Intellect Neurosciences 10-Q 9 May 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Mar. 31, 2016	May. 09, 2016
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		6,520,389
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Current assets:
Cash	$ 2,491	$ 23,858
Total current assets	2,491	23,858
Security deposits	2,250	2,250
Total Assets	4,741	26,108
Current Liabilities:
Accounts payable and accrued expenses	2,639,355	2,599,706
Accrued interest - convertible promissory notes	1,609,859	1,447,601
Derivative instruments	683,000	2,682,541
Preferred stock dividend payable	13,794,774	11,880,647
Convertible promissory notes - current, net of debt discount of $213,553 and $155,528, respectively	2,456,447	2,166,472
Total Current liabilities	21,183,435	20,776,967
Long Term Debt
Convertible promissory notes - long term, net of debt discount of $9,198 and $296,370, respectively	105,802	339,130
Total Liabilities	21,289,237	21,116,097
Capital deficiency:
Common stock, par value $0.001 per share, 2,000,000,000 shares authorized; 6,520,389 and 3,550,336 shares issued and outstanding at March 31, 2016 and June 30, 2015, respectively	6,521	3,550
Additional paid in capital	74,862,588	72,144,582
Accumulated Deficit	(96,153,688)	(93,238,237)
Total Capital Deficiency	(21,284,496)	(21,089,989)
Total Liabilities and Capital Deficiency	4,741	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 ($)	Mar. 31, 2016	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	6,520,389	3,550,336
Common stock, shares outstanding	6,520,389	3,550,336
Short-term Debt [Member]
Debt Instrument, Unamortized Discount	$ 213,553	$ 155,528
Long-term Debt [Member]
Debt Instrument, Unamortized Discount	$ 9,198	$ 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)	$ 1,133,267
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)	$ 22,728,099
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)	$ 1,399,960
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)	$ 23,521,430
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)	$ 6,230,370
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)	$ 7,402,902
Series H Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ .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)	$ 2,260,591

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Revenues:
License fees				$ 1,200,000
Total revenue				1,200,000
Costs and Expenses:
Research and development	$ 16,812	$ 4,001	$ 24,916	31,202
General and administrative	225,571	528,800	1,011,738	1,786,230
Total cost and expenses	242,383	532,801	1,036,654	1,817,432
Loss from operations	(242,383)	(532,801)	(1,036,654)	(617,432)
Other income/(expenses):
Interest expense, net of interest income	(1,311,063)	(1,255,149)	(3,988,942)	(4,718,857)
Changes in fair value of derivative instruments	(235,290)	(5,989,647)	2,110,145	389,194
Total other income/(expense):	(1,546,353)	(7,244,796)	(1,878,797)	(4,329,663)
Loss before provision for taxes	$ (1,788,736)	$ (7,777,597)	$ (2,915,451)	$ (4,947,095)
Income tax provision
Net loss allocable to common shareholders	$ (1,788,736)	$ (7,777,597)	$ (2,915,451)	$ (4,947,095)
Basic and diluted loss per share	$ (0.29)	$ (3.03)	$ (0.52)	$ (2.27)
Weighted average number of shares outstanding:	6,168,027	2,563,262	5,612,674	2,183,018

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss)	$ (2,915,451)	$ (4,947,095)
Adjustments to reconcile net (loss) to net cash used in operating activities:
Change in fair value of derivative instruments	(2,110,145)	(389,194)
Stock and warrant based compensation	37,741	115,000
Non-cash interest expense	3,989,339	4,711,168
Change in assets and liabilities
Accounts payable and accrued expenses	39,649	(65,251)
Net cash used in operating activities	(958,867)	(575,372)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible notes	125,000	45,000
Proceeds from issuance of preferred stock	860,000	1,200,000
Repayments of convertible notes	(47,500)	(360,000)
Net cash provided by financing activities	937,500	885,000
NET INCREASE (DECREASE) IN CASH	(21,367)	$ 309,628
CASH - BEGINNING OF PERIOD	23,858
CASH - END OF PERIOD	$ 2,491	$ 309,628
Non-cash financing activities
Conversion of convertible notes and interest to common stock		$ 131,929
Conversion of preferred stock to common stock	$ 245,000
Debt discount recognized as derivative liabiltiy	$ 110,604	$ 45,000

Basis of Presentation

Basis of Presentation	9 Months Ended
	Mar. 31, 2016
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 nine and three months ended March 31, 2016 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	9 Months Ended
	Mar. 31, 2016
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 March 31, 2016, the Company had negative working capital of $21,180,944, an accumulated deficit of $96,153,638 and a capital deficiency of $21,284,496. The Company had a loss from operations of $(1,036,654) for the nine months ended March 31, 2016. 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	9 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 3. Summary of Significant Accounting Policies Principles of Consolidation. The consolidated financial statements include the accounts of our wholly owned subsidiary, Intellect USA. Use of Estimates. The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States involves the use of estimates and assumptions that affect the recorded amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates include the fair value of derivative instruments, including stock options and warrants to purchase our common stock, recognition of clinical trial costs, certain consulting expenses and deferred taxes. Actual results may differ substantially from these estimates. Revenue Recognition . We recognize revenue in accordance with authoritative accounting guidance, which provides that non-refundable upfront and research and development milestone payments and payments for services are recognized as revenue as the related services are performed over the term of the collaboration. Convertible Instruments We evaluate and account for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities”. Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. We account for convertible instruments (when we have determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: We record when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. We also record when necessary, deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the transaction and the effective conversion price embedded in the preferred shares. Common Stock Purchase Warrants We classify as equity any contracts that require physical settlement or net-share settlement or provide us a choice of net-cash settlement or settlement in our own shares (physical settlement or net-share settlement) provided that such contracts are indexed to our own stock as defined in ASC 815-40 (“Contracts in Entity’s Own Equity”). We classify as assets or liabilities any contracts that require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside our control) or give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). We assess classification of our common stock purchase warrants and other free standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. Preferred Stock . We apply the guidance enumerated in ASC 480 “Distinguishing Liabilities from Equity” when determining the classification and measurement of preferred stock. Preferred shares subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. We classify conditionally redeemable preferred shares (if any), which includes preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our control, as temporary equity. At all other times, we classified our preferred shares in stockholders’ equity. Derivative Instruments . Our derivative financial instruments consist of embedded derivatives related to the convertible debt, warrants and beneficial conversion features embedded within our convertible debt. The accounting treatment of derivative financial instruments requires that we record the derivatives and related warrants at their fair values as of the inception date of the debt agreements and at fair value as of each subsequent balance sheet date. Any change in fair value was recorded as non-operating, non-cash income or expense at each balance sheet date. If the fair value of the derivatives was higher at the subsequent balance sheet date, we recorded a non-operating, non-cash charge. If the fair value of the derivatives was lower at the subsequent balance sheet date, we recorded non-operating, non-cash income. During the nine and three month periods ended March 31, 2016, we recognized other income of $2,110,145 and other loss of $(235,290), respectively, relating to recording the derivative instruments fair value. At March 31, 2016 and June 30, 2015, there were approximately $683,000 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 March 31, 2016: Estimated dividends None Expected volatility 188 % Risk-free interest rate 0.49% - 1.58 % Expected term (years) 1 month - 5 years

Notes Payable

Notes Payable	9 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Notes Payable	Note 4. Notes Payable The following table presents the components of Convertible Notes Payable at March 31, 2016 and June 30, 2015: March 31, 2016 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 Convertible Notes issued during fiscal year ending June 30, 2016 125,000 Balance at End of Period $ 2,785,000 $ 2,957,500 Less debt discount: 222,751 451,898 Convertible Notes Payable, Net $ 2,562,249 $ 2,505,602 Classified as follows on the accompanying consolidated balance sheets: Current portion of Convertible Notes Payable $ 2,456,447 $ 2,166,472 Long term portion of Convertible Notes Payable 105,802 339,130 $ 2,562,249 $ 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, $325,000 and $125,000, which are convertible into the Company's common shares at a conversion price of $0.08, $0.14 and $0.10 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 360,000 Total $ 2,785,000

Convertible Preferred Stock

Convertible Preferred Stock	9 Months Ended
	Mar. 31, 2016
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 , on July 1, 2015, 36,201 shares of Series B Convertible Preferred Stock plus accrued dividends thereon were exchanged for 1,081 shares of Series H Convertible Preferred Stock. There were no conversions of Series B Convertible Preferred Stock during the nine months ended March 31, 2016 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 , on November 30, 2015, an aggregate of $1,086,333 Stated Value and accrued dividends of Series C Preferred Stock were exchanged for shares of Series F Convertible Preferred Stock. As described more fully below under , on November 30, 2015, 700 shares of Series C Convertible Preferred Stock were exchanged for 700 shares of Series G Preferred Stock. During the nine months ended March 31, 2016, 2,238 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 March 31, 2016. 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. As described more fully below under , on November 30, 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 nine months ended March 31, 2016. 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 nine months ended March 31, 2016. 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 nine months ended March 31, 2016, 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 1,081 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. 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 except as otherwise required by law, and in such event, 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 nine month periods ended March 31, 2016

Outstanding Warrants

Outstanding Warrants	9 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and June 30, 2015. All Warrants have a 5 year term and are exercisable at March 31, 2016. 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 and 625,000 warrants, which have an exercise price of $15.625 and $0.10 per share, respectively. Warrants outstanding at June 30, 2015 12,470,327 Issued 16,505,000 Exercised - Expired - Warrants outstanding at March 31, 2016 28,975,327

Capital Deficiency

Capital Deficiency	9 Months Ended
	Mar. 31, 2016
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. In February 2016, we issued 303,352 shares of our common stock to Mr. Elliot Maza, our Chief Executive Officer and CFO pursuant to the terms of his employment agreement with the Company. In March 2016, we issued 50,000 shares of our common stock to Dr. Troy Rohn, our lead scientific advisor, and 100,000 shares of our common stock to another service provider.

Income Taxes

Income Taxes	9 Months Ended
	Mar. 31, 2016
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	9 Months Ended
	Mar. 31, 2016
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 except as described below: Financing Transaction On April 14, 2016, (the “Closing Date”) Intellect Neurosciences, Inc. (the “Company”) entered into a stock purchase agreement (the “Purchase Agreement”) with certain accredited investors (the “Investors”), pursuant to which the Company sold an aggregate of $250,000 principal amount of its convertible promissory notes (each, a “Note”) to the Investors (the “Financing”). The Company received $250,000 gross proceeds. The Notes are convertible, at the option of the holder, into shares of the Company’s common stock, par value $0.001 per share, at a per share price of $0.10 (the “Conversion Price”), subject to adjustment as provided in the Notes and subject to a total beneficial ownership limitation of 9.99% of the Company’s issued and outstanding common stock. Each Note has a maturity date (the “Maturity Date”) that is two years from the Closing Date. The Maturity Date may be accelerated, at the option of the holder, upon the occurrence of a Major Liquidity Event or a Minor Liquidity Event (each as defined in the Note). In accordance with the Purchase Agreement, Investors who acquire Notes for cash subscription amounts may thereafter acquire Notes in exchange for shares of the Company’s Series G 8% Convertible Preferred Stock initially issued on July 1, 2015. The Purchase Agreement included standard closing conditions. In addition the closing was contingent upon the Company’s entering into an Intercreditor Agreement (the “Intercreditor Agreement”) by and among the Company, the Investors and certain holders of the Company’s outstanding promissory notes (the “Junior Lenders”). The purpose of the Intercreditor Agreement was to establish the relative priority of the Notes and the obligations due by the Company to the Junior Lenders and to provide for the orderly sharing of payments by the Company among the Investors and the Junior Lenders. The Financing was conducted as a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, (the “Securities Act”) and Rule 506 of Regulation D promulgated thereunder. Change to Material Agreement In May 2008, we entered into a License Agreement (the “License”) with AHP Manufacturing BV, acting through its Wyeth Medica Ireland Branch and Elan Pharma International Limited to provide Wyeth and Elan (collectively, the “Licensees”) with certain license rights under certain of our patents and patent applications (the “Licensed Patents”) relating to certain antibodies that may serve as potential therapeutic products for the treatment for Alzheimer’s Disease (the “Licensed Products”). We granted the Licensees a non-exclusive license under the Licensed Patents to research, develop, manufacture and commercialize Licensed Products. In 2012, the Licensees discontinued all studies of the drug covered by the Licensed Patents. On March 29, 2016, the Licensees sent us a notice of termination of the License, such termination to become effective on May 29, 2016.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation. The consolidated financial statements include the accounts of our wholly owned subsidiary, Intellect USA.
Use of Estimates	Use of Estimates. The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States involves the use of estimates and assumptions that affect the recorded amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates include the fair value of derivative instruments, including stock options and warrants to purchase our common stock, recognition of clinical trial costs, certain consulting expenses and deferred taxes. Actual results may differ substantially from these estimates.
Revenue Recognition	Revenue Recognition . We recognize revenue in accordance with authoritative accounting guidance, which provides that non-refundable upfront and research and development milestone payments and payments for services are recognized as revenue as the related services are performed over the term of the collaboration.
Convertible Instruments	Convertible Instruments We evaluate and account for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities”. Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. We account for convertible instruments (when we have determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: We record when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. We also record when necessary, deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the transaction and the effective conversion price embedded in the preferred shares.
Common Stock Purchase Warrants	Common Stock Purchase Warrants We classify as equity any contracts that require physical settlement or net-share settlement or provide us a choice of net-cash settlement or settlement in our own shares (physical settlement or net-share settlement) provided that such contracts are indexed to our own stock as defined in ASC 815-40 (“Contracts in Entity’s Own Equity”). We classify as assets or liabilities any contracts that require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside our control) or give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). We assess classification of our common stock purchase warrants and other free standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required.
Preferred Stock	Preferred Stock . We apply the guidance enumerated in ASC 480 “Distinguishing Liabilities from Equity” when determining the classification and measurement of preferred stock. Preferred shares subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. We classify conditionally redeemable preferred shares (if any), which includes preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our control, as temporary equity. At all other times, we classified our preferred shares in stockholders’ equity.
Derivative Instruments	Derivative Instruments . Our derivative financial instruments consist of embedded derivatives related to the convertible debt, warrants and beneficial conversion features embedded within our convertible debt. The accounting treatment of derivative financial instruments requires that we record the derivatives and related warrants at their fair values as of the inception date of the debt agreements and at fair value as of each subsequent balance sheet date. Any change in fair value was recorded as non-operating, non-cash income or expense at each balance sheet date. If the fair value of the derivatives was higher at the subsequent balance sheet date, we recorded a non-operating, non-cash charge. If the fair value of the derivatives was lower at the subsequent balance sheet date, we recorded non-operating, non-cash income. During the nine and three month periods ended March 31, 2016, we recognized other income of $2,110,145 and other loss of $(235,290), respectively, relating to recording the derivative instruments fair value. At March 31, 2016 and June 30, 2015, there were approximately $683,000 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 March 31, 2016: Estimated dividends None Expected volatility 188 % Risk-free interest rate 0.49% - 1.58 % Expected term (years) 1 month - 5 years

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Mar. 31, 2016
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 March 31, 2016: Estimated dividends None Expected volatility 188 % Risk-free interest rate 0.49% - 1.58 % Expected term (years) 1 month - 5 years

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments [Table Text Block]	The following table presents the components of Convertible Notes Payable at March 31, 2016 and June 30, 2015: March 31, 2016 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 Convertible Notes issued during fiscal year ending June 30, 2016 125,000 Balance at End of Period $ 2,785,000 $ 2,957,500 Less debt discount: 222,751 451,898 Convertible Notes Payable, Net $ 2,562,249 $ 2,505,602 Classified as follows on the accompanying consolidated balance sheets: Current portion of Convertible Notes Payable $ 2,456,447 $ 2,166,472 Long term portion of Convertible Notes Payable 105,802 339,130 $ 2,562,249 $ 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 360,000 Total $ 2,785,000

Outstanding Warrants (Tables)

Outstanding Warrants (Tables)	9 Months Ended
	Mar. 31, 2016
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 and 625,000 warrants, which have an exercise price of $15.625 and $0.10 per share, respectively. Warrants outstanding at June 30, 2015 12,470,327 Issued 16,505,000 Exercised - Expired - Warrants outstanding at March 31, 2016 28,975,327

Business Description and Goin19

Business Description and Going Concern (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Business Description And Going Concern Details Textual
Working capital deficit	$ 21,180,944		$ 21,180,944
Accumulated deficit	96,153,638		96,153,638
Total Capital Deficiency	(21,284,496)		(21,284,496)		$ (21,089,989)
Loss from operations	$ (242,383)	$ (532,801)	$ (1,036,654)	$ (617,432)

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Details)	9 Months Ended
	Mar. 31, 2016
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 month
Maximum [Member]
Derivatives, Fair Value [Line Items]
Risk-free interest rate	1.58%
Expected term (years)	5 years

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2015
Accounting Policies [Abstract]
Derivative, Gain (Loss) on Derivative, Net, Total	$ (235,290)	$ 2,110,145
Derivative Liabilities			$ 683,000	$ 2,700,000

Notes Payable (Details)

Notes Payable (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Balance at End of Period	$ 2,785,000	$ 2,957,500
Less debt discount:	222,751	451,898
Convertible Notes Payable, Net	2,562,249	2,505,602
Classified as follows on the accompanying consolidated balance sheets:
Current portion of Convertible Notes Payable	2,456,447	2,166,472
Long term portion of Convertible Notes Payable	105,802	339,130
Convertible Notes Payable	2,562,249	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
Convertible Notes Six [Member]
Balance at End of Period	$ 125,000

Notes Payable (Details 1)

Notes Payable (Details 1)	Mar. 31, 2016USD ($)
Convertibe Notes Payable are payable as follows:
Past Due	$ 531,500
Year ending December 31, 2016	1,893,500
Year ending December 31, 2017	360,000
Total	$ 2,785,000

Notes Payable (Details Textual)

Notes Payable (Details Textual) - USD ($)	9 Months Ended
	Mar. 31, 2016	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	$ 125,000	$ 420,000	$ 325,000
Common shares conversion price	$ 0.10	$ 0.08	$ 0.14
Convertible notes payable period	3 years

Convertible Preferred Stock (De

Convertible Preferred Stock (Details Textual) - USD ($)	1 Months Ended		9 Months Ended
	Nov. 30, 2015	Jul. 31, 2015	Mar. 31, 2016	Jun. 30, 2015
Convertible Preferred Stock And Derivative Liability [Line Items]
Warrant to purchase of common stock exercise price			$ 1.25
Series C Convertible Preferred Stock [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Preferred Stock, Dividend Rate, Percentage			14.00%
Preferred Stock Initial Conversion Price Per Share			$ 1.25
Convertible Preferred Stock, Total Shares Issued Upon Conversion			800
Preferred Stock Stated Value Per Share			$ 1,000
Conversion of Stock, Shares Converted			1,066,400
Conversion of Stock, Shares Issued			2,238
Preferred Stock liquidation preference			$ 22,728,099
Preferred stock value stated			1,000
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		1,081
Shares issued		2,000
Preferred Stock liquidation preference		$ 2,000	2,260,591
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
Convertible Preferred Stock, Total Shares Issued Upon Conversion	700
Preferred Stock Stated Value Per Share		$ 0.001
Conversion of Stock, Shares Converted		36,201
Conversion of Stock, Shares Issued		3,490
Shares issued		10,000
Preferred Stock liquidation preference		$ 2,000	$ 7,402,902
Preferred stock value stated		$ 1,000
Warrants exercisable period		5 years
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
Preferred Stock Stated Value Per Share			$ 1,000
Conversion of Stock, Shares Converted			1,450,000
Conversion of Stock, Shares Issued			245
Warrant to purchase of common stock	880,000
Warrant to purchase of common stock exercise price	$ 0.001
Shares issued	1,577
Gross cash proceeds from shares issued	$ 110,000
Cancellation of an aggregate of principal and accrued interest	380,900
Aggregate stated value and accrued dividends	$ 1,086,333
Preferred Stock liquidation preference			$ 6,230,370
Preferred stock value stated			$ 2,000
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 Stated Value Per Share			$ 1,000
Preferred Stock liquidation preference			$ 23,521,430
Series D Convertible Preferred Stock [Member]
Convertible Preferred Stock And Derivative Liability [Line Items]
Preferred Stock, Dividend Rate, Percentage			8.00%
Preferred Stock Initial Conversion Price Per Share			$ 1.25
Convertible Preferred Stock, Total Shares Issued Upon Conversion			800
Preferred Stock Stated Value Per Share			$ 1,000
Conversion of Stock, Shares Converted			2,039
Conversion of Stock, Shares Issued			1,675
Preferred Stock liquidation preference			$ 1,399,960
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
Warrant to purchase of common stock		15,000,000
Warrant to purchase of common stock exercise price		$ .10
Warrant to purchase of common stock term		5 years
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			$ 1,133,267

Outstanding Warrants (Details)

Outstanding Warrants (Details) - Warrant [Member]	9 Months Ended
	Mar. 31, 2016shares
Warrants outstanding	12,470,327
Issued	16,505,000
Exercised	0
Expired	0
Warrants outstanding	28,975,327

Outstanding Warrants (Details T

Outstanding Warrants (Details Textual)	9 Months Ended
	Mar. 31, 2016USD ($)$ / shares
Warrants Expiration, Term	5 years
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 1.25
Warrants exercise price	$ 15.625
Warrant One [Member]
Warrant or Right, outstanding | $	$ 44,800
Warrants exercise price	$ 15.625
Warrant Two [Member]
Warrant or Right, outstanding | $	$ 625,000
Warrants exercise price	$ 0.10

Capital Deficiency (Details Tex

Capital Deficiency (Details Textual) - shares	1 Months Ended
	Mar. 31, 2016	Feb. 28, 2016	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				250,000	816,400
Series F Convertible Preferred Stock [Member]
Schedule of Equity Method Investments [Line Items]
Stock Issued During Period, Shares, Issued for Services			500,000	300,000	650,000
Common stock to Mr. Elliot Maza [member]
Schedule of Equity Method Investments [Line Items]
Stock Issued During Period, Shares, Issued for Services		303,352
Dr. Troy Rohn [Member]
Schedule of Equity Method Investments [Line Items]
Stock Issued During Period, Shares, Issued for Services	50,000
service provider [Member]
Schedule of Equity Method Investments [Line Items]
Stock Issued During Period, Shares, Issued for Services	100,000

Income Taxes (Details Textual)

Income Taxes (Details Textual)	9 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Percentage Of Valuation Allowance For Operating Loss	100.00%

Subsequent Events (Details Text

Subsequent Events (Details Textual) - USD ($)	Apr. 14, 2016	Mar. 31, 2016	Jun. 30, 2015
Common stock stock exercise price		$ 0.10
Common Stock, Par or Stated Value Per Share		$ 0.001	$ 0.001
Ownership limitation		9.99%
Subsequent Event [Member]
Convertible promissory note	$ 250,000
Gross proceeds from convertible promissory note	$ 250,000