Non-Cash litigation Settlement Due in Shares of Common Stock

12 Months Ended

Dec. 31, 2015

Non-Cash litigation Settlement Due in Shares of Common Stock [Abstract]

Non-Cash litigation Settlement Due in Shares of Common Stock

9. Non-Cash Litigation Settlement Due in Shares of Common Stock

On December 10, 2015, CytRx announced that the Company had reached an agreement to settle the federal consolidated securities class action and filed a Stipulation of Settlement with the Court. As part of the settlement agreement, the Company will issue the equivalent number of shares of its common stock to the class of a non-cash amount of $4,500,000 worth at the prevailing stock price at the time of the Court's final approval of the settlement agreement, but not less than a minimum of 1,200,000 shares and not more than a maximum of 1,800,000 shares. In accordance with ASC 480, the Company has classified the $4.5 million worth of shares of the common stock as a liability included in the litigation settlement due in shares of common stock in the December 31, 2015 balance sheet, due to the variable number of shares that will be issued upon the Court's final approval of the settlement agreement.