Quarterly report pursuant to Section 13 or 15(d)

Operations and Organization

Operations and Organization
3 Months Ended
Mar. 31, 2012
Operations and Organization  
Operations and Organization
Operations and Organization
Rexahn Pharmaceuticals, Inc. (the "Company", "Rexahn Pharmaceuticals"), a Delaware corporation, is a development stage biopharmaceutical company dedicated to the discovery, development and commercialization of innovative treatments for cancer. In addition, we have two central nervous system ("CNS") candidates, Serdaxin and Zoraxel, that are in clinical stages and the Company is exploring options for further development.    The Company had an accumulated deficit of $59,224,407 at March 31, 2012 and anticipates incurring losses through the remainder of fiscal 2012 and beyond.  The Company has not yet generated commercial sales revenue and has been able to fund its operating losses to date through the sale of its common stock, warrants exercisable for common stock, units, issuance of long-term debt, and proceeds from reimbursed research and development costs.  Management has the capability of managing the Company's operations within existing cash available by focusing on select research and development activities, and selecting projects in conjunction with potential financings and milestones.
Basis of Presentation
The accompanying unaudited condensed financial statements of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for interim financial information.  Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.  In the opinion of the Company's management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the Company's financial position as of March 31, 2012 and December 31, 2011 and the results of operations and cash flows for the three months ended March 31, 2012 and 2011 have been included.  Operating results for the three month period ended March 31, 2012 are not necessarily indicative of results that may be expected for any other interim period or the full fiscal year ending December 31, 2012. The accompanying unaudited financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2011 ("2011 Form 10-K").  Information included in the condensed balance sheet as of December 31, 2011 has been derived from the Company's audited financial statements for the year ended December 31, 2011 included in the 2011 Form 10-K.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  These estimates are based on management's best knowledge of current events and actions the Company may undertake in the future.  Actual results may ultimately differ from those estimates.  These estimates are reviewed periodically and as adjustments become necessary, they are reported in earnings in the period in which they become available.
The Company has reclassified previously reported amortization of Rexgene's research and development arrangement, as disclosed in Note 8, "Deferred Research and Development Arrangement", from revenue to a reduction of research and development expenses in the statement of operations.  The reclassification had no effect on the Company's balance sheets, net loss, or cash flows from operating activities.