þ
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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11-3516358
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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15245 Shady Grove Road, Suite 455
Rockville, Maryland
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20850
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(Address of principal executive offices)
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(Zip Code)
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Title of Each Class
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Name of Each Exchange on Which Registered
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Common Stock, $.0001 par value per share
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NYSE AMEX
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Large accelerated filer o
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Accelerated filer þ
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Non-accelerated filer o
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Smaller reporting company o
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(Do not check if a smaller reporting company) |
Class
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Outstanding at March 15, 2012
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Common Stock, $.0001 par value per share
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95,345,656 shares
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Document
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Parts Into Which Incorporated
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Portions of the registrant’s Proxy Statement for the Annual Meeting of Stockholders to be held on June 18, 2012
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Part III
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our lack of profitability and the need for additional capital to operate our business;
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our ability to obtain the necessary U.S. and worldwide regulatory approvals for our drug candidates;
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successful and timely completion of clinical trials for our drug candidates;
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demand for and market acceptance of our drug candidates;
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the availability of qualified third-party researchers and manufacturers for our drug development programs;
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our ability to develop and obtain protection of our intellectual property; and
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other risks and uncertainties, including those set forth herein under the caption “Risk Factors” and those detailed from time to time in our filings with the Securities and Exchange Commission.
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PAGE | ||
PART I |
1
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Item 1. |
1
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Item 1A. |
15
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Item 1B. |
27
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Item 2. |
27
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Item 3. |
27
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Item 4. | Mine Safety Disclosures | 27 |
PART II |
28
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Item 5. |
28
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Item 6. |
31
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Item 7. |
32
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Item 7A. |
46
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Item 8. |
46
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Item 9. |
46
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Item 9A. |
46
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Item 9B. |
51
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PART III |
52
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Item 10. |
52
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Item 11. |
52
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Item 12. |
52
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Item 13. |
52
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Item 14. |
52
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Item 15. |
53
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56 |
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·
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Long-term management of cancers: Surgery, chemotherapy or radiation therapy may not result in long-term remission, though surgery and radiation therapies are considered cure methods. Therefore, there is a need for more effective drugs and adjuvant therapies to treat relapsed and refractory cancers.
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Multi-drug resistance: Multi-drug resistance is a major obstacle in successful clinical outcomes.
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Debilitating toxicity by chemotherapy: Chemotherapy as a mainstay of cancer treatment induces severe adverse reactions and toxicities, affecting quality of life or life itself.
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Faster onset of action. Current antidepressants take four to six weeks to relieve depression symptoms. The delay in onset of antidepressant activity is associated with the most common antidepressant drug classes including: selective serotonin reuptake inhibitors (SSRIs), serotonin-norepinephrine reuptake inhibitors (SNRIs), monoamine oxidase inhibitors (MAOIs), and tricyclic antidepressants (TCAs).
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Fewer side effects. The most widely used antidepressants, SSRIs, are linked with side effects of insomnia, weight gain and sexual dysfunction. The safety of SSRIs has also been called into question over concerns about inducing suicidal ideations. Use of benzodiazepines is linked with side effects of cognitive deficit and motor impairment.
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Improved compliance. High rate of serious side effects among patients taking anti-depressant drugs leads many to stop taking the prescribed medicines, resulting in high non-compliance rates of 40% to 65%.
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Need for greater efficacy. Remission is one key objective of depression treatment. The proportion of patients achieving remission after antidepressant treatment ranges from 35% to 55% depending on the severity of depression.4 New drugs with much higher efficacy as well as wider coverage of the depression patients are needed.
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4
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Remission rates tend to vary based on factors such as: treatment algorithm and drugs prescribed, patient geographic population or country, prescribing doctor (primary care, psychiatrist), and time at which remission rates are measured (3, 6, 8, or 10 weeks of treatment). Depression, June 2007; MDD, March 2006 (Datamonitor).
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Reduced MDD relapse. High relapse rate of about 35% and lingering symptoms are serious problems in antidepressant treatment.
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Need for Greater Efficacy- An estimated 30% of US men are refractory to the leading PDE-5 inhibitor drugs (Viagra, Cialis, and Levitra), which work peripherally and mechanically. Certain segments of the ED patient population that respond less to PDE-5 inhibitors include diabetics, obese or post-surgical prostatectomy or coronary risk patients.
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5
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Erectile Dysfunction, 2006 (Datamonitor).
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6
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Gresser U and Gleiter CH. Erectile Dysfunction: Comparison of efficacy and side effects of the PDE-5 inhibitors sildenafil, vardenafil and tadalafil (Review of Literature). Eur J Med Res (2002) 7:435-46.
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Reduced Side Effects- PDE-5 inhibitors have significant drawbacks of cardiovascular risks and other side effects (e.g., priapism, severe hypotension, myocardial infarction, ventricular arrhythmias, sudden death and increased intraocular pressure).
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Expedited Regulatory or Commercialization Pathways. Drugs for life-threatening diseases such as cancer are often treated by the FDA as candidates for fast track, priority and accelerated reviews. Expedited regulatory review may lead to clinical studies that require fewer patients, or expedited clinical trials.
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Favorable Environment for Formulary Access and Reimbursement. Cancer drugs with proven efficacy or survival benefit, and cost-effective clinical outcomes would be expected to gain rapid market uptake, formulary listing and payer reimbursement. In addition, drugs that have orphan designations are generally reimbursed by insurance companies given that there are few, if any, alternatives. Because mental disorders affect more than 55 million estimated Americans, the burden of illness is significant for insurance companies as well as for employers. Given the significant cost of treating behavioral health problems, there is a favorable environment for formulary access and reimbursement for effective products that treat multiple disorders.
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Focus on Specialty Markets. The marketing of new drugs to specialty physicians can be accomplished with a specialty sales force that requires fewer personnel and lower related costs than a typical sales force that markets to primary care physicians and general practitioners.
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(1)
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Archexin: First-in-class anticancer Akt inhibitor
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(2)
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Serdaxin: CNS Disorders drug for depression and neurodegenerative diseases
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(3)
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Zoraxel: ED and sexual dysfunction drug
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(1)
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RX-1792: Small molecule anticancer EGFR inhibitor
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(2)
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RX-5902: Small molecule anticancer RNA helicase regulator
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(3)
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RX-3117: Small molecule anticancer DNA synthesis Inhibitor
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(4)
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RX-8243: Small molecule anticancer aurora kinase inhibitor
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(5)
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RX-0201-Nano: Nanoliposomal anticancer Akt inhibitor
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(6)
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RX-0047-Nano: Nanoliposomal anticancer HIF-1 alpha inhibitor
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(7)
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RX-21101: Nano-polymer Anticancer
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continued pre-clinical development and clinical trials for our current and new drug candidates;
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efforts to seek regulatory approvals for our drug candidates;
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implementing additional internal systems and infrastructure;
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licensing in additional technologies to develop; and
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hiring additional personnel.
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conducting pre-clinical and clinical trials;
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participating in regulatory approval processes;
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formulating and manufacturing products; and
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conducting sales and marketing activities.
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unforeseen safety issues;
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determination of dosing issues;
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lack of effectiveness during clinical trials;
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change in the standard of care of the indication being studied
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reliance on third party suppliers for the supply of drug candidate samples;
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slower than expected rates of patient recruitment;
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inability to monitor patients adequately during or after treatment;
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inability or unwillingness of medical investigators and institutional review boards to follow our clinical protocols; and
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lack of sufficient funding to finance the clinical trials.
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awareness of the drug’s availability and benefits;
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perceptions by members of the health care community, including physicians, about the safety and effectiveness of our drugs;
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pharmacological benefit and cost-effectiveness of our product relative to competing products;
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availability of reimbursement for our products from government or other healthcare payers;
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effectiveness of marketing and distribution efforts by us and our licensees and distributors, if any; and
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the price at which we sell our products.
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We may be unable to identify manufacturers on acceptable terms or at all because the number of potential manufacturers is limited and the FDA must approve any replacement contractor. This approval would require new testing and compliance inspections. In addition, a new manufacturer would have to be educated in, or develop substantially equivalent processes for, the production of our products after receipt of FDA approval, if any.
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Our third-party manufacturers might be unable to formulate and manufacture our drugs in the volume and of the quality required to meet our clinical needs and commercial needs.
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Our contract manufacturers may not perform as agreed or may not remain in the contract manufacturing business for the time required to supply our clinical trials or to successfully produce, store and distribute our products.
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Drug manufacturers are subject to ongoing periodic unannounced inspection by the FDA, the Drug Enforcement Agency (DEA), and corresponding state agencies to ensure strict compliance with good manufacturing practice and other government regulations and corresponding foreign standards. We do not have control over third-party manufacturers’ compliance with these regulations and standards, but we may be ultimately responsible for any of their failures.
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If any third-party manufacturer makes improvements in the manufacturing process for our products, we may not own, or may have to share, the intellectual property rights of formulation patents .
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A third party manufacturer may gain knowledge from working with us that could be used to supply one of our competitors with a product that competes with ours.
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developing drugs;
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undertaking pre-clinical testing and human clinical trials;
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obtaining FDA and other regulatory approvals of drugs;
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formulating and manufacturing drugs; and
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launching, marketing and selling drugs.
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the degree and range of protection any patents will afford us against competitors, including whether third parties find ways to invalidate or otherwise circumvent our licensed patents;
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if and when patents will issue in the United States or any other country;
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whether or not others will obtain patents claiming aspects similar to those covered by our licensed patents and patent applications;
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whether we will need to initiate litigation or administrative proceedings which may be costly whether we win or lose;
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whether our patents will be challenged by our competitors alleging that a patent is invalid or unenforceable and, if opposed or litigated, the outcome of any administrative or court action as to patent validity, enforceability, or scope;
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whether a competitor will develop a similar compound that is outside the scope of protection afforded by a patent or whether the patent scope is inherent in the claims modified due to interpretation of claim scope by a court;
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whether there were activities previously undertaken by a licensor that could limit the scope, validity, or enforceability of licensed patents and intellectual property;
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whether there will be challenges or litigation brought by a licensor alleging breach of a license agreement and its effect on our ability to practice particular technologies and the outcome of any such challenge or litigation; or
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whether a competitor will assert infringement of its patents or intellectual property, whether or not meritorious, and what the outcome of any related litigation or challenge may be.
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obtain licenses, which may not be available on commercially reasonable terms, if at all;
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redesign our products or processes to avoid infringement;
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stop using the subject matter claimed in the patents held by others, which could cause us to lose the use of one or more of our drug candidates;
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pay damages; or
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defend litigation or administrative proceedings which may be costly whether we win or lose, and which could result in a substantial diversion of our management resources.
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the announcement of new products or product enhancements by us or our competitors;
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changes in our relationships with our licensors or other strategic partners;
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developments concerning intellectual property rights and regulatory approvals;
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variations in our and our competitors’ results of operations;
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changes in earnings estimates or recommendations by securities analysts; and
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developments in the biotechnology industry.
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Period
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High
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Low
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||||||
2010
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||||||||
First Quarter
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1.65 | 0.66 | ||||||
Second Quarter
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3.65 | 1.12 | ||||||
Third Quarter
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1.49 | 1.13 | ||||||
Fourth Quarter
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1.24 | 0.98 | ||||||
2011
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First Quarter
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1.84 | 1.07 | ||||||
Second Quarter
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1.39 | 1.15 | ||||||
Third Quarter
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1.27 | 0.91 | ||||||
Fourth Quarter
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1.16 | 0.35 |
Number of
securities to be
issued upon
exercise of
outstanding
options, warrants
and rights
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Weighted average
exercise price of
outstanding
options, warrants
and rights
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Number of
securities remaining
available for future
issuance under
equity compensation
plans
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||||||||||
Equity compensation plans approved by stockholders
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7,646,795 | $ | 1.05 | 8,673,000 | ||||||||
Equity compensation plans not approved by stockholders
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– | – | – | |||||||||
Total
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7,646,795 | $ | 1.05 | 8,673,000 |
For the Year Ended December 31,
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2011
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2010
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2009
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2008
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2007
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Statement of Operations Data:
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Revenue
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$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Operating Expenses
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16,131,013 | 10,305,909 | 6,465,898 | 5,152,315 | 4,432,149 | |||||||||||||||
Net Loss
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(11,344,950 | ) | (14,022,107 | ) | (2,903,098 | ) | (3,681,801 | ) | (4,442,331 | ) | ||||||||||
Basic and Diluted Loss per Share
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$ | (0.12 | ) | $ | (0.18 | ) | $ | (0.05 | ) | $ | (0.07 | ) | $ | (0.09 | ) | |||||
Weighted Average shares outstanding, basic and diluted
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93,048,490 | 78,662,495 | 61,411,442 | 55,856,991 | 50,332,642 | |||||||||||||||
As of December 31,
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2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Balance Sheet Data:
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Cash, Cash Equivalents, Restricted Cash and Marketable Securities
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$ | 13,243,253 | $ | 15,193,752 | $ | 9,499,092 | $ | 3,368,880 | $ | 7,359,571 | ||||||||||
Total Assets
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$ | 13,689,648 | $ | 16,216,184 | $ | 9,989,005 | $ | 4,113,989 | $ | 8,483,670 | ||||||||||
Current Liabilities
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1,185,405 | 1,820,900 | 785,904 | 358,894 | 606,832 | |||||||||||||||
Accumulated Deficit
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(57,084,613 | ) | (45,739,663 | ) | (31,717,556 | ) | (28,814,458 | ) | (24,132,657 | ) | ||||||||||
Total Stockholders’ Equity (Deficit)
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$ | 10,706,130 | $ | 10,395,457 | $ | 4,902,411 | $ | (2,602,689 | ) | $ | 958,193 | |||||||||
Common shares outstanding
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95,345,656 | 84,160,849 | 71,938,701 | 56,025,649 | 55,292,791 |
2011
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2010
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2009
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Cumulative from
March 19, 2001
(Inception)
to December 31,
2011
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Clinical Candidates
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Archexin
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$ | 230,000 | $ | 240,000 | $ | 800,000 | $ | 6,470,000 | ||||||||
Serdaxin
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7,430,000 | 1,220,000 | 200,000 | 9,650,000 | ||||||||||||
Zoraxel
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205,000 | 40,000 | 200,000 | 1,245,000 | ||||||||||||
Preclinical Candidates
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RX-3117
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1,397,500 | 1,500,000 | 250,000 | 3,197,500 | ||||||||||||
Other Preclinical Compounds
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1,190,000 | 270,000 | 200,000 | 2,710,000 | ||||||||||||
$ | 10,452,500 | $ | 3,270,000 | $ | 1,650,000 | $ | 23,272,500 |
2012
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158,835 | |||
2013
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162,806 | |||
2014
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82,408 | |||
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$ | 404,049 |
Payments due by period
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Contractual Obligations
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Total
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Less than 1
year
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1-3 years
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3-5 years
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Greater than
5 years
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|||||||||||||||
Operating Leases
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$ | 431,373 | $ | 186,519 | $ | 245,214 | $ | - | $ | - | ||||||||||
Total:
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$ | 431,373 | $ | 186,519 | $ | 245,214 | $ | - | $ | - |
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·
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the progress of our product development activities;
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the number and scope of our product development programs;
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the progress of our pre-clinical and clinical trial activities;
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the progress of the development efforts of parties with whom we have entered into collaboration agreements;
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our ability to maintain current collaboration programs and to establish new collaboration arrangements;
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the costs involved in prosecuting and enforcing patent claims and other intellectual property rights; and
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the costs and timing of regulatory approvals.
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Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and the dispositions of the assets of the Company;
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Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorization of management and the board of directors of the Company; and
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·
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Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.
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(1)
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Financial Statements:
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Report of ParenteBeard LLC
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F-1
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Balance Sheet as of December 31, 2011 and December 31, 2010
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F-2
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Statement of Operations for the years ended December 31, 2011, December 31, 2010, December 31, 2009 and cumulative from March 19, 2001 (Inception) to December 31, 2011
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F-3
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Statement of Stockholders’ Equity (Deficit) and Comprehensive Loss from March 19, 2001 (Inception) to December 31, 2011
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F-4
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Statement of Cash Flows for the years ended December 31, 2011, December 31, 2010, December 31, 2009 and cumulative from March 19, 2001 (Inception) to December 31, 2011
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F-7
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Notes to the Financial Statements
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F-10
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(2)
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Exhibits:
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The documents listed below are filed with this Annual Report on Form 10-K as exhibits or incorporated into this Annual Report on Form 10-K by reference as noted: |
Exhibit
Number
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Exhibit Description
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3.1
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Amended and Restated Certificate of Incorporation, filed as Appendix G to the Company’s Definitive Proxy Statement on Schedule 14A (File No. 000-50590) dated April 29, 2005, is incorporated herein by reference.
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3.2
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Amended and Restated Bylaws, filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on March 26, 2010, is incorporated herein by reference.
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4.1
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Specimen Certificate for the Company’s Common Stock, par value $.0001 per share, filed as Exhibit 4.3 to the Company’s Registration Statement on Form S-8 (File No. 333-129294) dated October 28, 2005, is incorporated herein by reference.
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4.2
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Form of Senior Debt Securities Indenture, filed as Exhibit 4.3 to the Company’s Registration Statement on Form S-3 dated June 22, 2011, is incorporated herein by reference.
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4.3
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Form of Subordinated Debt Securities Indenture, filed as Exhibit 4.3 to the Company’s Registration Statement on Form S-3 dated June 22, 2011 is incorporated herein by reference.
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*10.1.1
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Rexahn Pharmaceuticals, Inc. Stock Option Plan, as amended, filed as Exhibit 4.4 to the Company’s Registration Statement on Form S-8 (File No. 333-129294) dated October 28, 2005, is incorporated herein by reference.
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*10.1.2
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Form of Stock Option Grant Agreement for Employees, filed as Exhibit 4.5.1 to the Company’s Registration Statement on Form S-8 (File No. 333-129294) dated October 28, 2005, is incorporated herein by reference.
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*10.1.3
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Form of Stock Option Grant Agreement for Non-Employee Directors and Consultants, filed as Exhibit 4.5.2 to the Company’s Registration Statement on Form S-8 (File No. 333-129294) dated October 28, 2005, is incorporated herein by reference.
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*10.2
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Employment Agreement, dated as of September 9, 2010, by and between Rexahn Pharmaceuticals, Inc. and C. H. Ahn, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on September 10, 2010, is incorporated herein by reference.
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*10.3
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Employment Agreement, dated as of September 9, 2010, by and between Rexahn Pharmaceuticals, Inc. and T. H. Jeong, filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on September 10, 2010, is incorporated herein by reference.
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10.4
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Lease Agreement, dated June 5, 2009, by and between Rexahn Pharmaceuticals, Inc. and The Realty Associates Fund V, L.P., filed as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009, is incorporated herein by reference
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*10.5
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Employment Agreement, dated as of September 9, 2010, by and between Rexahn Pharmaceuticals, Inc. and Rakesh Soni, filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on September 10, 2010, is incorporated herein by reference.
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10.6
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Securities Purchase Agreement, dated as of May 19, 2009 by and between Rexhan Pharmaceuticals, Inc. and the purchaser signatory thereto, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on May 20, 2009, is incorporated herein by reference.
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10.7
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Form of Warrant for the Company’s Series I, II, and III Common Stock Purchase Warrants, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on May 20, 2009, is incorporated herein by reference.
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10.8
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Research and Exclusive License Option Agreement, dated as of June 26, 2009, by and between Rexahn Pharmaceuticals, Inc. and Teva Pharmaceutical Industries Limited, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on September 21, 2009, is incorporated herein by reference.
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10.9
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Securities Purchase Agreement, dated as of June 26, 2009, by and between Rexahn Pharmaceuticals, Inc. and Teva Pharmaceutical Industries Limited (the “Teva Securities Purchase Agreement”), filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on September 21, 2009, and Amendment No. 1 to the Teva Securities Purchase Agreement, filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on September 21, 2009, are incorporated herein by reference.
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10.10
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Securities Purchase Agreement, dated as of October 19, 2009, by and between Rexahn Pharmaceuticals, Inc. and the purchasers signatory thereto, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on October 20, 2009, is incorporated herein by reference.
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10.11
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Form of Warrant for the Company’s Common Stock Purchase Warrants, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on October 20, 2009, is incorporated herein by reference.
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10.12
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Securities Purchase Agreement, dated as of June 28, 2010 by and between Rexahn Pharmaceuticals, Inc. and the purchasers signatory thereto, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on June 29, 2010, is incorporated herein by reference.
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10.13
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Form of Warrant for the Company’s Common Stock Purchase Warrants, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on June 29, 2010, is incorporated herein by reference.
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10.14
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Amendment No. 2 to the Teva Securities Purchase Agreement, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on January 20, 2011, is incorporated herein by reference.
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10.15
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Form of Warrant for the Company’s Common Stock Purchase Warrants, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on March 30, 2011, is incorporated herein by reference.
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12
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Statement re Computation of Ratios
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14
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Code of Ethics and Business Conduct, filed as Exhibit 14 to the Company’s Annual Report on 10-K for the fiscal year ended December 31, 2008, filed on March 16, 2009, is incorporated herein by reference.
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16
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Letter of Lazar Levine & Felix LLP dated February 27, 2009, filed as Exhibit 16.1 to the Company’s Amended Current Report on Form 8-K filed on March 2, 2009, is incorporated herein by reference.
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23
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Consent of ParenteBeard LLC, independent registered public accounting firm.
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24
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Power of Attorney
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31.1
|
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a).
|
31.2
|
Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a).
|
32.1
|
Certification of Chief Executive Officer of Periodic Report Pursuant to 18 U.S.C. Section 1350.
|
32.2
|
Certification of Chief Financial Officer of Periodic Report Pursuant to 18 U.S.C. Section 1350.
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema
|
101.CAL
|
XBRL Taxonomy Calculation Linkbase
|
101.DEF
|
XBRL Taxonomy Definition Linkbase
|
101.LAB
|
XBRL Taxonomy Label Linkbase
|
101.PRE
|
XBRL Taxonomy Presentation Linkbase
|
REXAHN PHARMACEUTICALS, INC. | ||
By: /s/ Chang H. Ahn
|
||
Chang H. Ahn
|
||
Chairman and Chief Executive Officer
|
Name
|
Title
|
|
/s/ Chang H. Ahn* | ||
Chang H. Ahn
|
Chairman and Chief Executive Officer (Principal Executive Officer)
|
|
/s/ Tae Heum Jeong | ||
Tae Heum Jeong
|
Chief Financial Officer, Secretary and Director (Principal Financial and Accounting Officer)
|
|
/s/ Peter Brandt* | ||
Peter Brandt
|
Director
|
|
/s/ David McIntosh* | ||
David McIntosh
|
Director
|
|
/s/ Charles Beever | ||
Charles Beever
|
Director
|
|
/s/ Kwang Soo Cheong* | ||
Kwang Soo Cheong
|
Director
|
|
/s/ Richard Kivel* | ||
Richard Kivel
|
Director
|
December 31,
2011
|
December 31,
2010
|
|||||||
ASSETS
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$ | 9,861,488 | $ | 12,340,239 | ||||
Marketable securities (note 4)
|
1,950,000 | 2,451,620 | ||||||
Research tax credit receivable (note 16)
|
- | 145,513 | ||||||
Prepaid expenses and other current assets (note 5)
|
333,171 | 706,649 | ||||||
Note receivable – current portion (note 6)
|
18,682 | 28,023 | ||||||
Total Current Assets
|
12,163,341 | 15,672,044 | ||||||
Restricted Cash Equivalents (note 15)
|
1,431,765 | 401,893 | ||||||
Note Receivable (note 6)
|
- | 18,682 | ||||||
Equipment, Net (note 7)
|
94,542 | 123,565 | ||||||
Total Assets
|
$ | 13,689,648 | $ | 16,216,184 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable and accrued expenses (note 8)
|
$ | 1,185,405 | $ | 1,820,900 | ||||
Deferred Research and Development Arrangement (note 9)
|
825,000 | 900,000 | ||||||
Other Liabilities (note 10)
|
104,388 | 133,117 | ||||||
Warrant Liabilities (note 13)
|
868,725 | 2,966,710 | ||||||
Total Liabilities
|
2,983,518 | 5,820,727 | ||||||
Commitments and Contingencies (note 16)
|
||||||||
Stockholders’ Equity (note 11):
|
||||||||
Preferred stock, par value $0.0001, 100,000,000 authorized shares, none issued and outstanding
|
- | - | ||||||
Common stock, par value $0.0001, 500,000,000 authorized shares, 95,359,861 (2010 – 84,175,054) issued and 95,345,656 (2010 – 84,160,849) outstanding
|
9,536 | 8,418 | ||||||
Additional paid-in capital
|
67,809,617 | 56,157,452 | ||||||
Accumulated other comprehensive loss
|
- | (2,340 | ) | |||||
Accumulated deficit during the development stage
|
(57,084,613 | ) | (45,739,663 | ) | ||||
Treasury stock, 14,205 shares, at cost
|
(28,410 | ) | (28,410 | ) | ||||
Total Stockholders’ Equity
|
10,706,130 | 10,395,457 | ||||||
Total Liabilities and Stockholders’ Equity
|
$ | 13,689,648 | $ | 16,216,184 |
Cumulative
|
||||||||||||||||
from March 19,
|
||||||||||||||||
2001
|
||||||||||||||||
For the Year Ended December 31,
|
(Inception) to
|
|||||||||||||||
2011
|
2010
|
2009
|
December 31,
2011
|
|||||||||||||
Revenues:
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Expenses:
|
||||||||||||||||
General and administrative
|
3,547,829 | 5,990,624 | 2,944,103 | 27,346,995 | ||||||||||||
Research and development
|
11,992,087 | 3,934,701 | 3,176,971 | 31,885,603 | ||||||||||||
Patent fees
|
546,027 | 329,925 | 303,220 | 2,101,005 | ||||||||||||
Depreciation and amortization
|
45,070 | 50,659 | 41,604 | 640,537 | ||||||||||||
Total Expenses
|
16,131,013 | 10,305,909 | 6,465,898 | 61,974,140 | ||||||||||||
Loss from Operations
|
(16,131,013 | ) | (10,305,909 | ) | (6,465,898 | ) | (61,974,140 | ) | ||||||||
Other Income (Expense)
|
||||||||||||||||
Realized (loss) gain on marketable securities .
|
(3,960 | ) | - | 11,025 | (13,301 | ) | ||||||||||
Interest income
|
109,240 | 133,268 | 67,445 | 1,421,307 | ||||||||||||
Interest expense
|
- | - | - | (301,147 | ) | |||||||||||
Other income
|
- | 56,047 | - | 56,047 | ||||||||||||
Unrealized gain (loss) on fair value of warrants
|
4,778,450 | (3,823,146 | ) | 1,793,101 | 3,676,105 | |||||||||||
Unrealized gain on fair value of put feature on common stock
|
- | 97,713 | 1,915,179 | 2,315,539 | ||||||||||||
Financing expense
|
(97,667 | ) | (180,080 | ) | (223,950 | ) | (640,023 | ) | ||||||||
Beneficial conversion feature
|
- | - | - | (1,625,000 | ) | |||||||||||
Total Other Income (Expense)
|
4,786,063 | (3,716,198 | ) | 3,562,800 | 4,889,527 | |||||||||||
Net Loss Before Provision for Income Taxes
|
(11,344,950 | ) | (14,022,107 | ) | (2,903,098 | ) | (57,084,613 | ) | ||||||||
Provision for Income Taxes
|
- | - | - | - | ||||||||||||
Net Loss
|
$ | (11,344,950 | ) | $ | (14,022,107 | ) | $ | (2,903,098 | ) | $ | (57,084,613 | ) | ||||
Net loss per share, basic and diluted
|
$ | (0.12 | ) | $ | (0.18 | ) | $ | (0.05 | ) | |||||||
Weighted average number of shares outstanding, basic and diluted
|
93,048,490 | 78,662,495 | 61,441,442 |
Accumulated
|
||||||||||||||||||||||||||||||||
Deficit
|
Accumulated
|
Total
|
||||||||||||||||||||||||||||||
Common Stock
|
Additional
|
During the
|
Treasury Stock
|
Other
|
Stockholders’
|
|||||||||||||||||||||||||||
Number of
|
Paid in
|
Development
|
Number of
|
Comprehensive
|
Equity
|
|||||||||||||||||||||||||||
shares
|
Amount
|
Capital
|
Stage
|
stock
|
Amount
|
Loss
|
(Deficit)
|
|||||||||||||||||||||||||
Opening balance, March 19, 2001
|
- | $ | - | $ | - | $ | - | - | $ | - | $ | - | $ | - | ||||||||||||||||||
Common stock issued
|
7,126,666 | 71,266 | 4,448,702 | - | - | - | - | 4,519,968 | ||||||||||||||||||||||||
Net loss
|
- | - | - | (625,109 | ) | - | - | - | (625,109 | ) | ||||||||||||||||||||||
Balances at, December 31, 2001
|
7,126,666 | 71,266 | 4,448,702 | (625,109 | ) | - | - | - | 3,894,859 | |||||||||||||||||||||||
Net loss
|
- | - | - | (1,181,157 | ) | - | - | - | (1,181,157 | ) | ||||||||||||||||||||||
Balances at, December 31, 2002
|
7,126,666 | 71,266 | 4,448,702 | (1,806,266 | ) | - | - | - | 2,713,702 | |||||||||||||||||||||||
Common stock issued
|
500,000 | 5,000 | 1,995,000 | - | - | - | - | 2,000,000 | ||||||||||||||||||||||||
Stock based compensation
|
- | - | 538,074 | - | - | - | - | 538,074 | ||||||||||||||||||||||||
Net loss
|
- | - | - | (2,775,075 | ) | - | - | - | (2,775,075 | ) | ||||||||||||||||||||||
Balances at, December 31, 2003
|
7,626,666 | 76,266 | 6,981,776 | (4,581,341 | ) | - | - | - | 2,476,701 | |||||||||||||||||||||||
Common stock issued
|
1,500 | 15 | 1,785 | - | - | - | - | 1,800 | ||||||||||||||||||||||||
Stock based compensation
|
- | - | 230,770 | - | - | - | - | 230,770 | ||||||||||||||||||||||||
Net loss
|
- | - | - | (3,273,442 | ) | - | - | - | (3,273,442 | ) | ||||||||||||||||||||||
Balances at, December 31, 2004
|
7,628,166 | 76,281 | 7,214,331 | (7,854,783 | ) | - | - | - | (564,171 | ) | ||||||||||||||||||||||
Stock split (5 for 1)
|
30,512,664 | (72,467 | ) | 72,467 | - | - | - | - | - | |||||||||||||||||||||||
Common stock issued in connection with merger
|
3,397,802 | 340 | (340 | ) | - | - | - | - | - | |||||||||||||||||||||||
Common stock issued for cash
|
4,175,000 | 417 | 8,349,565 | - | - | - | - | 8,349,982 | ||||||||||||||||||||||||
Common stock issued on conversion of convertible debt
|
650,000 | 65 | 1,299,935 | - | - | - | - | 1,300,000 | ||||||||||||||||||||||||
Exercise of stock options
|
40,000 | 4 | 9,596 | - | - | - | - | 9,600 | ||||||||||||||||||||||||
Common stock issued in exchange for services
|
7,000 | 1 | 21,876 | - | - | - | - | 21,877 | ||||||||||||||||||||||||
Beneficial conversion feature
|
- | - | 1,625,000 | - | - | - | - | 1,625,000 | ||||||||||||||||||||||||
Stock based compensation
|
- | - | 436,748 | - | - | - | - | 436,748 | ||||||||||||||||||||||||
Net loss
|
- | - | - | (6,349,540 | ) | - | - | - | (6,349,540 | ) | ||||||||||||||||||||||
Balances at, December 31, 2005
|
46,410,632 | 4,641 | 19,029,178 | (14,204,323 | ) | - | - | - | 4,829,496 |
Accumulated
|
||||||||||||||||||||||||||||||||
Deficit
|
Accumulated
|
Total
|
||||||||||||||||||||||||||||||
Common Stock
|
Additional
|
During the
|
Treasury Stock
|
Other
|
Stockholders’
|
|||||||||||||||||||||||||||
Number of
|
Paid-in
|
Development
|
Number of
|
Comprehensive
|
Equity
|
|||||||||||||||||||||||||||
shares
|
Amount
|
Capital
|
Stage
|
shares
|
Amount
|
Loss
|
(Deficit)
|
|||||||||||||||||||||||||
Balances at, December 31, 2005
|
46,410,632 | 4,641 | 19,029,178 | (14,204,323 | ) | - | - | - | 4,829,496 | |||||||||||||||||||||||
Exercise of stock options
|
61,705 | 6 | 14,802 | - | - | - | - | 14,808 | ||||||||||||||||||||||||
Common stock issued on conversion of convertible debt
|
3,850,000 | 385 | 3,849,615 | - | - | - | - | 3,850,000 | ||||||||||||||||||||||||
Purchase of treasury stock
|
- | - | - | - | 14,205 | (28,410 | ) | - | (28,410 | ) | ||||||||||||||||||||||
Stock based compensation
|
- | - | 1,033,956 | - | - | - | - | 1,033,956 | ||||||||||||||||||||||||
Net loss
|
- | - | - | (6,486,003 | ) | - | - | - | (6,486,003 | ) | ||||||||||||||||||||||
Balances at December 31, 2006
|
50,322,337 | 5,032 | 23,927,551 | (20,690,326 | ) | 14,205 | (28,410 | ) | - | 3,213,847 | ||||||||||||||||||||||
Common stock issued, as restated
|
4,857,159 | 486 | 1,144,219 | - | - | - | - | 1,144,705 | ||||||||||||||||||||||||
Stock options exercised
|
127,500 | 12 | 59,988 | - | - | - | - | 60,000 | ||||||||||||||||||||||||
Stock based compensation
|
- | - | 1,121,646 | - | - | - | - | 1,121,646 | ||||||||||||||||||||||||
Stock issuance costs
|
- | - | (139,674 | ) | - | - | - | - | (139,674 | ) | ||||||||||||||||||||||
Net loss, as restated
|
- | - | - | (4,442,331 | ) | - | - | - | (4,442,331 | ) | ||||||||||||||||||||||
Balances at December 31, 2007, as restated
|
55,306,996 | 5,530 | 26,113,730 | (25,132,657 | ) | 14,205 | (28,410 | ) | - | 958,193 | ||||||||||||||||||||||
Common stock issued, as restated
|
642,858 | 65 | 155,450 | - | - | - | - | 155,515 | ||||||||||||||||||||||||
Stock options exercised
|
90,000 | 9 | 31,191 | - | - | - | - | 31,200 | ||||||||||||||||||||||||
Stock based compensation
|
- | - | 484,684 | - | - | - | - | 484,684 | ||||||||||||||||||||||||
Net loss, as restated
|
- | - | - | (3,681,801 | ) | - | - | - | (3,681,801 | ) | ||||||||||||||||||||||
Unrealized loss on securities available-for-sale
|
- | - | - | - | - | - | (550,480 | ) | (550,480 | ) | ||||||||||||||||||||||
Total Comprehensive Loss
|
(4,232,281 | ) | ||||||||||||||||||||||||||||||
Balances at December 31, 2008
|
56,039,854 | 5,604 | 26,785,055 | (28,814,458 | ) | 14,205 | (28,410 | ) | (550,480 | ) | (2,602,689 | ) |
Accumulated
|
||||||||||||||||||||||||||||||||
Deficit
|
Accumulated
|
|||||||||||||||||||||||||||||||
Common Stock
|
Additional
|
During the
|
Treasury Stock
|
Other
|
||||||||||||||||||||||||||||
Number of
|
Paid-in
|
Development
|
Number of
|
Comprehensive
|
Equity
|
|||||||||||||||||||||||||||
shares
|
Amount
|
Capital
|
Stage
|
shares
|
Amount
|
Loss
|
(Deficit)
|
|||||||||||||||||||||||||
Balances at December 31, 2008
|
56,039,854 | 5,604 | 26,785,055 | (28,814,458 | ) | 14,205 | (28,410 | ) | (550,480 | ) | (2,602,689 | ) | ||||||||||||||||||||
Issuance of common stock and units
|
15,883,847 | 1,588 | 9,996,015 | - | - | - | - | 9,997,603 | ||||||||||||||||||||||||
Stock options exercised
|
15,000 | 2 | 3,600 | - | - | - | - | 3,602 | ||||||||||||||||||||||||
Stock issuance costs
|
- | - | (641,018 | ) | - | - | - | - | (641,018 | ) | ||||||||||||||||||||||
Stock based compensation
|
- | - | 497,531 | - | - | - | - | 497,531 | ||||||||||||||||||||||||
Net loss
|
- | - | - | (2,903,098 | ) | - | - | - | (2,903,098 | ) | ||||||||||||||||||||||
–Reversal of unrealized loss on securities available-for-sale
|
- | - | - | - | - | - | 550,480 | 550,480 | ||||||||||||||||||||||||
Total Comprehensive Loss
|
(2,352,618 | ) | ||||||||||||||||||||||||||||||
Balances at December 31,
2009
|
71,938,701 | 7,194 | 36,641,183 | (31,717,556 | ) | 14,205 | (28,410 | ) | - | 4,902,411 | ||||||||||||||||||||||
Issuance of common stock and units
|
6,666,667 | 667 | 8,198,534 | - | - | - | - | 8,199,201 | ||||||||||||||||||||||||
Stock issuance costs
|
- | - | (681,773 | ) | - | - | - | - | (681,773 | ) | ||||||||||||||||||||||
Common stock issued in exchange for services
|
1,700,000 | 170 | 2,107,830 | - | - | - | - | 2,108,000 | ||||||||||||||||||||||||
Stock options exercised
|
155,500 | 16 | 107,224 | - | - | - | - | 107,240 | ||||||||||||||||||||||||
Stock warrants exercised
|
3,714,186 | 371 | 9,199,797 | - | - | - | - | 9,200,168 | ||||||||||||||||||||||||
Stock based compensation
|
- | - | 584,657 | - | - | - | - | 584,657 | ||||||||||||||||||||||||
Net loss
|
- | - | - | (14,022,107 | ) | - | - | - | (14,022,107 | ) | ||||||||||||||||||||||
Unrealized loss on securities available-for -sale
|
- | - | - | - | - | - | (2,340 | ) | (2,340 | ) | ||||||||||||||||||||||
Total Comprehensive Loss
|
(14,024,447 | ) | ||||||||||||||||||||||||||||||
Balances at December 31,
2010
|
84,175,054 | 8,418 | 56,157,452 | (45,739,663 | ) | 14,205 | (28,410 | ) | (2,340 | ) | 10,395,457 | |||||||||||||||||||||
Issuance of common stock and units
|
10,667,848 | 1,067 | 11,122,265 | - | - | - | 11,123,332 | |||||||||||||||||||||||||
Stock issuance costs
|
- | - | (729,727 | ) | - | - | - | (729,727 | ) | |||||||||||||||||||||||
Stock options exercised
|
183,000 | 18 | 59,222 | - | - | - | 59,240 | |||||||||||||||||||||||||
Stock warrants exercised
|
333,959 | 33 | 561,798 | - | - | - | 561,831 | |||||||||||||||||||||||||
Stock based compensation
|
- | - | 638,607 | - | - | - | 638,607 | |||||||||||||||||||||||||
Net loss
|
- | - | (11,344,950 | ) | - | - | - | (11,344,950 | ) | |||||||||||||||||||||||
Reversal of unrealized loss on securities available-for-sale
|
- | - | - | - | - | - | 2,340 | 2,340 | ||||||||||||||||||||||||
Total Comprehensive Loss
|
(11,342,610 | ) | ||||||||||||||||||||||||||||||
Balances at December 31, 2011
|
95,359,861 | $ | 9,536 | $ | 67,809,617 | $ | (57,084,613 | ) | 14,205 | $ | (28,410 | ) | $ | - | $ | 10,706,130 |
For the Year Ended December 31,
|
Cumulative From
March 19, 2001
(Inception) to
|
|||||||||||||||
December 31,
|
||||||||||||||||
Cash Flows from Operating Activities:
|
2011
|
2010
|
2009
|
2011
|
||||||||||||
Net loss
|
$ | (11,344,950 | ) | $ | (14,022,107 | ) | $ | (2,903,098 | ) | $ | (57,084,613 | ) | ||||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||||||||||
Beneficial conversion feature
|
- | - | - | 1,625,000 | ||||||||||||
Compensatory stock
|
- | 2,108,000 | - | 2,129,877 | ||||||||||||
Depreciation and amortization
|
45,070 | 50,659 | 41,604 | 640,537 | ||||||||||||
Stock based compensation
|
638,607 | 584,657 | 497,531 | 5,577,629 | ||||||||||||
Amortization of deferred research and development arrangement
|
(75,000 | ) | (75,000 | ) | (75,000 | ) | (675,000 | ) | ||||||||
Note receivable
|
28,023 | (46,705 | ) | - | (18,682 | ) | ||||||||||
Realized loss (gain) on marketable securities
|
3,960 | - | (11,025 | ) | 13,301 | |||||||||||
Amortization of deferred lease incentive
|
(20,000 | ) | (20,000 | ) | (10,000 | ) | (50,000 | ) | ||||||||
Unrealized (gain) loss on fair value of warrants
|
(4,778,450 | ) | 3,823,146 | (1,793,101 | ) | (3,676,105 | ) | |||||||||
Unrealized gain on fair value of put feature on common stock
|
- | (97,713 | ) | (1,915,179 | ) | (2,315,539 | ) | |||||||||
Financing expense
|
97,667 | 180,080 | 223,950 | 640,023 | ||||||||||||
Deferred lease expenses
|
(8,729 | ) | 24,616 | 38,501 | 54,388 | |||||||||||
Loss on impairment of intangible assets
|
- | - | 286,132 | 286,132 | ||||||||||||
Changes in assets and liabilities:
|
||||||||||||||||
Prepaid expenses and other current assets
|
373,478 | (385,714 | ) | 45,830 | (333,171 | ) | ||||||||||
Research tax credit receivable
|
145,513 | (145,513 | ) | - | - | |||||||||||
Accounts payable and accrued expenses
|
(635,495 | ) | 1,034,996 | 427,010 | 1,185,405 | |||||||||||
Net Cash Used in Operating Activities
|
(15,530,306 | ) | (6,986,598 | ) | (5,146,845 | ) | (52,000,818 | ) |
For the Year Ended December 31,
|
Cumulative From
March 19, 2001
(Inception) to
December 31,
|
|||||||||||||||
2011
|
2010
|
2009
|
2011
|
|||||||||||||
Cash Flows from Investing Activities:
|
||||||||||||||||
Restricted cash equivalents
|
(1,029,872 | ) | 1,624,167 | (2,026,060 | ) | (1,431,765 | ) | |||||||||
Purchase of equipment
|
(16,047 | ) | (5,246 | ) | (18,370 | ) | (564,995 | ) | ||||||||
Purchase of marketable securities
|
(8,000,000 | ) | (2,353,960 | ) | (1,371,824 | ) | (21,123,960 | ) | ||||||||
Proceeds from sales of marketable securities
|
8,500,000 | 75,000 | 4,758,079 | 19,160,659 | ||||||||||||
Payment of licensing fees
|
- | - | - | (356,216 | ) | |||||||||||
Net Cash (Used in) Provided by Investing Activities
|
(545,919 | ) | (660,039 | ) | 1,341,825 | (4,316,277 | ) | |||||||||
Cash Flows from Financing Activities:
|
||||||||||||||||
Issuance of common stock and units, net of issuance costs
|
13,220,273 | 9,318,228 | 10,730,320 | 55,805,574 | ||||||||||||
Proceeds from exercise of stock options
|
59,240 | 107,240 | 3,602 | 170,082 | ||||||||||||
Proceeds from exercise of stock warrants
|
317,961 | 3,263,376 | - | 3,581,337 | ||||||||||||
Proceeds from long-term debt
|
- | - | - | 5,150,000 | ||||||||||||
Proceeds from research contribution
|
- | - | - | 1,500,000 | ||||||||||||
Purchase of treasury stock
|
- | - | - | (28,410 | ) | |||||||||||
Net Cash Provided by Financing Activities
|
13,597,474 | 12,688,844 | 10,733,922 | 66,178,583 | ||||||||||||
Net (Decrease) Increase in Cash and Cash Equivalents
|
(2,478,751 | ) | 5,042,207 | 6,928,902 | 9,861,488 | |||||||||||
Cash and Cash Equivalents - beginning of period
|
12,340,239 | 7,298,032 | 369,130 | - | ||||||||||||
Cash and Cash Equivalents - end of period
|
$ | 9,861,488 | $ | 12,340,239 | $ | 7,298,032 | $ | 9,861,488 |
For the Year Ended December 31,
|
Cumulative From
March 19, 2001
(Inception) to
December 31,
|
|||||||||||||||
2011
|
2010
|
2009
|
2011
|
|||||||||||||
Supplemental Cash Flow Information
|
|
|
||||||||||||||
Interest paid
|
$ | - | $ | - | $ | - | $ | 301,147 | ||||||||
Non-cash financing and investing activities:
|
||||||||||||||||
Warrants issued
|
$ | 2,924,333 | $ | 1,980,880 | $ | 4,565,821 | $ | 11,054,427 | ||||||||
Put feature on common stock issued
|
$ | - | $ | - | $ | - | $ | 4,954,738 | ||||||||
Dilutive issuances of common stock
|
$ | - | $ | - | $ | 2,639,199 | $ | 2,639,199 | ||||||||
Warrant liability extinguishment from exercise of warrants
|
$ | 243,868 | $ | 5,936,792 | $ | - | $ | 6,180,660 | ||||||||
Leasehold improvement incentive
|
$ | - | $ | - | $ | 100,000 | $ | 100,000 | ||||||||
Settlement of lawsuit
|
$ | - | $ | 43,953 | $ | - | $ | 43,953 |
1.
|
Operations and Organization
|
2.
|
Prior Period Effect of 2009 Restatement
|
For the Year Ended December 31,
|
||||||||||||
2008
|
2007
|
Total
|
||||||||||
Common stock issued-adjustment to Additional paid in capital
|
||||||||||||
As originally reported
|
$ | 899,936 | $ | 6,799,538 | ||||||||
Effect of restatement
|
(744,486 | ) | (5,655,319 | ) | (6,399,805 | ) | ||||||
As restated
|
155,450 | 1,144,219 | ||||||||||
Net loss-adjustment to Accumulated deficit during the development stage
|
||||||||||||
As originally reported
|
(4,912,148 | ) | (4,304,005 | ) | ||||||||
Effect of restatement
|
1,230,347 | (138,326 | ) | 1,092,021 | ||||||||
As restated
|
(3,681,801 | ) | (4,442,331 | ) |
3.
|
Summary of Significant Accounting Policies
|
a)
|
Cash and Cash Equivalents
|
b)
|
Marketable Securities
|
c)
|
Equipment
|
Life
|
Depreciation Method
|
||
Furniture and fixtures
|
7 years
|
straight line
|
|
Office equipment
|
5 years
|
straight line
|
|
Lab equipment
|
5-7 years
|
straight line
|
|
Computer equipment
|
5 years
|
straight line
|
|
Leasehold improvements
|
3-5 years
|
straight line
|
d)
|
Research and Development
|
3.
|
Summary of Significant Accounting Policies (cont’d)
|
e)
|
Use of Estimates
|
f)
|
Fair Value of Financial Instruments
|
g)
|
Income Taxes
|
3.
|
Summary of Significant Accounting Policies (cont’d)
|
h)
|
Loss Per Share
|
Year Ended December 31
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
Stock Options
|
7,646,795 | 8,076,795 | 7,715,795 | |||||||||
Warrants
|
8,676,142 | 5,624,583 | 8,575,243 |
i)
|
Stock-Based Compensation
|
j)
|
Impairment of Long-Lived Assets
|
3.
|
Summary of Significant Accounting Policies (cont’d)
|
k)
|
Concentration of Credit Risk
|
l)
|
Reclassification
|
m)
|
Recent Accounting Pronouncements Affecting the Company
|
4.
|
Marketable Securities
|
Cost
|
Gross Unrealized
|
Fair
|
||||||||||
Securities available-for-sale
|
Basis
|
Losses
|
Value
|
|||||||||
December 31, 2011:
|
||||||||||||
State and municipal obligations
|
$ | 1,950,000 | $ | - | $ | 1,950,000 | ||||||
December 31, 2010:
|
||||||||||||
State and municipal obligations
|
$ | 2,453,960 | $ | (2,340 | ) | $ | 2,451,620 |
Cost
|
Fair
|
|||||||
Maturity
|
Basis
|
Value
|
||||||
10 years or more
|
$ | 1,950,000 | $ | 1,950,000 |
5.
|
Prepaid Expenses and Other Current Assets
|
December 31,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Deposits on contracts
|
$ | 163,317 | $ | 564,074 | ||||
Other assets
|
169,854 | 142,575 | ||||||
$ | 333,171 | $ | 706,649 |
6.
|
Note Receivable
|
Expected
|
||||
Principal Amortization
|
Payment
|
|||
Within 1 year
|
$ | 18,682 |
7.
|
Equipment, Net
|
December 31,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Furniture and fixtures
|
$ | 34,200 | $ | 32,169 | ||||
Office equipment
|
81,074 | 77,032 | ||||||
Lab and computer equipment
|
430,261 | 429,415 | ||||||
Leasehold improvements
|
119,841 | 110,713 | ||||||
665,376 | 649,329 | |||||||
Less Accumulated depreciation
|
(570,834 | ) | (525,764 | ) | ||||
Net carrying amount
|
$ | 94,542 | $ | 123,565 |
8.
|
Accounts Payable and Accrued Expenses
|
December 31,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Trade payables
|
$ | 555,613 | $ | 489,527 | ||||
Accrued expenses
|
50,401 | 18,466 | ||||||
Accrued research and development contract costs
|
449,775 | 1,239,233 | ||||||
Payroll liabilities
|
129,616 | 73,674 | ||||||
$ | 1,185,405 | $ | 1,820,900 |
9.
|
Deferred Research and Development Arrangement
|
10.
|
Other Liabilities
|
December 31,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Deferred lease incentive
|
$ | 100,000 | $ | 100,000 | ||||
Less accumulated amortization
|
(50,000 | ) | (30,000 | ) | ||||
Balance
|
$ | 50,000 | $ | 70,000 |
11.
|
Common Stock
|
a)
|
On May 10, 2001 the Company issued 3,600,000 shares of common stock to the Company’s founders for $1.
|
b)
|
On August 10, 2001 the Company issued:
|
i)
|
1,208,332 shares of common stock to the directors of the Company for cash of $1,450,000.
|
ii)
|
958,334 shares of common stock to Rexgene for cash of $550,000.
|
iii)
|
360,000 shares of common stock in a private placement to individual investors for cash of $1,080,000.
|
c)
|
On October 10, 2001 the Company issued 400,000 shares of common stock to Chong Kun Dang Pharmaceutical Corp. (“CKD”) for cash of $479,991 and 400,000 shares of common stock to an individual investor for cash of $479,991.
|
d)
|
On October 10, 2001 the Company issued 200,000 shares of common stock to CKD for cash of $479,985.
|
e)
|
Since inception, the Company’s founders have transferred 800,000 shares of the common stock described in a) to officers and directors of the Company.
|
f)
|
In July 2003, the shareholders described in b)(iii) and e) transferred an aggregate of 1,268,332 shares of common stock to a voting trust. The trust allows for the unified voting of the stock by the trustees. The appointed trustees are senior management of the Company who, together with their existing shares, control a majority of the voting power of the Company.
|
g)
|
On August 20, 2003 the Company issued 500,000 shares of common stock to KT&G Corporation for cash of $2,000,000.
|
h)
|
On October 29, 2004, an option holder exercised options to purchase shares of the Company’s common stock for cash of $1,800 and the Company issued an aggregate of 1,500 shares.
|
11.
|
Common Stock (cont’d)
|
i)
|
Pursuant to the agreement and plan of merger which occurred on May 13, 2005, (i) each share of the issued and outstanding common stock of Rexahn, Corp (“Rexahn”) (other than dissenting shares) was converted into the right to receive five shares of Rexahn Pharmaceuticals common stock; (ii) each issued, outstanding and unexercised option to purchase a share of Rexahn common stock was converted into an option to purchase five shares of Rexahn Pharmaceuticals common stock and (iii) the par value of Rexahn’s common stock was adjusted to reflect the par value of Corporate Road Show Com Inc. (“CRS”) common stock. In the acquisition merger, 289,780,000 CRS pre-reverse stock split shares were converted into 2,897,802 post-reverse stock split Rexahn Pharmaceuticals shares, and an additional 500,000 post-reverse stock split Rexahn Pharmaceuticals shares were issued to a former executive of CRS. All shares and earnings per share information have been retroactively restated in these financial statements.
|
j)
|
On August 8, 2005, the Company issued, in a transaction exempt from registration under the Securities Act, 4,175,000 shares of common stock at a purchase price of $2.00 per share.
|
k)
|
On October 3, 2005, the Company issued 7,000 shares of common stock for $21,877 and $7,500 cash in exchange for services.
|
l)
|
On December 2, 2005, the holders of a convertible note, representing $1,300,000 aggregate principal amount, exercised their option to convert the entire principal amount of the note into the Company’s common stock. Based on a $2.00 per share conversion price, the holders received an aggregate of 650,000 shares.
|
m)
|
On December 27, 2005, option holders exercised options to purchase shares of the Company’s common stock for cash of $9,600 and the Company issued an aggregate of 40,000 shares.
|
n)
|
On February 22, 2006, an option holder exercised options to purchase shares of the Company’s common stock for cash of $1,200 and the Company issued an aggregate of 5,000 shares.
|
o)
|
On April 12, 2006, an option holder exercised options to purchase shares of the Company’s common stock for cash of $3,409 and the Company issued an aggregate of 14,205 shares. On the same date, the Company agreed to repurchase common stock from the option holder based on the then market price for treasury in exchange for the aggregate purchase price of $28,410 in cash.
|
p)
|
On May 13, 2006, holders of the $3,850,000 convertible notes issued on February 28, 2005, exercised their rights to convert the entire principal amount of the notes into shares of the Company’s common stock. Based on a $1.00 per share conversion price, the Company issued 3,850,000 shares of common stock in connection with the conversion.
|
q)
|
On October 9, 2006, an option holder exercised options to purchase shares of the Company’s common stock for cash of $2,400 and the Company issued an aggregate of 10,000 shares.
|
r)
|
On November 19, 2006, an option holder exercised options to purchase shares of the Company’s common stock for cash of $1,800 and the Company issued an aggregate of 7,500 shares.
|
11.
|
Common Stock (cont’d)
|
s)
|
On December 19, 2006, an option holder exercised options to purchase shares of the Company’s common stock for cash of $6,000 and the Company issued an aggregate of 25,000 shares.
|
t)
|
On April 18, 2007, an option holder exercised options to purchase shares of the Company’s common stock for cash of $14,400 and the Company issued an aggregate of 18,000 shares.
|
u)
|
On July 23, 2007, an option holder exercised options to purchase shares of the Company’s common stock for cash of $12,000 and the Company issued an aggregate of 15,000 shares.
|
v)
|
On September 27, 2007, an option holder exercised options to purchase shares of the Company’s common stock for cash of $15,600 and the Company issued an aggregate of 19,500 shares.
|
w)
|
On December 18, 2007, the Company issued 4,857,159 units at a price $1.40 per share for total gross proceeds of $6,800,023. Investors also were issued one warrant for every five shares purchased. One warrant will entitle the holder to purchase an additional share of common stock at a purchase price of $1.80 at any time over a period of three years from the date of the closing. The Company has recorded the warrants as liabilities at fair value as discussed in footnote 13. Private placement closing costs of $139,675 were recorded as a reduction of the issuance proceeds. Private placement costs also consist of 107,144 warrants, valued at $138,326, and were recorded as a financing expense. The Company extended anti-dilutive protection to the investors. The anti-dilution protection provision is structured in a way that is designed to protect a holder’s position from being diluted and contains a price protection based on a mathematical calculation, and is recorded as a liability at fair value, as discussed in footnote 14. The Company revalues these liabilities each reporting period, with the unrealized gain (loss) recorded as other income (expense).
|
Gross Proceeds:
|
$ | 6,800,023 | ||
Allocated to liabilities:
|
||||
Warrant liabilities
|
1,392,476 | |||
Put feature on common stock
|
4,401,169 | |||
Total allocated to liabilities
|
5,793,645 | |||
Allocated to equity:
|
||||
Common stock and additional paid-in capital
|
1,144,704 | |||
Allocated to expense:
|
||||
Financing expense
|
(138,326 | ) | ||
Total allocated gross proceeds:
|
$ | 6,800,023 |
11.
|
Common Stock (cont’d)
|
x)
|
On December 27, 2007, an option holder exercised options to purchase shares of the Company’s common stock for cash of $18,000 and the Company issued an aggregate of 75,000 shares.
|
y)
|
On March 20, 2008, the Company issued 642,858 units consisting of one share of the Company’s common stock and one warrant for every five common shares purchased in a private placement at a price of $1.40 per unit for total gross proceeds of $900,001. One warrant will entitle the holder to purchase an additional share of common stock at a price of $1.80 at any time over a period of three years from the date of the private placement, and is recorded as a liability at fair value. The Company extended anti-dilution protection to investors, and the provision is structured in a way that is designed to protect the holder’s position from being diluted and contains a price based on a mathematical computation.
|
Gross Proceeds:
|
$ | 900,001 | ||
Allocated to liabilities:
|
||||
Warrant liabilities
|
190,917 | |||
Put feature on common stock
|
553,569 | |||
Total allocated to liabilities
|
744,486 | |||
Allocated to common stock and additional paid-in capital
|
155,515 | |||
Total allocated gross proceeds:
|
$ | 900,001 |
z)
|
On May 30, 2008, an option holder exercised options to purchase shares of the Company’s common stock for cash of $7,200 and the Company issued an aggregate of 30,000 shares.
|
aa)
|
On June 2, 2008, an option holder exercised options to purchase shares of the Company’s common stock for cash of $12,000 and the Company issued an aggregate of 50,000 shares.
|
ab)
|
On June 30, 2008, an option holder exercised options to purchase shares of the Company’s common stock for cash of $12,000 and the Company issued an aggregate of 10,000 shares.
|
11.
|
Common Stock (cont’d)
|
ac)
|
On June 5, 2009 the Company closed on a purchase agreement to issue 2,857,143 shares of common stock at a price of $1.05 per share to an institutional investor for total gross proceeds of $3,000,000 and incurred $289,090 of stock issuance costs. The investor was also issued:
|
|
1)
|
Series I warrants to purchase 2,222,222 shares of common stock at a purchase price of $1.05 per share at any time before September 3, 2009;
|
|
2)
|
Series II warrants to purchase 1,866,666 shares of common stock at a purchase price of $1.25 per share at any time from December 3, 2009 to June 5, 2012; and
|
|
3)
|
Series III warrants to purchase 1,555,555 shares of common stock at a purchase price of $1.50 per share at any time from December 3, 2009 to June 5, 2014.
|
Gross Proceeds:
|
$ | 3,000,000 | ||
Allocated to liabilities:
|
||||
Warrant liabilities
|
3,451,194 | |||
Allocated to equity:
|
||||
Common stock and additional paid-in capital
|
- | |||
Allocated to expense:
|
||||
Financing expense
|
(122,257 | ) | ||
Derivative loss at inception
|
(328,937 | ) | ||
Total allocated to expense
|
(451,194 | ) | ||
Total allocated gross proceeds:
|
$ | 3,000,000 |
ad)
|
On June 9, 2009, the Company issued 1,833,341 shares of common stock and 862,246 warrants to purchase common stock at a purchase price of $1.05 per share to existing stockholders pursuant to the anti-dilution protection provisions of the private placements transacted on December 18, 2007 and March 20, 2008. The fair value of the additional warrants issued was approximately $422,300.
|
11.
|
Common Stock (cont’d)
|
ae)
|
On September 4, 2009, an option holder exercised options to purchase shares of the Company’s common stock for cash of $3,600 and the Company issued an aggregate of 15,000 shares.
|
af)
|
On September 21, 2009, the Company issued 3,102,837 shares of common stock at a purchase price of $1.13 per share to an institutional investor for net proceeds of $3,371,340, which includes $128,659 of stock issuance costs.
|
ag)
|
On October 23, 2009, the Company closed on a purchase agreement to issue 6,072,383 shares of common stock at a price of $0.82 per share to five institutional investors for gross proceeds of $5,000,000, which includes $351,928 of stock issuance costs. The investors were also issued warrants to purchase 2,125,334 shares of common stock at a purchase price of $1.00 per share, exercisable on or after the date of delivery until the five-year anniversary, and were recorded as liabilities at fair value. The closing costs included 245,932 warrants valued at $101,693 and were recorded as a financing expense.
|
Gross Proceeds:
|
$ | 5,000,000 | ||
Allocated to liabilities:
|
||||
Warrant liabilities
|
1,114,627 | |||
Allocated to equity:
|
||||
Common stock and additional paid-in capital
|
3,987,066 | |||
Allocated to expense:
|
||||
Financing expense
|
(101,693 | ) | ||
Total allocated gross proceeds:
|
$ | 5,000,000 |
ah)
|
On October 23, 2009, the Company issued 2,018,143 shares of common stock and 569,502 warrants to purchase common stock at a purchase price of $0.82 per share to existing stockholders pursuant to anti-dilution protection provisions of the private placements transacted on December 24, 2007 and March 20, 2008. The fair value of the additional warrants issued was of approximately $476,200.
|
11.
|
Common Stock (cont’d)
|
ai)
|
On February 12, 2010, the Company entered into two consulting agreements pursuant to which the Company issued 300,000 shares of common stock upon the execution of the agreements. Upon the extension of the term, 200,000 shares of common stock for each month will be issued until the termination of services.
|
Date of Issuance
|
Number of
Shares Issued
|
Market Value
Per Share
|
Total Market Value of
Share Issuance
|
|||||||||
February 12, 2010
|
300,000 | $ | 1.22 | $ | 366,000 | |||||||
May 24, 2010
|
200,000 | 1.40 | 280,000 | |||||||||
June 15, 2010
|
200,000 | 1.15 | 230,000 | |||||||||
August 2, 2010
|
400,000 | 1.37 | 548,000 | |||||||||
September 21, 2010
|
200,000 | 1.20 | 240,000 | |||||||||
October 21, 2010
|
200,000 | 1.16 | 232,000 | |||||||||
November 11, 2010
|
200,000 | 1.06 | 212,000 | |||||||||
Total
|
1,700,000 | $ | 2,108,000 |
aj)
|
In March 2010, warrant holders exercised warrants to purchase shares of the Company’s common stock for cash of $1,297,001 and the Company issued an aggregate of 1,197,001 shares.
|
ak)
|
In March 2010, option holders exercised options to purchase shares of the Company’s common stock for cash of $21,240 and the Company issued an aggregate of 48,000 shares.
|
al)
|
In April 2010, warrant holders exercised their warrants to purchase shares of the Company’s common stock for cash of $1,966,375 and the Company issued an aggregate of 1,595,825 shares.
|
am)
|
On April 20, 2010, an option holder exercised options to purchase shares of the Company’s common stock for cash of $86,000 and the Company issued an aggregate of 107,500 shares.
|
an)
|
In May 2010, warrant holders exercised 890,051 cashless warrants to obtain shares of the Company’s common stock and the Company issued an aggregate of 547,674 shares.
|
11.
|
Common Stock(cont’d)
|
ao)
|
On June 30, 2010, the Company entered into a purchase agreement to issue 6,666,667 shares of common stock at a price of $1.50 per share to investors for gross proceeds of $10,000,000, which includes $681,773 of stock issuance costs. The investors were also issued warrants to purchase 2,000,000 shares of common stock at an exercise price of $1.90 per share. The warrants became immediately exercisable on the date of delivery until the four-year anniversary of the date of issuance. These warrants were valued at $1,800,800 and recorded as warrant liabilities. The closing costs included 200,000 warrants valued at $180,080 and were recorded as a financing expense.
|
Gross Proceeds:
|
$ | 10,000,000 | ||
Allocated to liabilities:
|
||||
Warrant liabilities
|
1,980,880 | |||
Allocated to equity:
|
||||
Common stock and additional paid-in capital
|
8,199,200 | |||
Allocated to expense:
|
||||
Financing expense
|
(180,080 | ) | ||
Total allocated gross proceeds:
|
$ | 10,000,000 |
ap)
|
In November 2010, warrant holders exercised 936,883 cashless warrants to obtain shares of the Company’s common stock and the Company issued an aggregate of 247,491 shares.
|
aq)
|
In December 2010, warrant holders exercised 530,900 cashless warrants to obtain shares of the Company’s common stock and the Company issued an aggregate of 126,195 shares.
|
ar)
|
On January 19, 2011, the Company issued 2,334,515 shares of common stock at a purchase price of $1.69 per share to an institutional investor for net proceeds of $3,926,397, which includes $23,603 of stock issuance costs.
|
as)
|
On February 15, 2011, a warrant holder exercised warrants to purchase shares of the Company’s common stock for cash of $215,104 and the Company issued 209,042 shares.
|
at)
|
On February 28, 2011, an option holder exercised options to purchase shares of the Company’s common stock for cash of $6,000 and the Company issued 25,000 shares.
|
au)
|
On March 11, 2011, an option holder exercised options to purchase shares of the Company’s common stock for cash of $12,000 and the Company issued 50,000 shares.
|
av)
|
On March 28, 2011, warrant holders exercised their warrants to purchase shares of the Company’s common stock for cash of $102,857 and the Company issued 124,917 shares.
|
11.
|
Common Stock (cont’d)
|
aw)
|
On March 31, 2011, the Company closed on a purchase agreement to issue 8,333,333 shares of common stock at a price of $1.20 per share to five institutional investors for gross proceeds of $10,000,000, which includes $706,124 of cash stock issuance costs. The investors were also issued warrants to purchase 3,333,333 shares of common stock at a purchase price of $1.50 per share, exercisable on or after six months after the closing date until the five-year anniversary of the initial exercise date, and were recorded as liabilities at fair value. The closing costs included 208,333 warrants valued at $97,667 and were recorded as a financing expense.
|
Gross Proceeds:
|
$ | 10,000,000 | ||
Allocated to liabilities:
|
||||
Warrant liabilities
|
2,924,333 | |||
Allocated to equity:
|
||||
Common stock and additional paid-in capital
|
7,173,334 | |||
Allocated to expense:
|
||||
Financing expense
|
(97,667 | ) | ||
Total allocated gross proceeds:
|
$ | 10,000,000 |
ax)
|
In September 2011, an option holder exercised options to purchase shares of the Company’s common stock for cash of $22,040 and the Company issued 28,000 shares.
|
ay)
|
In October 2011, an option holder exercised options to purchase shares of the Company’s common stock for cash of $19,200 and the Company issued 80,000 shares.
|
12.
|
Stock-Based Compensation
|
12.
|
Stock-Based Compensation (cont’d)
|
Inception
(March 19, 2001)
to
|
||||||||||||||||
Year Ended December 31,
|
December 31
|
|||||||||||||||
2011
|
2010
|
2009
|
2011
|
|||||||||||||
Statement of operations line item:
General and administrative:
|
||||||||||||||||
Payroll
|
$ | 501,884 | $ | 393,425 | $ | 443,013 | $ | 2,495,400 | ||||||||
Consulting and other professional fees
|
26,566 | 93,581 | (67,644 | ) | 786,523 | |||||||||||
Research and development:
|
||||||||||||||||
Payroll
|
95,753 | 76,941 | 122,137 | 972,049 | ||||||||||||
Consulting and other professional fees
|
14,404 | 20,710 | 25 | 1,323,657 | ||||||||||||
Total
|
$ | 638,607 | $ | 584,657 | $ | 497,531 | $ | 5,577,629 |
12.
|
Stock-Based Compensation (cont’d)
|
For the Year Ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
Black Scholes weighted average assumptions:
|
||||||||||||
Expected Dividend Yield
|
0 | % | 0 | % | 0 | % | ||||||
Expected volatility
|
96-101 | % | 103-107 | % | 100-108 | % | ||||||
Risk free interest rate
|
0.11-2.29 | % | 0.26-2.40 | % | 0.51-2.55 | % | ||||||
Expected term (in years)
|
5 Years
|
1-5 Years
|
1-5 Years
|
2011
|
2010
|
|||||||||||||||
Shares Subject
to Options
|
Weighted Avg.
Exercise Prices
|
Shares Subject
to Options
|
Weighted Avg.
Exercise Prices
|
|||||||||||||
Outstanding at
January 1
|
8,076,795 | $ | 1.01 | 7,715,795 | $ | 0.98 | ||||||||||
Granted
|
450,000 | $ | 1.28 | 725,000 | $ | 1.26 | ||||||||||
Exercised
|
(183,000 | ) | $ | 0.32 | (155,500 | ) | $ | 0.68 | ||||||||
Cancelled
|
(697,000 | ) | $ | 0.91 | (208,500 | ) | $ | 1.19 | ||||||||
Outstanding at December 31
|
7,646,795 | $ | 1.05 | 8,076,795 | $ | 1.01 |
Shares Subject
to Options
|
Weighted Avg.
Exercise Prices
|
Weighted
Average
Remaining
Contractual Term
|
Aggregate
Intrinsic
Value
|
||||||||||
Outstanding at December 31, 2011
|
7,646,795 | $ | 1.05 |
4.8 years
|
$ | 83,611 | |||||||
Exercisable at December 31, 2011
|
6,911,795 | $ | 1.02 |
4.4 years
|
$ | 83,611 | |||||||
Outstanding at December 31, 2010
|
8,076,795 | $ | 1.01 |
5.4 years
|
$ | 2,198,790 | |||||||
Exercisable at December 31, 2010
|
6,762,795 | $ | 1.00 |
4.8 years
|
$ | 2,023,980 |
12.
|
Stock-Based Compensation (cont’d)
|
2011
|
||||||||
Subject to
Options
|
Weighted
Average Fair
Value at Grant
Date
|
|||||||
Unvested at January 1, 2011
|
1,314,000 | $ | 0.76 | |||||
Granted
|
450,000 | $ | 0.95 | |||||
Vested
|
(938,000 | ) | $ | 0.70 | ||||
Cancelled
|
(91,000 | ) | $ | 0.89 | ||||
Unvested at December 31, 2011
|
735,000 | $ | 0.92 |
13.
|
Warrants
|
2011
|
2010
|
|||||||||||||||
Number of
warrants
|
Weighted average
exercise price
|
Number of
warrants
|
Weighted average
exercise price
|
|||||||||||||
Balance at January 1
|
5,624,583 | $ | 1.48 | 8,575,243 | $ | 1.10 | ||||||||||
Issued during the period
|
3,541,666 | $ | 1.50 | 2,200,000 | $ | 1.90 | ||||||||||
Exercised during the period
|
(333,959 | ) | $ | 0.95 | (5,150,660 | ) | $ | 1.01 | ||||||||
Expired during the period
|
(156,148 | ) | $ | 0.82 | - | $ | - | |||||||||
Balance at December 31
|
8,676,142 | $ | 1.53 | 5,624,583 | $ | 1.48 |
13.
|
Warrants (cont’d)
|
13.
|
Warrants (cont’d)
|
Fair Value as of:
|
||||||||||||
Fair Values:
|
December 31,
2011
|
December 31,
2010
|
Transaction
Date
|
|||||||||
December 18, 2007 financing
|
$ | - | $ | - | $ | 1,392,476 | ||||||
March 20, 2008 financing
|
- | 123,558 | 190,917 | |||||||||
June 5, 2009 financing:
|
||||||||||||
Series I warrants
|
- | - | 707,111 | |||||||||
Series II warrants
|
- | - | 1,315,626 | |||||||||
Series III warrants
|
89,756 | 751,022 | 1,306,200 | |||||||||
Warrants to placement agent
|
8,893 | 69,032 | 122,257 | |||||||||
October 23, 2009 financing:
|
||||||||||||
Warrants to institutional investors
|
129,221 | 694,377 | 1,012,934 | |||||||||
Warrants to placement agent
|
714 | 111,241 | 101,693 | |||||||||
June 30, 2010 financing
|
||||||||||||
Warrants to institutional investors
|
89,800 | 1,106,800 | 1,800,800 | |||||||||
Warrants to placement agent
|
2,320 | 110,680 | 180,080 | |||||||||
March 31, 2011 financing:
|
||||||||||||
Warrants to institutional investors
|
544,000 | - | 2,826,666 | |||||||||
Warrants to placement agent
|
4,021 | - | 97,667 | |||||||||
Total:
|
$ | 868,725 | $ | 2,966,710 | $ | 11,054,427 |
Number of Shares Indexed as of:
|
||||||||||||
Number of Shares Indexed:
|
December 31,
2011
|
December 31,
2010
|
Transaction
Date
|
|||||||||
December 18, 2007 financing
|
- | - | 1,078,579 | |||||||||
March 20, 2008 financing
|
- | 281,065 | 128,572 | |||||||||
June 5, 2009 financing:
|
||||||||||||
Series I warrants
|
- | - | 2,222,222 | |||||||||
Series II warrants
|
- | - | 1,866,666 | |||||||||
Series III warrants
|
1,555,555 | 1,555,555 | 1,555,555 | |||||||||
Warrants to placement agent
|
132,143 | 132,143 | 142,857 | |||||||||
October 23, 2009 financing:
|
||||||||||||
Warrants to institutional investors
|
1,228,333 | 1,228,333 | 2,125,334 | |||||||||
Warrants to placement agent
|
18,445 | 227,487 | 245,932 | |||||||||
June 30, 2010 financing
|
||||||||||||
Warrants to institutional investors
|
2,000,000 | 2,000,000 | 2,000,000 | |||||||||
Warrants to placement agent
|
200,000 | 200,000 | 200,000 | |||||||||
March 31, 2011 financing:
|
||||||||||||
Warrants to institutional investors
|
3,333,333 | - | 3,333,333 | |||||||||
Warrants to placement agent
|
208,333 | - | 208,333 | |||||||||
Total:
|
8,676,142 | 5,624,583 | 15,107,383 |
13.
|
Warrants (cont’d)
|
December 18, 2007 financing:
|
December 31,
2011
|
December 31,
2010
|
Transaction Date
|
|||||||||
Trading market prices
|
$ | - | $ | - | $ | 1.75 | ||||||
Estimated future volatility
|
- | - | 143 | % | ||||||||
Dividend
|
- | - | - | |||||||||
Estimated future risk-free rate
|
- | - | 3.27 | % | ||||||||
Equivalent volatility
|
- | - | 106 | % | ||||||||
Equivalent risk-free rate
|
- | - | 3.26 | % | ||||||||
Estimated additional shares to be issued upon dilutive event
|
- | - | 98,838 |
March 20, 2008 financing:
|
December 31,
2011
|
December 31,
2010
|
Transaction Date
|
|||||||||
Trading market prices
|
$ | - | $ | 1.12 | $ | 2.14 | ||||||
Estimated future volatility
|
- | 75 | % | 142 | % | |||||||
Dividend
|
- | - | - | |||||||||
Estimated future risk-free rate
|
- | 0.47 | % | 1.95 | % | |||||||
Equivalent volatility
|
- | 42 | % | 97 | % | |||||||
Equivalent risk-free rate
|
- | 0.12 | % | 1.31 | % | |||||||
Estimated additional shares to be issued upon dilutive event
|
- | 25,462 | 7,479 |
June 5, 2009 financing:
|
December 31,
2011
|
December 31,
2010
|
Transaction Date
|
|||||||||
Trading market prices
|
$ | 0.38 | $ | 1.12 | $ | 1.14 | ||||||
Estimated future volatility
|
98-100 | % | 94-100 | % | 100 | % | ||||||
Dividend
|
- | - | - | |||||||||
Estimated future risk-free rate
|
0.38 | % | 1.84-4.18 | % | 0.63-4.31 | % | ||||||
Equivalent volatility
|
80-81 | % | 72-73 | % | 103-117 | % | ||||||
Equivalent risk-free rate
|
0.14 | % | 0.52 | % | 0.20-1.44 | % |
October 23, 2009 financing:
|
December 31,
2011
|
December 31,
2010
|
Transaction Date
|
|||||||||
Trading market prices
|
$ | 0.38 | $ | 1.12 | $ | 0.69 | ||||||
Estimated future volatility
|
98-100 | % | 100 | % | 100 | % | ||||||
Dividend
|
- | - | - | |||||||||
Estimated future risk-free rate
|
$ | 0.38 | 1.84 | % | 2.63-3.80 | % | ||||||
Equivalent volatility
|
72-81 | % | 65-74 | % | 98-99% | % | ||||||
Equivalent risk-free rate
|
0.08-0.16 | % | 0.38-0.58 | % | 0.93-1.16 | % |
13.
|
Warrants (cont’d)
|
June 30, 2010 financing:
|
December 31,
2011
|
December 31,
2010
|
Transaction Date
|
|||||||||
Trading market prices
|
$ | 0.38 | $ | 1.12 | $ | 1.43 | ||||||
Estimated future volatility
|
86-100 | % | 67 | % | 100 | % | ||||||
Dividend
|
- | - | - | |||||||||
Estimated future risk-free rate
|
0.38-0.58 | % | 1.84 | % | 1.78 | % | ||||||
Equivalent volatility
|
72-79 | % | 89 | % | 98 | % | ||||||
Equivalent risk-free rate
|
0.08-0.14 | % | 0.52 | % | 0.59 | % |
March 31, 2011 financing:
|
December 31,
2011
|
December 31,
2010
|
Transaction Date
|
|||||||||
Trading market prices
|
$ | 0.38 | $ | - | $ | 1.18 | ||||||
Estimated future volatility
|
87-100 | % | - | 100 | % | |||||||
Dividend
|
- | - | - | |||||||||
Estimated future risk-free rate
|
0.38-1.54 | % | - | 1.32-3.64 | % | |||||||
Equivalent volatility
|
72-90- | % | - | 79-96 | % | |||||||
Equivalent risk-free rate
|
0.08-0.28 | % | - | 0.39-1.09 | % |
For the Year Ended December 31,
|
Cumulative
from
March 19,
2011
(Inception) to
December 31,
|
|||||||||||||||
2011
|
2010
|
2009
|
2011
|
|||||||||||||
December 18, 2007 financing
|
$ | - | $ | (510,776 | ) | $ | (243,841 | ) | $ | 50,722 | ||||||
March 20, 2008 financing
|
92,704 | (18,806 | ) | (36,196 | ) | 160,063 | ||||||||||
June 5, 2009 financing:
|
||||||||||||||||
Series I warrants
|
- | - | 707,111 | 707,111 | ||||||||||||
Series II warrants
|
- | (2,996,828 | ) | 805,653 | (2,191,175 | ) | ||||||||||
Series III warrants
|
661,266 | (191,333 | ) | 746,511 | 1,216,444 | |||||||||||
Warrants to placement agent
|
60,139 | (29,255 | ) | 68,100 | 98,984 | |||||||||||
Derivative loss at inception
|
- | - | (328,937 | ) | (328,937 | ) | ||||||||||
October 23, 2009 financing:
|
||||||||||||||||
Warrants to institutional investors
|
565,156 | (798,694 | ) | 68,011 | (165,527 | ) | ||||||||||
Warrants to placement agent
|
(102,487 | ) | (40,854 | ) | 6,689 | (136,652 | ) | |||||||||
June 30, 2010 financing
|
||||||||||||||||
Warrants to institutional investors
|
1,017,000 | 694,000 | - | 1,711,000 | ||||||||||||
Warrants to placement agent
|
108,360 | 69,400 | - | 177,760 | ||||||||||||
March 31, 2011 financing:
|
||||||||||||||||
Warrants to institutional investors
|
2,282,666 | - | - | 2,282,666 | ||||||||||||
Warrants to placement agent
|
93,646 | - | - | 93,646 | ||||||||||||
Total:
|
$ | 4,778,450 | $ | (3,823,146 | ) | $ | 1,793,101 | $ | 3,676,105 |
14.
|
Put Feature on Common Stock
|
Fair Values:
|
December 31,
2011
|
December 31,
2010
|
Transaction
Date
|
|||||||||
December 18, 2007 financing
|
$ | - | $ | - | $ | 4,401,169 | ||||||
March 20, 2008 financing
|
- | - | 553,569 | |||||||||
Total:
|
$ | - | $ | - | $ | 4,954,738 |
Number of Shares Indexed:
|
December 31,
2011
|
December 31,
2010
|
Transaction
Date
|
|||||||||
December 18, 2007 financing
|
- | - | 4,857,159 | |||||||||
March 20, 2008 financing
|
- | - | 642,858 | |||||||||
Total:
|
- | - | 5,500,017 |
14.
|
Put Feature on Common Stock (cont’d)
|
December 18, 2007 financing:
|
December 31,
2011
|
December 31,
2010
|
Transaction
Date
|
|||||||||
Trading market prices
|
$ | - | $ | - | $ | 1.75 | ||||||
Estimated future stock price
|
- | - | $ | 0.98-$1.75 | ||||||||
Estimated future volatility
|
- | - | 143 | % | ||||||||
Dividend
|
- | - | - | |||||||||
Estimated future risk-free rate
|
- | - | 3.14 | % |
March 20, 2008 financing:
|
December 31,
2011
|
December 31,
2010
|
Transaction
Date
|
|||||||||
Trading market prices
|
$ | - | $ | - | $ | 2.14 | ||||||
Estimated future stock price
|
- | - | $ | 1.36-$2.10 | ||||||||
Estimated future volatility
|
- | - | 142 | % | ||||||||
Dividend
|
- | - | - | |||||||||
Estimated future risk-free rate
|
- | - | 1.85 | % |
For the Year Ended December 31,
|
Cumulative
from
March 19,
2011
(Inception) to
December 31,
|
|||||||||||||||
2011
|
2010
|
2009
|
2011
|
|||||||||||||
December 18, 2007 financing
|
$ | - | $ | - | $ | 1,794,554 | $ | 2,148,418 | ||||||||
March 20, 2008 financing
|
- | 97,713 | 120,625 | 167,121 | ||||||||||||
Total:
|
$ | - | $ | 97,713 | $ | 1,915,179 | 2,315,539 |
15.
|
Income Taxes
|
2011
|
2010
|
|||||||
Net operating loss carry-forwards
|
$ | 21,603,700 | $ | 18,050,380 | ||||
Stock option compensation
|
1,753,400 | 1,568,000 | ||||||
Book tax differences on assets and liabilities
|
348,600 | 392,600 | ||||||
Valuation allowance
|
(23,705,700 | ) | (20,010,980 | ) | ||||
Net deferred tax assets
|
$ | - | $ | - |
16.
|
Commitments and Contingencies
|
a)
|
The Company has contracted with various vendors to provide research and development services. The terms of these agreements usually require an initial fee and monthly or periodic payments over the term of the agreement, ranging from 2 months to 36 months. The costs to be incurred are estimated and are subject to revision. As of December 31, 2011, the total estimated cost to be incurred under these agreements was approximately $19,406,124 and the Company had made payments totaling $15,103,318 under the terms of the agreements as of December 31, 2011. All of these agreements may be terminated by either party upon appropriate notice as stipulated in the respective agreements.
|
b)
|
The Company and three of its key executives entered into employment agreements. Each of these agreements was renewed on August 10, 2009 and expires on August 10, 2012. The agreements result in annual commitments for each key executive of $200,000, $350,000 and $250,000, respectively. The employment agreements were amended on September 9, 2010 and will expire on September 9, 2013.
|
c)
|
On June 22, 2009, the Company entered into a License Agreement with Korea Research Institute of Chemical Technology (“KRICT”) to acquire the rights to all intellectual properties related to Quinoxaline-Piperazine derivatives that were synthesized under a Joint Research Agreement. The initial license fee was $100,000, all of which was paid by December 31, 2009. The agreement with KRICT calls for a one-time milestone payment of $1,000,000 within 30 days after the first achievement of marketing approval of the first commercial product arising out of or in connection with the use of KRICT’s intellectual properties. As of December 31, 2011, this milestone has not yet occurred.
|
d)
|
On June 29, 2009, the Company signed a five year lease for 5,466 square feet of office space in Rockville, Maryland commencing on June 29, 2009. The lease requires annual base rents of $76,524 with increases over the next five years. Under the leasing agreement, the Company pays its allocable portion of real estate taxes and common area operating charges. Rent paid under the Company’s lease during the years ended December 31, 2011, 2010 and 2009 was $148,593, $108,418 and $38,262, respectively.
|
2012
|
$ | 158,835 | ||
2013
|
162,806 | |||
2014
|
82,408 | |||
$ | 404,049 |
16.
|
Commitments and Contingencies (cont’d)
|
e)
|
On September 21, 2009, the Company closed on a securities purchase agreement with Teva Pharmaceutical Industries Limited (“Teva”), under which Teva purchased 3,102,837 shares of our common stock for $3.5 million. Contemporaneous with the execution and delivery of this agreement, the parties executed a research and exclusive license option agreement (“RELO”) pursuant to which the Company agreed to use $2,000,000 from the gross proceeds of the issuance and sale of shares to Teva to fund a research and development program for the pre-clinical development of RX-3117. On January 19, 2011, the Company entered into a second amendment to the securities purchase agreement (the “Second Amendment”) in which Teva purchased 2,334,515 shares of the common stock of the Company for gross proceeds of $3,950,000, which the Company agreed to use for the further preclinical development of RX-3117. At December 31, 2011, the Company has proceeds remaining of $1,394,265 and has included this amount in restricted cash equivalents. The Company will be eligible to receive royalties on net sales of RX-3117 worldwide.
|
f)
|
The Company established a 401(k) plan for its employees where the Company elected to match 100% of the first 3% of the employee’s compensation plus 50% of an additional 2% of the employee’s deferral. Expense related to this matching contribution aggregated $66,162, $65,019, and $49,519 for the years ended December 31, 2011, 2010 and 2009, respectively.
|
g)
|
On June 28, 2010, the Company signed a one year renewal to use lab space commencing on July 1, 2010, and on June 22, 2011, the Company extended the lease for an additional year. The lease requires monthly rental payments of $4,554. Rent paid under the Company’s lease during the years ended December 31, 2011, 2010 and 2009 was $54,648, $54,648 and $13,662, respectively.
|
h)
|
On August 31, 2011, the Company entered into an agreement with a consultant for advisory services pertaining to the securing of grants or other funding sources for the Company. Per the terms of the agreement, the consultant will be compensated in shares of restricted common stock calculated by a formula of the funding received by the Company. As of December 31, 2011, the Company has not received funding or issued stock resulting from this agreement.
|
17.
|
Fair Value Measurements
|
|
Level 1 Inputs —
|
Unadjusted quoted prices in active markets for identical assets or liabilities that is accessible by the Company;
|
|
Level 2 Inputs —
|
Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly;
|
|
Level 3 Inputs —
|
Unobservable inputs for the asset or liability including significant assumptions of the Company and other market participants.
|
Fair Value Measurements as of December 31, 2011
|
||||||||||||||||
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
Assets:
|
||||||||||||||||
Restricted cash equivalents
|
$ | 1,431,765 | $ | 1,394,265 | $ | 37,500 | - | |||||||||
Marketable securities
|
1,950,000 | 1,950,000 | - | - | ||||||||||||
Total Assets:
|
$ | 3,381,765 | $ | 3,344,265 | $ | 37,500 | - | |||||||||
Liabilities:
|
||||||||||||||||
Warrant liabilities
|
$ | 868,725 | - | - | $ | 868,725 | ||||||||||
Total Liabilities:
|
$ | 868,725 | - | - | $ | 868,725 |
Fair Value Measurements as of December 31, 2010
|
||||||||||||||||
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
Assets:
|
||||||||||||||||
Restricted cash equivalents
|
$ | 401,893 | $ | 351,893 | $ | 50,000 | - | |||||||||
Marketable securities
|
2,451,620 | 2,451,620 | - | - | ||||||||||||
Total Assets:
|
$ | 2,853,513 | $ | 2,803,513 | $ | 50,000 | - | |||||||||
Liabilities:
|
||||||||||||||||
Warrant liabilities
|
$ | 2,966,710 | - | - | $ | 2,966,710 | ||||||||||
Total Liabilities:
|
$ | 2,966,710 | - | - | $ | 2,966,710 |
17.
|
Fair Value Measurements (cont’d)
|
|
a)
|
Money market funds valued at the net asset value of shares held by the Company and is classified within level 1 of the fair value hierarchy;
|
|
b)
|
Certificate of deposit valued based upon the underlying terms of a letter of credit, as discussed in Note 16, and classified within level 2 of the fair value hierarchy.
|
Warrant
Liabilities
|
Total Level 3
Liabilities
|
|||||||
Balance at January 1, 2011
|
$ | 2,966,710 | $ | 2,966,710 | ||||
Additions, fair value of warrants issued in March, 2011
|
2,924,333 | 2,924,333 | ||||||
Unrealized gains, net
|
(4,739,881 | ) | (4,739,881 | ) | ||||
Unrealized gains on expiration
|
(38,569 | ) | (38,569 | ) | ||||
Transfers out of Level 3
|
(243,868 | ) | (243,868 | ) | ||||
Balance at December 31, 2011
|
$ | 868,725 | $ | 868,725 |
Put Feature on
Common Stock
|
Warrant
Liabilities
|
Total Level 3
Liabilities
|
||||||||||
Balance at January 1, 2010
|
$ | 97,713 | $ | 3,099,476 | $ | 3,197,189 | ||||||
Additions, fair value of warrants issued in June, 2010
|
- | 1,980,880 | 1,980,880 | |||||||||
Unrealized losses, net
|
- | 3,823,146 | 3,823,146 | |||||||||
Unrealized gains on expiration
|
(97,713 | ) | - | (97,713 | ) | |||||||
Transfers out of Level 3
|
- | (5,936,792 | ) | (5,936,792 | ) | |||||||
Balance at December 31, 2010
|
$ | - | $ | 2,966,710 | $ | 2,966,710 |
17.
|
Fair Value Measurements (cont’d)
|
18.
|
Selected Quarterly Data (Unaudited)
|
2011
|
||||||||||||||||
For the Quarter Ended
|
||||||||||||||||
March 31
|
June 30
|
September 30
|
December 31
|
|||||||||||||
Revenues
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Expenses
|
(3,913,340 | ) | (6,458,586 | ) | (3,355,059 | ) | (2,404,028 | ) | ||||||||
Loss from Operations
|
(3,913,340 | ) | (6,458,586 | ) | (3,355,059 | ) | (2,404,028 | ) | ||||||||
Other Income (Expense)
|
(522,821 | ) | 629,734 | 1,885,841 | 2,793,309 | |||||||||||
Net Loss (Income)
|
$ | (4,436,161 | ) | $ | (5,828,852 | ) | $ | (1,469,218 | ) | $ | 389,281 | |||||
Net Loss (Income) per share, basic and diluted
|
$ | (0.05 | ) | $ | (0.06 | ) | $ | (0.02 | ) | $ | 0.00 |
2010
|
||||||||||||||||
For the Quarter Ended
|
||||||||||||||||
March 31
|
June 30
|
September 30
|
December 31
|
|||||||||||||
Revenues
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Expenses
|
(1,593,118 | ) | (3,189,014 | ) | (2,367,526 | ) | (3,156,251 | ) | ||||||||
Loss from Operations
|
(1,593,118 | ) | (3,189,014 | ) | (2,367,526 | ) | (3,156,251 | ) | ||||||||
Other Income (Expense)
|
(6,440,478 | ) | (408,056 | ) | 2,586,417 | 545,919 | ||||||||||
Net Loss (Income)
|
$ | (8,033,596 | ) | $ | (3,597,070 | ) | $ | 218,891 | $ | (2,610,332 | ) | |||||
Net Loss (Income) per share, basic and diluted
|
$ | (0.11 | ) | $ | (0.05 | ) | $ | 0.00 | $ | (0.03 | ) |
3.1
|
Amended and Restated Certificate of Incorporation, filed as Appendix G to the Company’s Definitive Proxy Statement on Schedule 14A (File No. 000-50590) dated April 29, 2005, is incorporated herein by reference.
|
3.2
|
Amended and Restated Bylaws, filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on March 26, 2010, is incorporated herein by reference.
|
4.1
|
Specimen Certificate for the Company’s Common Stock, par value $.0001 per share, filed as Exhibit 4.3 to the Company’s Registration Statement on Form S-8 (File No. 333-129294) dated October 28, 2005, is incorporated herein by reference.
|
4.2
|
Form of Senior Debt Securities Indenture, filed as Exhibit 4.3 to the Company’s Registration Statement on Form S-3 dated June 22, 2011, is incorporated herein by reference.
|
4.3
|
Form of Subordinated Debt Securities Indenture, filed as Exhibit 4.4 to the Company’s Registration Statement on Form S-3 dated June 22, 2011 is incorporated herein by reference.
|
*10.1.1
|
Rexahn Pharmaceuticals, Inc. Stock Option Plan, as amended, filed as Exhibit 4.4 to the Company’s Registration Statement on Form S-8 (File No. 333-129294) dated October 28, 2005, is incorporated herein by reference.
|
*10.1.2
|
Form of Stock Option Grant Agreement for Employees, filed as Exhibit 4.5.1 to the Company’s Registration Statement on Form S-8 (File No. 333-129294) dated October 28, 2005, is incorporated herein by reference.
|
*10.1.3
|
Form of Stock Option Grant Agreement for Non-Employee Directors and Consultants, filed as Exhibit 4.5.2 to the Company’s Registration Statement on Form S-8 (File No. 333-129294) dated October 28, 2005, is incorporated herein by reference.
|
*10.2
|
Employment Agreement, dated as of September 9, 2010, by and between Rexahn Pharmaceuticals, Inc. and C. H. Ahn, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on September 10, 2010, is incorporated herein by reference.
|
*10.3
|
Employment Agreement, dated as of September 9, 2010, by and between Rexahn Pharmaceuticals, Inc. and T. H. Jeong, filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on September 10, 2010, is incorporated herein by reference.
|
10.4
|
Lease Agreement, dated June 5, 2009, by and between Rexahn Pharmaceuticals, Inc. and The Realty Associates Fund V, L.P., filed as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009, is incorporated herein by reference
|
*10.5
|
Employment Agreement, dated as of September 9, 2010, by and between Rexahn Pharmaceuticals, Inc. and Rakesh Soni, filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on September 10, 2010, is incorporated herein by reference.
|
10.6
|
Securities Purchase Agreement, dated as of May 19, 2009 by and between Rexhan Pharmaceuticals, Inc. and the purchaser signatory thereto, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on May 20, 2009, is incorporated herein by reference.
|
10.7
|
Form of Warrant for the Company’s Series I, II, and III Common Stock Purchase Warrants, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on May 20, 2009, is incorporated herein by reference.
|
10.8
|
Research and Exclusive License Option Agreement, dated as of June 26, 2009, by and between Rexahn Pharmaceuticals, Inc. and Teva Pharmaceutical Industries Limited, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on September 21, 2009, is incorporated herein by reference.
|
10.9
|
Securities Purchase Agreement, dated as of June 26, 2009, by and between Rexahn Pharmaceuticals, Inc. and Teva Pharmaceutical Industries Limited (the “Teva Securities Purchase Agreement”), filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on September 21, 2009, and Amendment No. 1 to the Teva Securities Purchase Agreement, filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on September 21, 2009, are incorporated herein by reference.
|
10.10
|
Securities Purchase Agreement, dated as of October 19, 2009, by and between Rexahn Pharmaceuticals, Inc. and the purchasers signatory thereto, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on October 20, 2009, is incorporated herein by reference.
|
10.11
|
Form of Warrant for the Company’s Common Stock Purchase Warrants, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on October 20, 2009, is incorporated herein by reference.
|
10.12
|
Securities Purchase Agreement, dated as of June 28, 2010 by and between Rexahn Pharmaceuticals, Inc. and the purchasers signatory thereto, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on June 29, 2010, is incorporated herein by reference.
|
10.13
|
Form of Warrant for the Company’s Common Stock Purchase Warrants, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on June 29, 2010, is incorporated herein by reference.
|
10.14
|
Amendment No. 2 to the Teva Securities Purchase Agreement, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on January 20, 2011, is incorporated herein by reference.
|
10.15
|
Form of Warrant for the Company’s Common Stock Purchase Warrants, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on March 30, 2011, is incorporated herein by reference.
|
Statement re Computation of Ratios
|
|
14
|
Code of Ethics and Business Conduct, filed as Exhibit 14 to the Company’s Annual Report on 10-K for the fiscal year ended December 31, 2008, filed on March 16, 2009, is incorporated herein by reference.
|
16
|
Letter of Lazar Levine & Felix LLP dated February 27, 2009, filed as Exhibit 16.1 to the Company’s Amended Current Report on Form 8-K filed on March 2, 2009, is incorporated herein by reference.
|
Consent of ParenteBeard LLC, independent registered public accounting firm.
|
|
Power of Attorney.
|
|
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a).
|
|
Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a).
|
|
Certification of Chief Executive Officer of Periodic Report Pursuant to 18 U.S.C. Section 1350.
|
|
Certification of Chief Financial Officer of Periodic Report Pursuant to 18 U.S.C. Section 1350.
|
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema
|
101.CAL
|
XBRL Taxonomy Calculation Linkbase
|
101.DEF
|
XBRL Taxonomy Definition Linkbase
|
101.LAB
|
XBRL Taxonomy Label Linkbase
|
101.PRE
|
XBRL Taxonomy Presentation Linkbase
|