Intellect Neurosciences 10-Q 12 May 15 2015 Q3 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	9 Months Ended
	Mar. 31, 2015	11-May-15
Document And Entity Information [Abstract]
Entity Registrant Name	Intellect Neurosciences, Inc.
Entity Central Index Key	1337905
Current Fiscal Year End Date	-24
Entity Filer Category	Smaller Reporting Company
Trading Symbol	ILNS
Entity Common Stock, Shares Outstanding		3,370,648
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Mar-15
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2015

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Jun. 30, 2014
Current assets:
Cash and cash equivalents	$309,628
Due from licensee
Total current assets	309,628
Security deposits	2,250	2,250
Total Assets	311,878	2,250
Current Liabilities:
Accounts payable and accrued expenses	2,617,020	2,682,272
Accrued interest - convertible promissory notes	1,621,316	1,047,383
Derivative instruments	6,883,239	7,209,188
Preferred stock dividend payable	18,594,792	15,032,543
Convertible promissory notes - current, net of debt discount of $438,740 and $167,408, respectively	1,771,260	1,464,452
Total Current liabilities	31,487,627	27,435,838
Long Term Debt
Convertible promissory notes - long term, net of debt discount of $152,864 and $936,297, respectively	617,136	727,203
Total Liabilities	32,104,763	28,163,041
Capital deficiency:
Common stock, par value $0.001 per share, 2,000,000,000 shares authorized; 2,664,048 and 1,638,048 issued and outstanding at March 31, 2015 and June 30, 2014, respectively	2,664	1,638
Additional paid in capital	72,094,946	70,780,961
Accumulated Deficit	-103,890,605	-98,943,510
Total Capital Deficiency	-31,792,885	-28,160,791
Total Liabilities and Capital Deficiency	311,878	2,250
Series B Convertible Preferred Stock [Member]
Capital deficiency:
Convertible Preferred Stock	75	75
Series C Convertible Preferred Stock [Member]
Capital deficiency:
Convertible Preferred Stock	10	21
Series D Convertible Preferred Stock [Member]
Capital deficiency:
Convertible Preferred Stock	3	3
Series E Convertible Preferred Stock [Member]
Capital deficiency:
Convertible Preferred Stock	21	21
Series F Convertible Preferred Stock [Member]
Capital deficiency:
Convertible Preferred Stock	$1

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	2,000,000,000	2,000,000,000
Common stock, shares issued	2,664,048	1,638,048
Common stock, shares outstanding	2,664,048	1,638,048
Convertible Notes Payable Current [Member]
Debt Instrument, Unamortized Discount	$438,740	$167,408
Convertible Notes Payable Noncurrent [Member]
Debt Instrument, Unamortized Discount	152,864	936,297
Series B Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$0.01	$0.01
Preferred stock, shares authorized	459,309	459,309
Preferred stock, shares issued	75,751	75,751
Preferred Stock, Shares Outstanding	75,751	75,751
Preferred stock, liquidated (in dollars)	1,325,644	1,325,644
Series C Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$0.01	$0.01
Preferred stock, shares authorized	25,000	25,000
Preferred stock, shares issued	10,365	20,977
Preferred Stock, Shares Outstanding	10,365	20,977
Preferred stock, liquidated (in dollars)	10,327,000	20,977,000
Series D Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$0.01	$0.01
Preferred stock, shares authorized	25,000	25,000
Preferred stock, shares issued	2,533	2,533
Preferred Stock, Shares Outstanding	2,533	2,533
Preferred stock, liquidated (in dollars)	2,533,000	2,533,000
Series E Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$0.01	$0.01
Preferred stock, shares authorized	25,000	25,000
Preferred stock, shares issued	20,805	20,805
Preferred Stock, Shares Outstanding	20,805	20,805
Preferred stock, liquidated (in dollars)	20,805,000	20,805,000
Series F Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$0.01	$0.01
Preferred stock, shares authorized	25,000	25,000
Preferred stock, shares issued	1,200	1,200
Preferred Stock, Shares Outstanding	1,200	1,200
Preferred stock, liquidated (in dollars)	$1,200,000	$1,200,000

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Revenues:
License fees	$1,200,000
Total revenue	1,200,000
Costs and Expenses:
Research and development	31,202	68,400	4,001
General and administrative	1,786,230	741,335	528,800	94,667
Total cost and expenses	1,817,432	809,735	532,801	94,667
Loss from operations	-617,432	-809,735	-532,801	-94,667
Other income/(expenses):
Interest expense, net of interest income	-4,718,857	-6,561,445	-1,255,149	-1,033,537
Changes in fair value of derivative instruments	389,194	32,675	-5,989,647	16,033
Total other income/(expense):	-4,329,663	-6,528,770	-7,244,796	-1,017,504
Net (loss)	-4,947,095	-7,338,505	-7,777,597	-1,112,171
Deemed preferred stock dividend
Net loss allocable to common shareholders	($4,947,095)	($7,338,505)	($7,777,597)	($1,112,171)
Basic and diluted loss per share	($2.27)	($6.23)	($3.03)	($0.80)
Weighted average number of shares outstanding:
Basic and diluted	2,183,018	1,178,347	2,563,262	1,392,493

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss)	($7,777,597)	($1,112,171)
Adjustments to reconcile net loss to net cash used in operating activities:
Change in fair value of derivative instruments	-389,194	-32,675
Stock and warrant based compensation	115,000	370,000
Non-cash interest expense	4,711,168	6,561,445
Change in assets and liabilities
Accounts payable and accrued expenses	-65,251	-92,807
Net cash used in operating activities	-575,372	-532,542
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible notes	45,000	552,510
Proceeds from issuance of preferred stock	1,200,000
Repayments of convertible notes	-360,000	-25,000
Net cash provided by financing activities	885,000	527,510
NET INCREASE (DECREASE) IN CASH	309,628	-5,032
CASH - BEGINNING OF PERIOD		5,138
CASH - END OF PERIOD	309,628	106
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for: Interest
Cash paid during the period for: Taxes
Non-cash financing activities
Conversion of convertible notes and interest to common stock	131,929	131,181
Conversion of preferred stock to common stock		55,267
Debt discount recognized as derivative liability	$45,000	$342,500

Basis_of_Presentation

Basis of Presentation	9 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Basis of Presentation	Note 1. Basis of Presentation
	The accompanying unaudited consolidated condensed financial statements presented herein have been prepared in accordance with the instructions to Form 10-Q and do not include all the information and note disclosures required by accounting principles generally accepted in the United States. The consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014 filed with the Securities and Exchange Commission (the “SEC”) on October 14, 2014. In the opinion of management, this interim information includes all material adjustments, which are of a normal and recurring nature, necessary for fair presentation.
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. Actual results could differ from those estimates. Estimates that are particularly susceptible to change include assumptions used in determining the fair value of securities owned or issued and non-readily marketable securities.
	The results of operations for the nine and three months ended March 31, 2015 are not necessarily indicative of the results to be expected for the entire year or for any other period.
	On August 12, 2014, the board of directors approved an amendment to the Company’s Certificate of Incorporation, as amended, to effect a 1-for-250 reverse stock split on the issued and outstanding common shares. All relevant information relating to numbers of shares and warrants and per share information have been retrospectively adjusted to reflect the reverse stock split for all periods presented. The reverse split was effected on February 11, 2015.
	We adopted early application of Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements effective June 30, 2014, therefore, we no longer present or disclose inception-to-date information and other remaining disclosure requirements of Topic 915.

Business_Description_and_Going

Business Description and Going Concern	9 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Description and Going Concern	2. Business Description and Going Concern
	Intellect Neurosciences, Inc., a Delaware corporation, (“Intellect”, “our”, “us”, “we” or the “Company” refer to Intellect Neurosciences, Inc. and its subsidiary) is a biopharmaceutical company, which together with its subsidiary, Intellect USA, Inc. (“Intellect USA”), is engaged in the discovery and development of disease-modifying therapeutic agents for the treatment and prevention of neurodegenerative conditions, collectively known as proteinopathies, which include Alzheimer’s (“AD”), Parkinson’s and Huntington disease. Since our inception in 2005, we have devoted substantially all of our efforts and resources to research and development activities and advancing our patent estate. We operate under a single segment. We have had no product sales from inception through March 31, 2015 but we have received $11,716,667 in license fees from inception through March 31, 2015.
	On December 31, 2014, the Company and Pfizer Inc. and Rinat Neuroscience Corp. (collectively, “Pfizer”) executed a Settlement Agreement (the “Settlement Agreement”) to resolve ongoing litigation in connection with In the matter of Intellect Neurosciences, Inc. v. Pfizer Inc. and Rinat Neuroscience Corp., Supreme Court for the State of New York, County of New York, Index No. 653320/2012 (the “Action”).
	Pursuant to the terms of the Settlement Agreement, Pfizer agreed to pay the Company $1.2 million to settle the Action and to withdraw the IPR petition with respect to the associated Intellect patent filed by Pfizer with the USPTO on November 24, 2014. Each of the parties agreed to bear their own legal costs and attorneys’ fees. The Settlement Agreement constitutes a settlement of the disputed claims and is not in any way an admission of liability as to any claim, contention or cause of action.
	Our core business strategy is to build a portfolio of compounds with the potential to treat or prevent neurodegenerative diseases, develop each to pre-determined milestones, and license them to pharmaceutical companies for advanced development and commercialization. To supplement our own work, we intend to license promising novel technologies and early stage compounds from academia and other biotechnology companies. We intend to obtain revenues from licensing fees, milestone payments, development fees, royalties and/or sales related to the use of our drug candidates or intellectual property for specific therapeutic indications or applications.
	As of March 31, 2015, we had no self-developed or licensed products approved for sale by the U.S. Food and Drug Administration (“FDA”). There can be no assurance that our research and development efforts will be successful, that any products developed by any of our licensees will obtain necessary government regulatory approval or that any approved products will be commercially viable. In addition, we operate in an environment of rapid change in technology and are dependent upon the continued services of our current employees, consultants and subcontractors.
	Since our inception in 2005, we have generated losses from operations and we anticipate that we will continue to generate significant losses from operations for the foreseeable future. We have limited capital resources and operations since inception have been funded with the proceeds from equity and debt financings and license fee arrangements. As of March 31, 2015, we had approximately $310,000 of cash. We anticipate that our existing capital resources will enable us to continue operations for the next four months. If we fail to raise additional capital or obtain substantial cash inflows from existing or potential partners within the next few months, we may be forced to cease operations. We cannot assure you that financing will be available in a timely manner, on favorable terms or at all.
	These consolidated financial statements are presented on the basis that we will continue as a going concern. The going concern concept contemplates the realization of assets and satisfaction of liabilities in the normal course of business. No adjustment has been made to the carrying amount and classification of our assets and the carrying amount of our liabilities based on the going concern uncertainty

Summary_of_Significant_Account

Summary of Significant Accounting Policies	9 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	3. Summary of Significant Accounting Policies
	Principles of Consolidation. The consolidated financial statements include the accounts of our wholly owned subsidiary, Intellect USA.
	Use of Estimates. The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States involves the use of estimates and assumptions that affect the recorded amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates include the fair value of derivative instruments, including stock options and warrants to purchase our common stock, recognition of clinical trial costs, certain consulting expenses and deferred taxes. Actual results may differ substantially from these estimates.
	Revenue Recognition. We recognize revenue in accordance with authoritative accounting guidance, which provides that non-refundable upfront and research and development milestone payments and payments for services are recognized as revenue as the related services are performed over the term of the collaboration.
	Convertible Instruments. We evaluate and account for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities”. Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument.
	We account for convertible instruments (when we have determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: We record when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. We also record when necessary, deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the transaction and the effective conversion price embedded in the preferred shares.
	Common Stock Purchase Warrants.  We classify as equity any contracts that require physical settlement or net-share settlement or provide us a choice of net-cash settlement or settlement in our own shares (physical settlement or net-share settlement) provided that such contracts are indexed to our own stock as defined in ASC 815-40 ("Contracts in Entity's Own Equity"). We classify as assets or liabilities any contracts that require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside our control) or give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). We assess classification of our common stock purchase warrants and other free standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required.
	Preferred Stock. We apply the guidance enumerated in ASC 480 “Distinguishing Liabilities from Equity” when determining the classification and measurement of preferred stock. Preferred shares subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. We classify conditionally redeemable preferred shares (if any), which includes preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our control, as temporary equity. At all other times, we classified our preferred shares in stockholders’ equity.
	Derivative Instruments. Our derivative financial instruments consist of embedded derivatives related to the convertible debt, warrants and beneficial conversion features embedded within our convertible debt.  The accounting treatment of derivative financial instruments requires that we record the derivatives and related warrants at their fair values as of the inception date of the debt agreements and at fair value as of each subsequent balance sheet date.  Any change in fair value was recorded as non-operating, non-cash income or expense at each balance sheet date.  If the fair value of the derivatives was higher at the subsequent balance sheet date, we recorded a non-operating, non-cash charge.  If the fair value of the derivatives was lower at the subsequent balance sheet date, we recorded non-operating, non-cash income.
	During the six and three month period ended December 31, 2014, we recognized other income of $6,378,841 and $782,582, respectively, relating to the change in fair value of the derivative liabilities, which are recorded at fair value.  At December 31, 2014 and June 30, 2014, there were approximately $830,000 and $7.2 million of derivative liabilities outstanding, respectively.
	Our derivative instruments were valued using the Black-Scholes option pricing model, using the following assumptions during the quarter ended December 31, 2014:
	Estimated dividends	None
	Expected volatility	188%
	Risk-free interest rate	1.73%
	Expected term (years)	1.0 - 5.0 years

Notes_Payable

Notes Payable	9 Months Ended
	Mar. 31, 2015
Debt Disclosure [Abstract]
Notes Payable	4. Notes Payable
	The following table presents the components of Convertible Notes Payable at March 31, 2015 and June 30, 2014:
				March 31,2015			30-Jun-14
	(a)		Convertible Notes issued during fiscal year ended June 30, 2010	$	80,000		$	80,000
	(b)		Convertible Notes issued during fiscal year ended June 30, 2011	$	1,150,000		$	1,150,000
	(c )		Convertible Notes issued during fiscal year ended June 30, 2012	$	301,500		$	301,500
			Convertible Notes issued during fiscal year ended June 30, 2013	$	1,141,000		$	1,141,000
			Convertible Notes issued during fiscal year ended June 30, 2014	$	622,500		$	622,500
			Convertible Notes issued during three months ended September 30, 2015	$	45,000
			Convertible Notes repaid during three months ended September 30, 2015	$	(305,000	)
			Convertible Notes repaid during three months ended March 31, 2015	$	(55,000	)
			Balance at End of Period	$	2,980,000		$	3,295,000
			Less debt discount:	$	591,604		$	1,103,345
			Convertible Notes Payable, Net	$	2,388,396		$	2,191,655
			Classified as follows on the accompanying consolidated balance sheets:
			Current portion of Convertible Notes Payable	$	1,771,260		$	1,464,452
			Long term portion of Convertible Notes Payable	$	617,136		$	727,203
				$	2,388,396		$	2,191,655
		All of the foregoing convertible notes carry interest at 14% annually, mature three years from the issue date and are convertible into the Company's common shares at a conversion price of $1.25 per share except for notes with an aggregate principal amount of $420,000 and $500,000, whch are convertible into the Company's common shares at a conversion price of $0.08 and $0.14 per share, respectively.
	(a)	During fiscal year ended June 30, 2010, we issued Convertible Promissory Notes of $730,000. As of June 30, 2014, Notes of $80,000 were in default. Notes of $62,500 were repaid in July 2014.
	(b)	During fiscal year ended June 30, 2011, we issued Convertible Promissory Notes  of $1,150,000. As of June 30, 2014, these Notes were in default.  Notes of $10,000, $237,500 and $55,000 were repaid in January 2014, July 2014 and March 2015, respectively.
	(c)	During fiscal year ended June 30, 2012, we issued Convertible Promissory Notes  of $401,500. Notes of $100,000 were rconverted into common shares in October 2013.
			Convertibe Notes Payable are payable as follows:
			Fiscal year ended June 30, 2015				$	1,171,500
			Fiscal year ended June 30, 2016				$	1,161,000
			Fiscal year ended June 30, 2017				$	622,500
			Fiscal year ended June 30, 2018				$	25,000
			Total				$	2,980,000

Convertible_Preferred_Stock_an

Convertible Preferred Stock and Derivative Liability	9 Months Ended
	Mar. 31, 2015
Equity [Abstract]
Convertible Preferred Stock and Derivative Liability	5. Convertible Preferred Stock and Derivative Liability
	Series B Convertible Preferred Stock
	The Series B Convertible Preferred Stock carries a cumulative dividend of 6% per annum and a stated value of $17.50 per share. Each share is convertible into 0.05 common shares based on the current conversion price of $375.
	Series C Convertible Preferred Stock
	The Series C Convertible Preferred Stock carries a cumulative dividend of 14% per annum and a stated value of $1,000 per share. Each share is convertible into 800 common shares based on the current conversion price of $1.25. During the nine month period ended March 31, 2015, 1,283 shares were converted into 1,026,000 common shares.
	Series D Convertible Preferred Shares
	The Series D Convertible Preferred Stock carries a cumulative dividend of 8% per annum and a stated value of $1,000 per share. Each share is convertible into 800 common shares based on the current conversion price of $1.25. During the nine month period ended March 31, 2015 no shares were converted.
	Series E Convertible Preferred Shares
	The Series E Convertible Preferred Stock carries a cumulative dividend of 8% per annum and a stated value of $1,000 per share. Each share is convertible into 400 common shares based on the current conversion price of $2.50. During the nine month period ended March 31, 2015 no shares were converted.
	Series F Convertible Preferred Shares
	On July 25, 2014, we entered into a stock purchase agreement with certain accredited investors whereby we issued 1,200 shares of Series F Convertible Preferred Stock and warrants to purchase 9,600,000 shares of common stock (the “Financing”).
	Each share of Series F Preferred Stock has a stated value and liquidation preference of $1,000, and accrues a dividend of 8% of the Stated Value per annum, and is convertible at any time into 4,000 common shares. The Series F Preferred holders vote together with holders of Common Stock on an as converted basis. The Warrants are exercisable for a period of five (5) years from the date of issuance and are exercisable into shares of Common Stock at an exercise price of $.25 per share.
	In connection with the Financing, the Company filed a (i) Certificate of Amendment to the Certificate of Designations, Preferences and Rights of Series B Convertible Preferred Stock, (ii) Certificate of Amendment to the Certificate of Designations, Preferences and Rights of Series C Convertible Preferred Stock, (iii) Certificate of Amendment to the Certificate of Designations, Preferences and Rights of Series D Convertible Preferred Stock and (iv) Certificate of Amendment to the Certificate of Designations, Preferences and Rights of Series E Convertible Preferred Stock.
	In connection with the Financing, the Company and a majority of each Series B, Series C, Series D and Series E Preferred Stock, by written consent, agreed to the amendment of each respective series as follows:
		•	Series B Preferred Stock · Eliminate the ratchet provision for subsequent issuances of securities.
		•	Series C Preferred Stock · The conversion price per share of Common Stock will be $0.005; and eliminate the ratchet provision for subsequent issuances of securities.
		•	Series D Preferred Stock · The conversion price per share of Common Stock will be $0.005; and eliminate the ratchet provision for subsequent issuances of securities.
		•	Series E Preferred Stock · Eliminate the ratchet provision for subsequent issuances of securities.
		•	Series B, Series C, Series D and Series E Preferred Stock · Waive the covenant of the Company to refrain from issuing any shares of capital stock senior to or on parity with each series of preferred stock, and to reserve and keep available unissued shares of Common Stock for the purpose of effecting the conversion of the shares of each series of preferred stock for a period of six (6) months from the Closing Date.
	In connection with the Financing, pursuant to consents and waivers obtained from holders of the Company’s outstanding convertible promissory notes (the “Promissory Notes”) their respective Promissory Notes were amended as follows, effective upon the issuance of one or more shares of Series F Preferred Stock: (i) eliminate the ratchet provision for subsequent issuances of securities going forward, (ii) waive the covenant of the Company to reserve and keep available unissued shares of Common Stock for the purpose of effecting the conversion of the Promissory Notes and (iii) provide that the conversion price will be $1.25 but for two of the holders holding an aggregate of $920,000 principal amount of Promissory Notes, the conversion price is equal to $0.08 per share of Common Stock and $0.14 per share of Common Stock, respectively.
	In connection with the Financing, the holders of the Company’s outstanding warrants, exclusive of the Warrants issued as part of the Financing, agreed as follows, effective upon the issuance of one or more Series F Preferred Stock: (i) eliminate the ratchet provision for subsequent issuances of securities going forward, (ii) waive the covenant of the Company to reserve and keep available unissued shares of Common Stock for the purpose of effecting the conversion of the Warrants for a period of six months from the Closing Date and (iii) provide that the exercise price of the Warrants be the effective price per share, upon cashless exercise, shall be 50% of the fair market value of the Common Stock on the date of exercise.
	In connection with the Financing, the Company repaid $300,000 of principal on outstanding promissory notes of a certain investor and purchased from such investor convertible preferred stock, and dividends accrued thereon, having an aggregate stated value of $16,750,000 for the total consideration of $100.
	Based on authoritative guidance, the entire proceeds from the Financing were credited to preferred stock and additional paid in capital.

Outstanding_Warrants_and_Warra

Outstanding Warrants and Warrant Liability	9 Months Ended
	Mar. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Outstanding Warrants and Warrant Liability	6. Outstanding Warrants and Warrant Liability
	The following table presents the number of Warrants outstanding at the periods ended March 31, 2015 and June 30, 2014. All Warrants have a 5 year term and are exercisable at December 31, 2014. All Warrants other than the Series F Warrants have an exercise price of $2.50 per common share. The Series F Warrants have an exercise price of $.25 per common share.
	Warrants outstanding at June 30, 2014	2,742,000
	Issued	9,630,000
	Exercised	-
	Expired	-
	Warrants outstanding at March 31, 2015	12,372,000

Capital_Deficiency

Capital Deficiency	9 Months Ended
	Mar. 31, 2015
Equity Method Investments and Joint Ventures [Abstract]
Capital Deficiency	7. Capital Deficiency
	Common stock
	In July 2014, we issued 200,000 shares of our common stock to holders of Series C Convertible Preferred Stock upon their exercise of the conversion feature contained in those securities.
	In August 2014, we issued 396,000 shares of our common stock to holders of Series C Convertible Preferred Stock upon their exercise of the conversion feature contained in those securities.
	In September 2014, we issued 260,000 shares of our common stock to holders of Series C Convertible Preferred Stock upon their exercise of the conversion feature contained in those securities.
	In January 2015, we issued 80,000 shares of our common stock to holders of Series C Convertible Preferred Stock upon their exercise of the conversion feature contained in those securities.
	In March 2015, we issued 90,000 shares of our common stock to holders of Series C Convertible Preferred Stock upon their exercise of the conversion feature contained in those securities.

Income_Taxes

Income Taxes	9 Months Ended
	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes
	No provision for income taxes has been recorded due to the utilization of net operating losses for which a 100% valuation allowance had been provided.

Subsequent_Events

Subsequent Events	9 Months Ended
	Mar. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	9. Subsequent Events
	Management has evaluated events occurring after the date of these financial statements through the date these financial statements were issued. There were no material subsequent events as of that date other than disclosed below.
	In April 2015, we issued 280,000 and 106,600 shares of our common stock to holders of Series F and Series C Convertible Preferred Stock, respectively, upon their exercise of the conversion feature contained in those securities.
	In May 2015, we issued 120,000 shares of our common stock to holders of Series F Convertible Preferred Stock, upon their exercise of the conversion feature contained in those securities.
	In May 2015, we issued 200,000 shares of our common stock to a consultant in exchange for services to be provided by the consultant to the Company.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation. The consolidated financial statements include the accounts of our wholly owned subsidiary, Intellect USA.
Use of Estimates	Use of Estimates. The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States involves the use of estimates and assumptions that affect the recorded amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates include the fair value of derivative instruments, including stock options and warrants to purchase our common stock, recognition of clinical trial costs, certain consulting expenses and deferred taxes. Actual results may differ substantially from these estimates.
Revenue Recognition	Revenue Recognition. We recognize revenue in accordance with authoritative accounting guidance, which provides that non-refundable upfront and research and development milestone payments and payments for services are recognized as revenue as the related services are performed over the term of the collaboration.
Convertible Instruments	Convertible Instruments. We evaluate and account for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities”. Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument.
	We account for convertible instruments (when we have determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: We record when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. We also record when necessary, deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the transaction and the effective conversion price embedded in the preferred shares.
Common Stock Purchase Warrants	Common Stock Purchase Warrants.  We classify as equity any contracts that require physical settlement or net-share settlement or provide us a choice of net-cash settlement or settlement in our own shares (physical settlement or net-share settlement) provided that such contracts are indexed to our own stock as defined in ASC 815-40 ("Contracts in Entity's Own Equity"). We classify as assets or liabilities any contracts that require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside our control) or give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). We assess classification of our common stock purchase warrants and other free standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required.
Preferred Stock	Preferred Stock. We apply the guidance enumerated in ASC 480 “Distinguishing Liabilities from Equity” when determining the classification and measurement of preferred stock. Preferred shares subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. We classify conditionally redeemable preferred shares (if any), which includes preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our control, as temporary equity. At all other times, we classified our preferred shares in stockholders’ equity.
Derivative Instruments	Derivative Instruments. Our derivative financial instruments consist of embedded derivatives related to the convertible debt, warrants and beneficial conversion features embedded within our convertible debt.  The accounting treatment of derivative financial instruments requires that we record the derivatives and related warrants at their fair values as of the inception date of the debt agreements and at fair value as of each subsequent balance sheet date.  Any change in fair value was recorded as non-operating, non-cash income or expense at each balance sheet date.  If the fair value of the derivatives was higher at the subsequent balance sheet date, we recorded a non-operating, non-cash charge.  If the fair value of the derivatives was lower at the subsequent balance sheet date, we recorded non-operating, non-cash income.
	During the six and three month period ended December 31, 2014, we recognized other income of $6,378,841 and $782,582, respectively, relating to the change in fair value of the derivative liabilities, which are recorded at fair value.  At December 31, 2014 and June 30, 2014, there were approximately $830,000 and $7.2 million of derivative liabilities outstanding, respectively.
	Our derivative instruments were valued using the Black-Scholes option pricing model, using the following assumptions during the quarter ended December 31, 2014:
	Estimated dividends	None
	Expected volatility	188%
	Risk-free interest rate	1.73%
	Expected term (years)	1.0 - 5.0 years

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Schedule of Derivative Instruments [Table Text Block]	Our derivative instruments were valued using the Black-Scholes option pricing model, using the following assumptions during the quarter ended December 31, 2014:
	Estimated dividends	None
	Expected volatility	188%
	Risk-free interest rate	1.73%
	Expected term (years)	1.0 - 5.0 years

Notes_Payable_Tables

Notes Payable (Tables)	9 Months Ended
	Mar. 31, 2015
Debt Disclosure [Abstract]
Convertible Debt [Table Text Block]	The following table presents the components of Convertible Notes Payable at March 31, 2015 and June 30, 2014:
			March 31,2015			30-Jun-14
	(a)	Convertible Notes issued during fiscal year ended June 30, 2010	$	80,000		$	80,000
	(b)	Convertible Notes issued during fiscal year ended June 30, 2011	$	1,150,000		$	1,150,000
	(c )	Convertible Notes issued during fiscal year ended June 30, 2012	$	301,500		$	301,500
		Convertible Notes issued during fiscal year ended June 30, 2013	$	1,141,000		$	1,141,000
		Convertible Notes issued during fiscal year ended June 30, 2014	$	622,500		$	622,500
		Convertible Notes issued during three months ended September 30, 2015	$	45,000
		Convertible Notes repaid during three months ended September 30, 2015	$	(305,000	)
		Convertible Notes repaid during three months ended March 31, 2015	$	(55,000	)
		Balance at End of Period	$	2,980,000		$	3,295,000
		Less debt discount:	$	591,604		$	1,103,345
		Convertible Notes Payable, Net	$	2,388,396		$	2,191,655
		Classified as follows on the accompanying consolidated balance sheets:
		Current portion of Convertible Notes Payable	$	1,771,260		$	1,464,452
		Long term portion of Convertible Notes Payable	$	617,136		$	727,203
			$	2,388,396		$	2,191,655
Schedule of Maturities of Long-term Debt [Table Text Block]		Convertibe Notes Payable are payable as follows:
		Fiscal year ended June 30, 2015				$	1,171,500
		Fiscal year ended June 30, 2016				$	1,161,000
		Fiscal year ended June 30, 2017				$	622,500
		Fiscal year ended June 30, 2018				$	25,000
		Total				$	2,980,000

Outstanding_Warrants_and_Warra1

Outstanding Warrants and Warrant Liability (Tables)	9 Months Ended
	Mar. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]	The Series F Warrants have an exercise price of $.25 per common share.
	Warrants outstanding at June 30, 2014	2,742,000
	Issued	9,630,000
	Exercised	-
	Expired	-
	Warrants outstanding at March 31, 2015	12,372,000

Basis_of_Presentation_Details_

Basis of Presentation (Details Textual)	1 Months Ended
	Feb. 11, 2015
Accounting Policies [Abstract]
Stockholders' Equity, Reverse Stock Split	1-for-250

Business_Description_and_Going1

Business Description and Going Concern (Details Textual) (USD $)	3 Months Ended		9 Months Ended		119 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Jun. 30, 2014	Jun. 30, 2013
Business Description and Going Concern [Abstract]
License fees	$1,200,000				$11,716,667
Litigation Settlement, Amount			1,200,000
Cash and Cash Equivalents, At Carrying Value	$309,628	$106	$309,628	$106	$309,628		$5,138

Summary_of_Significant_Account3

Summary of Significant Accounting Policies (Details)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Derivatives, Fair Value [Line Items]
Estimated dividends	0.00%
Expected volatility	188.00%
Risk-free interest rate	1.73%
Minimum [Member]
Derivatives, Fair Value [Line Items]
Expected term (years)		1 year
Maximum [Member]
Derivatives, Fair Value [Line Items]
Expected term (years)		5 years

Summary_of_Significant_Account4

Summary of Significant Accounting Policies (Details Textual) (USD $)	3 Months Ended			6 Months Ended	9 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Jun. 30, 2014
Accounting Policies [Abstract]
Derivative, Gain (Loss) on Derivative, Net, Total	$389,194	$782,582	$32,675	$6,378,841	($5,989,647)	$16,033
Derivative Liabilities		$830,000		$830,000			$7,200,000

Notes_Payable_Details

Notes Payable (Details) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Debt Instrument [Line Items]
Long-term Debt, Gross	$2,980,000	$3,295,000
Less debt discount:	591,604	1,103,345
Convertible Notes Payable, Net	2,388,396	2,191,655
Classified as follows on the accompanying consolidated balance sheets:
Current portion of Convertible Notes Payable	1,771,260	1,464,452
Long term portion of Convertible Notes Payable	617,136	727,203
Convertible Notes Payable	2,388,396	2,191,655
Convertible Notes issued during fiscal year ended June 30, 2010 [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	80,000	80,000
Convertible Notes issued during fiscal year ended June 30, 2011 [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	1,150,000	1,150,000
Convertible Notes issued during fiscal year ended June 30, 2012 [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	301,500	301,500
Convertible Notes issued during fiscal year ended June 30, 2013 [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	1,141,000	1,141,000
Convertible Notes issued during fiscal year ended June 30, 2014 [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	622,500	622,500
Convertible Notes issued during three months ended September 30, 2015
Debt Instrument [Line Items]
Long-term Debt, Gross	45,000
Convertible Notes repaid during three months ended September 30, 2015 [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	-305,000
Convertible Notes repaid during three months ended March 31, 2015 [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	($55,000)

Notes_Payable_Details_1

Notes Payable (Details 1) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Debt Disclosure [Abstract]
Fiscal year ended June 30, 2015	$1,171,500
Fiscal year ended June 30, 2016	1,161,000
Fiscal year ended June 30, 2017	622,500
Fiscal year ended June 30, 2018	25,000
Total	$2,980,000	$3,295,000

Notes_Payable_Details_Textual

Notes Payable (Details Textual) (USD $)	9 Months Ended		1 Months Ended				12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Jul. 31, 2014	Jan. 31, 2014	Oct. 31, 2013	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2014
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	14.00%		14.00%
Debt Instrument, Maturity Date, Description	mature three years from the issue date
Repayments of Convertible Promissory Notes	$360,000	$25,000
Debt Instrument, Convertible, Conversion Shares Amount	131,929	131,181
Convertible Promissory Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	420,000		420,000							500,000
Debt Instrument, Convertible, Conversion Price	$1.25		$1.25
Proceeds from Convertible Promissory Notes							401,500	1,150,000	730,000
Repayments of Convertible Promissory Notes			55,000	237,500	10,000
Convertible notes payable default										80,000
Debt Instrument, Convertible, Conversion Shares Amount						100,000
Repayments of Debt				$62,500
Convertible Promissory Notes [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt Instrument, Convertible, Conversion Price	$0.08		$0.08
Convertible Promissory Notes [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt Instrument, Convertible, Conversion Price	$0.14		$0.14

Convertible_Preferred_Stock_an1

Convertible Preferred Stock and Derivative Liability (Details Textual) (USD $)	9 Months Ended	1 Months Ended
	Mar. 31, 2015	Jul. 25, 2014	Jun. 30, 2014
Convertible Preferred Stock And Derivative Liability [Line Items]
Warrants Expiration, Term	5 years
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	50.00%
Payments for Repurchase of Convertible Preferred Stock	$16,750,000
Repurchase Of Convertible Preferred Stock Purchase Consideration	100
Convertible Promissory Notes [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Repayments of Notes Payable	300,000
Debt Instrument, Face Amount	420,000		500,000
Debt Instrument, Convertible, Conversion Price	$1.25
Convertible Promissory Notes [Member] | Minimum [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Debt Instrument, Convertible, Conversion Price	$0.08
Convertible Promissory Notes [Member] | Maximum [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Debt Instrument, Convertible, Conversion Price	$0.14
Common Stock [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Conversion of Stock, Shares Converted	0
Series B Convertible Preferred Stock [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Preferred Stock, Dividend Rate, Percentage	6.00%
Preferred Stock Initial Conversion Price Per Share	$375
Convertible Preferred Stock, Total Shares Issued Upon Conversion	0.05
Preferred Stock Stated Value Per Share	$17.50
Preferred Stock, Liquidation Preference, Value	1,325,644		1,325,644
Series C Convertible Preferred Stock [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Preferred Stock, Dividend Rate, Percentage	14.00%
Preferred Stock Initial Conversion Price Per Share	$1.25
Convertible Preferred Stock, Total Shares Issued Upon Conversion	800
Preferred Stock Stated Value Per Share	$1,000
Conversion of Stock, Shares Converted	1,026,000
Conversion of Stock, Shares Issued	1,283
Preferred Stock, Liquidation Preference, Value	10,327,000		20,977,000
Convertible Preferred Stock Conversion Price Per Share	$0.01
Series D Convertible Preferred Stock [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Preferred Stock, Dividend Rate, Percentage	8.00%
Preferred Stock Initial Conversion Price Per Share	$1.25
Convertible Preferred Stock, Total Shares Issued Upon Conversion	800
Preferred Stock Stated Value Per Share	$1,000
Conversion of Stock, Shares Converted	0
Preferred Stock, Liquidation Preference, Value	2,533,000		2,533,000
Convertible Preferred Stock Conversion Price Per Share	$0.01
Series E Convertible Preferred Stock [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Preferred Stock, Dividend Rate, Percentage	8.00%
Preferred Stock Initial Conversion Price Per Share	$2.50
Convertible Preferred Stock, Total Shares Issued Upon Conversion	400
Preferred Stock Stated Value Per Share	$1,000
Conversion of Stock, Shares Converted	0
Preferred Stock, Liquidation Preference, Value	20,805,000		20,805,000
Series F Convertible Preferred Stock and warrants [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Convertible Preferred Stock, Total Shares Issued Upon Conversion	4,000
Stock Issued During Period, Shares, New Issues		1,200
Stock Issued During Period, Value, New Issues		9,600,000
Preferred Stock, Liquidation Preference, Value	1,000
Class of Warrant or Right, Exercise Price of Warrants or Rights	$0.25
Series F Convertible Preferred Stock and warrants [Member] | Pre Reverse Stock Split [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Stock Issued During Period, Value, New Issues		24
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		1,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights		$0.00
Series F Convertible Preferred Stock [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Preferred Stock, Dividend Rate, Percentage	8.00%
Preferred Stock, Liquidation Preference, Value	$1,200,000		$1,200,000
Warrants Expiration, Term	5 years

Outstanding_Warrants_and_Warra2

Outstanding Warrants and Warrant Liability (Details)	9 Months Ended
	Mar. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Warrants outstanding at June 30, 2014	2,742,000
Issued	9,630,000
Exercised
Expired
Warrants outstanding at March 31, 2015	12,372,000

Capital_Deficiency_Details_Tex

Capital Deficiency (Details Textual) (Common Stock [Member])	1 Months Ended
	Mar. 31, 2015	Jan. 31, 2015	Sep. 30, 2014	Aug. 31, 2014	Jul. 31, 2014
Common Stock [Member]
Schedule of Equity Method Investments [Line Items]
Stock Issued During Period, Shares, Reverse Stock Splits	90,000	80,000	260,000	396,000	200,000

Income_Taxes_Details_Textual

Income Taxes (Details Textual)	9 Months Ended
	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Percentage Of Valuation Allowance For Operating Loss	100.00%

Subsequent_Events_Details_Text

Subsequent Events (Details Textual) (Subsequent Event [Member])	1 Months Ended
	31-May-15	Apr. 30, 2015
Consultant [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, Reverse Stock Splits	200,000
Series F Convertible Preferred Stock [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, Reverse Stock Splits	120,000	280,000
Series C Convertible Preferred Stock [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, Reverse Stock Splits		106,600