2017 Q1 Form 10-K Financial Statement

#000162828017002566 Filed on March 14, 2017

View on sec.gov

Income Statement

Concept 2017 Q1 2016 Q4 2015 Q4
Revenue $384.2K $182.0K $0.00
YoY Change
Cost Of Revenue $0.00
YoY Change
Gross Profit $384.2K
YoY Change
Gross Profit Margin 100.0%
Selling, General & Admin $1.330M $1.090M $1.920M
YoY Change -49.8% -43.23% 22.29%
% of Gross Profit 346.24%
Research & Development $953.1K $773.0K $1.751M
YoY Change -58.44% -55.85% -22.52%
% of Gross Profit 248.06%
Depreciation & Amortization $5.830K $10.00K $0.00
YoY Change -14.11% -100.0%
% of Gross Profit 1.52%
Operating Expenses $2.283M $773.0K $1.751M
YoY Change -0.42% -55.85% -54.28%
Operating Profit -$1.899M
YoY Change -61.57%
Interest Expense -$57.75K -$83.00K -$158.0K
YoY Change -61.76% -47.47% -112.06%
% of Operating Profit
Other Income/Expense, Net -$61.51K
YoY Change -68.88%
Pretax Income -$1.960M -$1.640M -$3.650M
YoY Change -61.87% -55.07% 44.84%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$1.961M -$1.639M -$3.648M
YoY Change -61.86% -55.07% -136.44%
Net Earnings / Revenue -510.31% -900.55%
Basic Earnings Per Share -$0.19
Diluted Earnings Per Share -$0.19 -$2.12 -$5.07
COMMON SHARES
Basic Shares Outstanding 10.74M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2017 Q1 2016 Q4 2015 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.000M $5.130M $21.16M
YoY Change -81.93% -75.76% 80.24%
Cash & Equivalents $3.002M $5.128M $21.16M
Short-Term Investments
Other Short-Term Assets $270.0K $400.0K $460.0K
YoY Change -6.9% -13.04% 9.52%
Inventory $0.00
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $3.459M $5.663M $21.62M
YoY Change -79.52% -73.81% 77.82%
LONG-TERM ASSETS
Property, Plant & Equipment $39.21K $43.24K $35.22K
YoY Change -1.97% 22.79% -11.96%
Goodwill $0.00
YoY Change
Intangibles $0.00
YoY Change
Long-Term Investments
YoY Change
Other Assets $60.00K $60.00K $0.00
YoY Change -100.0%
Total Long-Term Assets $102.0K $106.1K $35.22K
YoY Change 155.12% 201.2% -77.99%
TOTAL ASSETS
Total Short-Term Assets $3.459M $5.663M $21.62M
Total Long-Term Assets $102.0K $106.1K $35.22K
Total Assets $3.561M $5.769M $21.66M
YoY Change -78.97% -73.36% 75.79%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $595.9K $1.010M $678.1K
YoY Change 1.0% 48.97% -27.09%
Accrued Expenses $640.0K $940.0K $1.890M
YoY Change -70.23% -50.26% 92.86%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $1.492M $2.354M $3.208M
YoY Change -54.78% -26.63% 67.96%
Total Short-Term Liabilities $2.737M $4.312M $5.850M
YoY Change -55.65% -26.29% 17.23%
LONG-TERM LIABILITIES
Long-Term Debt $1.492M $0.00 $2.353M
YoY Change 0.16% -100.0% -55.68%
Other Long-Term Liabilities $1.250M $0.00 $370.5K
YoY Change 220.51% -100.0%
Total Long-Term Liabilities $1.492M $0.00 $2.724M
YoY Change -20.62% -100.0% -48.7%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.737M $4.312M $5.850M
Total Long-Term Liabilities $1.492M $0.00 $2.724M
Total Liabilities $3.987M $5.562M $8.574M
YoY Change -50.48% -35.13% -16.76%
SHAREHOLDERS EQUITY
Retained Earnings -$72.00M -$70.04M -$53.56M
YoY Change 30.75%
Common Stock $10.90K $9.434K $8.650K
YoY Change 9.06%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$425.8K $207.0K $13.08M
YoY Change
Total Liabilities & Shareholders Equity $3.561M $5.769M $21.66M
YoY Change -78.97% -73.36% 75.79%

Cashflow Statement

Concept 2017 Q1 2016 Q4 2015 Q4
OPERATING ACTIVITIES
Net Income -$1.961M -$1.639M -$3.648M
YoY Change -61.86% -55.07% -136.44%
Depreciation, Depletion And Amortization $5.830K $10.00K $0.00
YoY Change -14.11% -100.0%
Cash From Operating Activities -$2.236M -$3.710M -$3.540M
YoY Change -39.72% 4.8% -10.83%
INVESTING ACTIVITIES
Capital Expenditures $1.801K $0.00 $0.00
YoY Change -79.76%
Acquisitions $0.00
YoY Change
Other Investing Activities $0.00
YoY Change
Cash From Investing Activities -$1.801K $0.00 $0.00
YoY Change -81.99%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $1.187M
YoY Change
Debt Paid & Issued, Net $874.7K
YoY Change 8.81%
Cash From Financing Activities $121.0K 30.00K 21.40M
YoY Change -114.4% -99.86% -107100.0%
NET CHANGE
Cash From Operating Activities -$2.236M -3.710M -3.540M
Cash From Investing Activities -$1.801K 0.000 0.000
Cash From Financing Activities $121.0K 30.00K 21.40M
Net Change In Cash -$2.117M -3.680M 17.86M
YoY Change -53.57% -120.6% -547.62%
FREE CASH FLOW
Cash From Operating Activities -$2.236M -$3.710M -$3.540M
Capital Expenditures $1.801K $0.00 $0.00
Free Cash Flow -$2.238M -$3.710M -$3.540M
YoY Change -39.81% 4.8% -10.83%

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CY2016 us-gaap Effective Income Tax Rate Reconciliation Other Reconciling Items Percent
EffectiveIncomeTaxRateReconciliationOtherReconcilingItemsPercent
0.0000
CY2015 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes
0.0512
CY2016 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes
0.0344
CY2015Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
24326374 USD
CY2016Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
30874531 USD
CY2014 us-gaap Depreciation
Depreciation
28943 USD
CY2015 us-gaap Depreciation
Depreciation
23508 USD
CY2016 us-gaap Depreciation
Depreciation
26856 USD
CY2014 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-5.48
CY2015Q1 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-4.98
CY2015Q2 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-4.48
CY2015Q3 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-1.06
CY2015Q4 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.53
CY2015 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-4.71
CY2016Q1 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.59
CY2016Q2 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.41
CY2016Q3 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.70
CY2016Q4 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.18
CY2016 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-1.87
CY2015 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0
CY2015 us-gaap Effective Income Tax Rate Reconciliation Tax Credits Research
EffectiveIncomeTaxRateReconciliationTaxCreditsResearch
-0.0269
CY2016 us-gaap Effective Income Tax Rate Reconciliation Tax Credits Research
EffectiveIncomeTaxRateReconciliationTaxCreditsResearch
-0.0218
CY2015Q4 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
1128073 USD
CY2016Q4 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
272601 USD
CY2016Q4 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions
2047800 USD
CY2015Q4 us-gaap Fair Value Assets Level1 To Level2 Transfers Amount
FairValueAssetsLevel1ToLevel2TransfersAmount
0 USD
CY2016Q4 us-gaap Fair Value Assets Level1 To Level2 Transfers Amount
FairValueAssetsLevel1ToLevel2TransfersAmount
0 USD
CY2015Q4 us-gaap Fair Value Assets Level2 To Level1 Transfers Amount
FairValueAssetsLevel2ToLevel1TransfersAmount
0 USD
CY2016Q4 us-gaap Fair Value Assets Level2 To Level1 Transfers Amount
FairValueAssetsLevel2ToLevel1TransfersAmount
0 USD
CY2014 us-gaap Fair Value Assumptions Expected Term
FairValueAssumptionsExpectedTerm
P6Y3M
CY2014 us-gaap Gain Loss On Disposition Of Assets1
GainLossOnDispositionOfAssets1
-17806 USD
CY2015 us-gaap Gain Loss On Disposition Of Assets1
GainLossOnDispositionOfAssets1
0 USD
CY2016 us-gaap Gain Loss On Disposition Of Assets1
GainLossOnDispositionOfAssets1
0 USD
CY2014 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
4875030 USD
CY2015Q1 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
761000 USD
CY2015Q2 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
1016000 USD
CY2015Q3 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
722000 USD
CY2015Q4 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
1924000 USD
CY2015 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
4422764 USD
CY2016Q1 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
2649000 USD
CY2016 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
7083155 USD
CY2015Q4 us-gaap Grants Receivable Current
GrantsReceivableCurrent
0 USD
CY2016Q4 us-gaap Grants Receivable Current
GrantsReceivableCurrent
132472 USD
CY2014 us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
-708366 USD
CY2015 us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
-268709 USD
CY2016 us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
332100 USD
CY2014 us-gaap Increase Decrease In Other Accounts Payable And Accrued Liabilities
IncreaseDecreaseInOtherAccountsPayableAndAccruedLiabilities
-28400 USD
CY2015 us-gaap Increase Decrease In Other Accounts Payable And Accrued Liabilities
IncreaseDecreaseInOtherAccountsPayableAndAccruedLiabilities
1121054 USD
CY2016 us-gaap Increase Decrease In Other Accounts Payable And Accrued Liabilities
IncreaseDecreaseInOtherAccountsPayableAndAccruedLiabilities
-119495 USD
CY2014 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-353973 USD
CY2015 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
41243 USD
CY2016 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-22047 USD
CY2014 us-gaap Increase Decrease In Restricted Cash For Operating Activities
IncreaseDecreaseInRestrictedCashForOperatingActivities
498 USD
CY2015 us-gaap Increase Decrease In Restricted Cash For Operating Activities
IncreaseDecreaseInRestrictedCashForOperatingActivities
-116666 USD
CY2016 us-gaap Increase Decrease In Restricted Cash For Operating Activities
IncreaseDecreaseInRestrictedCashForOperatingActivities
15107 USD
CY2014 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
-1206187 USD
CY2015Q1 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
-219000 USD
CY2015Q2 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
-219000 USD
CY2015Q3 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
-197000 USD
CY2015Q4 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
-158000 USD
CY2015 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
-793205 USD
CY2016Q1 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
-151000 USD
CY2016Q2 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
-127000 USD
CY2016Q3 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
-104000 USD
CY2016Q4 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
-83000 USD
CY2016 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
-464181 USD
CY2014 us-gaap Interest Paid
InterestPaid
173514 USD
CY2015 us-gaap Interest Paid
InterestPaid
568299 USD
CY2016 us-gaap Interest Paid
InterestPaid
348888 USD
CY2015Q4 us-gaap Interest Payable Current
InterestPayableCurrent
39534 USD
CY2016Q4 us-gaap Interest Payable Current
InterestPayableCurrent
193781 USD
CY2015Q4 us-gaap Liabilities
Liabilities
8573838 USD
CY2016Q4 us-gaap Liabilities
Liabilities
5561863 USD
CY2015Q4 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
21657565 USD
CY2016Q4 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
5768865 USD
CY2015Q4 us-gaap Liabilities Current
LiabilitiesCurrent
5849818 USD
CY2016Q4 us-gaap Liabilities Current
LiabilitiesCurrent
4311863 USD
CY2015Q4 us-gaap Long Term Debt Current
LongTermDebtCurrent
3208074 USD
CY2016Q4 us-gaap Long Term Debt Current
LongTermDebtCurrent
2353667 USD
CY2015Q4 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
2353482 USD
CY2016Q4 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
0 USD
CY2014 us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
23858720 USD
CY2015 us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
19602982 USD
CY2016 us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
-1425988 USD
CY2014 us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
-19502 USD
CY2015 us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
-19984 USD
CY2015 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
21165589 USD
CY2016 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
1899987 USD
CY2016 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
3.35
CY2016 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P7Y2M27D
CY2016 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P8Y5M9D
CY2016 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageRemainingContractualTerm1
P8Y5M9D
CY2015Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2016Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2015Q4 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2016Q4 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2015Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
401550 USD
CY2016Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
391253 USD
CY2014 us-gaap Proceeds From Issuance Initial Public Offering
ProceedsFromIssuanceInitialPublicOffering
0 USD
CY2015 us-gaap Proceeds From Issuance Initial Public Offering
ProceedsFromIssuanceInitialPublicOffering
23685270 USD
CY2016 us-gaap Proceeds From Issuance Initial Public Offering
ProceedsFromIssuanceInitialPublicOffering
0 USD
CY2014 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
0 USD
CY2015 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
0 USD
CY2016 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
2003182 USD
CY2014 us-gaap Proceeds From Issuance Of Secured Debt
ProceedsFromIssuanceOfSecuredDebt
7390000 USD
CY2015 us-gaap Proceeds From Issuance Of Secured Debt
ProceedsFromIssuanceOfSecuredDebt
0 USD
CY2016 us-gaap Proceeds From Issuance Of Secured Debt
ProceedsFromIssuanceOfSecuredDebt
0 USD
CY2014 us-gaap Proceeds From Issuance Or Sale Of Equity
ProceedsFromIssuanceOrSaleOfEquity
14584307 USD
CY2015 us-gaap Proceeds From Issuance Or Sale Of Equity
ProceedsFromIssuanceOrSaleOfEquity
0 USD
CY2016 us-gaap Proceeds From Issuance Or Sale Of Equity
ProceedsFromIssuanceOrSaleOfEquity
0 USD
CY2014 us-gaap Proceeds From Short Term Debt
ProceedsFromShortTermDebt
2249666 USD
CY2015 us-gaap Proceeds From Short Term Debt
ProceedsFromShortTermDebt
0 USD
CY2016 us-gaap Proceeds From Short Term Debt
ProceedsFromShortTermDebt
0 USD
CY2015Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
96051 USD
CY2016Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
130934 USD
CY2015Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
35216 USD
CY2016Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
43243 USD
CY2014 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
0 USD
CY2015 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
1811744 USD
CY2016 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
3314225 USD
CY2014 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
12240535 USD
CY2015Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
1723000 USD
CY2015Q2 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
1875000 USD
CY2015Q3 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
1238000 USD
CY2015Q4 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
1751000 USD
CY2015 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
6587183 USD
CY2016Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
2293000 USD
CY2016Q2 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
2502000 USD
CY2016Q3 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
4582000 USD
CY2016Q4 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
773000 USD
CY2016 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
10149879 USD
CY2013Q4 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
175000 USD
CY2015Q4 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
58832 USD
CY2016Q4 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
11111 USD
CY2015Q4 us-gaap Restricted Cash And Cash Equivalents Noncurrent
RestrictedCashAndCashEquivalentsNoncurrent
0 USD
CY2016Q4 us-gaap Restricted Cash And Cash Equivalents Noncurrent
RestrictedCashAndCashEquivalentsNoncurrent
62828 USD
CY2015Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-53563480 USD
CY2016Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-70035083 USD
CY2016 us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
0 USD
CY2015Q4 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
135319 USD
CY2014 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested In Period Fair Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedInPeriodFairValue1
1300000 USD
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
915242 shares
CY2014 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
2.24
CY2015 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested In Period Fair Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedInPeriodFairValue1
700000 USD
CY2015 us-gaap Stock Issued During Period Value Conversion Of Convertible Securities
StockIssuedDuringPeriodValueConversionOfConvertibleSecurities
28344157 USD
CY2014 us-gaap Revenue From Grants
RevenueFromGrants
0 USD
CY2015 us-gaap Revenue From Grants
RevenueFromGrants
0 USD
CY2016Q1 us-gaap Revenue From Grants
RevenueFromGrants
0 USD
CY2016Q2 us-gaap Revenue From Grants
RevenueFromGrants
650000 USD
CY2016Q3 us-gaap Revenue From Grants
RevenueFromGrants
321000 USD
CY2016Q4 us-gaap Revenue From Grants
RevenueFromGrants
182000 USD
CY2016 us-gaap Revenue From Grants
RevenueFromGrants
1152987 USD
CY2014 us-gaap Share Based Compensation
ShareBasedCompensation
1086581 USD
CY2015 us-gaap Share Based Compensation
ShareBasedCompensation
394748 USD
CY2016 us-gaap Share Based Compensation
ShareBasedCompensation
1694891 USD
CY2014 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.0000
CY2015 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.0000
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0
CY2014 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.700
CY2015 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.700
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
791251 shares
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
7.55
CY2015 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
116928 shares
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
25071 shares
CY2015 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
523390 shares
CY2015 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
2.80
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
2.35
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
552726 shares
CY2015Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
959188 shares
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
1849359 shares
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
9.17
CY2015Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
7.68
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
5.57
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue
0 USD
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber
1849359 shares
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice
5.57
CY2015 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
8.60
CY2016 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
5.04
CY2015 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
6.31
CY2016 us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
-34883 USD
CY2014 us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
-15518349 USD
CY2015 us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
-10163380 USD
CY2016 us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
-14573138 USD
CY2014 us-gaap Net Income Loss
NetIncomeLoss
-16055591 USD
CY2015Q1 us-gaap Net Income Loss
NetIncomeLoss
-3238000 USD
CY2015Q2 us-gaap Net Income Loss
NetIncomeLoss
-2912000 USD
CY2015Q3 us-gaap Net Income Loss
NetIncomeLoss
-692000 USD
CY2015Q4 us-gaap Net Income Loss
NetIncomeLoss
-3648000 USD
CY2015 us-gaap Net Income Loss
NetIncomeLoss
-10490103 USD
CY2016Q1 us-gaap Net Income Loss
NetIncomeLoss
-5140000 USD
CY2016Q2 us-gaap Net Income Loss
NetIncomeLoss
-3524000 USD
CY2016Q3 us-gaap Net Income Loss
NetIncomeLoss
-6169000 USD
CY2016Q4 us-gaap Net Income Loss
NetIncomeLoss
-1639000 USD
CY2016 us-gaap Net Income Loss
NetIncomeLoss
-16471603 USD
CY2014 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-3521153 USD
CY2015 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-10490103 USD
CY2016 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-16471603 USD
CY2014 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
1059974 USD
CY2015 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
519844 USD
CY2016 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-391556 USD
CY2016 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1
CY2014 us-gaap Operating Income Loss
OperatingIncomeLoss
-17115565 USD
CY2015 us-gaap Operating Income Loss
OperatingIncomeLoss
-11009947 USD
CY2016 us-gaap Operating Income Loss
OperatingIncomeLoss
-16080047 USD
CY2016Q4 us-gaap Operating Leases Future Minimum Payments Due
OperatingLeasesFutureMinimumPaymentsDue
313561 USD
CY2016Q4 us-gaap Operating Leases Future Minimum Payments Due Current
OperatingLeasesFutureMinimumPaymentsDueCurrent
154845 USD
CY2016Q4 us-gaap Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
158716 USD
CY2015 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
142000 USD
CY2016 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
142000 USD
CY2015Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
370538 USD
CY2016Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
1250000 USD
CY2014 us-gaap Paid In Kind Interest
PaidInKindInterest
989258 USD
CY2015 us-gaap Paid In Kind Interest
PaidInKindInterest
293748 USD
CY2016 us-gaap Paid In Kind Interest
PaidInKindInterest
162270 USD
CY2014 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
19502 USD
CY2015 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
19984 USD
CY2016 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
34883 USD
CY2015Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2016Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2016Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2015Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
5000000 shares
CY2016Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
5000000 shares
CY2015Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2016Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2013Q4 us-gaap Stockholders Equity
StockholdersEquity
-17846675 USD
CY2014Q4 us-gaap Stockholders Equity
StockholdersEquity
-26330664 USD
CY2015Q4 us-gaap Stockholders Equity
StockholdersEquity
13083727 USD
CY2016Q4 us-gaap Stockholders Equity
StockholdersEquity
207002 USD
CY2016Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
0 USD
CY2016Q4 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
0 USD
CY2016 us-gaap Unrecognized Tax Benefits Period Increase Decrease
UnrecognizedTaxBenefitsPeriodIncreaseDecrease
0 USD
CY2016 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
6500000 USD
CY2014 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
642052 shares
CY2015 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
2226023 shares
CY2016 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
8830396 shares
CY2016 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Concentration of Credit Risk</font></div><div style="line-height:120%;text-indent:84px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and cash equivalents. The Company maintains a portion of its cash and cash equivalent balances in the form of a money market account with a financial institution that management believes to be creditworthy. The Company has no financial instruments with off&#8209;balance sheet risk of loss.</font></div></div>
CY2016 us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Business</font></div><div style="line-height:120%;text-indent:84px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Cerecor&#160;Inc. (the &#8220;Company&#8221; or &#8220;Cerecor&#8221;) was incorporated on January&#160;31, 2011 in Delaware. The Company is a clinical&#8209;stage biopharmaceutical company with the goal of becoming a leader in the development of innovative drugs that make a difference in the lives of patients with neurological and psychiatric disorders. The Company&#8217;s operations since inception have been limited to organizing and staffing the Company, acquiring rights to and developing certain product candidates, business planning and raising capital.</font></div><div style="line-height:120%;text-indent:132px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Liquidity - Going Concern</font></div><div style="line-height:120%;text-indent:84px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company's financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Accordingly, the financial statements do not include any adjustments that might be necessary should the Company be unable to continue to fund its operations. The Company has not generated any product revenues and has not yet achieved profitable operations. There is no assurance that profitable operations will ever be achieved, and if achieved, could be sustained on a continuing basis.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company has incurred recurring operating losses since inception. For the year ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2016</font><font style="font-family:inherit;font-size:10pt;">, the Company incurred a net loss of </font><font style="font-family:inherit;font-size:10pt;">$16.5 million</font><font style="font-family:inherit;font-size:10pt;"> and generated negative cash flows from operations of </font><font style="font-family:inherit;font-size:10pt;">$14.6 million</font><font style="font-family:inherit;font-size:10pt;">. As of </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2016</font><font style="font-family:inherit;font-size:10pt;">, the Company had an accumulated deficit of </font><font style="font-family:inherit;font-size:10pt;">$70.0 million</font><font style="font-family:inherit;font-size:10pt;">. The Company anticipates operating losses to continue for the foreseeable future due to, among other things, costs related to the clinical development of its product candidates, its preclinical programs, business development and its organizational infrastructure. The Company will require substantial additional financing to fund its operations and to continue to execute its strategy. To fully execute its business plan, the Company will need to complete certain research and development activities, have positive clinical trial results and obtain marketing approval for its product candidates, which may span many years, and may ultimately be unsuccessful. Any delays in completing these activities or negative clinical trial results could adversely impact the Company. The Company plans to meet its capital requirements primarily through further offerings of equity or debt securities, non-dilutive financing arrangements such as federal grants, collaboration agreements or out-licensing arrangements, and to explore strategic alternatives such as an acquisition, merger, or business combination. In the long term, the Company plans to meet its capital requirements through revenue from product sales to the extent its product candidates receive marketing approval and are commercialized. There can be no assurance, however, that the Company will be successful in obtaining financing at the level needed to sustain operations and develop its product candidates or on terms acceptable to the Company, that the Company's exploration of strategic alternatives will result in any such transaction, or that the Company will obtain approvals necessary to market its products or achieve profitability or sustainable, positive cash flow. If the Company fails to raise capital or enter into such arrangements or transactions in the short term, it will have to significantly delay, scale back or discontinue the development of one or more of its product candidates or cease its operations altogether. The Company currently anticipates that current cash and cash equivalents will be sufficient to meet its anticipated cash requirements well into the second quarter of 2017. These factors raise substantial doubt about the Company's ability to continue as a going concern within one year of the date that our financial statements were issued.</font></div></div>
CY2016 us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Grant Revenue Recognition</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company recognizes grant revenue when there is (i) reasonable assurance of compliance with the conditions of the grant and (ii) reasonable assurance that the grant will be received. In April 2016, the Company received a research and development grant from the National Institute on Drug Abuse ("NIDA") at the National Institutes of Health ("NIH") to provide additional resources for the period of May 2016 through April 2017 for the Company&#8217;s now completed Phase 2 clinical trial for CERC-501, &#8220;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">A Randomized, Double-Blind, Placebo-Controlled, Crossover Design Study of CERC-501 in a Human Laboratory Model of Smoking Behavior</font><font style="font-family:inherit;font-size:10pt;">.&#8221; The amount of the NIDA award was </font><font style="font-family:inherit;font-size:10pt;">$1.02 million</font><font style="font-family:inherit;font-size:10pt;">. Additionally, in July 2016, the Company received a research and development grant from the National Institute on Alcohol Abuse and Alcoholism ("NIAAA") at the NIH to provide additional resources for the period of July 2016 through June 2017 to progress the development of CERC-501 for the treatment of alcohol use disorder. The amount of the NIAAA award was </font><font style="font-family:inherit;font-size:10pt;">$1.0 million</font><font style="font-family:inherit;font-size:10pt;">. The Company recognizes revenue under grants in earnings on a systemic basis in the period the related expenditures for which the grants are intended to compensate are incurred.</font></div></div>
CY2016 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;text-indent:84px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, other comprehensive income and related disclosures. On an ongoing basis, management evaluates its estimates, including estimates related to clinical trial accruals, warrant liability and embedded derivative liabilities. The Company bases its estimates on historical experience and other market&#8209;specific or other relevant assumptions that it believes to be reasonable under the circumstances. Actual results may differ from those estimates or assumptions.</font></div><div style="line-height:120%;text-indent:132px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Prior to being a public company, the Company utilized estimates and assumptions in determining the fair value of its common stock as an input for determining the grant date fair value of stock option grants. Management used the assistance of a third&#8209;party valuation firm in estimating the fair value of the common stock. The board of directors determined the estimated fair value of the common stock based on a number of objective and subjective factors, including external market conditions affecting the biotechnology industry sector and the historic prices at which the Company sold shares of its preferred stock.</font></div></div>

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