Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Mar. 31, 2016 | May. 09, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Sevion Therapeutics, Inc. | |
Entity Central Index Key | 1,035,354 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | SVON | |
Entity Common Stock, Shares Outstanding | 20,420,608 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 1,525,594 | $ 3,334,626 |
Prepaid expenses and other current assets | 78,091 | 395,100 |
Total Current Assets | 1,603,685 | 3,729,726 |
Equipment, furniture and fixtures, net | 105,360 | 185,948 |
Acquired research and development | 8,800,000 | 9,800,000 |
Goodwill | 0 | 5,780,951 |
Security deposits | 50,770 | 50,770 |
TOTAL ASSETS | 10,559,815 | 19,547,395 |
CURRENT LIABILITIES: | ||
Accounts payable | 56,603 | 232,033 |
Accrued expenses | 282,228 | 408,705 |
Other current liabilities | 38,516 | 137,778 |
Total Current Liabilities | 377,347 | 778,516 |
Warrant and stock right liabilities | 920,600 | 2,502,047 |
Deferred tax liability | 3,520,000 | 3,920,000 |
Other liabilities | 99,728 | 122,038 |
TOTAL LIABILITIES | 4,917,675 | 7,322,601 |
STOCKHOLDERS' EQUITY: | ||
Common stock, $0.01 par value, authorized 500,000,000 shares, issued and outstanding 20,420,608 and 18,752,813 at March 31, 2016 and June 30, 2015, respectively | 204,206 | 187,528 |
Capital in excess of par | 119,905,816 | 119,217,880 |
Accumulated deficit | (114,470,236) | (107,182,976) |
Total Stockholders' Equity | 5,642,140 | 12,224,794 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 10,559,815 | 19,547,395 |
Series A Convertible Preferred stock | ||
STOCKHOLDERS' EQUITY: | ||
Preferred Stock Value | 4 | 4 |
Series C Convertible Preferred stock | ||
STOCKHOLDERS' EQUITY: | ||
Preferred Stock Value | $ 2,350 | $ 2,358 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 500,000,000 | 500,000,000 |
Common stock, issued | 20,420,608 | 18,752,813 |
Common stock, outstanding | 20,420,608 | 18,752,813 |
Series A Convertible Preferred Stock | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 10,297 | 10,297 |
Preferred stock, shares outstanding | 380 | 380 |
Preferred stock, liquidation preference | $ 399,008 | $ 399,000 |
Series C Convertible Preferred stock | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 235,837 | 235,837 |
Preferred stock, shares outstanding | 235,004 | 235,837 |
Preferred stock, liquidation preference | $ 2,350 | $ 2,358 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Licensing Revenue | $ 0 | $ 37,500 | $ 75,000 | $ 37,500 |
Operating expenses: | ||||
General and administrative | 331,611 | 1,027,240 | 1,319,986 | 3,055,066 |
Research and development | 576,443 | 235,255 | 1,772,530 | 3,727,341 |
Impairment of goodwill | 2,980,951 | 0 | 5,780,951 | 8,121,966 |
Impairment of acquired R&D | 1,000,000 | 0 | 1,000,000 | 0 |
Impairment and write-off of patents | 0 | 0 | 0 | 2,290,836 |
Total operating expenses | 4,889,005 | 1,262,495 | 9,873,467 | 17,195,209 |
Loss from operations | (4,889,005) | (1,224,995) | (9,798,467) | (17,157,709) |
Other non-operating income (expense) | ||||
Change in fair value of stock right | 742,253 | 315,862 | 0 | |
Change in fair value of warrant liability | 667,639 | 0 | 1,967,700 | 0 |
Interest income (expense) - net | 0 | (2,080) | (371) | 703 |
Net loss before income tax benefit | (3,479,113) | (1,227,075) | (7,515,276) | (17,157,006) |
Income tax benefit | 400,000 | 0 | 400,000 | 0 |
Net loss | (3,079,113) | (1,227,075) | (7,115,276) | (17,157,006) |
Preferred dividends | (9,501) | (9,356) | (171,984) | (41,578) |
Loss applicable to common shares | (3,088,614) | (1,236,431) | (7,287,260) | (17,198,584) |
Other comprehensive loss | 0 | 0 | 0 | 0 |
Comprehensive loss | $ (3,088,614) | $ (1,236,431) | $ (7,287,260) | $ (17,198,584) |
Basic and diluted net loss per common share (in dollars per share) | $ (0.15) | $ (0.09) | $ (0.36) | $ (1.24) |
Basic and diluted weighted-average number of common shares outstanding (in shares) | 20,420,608 | 13,958,261 | 20,282,054 | 13,889,921 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 9 months ended Mar. 31, 2016 - USD ($) | Total | Preferred stock | Common Stock | Capital in Excess of Par Value | Accumulated Deficit |
Beginning Balance at Jun. 30, 2015 | $ 12,224,794 | $ 2,362 | $ 187,528 | $ 119,217,880 | $ (107,182,976) |
Beginning Balance (in shares) at Jun. 30, 2015 | 236,217 | 18,752,813 | |||
Stock issued for Cash | 1,152,397 | $ 667 | $ 9,600 | 1,142,130 | 0 |
Stock issued for Cash (in shares) | 66,667 | 959,996 | |||
Warrant Liability | (559,261) | $ 0 | $ 0 | (559,261) | 0 |
Derivative Stock Right | (142,854) | 0 | 0 | (142,854) | 0 |
Stock-based compensation | 95,008 | 0 | 0 | 95,008 | 0 |
Preferred stock converted into common stock | 0 | $ (675) | $ 6,750 | (6,075) | 0 |
Preferred stock converted into common stock (in shares) | (67,500) | 675,000 | |||
Deemed Dividend Preferred stock | 0 | $ 0 | $ 0 | 135,701 | (135,701) |
Dividends Paid | 6,335 | $ 328 | 23,287 | (17,280) | |
Dividends Paid (in shares) | 32,799 | ||||
Dividends accrued and unpaid at Mar 31, 2016 | (19,003) | 0 | $ 0 | 0 | (19,003) |
Net loss | (7,115,276) | 0 | 0 | 0 | (7,115,276) |
Ending Balance at Mar. 31, 2016 | $ 5,642,140 | $ 2,354 | $ 204,206 | $ 119,905,816 | $ (114,470,236) |
Ending Balance (in shares) at Mar. 31, 2016 | 235,384 | 20,420,608 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (7,115,276) | $ (17,157,006) |
Noncash income related to change in fair value | ||
stock right | (315,862) | 0 |
warrant liability | (1,967,700) | 0 |
Stock-based compensation expense | 95,008 | 877,573 |
Depreciation and amortization | 80,588 | 138,956 |
Impairment of goodwill | 5,780,951 | 8,121,966 |
Impairment of aquired R&D | 1,000,000 | 2,290,836 |
Deferred tax liability reduction for impairment of acquired R&D | (400,000) | 0 |
Write-off of prepaid research supplies | 0 | 669,750 |
Deferred rent | (46,572) | 99,250 |
(Increase) decrease in operating assets: | ||
Prepaid expenses and other current assets | 317,009 | 315,141 |
Security deposit | 0 | (45,599) |
Increase (decrease) in operating liabilities: | ||
Accounts payable | (175,430) | (249,212) |
Accrued expenses | (139,145) | (98,176) |
Deferred revenue | (75,000) | 112,500 |
Net cash used in operating activities | (2,961,429) | (4,924,021) |
Cash flows from investing activities: | ||
Capitalized Patent costs | 0 | (600,081) |
Purchase of equipment, furniture and fixtures | 0 | (117,258) |
Net cash used in investing activities | 0 | (717,339) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock and warrants, net and exercise of warrants and options | 1,152,397 | 0 |
Net cash provided by financing activities | 1,152,397 | 0 |
Net (decrease) increase in cash and cash equivalents | (1,809,032) | (5,641,360) |
Cash and cash equivalents at beginning of period | 3,334,626 | 6,111,340 |
Cash and cash equivalents at end of period | 1,525,594 | 469,980 |
Supplemental disclosure of non-cash transactions: | ||
Conversion of preferred stock into common stock | 6,075 | 2 |
Allocation of equity proceeds to warrants | 559,261 | 0 |
Allocation of equity proceeds to stock rights | 142,854 | 0 |
Allocation of preferred stock proceeds to beneficial conversion feature | 135,701 | 0 |
Issuance of common stock for dividend payments on preferred stock | 23,615 | 41,578 |
Dividends accrued on preferred stock | (19,003) | (19,003) |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | $ 0 | $ 2,209 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 - Basis of Presentation: The financial statements included herein have been prepared by Sevion Therapeutics, Inc. (the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting solely of those which are of a normal recurring nature, necessary to present fairly its financial position as of March 31, 2016 and the results of its operations for the three and nine months ended March 31, 2016 and cash flows for the nine months ended March 31, 2016. Interim results are not necessarily indicative of results for the full fiscal year. |
Liquidity
Liquidity | 9 Months Ended |
Mar. 31, 2016 | |
Liquidity [Abstract] | |
Liquidity | Note 2 Liquidity: As shown in the accompanying condensed consolidated financial statements, the Company has a history of losses with an accumulated deficit of $ 114,470,236 Given the Company’s limited capital resources, management recommended to the Company’s Board of Directors that certain executive level salaries be reduced by upwards of 80%, staff reductions be effected and that there be a temporary reduction of research and development expenditures to support the Company’s goal of cutting expenses and preserving cash on hand. The Company’s Board of Directors approved this recommendation and the reductions went into effect on March 23, 2016. As of March 31, 2016, the Company had cash and cash equivalents in the amount of $ 1,525,594 The Company will need additional capital to operate and expand its research program and plans to raise additional capital possibly through the exercise of outstanding warrants, placement of debt instruments, equity instruments or any combination thereof. However, the Company may not be able to obtain adequate funds for its operations when needed or on acceptable terms. If the Company is unable to raise additional funds, it will need to do one or more of the following: • delay, scale-back or eliminate some or all of its research and product development programs; • license third parties to develop and commercialize products or technologies that it would otherwise seek to develop and commercialize itself; • seek strategic alliances or business combinations; • attempt to sell the Company; • cease operations; or • declare bankruptcy. |
Intangibles
Intangibles | 9 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Patent Costs | Note 3 Intangibles: The Company assesses the impairment in value of intangible assets whenever events or circumstances indicate that their carrying value may not be recoverable. Factors the Company considers important which could trigger an impairment review include the following: • significant negative industry trends; • significant underutilization of the assets; • significant changes in how the Company uses the assets or its plans for their use; and • changes in technology and the appearance of competing technology. If a triggering event occurs and if the Company's review determines that the future undiscounted cash flows related to the groups, including these assets, will not be sufficient to recover their carrying value, the Company will reduce the carrying values of these assets down to the Company’s estimate of fair value. Due to the decrease in the market value of the Company at March 31, 2016 the Company determined that there was a triggering event that required the Company to review if there had been an impairment to the Acquired Research and Development in the amount of $ 9,800,000 2,980,951 2,980,951 0 1,000,000 |
Loss Per Share
Loss Per Share | 9 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Note 4 - Loss Per Share: Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of the Company’s Common Stock assumed to be outstanding during the period of computation. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional shares of Common Stock that would have been outstanding if the potential shares of Common Stock had been issued and if the additional shares of Common Stock were dilutive. For all periods presented, basic and diluted loss per share are the same, as any additional Common Stock equivalents would be anti-dilutive. March 31, Common Stock to be issued upon conversion of convertible preferred stock - Series A 506,666 190,000 Common Stock to be issued upon conversion of convertible preferred stock - Series C 2,350,040 - Outstanding warrants 8,698,580 3,977,594 Outstanding options 1,586,936 2,077,706 Total potentially dilutive shares of Common Stock 13,142,222 6,245,300 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Note 5 Stock-Based Compensation: The terms and vesting schedules for share-based awards vary by type of grant and the employment status of the grantee. Generally, the awards vest based upon time-based conditions or achievement of specified goals and milestones. The Company issued 155,000 The economic values of the options will depend on the future price of the Company's Common Stock, which cannot be forecast with reasonable accuracy. Weighted Aggregate Average Exercise Price Number Exercise Price Range Outstanding, June 30, 2015 1,626,919 $ 4.45 $ 0.54 - $ 140.00 Granted 155,000 $ 0.50 $ 0.50 Exercised - $ - - Cancelled (151,588) 3.99 $.83 - $ 140.00 Expired (43,395) $ 10.88 $.83 - $ 140.00 Outstanding, March 31, 2016 1,586,936 $ 3.94 $ 0.50 - $ 140.00 Options exercisable at March 31, 2016 1,498,454 $ 4.10 As of March 31, 2016, the aggregate intrinsic value of stock options outstanding was $ 0 6.1 0 5.98 3,330,734 Stock-based compensation expense for the three months ended March 31, 2016 and March 31, 2015 amounted to $ 6,175 498,402 95,008 877,573 As of March 31, 2016, total stock-based compensation expense not yet recognized related to stock option grants amounted to approximately $ 72,181 33 |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6 Income Taxes: No provision for income taxes has been made for the nine months ended March 31, 2016 and 2015 given the Company’s losses in 2016 and 2015 and available net operating loss carryforwards. A benefit has not been recorded as the realization of the net operating losses is not assured and the timing in which the Company can utilize its net operating loss carryforwards in any year or in total may be limited by provisions of the Internal Revenue Code regarding changes in ownership of corporations. The deferred tax liability in the amount of $ 3,920,000 400,000 400,000 3,520,000 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7 - Fair Value Measurements: Carrying Fair Value Measurement at Mar 31, 2016 Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 1,525,594 $ 1,525,594 $ - $ - Warrant Liabilities $ 920,600 $ - $ - $ 920,600 Carrying Fair Value Measurement at June 30, 2015 Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 3,334,626 $ 3,334,626 $ - $ - Warrant Liabilities $ 2,502,047 $ - $ - $ 2,502,047 For the Nine months ended March 31, 2016 Beginning Balance $ 2,502,047 Recognition of common stock warrant liability 559,261 Recognition of stock right 142,854 Change in fair value of warrant liabilities, net (1,967,700) Change in fair value of stock right, net (315,862) Ending Balance $ 920,600 |
Warrant Liabilities
Warrant Liabilities | 9 Months Ended |
Mar. 31, 2016 | |
Warrant Liabilities [Abstract] | |
Warrant Liabilities | Note 8 Warrant Liabilities: The warrant liabilities represent the fair value of Common Stock purchase warrants which have exercise price reset features estimated using a Monte Carlo valuation model. The Company computes a valuation using the Monte Carlo model for such warrants to account for the various possibilities that could occur due to changes in the inputs to the model as a result of contractually-obligated changes. These estimates of the likelihood of completing an equity raise that would meet the criteria to trigger the reset provisions are based on numerous factors, including the remaining term of the financial instruments and the Company’s overall financial condition. Changes in the unobservable input values would have likely caused material changes in the fair value of the Company’s Level 3 financial instruments. The significant unobservable input used in the fair value measurement was the estimation of the likelihood of the occurrence of a change to the strike price of the warrants. A significant increase (decrease) in this likelihood would have resulted in a higher (lower) fair value measurement. Date of Issuance March 31, 2016 Estimated life in years 2.50 1.58 Risk-free interest rate (1) 0.91 % 0.68 % Volatility 108.60 % 107.10 % Dividend paid 0.00 % 0.00 % (1) Represents the interest rate on a U.S. Treasury security with a maturity date corresponding to that of the warrant term. |
Series C Preferred Stock
Series C Preferred Stock | 9 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Series C Preferred Stock | Note 9 Series C Preferred Stock. In connection with allocation of the gross proceeds to the issuance of the Series C Preferred Stock, the Company determined that the Series C Preferred Stock’s conversion feature was considered to be beneficial. A beneficial conversion feature requires the Company to record a deemed dividend for a non-detachable conversion feature that is in the money at the issuance date. As a result, the Company recorded a deemed dividend amounting to $ 135,701 During the nine months ended March 31, 2016, 67,500 675,000 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Mar. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 10 Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 requires that a company recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which the company expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). ). In July 2015, the FASB approved a proposal to defer the effective date of the guidance until annual and interim reporting periods beginning after December 15, 2017. The Company does not anticipate that the adoption of this standard will have a material impact on the Company’s financial statements. In June 2014, the FASB issued ASU No. 2014-12, “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period,” (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The Company does not anticipate that the adoption of this standard will have a material impact on the Company’s financial statements. In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern,” (“ASU 2014-15”). ASU 2014-15 amended existing guidance related to the disclosures about an entity’s ability to continue as a going concern. These amendments are intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. These amendments provide guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations in the financial statement footnotes. The amendments are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. The Company does not anticipate that the adoption of this standard will have a material impact on the Company’s financial statements. In November 2014, the FASB issued ASU No. 2014-16, “Derivatives and Hedging (Topic 815), Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity,” (“ASU 2014-16”). All entities are required to use what is called the “whole instrument approach” to determine the nature of a host contract in a hybrid financial instrument issued in the form of a share. The guidance requires issuers and investors to consider all of a hybrid instrument’s stated and implied substantive terms and features, including any embedded derivative features being evaluated for bifurcation. The guidance eliminates the “chameleon approach,” under which all embedded features except the feature being analyzed are considered. The guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. The Company does not anticipate that the adoption of this standard will have a material impact on the Company’s financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”, which supersedes FASB ASC 840. All entities will be required to record operating leases on the balance sheet as assets and liabilities instead of recording only capital (finance) leases on the balance sheet. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2017. The Company does not anticipate that the adoption of this standard will have a material impact on the Company’s financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Compensation Stock Compensation: Improvements to Employee Share-Based Payment Accounting”, which is intended to simplify several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The standard is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early application is permitted. The Company is currently evaluating the impact of adoption on the Company’s financial statements. The Company has assessed other recently issued accounting pronouncements and has determined that they do not apply. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 11 Subsequent Events The Company has evaluated for any subsequent events through the date of the financial statements and has determined that no significant subsequent events have occurred. |
Loss Per Share (Tables)
Loss Per Share (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Weighted Average of Dilutive Shares of Common Stock | Potentially dilutive shares of Common Stock have been excluded from the calculation of the weighted average number of dilutive shares of Common Stock as follows: March 31, Common Stock to be issued upon conversion of convertible preferred stock - Series A 506,666 190,000 Common Stock to be issued upon conversion of convertible preferred stock - Series C 2,350,040 - Outstanding warrants 8,698,580 3,977,594 Outstanding options 1,586,936 2,077,706 Total potentially dilutive shares of Common Stock 13,142,222 6,245,300 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Activity | Stock option activity under the Company’s 2008 Plan and 1998 Plan for the nine months ended March 31, 2016 is summarized as follows: Weighted Aggregate Average Exercise Price Number Exercise Price Range Outstanding, June 30, 2015 1,626,919 $ 4.45 $ 0.54 - $ 140.00 Granted 155,000 $ 0.50 $ 0.50 Exercised - $ - - Cancelled (151,588) 3.99 $.83 - $ 140.00 Expired (43,395) $ 10.88 $.83 - $ 140.00 Outstanding, March 31, 2016 1,586,936 $ 3.94 $ 0.50 - $ 140.00 Options exercisable at March 31, 2016 1,498,454 $ 4.10 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Carried at Fair Value Measured on Recurring Basis | The following tables provide the assets and liabilities carried at fair value measured on a recurring basis as of March 31, 2016 and June 30, 2015: Carrying Fair Value Measurement at Mar 31, 2016 Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 1,525,594 $ 1,525,594 $ - $ - Warrant Liabilities $ 920,600 $ - $ - $ 920,600 Carrying Fair Value Measurement at June 30, 2015 Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 3,334,626 $ 3,334,626 $ - $ - Warrant Liabilities $ 2,502,047 $ - $ - $ 2,502,047 |
Changes in Fair Value of the Company's Level 3 Financial Instruments | For the Nine months ended March 31, 2016 Beginning Balance $ 2,502,047 Recognition of common stock warrant liability 559,261 Recognition of stock right 142,854 Change in fair value of warrant liabilities, net (1,967,700) Change in fair value of stock right, net (315,862) Ending Balance $ 920,600 |
Warrant Liabilities (Tables)
Warrant Liabilities (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Warrant Liabilities [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The assumptions used to value the warrants at the date of issuance and at March 31, 2016 are as follows: Date of Issuance March 31, 2016 Estimated life in years 2.50 1.58 Risk-free interest rate (1) 0.91 % 0.68 % Volatility 108.60 % 107.10 % Dividend paid 0.00 % 0.00 % (1) Represents the interest rate on a U.S. Treasury security with a maturity date corresponding to that of the warrant term. |
Liquidity - Additional Informat
Liquidity - Additional Information (Detail) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 1,525,594 | $ 3,334,626 | $ 469,980 | $ 6,111,340 |
Development Stage Enterprise Deficit Accumulated During Development Stages | $ 114,470,236 | $ 107,182,976 |
Intangibles - Additional Inform
Intangibles - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment Of Intangible Assets Finitelived | $ 2,980,951 | $ 0 | $ 5,780,951 | $ 8,121,966 | |
Acquired Research And Development | 8,800,000 | 8,800,000 | $ 9,800,000 | ||
Goodwill | 0 | 0 | $ 5,780,951 | ||
Asset Impairment Charges, Total | 2,980,951 | ||||
Goodwill, Gross | $ 2,980,951 | 2,980,951 | |||
Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment Of Intangible Assets Finitelived | $ 1,000,000 |
Calculation of Weighted Average
Calculation of Weighted Average Number of Dilutive Shares of Common Stock (Detail) - shares | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Common Stock to be issued upon conversion of convertible preferred stock | 13,142,222 | 6,245,300 |
Series A Preferred stock | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Common Stock to be issued upon conversion of convertible preferred stock | 506,666 | 190,000 |
Series C Preferred Stock | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Common Stock to be issued upon conversion of convertible preferred stock | 2,350,040 | 0 |
Outstanding options | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Common Stock to be issued upon conversion of convertible preferred stock | 1,586,936 | 2,077,706 |
Outstanding warrants | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Common Stock to be issued upon conversion of convertible preferred stock | 8,698,580 | 3,977,594 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options issued | 155,000 | |||
Stock option outstanding intrinsic value | $ 0 | $ 0 | ||
Option outstanding weighted average remaining term | 6 years 1 month 6 days | |||
Exercisable aggregate intrinsic value | $ 0 | $ 0 | ||
Weighted average option exercisable remaining life | 5 years 11 months 23 days | |||
Shares available for future stock option grant | 3,330,734 | 3,330,734 | ||
Stock based compensation | $ 6,175 | $ 498,402 | $ 95,008 | $ 877,573 |
Stock based compensation expense related to stock options, not yet recognized, period of recognition | 33 months | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 72,181 | $ 72,181 |
Stock-Based Compensation Stock
Stock-Based Compensation Stock Option Activity (Detail) | 9 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Aggregate Number | |
Beginning Balance | shares | 1,626,919 |
Granted | shares | 155,000 |
Exercised | shares | 0 |
Cancelled | shares | (151,588) |
Expired | shares | (43,395) |
Ending Balance | shares | 1,586,936 |
Options exercisable at end of Period | shares | 1,498,454 |
Weighted Average Exercise Price | |
Beginning Balance | $ 4.45 |
Granted | 0.50 |
Exercised | 0 |
Cancelled | 3.99 |
Expired | 10.88 |
Ending Balance | 3.94 |
Options exercisable at end of Period | 4.1 |
Exercise Price Range | |
Granted | 0.50 |
Exercised | 0 |
Minimum [Member] | |
Exercise Price Range | |
Beginning Balance | 0.54 |
Cancelled | 0.83 |
Expired | 0.83 |
Ending Balance | 0.50 |
Maximum [Member] | |
Exercise Price Range | |
Beginning Balance | 140 |
Cancelled | 140 |
Expired | 140 |
Ending Balance | $ 140 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Income Tax [Line Items] | |||
Deferred Tax Liabilities, Net | $ 3,520,000 | $ 3,920,000 | |
Increase (Decrease) in Deferred Liabilities, Total | 400,000 | ||
Deferred Income Tax Expense (Benefit) | $ (400,000) | $ 0 |
Assets and Liabilities at Fair
Assets and Liabilities at Fair Value Measured on Recurring Basis (Detail) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant Liabilities | $ 920,600 | $ 2,502,047 |
Fair Value Measurements Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 1,525,594 | 3,334,626 |
Warrant Liabilities | 920,600 | 2,502,047 |
Level 1 | Fair Value Measurements Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, Fair Value | 1,525,594 | 3,334,626 |
Warrant Liabilities | 0 | 0 |
Level 2 | Fair Value Measurements Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, Fair Value | 0 | 0 |
Warrant Liabilities | 0 | 0 |
Level 3 | Fair Value Measurements Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, Fair Value | 0 | 0 |
Warrant Liabilities | $ 920,600 | $ 2,502,047 |
Changes in Fair Value of the Co
Changes in Fair Value of the Company's Financial Instruments (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Beginning Balance | $ 2,502,047 | |||
Recognition of common stock warrant liability | 559,261 | $ 0 | ||
Recognition of stock right | 142,854 | 0 | ||
Change in fair value of warrant liabilities, net | $ (667,639) | $ 0 | (1,967,700) | 0 |
Change in fair value of stock right, net | (742,253) | (315,862) | $ 0 | |
Ending Balance | $ 920,600 | $ 920,600 |
Warrant Liabilities (Detail)
Warrant Liabilities (Detail) - Warrant | 9 Months Ended | |
Mar. 31, 2016 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Estimated life in years | 1 year 6 months 29 days | |
Risk-free interest rate | 0.68% | [1] |
Volatility | 107.10% | |
Dividend paid | 0.00% | |
Date of Issuance | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Estimated life in years | 2 years 6 months | |
Risk-free interest rate | 0.91% | [1] |
Volatility | 108.60% | |
Dividend paid | 0.00% | |
[1] | Represents the interest rate on a U.S. Treasury security with a maturity date corresponding to that of the warrant term. |
Series C Preferred Stock - Addi
Series C Preferred Stock - Additional Information (Detail) | 9 Months Ended |
Mar. 31, 2016USD ($)shares | |
Deemed Dividends On Preferred Stock | $ 0 |
Common stock | |
Deemed Dividends On Preferred Stock | $ 0 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | shares | 675,000 |
Series C Preferred Stock | |
Deemed Dividends On Preferred Stock | $ 135,701 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | shares | 67,500 |