Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The accompanying consolidated financial statements of the Company have been prepared in accordance with US GAAP. Any reference in these notes to applicable guidance is meant to refer to US GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”).

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period.

On an ongoing basis, the Company evaluates its estimates using historical experience and other factors, including the current economic environment. Significant items subject to such estimates are assumptions used for purposes of determining stock-based compensation, the fair value of the warrants, the fair value of the convertible notes, and accounting for research and development activities. Management believes its estimates to be reasonable under the circumstances. Actual results could differ significantly from those estimates.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

The carrying amounts of the Company’s financial instruments, including cash equivalents, accounts payable, and accrued expenses approximate fair value due to the short-term nature of those instruments. As of

December

31,

2017,

the fair value of the Company's outstanding Series B convertible note was approximately

$0.6

million. The fair value of the convertible note was determined using a binomial lattice model that utilizes certain unobservable inputs that fall within Level

of the fair value hierarchy. All amounts outstanding under the Series B convertible note were repaid during the year ended

December 31, 2018.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risk

Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash on deposit with multiple financial institutions, the balances of which frequently exceed federally insured limits.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

The Company considers any highly liquid investments, such as money market funds, with an original maturity of

three

months or less to be cash and cash equivalents.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

The Company records property and equipment at cost less accumulated depreciation and amortization. Costs of renewals and improvements that extend the useful lives of the assets are capitalized. Maintenance and repairs are expensed as incurred. Depreciation is recognized on a straight-line basis over the estimated useful lives of the assets, which generally range from

years. The Company amortizes leasehold improvements over the shorter of the estimated useful life of the asset or the term of the related lease. Upon retirement or disposition of assets, the costs and related accumulated depreciation and amortization are removed from the accounts with the resulting gains or losses, if any, reflected in results of operations.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Long-Lived Assets

Long-lived assets are reviewed for potential impairment whenever events indicate that the carrying amount of such assets

may

not

be recoverable. The Company does this by comparing the carrying value of the long-lived assets with the estimated future undiscounted cash flows expected to result from the use of the assets, including cash flows from disposition. If it is determined an impairment exists, the asset is written down to its estimated fair value. The Company has

not

recognized any impairment of long-lived assets during the years ended

December 31, 2018

and

2017.

Goodwill and Intangible Assets, Policy [Policy Text Block]

Goodwill and Intangible Assets

Goodwill and intangible assets deemed to have indefinite lives are

not

amortized but rather are tested at least annually for impairment, or when circumstances indicate that the carrying amount of the asset

may

not

be recoverable. If the carrying value of the reporting unit exceeds fair value, goodwill is considered impaired. In

January 2017,

the FASB issued revised guidance that simplifies the test for goodwill impairment, effective for fiscal years beginning after

December 15, 2019,

with early adoption permitted. The Company early adopted this standard in the

third

quarter of

2018.

Under the revised guidance, if a reporting unit’s carrying value exceeds its fair value, an impairment charge will be recorded to reduce the reporting unit to fair value. The Company has a single reporting unit and all goodwill relates to that reporting unit. The Company's RES-

529

intangible asset and goodwill are assessed for impairment annually on

October 1

of the Company’s fiscal year or more frequently if impairment indicators exist. There was

impairment to the Company’s RES-

529

intangible asset recognized during the years ended

December 31, 2018

and

2017.

During the year ended

December 31, 2018,

the Company recorded a non-cash goodwill impairment charge of

$6.9

million (see Note

Research and Development Expense, Policy [Policy Text Block]

Research and Development

Major components of research and development costs include internal research and development (such as salaries and related employee benefits, equity-based compensation, supplies and allocated facility costs) and contracted services (research and development activities performed on the Company’s behalf). Costs incurred for research and development are expensed as incurred.

At the end of the reporting period, the Company compares payments made to

third

-party service providers to the estimated progress toward completion of the research or development objectives. Such estimates are subject to change as additional information becomes available. Depending on the timing of payments to the service providers and the progress that the Company estimates has been made as a result of the services provided, the Company

may

record net prepaid or accrued expenses relating to these costs.

Upfront payments made to

third

parties who perform research and development services on the Company’s behalf are expensed as services are rendered.

Legal Costs, Policy [Policy Text Block]

Patent Costs

Patent costs, including related legal costs, are expensed as incurred and are recorded within general and administrative expenses in the statements of operations.

Income Tax, Policy [Policy Text Block]

Income Taxes

As a corporation, the Company uses the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided when it is more likely than

not

that some portion or all of a deferred tax asset will

not

be realized. The Company recognizes the benefit of an uncertain tax position that it has taken or expects to take on its income tax return it files, if such a position is more likely than

not

to be sustained.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-based Compensation

The Company measures employee and nonemployee stock-based awards at grant-date fair value and records compensation expense on a straight-line basis over the vesting period of the award. Stock-based awards issued to non-employees are revalued until the award vests. The Company uses the Black-Scholes option pricing model to value its stock option awards. Estimating the fair value of stock option awards requires management to apply judgment and make estimates, including the volatility of the Company’s common stock, the expected term of the Company’s stock options, the expected dividend yield and the fair value of the Company’s common stock on the measurement date. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards.

The expected term of stock options was estimated using the “simplified method” for employee options as the Company has

historical information to develop reasonable expectations about future exercise patterns and post vesting employment termination behavior for its stock option grants. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. For options granted to non-employees, the Company uses the remaining contractual life. For stock price volatility, the Company uses comparable public companies as a basis for its expected volatility to calculate the fair value of option grants. The Company assumes

dividend yield because dividends are

not

expected to be paid in the near future, which is consistent with the Company’s history of

not

paying dividends. The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the option. The Company

longer estimates forfeitures and accounts for forfeitures in the periods they occur.

Earnings Per Share, Policy [Policy Text Block]

Net Loss Per Share

Basic loss per share is computed by dividing net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during each period. For purposes of calculating diluted loss per common share, the denominator includes both the weighted average common shares outstanding and the number of common stock equivalents if the inclusion of such common stock equivalents would be dilutive. Dilutive common stock equivalents potentially include warrants, stock options and restricted stock awards using the treasury stock method and convertible debt using the “if-converted” method. The diluted loss per common share calculation is further affected by an add-back of change in fair value of warrant liability to the numerator under the assumption that the change in fair value of warrant liability would

not

have been incurred if the warrants had been converted into common stock.

	Year ended December 31,
	2018			2017
Basic net loss per common share calculation:
Net loss	$	(18,369,810	)	$	(1,364,518	)
Accretion of Series A cumulative preferred dividends		(85,993	)		(1,252,394	)
Deemed dividend related to the make-whole provision for the conversion of Series A convertible preferred stock into common stock		(8,167,895	)		—
Net loss attributable to common stockholders	$	(26,623,698	)	$	(2,616,912	)

Weighted average shares outstanding, basic		3,242,301			827,575
Net loss per share of common, basic	$	(8.21	)	$	(3.16	)
Diluted net loss per common share calculation:
Net loss attributable to common stockholders		(26,623,698	)		(2,616,912	)
Change in fair value of warrant liability		—			(22,072,322	)
Diluted net loss		(26,623,698	)		(24,689,234	)
Weighted average common shares outstanding, basic		3,242,301			827,575
Common stock equivalents arising from warrants		—			20,515
Common stock equivalents		3,242,301			848,090
Net loss per share of common stock, diluted	$	(8.21	)	$	(29.11	)

The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted average shares outstanding, as they would be anti-dilutive:

	December 31,
	2018		2017
Convertible debt		—		14,292
Common stock warrants		2,087,012		29,848
Convertible preferred stock		—		553,752
Stock options		214,319		170,461
Unvested restricted stock awards		—		204
		2,301,331		768,557

Amounts in the table reflect the common stock equivalents of the noted instruments.

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Loss

The Company has

items of comprehensive income or loss other than net loss.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued But

Not

Yet Adopted Accounting Pronouncements

August 2018,

the FASB issued ASU

2018

13,

Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurements,

which changes the fair value measurement disclosure requirements of ASC

820.

The goal of the ASU is to improve the effectiveness of ASC

820's

disclosure requirements by providing users of the financial statements with better information about assets and liabilities measured at fair value in the financial statements and notes thereto. The guidance is applicable to public business entities for fiscal years beginning after

December 15, 2019

and interim periods within those years. The Company is currently evaluating the potential impact of the adoption of this standard on its related disclosures.

July 2017,

the FASB issued ASU

2017

11,

Earnings Per Share (Topic

260

); Distinguishing Liabilities from Equity (Topic

480

); Derivatives and Hedging (Topic

815

): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception.

The

first

part of this update addresses the complexity of accounting for certain financial instruments with down round features and the

second

part addresses the complexity of distinguishing liabilities from equity. The guidance is applicable to public business entities for fiscal years beginning after

December 15, 2018

and interim periods within those years. The Company is currently evaluating the potential impact of the adoption of this standard on its consolidated results of operations, financial position and cash flows and related disclosures.

February 2016,

the FASB issued ASU

2016

02,

Leases (Topic

842

Under the new guidance

lessees are required to record a right-of-use (ROU) asset and a lease liability for all leases with a term greater than

months, measured on a discounted basis. Leases with a term of

months or less will be accounted for similar to existing guidance for operating leases. ASC

842

will be effective for the Company on

January 1, 2019,

and the Company expects to apply the practical expedients allowed by the standard, mainly related to the reassessment of expired or existing leases. See Note

for details of the Company's current lease arrangement. Although management continues to evaluate the effect to the Company's Consolidated Financial Statements and disclosures, management currently estimates total assets and liabilities will increase approximately

$0.3

million to

$0.4

million upon adoption. Management does

not

expect a material impact to the Company’s Consolidated Statements of Operations or Consolidated Statements of Cash Flows.

Recently Adopted Accounting Pronouncements

January 2017,

the FASB issued ASU

2017

04,

Intangibles-Goodwill and Other (Topic

350

)

which simplifies the accounting for goodwill impairments by eliminating step

from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The standard will be effective for fiscal years beginning after

December 15, 2019,

including interim periods within such fiscal years. Early adoption is allowed for all entities as of

January 1, 2017,

for annual and any interim impairment tests occurring on or after

January 1, 2017.

The Company early adopted this standard in the

third

quarter of

2018.

See Note

for further discussion of the Company's intangible assets, including goodwill.

March

2016,

the FASB issued ASU

2016

09,

Compensation – Improvements to Employee Share-Based Payment Accounting

, which simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance is applicable to public business entities for fiscal years beginning after

December 15, 2016

and interim periods within those years. The Company adopted this standard in

2017

by electing to account for forfeitures in the period that they occur. Under ASU

2016

09,

accounting changes adopted using the modified retrospective method must be calculated as of the beginning of the period adopted and reported as a cumulative-effect adjustment. As a result, the Company recognized cumulative-effect adjustment of approximately

$1,000

January 1, 2017.