Intellect Neurosciences 10-Q 12 Feb 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Dec. 31, 2015	Feb. 08, 2015
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		6,067,037
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Dec. 31, 2015	Jun. 30, 2015
Current assets:
Cash and cash equivalents	$ 12,853	$ 23,858
Total current assets	12,853	23,858
Security deposits	2,250	2,250
Total Assets	15,103	26,108
Current Liabilities:
Accounts payable and accrued expenses	2,549,010	2,599,706
Accrued interest - convertible promissory notes	1,523,228	1,447,601
Derivative instruments	337,106	2,682,541
Preferred stock dividend payable	12,666,138	11,880,647
Convertible promissory notes - current, net of debt discount of $166,418 and $155,528, respectively	2,258,582	2,166,472
Total Current liabilities	19,334,064	20,776,967
Long Term Debt
Convertible promissory notes - long term, net of debt discount of $41,523 and $296,370, respectively	193,477	339,130
Total Liabilities	19,527,541	21,116,097
Capital deficiency:
Common stock, par value $0.001 per share, 2,000,000,000 shares authorized; 6,067,037 and 3,550,336 shares issued and outstanding at December 31, 2015 and June 30, 2015, respectively	6,067	3,550
Additional paid in capital	74,825,300	72,144,582
Accumulated Deficit	(94,343,888)	(93,238,237)
Total Capital Deficiency	(19,512,438)	(21,089,989)
Total Liabilities and Capital Deficiency	15,103	26,108
Series B Convertible Preferred Stock [Member]
Capital deficiency:
Convertible Preferred stock	41	77
Series C Convertible Preferred Stock [Member]
Capital deficiency:
Convertible Preferred stock	14	16
Series D Convertible Preferred Stock [Member]
Capital deficiency:
Convertible Preferred stock	1	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	3	$ 1
Series G Convertible Preferred Stock [Member]
Capital deficiency:
Convertible Preferred stock	4
Series H Convertible Preferred Stock [Member]
Capital deficiency:
Convertible Preferred stock	$ 1

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Dec. 31, 2015	Jun. 30, 2015
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	6,067,037	3,550,336
Common stock, shares outstanding	6,067,037	3,550,336
Short-term Debt [Member]
Debt Instrument, Unamortized Discount	$ 166,418	$ 155,528
Long-term Debt [Member]
Debt Instrument, Unamortized Discount	$ 41,523	$ 296,370
Series B Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ .001	$ .001
Preferred stock, shares authorized	459,309	459,309
Preferred stock, shares issued	40,686	76,887
Preferred stock, shares outstanding	40,686	76,887
Preferred stock, liquidated (in dollars)	$ 1,122,468
Series C Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ .001	$ .001
Preferred stock, shares authorized	25,000	25,000
Preferred stock, shares issued	14,398	16,636
Preferred stock, shares outstanding	14,398	16,636
Preferred stock, liquidated (in dollars)	$ 21,556,955
Series D Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ .001	$ .001
Preferred stock, shares authorized	25,000	25,000
Preferred stock, shares issued	1,054	2,729
Preferred stock, shares outstanding	1,054	2,729
Preferred stock, liquidated (in dollars)	$ 1,378,651
Series E Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ .001	$ .001
Preferred stock, shares authorized	25,000	25,000
Preferred stock, shares issued	18,633	18,633
Preferred stock, shares outstanding	18,633	18,633
Preferred stock, liquidated (in dollars)	$ 23,144,633
Series F Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ .001	$ .001
Preferred stock, shares authorized	25,000	25,000
Preferred stock, shares issued	2,532	1,200
Preferred stock, shares outstanding	2,532	1,200
Preferred stock, liquidated (in dollars)	$ 5,335,659
Series G Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ .001	$ .001
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares issued	3,490	0
Preferred stock, shares outstanding	3,490	0
Preferred stock, liquidated (in dollars)	$ 7,261,791
Series H Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ .001
Preferred stock, shares authorized	2,000	2,000
Preferred stock, shares issued	1,081	0
Preferred stock, shares outstanding	1,081	0
Preferred stock, liquidated (in dollars)	$ 2,227,803

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Revenues:
License fees		$ 1,200,000		$ 1,200,000
Total revenue		$ 1,200,000		1,200,000
Costs and Expenses:
Research and development	$ 2,500		$ 8,104	27,201
General and administrative	273,827	$ 789,263	765,102	1,257,430
Total cost and expenses	276,327	789,263	773,206	1,284,631
Loss from operations	(276,327)	410,737	(773,206)	(84,631)
Other income/(expenses):
Interest expense, net of interest income	(1,145,983)	(1,736,913)	(2,677,879)	(3,463,708)
Changes in fair value of derivative instruments	85,456	782,582	2,345,435	6,378,841
Total other income/(expense):	(1,060,527)	(954,331)	(332,444)	2,915,133
Income/ (loss) before provision for taxes	$ (1,336,854)	$ (543,594)	$ (1,105,650)	$ 2,830,502
Income tax provision
Net income/ (loss) allocable to common shareholders	$ (1,336,854)	$ (543,594)	$ (1,105,650)	$ 2,830,502
Basic and diluted income/ (loss) per share	$ (0.23)	$ (0.22)	$ (0.21)	$ 1.42
Weighted average number of shares outstanding:	5,715,389	2,494,048	5,306,453	1,996,390

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income / (loss)	$ (1,105,650)	$ 2,830,502
Adjustments to reconcile net income / (loss) to net cash used in operating activities:
Change in fair value of derivative instruments	(2,345,435)	(6,378,841)
Non-cash interest expense	$ 2,678,276	3,473,981
Change in assets and liabilities
Due from Licensee		(1,200,000)
Accounts payable and accrued expenses	$ (50,696)	434,824
Net cash used in operating activities	(823,505)	(839,534)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of preferred stock	860,000	1,200,000
Repayments of convertible notes	(47,500)	(300,000)
Net cash provided by financing activities	812,500	900,000
NET INCREASE (DECREASE) IN CASH	(11,005)	$ 60,466
CASH - BEGINNING OF PERIOD	23,858
CASH - END OF PERIOD	$ 12,853	$ 60,466
Non-cash financing activities
Conversion of convertible notes and interest to common stock		131,929
Debt discount recognized as derivative liabiltiy		$ 637,500

Basis of Presentation

Basis of Presentation	6 Months Ended
	Dec. 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, 2015 filed with the Securities and Exchange Commission (the “SEC”) on October 14, 2015. 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 six and three months ended December 31, 2015 are not necessarily indicative of the results to be expected for the entire year or for any other period.

Business Description and Going

Business Description and Going Concern	6 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Description and Going Concern	Note 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 Neurosciences, USA, Inc. (“Intellect USA”), is engaged in the discovery and development of disease-modifying therapeutic agents for the treatment and prevention of rare neurodegenerative conditions. Since our inception in 2005, we have devoted all of our efforts and resources to research and development activities and advancing our patent estate. Our losses from operations have been funded with the proceeds of equity and debt financings and fees from license arrangements. 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. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has generated losses from operations since its inception in 2005. As of December 31, 2015, the Company had negative working capital of $(19,321,211), an accumulated deficit of $(94,343,888) and a capital deficiency of $(19,512,438). The Company had a loss from operations of $(773,206) for the six months ended December 31, 2015. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from this uncertainty. The audit report prepared by our independent registered public accounting firm relating to our consolidated financial statements for the year ended June 30, 2015 includes an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 3. Summary of Significant Accounting Policies Principles of Consolidation. Use of Estimates. 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 Stock Derivative Instruments During the six and three month period ended December 31, 2015, we recognized other income of $2,345,435 and $6,378,841, respectively, relating to recording the derivative instruments fair value. At December 31, 2015 and June 30, 2015, there were approximately $337 thousand and $2.7 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, 2015: Estimated dividends None Expected volatility 188% Risk-free interest rate 0.49% - 1.31% Expected term (years) 1 month - 5 years

Notes Payable

Notes Payable	6 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Notes Payable	Note 4. Notes Payable The following table presents the components of Convertible Notes Payable at December 31, 2015 and June 30, 2015: December 31, 2015 June 30, 2015 Convertible Notes issued during fiscal year ended June 30, 2010 $ 17,500 $ 17,500 Convertible Notes issued during fiscal year ended June 30, 2011 702,500 850,000 Convertible Notes issued during fiscal year ended June 30, 2012 251,500 301,500 Convertible Notes issued during fiscal year ended June 30, 2013 1,116,000 1,116,000 Convertible Notes issued during fiscal year ended June 30, 2014 557,500 657,500 Convertible Notes issued during fiscal year ended June 30, 2015 15,000 15,000 Balance at End of Period $ 2,660,000 $ 2,957,500 Less debt discount: 207,941 451,898 Convertible Notes Payable, Net $ 2,452,059 $ 2,505,602 Classified as follows on the accompanying consolidated balance sheets: Current portion of Convertible Notes Payable $ 2,258,582 $ 2,166,472 Long term portion of Convertible Notes Payable 193,477 339,130 $ 2,452,059 $ 2,505,602 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 $325,000, which are convertible into the Company's common shares at a conversion price of $0.08 and $0.14 per share, respectively. Convertibe Notes Payable are payable as follows: Past Due $ 531,500 Year ending December 31, 2016 1,893,500 Year ending December 31, 2017 235,000 Total $ 2,660,000

Convertible Preferred Stock

Convertible Preferred Stock	6 Months Ended
	Dec. 31, 2015
Convertible Preferred Stock and Derivative Liability [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. As described more fully below under Series G and Series H Convertible Preferred Shares 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. As described more fully below under Series F Convertible Preferred Shares During the six months ended December 31, 2015, 700 shares of Series C Convertible Preferred Stock were exchanged for 700 shares of Series G Preferred Stock. During the six months ended December 31, 2015, 1,538 shares of Series C Convertible Preferred Stock were converted into 1,066,400 common shares. There were no conversions of Series C Convertible Preferred Stock during the quarter ended December 31, 2015. 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 six months ended December 31, 2015, 1,675 shares of Series D Convertible Preferred Stock plus accrued dividends thereon were exchanged for 2,039 shares of Series G Convertible Preferred Stock. There were no conversions of Series D Convertible Preferred Stock during the six months ended December 31, 2015.. 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. There were no conversions of Series E Convertible Preferred Stock during the six months ended December 31, 2015.. 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 10,000 common shares based on the current conversion price of $0.10. The Series F Convertible Preferred Stock has a right to a liquidation preference of $2,000 per share. On November 30, 2015, we entered into a stock purchase agreement with certain accredited investors (the “Investors”) whereby we issued to the Investors (i) an aggregate of 1,577 shares of Series F Convertible Preferred Stock; and (ii) warrants to purchase an aggregate of 880,000 shares of common stock, par value $0.001 per share of the Company. We received gross cash proceeds of $110,000 and the financing resulted in the exchange and cancellation of an aggregate of $380,900 of principal and accrued interest due with respect to convertible promissory notes owned by the Investors, which were in default, and an aggregate of $1,086,333 Stated Value and accrued dividends of Series C Preferred Stock. The private placement was conducted pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506 of Regulation D promulgated thereunder. During the six months ended December 31, 2015, 245 shares of Series F Convertible Preferred Stock were converted into 1,450,000 common shares. Series G and Series H Convertible Preferred Shares 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 (the “Series G Preferred”); (ii) an aggregate of 1,117 shares of Series H Preferred Stock (the “Series H Preferred”); and (iii) warrants to purchase an aggregate of 15,000,000 shares of common stock (the “Series G Financing”). 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 $.10 per share. In connection with the Series G Financing, the Board of Directors 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 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 $0.10 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. 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 and holders of previously issued Series B Preferred Stock the right to exchange their shares of Series B Preferred Stock for shares of Series H Preferred. The stated value of each share of exchanged Series B, Series C and Series D Preferred Stock, plus accrued dividends, was 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. See “Series B Convertible Preferred Shares”, “Series C Convertible Preferred Shares” and “Series D Convertible Preferred Shares” above. Pursuant to the Series H Certificate of Designations, Preferences and Rights of Series H Convertible Preferred Stock, 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 fixed conversion price of $1.92 per share. 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. Based on authoritative guidance, the entire proceeds from the Series G Financing were credited to preferred stock and additional paid in capital. There were no conversions of Series G or H Convertible Preferred Stock during the three or six months ended December 31, 2015.

Outstanding Warrants

Outstanding Warrants	6 Months Ended
	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Outstanding Warrants	Note 6. Outstanding Warrants The following table presents the number of Warrants outstanding at the periods ended December 31, 2015 and June 30, 2015. All Warrants have a 5 year term and are exercisable at December 31, 2015. The Warrants issued in connection with the Series F and Series G Financing described above in Note 5 have an exercise price of $0.10 per share. All other outstanding warrants have an exercise price of $1.25 per common share, except for 44,800 warrants that have an exercise price of $15.625 per share. Warrants outstanding at June 30, 2015 12,470,327 Issued 15,880,000 Exercised - Expired - Warrants outstanding at June 30, 2015 28,350,327

Capital Deficiency

Capital Deficiency	6 Months Ended
	Dec. 31, 2015
Equity Method Investments and Joint Ventures [Abstract]
Capital Deficiency	Note 7. Capital Deficiency Common stock In July 2015, we issued 816,400 and 650,000 shares of our common stock to holders of Series C Convertible Preferred Stock and Series F Convertible Preferred Stock, respectively, upon their exercise of the conversion feature contained in those securities. In August 2015, we issued 250,000 and 300,000 shares of our common stock to holders of Series C Convertible Preferred Stock and Series F Convertible Preferred Stock, respectively, upon their exercise of the conversion feature contained in those securities. In August 2015, we issued 301 shares of our common stock in connection with implementation of the reverse stock split on our outstanding common shares that was effective on February 11, 2015. In November 2015, we issued 500,000 shares of our common stock to holders of Series F Convertible Preferred Stock upon their exercise of the conversion feature contained in those securities.

Income Taxes

Income Taxes	6 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Note 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	6 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	Note 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 that require adjustment to or disclosure in the Company’s consolidated financial statements.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation.
Use of Estimates	Use of Estimates.
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 Stock
Derivative Instruments	Derivative Instruments During the six and three month period ended December 31, 2015, we recognized other income of $2,345,435 and $6,378,841, respectively, relating to recording the derivative instruments fair value. At December 31, 2015 and June 30, 2015, there were approximately $337 thousand and $2.7 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, 2015: Estimated dividends None Expected volatility 188% Risk-free interest rate 0.49% - 1.31% Expected term (years) 1 month - 5 years

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Dec. 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, 2015: Estimated dividends None Expected volatility 188% Risk-free interest rate 0.49% - 1.31% Expected term (years) 1 month - 5 years

Notes Payable (Tables)

Notes Payable (Tables)	6 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments [Table Text Block]	The following table presents the components of Convertible Notes Payable at December 31, 2015 and June 30, 2015: December 31, 2015 June 30, 2015 Convertible Notes issued during fiscal year ended June 30, 2010 $ 17,500 $ 17,500 Convertible Notes issued during fiscal year ended June 30, 2011 702,500 850,000 Convertible Notes issued during fiscal year ended June 30, 2012 251,500 301,500 Convertible Notes issued during fiscal year ended June 30, 2013 1,116,000 1,116,000 Convertible Notes issued during fiscal year ended June 30, 2014 557,500 657,500 Convertible Notes issued during fiscal year ended June 30, 2015 15,000 15,000 Balance at End of Period $ 2,660,000 $ 2,957,500 Less debt discount: 207,941 451,898 Convertible Notes Payable, Net $ 2,452,059 $ 2,505,602 Classified as follows on the accompanying consolidated balance sheets: Current portion of Convertible Notes Payable $ 2,258,582 $ 2,166,472 Long term portion of Convertible Notes Payable 193,477 339,130 $ 2,452,059 $ 2,505,602
Schedule of Maturities of Long-term Debt [Table Text Block]	Convertibe Notes Payable are payable as follows: Past Due $ 531,500 Year ending December 31, 2016 1,893,500 Year ending December 31, 2017 235,000 Total $ 2,660,000

Outstanding Warrants (Tables)

Outstanding Warrants (Tables)	6 Months Ended
	Dec. 31, 2015
Outstanding Warrants Tables
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]	All other outstanding warrants have an exercise price of $1.25 per common share, except for 44,800 warrants that have an exercise price of $15.625 per share. Warrants outstanding at June 30, 2015 12,470,327 Issued 15,880,000 Exercised - Expired - Warrants outstanding at June 30, 2015 28,350,327

Business Description and Goin19

Business Description and Going Concern (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015
Business Description And Going Concern Details Textual
Working capital deficit	$ (19,321,211)		$ (19,321,211)
Accumulated deficit	(94,343,888)		(94,343,888)		$ (93,238,237)
Total Capital Deficiency	(19,512,438)		(19,512,438)		$ (21,089,989)
Loss from operations	$ (276,327)	$ 410,737	$ (773,206)	$ (84,631)

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Details)	6 Months Ended
	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Estimated dividends	0.00%
Expected volatility	188.00%
Minimum [Member]
Derivatives, Fair Value [Line Items]
Risk-free interest rate	0.49%
Expected term (years)	1 year
Maximum [Member]
Derivatives, Fair Value [Line Items]
Risk-free interest rate	1.31%
Expected term (years)	5 years

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Jun. 30, 2015
Accounting Policies [Abstract]
Derivative, Gain (Loss) on Derivative, Net, Total	$ 6,378,841	$ 2,345,435
Derivative Liabilities	$ 337,000	$ 337,000	$ 2,700,000

Notes Payable (Details)

Notes Payable (Details) - USD ($)	Dec. 31, 2015	Jun. 30, 2015
Balance at End of Period	$ 2,660,000	$ 2,957,500
Less debt discount:	207,941	451,898
Convertible Notes Payable, Net	2,452,059	2,505,602
Classified as follows on the accompanying consolidated balance sheets:
Current portion of Convertible Notes Payable	2,258,582	2,166,472
Long term portion of Convertible Notes Payable	193,477	339,130
Convertible Notes Payable	2,452,059	2,505,602
Convertible Notes [Member]
Balance at End of Period	17,500	17,500
Convertible Notes One [Member]
Balance at End of Period	702,500	850,000
Convertible Notes Two [Member]
Balance at End of Period	251,500	301,500
Convertible Notes Three [Member]
Balance at End of Period	1,116,000	1,116,000
Convertible Notes Four [Member]
Balance at End of Period	557,500	657,500
Convertible Notes Five [Member]
Balance at End of Period	$ 15,000	$ 15,000

Notes Payable (Details 1)

Notes Payable (Details 1)	Dec. 31, 2015USD ($)
Convertibe Notes Payable are payable as follows:
Past Due	$ 531,500
Year ending December 31, 2016	1,893,500
Year ending December 31, 2017	235,000
Total	$ 2,660,000

Notes Payable (Details Textual)

Notes Payable (Details Textual) - USD ($)	6 Months Ended
	Dec. 31, 2015	Jun. 30, 2015
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	$ 325,000
Common shares conversion price	$ 0.08	$ 0.14
Convertible notes payable period	3 years

Convertible Preferred Stock (De

Convertible Preferred Stock (Details Textual) - USD ($)	1 Months Ended		6 Months Ended
	Nov. 30, 2015	Jul. 31, 2015	Dec. 31, 2015	Jun. 30, 2015
Convertible Preferred Stock And Derivative Liability [Line Items]
Shares issued, price			$ 0.08	$ 0.14
Warrant [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Shares issued	880,000	15,000,000
Shares issued, price	$ 0.001
Cancellation of an aggregate of principal and accrued interest	$ 380,900
Aggregate stated value and accrued dividends	$ 1,086,333
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			$ 1,122,468
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
Conversion of Stock, Shares Converted			1,066,400
Conversion of Stock, Shares Issued			1,538
Preferred Stock liquidation preference			$ 21,556,955
Preferred stock value stated			$ 1,000
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
Conversion of Stock, Shares Converted			2,039
Conversion of Stock, Shares Issued			1,675
Preferred Stock liquidation preference			$ 1,378,651
Preferred stock value stated			$ 1,000
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 liquidation preference			$ 23,144,633
Preferred stock value stated			$ 1,000
Series F 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			$ 0.10
Convertible Preferred Stock, Total Shares Issued Upon Conversion			10,000
Conversion of Stock, Shares Converted			1,450,000
Conversion of Stock, Shares Issued			245
Shares issued	1,577
Gross cash proceeds from shares issued	$ 110,000
Preferred Stock liquidation preference			$ 5,335,659
Preferred stock value stated			1,000
Principal outstanding promissory notes repaid			$ 300,000
Series G 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		$ 0.10
Preferred Stock Stated Value Per Share		$ 0.001
Conversion of Stock, Shares Issued		3,490
Shares issued		10,000
Preferred Stock liquidation preference		$ 2,000	$ 7,261,791
Preferred stock value stated		$ 1,000
Warrants exercisable period		5 years
Series H Convertible Preferred Stock [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Preferred Stock Initial Conversion Price Per Share		$ 1.92
Preferred Stock Stated Value Per Share		$ 0.001
Conversion of Stock, Shares Issued		1,117
Shares issued		2,000
Preferred Stock liquidation preference		$ 2,000	$ 2,227,803
Series G and H Convertible Preferred Stock [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Conversion of Stock, Shares Converted			36,201
Conversion of Stock, Shares Issued			1,081

Outstanding Warrants (Details)

Outstanding Warrants (Details) - Warrant [Member]	6 Months Ended
	Dec. 31, 2015shares
Warrants outstanding	12,470,327
Issued	15,880,000
Exercised	0
Expired	0
Warrants outstanding	28,350,327

Outstanding Warrants (Details T

Outstanding Warrants (Details Textual)	6 Months Ended
	Dec. 31, 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

Capital Deficiency (Details Tex

Capital Deficiency (Details Textual) - USD ($)	1 Months Ended
	Nov. 30, 2015	Aug. 31, 2015	Jul. 31, 2015
Schedule of Equity Method Investments [Line Items]
Reverse stock split		301
Series C Convertible Preferred Stock [Member]
Schedule of Equity Method Investments [Line Items]
Stock Issued During Period, Shares, Issued for Services			816,400
Stock Issued During Period, Value, Issued for Services		$ 250,000
Series F Convertible Preferred Stock [Member]
Schedule of Equity Method Investments [Line Items]
Stock Issued During Period, Shares, Issued for Services			650,000
Stock Issued During Period, Value, Issued for Services		$ 300,000
Reverse stock split	500,000

Income Taxes (Details Textual)

Income Taxes (Details Textual)	6 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Percentage Of Valuation Allowance For Operating Loss	100.00%