agreement Pursuant to the Loan Amendment Agreement, Adamis agreed that effective as of the Merger Closing, the Existing Loan Documents will be deemed to be amended to add Adamis as a co-borrower under each of the Existing Loans with respect to periods after the Merger Closing, and Adamis agreed to assume responsibility as borrower for all obligations, duties and liabilities after the Merger Closing under the Existing Loan Documents, jointly and severally with the current borrower or borrowers under each of the Existing Loans. The parties agreed that each of the Initial Loan Parties will remain, as applicable, a co-borrower under each of the Existing Loan Documents and that such party’s rights and obligations will not be affected. In addition, in the Loan Amendment Agreement the Company and the Bank agreed to discuss in good faith mutually agreeable amendments or modifications to the Existing Loan Documents in light of the changes in circumstances resulting from the Merger and the transfer of the real property and equipment discussed above to Adamis and USC. In the Loan Amendment Agreement, the Initial Loan Parties acknowledged that the Existing Loans are currently in default with respect to certain nonmonetary covenants contained in the Existing Loan Documents. The Bank agreed that all obligations of the Bank to forbear from pursuing its available remedies to collect the obligations evidenced and secured by the Existing Loan Documents shall conditionally exist until October 31, 2016 (the "Forbearance Period"). During the Forbearance Period, and subject to the terms of the Loan Amendment Agreement and the compliance by the Loan Parties with their obligations under the Loan Amendment Agreement, the Bank agreed that it would not pursue available remedies existing as a result of the Loan Parties’ failure to comply with the nonmonetary covenants of the Loan Parties as set forth in the Existing Loan Documents. Upon the expiration of the Forbearance Period, all monetary and nonmonetary obligations of the Loan Parties as set forth in the Existing Loan Documents will be fully reinstated. The Loan Parties agreed during the Forbearance Period to (i) continue to make all regularly scheduled payments of principal and interest due as set forth in the Existing Loan Documents, and (ii) except to the extent modified in the Loan Amendment Agreement, comply with all covenants of the Loan Parties set forth in the Existing Loan Documents. In the Loan Amendment Agreement, each Initial Loan Party reaffirmed its obligations under the Existing Loans and made certain other representations, warranties and agreements regarding the Existing Loans, and the Bank acknowledged that the applicable Borrower was current in its interest payments or other obligations under the applicable Loan Documents that are due and payable before the date of the Loan Amendment Agreement. The parties also agreed that the real and personal property securing each of the Existing Loans will also secure each of the other Existing Loans, as well as the Adamis New Working Capital Line of $2.0 million. Upon termination of the Forbearance Period by expiration of time or resulting from any noncompliance of the Loan Parties with the conditions set forth in the Loan Amendment Agreement, including the nonperformance of any of the conditions or covenants, or if any of the warranties and representations set forth in the Loan Amendment Agreement prove to be incorrect: (i) all obligations of the Loan Parties pursuant to the Existing Loan Documents and the Existing Loans will be fully reinstated; (ii) the Bank will have all rights and remedies provided the Bank pursuant to the Existing Loan Documents; and (iii) the Bank will be entitled, to the maximum extent most beneficial to the Bank, to all rights and remedies allowed by any applicable law. Except as expressly set forth in the Loan Amendment Agreement, the terms and provisions set forth in the Existing Loan Documents were not modified and remain in full force and effect. Subject to the satisfaction of all conditions precedent set forth in the Loan Amendment Agreement, the Bank consented to the transfer of the real and personal property by 4 HIMS and Tribute to Adamis and the foregoing acceptance and assumptions by Adamis. The Loan Amendment Agreement provide for a number of conditions precedent to Bank’s obligations under the agreement, including without limitation: (i) satisfactory title insurance and other insurance regarding the 4 HIMS Property; (ii) satisfactory lien searches and UCC-1 financing statements; (iii) any other document and agreements required by the Bank; (iv) accuracy of the representations and warranties set forth in the Loan Amendment Agreement; and (v) certain other customary conditions. The Loan Amendment Agreement reflects the terms of an earlier letter agreement entered into between Lender and Adamis in connection with the execution of the Merger Agreement, in which Adamis agreed that effective upon the closing of the Merger it would assume the obligations under the Existing Loans, and Lender agreed during the forbearance period specified therein to forbear from exercise of its rights and remedies in connection with instances of default or noncompliance under the Existing Loans. The agreement provides that upon expiration of the forbearance period, Lender will commence testing for compliance with the financial covenants contained in the Loan Documents, and full compliance with such financial covenants must be attained by December 31, 2016. The agreement is conditioned on the parties’ execution of a subsequent loan amendment agreement, which is reflected in the Loan Amendment Agreement. In August 2016, the Company received a commitment letter from the Bank describing a proposal to modify, consolidate and replace certain of the Existing Loan Documents with a new loan agreement, and the Company expects to engage in discussions with the Bank concerning modifications to the other Existing Loan Documents or entering into new loan agreements to replace and supersede the other Existing Loan Documents. |
Derivative Liabilities and Fair
Derivative Liabilities and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Liabilities and Fair Value Measurements | Note 8: Derivative Liabilities and Fair Value Measurements Accounting Standards Codification (“ASC”) 815 - Derivatives and Hedging provides guidance to determine what types of instruments, or embedded features in an instrument, are considered derivatives. This guidance can affect the accounting for convertible instruments that contain provisions to protect holders from a decline in the stock price, referred to as anti-dilution or down-round protection. Down-round provisions reduce the exercise price of a convertible instrument if a company either issues equity shares for a price that is lower than the exercise price of those instruments, or issues new convertible instruments that have a lower exercise price. The Company has determined that the warrant liability and down-round provision related to the warrants that were issued in connection with the Secured Notes should be treated as derivatives. The Company is required to report derivatives at fair value and record the fluctuations in fair value in current operations. The Company recognizes the derivative liabilities at their respective fair values at inception and on each reporting date. The Company values its financial assets and liabilities on a recurring basis and certain nonfinancial assets and nonfinancial liabilities on a nonrecurring basis based on the price 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. In order to increase consistency and comparability in fair value measurements, a fair value hierarchy that prioritizes observable and unobservable inputs is used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in inactive markets; or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. The Company recognizes derivative liabilities at their respective fair values at inception and on each reporting date. The Company utilized the BOPM to develop its assumptions for determining the fair value of the Warrants and related anti-dilution features. The number of liability classified Warrants outstanding as of June 30, 2016 and December 31, 2015 were zero and 575,164, respectively. As shown in the table below, after the cancellation of the Warrants with call options the carrying value at June 30, 2015 was $0 and the carrying value of the down-round protection derivative for the same date was $0. During the six months ended June 30, 2016, a total of 52,288 warrants were exercised, reducing the fair value of warrants and derivative liabilities and increasing Additional Paid in Capital by $160,245. The cancellation of 522,876 Warrants in June 2016 resulted to the reversal of liability and expense totaling $1,788,758. The table below provides a reconciliation of beginning and ending balances for the liabilities measured at fair value using significant unobservable inputs (Level 3): Warrant Warrants Derivative Total Balance: December 31, 2015 $ (1,174,312 ) $ (383,404 ) $ (1,557,716 ) Release of Warrant Liability Upon Exercise 53,379 17,428 70,807 Net Change in Fair Value (382,722 ) (8,565 ) (391,287 Balance: March 31, 2016 (1,503,655 ) (374,541 ) (1,878,196 ) Release of Warrant Liability Upon Exercise 71,603 17,835 89,438 Change in Fair Value 1,432,052 356,706 1,788,758 Balance: June 30, 2016 $ — $ — $ — The derivative liabilities are considered Level 3 liabilities on the fair value hierarchy as the determination of fair values includes various assumptions about future activities and stock price and historical volatility inputs. The following table describes the valuation techniques used to calculate fair values for liabilities in Level 3. There were no changes in the valuation techniques during the six months ended June 30, 2016 from December 31, 2015. Fair Value at Fair Value at Valuation Unobservable 6/30/2016 12/31/2015 Technique Input Range Warrant Derivative and Warrant Down-round Protection Derivative (combined) $ — $ 1,557,716 Binomial Option Pricing Model Probability of common stock issuance at prices less than exercise prices stated in agreements — & 50 % Probability of reset provision being waived — & 5 % Significant unobservable inputs for the derivative liabilities include (1) the estimated probability of the occurrence of a down-round financing during the term over which the related warrants are exercisable, (2) the estimated magnitude of the down-round and (3) the probability of the reset provision being waived. These estimates which are unobservable in the market were utilized to value the anti-dilution features of the warrants as of December 31, 2015. |
License Agreement
License Agreement | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
License Agreement | Note 9: License Agreement On July 21, 2016, the Company received a notice from Licensee exercising its right to terminate the Agreement; in the absence of termination of the Agreement before expiration of the time period specified in the Agreement, any milestone or other payments would not be refundable. No upfront fee or payment was made, and as a result the Company is not obligated to refund any amounts to Licensee as a result of the termination. |
Common Stock
Common Stock | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Common Stock | Note 10: Common Stock On April 11, 2016, the Company completed its acquisition of U.S. Compounding, Inc. Pursuant to the merger agreement, the Company issued a total of 1,618,539 shares of Adamis common stock to the former shareholders of USC. On April 15, 2016, the Company issued common stock upon exercise of an investor warrant. The warrant holder exercised for cash at an exercise price of $3.40 per share. The Company received a total of approximately $89,000 and the warrant holder received 26,144 shares of common stock. On May 26, 2016, the Company issued a total of 10,708 shares of common stock upon exercise of options granted under the Company's 2009 Equity Incentive Plan. The option holders utilized a cashless net exercise (based on a common stock price of $8.51 per share on the date of exercise) of a total of 29,712 stock options with an exercise price ranging from $4.10 to $6.53. On June 2, 2016, the Company awarded a total of 6,669 shares of common stock to two employees of U.S. Compounding, Inc. to settle unpaid compensation of approximately $59,000. In June 2016, 1,009,021 and 1,183,432 of Series A Convertible Preferred and Series A-1 Convertible Preferred, respectively, were converted into shares of common stock on a 1:1 ratio. |
Stock Option Plans, Shares Rese
Stock Option Plans, Shares Reserved and Warrants | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Plans, Shares Reserved and Warrants | Note 11: Stock Option Plans, Shares Reserved and Warrants The Company has a 2009 Equity Incentive Plan (the “2009 Plan”). The 2009 Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights, performance stock awards, and other forms of equity compensation (collectively “stock awards”). In addition, the 2009 Plan provides for the grant of performance cash awards. The initial aggregate number of shares of common stock that may be issued initially pursuant to stock awards under the 2009 Plan was 411,765 shares. The number of shares of common stock reserved for issuance automatically increase on January 1 of each calendar year, from January 1, 2010 through and including January 1, 2019, by the lesser of (a) 5.0% of the total number of shares of common stock outstanding on December 31 of the preceding calendar year or (b) a lesser number of shares of common stock determined by the Company’s board of directors before the start of a calendar year for which an increase applies. On May 25, 2016, pursuant to the approval of the Company's stockholders, the number of shares reserved for issuance increased by 4,500,000, an aggregate of 8,566,800 shares (including shares issued pursuant to exercise of previous awards under the 2009 Plan and shares subject to outstanding awards under the 2009 Plan) at June 30, 2016. On May 25, 2016, the Company issued options to purchase 1,290,000 shares of common stock to the officers and employees of USC and the board of directors of the Company under the 2009 Plan with an exercise price of $8.46 per share. The options will vest over a period of three years. These options were valued using the Black-Scholes option pricing model, the expected volatility was approximately 59%, the term was six years, the dividend rate was 0.0 % and the risk-free interest rate was approximately 1.69%, which resulted in a calculated fair value of $6,063,000. On May 25, 2016, the Company issued options to purchase 155,000 shares of common stock to consultants of the Company with an exercise price of $8.46 per share. The options were exercisable in full as of the date of grant. These options were valued using the Black-Scholes option pricing model, the expected volatility was approximately 56%, the term was five years, the dividend rate was 0.0 % and the risk-free interest rate was approximately 1.40%, which resulted in a calculated fair value of $643,250. On May 25, 2016, the Company awarded Restricted Stock Units ("RSUs") covering 350,000 shares of common stock to the non-employee directors of the Company under the 2009 Plan; as of the date of grant, the market price of the common stock was $8.46 per share. These RSUs vest on the seventh anniversary from grant date, or earlier upon the occurrence of certain events including a change of control of the Company. The calculated fair value of the RSUs was $2,961,000. The following summarizes the stock option activity for the six months ended June 30, 2016 below: Weighted Weighted Stock Average Average Option Exercise Remaining Shares Price Contract Life Balance as of December 31, 2015 2,112,800 $ 5.60 8.05 years Options Granted 2,490,697 6.65 9.46 years Options Exercised (46,379 ) 5.07 — Options Cancelled (41,099 ) 4.93 — Balance as of June 30, 2016 4,516,019 $ 6.19 8.75 years Exercisable at June 30, 2016 1,748,933 $ 5.77 7.26 years The aggregate intrinsic value (the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in-the-money options) of the 4,516,019 and 2,112,800 stock options outstanding at June 30, 2016 and December 31, 2015 was approximately $0 and approximately $916,000, respectively. The aggregate intrinsic value of 1,748,933 and 1,173,443 stock options exercisable at June 30, 2016 and December 31, 2015 was approximately $0 and $681,000, respectively. The following summarizes warrants outstanding at June 30, 2016: Warrant Exercise Price Date Expiration Shares Per Share Issued Date Old Adamis Warrants 58,824 $ 8.50 November 15, 2007 November 15, 2017 2013 Private Placement 22,057 $12.16 June 26, 2013 June 26, 2018 Consultant Warrants 17,647 $ 3.74 July 11, 2011 July 11, 2016 Underwriter Warrants 186,000 $ 7.44 December 12, 2013 December 12, 2018 Underwriter Warrants 27,900 $ 7.44 January 16, 2014 January 16, 2019 Preferred Stock Series A Warrants 1,418,439 $ 3.40 August 19, 2014 August 19, 2019 Preferred Stock Series A-1 Warrants 1,183,432 $ 4.10 January 26, 2016 January 26, 2021 Bear State Bank, Collateral to Line of Credit 1,000,000 * $ 0.0001 March 28, 2016 Total Warrants 3,914,299 *Exercisable upon default of Line of Credit at Bear State Bank, please see Note 7. At June 30, 2016, the Company has reserved shares of common stock for issuance upon exercise of outstanding options and warrants, convertible preferred stock shares, and options and other awards that may be granted in the future under the 2009 Equity Incentive Plan, as follows: Warrants 3,914,299 Convertible Preferred Stock — 2009 Equity Incentive Plan 8,566,800 Total Shares Reserved 12,481,099 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12: Subsequent Events On July 11, 2016, the Company completed a private placement financing transaction. Pursuant to a Purchase Agreement and a registration rights agreement, we issued 1,724,137 shares of a new series of preferred stock, Series A-2 Convertible Preferred Stock (the “Series A-2 Preferred”), and warrants (“Warrants”) to purchase up to 1,724,137 shares of the Company’s Common Stock or Series A-2 Preferred (“Warrant Shares”), and received gross cash proceeds of approximately $5,000,000, excluding transactions costs, fees and expenses. The shares of Series A-2 Preferred and Warrants were sold in units, with each unit consisting of one share and one Warrant, at a purchase price of $2.90 per unit. The Series A-2 Preferred is convertible into shares of the Company’s Common Stock (the “conversion shares”), at an initial conversion rate of 1-for-1, at any time at the discretion of the investor. The exercise price of the Warrants is $2.90 per share, and the Warrants are exercisable for five years. The purchasers included a small number of institutional investors. The rights, preferences, privileges, and restrictions applicable to the Series A-2 Preferred are generally similar to those of the Company’s Series A-1 Convertible Preferred Stock, which the Company issued to a small number of institutional investors in a January 2016 private placement transaction. On July 11, 2016, warrants issued to consultants to purchase 17,647 shares of common stock at $3.74 per share expired. As disclosed in Note 9 above, on July 21, 2016, Watson Laboratories, Inc. terminated the Development, License and Commercialization Agreement with the Company. On August 3, 2016, the Company completed a registered direct offering of 3,573,255 shares of common stock and warrants to purchase 3,573,255 shares of common stock under its existing shelf registration statements. The shares and warrants were sold in units, each unit consisting of (i) one share of common stock and (ii) one warrant to purchase one share of common stock at an exercise price of $2.98 per share, at a purchase price of $3.095 per unit. The warrants will expire five years from the date on which they become exercisable. Gross proceeds from the offering, after deducting placement agent fees, were approximately $10.3 million, excluding any future proceeds from the potential exercise of the warrants and before deducting other estimated offering expenses payable by the Company. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Basis Of Presentation Policies | |
Segment Information | Segment Information The Company is engaged primarily in the discovery, development and sales of pharmaceutical, biotechnology and other drug products. Accordingly, the Company has determined that it operates in one operating segment. |
Revenue Recognition | Revenue Recognition. The Company recognize revenues when all of the following criteria have been met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Revenues from our USC subsidiary consist of sales of compounded drugs for humans and animals, including sterile injectable and non-sterile integrative therapies. Sales discounts and rebates are sometimes offered to customers if specified criteria are met. Additionally, sales are generally made with a limited right of return under certain conditions. Revenues are recorded net of provisions for sales discounts and returns, which are established at the time of sale. |
Accounts Receivable | Accounts Receivable Accounts receivable are reported at the amount management expects to collect on outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and credit to allowance for doubtful accounts. Uncollectible amounts are based on USC's history of past write-offs and collections and current credit conditions. Provision for bad debt totaled $15,563 for the period ended June 30, 2016. |
Inventories | Inventories Inventories are valued at the lower of cost or market. The cost of inventories are determined using the first-in, first-out (“FIFO”) method. Inventories consist of compounding formulation raw materials, currently marketed products, and device supplies. A reserve for obsolescence is recorded monthly based on a review of inventory for obsolescence. Reserve for obsolescence was $20,253 as of June 30, 2016. |
Acquisitions and Intangibles | Acquisitions and Intangibles The Company has engaged in business combination activity. The accounting for business combinations requires management to make judgments and estimates of the fair value of assets acquired, including the identification and valuation of intangible assets, as well as liabilities assumed. Such judgments and estimates directly impact the amount of goodwill recognized in connection with each acquisition, as goodwill represents the excess of the purchase price of an acquired business over the fair value of its net tangible and identifiable intangible assets. |
Goodwill and Other Long-Lived Assets | Goodwill and Other Long-Lived Assets Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of net assets acquired. Goodwill is reviewed for impairment at least annually during the fourth quarter, or more frequently if events occur indicating the potential for impairment. During its goodwill impairment review, the Company may assess qualitative factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount, including goodwill. The qualitative factors include, but are not limited to, macroeconomic conditions, industry and market considerations, and the overall financial performance of the Company. If, after assessing the totality of these qualitative factors, the Company determines that it is not more likely than not that the fair value of its reporting unit is less than its carrying amount, then no additional assessment is deemed necessary. Otherwise, the Company proceeds to perform the two-step test for goodwill impairment. The first step involves comparing the estimated fair value of the reporting unit with its carrying value, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the Company performs the second step of the goodwill impairment test to determine the amount of loss, which involves comparing the implied fair value of the goodwill to the carrying value of the goodwill. The Company may also elect to bypass the qualitative assessment in a period and elect to proceed to perform the first step of the goodwill impairment test. The Company evaluates its long-lived assets with definite lives, such as property and equipment, acquired technology, customer relationships, patent and license rights, for impairment by considering competition by products prescribed for the same indication, the likelihood and estimated future entry of non-generic and generic competition with the same or similar indication and other related factors. The factors that drive the estimate of the life are often uncertain and are reviewed on a periodic basis or when events occur that warrant review. Recoverability is measured by comparison of the assets' book value to future net undiscounted cash flows that the assets are expected to generate. |
Claims Liabilities | Claims Liabilities USC is self-insured up to certain limits for health insurance. Provisions are made for both the estimated liabilities for known claims as incurred and estimates for those incurred but not reported. As of June 30, 2016, the Company was self-insured for up to the first $40,000 of claims per covered person with an aggregate deductible of $626,445. The estimated IBNR (Incurred But Not Reported) provided by the plan administrator was $77,818 at June 30, 2016. |
Deferred Income Taxes | Deferred Income Taxes Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the tax basis of such assets and liabilities. The Company maintains a valuation allowance against its deferred tax assets due to the uncertainty regarding the future realization of such assets, which is based on historical taxable income, projected future taxable income and the expected timing of the reversals of existing temporary differences. Until such time as the Company can demonstrate that it will no longer incur losses, or if the Company is unable to generate sufficient future taxable income, it could be required to maintain the valuation allowance against its deferred tax assets. |
Liquidity and Capital Resources | Liquidity and Capital Resources Our cash was $417,076 and $4,080,648 at June 30, 2016 and December 31, 2015, respectively. We prepared the condensed consolidated financial statements assuming that we will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities during the normal course of business. In preparing these condensed consolidated financial statements, consideration was given to the Company’s future business as described below, which may preclude the Company from realizing the value of certain assets. The Company has significant operating cash flow deficiencies. Additionally, the Company will need significant funding for future operations and the expenditures that will be required to conduct the clinical and regulatory work to develop the Company’s product candidates and to support the Company’s other operations. Management’s plans include attempting to secure additional required funding through equity or debt financings, sales or out-licensing of intellectual property assets, seeking partnerships with other pharmaceutical companies or third parties to co-develop and fund research and development efforts, or similar transactions, in order to satisfy existing obligations, liabilities and future working capital needs, to build working capital reserves and to fund the Company’s research and development projects and other ongoing activities. There is no assurance that the Company will be successful in obtaining the necessary funding to meet its business objectives. |
Basic and Diluted Net Loss Per Share | Basic and Diluted (Loss) per Share The Company computes basic loss per share by dividing the loss attributable to holders of common stock for the period by the weighted average number of shares of common stock outstanding during the period. The diluted loss per share calculation is based on the treasury stock method and gives effect to dilutive options, warrants, convertible notes, convertible preferred stock and other potential dilutive common stock. Except as noted below, the effect of common stock equivalents was anti-dilutive and was excluded from the calculation of weighted average shares outstanding. Potential dilutive securities, which are not included in dilutive weighted average shares for the six months ended June 30, 2016 and June 30, 2015 consist of outstanding equity classified warrants (3,914,299 and 1,730,868, respectively), outstanding options (4,516,019 and 2,173,485, respectively), outstanding restricted stock units (355,590 and 5,590, respectively), and convertible preferred stock (zero and 1,009,021 respectively). The calculation of diluted loss per share requires that, to the extent the average market price of the underlying shares for the reporting period exceeds the exercise price of liability classified equity securities and the presumed exercise of such securities are dilutive to loss per share for the period, an adjustment to net loss used in the calculation is required to remove the change in fair value of the warrants from the numerator for the period. Likewise, an adjustment to the denominator is required to reflect the related dilutive shares, if any, under the treasury stock method. Accordingly, the Company considered the impact of the warrants from the June 2013 private placement (see Note 7) on the calculation of the diluted earnings per share. For the Three For the Three For the Six For the Six Loss per Share - Basic Numerator for basic loss per share $ (5,714,389 ) $ (3,644,901 ) $ (12,122,880 ) $ (6,786,607 ) Denominator for basic loss per share 15,373,510 13,415,920 14,408,971 13,123,646 Loss per common share - basic $ (0.37 ) $ (0.27 ) $ (0.84 ) $ (0.52 ) Loss per Share - Diluted Numerator for basic loss per share $ (5,714,389 ) $ (3,644,901 ) $ (12,122,880 ) $ (6,786,607 ) Adjust: Change in Fair Value of Warrant Liability — — — (1,000,032 ) Adjust: Change in Fair Value Warrant Derivative Liability — — — 106,349 Numerator for dilutive loss per share $ (5,714,389 ) $ (3,644,901 ) $ (12,122,880 ) $ (7,680,290 ) Denominator for diluted loss per share 15,373,510 13,415,920 14,408,971 13,123,646 Plus: Incremental shares underlying “in the money” warrants outstanding — — — 201,084 Denominator for dilutive loss per share 15,373,510 13,415,920 14,408,971 13,324,730 Loss per common share - diluted $ (0.37 ) $ (0.27 ) $ (0.84 ) $ (0.58 ) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In July 2015, the FASB issued ASU 2015-11 Simplifying the Measurement of Inventory In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Basis Of Presentation Tables | |
Schedule of basic and diluted loss per share | For the Three For the Three For the Six For the Six Loss per Share - Basic Numerator for basic loss per share $ (5,714,389 ) $ (3,644,901 ) $ (12,122,880 ) $ (6,786,607 ) Denominator for basic loss per share 15,373,510 13,415,920 14,408,971 13,123,646 Loss per common share - basic $ (0.37 ) $ (0.27 ) $ (0.84 ) $ (0.52 ) Loss per Share - Diluted Numerator for basic loss per share $ (5,714,389 ) $ (3,644,901 ) $ (12,122,880 ) $ (6,786,607 ) Adjust: Change in Fair Value of Warrant Liability — — — (1,000,032 ) Adjust: Change in Fair Value Warrant Derivative Liability — — — 106,349 Numerator for dilutive loss per share $ (5,714,389 ) $ (3,644,901 ) $ (12,122,880 ) $ (7,680,290 ) Denominator for diluted loss per share 15,373,510 13,415,920 14,408,971 13,123,646 Plus: Incremental shares underlying “in the money” warrants outstanding — — — 201,084 Denominator for dilutive loss per share 15,373,510 13,415,920 14,408,971 13,324,730 Loss per common share - diluted $ (0.37 ) $ (0.27 ) $ (0.84 ) $ (0.58 ) |
Acquisiton of U.S. Compounding
Acquisiton of U.S. Compounding (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of total estimated purchase price | Total estimated purchase price is summarized as follows: Stock to Seller at Close $ 3,598,884 Stock to Escrow 1,899,000 Incentive Stock to Seller 4,747,500 Plus: Assumed Liabilities 5,722,558 Total Estimated Purchase Price $ 15,967,942 |
Schedule of estimated fair value of assets acquired and liabilities assumed | The purchase price has been preliminarily allocated based on the estimated fair value of assets acquired and liabilities assumed: Assets Acquired: Cash $ 381,883 Accounts Receivable and Prepaid Expenses 527,034 Inventory 943,958 Property, Plant & Equipment 5,202,356 Intangible Assets 12,419,000 Goodwill 2,225,101 Total assets 21,699,332 Liabilities Assumed: Accounts Payable and Accrued Expenses 5,731,390 Total Liabilities 5,731,390 Total Estimated Purchase Price $ 15,967,942 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | As of June 30, 2016, the inventories of the Company, which consisted of inventories of the Company's wholly owned subsidiary USC, consisted of the following: Finished Goods $ 538,127 Raw Material 509,320 Devices 178,650 $ 1,226,097 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of fixed assets | Fixed Assets at June 30, 2016 is summarized in the table below: Fixed Asset Description Costs/FMV Accumulated Depreciation Net Book Value Adamis: Equipment $ 97,100 $ (48,550 ) $ 48,550 USC: Land 460,000 — 460,000 Building 3,040,000 (21,213 ) 3,018,787 Machinery & Equipment 1,296,126 (107,108 ) 1,189,018 Furnitures & Fixtures 129,630 (7,577 ) 122,053 Automobile 9,395 (844 ) 8,551 Leasehold Improvements 284,037 (5,601 ) 278,436 $ 5,316,288 $ (190,893 ) $ 5,125,395 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | The Company's intangible assets at June 30, 2016, consisted of the following: Amortization Periods Cost Accumulated Amortization Net Carrying Value Adamis: Taper DPI Intellectual Property 5 years $ 9,708,700 $ (2,427,175 ) $ 7,281,525 USC: Trade Name and Brand Indefinite 1,245,000 — 1,245,000 Non-competition Agreement 3 years 1,639,000 (119,890 ) 1,519,110 Customer Relationships 10 years 5,572,000 (122,274 ) 5,449,726 FDA 503B Registration and Compliance 10 years 3,963,000 (86,966 ) 3,876,034 $ 22,127,700 $ (2,756,305 ) $ 19,371,395 |
Schedule of amortization expense for intangible assets | Amortization expense for intangible assets for the period ended June 30, 2016, was as follows: For the Three Months Ended June 30, 2016 For the Six Months Ended June 30, 2016 Adamis: Taper DPI Intellectual Property $ 242,718 $ 485,435 USC: Non-competition Agreement 119,890 119,890 Customer Relationships 122,274 122,274 FDA 503B Registration and Compliance 86,966 86,966 $ 571,848 $ 814,565 |
Schedule of estimated future amortization expense | Estimated future amortization expense for the Company's intangible assets at June 30, 2016, is as follows: Remainder of 2016 $ 1,235,352 2017 2,470,703 2018 2,470,703 2019 2,077,647 2020 1,924,370 Thereafter 7,947,620 $ 18,126,395 |
Derivative Liabilities and Fa24
Derivative Liabilities and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative And Fair Value Disclosure [Abstract] | |
Schedule of fair value reconciliation | The table below provides a reconciliation of beginning and ending balances for the liabilities measured at fair value using significant unobservable inputs (Level 3): Warrant Warrants Derivative Total Balance: December 31, 2015 $ (1,174,312 ) $ (383,404 ) $ (1,557,716 ) Release of Warrant Liability Upon Exercise 53,379 17,428 70,807 Net Change in Fair Value (382,722 ) (8,565 ) (391,287 Balance: March 31, 2016 (1,503,655 ) (374,541 ) (1,878,196 ) Release of Warrant Liability Upon Exercise 71,603 17,835 89,438 Change in Fair Value 1,432,052 356,706 1,788,758 Balance: June 30, 2016 $ — $ — $ — |
Schedule of valuation techniques | The following table describes the valuation techniques used to calculate fair values for liabilities in Level 3. There were no changes in the valuation techniques during the six months ended June 30, 2016 from December 31, 2015. Fair Value at Fair Value at Valuation Unobservable 6/30/2016 12/31/2015 Technique Input Range Warrant Derivative and Warrant Down-round Protection Derivative (combined) $ — $ 1,557,716 Binomial Option Pricing Model Probability of common stock issuance at prices less than exercise prices stated in agreements — & 50 % Probability of reset provision being waived — & 5 % |
Stock Option Plans, Shares Re25
Stock Option Plans, Shares Reserved and Warrants (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option activity | The following summarizes the stock option activity for the six months ended June 30, 2016 below: Weighted Weighted Stock Average Average Option Exercise Remaining Shares Price Contract Life Balance as of December 31, 2015 2,112,800 $ 5.60 8.05 years Options Granted 2,490,697 6.65 9.46 years Options Exercised (46,379 ) 5.07 — Options Cancelled (41,099 ) 4.93 — Balance as of June 30, 2016 4,516,019 $ 6.19 8.75 years Exercisable at June 30, 2016 1,748,933 $ 5.77 7.26 years |
Summary of warrants outstanding | The following summarizes warrants outstanding at June 30, 2016: Warrant Exercise Price Date Expiration Shares Per Share Issued Date Old Adamis Warrants 58,824 $ 8.50 November 15, 2007 November 15, 2017 2013 Private Placement 22,057 $12.16 June 26, 2013 June 26, 2018 Consultant Warrants 17,647 $ 3.74 July 11, 2011 July 11, 2016 Underwriter Warrants 186,000 $ 7.44 December 12, 2013 December 12, 2018 Underwriter Warrants 27,900 $ 7.44 January 16, 2014 January 16, 2019 Preferred Stock Series A Warrants 1,418,439 $ 3.40 August 19, 2014 August 19, 2019 Preferred Stock Series A-1 Warrants 1,183,432 $ 4.10 January 26, 2016 January 26, 2021 Bear State Bank, Collateral to Line of Credit 1,000,000 * $ 0.0001 March 28, 2016 Total Warrants 3,914,299 *Exercisable upon default of Line of Credit at Bear State Bank, please see Note 7. |
Schedule of reserved shares of common stock for issuance upon conversion or exercise | At June 30, 2016, the Company has reserved shares of common stock for issuance upon exercise of outstanding options and warrants, convertible preferred stock shares, and options and other awards that may be granted in the future under the 2009 Equity Incentive Plan, as follows: Warrants 3,914,299 Convertible Preferred Stock — 2009 Equity Incentive Plan 8,566,800 Total Shares Reserved 12,481,099 |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) - USD ($) | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Provision for bad debts | $ 15,563 | |||
Amount of self-insurance, per covered person | 40,000 | |||
Aggregate deductible for health inusrance plan | 626,445 | |||
Estimated IBNR | 77,818 | |||
Cash | 417,076 | $ 8,455,367 | $ 4,080,648 | $ 3,774,665 |
Assumption of liabilties from business acquisition | 5,722,500 | |||
Debt payment - monthly | 32,000 | |||
Reserve for obsolescence | $ 20,253 | |||
Convertible Preferred Stock [Member] | ||||
Potential dilutive securities, excluded from computation of earnings | 1,009,021 | |||
Warrant [Member] | ||||
Potential dilutive securities, excluded from computation of earnings | 3,914,299 | 1,730,868 | ||
Stock Option [Member] | ||||
Potential dilutive securities, excluded from computation of earnings | 4,516,019 | 2,173,485 | ||
Restricted Stock Units RSU [Member] | ||||
Potential dilutive securities, excluded from computation of earnings | 355,590 | 5,590 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Loss per Share - Basic | ||||
Numerator for basic loss per share | $ (5,714,389) | $ (3,644,901) | $ (12,122,880) | $ (6,786,607) |
Denominator for basic loss per share | 15,373,510 | 13,415,920 | 14,408,971 | 13,123,646 |
Loss per common share - basic | $ (0.37) | $ (0.27) | $ (0.84) | $ (0.52) |
Loss per Share - Diluted | ||||
Adjust: Change in Fair Value of Warrant Liability | $ (1,000,032) | |||
Adjust: Change in Fair Value Warrant Derivative Liability | 106,349 | |||
Numerator for dilutive loss per share | $ (5,714,389) | $ (3,644,901) | $ (12,122,880) | $ (7,680,290) |
Plus: Incremental shares underlying "in the money" warrants outstanding | 201,084 | |||
Denominator for dilutive loss per share | 15,373,510 | 13,415,920 | 14,408,971 | 13,324,730 |
Loss per common share - diluted | $ (0.37) | $ (0.27) | $ (0.84) | $ (0.58) |
Acquisiton of U.S. Compoundin28
Acquisiton of U.S. Compounding (Details Narrative) - US Compounding [Member] | Apr. 12, 2016USD ($)shares |
Shares of stock issuable in conversion right of stock in acquisition | shares | 1,618,539 |
Total liabilities assumed in acquisition | $ | $ 5,722,558 |
Acquisiton of U.S. Compoundin29
Acquisiton of U.S. Compounding (Details) - US Compounding [Member] | Apr. 12, 2016USD ($) |
Stock to Seller at Close | $ 3,598,884 |
Stock to Escrow | 1,899,000 |
Incentive Stock to Seller | 4,747,500 |
Plus: Assumed Liabilities | 5,722,558 |
Total Estimated Purchase Price | $ 15,967,942 |
Acquisiton of U.S. Compoundin30
Acquisiton of U.S. Compounding (Details 1) - USD ($) | Jun. 30, 2016 | Apr. 12, 2016 |
Assets Acquired: | ||
Goodwill | $ 2,225,101 | |
US Compounding [Member] | ||
Assets Acquired: | ||
Cash | $ 381,883 | |
Accounts Receivable and Prepaid Expenses | 527,034 | |
Inventory | 943,958 | |
Property, Plant & Equipment | 5,202,356 | |
Intangible Assets | 12,419,000 | |
Goodwill | 2,225,101 | |
Total assets | 21,699,332 | |
Liabilities Assumed: | ||
Accounts Payable and Accrued Expenses | 5,731,390 | |
Total Liabilities | 5,731,390 | |
Total Estimated Purchase Price | $ 15,967,942 |
Inventories (Details)
Inventories (Details) | Jun. 30, 2016USD ($) |
Inventory Disclosure [Abstract] | |
Finished Goods | $ 538,127 |
Raw Material | 509,320 |
Devices | 178,650 |
Inventories | $ 1,226,097 |
Fixed Assets (Details Narrative
Fixed Assets (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 147,199 | $ 152,053 |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Costs/FMV | $ 5,316,288 | |
Accumulated Depreciation | (190,893) | |
Fixed Assets, net | 5,125,395 | $ 58,260 |
Equipment [Member] | ||
Costs/FMV | 97,100 | |
Accumulated Depreciation | (48,550) | |
Fixed Assets, net | 48,550 | |
Land [Member] | US Compounding [Member] | ||
Costs/FMV | 460,000 | |
Fixed Assets, net | 460,000 | |
Building [Member] | US Compounding [Member] | ||
Costs/FMV | 3,040,000 | |
Accumulated Depreciation | (21,213) | |
Fixed Assets, net | 3,018,787 | |
Machinery and Equipment [Member] | US Compounding [Member] | ||
Costs/FMV | 1,296,126 | |
Accumulated Depreciation | (107,108) | |
Fixed Assets, net | 1,189,018 | |
Furniture and Fixtures [Member] | US Compounding [Member] | ||
Costs/FMV | 129,630 | |
Accumulated Depreciation | (7,577) | |
Fixed Assets, net | 122,053 | |
Automobiles [Member] | US Compounding [Member] | ||
Costs/FMV | 9,395 | |
Accumulated Depreciation | (844) | |
Fixed Assets, net | 8,551 | |
Leasehold Improvements [Member] | US Compounding [Member] | ||
Costs/FMV | 284,037 | |
Accumulated Depreciation | (5,601) | |
Fixed Assets, net | $ 278,436 |
Intangible Assets and Goodwil34
Intangible Assets and Goodwill (Details Narrative) | Apr. 12, 2016USD ($) |
US Compounding [Member] | |
Goodwill | $ 2,225,101 |
Intangible Assets and Goodwil35
Intangible Assets and Goodwill (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Cost | $ 22,127,700 | |
Accumulated Amortization | (2,756,305) | |
Net Carrying Value | $ 19,371,395 | $ 7,766,960 |
US Compounding [Member] | Trade Name and Brand [Member] | ||
Amortization Period | Indefinite | |
Cost | $ 1,245,000 | |
Net Carrying Value | $ 1,245,000 | |
Taper DPI Intellectual Property [Member] | ||
Amortization Period | 5 years | |
Cost | $ 9,708,700 | |
Accumulated Amortization | (2,427,175) | |
Net Carrying Value | $ 7,281,525 | |
Non-competition Agreement [Member] | US Compounding [Member] | ||
Amortization Period | 3 years | |
Cost | $ 1,639,000 | |
Accumulated Amortization | (119,890) | |
Net Carrying Value | $ 1,519,110 | |
Customer Relationships [Member] | US Compounding [Member] | ||
Amortization Period | 10 years | |
Cost | $ 5,572,000 | |
Accumulated Amortization | (122,274) | |
Net Carrying Value | $ 5,449,726 | |
FDA 503B Registration and Compliance [Member] | US Compounding [Member] | ||
Amortization Period | 10 years | |
Cost | $ 3,963,000 | |
Accumulated Amortization | (86,966) | |
Net Carrying Value | $ 3,876,034 |
Intangible Assets and Goodwil36
Intangible Assets and Goodwill (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Amortization Expense | $ 571,848 | $ 571,848 |
Taper DPI Intellectual Property [Member] | ||
Amortization Expense | 242,718 | 485,435 |
Non-competition Agreement [Member] | US Compounding [Member] | ||
Amortization Expense | 119,890 | 119,890 |
Customer Relationships [Member] | US Compounding [Member] | ||
Amortization Expense | 122,274 | 122,274 |
FDA 503B Registration and Compliance [Member] | US Compounding [Member] | ||
Amortization Expense | $ 86,966 | $ 86,966 |
Intangible Assets and Goodwil37
Intangible Assets and Goodwill (Details 2) | Jun. 30, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2016 | $ 1,235,352 |
2,017 | 2,470,703 |
2,018 | 2,470,703 |
2,019 | 2,077,647 |
2,020 | 1,924,370 |
Thereafter | 7,947,620 |
[us-gaap:FiniteLivedIntangibleAssetsNet] | $ 18,126,395 |
Sale of Preferred Stock (Detail
Sale of Preferred Stock (Details Narrative) | Jan. 26, 2016USD ($)$ / sharesshares | Aug. 19, 2014$ / sharesshares | Jun. 30, 2016shares | Jun. 30, 2016shares | Dec. 31, 2015shares |
Series A Convertible Preferred Stock [Member] | |||||
Stock issued in private placement, shares | 1,418,439 | ||||
Warrants issued with preferred stock | 1,418,439 | ||||
Price per convertible unit | $ / shares | $ 3.525 | ||||
Conversion ratio of unit | 1 | 1 | |||
Warrant exercise price | $ / shares | $ 3.40 | ||||
Expected Term | 5 years | ||||
Number of trading days to give call notice | 10 days | ||||
Number of consecutive trading days | 20 days | ||||
Number of trading days for benefical ownership | 5 days | ||||
Number of consecutive trading days for benefical ownership | 30 days | ||||
Number of trading days for exercise price | 25 days | ||||
Number of consecutive trading days for exercise price | 30 days | ||||
Warrant exercise price as computed with VWAP percent | $ / shares | $ 8.50 | ||||
Number of trading days of an effective call period | 30 days | ||||
Percentage of volume weighted average price of stock during call period | 225.00% | ||||
Shares Converted | 1,009,021 | 1,418,439 | |||
Preferred Stock, Shares Outstanding | 0 | 0 | 1,009,021 | ||
Series A Convertible Preferred Stock [Member] | Minimum [Member] | |||||
Percentage of volume weighted average price of stock | 250.00% | ||||
Benefical ownership of company's common stock | 2.00% | ||||
Series A-1 Preferred Stock [Member] | |||||
Stock issued in private placement, shares | 1,183,432 | ||||
Warrants issued with preferred stock | 1,183,432 | ||||
Price per convertible unit | $ / shares | $ 4.225 | ||||
Conversion ratio of unit | 1 | 1 | |||
Gross proceeds from issuance of preferred stock | $ | $ 5,000,000 | ||||
Warrant exercise price | $ / shares | $ 4.10 | ||||
Expected Term | 5 years | ||||
Percentage of volume weighted average price of stock | 250.00% | ||||
Warrant exercise price as computed with VWAP percent | $ / shares | $ 10.25 | ||||
Shares Converted | 1,183,432 | 1,183,432 |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) | Jun. 26, 2013 | Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2004 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||||
Warrant Derivative Liabilities, at fair value | $ 383,404 | ||||
Bank Loan - Line of Credit | $ 4,115,792 | $ 4,115,792 | |||
Interest expense | $ 72,391 | $ 72,391 | |||
Convertible Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Gross proceeds from issuance of debt | $ 5,300,000 | ||||
Warrant shares | 764,960 | ||||
Finance costs | $ 286,349 | ||||
Debt face amount | $ 6,502,158 | ||||
Warrants exercisable period | 5 years | ||||
Warrant exercise price | $ 12.155 | $ 3.40 | $ 3.40 | ||
Percentage of closing price compare to exercise price | 110.00% | ||||
Percentage of volume weighted average price of stock | 250.00% | 250.00% | |||
Number of trading days to give call notice | 10 days | ||||
Number of consecutive trading days | 20 days | ||||
Warrants exercise, trading days after call date | 14 days | ||||
Estimated fair value of warrants (in dollars per share) | $ 2.329 | ||||
Warrant call commencement (trading days) | 5 days | ||||
Warrant call, trigger conditions been in effect (trading days) | 15 days | ||||
Warrants exercise, call notice before warrant expiration (trading days) | 30 days | ||||
Warrants exercise, call notice before warrant call (trading days) | 15 days | ||||
Estimated fair value of anti-dilution warrants (in dollars per share) | $ 1.2002 | ||||
Change in Fair Value of Conversion Feature Liability | $ 2,398,280 | ||||
Warrant Derivative Liabilities, at fair value | $ 2,398,280 | ||||
Bear State Bank Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Warrant shares | 1,000,000 | 1,000,000 | |||
Maximum Borrowing Capacity | $ 2,000,000 | $ 2,000,000 | |||
Bank Loan - Line of Credit | $ 2,000,000 | 2,000,000 | |||
Interest expense | $ 11,000 | ||||
Biosyn [Member] | Ben Fraklin Note [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt face amount | $ 777,902 | ||||
Debt fair value | $ 205,000 | ||||
Annual fixed remittance | 3.00% | ||||
Accretion of debt discount | $ 572,902 | ||||
Discount period | 5 years | ||||
Effective interest rate | 46.00% |
Debt (Details Narrative 1)
Debt (Details Narrative 1) | Jun. 30, 2016USD ($) |
Building Loan [Member] | |
Debt Instrument [Line Items] | |
Debt amount | $ 2,454,000 |
Effective interest rate | 3.75% |
Interest payable | $ 37,000 |
Equipment Loan - Tribune [Member] | |
Debt Instrument [Line Items] | |
Debt amount | $ 518,000 |
Effective interest rate | 4.75% |
Interest payable | $ 19,000 |
USC Working Capital Loan [Member] | |
Debt Instrument [Line Items] | |
Debt amount | $ 2,116,000 |
Effective interest rate | 3.25% |
Borrowing capacity under loan | $ 2,500,000 |
Interest payable | $ 43,000 |
Borrowing base - trade account receivables | 80.00% |
Borrowing base - inventories | 50.00% |
USC Equipment Loan [Member] | |
Debt Instrument [Line Items] | |
Debt amount | $ 635,000 |
Effective interest rate | 3.25% |
Borrowing capacity under loan | $ 700,000 |
Interest payable | $ 13,000 |
Derivative Liabilities and Fa41
Derivative Liabilities and Fair Value Measurements (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Liability classified warrants outstanding | 575,164 | |
Exercise of warrants | 52,288 | |
Warrants cancelled | 522,876 | |
Adjustment to additional paid-in capital warrants exercised | $ 160,245 |
Derivative Liabilities and Fa42
Derivative Liabilities and Fair Value Measurements (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2016 | Mar. 31, 2016 | |
Reconciliation of Derivative Fair Value | ||
Balance, Beginning | $ (1,878,196) | $ (1,557,716) |
Release of Warrant Liability Upon Exercise | 89,438 | 70,807 |
Net Change in Fair Value | 89,438 | (391,287) |
Balance, End | (1,878,196) | |
Warrant Down-round Protection Derivative [Member] | ||
Reconciliation of Derivative Fair Value | ||
Balance, Beginning | (374,541) | (383,404) |
Release of Warrant Liability Upon Exercise | 17,835 | 17,428 |
Net Change in Fair Value | 356,706 | (8,565) |
Balance, End | (374,541) | |
Warrant [Member] | ||
Reconciliation of Derivative Fair Value | ||
Balance, Beginning | (1,503,655) | (1,174,312) |
Release of Warrant Liability Upon Exercise | 71,603 | 53,379 |
Net Change in Fair Value | $ 1,432,052 | (382,722) |
Balance, End | $ (1,503,655) |
Derivative Liabilities and Fa43
Derivative Liabilities and Fair Value Measurements (Details 1) - USD ($) | 6 Months Ended | ||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Fair Value | $ 1,878,196 | $ 1,557,716 | |
Warrant Derivative And Warrant Down Round Protection Derivative Combined [Member] | Binomial Option Pricing Model [Member] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Fair value inputs probability of common stock issuance at price less than agreed exercise price | 50.00% | ||
Fair value inputs probability of waiver of reset provision | 5.00% |
Common Stock (Details Narrative
Common Stock (Details Narrative) | Jun. 02, 2016USD ($)shares | Apr. 15, 2016USD ($)$ / sharesshares | Apr. 11, 2016shares | Jan. 26, 2016 | Aug. 19, 2014 | Jun. 30, 2016shares | May 26, 2016$ / sharesshares | Jun. 30, 2016$ / sharesshares | May 25, 2016$ / shares |
Class of Stock [Line Items] | |||||||||
Common Stock Issued for Acquisition | 1,618,539 | ||||||||
Common Stock Issued for Exercised Warrants | $ | $ 89,000 | ||||||||
Common Stock Issued for Exercised Warrants, shares | 26,144 | ||||||||
Exercise price of warrants exercised | $ / shares | $ 3.40 | ||||||||
Common stock price | $ / shares | $ 8.46 | ||||||||
Shares issued for unpaid compensation, shares | 6,669 | ||||||||
Shares issued for unpaid compensation, value | $ | $ 59,000 | ||||||||
Series A Convertible Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Shares Converted | 1,009,021 | 1,418,439 | |||||||
Conversion ratio of unit | 1 | 1 | |||||||
Series A-1 Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Shares Converted | 1,183,432 | 1,183,432 | |||||||
Conversion ratio of unit | 1 | 1 | |||||||
2009 Equity Incentive Plan [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common Stock Issued for Exercised Options, shares | 10,708 | (46,379) | |||||||
Stock options exercised during period in cashless exercise | 29,712 | ||||||||
Common stock price | $ / shares | $ 8.51 | ||||||||
Exercise price of exercised options | $ / shares | $ 5.07 | ||||||||
2009 Equity Incentive Plan [Member] | Minimum [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Exercise price of exercised options | $ / shares | 4.10 | ||||||||
2009 Equity Incentive Plan [Member] | Maximum [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Exercise price of exercised options | $ / shares | $ 6.53 |
Stock Option Plans, Shares Re45
Stock Option Plans, Shares Reserved and Warrants (Details Narrative) - USD ($) | May 25, 2016 | Jun. 30, 2016 | May 26, 2016 | Dec. 31, 2015 | Dec. 31, 2009 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock price | $ 8.46 | ||||
Consultant Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted | 155,000 | ||||
Option exercise price | $ 8.46 | ||||
Expected volatility | 56.00% | ||||
Risk-free interest rate | 1.40% | ||||
Expected dividend rate | 0.00% | ||||
Fair value of awards granted | $ 643,250 | ||||
Vesting period | 5 years | ||||
Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value of awards granted | $ 2,961,000 | ||||
Vesting period | 7 years | ||||
Awards granted | 350,000 | ||||
2009 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reserved shares of common stock for issuance upon exercise | 8,556,800 | 4,066,800 | 411,765 | ||
Number of shares authorized description | the lesser of (a) 5.0% of the total number of shares of common stock outstanding on December 31 of the preceding calendar year or (b) a lesser number of shares of common stock determined by the Company’s board of directors before the start of a calendar year for which an increase applies | ||||
Number of additional shares authorized | 4,500,000 | ||||
Options granted | 1,290,000 | 2,490,697 | |||
Option exercise price | $ 8.46 | $ 6.65 | |||
Expected volatility | 59.00% | ||||
Risk-free interest rate | 1.69% | ||||
Expected dividend rate | 0.00% | ||||
Fair value of awards granted | $ 6,063,000 | ||||
Vesting period | 6 years | ||||
Common stock price | $ 8.51 | ||||
Options outstanding | 4,516,019 | 2,112,800 | |||
Aggregate intrinsic value of stock options outstanding | $ 0 | $ 916,000 | |||
Options exercisable | 1,748,933 | 1,173,443 | |||
Aggregate intrinsic value of stock options exercisable | $ 0 | $ 681,000 |
Stock Option Plans, Shares Re46
Stock Option Plans, Shares Reserved and Warrants (Details) - 2009 Equity Incentive Plan [Member] - $ / shares | May 25, 2016 | May 26, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Number of options | ||||
Options outstanding, beginning | 2,112,800 | |||
Options granted | 1,290,000 | 2,490,697 | ||
Options excercised | 10,708 | (46,379) | ||
Options canceled | (41,099) | |||
Options outstanding, ending | 4,516,019 | 2,112,800 | ||
Options exercisable | 1,748,933 | 1,173,443 | ||
Weighted average exercise price | ||||
Options outstanding, beginning | $ 5.60 | |||
Options granted | $ 8.46 | 6.65 | ||
Options exercised | 5.07 | |||
Options canceled | 4.93 | |||
Options outstanding, ending | 6.19 | $ 5.60 | ||
Options exercisable | $ 5.77 | |||
Weighted average remaining contractual life | ||||
Balance | 8 years 6 months | 7 years 3 months 4 days | ||
Options granted | 9 years 5 months 16 days | |||
Exercisable, ending | 8 years 9 months |
Stock Option Plans, Shares Re47
Stock Option Plans, Shares Reserved and Warrants (Details 1) | 6 Months Ended | |
Jun. 30, 2016$ / sharesshares | ||
Warrant [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant shares | 3,914,299 | |
Old Adamis Warrants [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant shares | 58,824 | |
Warrant exercise price | $ / shares | $ 8.50 | |
Date Issued | Nov. 15, 2007 | |
Expiration Date | Nov. 15, 2017 | |
Two Thousand Thirteen Private Placement [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant shares | 22,057 | |
Warrant exercise price | $ / shares | $ 12.16 | |
Date Issued | Jun. 26, 2013 | |
Expiration Date | Jun. 25, 2018 | |
Consultant Warrants [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant shares | 17,647 | |
Warrant exercise price | $ / shares | $ 3.74 | |
Date Issued | Jul. 11, 2011 | |
Expiration Date | Jul. 11, 2016 | |
Underwriter Warrants 1 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant shares | 186,000 | |
Warrant exercise price | $ / shares | $ 7.44 | |
Date Issued | Dec. 12, 2013 | |
Expiration Date | Dec. 12, 2018 | |
Underwriter Warrants 2 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant shares | 27,900 | |
Warrant exercise price | $ / shares | $ 7.44 | |
Date Issued | Jan. 16, 2014 | |
Expiration Date | Jan. 16, 2019 | |
Aug 2014 Preferred Stock Sale [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant shares | 1,418,439 | |
Warrant exercise price | $ / shares | $ 3.40 | |
Date Issued | Aug. 19, 2014 | |
Expiration Date | Aug. 19, 2019 | |
Jan 2016 Preferred Stock Sale [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant shares | 1,183,432 | |
Warrant exercise price | $ / shares | $ 4.10 | |
Date Issued | Jan. 26, 2016 | |
Expiration Date | Jan. 26, 2021 | |
Bear State Collateral [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrant shares | 1,000,000 | [1] |
Warrant exercise price | $ / shares | $ 0.0001 | |
Date Issued | Mar. 28, 2016 | |
[1] | Exercisable upon default of Line of Credit at Bear State Bank, please see Note 7. |
Stock Option Plans, Shares Re48
Stock Option Plans, Shares Reserved and Warrants (Details 2) | Jun. 30, 2016shares |
Share Based Compensation Arrangement By Share Based Payment Award And Warrants [Line Items] | |
Reserved shares of common stock for issuance upon exercise | 12,481,099 |
2009 Equity Incentive Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award And Warrants [Line Items] | |
Reserved shares of common stock for issuance upon exercise | 8,566,800 |
Warrant [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award And Warrants [Line Items] | |
Reserved shares of common stock for issuance upon exercise | 3,914,299 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] | Aug. 03, 2016USD ($)$ / sharesshares | Jul. 11, 2016USD ($)$ / sharesshares |
Cash proceeds in private placement | $ | $ 10,300,000 | $ 5,000,000 |
Price per convertible unit | $ / shares | $ 3.095 | |
Warrants exercisable period | 5 years | |
Warrant exercise price | $ / shares | $ 2.98 | |
Stock issued for units, shares | shares | 3,573,255 | |
Warrants issued in direct offering, shares | shares | 3,573,255 | |
Consultant Warrants Cancelled [Member] | ||
Warrant shares | shares | 17,647 | |
Warrant exercise price | $ / shares | $ 3.74 | |
Series A-2 Preferred Stock [Member] | ||
Common stock issued in private placement, shares | shares | 1,724,137 | |
Price per convertible unit | $ / shares | $ 2.90 | |
Conversion ratio of unit | 1 | |
Series A-2 Preferred Stock [Member] | Warrant [Member] | ||
Warrant shares | shares | 1,724,137 | |
Warrants exercisable period | 5 years | |
Warrant exercise price | $ / shares | $ 2.90 |