Liquidity and Uncertainties

12 Months Ended

Dec. 31, 2016

Liquidity and Uncertainties

Liquidity and Uncertainties

4. Liquidity and Uncertainties

        The Company is subject to risks common to development stage companies in the Bio-Pharmaceutical industry including, but not limited to, uncertainty of product development and commercialization, dependence on key personnel, uncertainty of market acceptance of products and product reimbursement, product liability, uncertain protection of proprietary technology, potential inability to raise additional financing necessary for development and commercialization, and compliance with the U.S. Food and Drug Administration and other government regulations.

        The Company has incurred losses since inception, including approximately $26,388,000 for the year ended December 31, 2016, resulting in an accumulated deficit of approximately $75,307,000 and $48,920,000 as of December 31, 2016 and 2015, respectively. Management expects to incur losses for the foreseeable future. To date, the Company has funded its operations primarily through the issuance of convertible debt (see Note 6), the proceeds from the Merger on July 22, 2016 (see Note 3) and proceeds from the Company's at-the-market issuance sales agreement (see Note 8).

        The Company believes that its cash, cash equivalents and marketable securities at December 31, 2016, as well as proceeds raised from its at-the-market issuances agreement during the first quarter of 2017 (see Note 14), will be sufficient to fund operations into the second quarter of 2018. To meet its future capital needs, the Company intends to raise additional capital through debt or equity financings, collaborations, partnerships or other strategic transactions. However, there can be no assurance that the Company will be able to complete any such transactions on acceptable terms or otherwise. The inability of the Company to obtain sufficient funds on acceptable terms when needed could have a material adverse effect on the Company's business, results of operations and financial condition. The Company has the ability to delay certain research activities and related clinical expenses if necessary due to liquidity concerns until a date in which those concerns are relieved.