Quarterly report pursuant to Section 13 or 15(d)

NOTE 2 - GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS

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NOTE 2 - GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS
6 Months Ended
Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Substantial Doubt about Going Concern [Text Block]
NOTE 2 – GOING CONCERN AND MANAGEMENT’S LIQUIDITY PLANS

As of June 30, 2017, the Company had cash of $880,659 and working capital deficit (current liabilities in excess of current assets) of $3,213,349 principally due to the inclusion of non-cash derivative and warrant liabilities recorded in current liabilities. In addition, the Company raised approximately $3,000,000 in six months ended June 30, 2017 through the sale of common stock and warrants and approximately $507,000 subsequent to June 30, 2017 (See Note 12). As of June 30, 2017, excluding the derivative and warrant liabilities, the Company’s working capital deficit would have been $569,002. During the six months ended June 30, 2017, the Company used net cash in operating activities of $3,452,958.  These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management believes that the Company has sufficient funds to meet its research and development and other funding requirements for at least the next 4 months.

The Company’s primary source of operating funds since inception has been cash proceeds from private placements of common and preferred stock. The Company has experienced net losses and negative cash flows from operations since inception and expects these conditions to continue for the foreseeable future. The Company has stockholders’ deficiencies at June 30, 2017 and requires additional financing to fund future operations. Further, the Company does not have any commercial products available for sale and there is no assurance that if approval of their products is received that the Company will be able to generate cash flow to fund operations. In addition, there can be no assurance that the Company’s research and development will be successfully completed or that any product will be approved or commercially viable.

Accordingly, the accompanying financial statements have been prepared in conformity with U.S. GAAP, which contemplates continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The condensed financial statements do not include any adjustment that might result from the outcome of this uncertainty.