Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.19.3.a.u2
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Cash Flows From Operating Activities    
Net Loss $ (3,357,876) $ (3,765,047)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 8,445 8,445
Non-cash lease expense for right-of-use assets 74,124
Amortization of debt issuance costs 1,783 67,069
Amortization of intangible asset 795,328 621,647
Deferred income tax (benefit) expense (602,716) (902,801)
Stock-based compensation 510,478 74,063
Net changes in operating assets and liabilities:    
Prepaid expenses and other (57,773) (216,386)
Operating lease liability (77,779)
Accrued interest 30,489 94,122
Accounts payable (216,490) 241,416
Due from related parties 21,899 40,690
Accrued expenses 119,943 28,868
Net cash (used in) operating activities (2,750,145) (3,707,914)
Cash Flows From Investing Activities    
Purchase of software license (20,500)
Purchase of intangible asset (1,782)
Net cash (used in) investing activities (22,282)
Cash Flows From Financing Activities    
Net proceeds from issuance of stock 2,874,687
Proceeds from issuance of senior convertible notes 805,000
Proceeds received in satisfaction of stock subscription receivable 900,000
Transaction costs incurred on senior convertible notes (4,280) (82,502)
Payment of placement agent and legal fees associated with clinical funding commitment (168,457)
Net cash provided by financing activities 1,700,720 2,623,728
Net (Decrease)/Increase in Cash and Cash Equivalents (1,049,425) (1,106,468)
Cash and Cash Equivalents - Beginning of Year 1,740,961 2,847,429
Cash and Cash Equivalents - End of Year 691,536 1,740,961
Supplemental Cash Flow Information:    
Cash paid for interest
Cash paid for income taxes
Non-Cash Investing and Financing Activities:    
Right-of-use asset obtained in exchange for operating lease liability (293,198)
Reduction in deferred lease liability (9,963)
Operating lease liability 303,161  
Net
Recognize 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 298,615 common shares of Processa released by Promet to CoNCERT for Processa 8,000,000
Cash paid for intangible asset acquired from CoNCERT
Conversion of $230,000 and $2,350,000, respectively, of Senior Convertible Debt and related accrued interest of $28,930 and $114,333, respectively, into 18,107 and 172,327 shares, respectively, of common stock and warrants 258,930 2,464,333
Common stock and stock purchase warrants (forfeited)/issued in connection with a clinical trial funding commitment $ (900,000) $ 1,800,000