3.	Basis of Presentation and Summary of Significant Accounting Policies

The Summary of Significant Accounting Policies included in the Company's Form

-K for the year ended

December

31,

2018,

filed with the Securities and Exchange Commission on

March 19, 2019

have

not

materially changed, except as set forth below.

Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as found in the Accounting Standard Codification (“ASC”) and Accounting Standards Updates (“ASUs”) of the Financial Accounting Standards Board (“FASB”), and with the instructions to Form

-Q and Article

of Regulation S-

of the Securities and Exchange Commission (the “SEC”). In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements of the Company include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the unaudited interim condensed consolidated financial statements) considered necessary to present fairly the Company’s financial position as of

September

30,

2019,

its results of operations for the

three

and

nine

months ended

September

30,

2019

and

2018

and cash flows for the

nine

months ended

September

30,

2019

and

2018.

Operating results for the

nine

months ended

September

30,

2019

are

not

necessarily indicative of the results that

may

be expected for the year ending

December

31,

2019.

The unaudited interim condensed consolidated financial statements presented herein do

not

contain the required disclosures under GAAP for annual financial statements. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the annual audited financial statements and related notes as of and for the year ended

December

31,

2018

filed with the SEC on Form

-K on

March 19, 2019.

Use of Estimates

The preparation of the unaudited interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date the financial statements and reported amounts of expense during the reporting period. Actual results could differ from those estimates. Due to the uncertainty of factors surrounding the estimates or judgments used in the preparation of the unaudited interim condensed consolidated financial statements, actual results

may

materially vary from these estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the unaudited interim condensed consolidated financial statements in the period they are deemed necessary.

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.

Intangible Asset

The Company's RES-

529

intangible asset is 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

nine

months ended

September

30,

2019

and

2018.

Leases

February 2016,

the FASB issued a new standard related to leases to increase transparency and comparability among organizations by requiring the recognition of operating lease right-of-use (“ROU”) assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. See note

for further details.

Net Loss Per Common Share

Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of Common Stock outstanding during each period. Diluted net loss per share includes the effect, if any, from the potential exercise or conversion of securities, such as convertible debt, convertible preferred stock, common stock warrants, stock options and unvested restricted stock that would result in the issuance of incremental shares of Common Stock. In computing the basic and diluted net loss per share applicable to common stockholders, the weighted average number of shares remains the same for both calculations due to the fact that when a net loss exists, dilutive shares are

not

included in the calculation as the impact is anti-dilutive.

The following potentially dilutive securities outstanding as of

September

30,

2019

and

2018

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

	Nine Months Ended September 30,
	2019		2018
Common stock warrants		3,469,825		2,087,501
Stock options		309,276		214,353
		3,779,101		2,301,854

Recently Issued But

Not

Yet Adopted Accounting Pronouncements

August

2018,

the FASB issued ASU

2018

03,

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. 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.

Recently Adopted Accounting Pronouncements

February 2016,

the FASB issued ASU

2016

02,

Leases (Topic

842

)

to increase transparency and comparability among organizations by requiring the recognition of operating lease right-of-use assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. Under ASC

842,

disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases.

The Company adopted ASC

842,

effective

January 1, 2019

using a modified retrospective approach and elected to apply the available practical expedients. The standard had an impact on the Company’s unaudited interim condensed consolidated balance sheet but did

not

have an impact on the Company’s unaudited interim condensed consolidated statements of operations or consolidated statements of cash flows upon adoption. The most significant impact of ASC

842

was the recognition of a

$0.3

million ROU asset and corresponding lease liability for the Company's single operating lease.

January 1, 2019,

the Company adopted ASU

2018

07,

Compensation—Stock Compensation (Topic

718

): Improvements to Non-employee Share-Based Payment Accounting

(“ASU

No.

2018

07”

) which simplifies the accounting for share-based payments granted to non-employees for goods and services. The ASU supersedes ASC

505

Equity-based Payments to Non-employees

and expands the scope of ASC

718

to include all

share-based payment arrangements related to the acquisition of goods and services from both non-employees and employees. The adoption of ASU

No.

2018

did

not

have an impact on the unaudited interim condensed consolidated financial statements of the Company.