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Going Concern
3 Months Ended
Mar. 31, 2019
Going Concern [Abstract]  
Going Concern

Note 2 - Going Concern

As reflected in the accompanying financial statements, the Company had cash and cash equivalents of $5.2 million as of March 31, 2019 with net loss of $5.8 million for the three months ended March 31, 2019. The net loss is primarily attributable to the non-cash derivative loss of $3.1 million that was recognized, along with operating expenses of $2.7 million during the period ended March 31, 2019. The Company used net cash in operations of $2.4 million for the period ended March 31, 2019. As of March 31, 2019, the Company ended with an accumulated deficit of $176.8 million and stockholders’ deficit of $0.5 million. In addition, the Company is a clinical stage biopharmaceutical company and has not generated any revenues or profits to date. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

During the three months ending March 31, 2019, the Company received a total of $20,000 from the exercise of investor warrants (see Note 7). The Company prepared a budget for 2019, which reflects cash requirements for fixed, on-going expenses such as payroll, legal and accounting, patents and overhead at an average cash burn rate of approximately $0.7 million per month. Additional funds are planned for regulatory approvals, clinical trials, outsourced research and development and commercialization consulting. Ampio expects that current cash resources and operating cash flows will be sufficient to sustain operations into the second quarter of 2019. The ability of the Company to continue its operations is dependent on management’s plans, which include continuing to raise equity-based and debt financing, as well as encouraging additional warrant exercises. However, there is no assurance that the Company will be successful in raising sufficient capital to continue its operations.

The accompanying unaudited interim financial statements were prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.