2016 Q1 Form 10-Q Financial Statement
#000143774916032031 Filed on May 16, 2016
Income Statement
| Concept | 2016 Q1 | 2015 Q1 |
|---|---|---|
| Revenue | $0.00 | $0.00 |
| YoY Change | ||
| Cost Of Revenue | ||
| YoY Change | ||
| Gross Profit | ||
| YoY Change | ||
| Gross Profit Margin | ||
| Selling, General & Admin | $3.860M | $460.0K |
| YoY Change | 739.13% | -54.46% |
| % of Gross Profit | ||
| Research & Development | $2.353M | $731.9K |
| YoY Change | 221.46% | 330.53% |
| % of Gross Profit | ||
| Depreciation & Amortization | $10.00K | $0.00 |
| YoY Change | -100.0% | |
| % of Gross Profit | ||
| Operating Expenses | $2.353M | $731.9K |
| YoY Change | 221.46% | -46.58% |
| Operating Profit | -$6.223M | -$1.193M |
| YoY Change | 421.78% | |
| Interest Expense | $21.00 | $50.81K |
| YoY Change | -99.96% | -184.68% |
| % of Operating Profit | ||
| Other Income/Expense, Net | ||
| YoY Change | ||
| Pretax Income | -$6.220M | -$1.240M |
| YoY Change | 401.61% | -10.14% |
| Income Tax | ||
| % Of Pretax Income | ||
| Net Earnings | -$6.223M | -$1.243M |
| YoY Change | 400.46% | -9.89% |
| Net Earnings / Revenue | ||
| Basic Earnings Per Share | ||
| Diluted Earnings Per Share | -$9.284M | -$8.267M |
| COMMON SHARES | ||
| Basic Shares Outstanding | 18.61M | |
| Diluted Shares Outstanding |
Balance Sheet
| Concept | 2016 Q1 | 2015 Q1 |
|---|---|---|
| SHORT-TERM ASSETS | ||
| Cash & Short-Term Investments | $5.870M | $19.21M |
| YoY Change | -69.44% | 8631.82% |
| Cash & Equivalents | $5.866M | $3.896M |
| Short-Term Investments | ||
| Other Short-Term Assets | $390.0K | $1.790M |
| YoY Change | -78.21% | -27.24% |
| Inventory | ||
| Prepaid Expenses | ||
| Receivables | ||
| Other Receivables | ||
| Total Short-Term Assets | $6.251M | $21.00M |
| YoY Change | -70.23% | 683.58% |
| LONG-TERM ASSETS | ||
| Property, Plant & Equipment | $103.7K | $120.0K |
| YoY Change | -13.61% | 50.0% |
| Goodwill | $7.105M | |
| YoY Change | ||
| Intangibles | ||
| YoY Change | ||
| Long-Term Investments | ||
| YoY Change | ||
| Other Assets | $134.3K | |
| YoY Change | ||
| Total Long-Term Assets | $16.66M | $18.62M |
| YoY Change | -10.53% | -21.67% |
| TOTAL ASSETS | ||
| Total Short-Term Assets | $6.251M | $21.00M |
| Total Long-Term Assets | $16.66M | $18.62M |
| Total Assets | $22.91M | $39.62M |
| YoY Change | -42.17% | 49.79% |
| SHORT-TERM LIABILITIES | ||
| YoY Change | ||
| Accounts Payable | $1.120M | $300.0K |
| YoY Change | 273.29% | -81.25% |
| Accrued Expenses | $1.090M | $1.790M |
| YoY Change | -39.11% | -45.76% |
| Deferred Revenue | ||
| YoY Change | ||
| Short-Term Debt | $0.00 | $0.00 |
| YoY Change | ||
| Long-Term Debt Due | $0.00 | |
| YoY Change | ||
| Total Short-Term Liabilities | $2.208M | $2.090M |
| YoY Change | 5.63% | -80.45% |
| LONG-TERM LIABILITIES | ||
| Long-Term Debt | $550.0K | $0.00 |
| YoY Change | ||
| Other Long-Term Liabilities | $37.77K | |
| YoY Change | ||
| Total Long-Term Liabilities | $37.77K | $0.00 |
| YoY Change | ||
| TOTAL LIABILITIES | ||
| Total Short-Term Liabilities | $2.208M | $2.090M |
| Total Long-Term Liabilities | $37.77K | $0.00 |
| Total Liabilities | $6.332M | $4.370M |
| YoY Change | 44.9% | -69.29% |
| SHAREHOLDERS EQUITY | ||
| Retained Earnings | -$48.38M | |
| YoY Change | ||
| Common Stock | $64.95M | |
| YoY Change | ||
| Preferred Stock | ||
| YoY Change | ||
| Treasury Stock (at cost) | ||
| YoY Change | ||
| Treasury Stock Shares | ||
| Shareholders Equity | $16.58M | $35.25M |
| YoY Change | ||
| Total Liabilities & Shareholders Equity | $22.91M | $39.62M |
| YoY Change | -42.17% | 49.79% |
Cashflow Statement
| Concept | 2016 Q1 | 2015 Q1 |
|---|---|---|
| OPERATING ACTIVITIES | ||
| Net Income | -$6.223M | -$1.243M |
| YoY Change | 400.46% | -9.89% |
| Depreciation, Depletion And Amortization | $10.00K | $0.00 |
| YoY Change | -100.0% | |
| Cash From Operating Activities | -$4.630M | -$938.8K |
| YoY Change | 393.21% | 118.32% |
| INVESTING ACTIVITIES | ||
| Capital Expenditures | $1.994K | $2.183K |
| YoY Change | -8.66% | |
| Acquisitions | ||
| YoY Change | ||
| Other Investing Activities | $8.500M | $2.500M |
| YoY Change | 240.0% | |
| Cash From Investing Activities | $8.499M | $2.498M |
| YoY Change | 240.24% | |
| FINANCING ACTIVITIES | ||
| Cash Dividend Paid | ||
| YoY Change | ||
| Common Stock Issuance & Retirement, Net | ||
| YoY Change | ||
| Debt Paid & Issued, Net | ||
| YoY Change | ||
| Cash From Financing Activities | $0.00 | |
| YoY Change | ||
| NET CHANGE | ||
| Cash From Operating Activities | -$4.630M | -938.8K |
| Cash From Investing Activities | $8.499M | 2.498M |
| Cash From Financing Activities | $0.00 | |
| Net Change In Cash | $3.868M | 1.559M |
| YoY Change | 148.13% | -5296.8% |
| FREE CASH FLOW | ||
| Cash From Operating Activities | -$4.630M | -$938.8K |
| Capital Expenditures | $1.994K | $2.183K |
| Free Cash Flow | -$4.632M | -$941.0K |
| YoY Change | 392.28% | 118.83% |
Facts In Submission
| Frame | Concept Type | Concept / XBRL Key | Value | Unit |
|---|---|---|---|---|
| CY2016Q1 | dffn |
Accrued Clinical Studies Expenses Current
AccruedClinicalStudiesExpensesCurrent
|
471406 | |
| CY2015Q4 | dffn |
Accrued Clinical Studies Expenses Current
AccruedClinicalStudiesExpensesCurrent
|
184737 | |
| CY2016Q1 | dffn |
Adjustments To Additional Paid In Capital Stock Options Assumed
AdjustmentsToAdditionalPaidInCapitalStockOptionsAssumed
|
1321000 | |
| CY2016Q1 | dffn |
Adjustments To Additional Paid In Capital Stock Warrants Assumed
AdjustmentsToAdditionalPaidInCapitalStockWarrantsAssumed
|
384000 | |
| CY2016Q1 | dffn |
Contractual Obligation Due In Next Rolling Twelve Months
ContractualObligationDueInNextRollingTwelveMonths
|
73300 | |
| CY2016Q1 | dffn |
Contractual Obligation Due In Next Rolling Year Three
ContractualObligationDueInNextRollingYearThree
|
||
| CY2016Q1 | us-gaap |
Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
|
5865611 | |
| CY2015Q4 | us-gaap |
Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
|
1997192 | |
| CY2014Q4 | us-gaap |
Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
|
2336519 | |
| CY2015Q1 | us-gaap |
Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
|
3895558 | |
| CY2016Q1 | us-gaap |
Cash And Cash Equivalents Period Increase Decrease
CashAndCashEquivalentsPeriodIncreaseDecrease
|
3868419 | |
| CY2015Q1 | us-gaap |
Cash And Cash Equivalents Period Increase Decrease
CashAndCashEquivalentsPeriodIncreaseDecrease
|
1559039 | |
| CY2015Q4 | us-gaap |
Common Stock Value
CommonStockValue
|
81187 | |
| CY2016Q1 | us-gaap |
Contractual Obligation
ContractualObligation
|
141500 | |
| CY2016Q1 | us-gaap |
Convertible Debt Current
ConvertibleDebtCurrent
|
||
| CY2015Q4 | us-gaap |
Convertible Debt Current
ConvertibleDebtCurrent
|
424964 | |
| CY2016Q1 | dffn |
Contractual Obligation Due In Next Rolling Year Two
ContractualObligationDueInNextRollingYearTwo
|
68200 | |
| CY2016Q1 | dffn |
Contractual Obligation Rolling Thereafter
ContractualObligationRollingThereafter
|
||
| CY2016Q1 | dffn |
Debt Conversion Converted Instrument Related Accrued Interest
DebtConversionConvertedInstrumentRelatedAccruedInterest
|
16495 | |
| CY2016Q1 | dffn |
Depreciation Depletion And Amortization Including Discontinued Operations
DepreciationDepletionAndAmortizationIncludingDiscontinuedOperations
|
7853 | |
| CY2015Q1 | dffn |
Depreciation Depletion And Amortization Including Discontinued Operations
DepreciationDepletionAndAmortizationIncludingDiscontinuedOperations
|
2010 | |
| CY2016Q1 | dffn |
Prepaid Expenses Deposits And Other Assets
PrepaidExpensesDepositsAndOtherAssets
|
385402 | |
| CY2015Q4 | dffn |
Prepaid Expenses Deposits And Other Assets
PrepaidExpensesDepositsAndOtherAssets
|
45921 | |
| CY2016Q1 | dffn |
Proceeds From Reverse Merger Transaction
ProceedsFromReverseMergerTransaction
|
8500602 | |
| CY2015Q1 | dffn |
Proceeds From Reverse Merger Transaction
ProceedsFromReverseMergerTransaction
|
||
| CY2016Q1 | dffn |
Stock Issued During Period Shares Total
StockIssuedDuringPeriodSharesTotal
|
21242580 | |
| CY2016Q1 | us-gaap |
Accounts Payable Current
AccountsPayableCurrent
|
1119857 | |
| CY2015Q4 | us-gaap |
Accounts Payable Current
AccountsPayableCurrent
|
424675 | |
| CY2016Q1 | us-gaap |
Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
|
241524 | |
| CY2015Q4 | us-gaap |
Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
|
327950 | |
| CY2016Q1 | us-gaap |
Accrued Salaries Current
AccruedSalariesCurrent
|
283585 | |
| CY2015Q4 | us-gaap |
Accrued Salaries Current
AccruedSalariesCurrent
|
56947 | |
| CY2016Q1 | us-gaap |
Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
|
222881 | |
| CY2015Q4 | us-gaap |
Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
|
215028 | |
| CY2016Q1 | us-gaap |
Additional Paid In Capital Common Stock
AdditionalPaidInCapitalCommonStock
|
64852032 | |
| CY2015Q4 | us-gaap |
Additional Paid In Capital Common Stock
AdditionalPaidInCapitalCommonStock
|
42029808 | |
| CY2016Q1 | us-gaap |
Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
|
393471 | |
| CY2016Q1 | us-gaap |
Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
|
393471 | |
| CY2015Q1 | us-gaap |
Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
|
95856 | |
| CY2016Q1 | us-gaap |
Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
|
3383 | |
| CY2015Q1 | us-gaap |
Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
|
56349 | |
| CY2016Q1 | us-gaap |
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
|
24988944 | |
| CY2015Q1 | us-gaap |
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
|
68961627 | |
| CY2016Q1 | us-gaap |
Asset Impairment Charges
AssetImpairmentCharges
|
0 | |
| CY2016Q1 | us-gaap |
Assets
Assets
|
22910977 | |
| CY2015Q4 | us-gaap |
Assets
Assets
|
2276596 | |
| CY2016Q1 | us-gaap |
Assets Current
AssetsCurrent
|
6251013 | |
| CY2015Q4 | us-gaap |
Assets Current
AssetsCurrent
|
2043113 | |
| CY2016Q1 | us-gaap |
Class Of Warrant Or Right Number Of Securities Called By Warrants Or Rights
ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights
|
4781574 | |
| CY2016Q1 | us-gaap |
Commitments And Contingencies
CommitmentsAndContingencies
|
||
| CY2015Q4 | us-gaap |
Commitments And Contingencies
CommitmentsAndContingencies
|
||
| CY2016Q1 | us-gaap |
Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
|
0.001 | |
| CY2015Q4 | us-gaap |
Convertible Debt Noncurrent
ConvertibleDebtNoncurrent
|
818646 | |
| CY2016Q1 | us-gaap |
Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
|
0.001 | |
| CY2015Q4 | us-gaap |
Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
|
0.001 | |
| CY2016Q1 | us-gaap |
Common Stock Shares Authorized
CommonStockSharesAuthorized
|
1000000000 | |
| CY2015Q4 | us-gaap |
Common Stock Shares Authorized
CommonStockSharesAuthorized
|
1000000000 | |
| CY2016Q1 | us-gaap |
Convertible Debt Noncurrent
ConvertibleDebtNoncurrent
|
550000 | |
| CY2016Q1 | us-gaap |
Convertible Long Term Notes Payable
ConvertibleLongTermNotesPayable
|
550000 | |
| CY2016Q1 | us-gaap |
Debt Conversion Converted Instrument Amount1
DebtConversionConvertedInstrumentAmount1
|
711495 | |
| CY2015Q1 | us-gaap |
Debt Conversion Converted Instrument Amount1
DebtConversionConvertedInstrumentAmount1
|
0 | |
| CY2016Q1 | us-gaap |
Debt Conversion Original Debt Amount1
DebtConversionOriginalDebtAmount1
|
695000 | |
| CY2015Q1 | us-gaap |
Debt Instrument Convertible Carrying Amount Of The Equity Component
DebtInstrumentConvertibleCarryingAmountOfTheEquityComponent
|
0 | |
| CY2016Q1 | us-gaap |
Common Stock Shares Issued
CommonStockSharesIssued
|
102429200 | |
| CY2015Q4 | us-gaap |
Common Stock Shares Issued
CommonStockSharesIssued
|
81186620 | |
| CY2016Q1 | us-gaap |
Common Stock Shares Outstanding
CommonStockSharesOutstanding
|
102429200 | |
| CY2015Q4 | us-gaap |
Common Stock Shares Outstanding
CommonStockSharesOutstanding
|
81186620 | |
| CY2016Q1 | us-gaap |
Common Stock Value
CommonStockValue
|
102429 | |
| CY2016Q1 | us-gaap |
Deferred Tax Liabilities Noncurrent
DeferredTaxLiabilitiesNoncurrent
|
3536933 | |
| CY2015Q4 | us-gaap |
Deferred Tax Liabilities Noncurrent
DeferredTaxLiabilitiesNoncurrent
|
||
| CY2016Q1 | us-gaap |
Depreciation Nonproduction
DepreciationNonproduction
|
7853 | |
| CY2015Q1 | us-gaap |
Depreciation Nonproduction
DepreciationNonproduction
|
2010 | |
| CY2016Q1 | us-gaap |
Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
|
-0.06 | |
| CY2015Q1 | us-gaap |
Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
|
-0.06 | |
| CY2016Q1 | us-gaap |
Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
|
0 | |
| CY2016Q1 | us-gaap |
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized
|
2104971 | |
| CY2016Q1 | us-gaap |
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1
|
P1Y292D | |
| CY2016Q1 | us-gaap |
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions
|
2104971 | |
| CY2016Q1 | us-gaap |
Fair Value Of Assets Acquired
FairValueOfAssetsAcquired
|
21261000 | |
| CY2015Q1 | us-gaap |
Fair Value Of Assets Acquired
FairValueOfAssetsAcquired
|
0 | |
| CY2016Q1 | us-gaap |
Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
|
9317000 | |
| CY2015Q4 | us-gaap |
Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
|
||
| CY2016Q1 | us-gaap |
General And Administrative Expense
GeneralAndAdministrativeExpense
|
3862484 | |
| CY2015Q1 | us-gaap |
General And Administrative Expense
GeneralAndAdministrativeExpense
|
458757 | |
| CY2016Q1 | us-gaap |
Goodwill
Goodwill
|
7105031 | |
| CY2015Q4 | us-gaap |
Goodwill
Goodwill
|
||
| CY2016Q1 | us-gaap |
Goodwill Impairment Loss
GoodwillImpairmentLoss
|
0 | |
| CY2016Q1 | us-gaap |
Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
|
797827 | |
| CY2015Q1 | us-gaap |
Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
|
135371 | |
| CY2016Q1 | us-gaap |
Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
|
97058 | |
| CY2015Q1 | us-gaap |
Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
|
-15121 | |
| CY2016Q1 | us-gaap |
Interest Expense
InterestExpense
|
21 | |
| CY2015Q1 | us-gaap |
Interest Expense
InterestExpense
|
50810 | |
| CY2016Q1 | us-gaap |
Interest Payable Current
InterestPayableCurrent
|
0 | |
| CY2015Q4 | us-gaap |
Interest Payable Current
InterestPayableCurrent
|
14009 | |
| CY2016Q1 | us-gaap |
Issuance Of Stock And Warrants For Services Or Claims
IssuanceOfStockAndWarrantsForServicesOrClaims
|
487500 | |
| CY2015Q1 | us-gaap |
Issuance Of Stock And Warrants For Services Or Claims
IssuanceOfStockAndWarrantsForServicesOrClaims
|
||
| CY2016Q1 | us-gaap |
Liabilities
Liabilities
|
6332299 | |
| CY2015Q4 | us-gaap |
Liabilities
Liabilities
|
2318219 | |
| CY2016Q1 | us-gaap |
Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
|
22910977 | |
| CY2015Q4 | us-gaap |
Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
|
2276596 | |
| CY2016Q1 | us-gaap |
Liabilities Current
LiabilitiesCurrent
|
2207595 | |
| CY2015Q4 | us-gaap |
Liabilities Current
LiabilitiesCurrent
|
1471308 | |
| CY2016Q1 | us-gaap |
Nature Of Operations
NatureOfOperations
|
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><div style="display: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><div style="display: inline; font-weight: bold;">1. Organization and Description of Business</div></div></div> <div style=" MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><div style="display: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"> </div><div style="display: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"> </div></div> <div style=" TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"><div style="display: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Diffusion Pharmaceuticals Inc. (“Diffusion” or the “Company”), a Delaware Corporation, is a clinical stage biotechnology company focused on extending the life expectancy of cancer patients by improving the effectiveness of current standard-of-care treatments, including radiation therapy and chemotherapy. The Company’s lead product candidate, trans sodium crocetinate (“TSC”), uses a novel mechanism to re-oxygenate the microenvironment of solid cancerous tumors, thereby enhancing tumor cells’ response to conventional treatment without additional side effects. TSC has received orphan drug designations for the treatment of glioblastoma multiforme (“GBM”) and metastatic brain cancer, and the Company expects to enter a Phase III study in newly diagnosed GBM patients in the next twelve months, assuming the availability of financial resources.</div></div> <div style=" MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><div style="display: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"> </div></div> <div style=" TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"><div style="display: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">On January 8, 2016, the Company completed a merger (the “Merger”) of a wholly-owned subsidiary with Diffusion Pharmaceuticals LLC (“Diffusion LLC”) pursuant to an Agreement and Plan of Merger, dated December 15, 2015, by and among the Company, Arco Merger Sub LLC and Diffusion LLC (the “Merger Agreement”) and, as a result, Diffusion LLC became a wholly-owned subsidiary of the Company. </div></div> <div style=" MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><div style="display: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"> </div><div style="display: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"> </div></div> <div style=" TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"><div style="display: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">At the effective time of the Merger, each outstanding unit of membership interest of Diffusion LLC (“Diffusion Units”) was converted into the right to receive 3.652658 shares of the Company’s common stock, as determined pursuant to the Merger Agreement (“Exchange Ratio”). Also at the effective time of the Merger, $1,125,000 of Diffusion LLC convertible notes were outstanding and </div><div style="display: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">the rights of the holders of each outstanding convertible promissory note convertible into Diffusion Units (“Diffusion Convertible Notes”) was converted into the right to convert such securities into a number of shares of the Company’s common stock equal to the number of Diffusion Units such Diffusion Convertible Note would be convertible into pursuant to its terms multiplied by the Exchange Ratio. In addition, at the effective time of the Merger and as a result of the Merger, all outstanding options to purchase Diffusion Units were converted into and became options to purchase the Company’s common stock on terms substantially identical to those in effect prior to the effective time of the Merger, except for adjustments to the underlying number of shares and the exercise price based on the Exchange Ratio. Through December 2015, the Company issued options to purchase Diffusion Units which converted into options to purchase an aggregate of 14,952,101 shares of the Company’s common stock with a weighted average exercise price of $0.40 per share. No fractional shares of the Company’s common stock were issued in connection with the Merger, and holders of Diffusion Units received cash in lieu thereof.</div></div> <div style=" MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><div style="display: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"> </div><div style="display: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"> </div></div> <div style=" TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"><div style="display: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The merger transaction was accounted for as a reverse acquisition under the acquisition method of accounting. Because Diffusion LLC’s pre-transaction owners held an 84.1% economic and voting interest in the combined company immediately following the closing of the merger, Diffusion LLC is considered to be the acquirer of the Company for accounting purposes. Accordingly, </div><div style="display: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">the historical financial statements of Diffusion LLC became the Company’s historical financial statements including the comparative prior periods. All references in the unaudited condensed consolidated financial statements to the number of shares and per-share amounts of common stock have been retroactively restated to reflect the Exchange Ratio.</div></div> <div style=" MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><div style="display: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"> </div></div> <div style=" TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"><div style="display: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In connection with the Merger, the Company issued 18,614,968 shares of its common stock to its former shareholders, or approximately 15.9% of the common stock of the combined company, in each case, on a fully-diluted basis (subject to certain exceptions and adjustments).</div></div></div> | |
| CY2016Q1 | us-gaap |
Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
|
8498608 | |
| CY2015Q1 | us-gaap |
Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
|
2497817 | |
| CY2016Q1 | us-gaap |
Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
|
-4630189 | |
| CY2015Q1 | us-gaap |
Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
|
-938778 | |
| CY2016Q1 | us-gaap |
Net Income Loss
NetIncomeLoss
|
-6223165 | |
| CY2015Q1 | us-gaap |
Net Income Loss
NetIncomeLoss
|
-1243485 | |
| CY2016Q1 | us-gaap |
Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
|
-6223165 | |
| CY2015Q1 | us-gaap |
Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
|
-1243485 | |
| CY2016Q1 | us-gaap |
Number Of Reporting Units
NumberOfReportingUnits
|
1 | |
| CY2016Q1 | us-gaap |
Operating Income Loss
OperatingIncomeLoss
|
-6223144 | |
| CY2015Q1 | us-gaap |
Operating Income Loss
OperatingIncomeLoss
|
-1192675 | |
| CY2016Q1 | us-gaap |
Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
|
1087738 | |
| CY2015Q4 | us-gaap |
Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
|
621669 | |
| CY2016Q1 | us-gaap |
Other Assets Noncurrent
OtherAssetsNoncurrent
|
134265 | |
| CY2015Q4 | us-gaap |
Other Assets Noncurrent
OtherAssetsNoncurrent
|
181487 | |
| CY2016Q1 | us-gaap |
Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
|
37771 | |
| CY2015Q4 | us-gaap |
Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
|
28265 | |
| CY2016Q1 | us-gaap |
Other Sundry Liabilities Current
OtherSundryLiabilitiesCurrent
|
91223 | |
| CY2015Q4 | us-gaap |
Other Sundry Liabilities Current
OtherSundryLiabilitiesCurrent
|
38026 | |
| CY2016Q1 | us-gaap |
Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
|
1994 | |
| CY2015Q1 | us-gaap |
Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
|
2183 | |
| CY2016Q1 | us-gaap |
Proceeds From Sale And Maturity Of Marketable Securities
ProceedsFromSaleAndMaturityOfMarketableSecurities
|
||
| CY2015Q1 | us-gaap |
Proceeds From Sale And Maturity Of Marketable Securities
ProceedsFromSaleAndMaturityOfMarketableSecurities
|
2500000 | |
| CY2016Q1 | us-gaap |
Property Plant And Equipment Disposals
PropertyPlantAndEquipmentDisposals
|
0 | |
| CY2016Q1 | us-gaap |
Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
|
103668 | |
| CY2015Q4 | us-gaap |
Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
|
51996 | |
| CY2016Q1 | us-gaap |
Research And Development Expense
ResearchAndDevelopmentExpense
|
2352807 | |
| CY2015Q1 | us-gaap |
Research And Development Expense
ResearchAndDevelopmentExpense
|
731908 | |
| CY2016Q1 | us-gaap |
Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
|
-48375783 | |
| CY2015Q4 | us-gaap |
Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
|
-42152618 | |
| CY2016Q1 | us-gaap |
Share Based Compensation
ShareBasedCompensation
|
393471 | |
| CY2015Q1 | us-gaap |
Share Based Compensation
ShareBasedCompensation
|
95856 | |
| CY2016Q1 | us-gaap |
Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
|
3011498 | |
| CY2016Q1 | us-gaap |
Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
|
12306562 | |
| CY2016Q1 | us-gaap |
Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
|
4.02 | |
| CY2016Q1 | us-gaap |
Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
|
1.23 | |
| CY2016Q1 | us-gaap |
Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
|
3652 | |
| CY2016Q1 | us-gaap |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
|
17963599 | |
| CY2015Q4 | us-gaap |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
|
14955753 | |
| CY2015Q4 | us-gaap |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
|
0.39 | |
| CY2016Q1 | us-gaap |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
|
1 | |
| CY2016Q1 | us-gaap |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber
|
17929054 | |
| CY2016Q1 | us-gaap |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice
|
1 | |
| CY2016Q1 | us-gaap |
Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
|
1.36 | |
| CY2016Q1 | us-gaap |
Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
|
P7Y36D | |
| CY2016Q1 | us-gaap |
Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
|
P7Y292D | |
| CY2016Q1 | us-gaap |
Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1
|
P7Y292D | |
| CY2016Q1 | us-gaap |
Stockholders Equity
StockholdersEquity
|
16578678 | |
| CY2015Q4 | us-gaap |
Stockholders Equity
StockholdersEquity
|
-41623 | |
| CY2015Q4 | us-gaap |
Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
|
-41623 | |
| CY2016Q1 | us-gaap |
Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
|
16578678 | |
| CY2016Q1 | us-gaap |
Stock Issued During Period Shares Acquisitions
StockIssuedDuringPeriodSharesAcquisitions
|
18614968 | |
| CY2016Q1 | us-gaap |
Stock Issued During Period Shares Conversion Of Convertible Securities
StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities
|
2171185 | |
| CY2016Q1 | us-gaap |
Stock Issued During Period Shares Issued For Services
StockIssuedDuringPeriodSharesIssuedForServices
|
456427 | |
| CY2016Q1 | us-gaap |
Stock Issued During Period Value Acquisitions
StockIssuedDuringPeriodValueAcquisitions
|
19546000 | |
| CY2016Q1 | us-gaap |
Stock Issued During Period Value Conversion Of Convertible Securities
StockIssuedDuringPeriodValueConversionOfConvertibleSecurities
|
711495 | |
| CY2016Q1 | us-gaap |
Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
|
487500 | |
| CY2016Q1 | us-gaap |
Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
|
99959157 | |
| CY2015Q1 | us-gaap |
Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
|
22087431 |
