REVISION OF PRIOR INTERIM PERIOD FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2014

Accounting Changes and Error Corrections [Abstract]

REVISION OF PRIOR INTERIM PERIOD FINANCIAL STATEMENTS

For the 10-Q filed by the Company for the quarterly period ended September 30, 2014, the Company stated that due to its inability to cause Platinum Montaur to advance funds pursuant to the 2012 Credit Facility (described more fully in Note 7 herein), since draws were made at their discretion in accordance with the Loan Agreement, the Company elected to terminate the CF. Accordingly, on October 28, 2014, the Company notified PM that it was irrevocably canceling and terminating the CF effective as of October 30, 2014. In its third quarter of 2014 the Company fully amortized the remaining $2,823,325 of deferred financing costs related to the CF stating that since they weren’t able to borrow against the CF, they were terminating it shortly and therefore expensing all the related deferred financing costs.

In more closely examining the accounting pronouncements related to the write off of debt issuance costs, specifically ASC 405-20-40, we determined the deferred financing costs should not have been written off until the date the facility was actually extinguished, which occurred in October 2014, or the fourth quarter of 2014.

Below follows the revision necessary to be made to our financial statements for the third quarter of 2014.

	Three Months Ended								Nine Months Ended
	As Previously Recorded			Adjustment		As Revised			As Previously Recorded			Adjustment		As Revised
Licensing revenue	$	19,107		$	−	$	19,107		$	57,321		$	−	$	57,321
Total revenues		19,107			−		19,107			57,321			−		57,321
Operating Expenses:
Research and development		1,200,590			−		1,200,590			4,348,752			−		4,348,752
Selling, general and administrative		1,731,868			−		1,731,868			5,207,103			−		5,207,103
Total operating expenses		2,932,458			−		2,932,458			9,555,855			−		9,555,855
Loss from operations		(2,913,351	)		−		(2,913,351	)		(9,498,534	)		−		(9,498,534	)
Other Income (Expense):
Interest income		181			−		181			915			−		915
Interest expense		(3,064,414	)		2,823,325		(241,089	)		(3,551,482	)		2,823,325		(728,157	)
Gain on disposals of assets		−			−		−			1,500			−		1,500
Gain (loss) on revaluation of derivative warrant liability		473,000			−		473,000			1,006,000			−		1,006,000
Other income (expense), net		(2,591,233	)		2,823,325		232,092			(2,543,067	)		2,823,325		280,258
Net loss	$	(5,504,584	)	$	2,823,325	$	(2,681,259	)	$	(12,041,601	)	$	2,823,325	$	(9,218,276	)
Net loss per common share, basic and diluted	$	(0.43	)	$	0.22	$	(0.21	)	$	(0.99	)	$	0.23	$	(0.76	)
Basic and diluted weighted average common shares outstanding		12,660,182			12,660,182		12,660,182			12,199,476			12,199,476		12,199,476