Quarterly report pursuant to Section 13 or 15(d)

Note 1 - Business, Basis of Presentation and Liquidity

Note 1 - Business, Basis of Presentation and Liquidity
6 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
   Business, Basis of Presentation and Liquidity
Neuralstem is a clinical stage biopharmaceutical company that is utilizing its proprietary human neural stem cell technology to create a comprehensive platform of therapies for the treatment of central nervous system diseases. The Company has utilized this technology as a tool for small-molecule drug discovery and to create cell therapy biotherapeutics to treat central nervous system diseases. The Company was founded in
and currently has laboratory and office space in Germantown, Maryland and laboratory facilities in the People’s Republic of China. Our operations to date have been directed primarily toward developing business strategies, raising capital, research and development activities, and conducting pre-clinical testing and human clinical trials of our product candidates.
Neuralstem, Inc. and its subsidiary are referred to as “Neuralstem,” the “Company,” “us,” or “we” throughout this report. The operations of our wholly-owned and controlled subsidiary located in China are consolidated in our condensed consolidated financial statements and all intercompany activity has been eliminated. The Company operates in
business segment.
In management’s opinion, the accompanying interim condensed financial statements include all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly our financial position, results of operations and cash flows. The condensed consolidated balance sheet at
December 31, 2016,
has been derived from audited financial statements as of that date. The interim results of operations are
necessarily indicative of the results that
occur for the full fiscal year. Certain information and footnote disclosure normally included in the financial statements prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP) have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the U.S. Securities and Exchange Commission (SEC). We believe that the disclosures provided herein are adequate to make the information presented
misleading when these condensed financial statements are read in conjunction with the Financial Statements and Notes included in our Annual Report on Form
-K for the year ended
filed with the SEC, and as
be amended. Certain prior period amounts have been reclassified to conform to current year classifications.
The Board of Directors approved a
reverse stock split of the Company’s common stock effective
January 6, 2017.
Stockholders' equity and all references to share and per share amounts in the accompanying consolidated financial statements have been retroactively adjusted to reflect the
reverse stock split for all periods presented.
The Company has incurred losses since its inception and has
demonstrated an ability to generate significant revenues from the sales of its therapies or services and have
yet achieved profitable operations. There can be
assurance that profitable operations will ever be achieved, or if achieved, could be sustained on a continuing basis. In addition, development activities, clinical and pre-clinical testing, and commercialization of our products will require significant additional financing.
Our cash, cash equivalents and short-term investments balance at
June 30, 2017
was approximately
million. On
August 1, 2017,
we closed a public offering of
shares of common stock and
common stock purchase warrants at a public purchase price of
per share and accompanying warrant. We received gross proceeds of
million and approximately
million of net proceeds from this offering.
We expect that our existing cash and cash equivalents will be sufficient to enable us to fund our anticipated level of operations based on our current operating plans into the
quarter of
In the event we are
able to secure additional capital by such date we
be able to continue as a going concern. Accordingly, we will require additional capital to continue to develop our pre-clinical and clinical development operations. To continue to fund our operations and the development of our product candidates, we anticipate raising additional cash through the private or public sales of equity or debt securities, collaborative arrangements, licensing agreements or a combination thereof. Although management believes that such funding sources will be available, there can be
assurance that any such collaborative or licensing arrangements will be entered into or that financing will be available to us when needed in order to allow us to continue our operations, or if available, on terms acceptable to us. If we do
raise sufficient funds in a timely manner, among other things, we
be forced to delay, scale back or eliminate some or all of our research and product development programs, planned clinical trials, and/or our capital expenditures or to license our potential products or technologies to
parties. We currently do
have commitments for future funding from any source.
We have spent and will continue to spend substantial funds in the research, development, pre-clinical and clinical testing of our small molecule and stem cell product candidates with the goal of ultimately obtaining approval from the United States Food and Drug Administration (the “FDA”) and its international equivalents, to market and sell our products.
assurance can be given that (i) FDA or other regulatory agency approval will ever be granted for us to market and sell our product candidates, or (ii) if regulatory approval is granted, that we will ever be able to sell our proposed products or be profitable.