Note 2 - Liquidity

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Substantial Doubt about Going Concern [Text Block]

2.

Liquidity

The Company has not generated any revenues from product sales and has funded operations primarily from the proceeds of private placements of its membership units (prior to the Merger) and convertible notes, as well as through the reverse merger. Substantial additional financing will be required by the Company to continue to fund its research and development activities. No assurance can be given that any such financing will be available when needed or that the Company’s research and development efforts will be successful.

The Company regularly explores alternative means of financing its operations and seeks funding through various sources, including public and private securities offerings, collaborative arrangements with

third

parties and other strategic alliances and business transactions. The Company received net cash proceeds of approximately

$14.1

million from the initial closing of a private placement (the “Private Placement”) of the Company’s Series A convertible preferred stock (the “Series A Convertible Preferred Stock”), after deducting 

$1.7

million in placement agent fees and expenses. The Company

may

periodically conduct

one

or more additional closings in the Private Placement for up to aggregate gross proceeds of

$25.0

million.

Other than as described in Note

17,

the Company currently does not have any commitments to obtain additional funds and

may

be unable to obtain sufficient funding in the future on acceptable terms, if at all. If the Company cannot obtain the necessary funding, it will need to delay, scale back or eliminate some or all of its research and development programs or enter into collaborations with

third

parties to: commercialize potential products or technologies that it might otherwise seek to develop or commercialize independently; consider other various strategic alternatives, including a merger or sale of the Company; or cease operations. If the Company engages in collaborations, it

may

receive lower consideration upon commercialization of such products than if it had not entered into such arrangements or if it entered into such arrangements at later stages in the product development process.

The Company has prepared its financial statements assuming that it will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred net losses since inception and it expects to generate losses from operations for the foreseeable future primarily due to research and development costs for its potential product candidates, which raises substantial doubt about the Company’s ability to continue as a going concern. Various internal and external factors will affect whether and when the Company’s product candidates become approved drugs and how significant their market share will be, some of which are outside of the Company’s control. The length of time and cost of developing and commercializing these product candidates and/or failure of them at any stage of the drug approval process will materially affect the Company’s financial condition and future operations. The Company expects its existing cash as of

December

31,

2016,

together with the proceeds from the initial closing of the Private Placement of its Series A Convertible Preferred Stock in

March

2017,

will enable the Company to fund its operating expenses and capital expenditure requirements into

December

of

2017.