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Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Jun. 30, 2020	Aug. 05, 2020
Document Information [Line Items]
Entity Registrant Name	Diffusion Pharmaceuticals Inc.
Entity Central Index Key	0001053691
Trading Symbol	dffn
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding (in shares)		63,998,298
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false
Title of 12(b) Security	Common Stock, par value $0.001 per share

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 25,561,599	$ 14,177,349
Prepaid expenses, deposits and other current assets	1,147,174	472,464
Total current assets	26,708,773	14,649,813
Property and equipment, net	198,325	252,366
Intangible asset	8,639,000	8,639,000
Right of use asset	194,879	247,043
Other assets	252,149	322,301
Total assets	35,993,126	24,110,523
Current liabilities:
Accounts payable	1,354,948	1,251,412
Accrued expenses and other current liabilities	317,075	358,532
Current operating lease liability	109,808	111,477
Total current liabilities	1,781,831	1,721,421
Deferred income taxes	1,249,569	2,119,274
Noncurrent operating lease liability	85,071	135,566
Total liabilities	3,116,471	3,976,261
Commitments and Contingencies (Note 7)
Stockholders’ Equity:
Common stock, $0.001 par value: 1,000,000,000 shares authorized; 63,998,298 and 33,480,365 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively	63,999	33,481
Additional paid-in capital	130,220,772	111,824,859
Accumulated deficit	(97,408,116)	(91,724,078)
Total stockholders' equity	32,876,655	20,134,262
Total liabilities and stockholders' equity	$ 35,993,126	$ 24,110,523

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	63,998,298	33,480,365
Common stock, shares outstanding (in shares)	63,998,298	33,480,365

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Operating expenses:
Research and development	$ 2,173,183	$ 1,518,381	$ 3,707,650	$ 3,218,226
General and administrative	1,458,257	1,068,452	2,852,065	2,269,180
Depreciation	27,021	34,390	54,041	52,662
Loss from operations	3,658,461	2,621,223	6,613,756	5,540,068
Other income:
Interest income	(25,913)	(16,921)	(60,013)	(37,605)
Loss from operations before income tax benefit	(3,632,548)	(2,604,302)	(6,553,743)	(5,502,463)
Income tax benefit	(507,325)	(108,904)	(869,705)	(259,256)
Net loss	(3,125,223)	(2,495,398)	(5,684,038)	(5,243,207)
Deemed dividend arising from warrant exchange	(1,950,378)		(1,950,378)
Net loss attributable to common stockholders	$ (5,075,601)	$ (2,495,398)	$ (7,634,416)	$ (5,243,207)
Per share information:
Net loss per share of common stock, basic and diluted (in dollars per share)	$ (0.10)	$ (0.63)	$ (0.18)	$ (1.43)
Weighted average shares outstanding, basic and diluted (in dollars per share)	$ 51,978,286	$ 3,940,684	$ 43,242,891	$ 3,658,457

Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2018	3,376,230
Balance at Dec. 31, 2018	$ 3,377	$ 95,532,881	$ (79,924,699)	$ 15,611,559
Issuance of common stock and warrants, net of issuance costs (in shares)	1,317,060
Issuance of common stock and warrants, net of issuance costs	$ 1,317	5,567,633		5,568,950
Stock-based compensation expense		240,284		240,284
Net loss			(5,243,207)	(5,243,207)
Balance (in shares) at Jun. 30, 2019	4,693,290
Balance at Jun. 30, 2019	$ 4,694	101,340,798	(85,167,906)	16,177,586
Balance (in shares) at Mar. 31, 2019	3,376,230
Balance at Mar. 31, 2019	$ 3,377	95,624,085	(82,672,508)	12,954,954
Issuance of common stock and warrants, net of issuance costs (in shares)	1,317,060
Issuance of common stock and warrants, net of issuance costs	$ 1,317	5,567,633		5,568,950
Stock-based compensation expense		149,080		149,080
Net loss			(2,495,398)	(2,495,398)
Balance (in shares) at Jun. 30, 2019	4,693,290
Balance at Jun. 30, 2019	$ 4,694	101,340,798	(85,167,906)	16,177,586
Balance (in shares) at Dec. 31, 2019	33,480,365
Balance at Dec. 31, 2019	$ 33,481	111,824,859	(91,724,078)	20,134,262
Issuance of common stock and warrants, net of issuance costs (in shares)	11,428,572
Issuance of common stock and warrants, net of issuance costs	$ 11,429	10,330,202		10,341,631
Stock-based compensation expense		304,824		304,824
Net loss			(5,684,038)	(5,684,038)
Issuance of common stock upon exercise of warrants (in shares)	19,089,361
Issuance of common stock upon exercise of warrants	$ 19,089	7,760,887		7,779,976
Balance (in shares) at Jun. 30, 2020	63,998,298
Balance at Jun. 30, 2020	$ 63,999	130,220,772	(97,408,116)	32,876,655
Balance (in shares) at Mar. 31, 2020	34,604,436
Balance at Mar. 31, 2020	$ 34,605	112,149,913	(94,282,893)	17,901,625
Issuance of common stock and warrants, net of issuance costs (in shares)	11,428,572
Issuance of common stock and warrants, net of issuance costs	$ 11,429	10,330,202		10,341,631
Stock-based compensation expense		113,444		113,444
Net loss			(3,125,223)	(3,125,223)
Issuance of common stock upon exercise of warrants (in shares)	17,965,290
Issuance of common stock upon exercise of warrants	$ 17,965	7,627,213		7,645,178
Balance (in shares) at Jun. 30, 2020	63,998,298
Balance at Jun. 30, 2020	$ 63,999	$ 130,220,772	$ (97,408,116)	$ 32,876,655

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

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+ Details

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Operating activities:
Net loss	$ (5,684,038)	$ (5,243,207)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	54,041	52,662
Stock-based compensation expense	304,824	240,284
Change in deferred income taxes	(869,705)	(259,256)
Changes in operating assets and liabilities:
Prepaid expenses, deposits and other assets	(604,558)	(106,390)
Accounts payable, accrued expenses and other liabilities	151,411	48,320
Net cash used in operating activities	(6,648,025)	(5,267,587)
Cash flows provided by financing activities:
Proceeds from the sale of common stock	10,827,100	5,731,779
Proceeds from the exercise of common stock warrants	8,038,603
Payment of financing costs	(833,428)	(82,623)
Net cash provided by financing activities	18,032,275	5,649,156
Net increase in cash and cash equivalents	11,384,250	381,569
Cash and cash equivalents at beginning of period	14,177,349	7,991,172
Cash and cash equivalents at end of period	25,561,599	8,372,741
Supplemental disclosure of non-cash investing and financing activities:
Offering costs in accounts payable	148,900	80,206
Operating lease right of use asset and current and noncurrent liability		$ 334,205

Note 1 - Organization and Description of Business

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Nature of Operations [Text Block]

1.	Organization and Description of Business

Diffusion Pharmaceuticals Inc. (“Diffusion” or the “Company”), a Delaware corporation, is a clinical stage biotechnology company developing new treatments for life-threatening conditions by improving the body's ability to bring oxygen to the areas where it is needed most. The Company is developing its lead product candidate, transcrocetinate sodium, also known as trans sodium crocetinate (“TSC”), for use in those life-threatening conditions in which cellular oxygen deprivation (“hypoxia”) is the basis for significant unmet medical needs. TSC is designed to safely and selectively target and re-oxygenate the micro-environment of hypoxic cells, with potential uses in many indications, including COVID-

19,

stroke, oncology, and cardiovascular disease.

The Company intends to begin

first

enrollment in

2020

in its planned international TSC/COVID-

program, designed to test TSC in a total of approximately

424

COVID-

patients with symptoms of impaired respiratory function and low oxygen levels. Low oxygen levels are a frequent result of damage to the lungs, often leading to organ failure, the leading cause of death in COVID-

patients. Diffusion believes TSC's oxygen-enhancing mechanism could provide an important new treatment option.

In stroke, TSC helps promote the diffusion of oxygen into those brain cells in which oxygen-deprivation causes neuronal death resulting in patient mortality or morbidity. In cancer, TSC re-oxygenates treatment-resistant cancerous tissue, making the cancer cells up to

three

times more susceptible to the therapeutic effects of standard-of-care radiation therapy and chemotherapy.

In addition to the TSC programs, the Company is exploring alternatives regarding how best to capitalize upon our product candidate RES-

529,

which

may

include possible out-licensing and other options. RES-

529

is a novel

PI3K/Akt/mTOR

pathway inhibitor which has completed

two

Phase

clinical trials for age-related macular degeneration and is in preclinical development in oncology, specifically GBM. RES-

529

has shown activity in both in vitro and in vivo glioblastoma animal models and has been demonstrated to be orally bioavailable and capable of crossing the blood brain barrier.

Note 2 - Liquidity

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Liquidity Disclosure [Text Block]

Liquidity

The Company has

not

generated any revenues from product sales and has funded operations primarily from the proceeds of public and private offerings of equity, convertible debt and convertible preferred stock. Substantial additional financing will be required by the Company to continue to fund its research and development activities.

assurance can be given that any such financing will be available when needed or that the Company's research and development efforts will be successful.

The Company regularly explores alternative means of financing its operations and seeks funding through various sources, including public and private securities offerings, collaborative arrangements with

third

parties and other strategic alliances and business transactions. The Company currently does

not

have any commitments to obtain additional funds and

may

be unable to obtain sufficient funding in the future on acceptable terms, if at all. If the Company cannot obtain the necessary funding, it will need to delay, scale back or eliminate some or all of its research and development programs or enter into collaborations with

third

parties to commercialize potential products or technologies that it might otherwise seek to develop or commercialize independently; consider other various strategic alternatives, including a merger or sale of the Company; or cease operations. If the Company engages in collaborations, it

may

receive lower consideration upon commercialization of such products than if it had

not

entered such arrangements or if it entered into such arrangements at later stages in the product development process.

Operations of the Company are subject to certain risks and uncertainties including various internal and external factors that will affect whether and when the Company's product candidates become approved drugs and how significant their market share will be, some of which are outside of the Company's control. The length of time and cost of developing and commercializing these product candidates and/or failure of them at any stage of the drug approval process will materially affect the Company's financial condition and future operations. The Company believes its cash and cash equivalents as of

June 30, 2020

are sufficient to fund operations into the

fourth

quarter of

2021.

Note 3 - Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Significant Accounting Policies [Text Block]

3.	Basis of Presentation and Summary of Significant Accounting Policies

The Summary of Significant Accounting Policies included in the Company's Form

-K for the year ended

December

31,

2019,

filed with the Securities and Exchange Commission on

March 17, 2020

have

not

materially changed, except as set forth below.

Basis of Presentation

The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as found in the Accounting Standard Codification (“ASC”) and Accounting Standards Updates (“ASUs”) of the Financial Accounting Standards Board (“FASB”), and with the instructions to Form

-Q and Article

of Regulation S-

of the Securities and Exchange Commission (the “SEC”). In the opinion of management, the accompanying unaudited interim consolidated financial statements of the Company include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the unaudited interim consolidated financial statements) considered necessary to present fairly the Company's financial position as of

June

30,

2020,

its results of operations for the

three

and

six

months ended

June

30,

2020

and

2019

and cash flows for the

six

months ended

June

30,

2020

and

2019.

Operating results for the

six

months ended

June

30,

2020

are

not

necessarily indicative of the results that

may

be expected for the year ending

December

31,

2020.

The unaudited interim consolidated financial statements presented herein do

not

contain the required disclosures under GAAP for annual financial statements. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the annual audited financial statements and related notes as of and for the year ended

December

31,

2019

filed with the SEC on Form

-K on

March 17, 2020.

Use of Estimates

The preparation of the unaudited interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date the financial statements and reported amounts of expense during the reporting period. The full extent to which the COVID-

pandemic will directly or indirectly impact our business, results of operations and financial condition, including sales, expenses, reserves and allowances, clinical trials, research and development costs and employee-related amounts, will depend on future developments that are highly uncertain, including as a result of new information that

may

emerge concerning COVID-

19,

governmental and business responses to the ongoing pandemic, further actions taken to contain or treat COVID-

and the speed of the anticipated recovery, as well as the ongoing economic impact on local, regional, national and international markets. The COVID-

pandemic had

material impact on our estimates and assumptions used in the preparation of the unaudited interim consolidated financial statements for the quarterly period ended

June 30, 2020.

Due to the uncertainty of factors surrounding these estimates or judgments, actual results

may

materially vary from our estimates. Estimates and assumptions are periodically reviewed, and the effects of revisions are reflected in the unaudited interim consolidated financial statements in the period they are determined. Our future assessment of the magnitude and duration of COVID-

19,

as well as other factors, could result in material impacts to our consolidated financial statements in future reporting periods.

DIFFUSION PHARMACEUTICALS INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Fair Value of Financial Instruments

Fair value is the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value determination in accordance with applicable accounting guidance requires that a number of significant judgments be made. Additionally, fair value is used on a nonrecurring basis to evaluate assets for impairment or as required for disclosure purposes by applicable accounting guidance on disclosures about fair value of financial instruments. Depending on the nature of the assets and liabilities, various valuation techniques and assumptions are used when estimating fair value. The carrying amounts of certain of the Company's financial instruments, including cash equivalents and accounts payable are shown at cost, which approximates fair value due to the short-term nature of these instruments. The Company follows the provisions of FASB ASC Topic

820,

Fair Value Measurement

, for financial assets and liabilities measured on a recurring basis. The guidance requires fair value measurements be classified and disclosed in

one

of the following

three

categories:

•

Level

Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

•

Level

Quoted prices in markets that are

not

active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liabilities.

•

Level

Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or

market activity.

The following fair value hierarchy table presents information about the Company's cash equivalents measured at fair value on a recurring basis:

	March 31, 2020
	(Level 1)		(Level 2)		(Level 3)
Assets
Cash equivalents	$	25,383,744	$	—	$	—

	December 31, 2019
	(Level 1)		(Level 2)		(Level 3)
Assets
Cash equivalents	$	14,006,193	$	—	$	—

Intangible Asset

The Company's RES-

529

intangible asset is assessed for impairment annually on

October 1

of the Company's fiscal year or more frequently if impairment indicators exist. There was

impairment to the Company's RES-

529

intangible asset recognized during the

three

six

months ended

June

30,

2020

and

2019.

DIFFUSION PHARMACEUTICALS INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Net Loss Per Common Share

Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted net loss per share includes the effect, if any, from the potential exercise or conversion of securities, such as convertible debt, convertible preferred stock, common stock warrants, stock options and unvested restricted stock that would result in the issuance of incremental shares of common stock. In computing the basic and diluted net loss per share applicable to common stockholders, the weighted average number of shares remains the same for both calculations due to the fact that when a net loss exists, dilutive shares are

not

included in the calculation as the impact is anti-dilutive.

The following potentially dilutive securities outstanding as of

June

30,

2020

and

2019

have been excluded from the computation of diluted weighted average shares outstanding, as they would be anti-dilutive:

	Six Months Ended June 30,
	2020		2019
Common stock warrants		9,117,209		3,469,925
Stock options		1,427,829		309,276
Unvested restricted stock awards		98,100		—
		10,643,138		3,779,201

Recently Adopted Accounting Pronouncements

August 2018,

the FASB issued ASU

2018

13,

Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurements,

which changes the fair value measurement disclosure requirements of ASC

820.

The goal of the ASU is to improve the effectiveness of ASC

820's

disclosure requirements by providing users of the financial statements with better information about assets and liabilities measured at fair value in the financial statements and notes thereto. The Company adopted ASU

No.

2018

in the

first

quarter of

2020

and the adoption did

not

have a material impact on the Company's consolidated financial statements.

Note 4 - Accrued Expenses and Other Current Liabilities

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]

4.	Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:

	June 30, 2020		December 31, 2019
Accrued payroll and payroll related expenses		252,194		182,708
Accrued professional fees		—		48,338
Accrued clinical studies expenses		52,705		57,378
Other accrued expenses		12,176		70,108
Total	$	317,075	$	358,532

Note 5 - Stockholders' Equity and Common Stock Warrants

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

5.	Stockholders' Equity and Common Stock Warrants

2020

Common Stock Offering

May 2020,

the Company completed a public offering (the

“May 2020

Offering”) of

11,428,572

shares of its common stock for a purchase price of

$1.05

per share for net proceeds of

$10.3

million after deducting commissions, discounts and other offering costs. In addition, at the closing of the

May 2020

Offering, the Company issued warrants to purchase up to

571,429

shares of common stock to designees of the placement agent for the

May 2020

Offering. The placement agent's warrants have an exercise price of

$1.3125

per share and a term of

five

years from the date of issuance.

Additionally, in

May 2020,

the Company entered into a warrant exercise agreement with an investor (the

“May 2020

investor warrant exercise”) who held existing warrants to purchase up to an aggregate of

5,000,000

shares of our common stock at an exercise price of

$0.35

per share (the “Prior Warrant”). In consideration for the exercise of the the Prior Warrants for cash and an additional

$0.125

per each share of common stock in the Prior Warrant being exercised, the exercising investor received new unregistered warrants to purchase up to an aggregate of

5,000,000

shares of common stock in a private placement. The warrants are exercisable immediately at an exercise price of

$0.5263

per share and exercisable until

November 8, 2025.

The Company recognized a deemed dividend of

$2.0

million to reflect the value as determined by a Black-Scholes option-pricing model of the consideration given above the additional cash received as an inducement for the investor to exercise the warrants. This deemed dividend is recorded in the Company's statement of operations during the

three

months ended

June 30, 2020

as an increase to the net loss attributable to common stockholders for purposes of computing net loss per share, basic and diluted.

In connection with the

May 2020

investor warrant exercise, the Company issued warrants to purchase up to

250,000

shares of common stock to the placement agent with an exercise price of

$0.5938

per share and otherwise have identical terms to the warrants issued to the investor.

Common Stock Warrants

As of

June

30,

2020,

the Company had the following warrants outstanding to acquire shares of its common stock:

	Outstanding		Range of exercise price per shar			Expiration dates
Common stock warrants issued in 2017 related to Series A convertible preferred stock offering		903,870		$33.30		March 2022
Common stock warrants issued in 2018 related to the common stock offering		1,181,375	$12.00	-	$15.00	January 2023
Common stock warrants issued related to the May 2019 offering		1,382,913	$5.00	-	$6.11875	November 2024
Common stock warrants issued related to the November 2019 offering		514,283	$0.35	-	$0.4375	May 2024
Common stock warrants issued related to the December 2019 offering		313,339		$0.6981		December 2024
Common stock warrants issued related to the May 2020 offering		571,429		$1.3125		May 2025
Common stock warrants issued related to May 2020 investor warrant exercise		4,250,000	$0.5263	-	$0.5938	November 2025
		9,117,209

During the

six

months ended

June 30, 2020,

warrants expired, and

19,089,361

warrants were exercised for

19,089,361

shares of common stock resulting in net proceeds of

$7.8

million.

Note 6 - Stock-based Compensation

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

6.	Stock-Based Compensation

2015

Equity Plan

The Diffusion Pharmaceuticals Inc.

2015

Equity Incentive Plan, as amended (the

"2015

Equity Plan"), provides for increases to the number of shares reserved for issuance thereunder each

January 1

equal to

4.0%

of the total shares of the Company's common stock outstanding as of the immediately preceding

December 31,

unless a lesser amount is stipulated by the Compensation Committee of the Company's board of directors. Accordingly,

1,339,215

shares were added to the reserve as of

January 1, 2020,

which shares

may

be issued in connection with the grant of stock-based awards, including stock options, restricted stock, restricted stock units, stock appreciation rights and other types of awards as deemed appropriate, in each case, in accordance with the terms of the

2015

Equity Plan. As of

June 30, 2020,

there were

142,302

shares of common stock available for future issuance under the

2015

Equity Plan.

The Company recorded stock-based compensation expense in the following expense categories of its unaudited interim consolidated statements of operations for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Research and development	$	91,896	$	13,577	$	188,426	$	27,173
General and administrative		21,548		135,503		116,398		213,111
Total stock-based compensation expense	$	113,444	$	149,080	$	304,824	$	240,284

The following table summarizes the activity related to all stock options for the

six

months ended

June

30,

2020:

	Number of Options			Weighted average exercise price per share		Weighted average remaining contractual life (in years)
Balance at January 1, 2020		309,276		$	55.78
Granted		1,118,700			0.58
Expired		(147	)		142.50
Outstanding at June 30, 2020		1,427,829		$	12.53		8.9
Exercisable at June 30, 2020		660,504		$	26.17		8.2

The weighted average grant date fair value of stock option awards granted was

$0.46

per share during the

six

months ended

June

30,

2020.

options were exercised during any of the periods presented. At

June

30,

2020,

there was

$0.5

million of unrecognized compensation expense that will be recognized over a weighted-average period of

1.5

years.

Options granted were valued using the Black-Scholes option-pricing model and the weighted average assumptions used to value the options granted during the

six

months ended

June

30,

2020

were as follows:

	2020
Expected term (in years)		5.59
Risk-free interest rate		1.3	%
Expected volatility		115.1	%
Dividend yield		—	%

Restricted Stock Awards

During the

six

months ended

June

30,

2020,

the Company granted

98,100

restricted stock awards to a member of the board of directors of the Company. The grant date fair value of each restricted stock award granted during the

six

months ended

June

30,

2020

was

$0.51.

The shares begin to vest

months after the grant date. The Company recognized approximately

$4,000

and

$8,000

in expense related to this award during the

three

and

six

months ended

June

30,

2020,

respectively. At

June

30,

2020,

there was approximately

$42,000

of unrecognized compensation cost that will be recognized over a weighted average period of

2.58

years.

Note 7 - Commitments and Contingencies

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

7.	Commitments and Contingencies

Office Space Rental

The Company has a non-cancelable operating lease for office and laboratory space in Charlottesville, Virginia, which began in

April 2017

and as of

June

30,

2020,

has a remaining lease term of approximately

1.8

years. The Company adopted ASC

842

in the

first

quarter of

2019

and as a result of the adoption, the Company recognized a current operating lease liability of

$0.1

million and a noncurrent operating lease liability of

$0.2

million with a corresponding ROU asset of the combined amounts, which is based on the present value of the minimum rental payments of the lease. The discount rate used to account for the Company's operating lease under ASC

842

is the Company's estimated incremental borrowing rate of

10%.

The original term of the lease ends in the

second

quarter of

2022

and the Company has an option to extend for another

five

(

) years. This option to extend was

not

recognized as part of the Company's measurement of the ROU asset and operating lease liability as of

June

30,

2020.

Rent expense related to the Company's operating lease for both the

three

months ended

June

30,

2020

and

2019

was approximately

$30,000

Rent expense for the

six

months ended

June

30,

2020

and

2019

was approximately

$60,000

and

$50,000,

respectively. Future minimum rental payments under the Company's non-cancelable operating lease at

June

30,

2020

was as follows:

	Rental Commitments
2020		58,575
2021		118,519
2022		39,735
Total		216,829
Less: imputed interest		(21,950	)
	$	194,879

Research and Development Arrangements

In the course of normal business operations, the Company enters into agreements with universities and contract research organizations, or CROs, to assist in the performance of research and development activities and contract manufacturers to assist with chemistry, manufacturing, and controls related expenses. Expenditures to CROs represent a significant cost in clinical development for the Company. The Company could also enter into additional collaborative research, contract research, manufacturing, and supplier agreements in the future, which

may

require upfront payments and long-term commitments of cash.

Defined Contribution Retirement Plan

The Company has established a

401

(k) defined contribution plan (the

“401

(k) Plan”) that covers all employees who qualify under the terms of the plan. Eligible employees

may

elect to contribute to the

401

(k) Plan up to

90%

of their compensation, limited by the IRS-imposed maximum. The Company provides a safe harbor match with a maximum amount of

of the participant's compensation. The Company made matching contributions under the

401

(k) Plan of approximately

$14,000

and

$20,000

for the

three

months ended

June 30, 2020

and

2019,

respectively and matched approximately

$31,000

and

$38,000

during the

six

months ended

June 30, 2020

and

2019,

respectively.

Legal Proceedings

August 7, 2014,

a complaint was filed in the Superior Court of Los Angeles County, California by Paul Feller, the Company's former Chief Executive Officer under the caption

Paul Feller v. RestorGenex Corporation, Pro Sports & Entertainment, Inc., ProElite, Inc. and Stratus Media Group, GmbH

(Case

No.

BC553996

). The complaint asserts various causes of action, including, among other things, promissory fraud, negligent misrepresentation, breach of contract, breach of employment agreement, breach of the covenant of good faith and fair dealing, violations of the California Labor Code and common counts. The plaintiff is seeking, among other things, compensatory damages in an undetermined amount, punitive damages, accrued interest and an award of attorneys' fees and costs. On

December 30, 2014,

the Company filed a petition to compel arbitration and a motion to stay the action. On

April 1, 2015,

the plaintiff filed a petition in opposition to the Company's petition to compel arbitration and a motion to stay the action. After a hearing for the petition and motion on

April 14, 2015,

the Court granted the Company's petition to compel arbitration and a motion to stay the action. On

January 8, 2016,

the plaintiff filed an arbitration demand with the American Arbitration Association. On

November 19, 2018

at an Order to Show Cause Re Dismissal Hearing, the Court found sufficient grounds

not

to dismiss the case, and an arbitration hearing has been scheduled for

November 2020.

The Company believes this matter is without merit and intends to defend the arbitration vigorously. Because this matter is in an early stage, the Company is unable to predict its outcome and the possible loss or range of loss, if any, associated with its resolution or any potential effect the matter

may

have on the Company's financial position. Depending on the outcome or resolution of this matter, it could have a material effect on the Company's financial position.

Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

-Q and Article

of Regulation S-

June

30,

2020,

its results of operations for the

three

and

six

months ended

June

30,

2020

and

2019

and cash flows for the

six

months ended

June

30,

2020

and

2019.

Operating results for the

six

months ended

June

30,

2020

are

not

necessarily indicative of the results that

may

be expected for the year ending

December

31,

2020.

The unaudited interim consolidated financial statements presented herein do

not

December

31,

2019

filed with the SEC on Form

-K on

March 17, 2020.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

may

emerge concerning COVID-

19,

governmental and business responses to the ongoing pandemic, further actions taken to contain or treat COVID-

and the speed of the anticipated recovery, as well as the ongoing economic impact on local, regional, national and international markets. The COVID-

pandemic had

material impact on our estimates and assumptions used in the preparation of the unaudited interim consolidated financial statements for the quarterly period ended

June 30, 2020.

Due to the uncertainty of factors surrounding these estimates or judgments, actual results

may

19,

as well as other factors, could result in material impacts to our consolidated financial statements in future reporting periods.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

820,

Fair Value Measurement

, for financial assets and liabilities measured on a recurring basis. The guidance requires fair value measurements be classified and disclosed in

one

of the following

three

categories:

•

Level

Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

•

Level

Quoted prices in markets that are

not

active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liabilities.

•

Level

Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or

market activity.

The following fair value hierarchy table presents information about the Company's cash equivalents measured at fair value on a recurring basis:

	March 31, 2020
	(Level 1)		(Level 2)		(Level 3)
Assets
Cash equivalents	$	25,383,744	$	—	$	—

	December 31, 2019
	(Level 1)		(Level 2)		(Level 3)
Assets
Cash equivalents	$	14,006,193	$	—	$	—

Goodwill and Intangible Assets, Policy [Policy Text Block]

Intangible Asset

The Company's RES-

529

intangible asset is assessed for impairment annually on

October 1

of the Company's fiscal year or more frequently if impairment indicators exist. There was

impairment to the Company's RES-

529

intangible asset recognized during the

three

six

months ended

June

30,

2020

and

2019.

Earnings Per Share, Policy [Policy Text Block]

Net Loss Per Common Share

not

included in the calculation as the impact is anti-dilutive.

The following potentially dilutive securities outstanding as of

June

30,

2020

and

2019

have been excluded from the computation of diluted weighted average shares outstanding, as they would be anti-dilutive:

	Six Months Ended June 30,
	2020		2019
Common stock warrants		9,117,209		3,469,925
Stock options		1,427,829		309,276
Unvested restricted stock awards		98,100		—
		10,643,138		3,779,201

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Adopted Accounting Pronouncements

August 2018,

the FASB issued ASU

2018

13,

Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurements,

which changes the fair value measurement disclosure requirements of ASC

820.

The goal of the ASU is to improve the effectiveness of ASC

820's

No.

2018

in the

first

quarter of

2020

and the adoption did

not

have a material impact on the Company's consolidated financial statements.

Note 3 - Basis of Presentation and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2020

Notes Tables

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

	March 31, 2020
	(Level 1)		(Level 2)		(Level 3)
Assets
Cash equivalents	$	25,383,744	$	—	$	—

	December 31, 2019
	(Level 1)		(Level 2)		(Level 3)
Assets
Cash equivalents	$	14,006,193	$	—	$	—

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

	Six Months Ended June 30,
	2020		2019
Common stock warrants		9,117,209		3,469,925
Stock options		1,427,829		309,276
Unvested restricted stock awards		98,100		—
		10,643,138		3,779,201

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Note 4 - Accrued Expenses and Other Current Liabilities (Tables)

6 Months Ended

Jun. 30, 2020

Notes Tables

Other Current Liabilities [Table Text Block]

	June 30, 2020		December 31, 2019
Accrued payroll and payroll related expenses		252,194		182,708
Accrued professional fees		—		48,338
Accrued clinical studies expenses		52,705		57,378
Other accrued expenses		12,176		70,108
Total	$	317,075	$	358,532

Note 5 - Stockholders' Equity and Common Stock Warrants (Tables)

6 Months Ended

Jun. 30, 2020

Notes Tables

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

	Outstanding		Range of exercise price per shar			Expiration dates
Common stock warrants issued in 2017 related to Series A convertible preferred stock offering		903,870		$33.30		March 2022
Common stock warrants issued in 2018 related to the common stock offering		1,181,375	$12.00	-	$15.00	January 2023
Common stock warrants issued related to the May 2019 offering		1,382,913	$5.00	-	$6.11875	November 2024
Common stock warrants issued related to the November 2019 offering		514,283	$0.35	-	$0.4375	May 2024
Common stock warrants issued related to the December 2019 offering		313,339		$0.6981		December 2024
Common stock warrants issued related to the May 2020 offering		571,429		$1.3125		May 2025
Common stock warrants issued related to May 2020 investor warrant exercise		4,250,000	$0.5263	-	$0.5938	November 2025
		9,117,209

Note 6 - Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2020

Notes Tables

Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Research and development	$	91,896	$	13,577	$	188,426	$	27,173
General and administrative		21,548		135,503		116,398		213,111
Total stock-based compensation expense	$	113,444	$	149,080	$	304,824	$	240,284

Share-based Payment Arrangement, Option, Activity [Table Text Block]

	Number of Options			Weighted average exercise price per share		Weighted average remaining contractual life (in years)
Balance at January 1, 2020		309,276		$	55.78
Granted		1,118,700			0.58
Expired		(147	)		142.50
Outstanding at June 30, 2020		1,427,829		$	12.53		8.9
Exercisable at June 30, 2020		660,504		$	26.17		8.2

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	2020
Expected term (in years)		5.59
Risk-free interest rate		1.3	%
Expected volatility		115.1	%
Dividend yield		—	%

Note 7 - Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2020

Notes Tables

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

	Rental Commitments
2020		58,575
2021		118,519
2022		39,735
Total		216,829
Less: imputed interest		(21,950	)
	$	194,879

Note 3 - Basis of Presentation and Summary of Significant Accounting Policies - Fair Value on Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Inputs, Level 1 [Member]
Cash equivalents	$ 25,383,744	$ 14,006,193
Fair Value, Inputs, Level 2 [Member]
Cash equivalents
Fair Value, Inputs, Level 3 [Member]
Cash equivalents

Note 3 - Basis of Presentation and Summary of Significant Accounting Policies - Outstanding Dilutive Securities (Details) - shares	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Anti-dilutive securities (in shares)	10,643,138	3,779,201
Warrant [Member]
Anti-dilutive securities (in shares)	9,117,209	3,469,925
Share-based Payment Arrangement, Option [Member]
Anti-dilutive securities (in shares)	1,427,829	309,276
Restricted Stock [Member]
Anti-dilutive securities (in shares)	98,100

Note 4 - Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Accrued payroll and payroll related expenses	$ 252,194	$ 182,708
Accrued professional fees		48,338
Accrued clinical studies expenses	52,705	57,378
Other accrued expenses	12,176	70,108
Total	$ 317,075	$ 358,532

Note 5 - Stockholders' Equity and Common Stock Warrants (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	May 31, 2020	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Deemed Dividend From Warrant Exchange		$ 1,950,378		$ 1,950,378
Class of Warrant or Rights, Expired (in shares)				0
Class of Warrant or Right, Exercised During Period (in shares)				19,089,361
Stock Issued During Period, Shares, Exercise Of Warrants (in shares)				19,089,361
Proceeds From Warrant Exercises, Net				$ 7,800,000
The May 2020 Offering Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)	571,429
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 1.3125	$ 1.3125		$ 1.3125
Warrants and Rights Outstanding, Term (Year)	5 years
Prior Warrant [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)	5,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 0.35
Class of Warrant or Right, Exchange, Additional Consideration Per Share (in dollars per share)	$ 0.125
New Warrants Issued May 8, 2020 [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)	5,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 0.5263
The May 2020 PA Warrants [Member] \| H.C Wainwright & Co., LLC [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)	250,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 0.5938
The May 2020 Offering [Member]
Stock Issued During Period, Shares, New Issues (in shares)	11,428,572
Shares Issued, Price Per Share (in dollars per share)	$ 1.05
Proceeds from Issuance of Common Stock	$ 10,300,000

Note 5 - Stockholders' Equity and Common Stock Warrants - Warrants Outstanding to Acquire Shares of Its Common Stock (Details) - $ / shares	Jun. 30, 2020	May 31, 2020
Common stock warrants, outstanding (in shares)	9,117,209
Warrants Attached to Series A Convertible Preferred Stock [Member]
Common stock warrants, outstanding (in shares)	903,870
Range of exercise price (in dollars per share)	$ 33.30
Warrants Issued in Connection with the January 2018 Offering [Member]
Common stock warrants, outstanding (in shares)	1,181,375
Warrants Issued in Connection with the January 2018 Offering [Member] \| Minimum [Member]
Range of exercise price (in dollars per share)	$ 12
Warrants Issued in Connection with the January 2018 Offering [Member] \| Maximum [Member]
Range of exercise price (in dollars per share)	$ 15
Warrants Issued in Connection with May 2019 Public Offering [Member]
Common stock warrants, outstanding (in shares)	1,382,913
Warrants Issued in Connection with May 2019 Public Offering [Member] \| Minimum [Member]
Range of exercise price (in dollars per share)	$ 5
Warrants Issued in Connection with May 2019 Public Offering [Member] \| Maximum [Member]
Range of exercise price (in dollars per share)	$ 6.11875
Warrants Issued in Connection with the November 2019 Offering [Member]
Common stock warrants, outstanding (in shares)	514,283
Warrants Issued in Connection with the November 2019 Offering [Member] \| Minimum [Member]
Range of exercise price (in dollars per share)	$ 0.35
Warrants Issued in Connection with the November 2019 Offering [Member] \| Maximum [Member]
Range of exercise price (in dollars per share)	$ 0.4375
Warrants Issued in Connection with the December 2019 Offering [Member]
Common stock warrants, outstanding (in shares)	313,339
Range of exercise price (in dollars per share)	$ 0.6981
The May 2020 Offering Warrants [Member]
Common stock warrants, outstanding (in shares)	571,429
Range of exercise price (in dollars per share)	$ 1.3125	$ 1.3125
The May 2020 Investor Warrant Exercise [Member]
Common stock warrants, outstanding (in shares)	4,250,000
The May 2020 Investor Warrant Exercise [Member] \| Minimum [Member]
Range of exercise price (in dollars per share)	$ 0.5263
The May 2020 Investor Warrant Exercise [Member] \| Maximum [Member]
Range of exercise price (in dollars per share)	$ 0.5938

Note 6 - Stock-based Compensation (Details Textual) - USD ($)		3 Months Ended		6 Months Ended
	Jan. 01, 2020	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)				$ 0.46
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares)				0	0
Share-based Payment Arrangement, Expense		$ 113,444	$ 149,080	$ 304,824	$ 240,284
Share-based Payment Arrangement, Option [Member]
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total		500,000		$ 500,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)				1 year 182 days
Restricted Stock [Member] \| Director [Member]
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total		42,000		$ 42,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)				2 years 211 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)				98,100
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)				$ 0.51
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Month)				1 year 180 days
Share-based Payment Arrangement, Expense		$ 4,000		$ 8,000
Equity Incentive Plan 2015 [Member]
Percentage of Total Shares Eligible for Plan Reserve, On an Annual Basis				4.00%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares)	1,339,215
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)		142,302		142,302

Note 6 - Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Stock-based compensation expense	$ 113,444	$ 149,080	$ 304,824	$ 240,284
Research and Development Expense [Member]
Stock-based compensation expense	91,896	13,577	188,426	27,173
General and Administrative Expense [Member]
Stock-based compensation expense	$ 21,548	$ 135,503	$ 116,398	$ 213,111

Note 6 - Stock-based Compensation - Stock Option Activity (Details)	6 Months Ended
	Jun. 30, 2020 $ / shares shares
Options outstanding, number (in shares) \| shares	309,276
Options outstanding, weighted-average exercise price (in dollars per share) \| $ / shares	$ 55.78
Granted (in shares) \| shares	1,118,700
Granted, weighted-average exercise price (in dollars per share) \| $ / shares	$ 0.58
Expired (in shares) \| shares	(147)
Expired, weighted-average exercise price (in dollars per share) \| $ / shares	$ 142.50
Options outstanding, number (in shares) \| shares	1,427,829
Options outstanding, weighted-average exercise price (in dollars per share) \| $ / shares	$ 12.53
Options outstanding, weighted-average remaining contractual life (Year)	8 years 328 days
Exercisable (in shares) \| shares	660,504
Exercisable, weighted-average exercise price (in dollars per share) \| $ / shares	$ 26.17
Exercisable, weighted-average remaining contractual life (Year)	8 years 73 days

Note 6 - Stock-based Compensation - Fair Value Assumptions (Details)	6 Months Ended
	Jun. 30, 2020
Expected term (Year)	5 years 215 days
Risk-free interest rate	1.30%
Expected volatility	115.10%
Dividend yield

Note 7 - Commitments and Contingencies (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Jan. 01, 2019
Lessee, Operating Lease, Remaining Lease Term (Year)	1 year 292 days		1 year 292 days
Operating Lease, Liability, Current	$ 109,808		$ 109,808		$ 111,477	$ 100,000
Operating Lease, Liability, Noncurrent	$ 85,071		$ 85,071		$ 135,566	$ 200,000
Lessee, Operating Lease, Discount Rate	10.00%		10.00%
Lessee, Operating Lease, Renewal Term (Year)	5 years		5 years
Operating Lease, Expense	$ 30,000	$ 30,000	$ 60,000	$ 50,000
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent			90.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay			4.00%
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 14,000	$ 20,000	$ 31,000	$ 38,000

Note 7 - Commitments and Contingencies - Future Minimum Rental Payments (Details)	Jun. 30, 2020 USD ($)
2020	$ 58,575
2021	118,519
2022	39,735
Total	216,829
Less: imputed interest	(21,950)
Operating Lease, Liability, Total	$ 194,879