2018 Q3 Form 10-Q Financial Statement

#000161883518000061 Filed on August 02, 2018

View on sec.gov

Income Statement

Concept 2018 Q3 2018 Q2 2017 Q2
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $8.580M $11.41M $1.270M
YoY Change 545.11% 798.43% 29.59%
% of Gross Profit
Research & Development $9.851M $11.83M $4.078M
YoY Change 57.29% 190.17% 185.54%
% of Gross Profit
Depreciation & Amortization $70.00K $60.00K $10.00K
YoY Change 600.0% 500.0% -50.0%
% of Gross Profit
Operating Expenses $18.43M $23.24M $6.358M
YoY Change 103.23% 265.56% 152.32%
Operating Profit -$18.43M -$23.24M -$6.358M
YoY Change 103.23% 265.56% 152.32%
Interest Expense $40.00K $30.00K $10.00K
YoY Change 300.0% 200.0% -104.0%
% of Operating Profit
Other Income/Expense, Net $2.000K $0.00 $154.0K
YoY Change -100.0% -100.0%
Pretax Income -$18.43M -$23.24M -$6.512M
YoY Change -75.1% 256.91% 144.81%
Income Tax $0.00 $2.000K $0.00
% Of Pretax Income
Net Earnings -$18.43M -$23.24M -$6.512M
YoY Change -75.1% 256.94% 145.04%
Net Earnings / Revenue
Basic Earnings Per Share
Diluted Earnings Per Share -$714.9K -$1.114M -$1.216M
COMMON SHARES
Basic Shares Outstanding 25.80M shares 17.76M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2018 Q3 2018 Q2 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $12.10M $22.80M $7.600M
YoY Change 108.62% 200.0% -64.65%
Cash & Equivalents $12.08M $22.79M $1.027M
Short-Term Investments
Other Short-Term Assets $1.000M $1.300M $500.0K
YoY Change 150.0% 160.0% -37.5%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $13.42M $24.48M $8.100M
YoY Change 120.07% 202.16% -63.51%
LONG-TERM ASSETS
Property, Plant & Equipment $652.0K $717.0K $0.00
YoY Change -100.0%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $950.0K $977.0K $100.0K
YoY Change 850.0% 877.0% -50.0%
Total Long-Term Assets $1.602M $1.694M $100.0K
YoY Change 1502.0% 1594.0% -75.0%
TOTAL ASSETS
Total Short-Term Assets $13.42M $24.48M $8.100M
Total Long-Term Assets $1.602M $1.694M $100.0K
Total Assets $15.03M $26.17M $8.200M
YoY Change 142.35% 219.13% -63.72%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $8.034M $7.998M $500.0K
YoY Change 1908.5% 1499.6% -54.55%
Accrued Expenses $14.45M $11.10M $1.200M
YoY Change 1344.7% 825.33% -20.0%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $25.04M $20.84M $1.700M
YoY Change 1688.71% 1125.88% -54.45%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Other Long-Term Liabilities $0.00 $0.00
YoY Change
Total Long-Term Liabilities $0.00 $0.00 $0.00
YoY Change -100.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $25.04M $20.84M $1.700M
Total Long-Term Liabilities $0.00 $0.00 $0.00
Total Liabilities $25.09M $20.91M $1.700M
YoY Change 1692.21% 1130.06% -74.01%
SHAREHOLDERS EQUITY
Retained Earnings -$418.2M -$399.7M -$131.7M
YoY Change 203.54% 8.36%
Common Stock $408.1M $405.0M $138.2M
YoY Change 193.07% 0.46%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$10.07M $5.258M $6.513M
YoY Change
Total Liabilities & Shareholders Equity $15.03M $26.17M $8.214M
YoY Change 142.35% 218.61% -63.63%

Cashflow Statement

Concept 2018 Q3 2018 Q2 2017 Q2
OPERATING ACTIVITIES
Net Income -$18.43M -$23.24M -$6.512M
YoY Change -75.1% 256.94% 145.04%
Depreciation, Depletion And Amortization $70.00K $60.00K $10.00K
YoY Change 600.0% 500.0% -50.0%
Cash From Operating Activities -$8.920M -$19.19M -$2.160M
YoY Change 384.78% 788.43% -17.87%
INVESTING ACTIVITIES
Capital Expenditures $0.00
YoY Change
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00 $0.00
YoY Change
Cash From Investing Activities $0.00 $0.00 $0.00
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.900M 36.93M 0.000
YoY Change -100.0%
NET CHANGE
Cash From Operating Activities -8.920M -19.19M -2.160M
Cash From Investing Activities 0.000 0.000 0.000
Cash From Financing Activities -1.900M 36.93M 0.000
Net Change In Cash -10.82M 17.74M -2.160M
YoY Change 488.04% -921.3% -17.24%
FREE CASH FLOW
Cash From Operating Activities -$8.920M -$19.19M -$2.160M
Capital Expenditures $0.00
Free Cash Flow -$8.920M
YoY Change

Facts In Submission

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CY2017Q2 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-7409000 USD
us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-13566000 USD
CY2018Q2 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-23244000 USD
CY2018Q2 us-gaap Operating Leases Future Minimum Payments Due
OperatingLeasesFutureMinimumPaymentsDue
1352000 USD
CY2018Q2 us-gaap Operating Leases Future Minimum Payments Due Current
OperatingLeasesFutureMinimumPaymentsDueCurrent
374000 USD
CY2018Q2 us-gaap Operating Leases Future Minimum Payments Due Future Minimum Sublease Rentals
OperatingLeasesFutureMinimumPaymentsDueFutureMinimumSubleaseRentals
270000 USD
CY2018Q2 us-gaap Operating Leases Future Minimum Payments Due In Three Years
OperatingLeasesFutureMinimumPaymentsDueInThreeYears
201000 USD
us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-92366000 USD
us-gaap Noncash Or Part Noncash Acquisition Value Of Assets Acquired1
NoncashOrPartNoncashAcquisitionValueOfAssetsAcquired1
0 USD
us-gaap Noncash Or Part Noncash Acquisition Value Of Assets Acquired1
NoncashOrPartNoncashAcquisitionValueOfAssetsAcquired1
46000 USD
CY2017Q2 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-154000 USD
us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-507000 USD
CY2018Q2 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
0 USD
us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-48070000 USD
us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 Segment
CY2017Q2 us-gaap Operating Expenses
OperatingExpenses
6358000 USD
us-gaap Operating Expenses
OperatingExpenses
11271000 USD
CY2018Q2 us-gaap Operating Expenses
OperatingExpenses
23242000 USD
us-gaap Operating Expenses
OperatingExpenses
44228000 USD
CY2017Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
-6358000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
-11271000 USD
CY2018Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
-23242000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
-44228000 USD
CY2018Q2 us-gaap Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
777000 USD
CY2017Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
188000 USD
CY2018Q2 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
295000 USD
CY2017Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
750000 USD
CY2018Q2 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
977000 USD
CY2017Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
166000 USD
CY2018Q2 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
0 USD
CY2017Q2 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
64000 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
30000 USD
CY2018Q2 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-32000 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-82000 USD
us-gaap Payments Of Dividends
PaymentsOfDividends
200000 USD
us-gaap Payments Of Dividends Preferred Stock And Preference Stock
PaymentsOfDividendsPreferredStockAndPreferenceStock
0 USD
us-gaap Payments Of Dividends Preferred Stock And Preference Stock
PaymentsOfDividendsPreferredStockAndPreferenceStock
157000 USD
CY2018Q2 us-gaap Payments Of Stock Issuance Costs
PaymentsOfStockIssuanceCosts
1400000 USD
us-gaap Payments Of Stock Issuance Costs
PaymentsOfStockIssuanceCosts
648000 USD
us-gaap Payments Of Stock Issuance Costs
PaymentsOfStockIssuanceCosts
611000 USD
CY2017Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
653000 USD
CY2018Q2 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
1133000 USD
us-gaap Proceeds From Divestiture Of Businesses Net Of Cash Divested
ProceedsFromDivestitureOfBusinessesNetOfCashDivested
250000 USD
us-gaap Proceeds From Divestiture Of Businesses Net Of Cash Divested
ProceedsFromDivestitureOfBusinessesNetOfCashDivested
250000 USD
us-gaap Proceeds From Issuance Of Redeemable Convertible Preferred Stock
ProceedsFromIssuanceOfRedeemableConvertiblePreferredStock
0 USD
us-gaap Proceeds From Issuance Of Redeemable Convertible Preferred Stock
ProceedsFromIssuanceOfRedeemableConvertiblePreferredStock
20000000 USD
CY2016Q3 us-gaap Proceeds From Sales Of Business Affiliate And Productive Assets
ProceedsFromSalesOfBusinessAffiliateAndProductiveAssets
600000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
0 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
42000 USD
CY2017Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
1190000 USD
CY2018Q2 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
1190000 USD
CY2017Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
848000 USD
CY2018Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
717000 USD
CY2017Q2 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
4078000 USD
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
6060000 USD
CY2018Q2 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
11833000 USD
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
23792000 USD
CY2017Q4 us-gaap Restricted Cash Current
RestrictedCashCurrent
490000 USD
CY2018Q2 us-gaap Restricted Cash Current
RestrictedCashCurrent
554000 USD
CY2017Q2 us-gaap Restricted Cash Noncurrent
RestrictedCashNoncurrent
520000 USD
CY2018Q2 us-gaap Restricted Cash Noncurrent
RestrictedCashNoncurrent
554000 USD
CY2017Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-307277000 USD
CY2018Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-399734000 USD
CY2018Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-399700000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
431000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
11351000 USD
CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.000
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.000
CY2018Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.000
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.000
CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.906
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.909
CY2018Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.868
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.859
CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.019
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.022
CY2018Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.028
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.028
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Maximum Employee Subscription Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardMaximumEmployeeSubscriptionRate
0.15
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Authorized
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized
28333 shares
CY2014Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Authorized
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized
749305 shares
CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Authorized
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized
5300000 shares
CY2018Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant
1833192 shares
CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
3136030 shares
CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
1283 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
7928 shares
CY2018Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
134375 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
3270405 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Plan Modification Incremental Compensation Cost
ShareBasedCompensationArrangementByShareBasedPaymentAwardPlanModificationIncrementalCompensationCost
200000 USD
CY2017Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P5Y8M12D
CY2018Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P5Y9M18D
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P5Y4M24D
us-gaap Stock Issued During Period Shares Employee Stock Purchase Plans
StockIssuedDuringPeriodSharesEmployeeStockPurchasePlans
0 shares
us-gaap Stock Issued During Period Shares Employee Stock Purchase Plans
StockIssuedDuringPeriodSharesEmployeeStockPurchasePlans
0 shares
us-gaap Stock Issued During Period Value Conversion Of Convertible Securities Net Of Adjustments
StockIssuedDuringPeriodValueConversionOfConvertibleSecuritiesNetOfAdjustments
121315000 USD
us-gaap Stock Issued During Period Value Stock Dividend
StockIssuedDuringPeriodValueStockDividend
5226000 USD
us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
42000 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
-289546000 USD
CY2018Q2 us-gaap Stockholders Equity
StockholdersEquity
5258000 USD
us-gaap Stockholders Equity Change In Reporting Entity
StockholdersEquityChangeInReportingEntity
1946000 USD
CY2018Q1 us-gaap Stockholders Equity Note Stock Split Conversion Ratio1
StockholdersEquityNoteStockSplitConversionRatio1
166.7000
us-gaap Temporary Equity Accretion Of Dividends
TemporaryEquityAccretionOfDividends
223000 USD
CY2017Q2 us-gaap Temporary Equity Dividends Adjustment
TemporaryEquityDividendsAdjustment
897000 USD
us-gaap Temporary Equity Dividends Adjustment
TemporaryEquityDividendsAdjustment
1785000 USD
CY2018Q2 us-gaap Temporary Equity Dividends Adjustment
TemporaryEquityDividendsAdjustment
0 USD
us-gaap Temporary Equity Dividends Adjustment
TemporaryEquityDividendsAdjustment
66000 USD
CY2018Q1 us-gaap Warrants Not Settleable In Cash Fair Value Disclosure
WarrantsNotSettleableInCashFairValueDisclosure
14100000 USD
CY2017Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
1959904 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
1959904 shares
CY2018Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
20868554 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
17937788 shares
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;">Concentrations of Credit Risk</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%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents and restricted cash. Deposits in the Company&#8217;s checking and time deposit accounts are maintained in federally insured financial institutions in excess of federally insured limits. The Company invests in funds through a major U.S. bank and is exposed to credit risk in the event of default to the extent of amounts recorded on the consolidated balance sheets.</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;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> The Company has not experienced any losses in such accounts and believes it is not exposed to significant concentrations of credit risk on its cash, cash equivalents and restricted cash balances due to the financial position of the depository institutions in which these deposits are held.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Use of Estimates</font></div><div style="line-height:120%;padding-top:8px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the notes thereto.</font></div><div style="line-height:120%;padding-top:16px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On an ongoing basis, Management evaluates its estimates related to, but not limited to, the useful lives of property and equipment, the recoverability of long-lived assets, preclinical and clinical trial accruals, the measurement of the Series D 2X liquidation preference, assumptions used in estimating the fair value of warrants issued in connection with the Merger and common warrants in connection with a public offering closed on May 24, 2018 as more described in </font><a style="font-family:inherit;font-size:10pt;" href="#s574c78917a9f4037be8bf6ead3995b2d"><font style="font-family:inherit;font-size:10pt;">Note 9- Public Offering,</font></a><font style="font-family:inherit;font-size:10pt;"> assumptions used in estimating the fair value of stock-based compensation expense and other contingencies. The Company&#8217;s assumptions regarding the measurement of the Series D 2X liquidation preference and stock-based compensation are more fully described in </font><a style="font-family:inherit;font-size:10pt;" href="#sDB2A04362F4A599BAF8E1D4273338A02"><font style="font-family:inherit;font-size:10pt;">Note 5 &#8212; Fair Value of Financial Instruments</font></a><font style="font-family:inherit;font-size:10pt;"> and </font><a style="font-family:inherit;font-size:10pt;" href="#s2CC17CDC9FA15B54AFDD4C9547EEE966"><font style="font-family:inherit;font-size:10pt;">Note 11 &#8212; Stock-based Compensation, </font></a><font style="font-family:inherit;font-size:10pt;">respectively. The Company bases its estimates on historical experience and other market-specific or other relevant assumptions that it believes to be reasonable under the circumstances and adjusts when facts and circumstances dictate. The estimates are the basis for making judgments about the carrying values of assets and liabilities and recorded expenses that are not readily apparent from other sources. As future events and their effects cannot be determined with precision, actual results may materially differ from those estimates or assumptions.</font></div></div>

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