Download to XLS

Document and Entity Information

v2.4.0.6
Document and Entity Information
6 Months Ended
Jun. 30, 2012
Aug. 13, 2012
Document and Entity Information [Abstract]    
Entity Registrant Name CORTEX PHARMACEUTICALS INC/DE/  
Entity Central Index Key 0000849636  
Document Type 10-Q  
Document Period End Date Jun. 30, 2012  
Amendment Flag false  
Document Fiscal Year Focus 2012  
Document Fiscal Period Focus Q2  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   144,041,558

Condensed Balance Sheets

v2.4.0.6
Condensed Balance Sheets (USD $)
Jun. 30, 2012
Dec. 31, 2011
Current assets:    
Cash and cash equivalents $ 532,876 $ 1,610,945
Restricted cash   48,309
Capitalized offering costs 20,658  
Other current assets 47,388 85,630
Total current assets 600,922 1,744,884
Furniture, equipment and leasehold improvements, net 48,375 66,882
Other 29,545 8,889
Total assets 678,842 1,820,655
Current liabilities:    
Accounts payable 811,932 472,756
Accrued wages, salaries and related expenses 343,478 235,399
Promissory note, net of unamortized discount (Note2) 271,892  
Unearned revenue   48,309
Advance for MCI project 325,789 323,779
Deferred rent 58 64,502
Total current liabilities 1,753,149 1,144,745
Stockholders' (deficit) equity:    
Series B convertible preferred stock, $0.001 par value; $25,001 liquidation preference; shares authorized: 37,500; shares issued and outstanding: 37,500; shares issuable upon conversion: 3,679 21,703 21,703
Common stock, $0.001 par value; shares authorized: 205,000,000; shares issued and outstanding: 85,623,663 (June 30, 2012 and December 31, 2011) 85,624 85,624
Additional paid-in capital 121,516,230 121,337,670
Accumulated deficit (122,697,864) (120,769,087)
Total stockholders' (deficit) equity (1,074,307) 675,910
Total liabilities and stockholders' equity $ 678,842 $ 1,820,655

Condensed Balance Sheets (Parenthetical)

v2.4.0.6
Condensed Balance Sheets (Parenthetical) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Condensed Balance Sheets [Abstract]    
Series B convertible preferred stock, par value $ 0.001 $ 0.001
Series B convertible preferred stock, liquidation preference amount $ 25,001 $ 25,001
Series B convertible preferred stock, shares authorized 37,500 37,500
Series B convertible preferred stock, shares issued 37,500 37,500
Series B convertible preferred stock, shares outstanding 37,500 37,500
Series B convertible preferred stock, shares issuable upon conversion 3,679 3,679
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 205,000,000 205,000,000
Common stock, shares issued 85,623,663 85,623,663
Common stock, shares outstanding 85,623,663 85,623,663

Condensed Statements of Operations (Unaudited)

v2.4.0.6
Condensed Statements of Operations (Unaudited) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Revenues:        
License revenue   $ 1,000,000   $ 1,000,000
Grant revenue 48,309 85,027 48,309 110,327
Total revenues 48,309 1,085,027 48,309 1,110,327
Operating expenses:        
Research and development 264,295 645,231 467,276 1,289,110
General and administrative 756,045 803,705 1,487,418 1,744,123
Total operating expenses 1,020,340 1,448,936 1,954,694 3,033,233
Loss from operations (972,031) (363,909) (1,906,385) (1,922,906)
Interest (expense) income, net (12,556) 7,741 (11,972) 10,892
Foreign currency transaction loss (10,420)   (10,420)  
Net loss $ (995,007) $ (356,168) $ (1,928,777) $ (1,912,014)
Net loss per share:        
Basic and diluted $ (0.01) $ 0.00 $ (0.02) $ (0.02)
Shares used in calculating per share amounts:        
Basic and diluted 85,623,663 78,858,197 85,623,663 78,858,197

Condensed Statements of Comprehensive Loss (Unaudited)

v2.4.0.6
Condensed Statements of Comprehensive Loss (Unaudited) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Condensed Statements of Comprehensive Loss [Abstract]        
Net loss $ (995,007) $ (356,168) $ (1,928,777) $ (1,912,014)
Other comprehensive loss:        
Realized loss on marketable securities         (473)
Other comprehensive loss         (473)
Comprehensive loss $ (995,007) $ (356,168) $ (1,928,777) $ (1,912,487)

Condensed Statements of Cash Flows (Unaudited)

v2.4.0.6
Condensed Statements of Cash Flows (Unaudited) (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Cash flows from operating activities:    
Net loss $ (1,928,777) $ (1,912,014)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation expense 13,843 49,974
Stock option compensation expense 34,641 43,127
Foreign currency transaction adjustment 10,420  
Amortization of capitalized financing costs 712  
Amortization of debt discount 4,797  
Loss on sale of fixed assets 3,172  
Changes in operating assets/liabilities:    
Accrued interest on marketable securities   2,519
Restricted cash 48,309 103,150
Other current assets 38,242 28,443
Other non-current assets (20,656)  
Accounts payable and accrued expenses 447,255 177,904
Unearned revenue (48,309) (103,150)
Deferred rent (64,444) (1,613)
Other 2,830 (9,139)
Net cash used in operating activities (1,457,965) (1,620,799)
Cash flows from investing activities:    
Proceeds from sales and maturities of marketable securities   1,990,000
Proceeds from sales of fixed assets 6,785 12,780
Purchase of fixed assets (5,293)  
Net cash provided by investing activities 1,492 2,002,780
Cash flows from financing activities:    
Proceeds from issuance of promissory note 399,774  
Costs related to issuance of promissory note (21,370)  
Net cash provided by financing activities 378,404  
(Decrease) increase in cash and cash equivalents (1,078,069) 381,981
Cash and cash equivalents, beginning of period 1,610,945 1,037,549
Cash and cash equivalents, end of period $ 532,876 $ 1,419,530

Basis of Presentation and Significant Accounting Principles

v2.4.0.6
Basis of Presentation and Significant Accounting Principles
6 Months Ended
Jun. 30, 2012
Basis of Presentation and Significant Accounting Principles [Abstract]  
Basis of Presentation and Significant Accounting Principles

Note 1 — Basis of Presentation and Significant Accounting Principles

The accompanying unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six-month period ended June 30, 2012 are not necessarily indicative of the results that may be expected for the full fiscal year. For further information, refer to the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011.

The Company has incurred net losses and cash outflows from operations of approximately $1,929,000 and $1,458,000, respectively, for the six months ended June 30, 2012 and expects to incur additional losses and negative cash flow from operations in fiscal 2012 and for several more years. Management believes the Company has adequate financial resources to conduct operations into the third quarter of 2012. This raises substantial doubt about the Company’s ability to continue as a going concern, which is dependent on its ability to obtain additional financing and to generate sufficient cash flows to meet its obligations on a timely basis.

Effective June 1, 2012, as part of its efforts to conserve its cash resources, the Company deferred payment of 50% of the base salary for each of its executive officers. The Company intends to continue those deferrals until such time as the Company secures sufficient capital or certain corporate transactions occur.

The Company is exploring its strategic and financial alternatives, including, but not limited to, new collaborations for its AMPAKINE® program which would provide capital to the Company in exchange for exclusive or non-exclusive license or other rights to certain of the technologies and products that the Company is developing. Although the Company is presently engaged in discussions with a number of candidate companies, there can be no assurance that an agreement will arise from these discussions in a timely manner, or at all.

The Company will need to raise additional capital through the sale of debt or equity. If the Company is unable to obtain additional financing to fund operations beyond the mid-third quarter of 2012, it will need to eliminate some or all of its activities, merge with another company, license or sell some or all of its assets to another company, or cease operations entirely. There can be no assurance that the Company will be able to obtain additional financing on favorable terms or at all, or that the Company will be able to merge with another Company or license or sell any or all of its assets.

Employee Stock Options and Stock-based Compensation

The Company’s 2006 Stock Incentive Plan (the “2006 Plan”) provides for a variety of equity vehicles to allow flexibility in implementing equity awards, including incentive stock options, nonqualified stock options, restricted stock grants, stock appreciation rights, stock payment awards, restricted stock units and dividend equivalents to qualified employees, officers, directors, consultants and other service providers. The exercise price of stock options offered under the 2006 Plan must be at least 100% of the fair market value of the common stock on the date of grant. If the person to whom an incentive stock option is granted is a 10% stockholder of the Company on the date of grant, the exercise price per share shall not be less than 110% of the fair market value on the date of grant. Options granted generally vest over a three-year period, although options granted to officers may include more accelerated vesting. Options generally expire ten years from the date of grant, but options granted to consultants may expire five years from the date of grant.

The Company recognizes expense in its financial statements for all share-based payments to employees, including grants of employee stock options, based on their fair values over the requisite service period.

There were no options granted during the three months ended June 30, 2012 and 2011 or the six months ended June 30, 2012. For options granted during the six months ended June 30, 2011, the fair value of each option award was estimated using the Black-Scholes option pricing model and the following assumptions: weighted average risk-free interest rate of 2.8%; dividend yield of 0%; volatility factor of the expected market price of the Company’s common stock of 107%; and a weighted average life of the options of 7.0 years.

Expected volatility is based on the historical volatility of the Company’s stock. The Company also uses historical data to estimate the expected term of options granted and employee termination rates. The risk-free rate for periods within the estimated life of the options is based on the U.S. Treasury yield curve in effect at the time of grant.

The weighted-average grant-date fair value per share of options granted during the six months ended June 30, 2011 was $0.11.

A summary of option activity for the six months ended June 30, 2012 is as follows:

 

                                 
    Shares     Weighted
Average
Exercise Price
    Weighted Average
Remaining
Contractual Term
    Aggregate
Intrinsic Value
 

Balance, December 31, 2011

    10,800,856     $ 1.38                  

Granted

    —         —                    

Exercised

    —         —                    

Forfeited

    —         —                    

Expired

    (70,000   $ 2.57                  
   

 

 

                         

Balance, June 30, 2012

    10,730,856     $ 1.37       4.3 years       —    
   

 

 

                         

Vested and expected to vest, June 30, 2012

    10,519,921     $ 1.39       4.2 years       —    
   

 

 

                         

Exercisable, June 30, 2012

    9,713,193     $ 1.49       3.9 years       —    
   

 

 

                         

As of June 30, 2012, there was approximately $13,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements. That non-cash cost is expected to be recognized over a weighted-average period of less than one year.

Stock options and warrants issued as compensation for services to be provided to the Company by non-employees are accounted for based upon the fair value of the services provided or the estimated fair value of the option or warrant, whichever can be more clearly determined. The Company recognizes this expense over the period in which the services are provided. This expense is a non-cash charge and has no impact on the Company’s available cash or working capital.

 

There were no stock option exercises during the six months ended June 30, 2012 or 2011. The Company issues new shares to satisfy stock option exercises.

A summary of warrant activity for the six months ended June 30, 2012 is as follows:

 

                 
    Shares     Weighted
Average Per Share
Exercise Price
 

Balance, December 31, 2011

    25,818,319     $ 0.70  

Granted

    4,000,000     $ 0.06  

Exercised

    —         —    

Expired

    (7,078,560   $ 0.82  
   

 

 

         

Balance, June 30, 2012

    22,739,759     $ 0.55  
   

 

 

         

The warrants granted during the six months ended June 30, 2012 were issued in connection with the June 2012 note payable transaction with Samyang Optics Co., Ltd., as discussed more fully in Note 2.

Net Loss per Share

For the three months and six months ended June 30, 2012 and 2011, the effect of potentially issuable shares of common stock was not included in the calculation of diluted loss per share given that the effect would be anti-dilutive.

Comprehensive Income (Loss)

In June 2011, the Financial Accounting Standards Board issued Accounting Standards Update No. 2011-05, “Presentation of Comprehensive Income” (ASU 2011-05). ASU 2011-05 requires comprehensive income to be reported in either a single statement or in two consecutive statements reporting net income and other comprehensive income. ASU 2011-05 eliminated the option to report other comprehensive income and its components in the statement of changes in stockholder’s equity.

As required, the Company retroactively adopted ASU 2011-05 effective January 1, 2012 and has elected to report comprehensive income for the three months and six months ended June 30, 2012 and 2011 (as applicable) in two consecutive statements reporting net income and other comprehensive income. The adoption of ASU 2011-05 did not have a material impact on the Company’s financial position or its results of operations.

Transaction with Samyang

v2.4.0.6
Transaction with Samyang
6 Months Ended
Jun. 30, 2012
Transaction with Samyang [Abstract]  
Transaction with Samyang

Note 2 — Transaction with Samyang

On June 25, 2012, the Company completed a private placement of a promissory note in the principal amount of approximately $400,000 (465,000,000 South Korean won) with a single accredited institutional investor, Samyang Optics Co., Ltd. (“Samyang”) of Korea. The note accrues simple interest at the rate of 12% per annum and has a maturity date of June 25, 2013, although Samyang may demand repayment of the promissory note on or after December 25, 2012.

The promissory note is secured by collateral that represents a lien on certain patents owned by the Company, including composition of matter patents for certain of the Company’s high impact AMPAKINE compounds and the low impact AMPAKINE compounds CX2007 and CX2076, and related compounds. The security interest does not extend to the Company’s patent for its AMPAKINE CX1739 or on the patent for the use of AMPAKINE compounds for the treatment of respiratory depression.

 

In connection with the private placement, the Company issued to Samyang two-year detachable warrants to purchase up to 4,000,000 unregistered shares of the Company’s common stock at an exercise price of $0.056 per share. The warrants have a call right, in favor of the Company, to the extent the weighted average closing price of the Company’s common stock exceeds $0.084 per share for each of ten consecutive trading days, subject to certain circumstances.

The June 2012 private placement follows a private placement of $500,000 in securities with Samyang Value Partners Co., Ltd., a wholly owned subsidiary of Samyang, in October 2011 and a private placement of a convertible promissory note in the principal amount of $1,500,000 with Samyang in January 2010.

In connection with the October 2011 investment, the Company and Samyang entered into a memorandum of understanding and subsequent license agreement for rights to the AMPAKINE CX1739 for the treatment of neurodegenerative diseases in South Korea. The license agreement also provides Samyang with rights of negotiation to expand its territory into other South East Asian countries, excluding Japan, Taiwan and China, and to include rights to the high impact AMPAKINE CX1846 for the potential treatment of neurodegenerative diseases.

In connection with the June 2012 transaction, the license agreement with Samyang was expanded to include rights to AMPAKINE CX1739 in South Korea for the treatment of sleep apnea and respiratory depression.

Given the lack of comparable financial statements available in the marketplace, the company deemed the face amount of the promissory note to be a reasonable approximation of its fair value. The Company used the Black-Scholes option pricing model to estimate the fair value of the 4,000,000 detachable warrants. The Company then used the relative fair value method to allocate the proceeds from the private placement to the promissory note and the detachable warrants issued in the transaction. This resulted in approximately 64% of the proceeds being allocated to the debt instrument.

Given the limited rights and territory granted with the June 2012 transaction, the Company did not assign a value to the license expansion. Accordingly, the Company has not allocated any proceeds from the June 2012 private placement to the expanded license rights.

The difference between the allocated value and face value of the promissory note is being amortized as interest expense over the life of the note, along with capitalized offering costs incurred in connection with the transaction. Given that Samyang may demand repayment of the note on or after six months from its issuance date, the Company is using six months as the anticipated life of the note for such amortization.

The Company evaluated the warrants issued in the transaction and deemed the instruments to be indexed to the Company’s common stock and subject to equity classification within the Company’s balance sheet.

Subsequent Event

v2.4.0.6
Subsequent Event
6 Months Ended
Jun. 30, 2012
Subsequent Events [Abstract]  
Subsequent Event

Note 3 — Subsequent Event

On August 10, 2012, the Company acquired privately-held Pier Pharmaceuticals, Inc. (“Pier”), a clinical stage pharmaceutical company developing a treatment for sleep apnea. The acquisition was completed through a merger of Pier with a newly formed wholly-owned subsidiary of the Company. The acquisition included the issuance of 58,417,895 newly issued shares of the Company’s common stock to Pier, which represents approximately 41% of the Company’s outstanding common stock immediately following the transaction.

 

The Company has agreed to issue to Pier contingent consideration in the form of additional shares of its common stock in the event that certain of the Company’s stock options and warrants outstanding as of the date of the transaction are subsequently exercised prior to their expiration. Nearly all of the stock options and warrants outstanding as of the date of the transaction are “out of the money” as of such date. Additionally, the warrants issued to Samyang in connection with the June 2012 private placement (See Note 2) are excluded from the above and the potential exercise of such warrants will not trigger any subsequent issuance of shares to Pier. Based upon the stock options and warrants outstanding immediately prior to the transaction, other than the warrants issued to Samyang in June 2012, the contingent consideration to Pier approximates 18.3 million additional shares of common stock. In the event that any contingent consideration is issued, the ownership percentage of Pier following its receipt of such additional shares shall not exceed its ownership percentage as of the initial acquisition transaction.

In connection with the Pier transaction, the positions for two of the Company’s executive officer positions were eliminated and the severance agreements for such executive officers were amended. As amended, the severance agreements provide for the grant of fully vested, ten-year options to purchase up to a total of 5,166,668 shares of the Company’s common stock at an exercise price of $0.06 per share, representing the closing price of the Company’s common stock on the closing date of the Pier transaction. As amended, the severance agreements also include semi-monthly payments totaling approximately $16,000 over the seven months following the acquisition, for a total of approximately $223,000. Thereafter, the amended severance agreements provide for semi-monthly payments totaling approximately $6,000 over the eighth through twenty-fourth month following the acquisition, for a total of approximately $207,000. The above payments include amounts accrued for previously earned paid-time off for both executive officers. Any unpaid amounts related to the above payments may be settled in a lump-sum distribution at the time and in the event that certain corporate transactions occur.

The acquisition of Pier reinforces the Company’s focus on developing therapies for the treatment of brain-controlled breathing disorders, including opiate-induced respiratory depression, obstructive sleep apnea and central sleep apnea. Through this acquisition, the Company gained rights to Pier’s exclusive license, including a method-of-use patent for the treatment of obstructive sleep apnea with dronabinol from the University of Illinois. The National Institutes of Health recently awarded the University of Illinois a grant approximating $5,000,000 to support the development of dronabinol in a Phase II clinical study in subjects with obstructive sleep apnea and daytime sleepiness. It is anticipated that this grant will fully fund the proposed Phase II study in 120 patients.

While the Company has expanded its technology platform through the acquisition of Pier, the Company needs to raise additional capital. If the Company is unable to obtain additional financing to fund operations, it will need to eliminate some or all of its activities, merge with another company, license or sell some or all of its assets to another company, or cease operations entirely.

Basis of Presentation and Significant Accounting Principles (Policies)

v2.4.0.6
Basis of Presentation and Significant Accounting Principles (Policies)
6 Months Ended
Jun. 30, 2012
Basis of Presentation and Significant Accounting Principles [Abstract]  
Employee Stock Options and Stock-based Compensation

Employee Stock Options and Stock-based Compensation

The Company’s 2006 Stock Incentive Plan (the “2006 Plan”) provides for a variety of equity vehicles to allow flexibility in implementing equity awards, including incentive stock options, nonqualified stock options, restricted stock grants, stock appreciation rights, stock payment awards, restricted stock units and dividend equivalents to qualified employees, officers, directors, consultants and other service providers. The exercise price of stock options offered under the 2006 Plan must be at least 100% of the fair market value of the common stock on the date of grant. If the person to whom an incentive stock option is granted is a 10% stockholder of the Company on the date of grant, the exercise price per share shall not be less than 110% of the fair market value on the date of grant. Options granted generally vest over a three-year period, although options granted to officers may include more accelerated vesting. Options generally expire ten years from the date of grant, but options granted to consultants may expire five years from the date of grant.

The Company recognizes expense in its financial statements for all share-based payments to employees, including grants of employee stock options, based on their fair values over the requisite service period.

There were no options granted during the three months ended June 30, 2012 and 2011 or the six months ended June 30, 2012. For options granted during the six months ended June 30, 2011, the fair value of each option award was estimated using the Black-Scholes option pricing model and the following assumptions: weighted average risk-free interest rate of 2.8%; dividend yield of 0%; volatility factor of the expected market price of the Company’s common stock of 107%; and a weighted average life of the options of 7.0 years.

Expected volatility is based on the historical volatility of the Company’s stock. The Company also uses historical data to estimate the expected term of options granted and employee termination rates. The risk-free rate for periods within the estimated life of the options is based on the U.S. Treasury yield curve in effect at the time of grant.

As of June 30, 2012, there was approximately $13,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements. That non-cash cost is expected to be recognized over a weighted-average period of less than one year.

Stock options and warrants issued as compensation for services to be provided to the Company by non-employees are accounted for based upon the fair value of the services provided or the estimated fair value of the option or warrant, whichever can be more clearly determined. The Company recognizes this expense over the period in which the services are provided. This expense is a non-cash charge and has no impact on the Company’s available cash or working capital.

Net (Loss) Income per Share

Net Loss per Share

For the three months and six months ended June 30, 2012 and 2011, the effect of potentially issuable shares of common stock was not included in the calculation of diluted loss per share given that the effect would be anti-dilutive.

Comprehensive Income (Loss)

Comprehensive Income (Loss)

In June 2011, the Financial Accounting Standards Board issued Accounting Standards Update No. 2011-05, “Presentation of Comprehensive Income” (ASU 2011-05). ASU 2011-05 requires comprehensive income to be reported in either a single statement or in two consecutive statements reporting net income and other comprehensive income. ASU 2011-05 eliminated the option to report other comprehensive income and its components in the statement of changes in stockholder’s equity.

As required, the Company retroactively adopted ASU 2011-05 effective January 1, 2012 and has elected to report comprehensive income for the three months and six months ended June 30, 2012 and 2011 (as applicable) in two consecutive statements reporting net income and other comprehensive income. The adoption of ASU 2011-05 did not have a material impact on the Company’s financial position or its results of operations.

Basis of Presentation and Significant Accounting Principles (Tables)

v2.4.0.6
Basis of Presentation and Significant Accounting Principles (Tables)
6 Months Ended
Jun. 30, 2012
Basis of Presentation and Significant Accounting Principles [Abstract]  
Summary of stock option activity

A summary of option activity for the six months ended June 30, 2012 is as follows:

 

                                 
    Shares     Weighted
Average
Exercise Price
    Weighted Average
Remaining
Contractual Term
    Aggregate
Intrinsic Value
 

Balance, December 31, 2011

    10,800,856     $ 1.38                  

Granted

    —         —                    

Exercised

    —         —                    

Forfeited

    —         —                    

Expired

    (70,000   $ 2.57                  
   

 

 

                         

Balance, June 30, 2012

    10,730,856     $ 1.37       4.3 years       —    
   

 

 

                         

Vested and expected to vest, June 30, 2012

    10,519,921     $ 1.39       4.2 years       —    
   

 

 

                         

Exercisable, June 30, 2012

    9,713,193     $ 1.49       3.9 years       —    
   

 

 

                         
Summary of stock warrant activity

A summary of warrant activity for the six months ended June 30, 2012 is as follows:

 

                 
    Shares     Weighted
Average Per Share
Exercise Price
 

Balance, December 31, 2011

    25,818,319     $ 0.70  

Granted

    4,000,000     $ 0.06  

Exercised

    —         —    

Expired

    (7,078,560   $ 0.82  
   

 

 

         

Balance, June 30, 2012

    22,739,759     $ 0.55  
   

 

 

         

Basis of Presentation and Significant Accounting Principles (Details)

v2.4.0.6
Basis of Presentation and Significant Accounting Principles (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2012
Summary of stock option activity    
Shares, Balance, December 31, 2011   10,800,856
Weighted Average Exercise Price ,Balance, December 31, 2011   $ 1.38
Shares, Granted 0 0
Weighted Average Exercise Price, Granted   $ 0.06
Shares, Exercised     
Weighted Average Exercise Price, Exercised     
Shares, Forfeited     
Weighted Average Exercise Price, Forfeited     
Shares, Expired   (70,000)
Weighted Average Exercise Price, Expired   $ 2.57
Shares, Balance, June 30, 2012 10,730,856 10,730,856
Weighted Average Exercise Price ,Balance, June 30, 2012 $ 1.37 $ 1.37
Shares, Vested and expected to vest, June 30, 2012 10,519,921 10,519,921
Weighted Average Exercise Price, Vested and expected to vest, June 30, 2012 $ 1.39 $ 1.39
Shares, Exercisable, June 30, 2012 9,713,193 9,713,193
Weighted Average Exercise Price, Exercisable, June 30, 2012 $ 1.49 $ 1.49
Weighted Average Remaining Contractual Term, Balance, June 30, 2012   4 years 3 months 18 days
Weighted Average Remaining Contractual Term, Vested and expected to vest, June 30, 2012   4 years 2 months 12 days
Weighted Average Remaining Contractual Term, Exercisable, June 30, 2012   3 years 10 months 24 days
Aggregate Intrinsic Value, Balance, June 30, 2012      
Aggregate Intrinsic Value, Vested and expected to vest, June 30, 2012      
Aggregate Intrinsic Value, Exercisable, June 30, 2012      

Basis of Presentation and Significant Accounting Principles (Details 1)

v2.4.0.6
Basis of Presentation and Significant Accounting Principles (Details 1) (Warrant [Member], USD $)
6 Months Ended
Jun. 30, 2012
Warrant [Member]
 
Summary of stock warrant activity  
Shares, Balance, December 31, 2011 25,818,319
Shares, Granted 4,000,000
Shares, Exercised   
Shares, Expired (7,078,560)
Shares, Balance, June 30, 2012 22,739,759
Weighted Average Per Share Exercise Price, Balance, December 31, 2011 $ 0.70
Weighted Average Per Share Exercise Price, Granted $ 0.06
Weighted Average Per Share Exercise Price, Exercised   
Weighted Average Per Share Exercise Price, Expired $ 0.82
Weighted Average Per Share Exercise Price, Balance, June 30, 2012 $ 0.55

Basis of Presentation and Significant Accounting Principles (Details Textual)

v2.4.0.6
Basis of Presentation and Significant Accounting Principles (Details Textual) (USD $)
1 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Basis of Presentation and Significant Accounting Principles (Textual) [Abstract]          
Incurred net losses   $ (995,007) $ (356,168) $ (1,928,777) $ (1,912,014)
Cash outflows from operations       1,458,000  
Company deferred payment 50.00%        
Fair market value of common stock on the date of grant       100.00%  
Incentive stock option is granted       10.00%  
Exercise price per share fair market value on the date of grant       110.00%  
Options granted generally vest in period       3 years  
Options generally expire in period, grant       10 years  
Options granted to consultant expire in period       5 years  
Options granted   0   0  
Weighted average risk-free interest rate         2.80%
Dividend yield         0.00%
Volatility factor of the expected market price of the Company's common stock         107.00%
Weighted average life         7 years
Weighted-average grant-date fair value per share of options granted         $ 0.11
Unrecognized compensation cost related to non-vested share-based compensation $ 13,000 $ 13,000   $ 13,000  
Non-cash expense is expected to be recognized over a weighted-average period       1 year  
Stock option exercise       0 0

Transaction with Samyang (Details)

v2.4.0.6
Transaction with Samyang (Details)
6 Months Ended 6 Months Ended 1 Months Ended 6 Months Ended
Jun. 30, 2012
USD ($)
Jan. 31, 2010
Convertible promissory note [Member]
USD ($)
Jun. 30, 2012
Promissory note [Member]
USD ($)
Jun. 30, 2012
Promissory note [Member]
KRW
Jun. 30, 2012
Promissory note to subsidiary [Member]
USD ($)
Jun. 30, 2012
Promissory note to subsidiary [Member]
Transaction with Samyang (Textual) [Abstract]            
Private placement of convertible promissory note in the principal amount   $ 1,500,000 $ 400,000 465,000,000    
Simple interest at rate     12.00% 12.00%    
Maturity date     Jun. 25, 2013 Jun. 25, 2013    
Warrant term duration           2 years
Private placement with Samyang Value Partners Co Ltd         500,000  
Repayment of note Six months         Six months
Transaction with Samyang (Additional Textual) [Abstract]            
Date of repayment of promissory note Dec. 25, 2012          
Warrants issued to purchase unregistered shares of common stock 4,000,000          
Common stock at an exercise price 0.056          
Weighted average closing price of common stock exceeds $ 0.084          
Anticipated life of note Six months         Six months
Fair value of detachable warrants $ 400,000          
Percentage of proceeds allocated to debt instrument 64.00%          

Subsequent Event (Details Textual)

v2.4.0.6
Subsequent Event (Details Textual) (USD $)
6 Months Ended
Jun. 30, 2012
Patients
Subsequent Event (Textual) [Abstract]  
Acquisition date by company Aug. 10, 2012
Common stock issuance 58,417,895
Percentage of common stock outstanding 41.00%
Company stock options and warrants outstanding 18,300,000
External grant $ 5,000,000
Maximum number of shares to be purchase under agreement 5,166,668
Exercise price of common stock $ 0.06
Period of option to purchase 3 years
Semi monthly payments as per amended agreement 16,000
Approximate payments as per amended agreement over seven months 223,000
Semi monthly payments as per amended agreement over Eighth month 6,000
Approximate payments as per amended agreement over Eighth month through Twenty fourth month $ 207,000
Number of Patients 120