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Emmaus Life Sciences, Inc. – ‘10-K’ for 9/30/14 – ‘R11’

On:  Monday, 12/29/14, at 5:19pm ET   ·   For:  9/30/14   ·   Accession #:  1144204-14-76185   ·   File #:  1-35527

Previous ‘10-K’:  ‘10-K/A’ on 1/28/14 for 9/30/13   ·   Next:  ‘10-K/A’ on 1/23/15 for 9/30/14   ·   Latest:  ‘10-K’ on 3/31/23 for 12/31/22

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  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

12/29/14  Emmaus Life Sciences, Inc.        10-K        9/30/14   70:12M                                    Toppan Merrill/FA

Annual Report   —   Form 10-K   —   Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K        Annual Report                                       HTML    750K 
 2: EX-4.4      Instrument Defining the Rights of Security Holders  HTML     37K 
 3: EX-10.89    Material Contract                                   HTML     61K 
 4: EX-10.90    Material Contract                                   HTML     34K 
 5: EX-10.91    Material Contract                                   HTML    107K 
 6: EX-23.1     Consent of Experts or Counsel                       HTML     20K 
 7: EX-31.1     Certification -- §302 - SOA'02                      HTML     25K 
 8: EX-31.2     Certification -- §302 - SOA'02                      HTML     25K 
 9: EX-32.1     Certification -- §906 - SOA'02                      HTML     21K 
10: EX-32.2     Certification -- §906 - SOA'02                      HTML     21K 
49: R1          Document And Entity Information                     HTML     51K 
39: R2          Consolidated Balance Sheets                         HTML    121K 
47: R3          Consolidated Balance Sheets [Parenthetical]         HTML     47K 
51: R4          Consolidated Statements of Operations               HTML    102K 
65: R5          Consolidated Statements of Changes in               HTML    117K 
                Stockholders' Deficit                                            
41: R6          Consolidated Statements of Cash Flows               HTML    140K 
46: R7          Nature of Operations                                HTML     36K 
36: R8          Summary of Significant Accounting Policies          HTML     98K 
27: R9          Discontinued Operations                             HTML     56K 
66: R10         Convertible Debt and Equity Financings              HTML     84K 
53: R11         Derivative Liabilities                              HTML     43K 
52: R12         Stockholders' Deficit                               HTML    335K 
57: R13         Income Taxes                                        HTML     62K 
58: R14         Related Party Transactions                          HTML     86K 
56: R15         Loss Per Share                                      HTML     54K 
59: R16         Commitments and Contingent Liabilities              HTML     61K 
48: R17         Significant Customers                               HTML     26K 
50: R18         Summary of Significant Accounting Policies          HTML    162K 
                (Policies)                                                       
55: R19         Summary of Significant Accounting Policies          HTML     48K 
                (Tables)                                                         
70: R20         Discontinued Operations (Tables)                    HTML     51K 
61: R21         Convertible Debt and Equity Financings (Tables)     HTML     51K 
43: R22         Derivative Liabilities (Tables)                     HTML     38K 
54: R23         Stockholders' Deficit (Tables)                      HTML    300K 
45: R24         Income Taxes (Tables)                               HTML     59K 
22: R25         Loss Per Share (Tables)                             HTML     50K 
62: R26         Commitments and Contingent Liabilities (Tables)     HTML     41K 
67: R27         Nature of Operations (Details Textual)              HTML     47K 
31: R28         Summary of Significant Accounting Policies          HTML     34K 
                (Details)                                                        
30: R29         Summary of Significant Accounting Policies          HTML     44K 
                (Details 1)                                                      
34: R30         Summary of Significant Accounting Policies          HTML    105K 
                (Details Textual)                                                
35: R31         Discontinued Operations (Details)                   HTML     65K 
37: R32         Convertible Debt and Equity Financings (Details)    HTML     59K 
21: R33         Convertible Debt and Equity Financings (Details     HTML    197K 
                Textual)                                                         
60: R34         Derivative Liabilities (Details)                    HTML     35K 
42: R35         Derivative Liabilities (Details Textual)            HTML     56K 
44: R36         Stockholders' Deficit (Details)                     HTML    109K 
25: R37         Stockholders' Deficit (Details 1)                   HTML     44K 
69: R38         Stockholders' Deficit (Details 2)                   HTML     39K 
17: R39         Stockholders' Deficit (Details 3)                   HTML     52K 
38: R40         Stockholders' Deficit (Details 4)                   HTML    181K 
64: R41         Stockholders' Deficit (Details 5)                   HTML     81K 
24: R42         Stockholders' Deficit (Details Textual)             HTML    529K 
29: R43         Income Taxes (Details)                              HTML     49K 
33: R44         Income Taxes (Details1)                             HTML     47K 
40: R45         Income Taxes (Details Textual)                      HTML     28K 
20: R46         Related Party Transactions (Details Textual)        HTML    546K 
26: R47         Loss Per Share (Details)                            HTML     57K 
18: R48         Commitments and Contingent Liabilities (Details)    HTML     61K 
63: R49         Commitments and Contingent Liabilities (Details     HTML     83K 
                Textual)                                                         
23: R50         Significant Customers (Details Textual)             HTML     24K 
68: XML         IDEA XML File -- Filing Summary                      XML     95K 
19: EXCEL       IDEA Workbook of Financial Reports                  XLSX    215K 
28: EXCEL       IDEA Workbook of Financial Reports (.xls)            XLS   2.17M 
11: EX-101.INS  XBRL Instance -- cnso-20140930                       XML   2.73M 
13: EX-101.CAL  XBRL Calculations -- cnso-20140930_cal               XML    142K 
14: EX-101.DEF  XBRL Definitions -- cnso-20140930_def                XML   1.23M 
15: EX-101.LAB  XBRL Labels -- cnso-20140930_lab                     XML   1.45M 
16: EX-101.PRE  XBRL Presentations -- cnso-20140930_pre              XML   1.35M 
12: EX-101.SCH  XBRL Schema -- cnso-20140930                         XSD    274K 
32: ZIP         XBRL Zipped Folder -- 0001144204-14-076185-xbrl      Zip    225K

‘R11’   —   Derivative Liabilities

This is an IDEA Financial Report.  [ Alternative Formats ]

 
v2.4.1.9
DERIVATIVE LIABILITIES
 12 Months Ended
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Fair Value [Text Block]
5.
DERIVATIVE LIABILITIES
 
Effective November 28, 2012, the Company, together with the majority of the note holders of each tranche of notes issued in October 2010, January 2011, October 2011 and February 2011 (the “$1 Notes”) (see Note 4 above), agreed to amend the Notes, pursuant to the terms of the Amended and Restated Consent, Note Amendment and Warrant Forfeiture Agreement (the “Note Agreement”), dated as of October 24, 2012, to (a) extend the maturity date of the Notes to October 1, 2013, (b) set the conversion price at $1.00, subject to adjustment as provided in the Notes and (c) remove full-ratchet anti-dilution protection. In addition, the holders forfeited the warrants they received in connection with the issuance of the Notes, and consented to the 2012 Bridge Financing, the issuance of the October 2012 Notes and to the subordination of the Notes to the October 2012 Notes. Both the convertible notes and warrants had contained ratchet provisions, which under ASC 815 required bifurcation of the conversion feature and warrants for derivative liability treatment. The interest rate on all the Notes remained unchanged at 9% per annum. Using the Black Scholes model, each tranche of Notes, as of November 28, 2012 were valued and compared with the value of the Notes on the prior day with their original maturity dates.  The difference of the two valuation calculations of $556,300 was booked to Other Expenses as a gain on extinguishment of debt. Since November 28, 2012, with the elimination of the warrants and the removal of the ratchet in the convertible debt instruments, which have subsequently been converted into equity, the Company had no derivative liabilities at September 30, 2013.
  
The Black-Scholes option-pricing model with the following assumption inputs:
 
 
 
 
 
 
Annual dividend yield
 
 
-
 
 
 
-
 
Expected life (years)
 
 
3.5
 
 
 
3.5
 
Risk-free interest rate
 
 
0.36
%
 
 
0.35
%
Expected volatility
 
 
113.52
%
 
 
113.62
%
 
During September 2014, the Company raised $1.65 million in a private placement of secured convertible debt at $0.25 per share of Common Stock. This debt instrument also has a ratchet whereby the conversion price of $0.25 per share can be reduced to a minimum of $0.10 per share (see Note 4). The inclusion of this ratchet requires the determination of the fair market carrying value. At issuance, the note discount and derivative liability using the Black-Scholes model was $179,200 and at September 30, 2014, upon revaluation, the derivative liability value was reduced to $153,100 with a resultant gain of $26,100 from derivative liabilities being booked to other income in the income statement.
 
The Black-Scholes option-pricing model with the following assumption inputs:
 
 
 
September 22 to 29, 2014
 
 
Annual dividend yield
 
 
 
-
 
Expected life (years)
 
0.5
 
0.5
 
Risk-free interest rate
 
0.03% - 0.05
%
0.03
%
Expected volatility
 
55
%
55
%

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘10-K’ Filing    Date    Other Filings
Filed on:12/29/14
For Period end:9/30/1410-K/A,  D
10/1/13
9/30/1310-K,  10-K/A,  ARS
11/28/123,  4,  8-K
11/27/12
10/24/12
 List all Filings 
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Filing Submission 0001144204-14-076185   –   Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)
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