Intellect Neurosciences 10-K 14 Oct 15 2015 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2015	Oct. 09, 2015	Dec. 31, 2014
Document And Entity Information [Abstract]
Entity Registrant Name	Intellect Neurosciences, Inc.
Entity Central Index Key	1,337,905
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Trading Symbol	ILNS
Entity Common Stock, Shares Outstanding		5,567,037
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 810,436

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Current assets:
Cash and cash equivalents	$ 23,858
Total current assets	23,858
Security deposits	2,250	$ 2,250
Total Assets	26,108	2,250
Current Liabilities:
Accounts payable and accrued expenses	2,599,706	2,682,272
Accrued interest - convertible promissory notes	1,447,601	1,047,383
Derivative instruments	2,682,541	7,209,188
Preferred stock dividend payable	11,880,647	15,032,543
Convertible promissory notes - current, net of debt discount of $153,528 and $167,408, respectively	2,166,472	1,464,452
Total Current liabilities	20,776,967	27,435,838
Long Term Debt
Convertible promissory notes - long term, net of debt discount of $298,370 and $936,297, respectively	339,130	727,203
Total Liabilities	21,116,097	28,163,041
Capital deficiency:
Common stock, par value $0.001 per share, 2,000,000,000 shares authorized; 3,550,336 and 1,728,915 issued and outstanding at March 31, 2015 and June 30, 2014, respectively	3,550	1,729
Additional paid in capital	72,144,582	70,780,870
Accumulated Deficit	(93,238,237)	(98,943,510)
Total Capital Deficiency	(21,089,989)	(28,160,791)
Total Liabilities and Capital Deficiency	26,108	2,250
Series B Convertible Preferred Stock [Member]
Capital deficiency:
Convertible Preferred stock	77	77
Series C Convertible Preferred Stock [Member]
Capital deficiency:
Convertible Preferred stock	16	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	19	$ 19
Series F Convertible Preferred Stock [Member]
Capital deficiency:
Convertible Preferred stock	$ 1

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	2,000,000,000	2,000,000,000
Common stock, shares issued	3,550,336	1,728,915
Common stock, shares outstanding	3,550,336	1,728,915
Convertible Notes Payable Current [Member]
Debt Instrument, Unamortized Discount	$ 153,528	$ 167,408
Convertible Notes Payable Noncurrent [Member]
Debt Instrument, Unamortized Discount	$ 298,370	$ 936,297
Series B Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares designated	459,309	459,309
Preferred stock, shares issued	76,887	76,887
Preferred stock, shares outstanding	76,887	76,887
Preferred stock, liquidation preference (in dollars)	$ 1,345,516	$ 1,345,516
Series C Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares designated	25,000	25,000
Preferred stock, shares issued	16,636	20,977
Preferred stock, shares outstanding	16,636	20,977
Preferred stock, liquidation preference (in dollars)	$ 16,635,500	$ 20,977,000
Series D Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares designated	25,000	25,000
Preferred stock, shares issued	2,729	2,729
Preferred stock, shares outstanding	2,729	2,729
Preferred stock, liquidation preference (in dollars)	$ 2,729,036	$ 2,729,036
Series E Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares designated	25,000	25,000
Preferred stock, shares issued	19,233	19,233
Preferred stock, shares outstanding	19,233	19,233
Preferred stock, liquidation preference (in dollars)	$ 19,232,800	$ 19,232,800
Series F Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares designated	25,000	25,000
Preferred stock, shares issued	1,200	1,200
Preferred stock, shares outstanding	1,200	1,200
Preferred stock, liquidation preference (in dollars)	$ 1,200,000	$ 1,200,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Revenues:
License fee	$ 1,200,000
Total revenue	1,200,000
Costs and Expenses:
Research and development	78,854	$ 82,620
General and administrative	2,011,708	1,054,620
Total cost and expenses	2,090,562	1,137,240
Loss from operations	(890,562)	(1,137,240)
Other income/(expenses):
Interest expense	(5,231,163)	(13,168,563)
Changes in fair value of derivative instruments	4,594,134	$ (745,741)
Gain on extinguishment of interest payable	7,232,864
Total other income/(expense):	6,595,835	$ (13,914,304)
Income / (loss) before provision for taxes	$ 5,705,273	$ (15,051,544)
Income tax provision
Net income / (loss) allocable to common shareholders	$ 5,705,273	$ (15,051,544)
Income / (loss) per share
Basic	$ 2.26	$ (11.77)
Diluted	$ 0.05	$ (11.77)
Weighted average number of shares outstanding:
Basic	2,528,108	1,279,007
Diluted	64,398,335	1,279,007

Consolidated Statement of Chang

Consolidated Statement of Changes in Equity Capital Deficiency (USD $) - USD ($)	Common Stock	Series B Preferred Stock	Series C Preferred Stock	Series D Preferred Stock	Series E Preferred Stock	Series F Preferred Stock	Additional paid in capital	Accumulated Deficit	Total
Begning balance, shares at Jun. 30, 2013	926,935		23,525	3,208	19,233
Begning balance, amount at Jun. 30, 2013	$ 927		$ 24	$ 3	$ 19		$ 70,342,567	$ (83,891,966)	$ (13,548,426)
Stock based compensation, shares	156,000
Stock based compensation, amount	$ 156						307,094		307,250
Conversion of promissory notes and interest into common stock, shares	52,732
Conversion of promissory notes and interest into common stock, amount	$ 53						131,876		$ 131,929
Reclassification of Series B Preferred, shares		76,887
Reclassification of Series B Preferred, amount		$ 77					(77)
Conversion of preferred stock and interest into common stock, shares	593,248		(2,548)	(675)					593,248
Conversion of preferred stock and interest into common stock, amount	$ 593		$ (3)				(590)
Net income loss for the period								(15,051,544)	$ (15,051,544)
Ending balance, shares at Jun. 30, 2014	1,728,915	76,887	20,977	2,533	19,233
Ending balance, amount at Jun. 30, 2014	$ 1,729	$ 77	$ 21	$ 3	$ 19		70,780,870	(98,943,510)	(28,160,791)
Stock based compensation, shares	200,000		250
Stock based compensation, amount	$ 200						141,800		142,000
Conversion of promissory notes and interest into common stock, amount									23,529
Issuance of Series F Preferred, shares						1,200
Issuance of Series F Preferred, amount						$ 1	1,199,999		$ 1,200,000
Conversion of preferred stock and interest into common stock, shares	1,621,421		(4,591)			(100)			810,000
Conversion of preferred stock and interest into common stock, amount	$ 1,621		$ (5)				21,913		$ 23,529
Net income loss for the period								5,705,273	5,705,273
Ending balance, shares at Jun. 30, 2015	3,550,336	76,887	16,636	2,533	19,233	1,100
Ending balance, amount at Jun. 30, 2015	$ 3,550	$ 77	$ 16	$ 3	$ 19	$ 1	$ 72,144,582	$ (93,238,237)	$ (21,089,989)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income / (loss)	$ 5,705,273	$ (15,051,544)
Adjustments to reconcile net income / (loss) to net cash used in operating activities:
Change in fair value of derivative instruments	(4,594,134)	745,741
Stock and warrant based compensation	142,000	307,250
Non-cash interest expense	5,223,648	$ 13,168,588
Gain on extinguishment of interest payable	(7,232,864)
Change in assets and liabilities
Security deposits		$ 2,465
Accounts payable and accrued expenses	(82,565)	194,862
Net cash used in operating activities	(838,642)	(632,638)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible notes	15,000	637,500
Proceeds from issuance of preferred stock	1,200,000
Repayments of convertible notes	(352,500)	(10,000)
Net cash provided by financing activities	862,500	627,500
NET INCREASE (DECREASE) IN CASH	$ 23,858	(5,138)
CASH - BEGINNING OF YEAR		$ 5,138
CASH - END OF YEAR	$ 23,858
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest
Taxes
Non-cash financing activities
Conversion of convertible notes and interest to common stock	$ 23,529	$ 131,929
Debt discount recognized as derivative liabiltiy	$ 15,000	$ 637,500

Business Description

Business Description	12 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Description	NOTE 1. Business Description 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 Neurosciences, 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 June 30, 2015 but we have received $ 11,716,667in license fees from inception through June 30, 2015. Our losses from operations have been funded primarily with the proceeds of equity and debt financings and fees from license arrangements. 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 June 30, 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 2. Summary of Significant Accounting Policies Principles of Consolidation. Use of Estimates. Stock-Based Compensation. Research and Development Costs and Clinical Trial Expenses. Revenue Recognition. Convertible Instruments 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 Preferred Derivative Instruments During the years ended June 30, 2015 and 2014, we recognized other income (expense) of $4,594,134 and ($745,741), respectively, relating to recording the derivative instruments fair value. At June 30, 2015 and 2014, there were approximately $2.7 million 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 year ended June 30, 2015 and 2014: Year Ended June 30, 2015 June 30, 2014 Estimated dividends None None Expected volatility 188 % 188 % Risk-free interest rate 0.28% - 0.64 % 1.73 % Expected term (years) 1 - 5 years 1 - 5 years Fair value of financial instruments. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions) We measure derivative liabilities at fair value using the Black-Scholes option pricing model with assumptions that include the fair value of the stock underlying the derivative instrument, the exercise or conversion price of the derivative instrument, the risk free interest rate for a term comparable to the term of the derivative instrument and the volatility rate and dividend yield for our common stock. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The Company has not paid dividends to date and does not expect to pay dividends in the foreseeable future due to its substantial accumulated deficit. Accordingly, expected dividends yields are currently zero. Expected volatility is based principally on an analysis of historical volatilities of similarly situated companies in the marketplace for a number of periods that is at least equal to the contractual term or estimated life of the applicable financial instrument. We also considered the use of the lattice or binomial models with respect to valuing derivative financial instruments that feature anti-dilution price protection; however, the differences in the results are insignificant due to the low probability of triggering price adjustments in such financial instruments. We measure the fair value of all of our derivative liabilities based on Level 3 inputs. The following table provides a summary of the changes in fair value of all financial liabilities measured at fair value on a recurring basis using significant unobservable inputs during the year ended June 30, 2015. Balance – July 1, 2013 $ 3,833,457 Issuances during the year 2,629,990 Changes in fair value included in earnings 745,741 Balance - June 30, 2014 $ 7,209,188 Issuances during the year 67,487 Changes in fair value included in earnings (4,594,134 ) Balance – June 30, 2015 $ 2,682,541 Income taxes ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. Net Loss per Share. New Accounting Pronouncements In August 2014, the FASB issued authoritative guidance that requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern and requires additional disclosures if certain criteria are met. This guidance is effective for fiscal periods ending after December 15, 2016, with early adoption permitted. This accounting standard update is not expected to have any impact on the Company’s financial statements. In June 2014, the FASB issued ASU No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. We have elected to adopt early application of Accounting Standards Update No. 2014-10; accordingly we no longer present or disclose inception-to-date information and other remaining disclosure requirements of Topic 915. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, which supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition”. The core principle of this updated guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new rule also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This guidance is effective, after the recent FASB deferral, for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Companies are permitted to adopt this new rule following either a full or modified retrospective approach. Early adoption is not permitted. Adoption of this ASU is not expected to have any impact on the Company’s financial statements or disclosures. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying financial statements.

Going Concern

Going Concern	12 Months Ended
	Jun. 30, 2015
Going Concern
Going Concern	Note 3. Going Concern 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. 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. As of June 30, 2015, we had negative working capital of $(20,753,109) and our accumulated deficit was $(93,238,237). We had a loss from operations of $(890,562) for the year ended June 30, 2015 and $(1,137,240) for the year ended June 30, 2014. Our cash used in operations was $838,642 and $632,638 for the years ended June 30, 2015 and 2014, respectively. Our capital deficiency was $(21,089,989) as of June 30, 2015. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern. 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 June 30, 2015, we had $23,858 in cash or cash equivalents. On July 1, 2015, we entered into a stock purchase agreement with certain accredited investors whereby we issued to the Investors (i) an aggregate of 3,490 shares of Series G Convertible Preferred Stock; (ii) an aggregate of 1,117 shares of Series H Preferred Stock; and (iii) warrants to purchase an aggregate of 15,000,000 shares of our common stock. We received gross cash proceeds of $750,000. We anticipate that our existing capital resources, taking into account the Series G Financing described in the preceding paragraph, 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.

Convertible Notes Payable

Convertible Notes Payable	12 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Convertible Notes Payable	Note 4. Convertible Notes Payable The following table presents the components of Convertible Notes Payable at year end June 30, 2015 and June 30, 2014: June 30, 2015 June 30, 2014 Convertible Notes issued during fiscal year ended June 30, 2010 $ 17,500 $ 80,000 Convertible Notes issued during fiscal year ended June 30, 2011 850,000 1,150,000 Convertible Notes issued during fiscal year ended June 30, 2012 301,500 301,500 Convertible Notes issued during fiscal year ended June 30, 2013 1,116,000 1,141,000 Convertible Notes issued during fiscal year ended June 30, 2014 657,500 622,500 Convertible Notes issued during fiscal year ended June 30, 2015 15,000 Balance at End of Period $ 2,957,500 $ 3,295,000 Less debt discount: 451,898 1,103,345 Convertible Notes Payable, Net $ 2,505,602 $ 2,191,655 Classified as follows on the accompanying consolidated balance sheets: Current portion of Convertible Notes Payable $ 2,166,472 $ 1,464,452 Long term portion of Convertible Notes Payable 339,130 727,203 $ 2,505,602 $ 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. As of June 30, 2015, convertible notes with an aggregate face amount of $1,169,000 are in default. Convertibe Notes Payable are payable as follows: Past Due $ 1,169,000 Fiscal year ended June 30, 2016 1,116,000 Fiscal year ended June 30, 2017 657,500 Fiscal year ended June 30, 2018 15,000 Total $ 2,957,500

Convertible Preferred Stock

Convertible Preferred Stock	12 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Convertible Preferred Stock	Note 5. Convertible Preferred Stock 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 years ended June 30, 2015 and 2014, 1,013 and 543 shares of Series C Preferred Stock were converted into 810,000 and 216,858 common shares, respectively. In addition, during the year ended June 30, 2015, one of our significant shareholders surrendered shares of Series C Preferred Stock carrying accrued dividends of $7,232,864. Series D Convertible Preferred Stock 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 years ended June 30, 2015 and 2014, zero and 841 shares of Series D Preferred Stock were converted into zero and 336,394 common shares, respectively. 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 $02.50. There were no conversions of Series E Preferred Stock during the last two fiscal years. Series F Convertible Preferred Shares The Series F 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 4,000 common shares based on the current conversion price of $0.25. There were no conversions of Series F Preferred Stock during the year ended June 30, 2015. 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. During the year ended June 30, 2015, 100 shares of series F preferred stock were converted into 400,000 common shares.

Outstanding Warrants

Outstanding Warrants	12 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Outstanding Warrants	Note 6. The following table presents the number of Warrants outstanding at year end June 30, 2015 and June 30, 2014. All Warrants have a 5 year term, an exercise price of $1.25 per common share, except for 44,800 warrants that have an exercise price of $15.625 per share, and are exercisable at June 30, 2015. Warrants outstanding at June 30, 2013 1,595,327 Issued 1,275,000 Exercised — Expired — Warrants outstanding at June 30, 2014 2,870,327 Issued 9,630,000 Exercised — Expired — Warrants outstanding at June 30, 2015 12,500,327 On July 1, 2015, we issued 15 million warrants to investors in connection with the series & Convertible Preferred Stock Financing. See Note 12 - subsequent Events.

Income Taxes

Income Taxes	12 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Note 7. Income Taxes The reconciliation of income tax benefit at the U.S. statutory rate of 34% for the years ended June 30, 2015 and 2014 to the Company’s effective tax rate is as follows: Years Ended June 30, 2015 June 30, 2014 U.S. federal statutory rate -34 % -34 % State income tax, net of federal benefit -6 % -6 % Change in valuation allowance 40 % 40 % Income Tax provision (benefit) 0 % 0 % The tax effects of temporary differences that give rise to the Company’s net deferred tax asset as of June 30, 2015 and 2014 are as follows: Years Ended June 30, 2015 June 30, 2014 Deferred Tax Assets Net operating losses $ 9,200,000 $ 8,500,000 Derivative liability 1,072,000 2,883,700 $ 10,272,000 $ 11,383,700 Less: Valuation allowance (9,200,000 ) (8,500,000 ) Net Deferred Tax Assets $ 1,072,000 $ 2,883,700 Deferred Tax Liabilities Derivative liability $ (1,072,000 ) $ (2,883,700 ) Total Deferred Tax Liabilities $ (1,072,000 ) $ (2,883,700 ) Net Deferred Taxes $ — $ — As of June 30, 2015, the Company had approximately $23,000,000 of Federal and state net operating loss carryovers (“NOLs”) which begin to expire in 2025. Utilization of the NOLs may be subject to limitation under Internal Revenue Code Section 382 should there be a greater than 50% ownership change as determined under regulations. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance against all of the deferred tax asset because it is more likely than not that all of the deferred tax asset will not be realized. The Company files U.S. federal and states of New York and New Jersey tax returns that are subject to audit by tax authorities beginning with the year ended June 30, 2012. The Company is not currently under audit for any tax returns

Capital Deficiency

Capital Deficiency	12 Months Ended
	Jun. 30, 2015
Equity Method Investments and Joint Ventures [Abstract]
Capital Deficiency	Note 8. Capital Deficiency Common stock 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. During the fiscal year ended June 30, 2015, we issued 810,000 shares of our common stock to holders of Convertible Preferred Stock upon their exercise of the conversion feature contained in those securities. During the fiscal year ended June 30, 2015, we issued 200,000 shares of our common stock in consideration for services rendered to the Company. During the fiscal year ended June 30, 2014, we issued 593,248 shares of our common stock to holders of Convertible Preferred Stock upon their exercise of the conversion feature contained in those securities. During the fiscal year ended June 30, 2014, we issued 138,000 shares of our common stock in consideration for services rendered to the Company. During the fiscal year ended June 30, 2014, we issued 18,000 shares of our common stock to charitable organizations as charitable donations.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 9. Commitments and Contingencies. In the ordinary course of business, we enter into agreements with third parties that include indemnification provisions which, in our judgment, are normal and customary for companies in our industry sector. These agreements are typically with business partners, clinical sites, and suppliers. Pursuant to these agreements, we generally agree to indemnify, hold harmless, and reimburse indemnified parties for losses suffered or incurred by the indemnified parties with respect to our product candidates, use of such product candidates, or other actions taken or omitted by us. The maximum potential amount of future payments we could be required to make under these indemnification provisions is unlimited. We have not incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. As a result, the estimated fair value of liabilities relating to these provisions is minimal. Accordingly, we have no liabilities recorded for these provisions as of June 30, 2015 and 2014. In the normal course of business, we may be confronted with issues or events that may result in a contingent liability. These generally relate to lawsuits, claims, environmental actions or the action of various regulatory agencies. If necessary, management consults with counsel and other appropriate experts to assess any matters that arise. If, in management’s opinion, we have incurred a probable loss as set forth by accounting principles generally accepted in the United States, an estimate is made of the loss, and the appropriate accounting entries are reflected in our financial statements. We do not anticipate that liabilities arising out of currently pending or threatened lawsuits and claims will have a material adverse effect on our financial position, results of operations or cash flows.

Stock-Based Compensation Plans

Stock-Based Compensation Plans	12 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation Plans	Note 10. Stock-Based Compensation Plans- In December 2006, our stockholders approved the adoption of the “2006 Employee, Director and Consultant Stock Plan” (the “2006 Stock Plan”), under which 240,000 shares of our common stock are available for issuance under the Plan. The 2006 Stock Plan provides for the grant of either ISOs or non-qualified stock options, which do not qualify as ISOs. The exercise price of all the stock options granted under the 2006 Stock Plan was the closing price of the stock on the day of the grant. As of June 30, 2015 and 2014, there are 228,000 stock options available for grant under the 2006 Stock Plan in each year. A summary of the 2006 Stock Plan is as follows: Weighted Average Exercise Price Instrinisic value Weighted Average Remaining Contractual Life Options outstanding at June 30, 2013 213,243 $ 34.87 $ — 3.35 Expired (201,243 ) $ 34.87 3.35 Balance at June 30, 2014 12,000 $ 0.22 — 2.00 Expired — Balance at June 30, 2015 12,000 $ 0.22 — 1.00 Options vested or expected to vest 12,000 $ 0.22 — 1.00 Total compensation expense recorded during the year ended June 30, 2015 and 2014 for share-based payment awards was $0.

Per Share Data

Per Share Data	12 Months Ended
	Jun. 30, 2015
Income / (loss) per share
Per Share Data	Note 11. Per Share Data The following table sets forth the information needed to compute basic and diluted earnings per share: Year Ended June 30 June 30 2015 2014 Basic EPS Net income (loss) attributable to common stockholders, basic $ 5,705,273 $ (15,051,544 ) Weighted average shares outstanding 2,528,108 1,279,007 Basic income earnings per share $ 2.26 $ (11.77 ) Diluted EPS Net income (loss) attributable to common stockholders, basic $ 5,705,273 Preferred stock interest expense 4,104,496 Interest on convertible notes 1,126,667 Gain on extinguishment of interest payable (7,232,864 ) Change in fair value of derivative liability related to convertible notes (581,974) Net income (loss) attributable to common stockholders, diluted $ 3,121,598 Weighted average shares outstanding 2,528,108 Dilutive effect of stock options — Dilutive effect of warrants 9,600,000 Dilutive effect of convertible preferred shares 35,543,821 Dilutive effect of convertible notes 16,726,406 Diluted weighted average shares outstanding 64,398,335 Diluted earnings (loss) earnings per share $ 0.05 $ (11.77 )

Subsequent Events

Subsequent Events	12 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	Note 12. Subsequent Events In accordance with authoritative guidance, we have evaluated any events or transactions occurring after June 30, 2013, the balance sheet date, through the date of filing of this report and note that there have been no such events or transactions that would require recognition or disclosure in the consolidated financial statements as of and for the year ended June 30, 2015, except as disclosed below. Series G Financing On July 1, 2015, (the “Closing Date”) we entered into a stock purchase agreement (the “Purchase Agreement”) with certain accredited investors (the “Investors”) whereby we issued to the Investors (i) an aggregate of 3,490 shares of Series G Convertible Preferred Stock; (ii) an aggregate of 1,117 shares of Series H Preferred Stock; and (iii) warrants (the “Warrants”) to purchase an aggregate of 15,000,000 shares of common stock, par value $0.001 per share (the “Common Stock”) of the Company (the “Financing”).. In connection with the Financing, the Board of Directors (the “Board”) of the Company approved the filing of a Certificate of Designations, Preferences and Rights of Series G Convertible Preferred Stock (the “Series G Certificate of Designation”) which was filed with and accepted by the Secretary of State of the State of Delaware on June 30, 2015. Pursuant to the Series G Certificate of Designation, we established a new series of 10,000 shares, par value $0.001 per share, of Series G Convertible Preferred Stock (the “Series G Preferred Stock”). The Series G Preferred Stock has a right to a liquidation preference of $2,000 per share and is convertible at any time into shares of our Common Stock at a conversion price of $.10 per share, subject to adjustment. Each share of Series G Preferred Stock has a stated value of $1,000 (the “Stated Value”) and accrues a dividend of 8% of the Stated Value per annum, which is payable annually on June 30th in cash or, at the holder’s option, in Common Stock, or a combination thereof. The Series G Preferred Stock has no voting rights and holders thereof shall 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 of the Company at an exercise price of $.10 per share, subject to adjustment. Pursuant to the Purchase Agreement, we granted holders of previously issued Series C and Series D Preferred Stock the right to exchange their shares of Series C and Series D Preferred Stock for shares of Series G Preferred Stock and holders of previously issued Series B Preferred Stock the right to exchange their shares of Series B Preferred Stock for Series H shares. The stated value of each share of exchanged Series B, Series C and Series D Preferred Stock, plus accrued dividends, shall be treated as the cash value of such shares for purposes of determining the number of shares of Series G and H Preferred Stock to be issued in connection with such exchange. Pursuant to the Series H Certificate of Designations, Preferences and Rights of Series H Convertible Preferred Stock (the “Series H Certificate of Designation”) which was filed on June 30, 2015, we established a new series of 2,000 shares of Series H Preferred Stock. The Series H Preferred Stock has a right to a liquidation preference of $2,000 per share and is convertible into common stock of the Company at a conversion price equal to eight (8) times the Fair Market Value of the underlying Common Stock into which the Series H Preferred Stock are convertible. “Fair Market Value” shall mean the average of the closing price of the Common Stock for the five (5) trading days preceding the exchange date of the Series B Preferred Stock for the Series H Preferred Stock (the “Conversion Price”). The Series H Preferred Stock has no voting rights and holders thereof shall vote together with holders of Common Stock on an as converted basis. In connection with the Financing, we filed a (i) Certificate of Amendment to the Certificate of Designations, Preferences and Rights of Series F Convertible Preferred Stock (the “Series F Certificate of Designation”). The Company and a majority of the Series F Preferred Stock holders, whose agreements contained a “Most Favored Nations” Provision, by written consent, agreed to the amendment of the series as follows, effective as of the Closing Date: Increase the liquidation value to $2.000 per share and amend the Conversion Price to $.10 per share. As part of the Financing, we reduced the exercise price of an aggregate of 9,600,000 warrants previously issued with the Series F Preferred Stock in the July 2014 financing to $.10 per share. We granted the Investors certain piggyback registration rights with respect to the shares of Common Stock underlying the Warrants and issuable upon conversion of the Series G and Series H Preferred Stock. Conversions of preferred stock into common stock During the period beginning on July 1, 2015 and ending on the date of the filing of this Form 10-K, we issued 1,416,700 and 600,000 shares of our common stock to holders of Series C Convertible Preferred Stock and Series F Convertible Preferred Stock, respectively, upon conversion of their preferred shares into common stock. Employment Contract In October 2015, the Company entered into an employment agreement with Elliot Maza, the Company’s Chairman, CEO and CFO. The Agreement is for a period of three (3) years unless terminated prior to expiration. The Agreement provides for an annual base salary of $250,000 with eligibility for certain bonuses. In the event of a Change of Control, as defined in the Agreement, Mr. Maza will receive a cash bonus equal to three times his last annual base salary plus his annual bonus. In addition, in such event he will receive common stock equal to 5% of the Company on a fully diluted basis. Such Change of Control compensation is contingent on the Company being valued at least at $20.0 million in the transaction. The Agreement contains standard non-compete provisions.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation.
Use of Estimates	Use of Estimates.
Stock-Based Compensation	Stock-Based Compensation.
Research and Development Costs and Clinical Trial Expenses	Research and Development Costs and Clinical Trial Expenses.
Revenue Recognition	Revenue Recognition.
Convertible Instruments	Convertible Instruments 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
Preferred Stock	Preferred
Derivative Instruments	Derivative Instruments During the years ended June 30, 2015 and 2014, we recognized other income (expense) of $4,594,134 and ($745,741), respectively, relating to recording the derivative instruments fair value. At June 30, 2015 and 2014, there were approximately $2.7 million 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 year ended June 30, 2015 and 2014: Year Ended June 30, 2015 June 30, 2014 Estimated dividends None None Expected volatility 188 % 188 % Risk-free interest rate 0.28% - 0.64 % 1.73 % Expected term (years) 1 - 5 years 1 - 5 years
Fair value of financial instruments	Fair value of financial instruments. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions) We measure derivative liabilities at fair value using the Black-Scholes option pricing model with assumptions that include the fair value of the stock underlying the derivative instrument, the exercise or conversion price of the derivative instrument, the risk free interest rate for a term comparable to the term of the derivative instrument and the volatility rate and dividend yield for our common stock. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The Company has not paid dividends to date and does not expect to pay dividends in the foreseeable future due to its substantial accumulated deficit. Accordingly, expected dividends yields are currently zero. Expected volatility is based principally on an analysis of historical volatilities of similarly situated companies in the marketplace for a number of periods that is at least equal to the contractual term or estimated life of the applicable financial instrument. We also considered the use of the lattice or binomial models with respect to valuing derivative financial instruments that feature anti-dilution price protection; however, the differences in the results are insignificant due to the low probability of triggering price adjustments in such financial instruments. We measure the fair value of all of our derivative liabilities based on Level 3 inputs. The following table provides a summary of the changes in fair value of all financial liabilities measured at fair value on a recurring basis using significant unobservable inputs during the year ended June 30, 2015. Balance – July 1, 2013 $ 3,833,457 Issuances during the year 2,629,990 Changes in fair value included in earnings 745,741 Balance - June 30, 2014 $ 7,209,188 Issuances during the year 67,487 Changes in fair value included in earnings (4,594,134 ) Balance – June 30, 2015 $ 2,682,541
Income taxes	Income taxes ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented.
Net Loss per Share	Net Loss per Share.
New Accounting Pronouncements	New Accounting Pronouncements In August 2014, the FASB issued authoritative guidance that requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern and requires additional disclosures if certain criteria are met. This guidance is effective for fiscal periods ending after December 15, 2016, with early adoption permitted. This accounting standard update is not expected to have any impact on the Company’s financial statements. In June 2014, the FASB issued ASU No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. We have elected to adopt early application of Accounting Standards Update No. 2014-10; accordingly we no longer present or disclose inception-to-date information and other remaining disclosure requirements of Topic 915. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, which supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition”. The core principle of this updated guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new rule also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This guidance is effective, after the recent FASB deferral, for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Companies are permitted to adopt this new rule following either a full or modified retrospective approach. Early adoption is not permitted. Adoption of this ASU is not expected to have any impact on the Company’s financial statements or disclosures. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying financial statements.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Schedule of Derivative Instruments	Our derivative instruments were valued using the Black-Scholes option pricing model, using the following assumptions during the year ended June 30, 2015 and 2014: Year Ended June 30, 2015 June 30, 2014 Estimated dividends None None Expected volatility 188 % 188 % Risk-free interest rate 0.28% - 0.64 % 1.73 % Expected term (years) 1 - 5 years 1 - 5 years
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	The following table provides a summary of the changes in fair value of all financial liabilities measured at fair value on a recurring basis using significant unobservable inputs during the year ended June 30, 2015. Balance – July 1, 2013 $ 3,833,457 Issuances during the year 2,629,990 Changes in fair value included in earnings 745,741 Balance - June 30, 2014 $ 7,209,188 Issuances during the year 67,487 Changes in fair value included in earnings (4,594,134 ) Balance – June 30, 2015 $ 2,682,541

Convertible Notes Payable (Tabl

Convertible Notes Payable (Tables)	12 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Convertible notes payable	The following table presents the components of Convertible Notes Payable at year end June 30, 2015 and June 30, 2014: June 30, 2015 June 30, 2014 Convertible Notes issued during fiscal year ended June 30, 2010 $ 17,500 $ 80,000 Convertible Notes issued during fiscal year ended June 30, 2011 850,000 1,150,000 Convertible Notes issued during fiscal year ended June 30, 2012 301,500 301,500 Convertible Notes issued during fiscal year ended June 30, 2013 1,116,000 1,141,000 Convertible Notes issued during fiscal year ended June 30, 2014 657,500 622,500 Convertible Notes issued during fiscal year ended June 30, 2015 15,000 Balance at End of Period $ 2,957,500 $ 3,295,000 Less debt discount: 451,898 1,103,345 Convertible Notes Payable, Net $ 2,505,602 $ 2,191,655 Classified as follows on the accompanying consolidated balance sheets: Current portion of Convertible Notes Payable $ 2,166,472 $ 1,464,452 Long term portion of Convertible Notes Payable 339,130 727,203 $ 2,505,602 $ 2,191,655
Convertible notes aggregate face amount	As of June 30, 2015, convertible notes with an aggregate face amount of $1,169,000 are in default. Convertibe Notes Payable are payable as follows: Past Due $ 1,169,000 Fiscal year ended June 30, 2016 1,116,000 Fiscal year ended June 30, 2017 657,500 Fiscal year ended June 30, 2018 15,000 Total $ 2,957,500

Outstanding Warrants (Tables)

Outstanding Warrants (Tables)	12 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of outstanding warrants	The following table presents the number of Warrants outstanding at year end June 30, 2015 and June 30, 2014. All Warrants have a 5 year term, an exercise price of $1.25 per common share, except for 44,800 warrants that have an exercise price of $15.625 per share, and are exercisable at June 30, 2015. Warrants outstanding at June 30, 2013 1,595,327 Issued 1,275,000 Exercised — Expired — Warrants outstanding at June 30, 2014 2,870,327 Issued 9,630,000 Exercised — Expired — Warrants outstanding at June 30, 2015 12,500,327

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Reconciliation	The reconciliation of income tax benefit at the U.S. statutory rate of 34% for the years ended June 30, 2015 and 2014 to the Company’s effective tax rate is as follows: Years Ended June 30, 2015 June 30, 2014 U.S. federal statutory rate -34 % -34 % State income tax, net of federal benefit -6 % -6 % Change in valuation allowance 40 % 40 % Income Tax provision (benefit) 0 % 0 %
Schedule of Deferred Tax Assets and Liabilities	The tax effects of temporary differences that give rise to the Company’s net deferred tax asset as of June 30, 2015 and 2014 are as follows: Years Ended June 30, 2015 June 30, 2014 Deferred Tax Assets Net operating losses $ 9,200,000 $ 8,500,000 Derivative liability 1,072,000 2,883,700 $ 10,272,000 $ 11,383,700 Less: Valuation allowance (9,200,000 ) (8,500,000 ) Net Deferred Tax Assets $ 1,072,000 $ 2,883,700 Deferred Tax Liabilities Derivative liability $ (1,072,000 ) $ (2,883,700 ) Total Deferred Tax Liabilities $ (1,072,000 ) $ (2,883,700 ) Net Deferred Taxes $ — $ —

Stock-Based Compensation Plans

Stock-Based Compensation Plans (Tables)	12 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation, Stock Options, Activity	A summary of the 2006 Stock Plan is as follows: Weighted Average Exercise Price Instrinisic value Weighted Average Remaining Contractual Life Options outstanding at June 30, 2013 213,243 $ 34.87 $ — 3.35 Expired (201,243 ) $ 34.87 3.35 Balance at June 30, 2014 12,000 $ 0.22 — 2.00 Expired — Balance at June 30, 2015 12,000 $ 0.22 — 1.00 Options vested or expected to vest 12,000 $ 0.22 — 1.00

Per Share Data (Tables)

Per Share Data (Tables)	12 Months Ended
	Jun. 30, 2015
Income / (loss) per share
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the information needed to compute basic and diluted earnings per share: Year Ended June 30 June 30 2015 2014 Basic EPS Net income (loss) attributable to common stockholders, basic $ 5,705,273 $ (15,051,544 ) Weighted average shares outstanding 2,528,108 1,279,007 Basic income earnings per share $ 2.26 $ (11.77 ) Diluted EPS Net income (loss) attributable to common stockholders, basic $ 5,705,273 Preferred stock interest expense 4,104,496 Interest on convertible notes 1,126,667 Gain on extinguishment of interest payable (7,232,864 ) Change in fair value of derivative liability related to convertible notes (581,974) Net income (loss) attributable to common stockholders, diluted $ 3,121,598 Weighted average shares outstanding 2,528,108 Dilutive effect of stock options — Dilutive effect of warrants 9,600,000 Dilutive effect of convertible preferred shares 35,543,821 Dilutive effect of convertible notes 16,726,406 Diluted weighted average shares outstanding 64,398,335 Diluted earnings (loss) earnings per share $ 0.05 $ (11.77 )

Business Description (Details T

Business Description (Details Textual) - USD ($)	12 Months Ended		122 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
License fees	$ 1,200,000		$ 11,716,667

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Derivatives, Fair Value [Line Items]
Estimated dividends	None	None
Expected volatility	188.00%	188.00%
Risk-free interest rate		173.00%
Minimum [Member]
Derivatives, Fair Value [Line Items]
Risk-free interest rate	0.28%
Expected term (years)	1 year	1 year
Maximum [Member]
Derivatives, Fair Value [Line Items]
Risk-free interest rate	0.64%
Expected term (years)	5 years	5 years

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Details 1) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Accounting Policies [Abstract]
Balance - July 1, 2014	$ 7,209,188	$ 3,833,457
Issuances during the year	67,487	2,629,990
Changes in fair value included in earnings	(4,594,134)	745,741
Balance - June 30, 2015	$ 2,682,541	$ 7,209,188

Summary of Significant Accoun29

Summary of Significant Accounting Policies (Details Textual) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Accounting Policies [Abstract]
Changes in fair value of derivative instruments	$ 4,594,134	$ (745,741)
Derivative Liabilities	$ 2,700,000	$ 7,200,000

Going Concern (Details Textual)

Going Concern (Details Textual) - USD ($)	1 Months Ended	12 Months Ended
	Jul. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Working Capital Deficit		$ (20,753,109)
Development Stage Enterprise, Deficit Accumulated During Development Stage		(93,238,237)
Operating Income (Loss)		(890,562)	$ (1,137,240)
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		838,642	632,638
Total Capital Deficiency		(21,089,989)	$ (28,160,791)	$ (13,548,426)
Cash and cash equivalents		$ 23,858		$ 5,138
Proceeds from private placement	$ 750,000
Series G Convertible Preferred Stock [Member]
Stock Issued During Period, Shares, Stock Purchase Agreement	3,490
Series H Preferred Stock [Member]
Stock Issued During Period, Shares, Stock Purchase Agreement	1,117
Warrant [Member]
Stock Issued During Period, Shares, Stock Purchase Agreement	15,000,000

Convertible Notes Payable (Deta

Convertible Notes Payable (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Balance at End of Period	$ 2,957,500	$ 3,295,000
Less debt discount:	451,898	1,103,345
Convertible Notes Payable, Net	2,505,602	2,191,655
Classified as follows on the accompanying consolidated balance sheets:
Current portion of Convertible Notes Payable	2,166,472	1,464,452
Long term portion of Convertible Notes Payable	339,130	727,203
Convertible Notes Payable	2,505,602	2,191,655
Convertible Notes [Member]
Balance at End of Period	17,500	80,000
Convertible Notes One [Member]
Balance at End of Period	850,000	1,150,000
Convertible Notes Two [Member]
Balance at End of Period	301,500	301,500
Convertible Notes Three [Member]
Balance at End of Period	1,116,000	1,141,000
Convertible Notes Four [Member]
Balance at End of Period	657,500	$ 622,500
Convertible Notes Five [Member]
Balance at End of Period	$ 15,000

Convertible Notes Payable (De32

Convertible Notes Payable (Details 1)	Jun. 30, 2015USD ($)
Convertibe Notes Payable are payable as follows:
Past Due	$ 1,169,000
Fiscal year ended June 30, 2016	1,116,000
Fiscal year ended June 30, 2017	657,500
Fiscal year ended June 30, 2018	15,000
Total	$ 2,957,500

Convertible Notes Payable (De33

Convertible Notes Payable (Details Textual) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Debt Disclosure [Abstract]
Convertible notes payable interest rate	14.00%
Convertible notes payable conversion price	$ 1.25
Convertible notes payable aggregate principal amount	$ 420,000	$ 500,000
Common shares conversion price	$ 0.08	$ 0.14
Convertible notes payable period	3 years
Notes default	$ 1,169,000

Convertible Preferred Stock (De

Convertible Preferred Stock (Details Textual) - USD ($)	1 Months Ended	12 Months Ended
	Jul. 25, 2014	Jun. 30, 2015	Jun. 30, 2014
Convertible Preferred Stock And Derivative Liability [Line Items]
Conversion of stock shares issued		810,000	593,248
Convertible notes payable conversion price		$ 1.25
Aggregate principal amount		$ 2,505,602	$ 2,191,655
Common shares conversion price		$ 0.08	$ 0.14
Warrant [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Shares issued	9,600,000
Series F Convertible Preferred Stock [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Preferred Stock, Dividend Rate, Percentage	8.00%	8.00%
Preferred Stock Initial Conversion Price Per Share		$ 0.25
Convertible Preferred Stock, Total Shares Issued Upon Conversion		4,000
Preferred Stock Stated Value Per Share		$ 1,000
Conversion of Stock, Shares Converted		400,000
Preferred shares converted to common shares		100
Accrued dividends		$ 16,750,000
Shares issued	1,200
Preferred Stock liquidation preference	$ 1,000	1,200,000	$ 1,200,000
Preferred stock value stated	$ 1,000
Warrants exercisable period	5 years
Stock exercise price per share	$ .25
Convertible notes payable conversion price	$ 1.25
Aggregate principal amount	$ 920,000	100
Principal outstanding promissory notes repaid		$ 300,000
Exercise price of the Warrants be the effective price per share		50.00%
Series F Convertible Preferred Stock [Member] | Minimum [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Common shares conversion price	$ 0.08
Series F Convertible Preferred Stock [Member] | Maximum [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Common shares conversion price	$ 0.14
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		$ 1,345,516	$ 1,345,516
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		810,000	216,858
Conversion of Stock, Shares Issued		1,013	543
Accrued dividends		$ 7,232,864
Preferred Stock liquidation preference		$ 16,635,500	$ 20,977,000
Stock exercise price per share		$ 0.005
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 Issued		0	841
Preferred Stock liquidation preference		$ 2,729,036	$ 2,729,036
Stock exercise price per share		$ 0.005
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
Preferred Stock liquidation preference		$ 19,232,800	$ 19,232,800
Common Stock
Convertible Preferred Stock And Derivative Liability [Line Items]
Conversion of Stock, Shares Converted		0	336,394
Conversion of stock shares issued	4,000	1,621,421	593,248

Outstanding Warrants (Details)

Outstanding Warrants (Details) - shares	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Options outstanding	12,000	213,243
Expired	0	201,243
Options outstanding	12,000	12,000
Warrant [Member]
Options outstanding	2,870,327	1,595,327
Issued	9,600,000	1,275,000
Exercised	0	0
Expired	0	0
Options outstanding	12,500,327	2,870,327

Outstanding Warrants (Details T

Outstanding Warrants (Details Textual)	12 Months Ended
	Jun. 30, 2015USD ($)$ / shares
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Warrants Expiration, Term	5 years
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 1.25
Warrant or Right, outstanding | $	$ 44,800
Warrants exercise price	$ 15.625

Income Taxes (Details)

Income Taxes (Details)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
U.S. federal statutory rate	(34.00%)	(34.00%)
State income tax, net of federal benefit	(6.00%)	(6.00%)
Change in valuation allowance	40.00%	40.00%
Income Tax provision (benefit)	0.00%	0.00%

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Deferred Tax Assets
Net operating losses	$ 9,200,000	$ 8,500,000
Derivative liability	1,072,000	2,883,700
Deferred Tax Assets, Gross, Total	10,272,000	11,383,700
Less: Valuation allowance	(9,200,000)	(8,500,000)
Net Deferred Tax Assets	1,072,000	2,883,700
Deferred Tax Liabilities
Derivative liability	(1,072,000)	(2,883,700)
Total Deferred Tax Liabilities	(1,072,000)	(2,883,700)
Net Deferred taxes	$ 0	$ 0

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	(34.00%)	(34.00%)
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	$ 23,000,000
Deferred Tax Assets, Operating Loss Carryforwards, State and Local, Expiration Date	Dec. 31, 2025
Utilization Of Net Operating Losses Description	Utilization of the NOLs may be subject to limitation under Internal Revenue Code Section 382 should there be a greater than 50% ownership change as determined under regulations.

Capital Deficiency (Details Tex

Capital Deficiency (Details Textual) - shares	1 Months Ended	12 Months Ended
	Jul. 25, 2014	Jun. 30, 2015	Jun. 30, 2014
Schedule of Equity Method Investments [Line Items]
Reverse stock spilit		1-for-250
Conversion of stock shares issued, common stock		810,000	593,248
Stock Issued During Period, Shares, Issued for Services		200,000	138,000
Common Stock
Schedule of Equity Method Investments [Line Items]
Conversion of stock shares issued, common stock	4,000	1,621,421	593,248
Common Stock | Charitable Donations [Member]
Schedule of Equity Method Investments [Line Items]
Stock Issued During Period, Shares			18,000

Stock-Based Compensation Plan41

Stock-Based Compensation Plans (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options outstanding	12,000	213,243
Expired	0	(201,243)
Options outstanding	12,000	12,000	213,243
Options vested or expected to vest	12,000
Options outstanding - Weighted Average Exercise Price	$ 0.22	$ 34.87
Expired - Weighted Average Exercise Price		34.87
Balance at the end of period - weighted Average Exercise Price	0.22	$ 0.22	$ 34.87
Options vested or expected to vest - Weighted Average Exercise Price	$ 0.22
Options outstanding - Instrinisic value
Expired - Intrinsic value
Balance at the end of period - Intrinsic value
Options vested or expected to vest - Intrinsic value
Options outstanding - Weighted Average Remaining Contractual Life	1 year	2 years	3 years 4 months 6 days
Expired - Weighted Average Remaining Contractual Life		3 years 4 months 6 days
Options vested or expected to vest - Weighted Average Remaining Contractual Life	1 year

Stock-Based Compensation Plan42

Stock-Based Compensation Plans (Details Textual) - shares	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2006
2006 Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	228,000	228,000	240,000

Per Share Data (Details)

Per Share Data (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Basic EPS
Net income (loss) attributable to common stockholders, basic	$ 5,705,273	$ (15,051,544)
Weighted average shares outstanding	2,528,108	1,279,007
Basic income earnings per share	$ 2.26	$ (11.77)
Diluted EPS
Net income (loss) attributable to common stockholders, basic	$ 5,705,273	$ (15,051,544)
Preferred stock interest expense	4,104,496
Interest on convertible notes	1,126,667
Gain on extinguishment of interest payable	7,232,864
Change in fair value of derivative liability related to convertible notes	(581,974)
Net income (loss) attributable to common stockholders, diluted	$ 3,121,598
Weighted average shares outstanding	2,528,108	1,279,007
Dilutive effect of stock options
Dilutive effect of warrants	9,600,000
Dilutive effect of convertible preferred shares	35,543,821
Dilutive effect of convertible notes	16,726,406
Diluted weighted average shares outstanding	64,398,335	1,279,007
Diluted earnings (loss) earnings per share	$ 0.05	$ (11.77)

Subsequent Events (Details Text

Subsequent Events (Details Textual) - USD ($)	1 Months Ended			12 Months Ended
	Oct. 31, 2015	Jul. 31, 2015	Jul. 25, 2014	Jun. 30, 2015	Jun. 30, 2014	Jul. 02, 2015
Subsequent Event [Line Items]
Common Stock, Par or Stated Value Per Share				$ 0.001	$ 0.001
Conversion of stock shares issued				810,000	593,248
Series C Convertible Preferred Stock [Member]
Subsequent Event [Line Items]
Preferred Stock issued				16,636	20,977
Preferred Stock, Par or Stated Value Per Share				$ 0.001	$ 0.001
Preferred Stock liquidation preference				$ 16,635,500	$ 20,977,000
Preferred Stock, Dividend Rate, Percentage				14.00%
Series F Convertible Preferred Stock [Member]
Subsequent Event [Line Items]
Preferred Stock issued				1,200	1,200
Preferred Stock, Par or Stated Value Per Share				$ 0.001	$ 0.001
Preferred Stock liquidation preference			$ 1,000	$ 1,200,000	$ 1,200,000
Preferred Stock, Dividend Rate, Percentage			8.00%	8.00%
Preferred stock value			$ 1,000
Subsequent Event [Member] | Chairman, CEO and CFO [Member]
Subsequent Event [Line Items]
Agreement is for a period	3 years
Annual base salary	$ 250,000
Common stock recived percentage	5.00%
Company being valued in transaction	$ 20,000,000
Subsequent Event [Member] | Series F Preferred Stock
Subsequent Event [Line Items]
Convertible Preferred Stock Conversion Price Per Share						$ 0.10
Preferred stock liquidation price per share						$ 2
Class of Warrant or Rights, Outstanding						9,600,000
Subsequent Event [Member] | Series H Preferred Stock [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues		1,117
Preferred Stock issued						2,000
Preferred Stock liquidation preference						$ 2,000
Preferred stock liquidation price per share						$ 0.10
Subsequent Event [Member] | Series G Preferred Stock [Member]
Subsequent Event [Line Items]
Convertible Preferred Stock Conversion Price Per Share						$ 0.10
Stock Issued During Period, Shares, New Issues		3,490
Preferred Stock issued						10,000
Preferred Stock, Par or Stated Value Per Share						$ 0.001
Preferred Stock liquidation preference						$ 2,000
Preferred Stock, Dividend Rate, Percentage		8.00%
Preferred stock liquidation price per share						$ 0.10
Preferred stock value						$ 1,000
Convertible Preferred Stock, Settlement Terms		P5Y
Subsequent Event [Member] | Warrant [Member]
Subsequent Event [Line Items]
Common Stock, Par or Stated Value Per Share						$ 0.001
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						15,000,000
Subsequent Event [Member] | Series C Convertible Preferred Stock [Member]
Subsequent Event [Line Items]
Conversion of stock shares issued		1,416,700
Subsequent Event [Member] | Series F Convertible Preferred Stock [Member]
Subsequent Event [Line Items]
Conversion of stock shares issued		600,000