Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.19.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Cash Flows From Operating Activities    
Net loss $ (3,765,047) $ (1,856,315)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 8,445 1,865
Amortization of debt issuance costs 67,069 23,370
Amortization of intangible asset 621,647
Impairment of software costs 15,330
Deferred income tax benefit (1,232,557) (166,787)
Stock-based compensation 74,063
Net changes in operating assets and liabilities:    
Prepaid expenses (216,386) (23,299)
Vendor deposit 227,657
Accrued interest 94,122 35,693
Accounts payable 241,416 9,995
Due to related parties 40,690 (62,368)
Accrued rent liability 13,284
Accrued liabilities 28,868 (39,829)
Net cash used in operating activities (3,707,914) (1,654,617)
Cash Flows From Investing Activities    
Proceeds from the redemption of certificates of deposit 1,019,294
Purchase of property and equipment (20,622)
Purchase of intangible asset (20,500)
Acquisition costs related to the CoNCERT intangible asset (1,782)
Cash received in a reverse acquisition transaction 6,280
Net cash provided by (used in) investing activities (22,282) 1,004,952
Cash Flows From Financing Activities    
Proceeds from issuance of common stock, net of issuance costs of $308,830 2,874,687
Proceeds from issuance of senior convertible notes 2,580,000
Costs related to the Clinical Trial Funding Commitment (168,457)
Costs related to the conversion of the Senior Notes and in 2017, payment of debt issuance costs (82,502) (154,800)
Net cash provided by financing activities 2,623,728 2,425,200
Net Increase in Cash (1,106,468) 1,775,535
Cash and Cash Equivalents – Beginning of Year 2,847,429 1,071,894
Cash and Cash Equivalents – End of Year 1,740,961 2,847,429
Supplemental Cash Flow Information:    
Cash paid for interest
Cash Paid for income taxes
Non-Cash Investing and Financing Activities:    
Recognize the exclusive license intangible asset acquired from CoNCERT (11,037,147)
Recognize deferred tax liability for basis difference of Intangible asset 3,037,147
Recognize additional paid-in-capital for consideration paid from the transfer of 2,090,301 common shares of Processa released by Promet to CoNCERT for Processa 8,000,000
Cash paid for intangible license asset acquired from CoNCERT
Conversion of $2,350,000 of Senior Convertible Debt and related accrued interest of $109,472 into 1,206,245 shares of common stock and stock purchase warrants 2,395,111
Common stock and stock purchase warrants issued in connection with a clinical trial funding commitment 1,800,000
Assumption of liabilities related to the reverse merger transaction 44,030
Less: issuance of common stock related to the reverse merger transaction (37,750)
Cash received related to the net liabilities assumed in the reverse merger transaction $ 6,280