Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2016 | May. 05, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | Cellceutix CORP | |
Entity Central Index Key | 1,355,250 | |
Trading Symbol | ctix | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Common Stock, Shares Outstanding | 122,540,536 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Current Assets: | ||
Cash | $ 5,335,000 | $ 8,410,000 |
Prepaid expenses and other current assets | 440,000 | 347,000 |
Subscription receivable | 25,000 | 12,000 |
Total Current Assets | 5,800,000 | 8,769,000 |
Other Assets: | ||
Patent costs - net | 4,990,000 | 5,018,000 |
Property, plant and equipment -net | 93,000 | 38,000 |
Deferred offering costs | 412,000 | 494,000 |
Total Other Assets | 5,495,000 | 5,550,000 |
Total Assets | 11,295,000 | 14,319,000 |
Current Liabilities: | ||
Accounts payable - (including related party payables of approx. $1,504,000 and $1,686,000, respectively) | 3,121,000 | 1,838,000 |
Accrued expenses - (including related party accruals of approx. $185,000 and $115,000, respectively) | 425,000 | 593,000 |
Accrued salaries and payroll taxes -(including related party accrued salaries of approx. $2,777,000 and $2,777,000, respectively) | 2,861,000 | 2,842,000 |
Note payable - related party | 2,022,000 | 2,022,000 |
Total Current Liabilities | 8,429,000 | 7,295,000 |
Total Liabilities | $ 8,429,000 | $ 7,295,000 |
Commitments and contingencies (Note 7) | ||
Stockholders' Equity | ||
Preferred stock, $0.001 par value, 500,000 designated shares, no shares issued and outstanding | ||
Common Stock - Class A, $.0001 par value, 300,000,000 shares authorized, 121,440,536 and 117,763,508 issued and outstanding as of March 31, 2016 and June 30, 2015, respectively | $ 12,000 | $ 12,000 |
Common Stock - Class B, (10 votes per share); $.0001 par value, 100,000,000 shares authorized, no shares issued and outstanding as of March 31, 2016 and June 30, 2015, respectively | ||
Additional paid-in capital | $ 53,627,000 | $ 48,177,000 |
Accumulated deficit | (50,773,000) | (41,165,000) |
Total Stockholders' Equity | 2,866,000 | 7,024,000 |
Total Liabilities and Stockholders' Equity | $ 11,295,000 | $ 14,319,000 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Current Liabilities: | ||
Accounts payable, related party payables (in dollars) | $ 1,504,000 | $ 1,686,000 |
Accrued expenses, related party accruals (in dollars) | 185,000 | 115,000 |
Accrued salaries, due to related parties (in dollars) | $ 2,777,000 | $ 2,777,000 |
Stockholders' Equity | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares designated (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Stock - Class A, par value (in dollars per share) | $ 0.0001 | $ .0001 |
Common Stock - Class A, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common Stock - Class A, shares issued (in shares) | 121,440,536 | 117,763,508 |
Common Stock - Class A, shares outstanding (in shares) | 121,440,536 | 117,763,508 |
Common Stock - Class B, par value (in dollars per share) | $ .0001 | $ .0001 |
Common Stock - Class B, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock - Class B, shares issued (in shares) | 0 | 0 |
Common Stock - Class B, shares outstanding (in shares) | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Consolidated Statements Of Operations | ||||
Revenues | ||||
Operating expenses: | ||||
Research and development expenses | $ 3,025,000 | $ 2,318,000 | $ 6,986,000 | $ 8,117,000 |
General and administrative expenses | 249,000 | 275,000 | 940,000 | 748,000 |
Officers' payroll and payroll tax expenses | 138,000 | 138,000 | 398,000 | 680,000 |
Professional fees | 247,000 | 114,000 | 1,135,000 | 359,000 |
Total operating expenses | 3,659,000 | 2,845,000 | 9,459,000 | 9,904,000 |
Loss from operations | (3,659,000) | (2,845,000) | (9,459,000) | (9,904,000) |
Other expenses | ||||
Interest income | 1,000 | 1,000 | 3,000 | 3,000 |
Interest expense | $ (51,000) | $ (51,000) | $ (152,000) | (152,000) |
Sundry income | 9,000 | |||
Total other expenses | $ (50,000) | $ (50,000) | $ (149,000) | (140,000) |
Loss before provision for income taxes | $ (3,709,000) | $ (2,895,000) | $ (9,608,000) | $ (10,044,000) |
Provision for income taxes | ||||
Net loss | $ (3,709,000) | $ (2,895,000) | $ (9,608,000) | $ (10,044,000) |
Basic and diluted loss per share attributable to common stockholders | $ (0.03) | $ (0.02) | $ (0.08) | $ (0.09) |
Weighted average number of common shares | 120,204,272 | 116,885,350 | 119,001,662 | 114,221,789 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (9,608,000) | $ (10,044,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Common stock and stock options issued as payment for services and financing costs | 548,000 | 330,000 |
Amortization of patent costs | 308,000 | 297,000 |
Depreciation of equipment | 13,000 | 7,000 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (93,000) | (54,000) |
Accounts payable | 1,283,000 | (619,000) |
Accrued expenses | (167,000) | (33,000) |
Accrued officers' salaries and payroll taxes | 19,000 | (318,000) |
Net cash used in operating activities | (7,697,000) | (10,434,000) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property, plant and equipment | (68,000) | (9,000) |
Patent costs | (280,000) | (441,000) |
Net cash used in investing activities | (348,000) | (450,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Sale of common stock, net of offering costs | 4,958,000 | 15,845,000 |
Exercise of stock options and warrants | 12,000 | 855,000 |
Net cash provided by financing activities | 4,970,000 | 16,700,000 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (3,075,000) | 5,816,000 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 8,410,000 | 4,988,000 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 5,335,000 | 10,804,000 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for interest | $ 74,000 | 352,000 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH FLOW INVESTING AND FINANCING ACTIVITIES | ||
Shares issued as deferred offering costs | 499,000 | |
Redeemable common stock | $ (1,400,000) |
Basis of Presentation and Natur
Basis of Presentation and Nature of Operations | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 1 - Basis of Presentation and Nature of Operations | Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements of Cellceutix Corporation have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or the SEC, including the instructions to Form 10-Q and Regulation S-X. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted from these statements pursuant to such rules and regulations and, accordingly, they do not include all the information and notes necessary for comprehensive consolidated financial statements and should be read in conjunction with our audited financial statements for the year ended June 30, 2015, included in our Annual Report on Form 10-K for the year ended June 30, 2015. In the opinion of the management of the Company, all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the three and nine month periods have been made. Results for the interim periods presented are not necessarily indicative of the results that might be expected for the entire fiscal year. When used in these notes, the terms "Company", "we", "us" or "our" mean Cellceutix Corporation. Cellceutix Corporation was incorporated on August 1, 2005, in the State of Nevada. On December 6, 2007, the Company acquired Cellceutix Pharma, Inc., a privately owned corporation formed under the laws of the State of Delaware on June 20, 2007. Following the acquisition, the Company changed its name to Cellceutix Corporation. Cellceutix Corporation dissolved its subsidiary Cellceutix Pharma, Inc. in 2014. The Company is a clinical stage biopharmaceutical company and has no customers, products or revenues to date. The Company's Common Stock is quoted on the Over the Counter market (OTC), symbol "CTIX". The Company's application to list its common stock on the NASDAQ Capital Market remains in process. All amounts, where it is designated in these notes to the financial statements as an approximate amount, are rounded to the nearest thousand dollars. Nature of Operations - Overview We are in the business of developing innovative small molecule therapies to treat diseases with significant medical need, particularly in the areas of cancer, antibiotics and inflammatory disease. Our strategy is to use our business and scientific expertise to maximize the value of our pipeline. We will do this by focusing initially on our lead compounds, Brilacidin, Kevetrin and Prurisol and advancing them as quickly as possible along the regulatory pathway. We will develop the highest quality data and broadest intellectual property to support our compounds. We currently own all development and marketing rights to our products. In order to successfully develop and market our products, we may have to partner with other companies. Prospective partners may require that we grant them significant development and/or commercialization rights in return for agreeing to share the risk of development and/or commercialization. |
Liquidity
Liquidity | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 2 - Liquidity | At March 31, 2016, we had $5,335,000 in cash and cash equivalents. We have expended substantial funds on the research and development of our product candidates. Our net losses for the nine months ended March 31, 2016 and 2015, amounted to $9,608,000 and $10,044,000, respectively, and a working capital (deficit) of approximately $(2,629,000) and working capital of $1,474,000, respectively at March 31, 2016 and June 30, 2015. On March 30, 2015, the Company entered into a common stock purchase agreement with Aspire Capital Fund, LLC, an Illinois limited liability company ("Aspire Capital") which provides that, upon the terms and subject to the conditions and limitations set forth therein, Aspire Capital is committed to purchase up to an aggregate of $30.0 million of the Company's common stock over the 36-month term of the Purchase Agreement. As of March 31, 2016, the available balance is $25 million. The Company plans to incur expenses of approximately $22 million over the next twelve months, including approximately $17 million for clinical trials. The Company has limited experience with pharmaceutical drug development. As such, the budget estimate may not be accurate. In addition, the actual work to be performed is not known at this time, other than a broad outline, as is normal with any scientific work. As further work is performed, additional work may become necessary or change in plans or workload may occur. Such changes may have an adverse impact on our estimated budget and on our projected timeline of drug development. Management believes that the amounts available from Aspire and under the Company's effective shelf registration statement will be sufficient to fund the Company's operations for the next 12 months. If we are unable to generate enough working capital from our current financing agreement with Aspire Capital when needed or secure additional sources of funding, it may be necessary to significantly reduce our current rate of spending through reductions in staff and delaying, scaling back or stopping certain research and development programs, including more costly Phase 2 and Phase 3 clinical trials on our wholly-owned development programs as these programs progress into later stage development. Insufficient liquidity may also require us to relinquish greater rights to product candidates at an earlier stage of development or on less favorable terms to us and our stockholders than we would otherwise choose in order to obtain up-front license fees needed to fund operations. These events could prevent us from successfully executing our operating plan. |
Significant Accounting Policies
Significant Accounting Policies and Recent Accounting Pronouncements | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 3 - Significant Accounting Policies and Recent Accounting Pronouncements | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions include contract research accruals, recoverability of long-lived assets, measurement of stock-based compensation, and the periods of performance under collaborative research and development agreements. The Company bases its estimates on historical experience and various other assumptions that management believes to be reasonable under the circumstances. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates. Basic Earnings (Loss) per Share Basic and diluted earnings (loss) per share are computed based on the weighted-average common shares and common share equivalents outstanding during the period. Common share equivalents consist of stock options, warrants and convertible notes payable. Common share equivalents of 44.0 million shares and 44.4 million shares were excluded from the computation of diluted earnings (loss) per share for the three months and nine months ended March 31, 2016 and 2015, respectively, because their effect is anti-dilutive. Accounting for Stock Based Compensation The stock-based compensation expense incurred by Cellceutix for employees and directors in connection with its stock option plan is based on the employee model of ASC 718, and the fair market value of the options is measured at the grant date. Under ASC 718 employee is defined as "An individual over whom the grantor of a share-based compensation award exercises or has the right to exercise sufficient control to establish an employer-employee relationship based on common law as illustrated in case law and currently under U.S. tax regulations". Our consultants do not meet the employer-employee relationship as defined by the IRS and therefore are accounted for under ASC 505-50. ASC 505-50-30-11 (previously EITF 96-18) further provides that an issuer shall measure the fair value of the equity instruments in these transactions using the stock price and other measurement assumptions as of the earlier of the following dates, referred to as the measurement date: i. The date at which a commitment for performance by the counterparty to earn the equity instruments is reached (a performance commitment); and ii. The date at which the counterparty's performance is complete. We have elected to use the Black-Scholes-Merton pricing model to determine the fair value of stock options on the dates of grant. Restricted stock units are measured based on the fair market values of the underlying stock on the dates of grant. We recognize stock-based compensation using the straight-line method. The components of stock based compensation related to stock options in the Company's Statement of Operations for the three months and nine months ended March 31, 2016 and 2015 are as follows (rounded to nearest thousand): Three Months Ended Nine months Ended March 31, March 31, 2016 2015 2016 2015 General and administrative expenses Professional fees $ - $ - $ 432,000 $ - Employees' bonus - 1,000 - 13,000 Research and development expenses Professional fees $ 18,000 $ - $ 96,000 $ - Employees' bonus - 7,000 - 103,000 Officers' bonus - 15,000 20,000 214,000 Total share-based compensation expense $ 18,000 $ 23,000 $ 548,000 $ 330,000 Recent Accounting Pronouncements Standards Issued Not Yet Adopted In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial StatementsGoing ConcernDisclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern" ("ASU 2014-15"). The ASU 2014-15 requires management to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. ASU 2014-15 is effective for annual periods, and interim periods within those annual periods, starting after December 15, 2016; the Company's first quarter of fiscal 2018. Management is currently evaluating the impact of this standard on our consolidated financial statements. In May 2014, the FASB issued authoritative guidance that defines how companies should report revenues from contracts with customers. The standard requires an entity to 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. It provides companies with a single comprehensive five-step principles based model to use in accounting for revenue and supersedes current revenue recognition requirements, including most industry-specific and transaction-specific revenue guidance. In August 2015, the FASB deferred the effective date of the new revenue standard by one year. As a result, the new standard would not be effective for the Company until 2019. In addition, the FASB is allowing companies to early adopt this guidance for non-public entities beginning in fiscal year 2017. The guidance permits an entity to apply the standard retrospectively to all prior periods presented, with certain practical expedients, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company will apply this new guidance when it becomes effective and has not yet selected a transition method. The Company is currently evaluating the impact of adoption on its financial statements. In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation. The amendments in this ASU apply to reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target can be achieved after the requisite service period. This ASU is the final version of Proposed ASU EITF-13D--Compensation--Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, which has been deleted. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. As indicated in the definition of vest, the stated vesting period (which includes the period in which the performance target could be achieved) may differ from the requisite service period. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, and early adoption is permitted. Management believes that the adoption of this guidance will not have a material impact on our consolidated financial statements. In June 2015, FASB issued ASU No. 2015-10, Technical Corrections and Updates. ASU No. 2015-10 is intended to correct differences between original guidance and the Codification, clarify the guidance, correct references and make minor improvements affecting a variety of topics. ASU No. 2015-10 covers a wide range of topics in the Codification and is generally categorized as follows: Amendments Related to Differences between Original Guidance and the Codification; Guidance Clarification and Reference Corrections; Simplification; and Minor Improvements. The amendments are effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. Management believes that the adoption of this guidance will not have a material impact on our consolidated financial statements. In February 2016, FASB issued ASU-2016-02, "Leases (Topic 842)." The guidance requires that a lessee recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right of use asset representing its right to use the underlying asset for the lease term. For finance leases: the right-of-use asset and a lease liability will be initially measured at the present value of the lease payments, in the statement of financial position; interest on the lease liability will be recognized separately from amortization of the right-of-use asset in the statement of comprehensive income; and repayments of the principal portion of the lease liability will be classified within financing activities and payments of interest on the lease liability and variable lease payments within operating activities in the statement of cash flows. For operating leases: the right-of-use asset and a lease liability will be initially measured at the present value of the lease payments, in the statement of financial position; a single lease cost will be recognized, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis; and all cash payments will be classified within operating activities in the statement of cash flows. Under Topic 842 the accounting applied by a lessor is largely unchanged from that applied under previous GAAP. The amendments in Topic 842 are effective for the Company beginning January 1, 2019, including interim periods within that fiscal year. Management believes that the adoption of this guidance will not have a material impact on our consolidated financial statements. |
Patents, net
Patents, net | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 4 - Patents, net | Patents, net consisted of the following (rounded to nearest thousand): Useful life (years) March 31, 2016 June 30, 2015 Purchased Patent Rights Brilacidin, and related compounds 14 $ 4,082,000 $ 4,082,000 Purchased Patent Rights Delparantag and related compounds 12 480,000 480,000 Purchased Patent Rights Anti-microbial- surfactants and related compounds 12 144,000 144,000 Patents Kevetrin and related compounds 17 1,272,000 992,000 5,978,000 5,698,000 Less: Accumulated amortization (988,000 ) (680,000 ) $ 4,990,000 $ 5,018,000 The patents are amortized on a straight-line basis over the estimated remaining useful lives of the assets, determined 12-17 years from the date of acquisition. Amortization expense was approximately $105,000 and $100,000, for the three months ended March 31, 2016 and 2015, respectively and was approximately $308,000, and $297,000 for the nine months ended March 31, 2016 and 2015, respectively. At March 31, 2016, the future amortization period for all patents was approximately 9.43 years to 15.43 years. Future estimated annual amortization expenses are approximately $105,000 for the year ending June 30, 2016, $418,000 for each year from 2017 to 2025, $376,000 for the year ending June 30, 2026, $366,000 for the year ending June 30, 2027, $129,000 for the year ending June 30, 2028, $75,000 for the year ending June 30, 2029 to year 2031 and $24,000 for year ending June 30, 2032. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 5 - Accrued Expenses | Accrued expenses consisted of the following (rounded to nearest thousand): March 31, 2016 June 30, 2015 Accrued research and development consulting fees $ 75,000 $ 478,000 Accrued rent (Note 8) related parties 34,000 42,000 Accrued interest related parties 151,000 73,000 Accrued professional fee 165,000 - Total $ 425,000 $ 593,000 |
Accrued Salaries and Payroll Ta
Accrued Salaries and Payroll Taxes - Related Parties And Other | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 6 - Accrued Salaries and Payroll Taxes - Related Parties And Other | Accrued salaries and payroll taxes consisted of the following (rounded to nearest thousand): March 31, 2016 June 30, 2015 Accrued salaries related parties $ 2,647,000 $ 2,647,000 Accrued payroll taxes related parties 130,000 130,000 Withholding tax 84,000 65,000 Total $ 2,861,000 $ 2,842,000 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 7 - Commitments and Contingencies | Lease Commitments Operating Leases The Company signed a lease extension agreement with Cummings Properties which began on October 1, 2013. The lease is for a term of five years ending on September 30, 2018, and requires monthly payments of approximately $18,000. Innovative Medical Research Inc., a company owned by Leo Ehrlich and Dr. Krishna Menon, officers and directors of the Company, have co-signed the lease and will sublease 200 square feet of space previously used by the Company and pay the Company $900 per month. As of March 31, 2016, future minimum lease payments to Cummings Properties required under the non-cancelable operating lease are as follows (rounded to nearest thousand): Year ending June 30, 2016 $ 53,000 2017 213,000 2018 213,000 2019 53,000 Total minimum payments $ 532,000 Rent expense, net of lease income, under this operating lease agreement was approximately $51,000 and $51,000, for the three months ended March 31, 2016 and 2015, respectively and was approximately $152,000 and $157,000 for the nine months ended March 31, 2016 and 2015, respectively. Before September, 2013, the Company paid rent to KARD for share of office space and details are shown at Note 8. Related Party Transactions. Contractual Commitments The Company has no contractual minimum commitments to Contract Research Organizations as of March 31, 2016. Services are billed to Cellceutix, when performed by the vendors. Litigation A complaint entitled O'Connell v. Cellceutix Corp. et al. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 8 - Related Party Transactions | Office Lease Dr. Menon, one of the Company's principal shareholders, President, and Director, also serves as the Chief Operating Officer and Director of Kard Scientific ("KARD"). On December 7, 2007, the Company began renting office space from KARD, on a month to month basis for $900 per month. This continued through August 2013 and since September 1, 2013, the Company no longer leases space from KARD or pays rent to KARD. In September 2013, the Company signed a lease extension agreement with Cummings Properties for the Company's offices and laboratories at 100 Cummings Center, Suite 151-B Beverly, MA 01915. The lease is for a term of five years from October 1, 2013 to September 30, 2018 and requires monthly payments of approximately $17,000. Cellceutix had taken over the space occupied by KARD. In addition, Innovative Medical Research Inc. ("Innovative Medical"), a company owned by Leo Ehrlich and Dr. Krishna Menon, officers and directors of Cellecutix, has co-signed the lease and will rent approximately 200 square feet of office space, the space previously used by Cellceutix and will pay Cellceutix $900 per month, the same amount Cellceutix previously paid KARD. Innovative Medical paid total rent of approximately $3,000 and $9,000,to Cellceutix for both of the three months and nine months ended March 31, 2016 and 2015, respectively, and the rental payment was offset with the accrued rent owed to KARD. At March 31, 2016 and June 30, 2015, rent payable to KARD of approximately $34,000 and $42,000, respectively, were included in accrued expenses. At March 31, 2016 and June 30, 2015, accrued directors' fee of approximately $19,000 and $0, respectively, were included in accounts payable. Clinical Studies The Company previously engaged KARD to conduct specified pre-clinical studies. The Company did not have an exclusive arrangement with KARD. The Company no longer uses KARD. During the nine months ended March 31, 2016, the Company repaid $200,000 to KARD. At March 31, 2016 and June 30, 2015, the accrued research and development expenses to KARD was approximately $1,486,000 and $1,686,000, respectively and this amount was included in accounts payable. |
Note Payable-Related Party
Note Payable-Related Party | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 9 - Note Payable - Related Party | During the year ended June 30, 2010, Mr. Ehrlich loaned the Company a total of approximately $973,000. A condition for this note was that the Ehrlich Promissory Note A and Ehrlich Promissory Note B be replaced with a new note, Ehrlich Promissory Note C . On May 8, 2012, the Company did not have the ability to repay the Ehrlich Promissory Note C loan and agreed to change the interest rate on the outstanding balance of principal and interest of approximately $2,248,000, as of March 31, 2012, from 9% simple interest to 10% simple interest, and the Company issued 2,000,000 Equity Incentive Options exercisable at $0.51 per share equal to 110% of the closing bid price of $0.46 per share on May 7, 2012. The options are valid for ten (10) years from the date of issuance. At March 31, 2016 and June 30, 2015, approximately $151,000 and $73,000 was accrued as interest expense on this note, respectively. At March 31, 2016 and June 30, 2015, principal balances of the demand note was approximately $2,022,000. |
Stock Options and Warrants
Stock Options and Warrants | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 10 - Stock Options and Warrants | Stock Options The fair value of options granted for the nine months ended March 31, 2016 and 2015 was estimated on the date of grant using the Black-Scholes-Merton model that uses assumptions noted in the following table. Nine months Ended March 31, 2016 2015 Expected term (in years) 3 3 Expected stock price volatility 56.52% to 65.76% 62.79% to 63.26% Risk-free interest rate 0.91% to 1.16% 0.76% to 1.19% Expected dividend yield 0 0 On April 5, 2009 the Board of Directors of the Company adopted the 2009 Stock Option Plan ("the 2009 Plan"). The 2009 Plan permits the grant of 2,000,000 shares of both Incentive Stock Options ("ISOs"), intended to qualify under section 422 of the Code, and Non-Qualified Stock Options. Under the 2010 Equity Incentive Plan adopted by the Board of Directors in December 2010, the total number of shares of common stock reserved and available for issuance under the 2010 Plan shall be 45,000,000 shares. Shares of common stock under the 2010 Plan may consist, in whole or in part, of authorized and unissued shares or treasury shares. The term of each stock option shall be fixed as provided, however, an Incentive Stock Option may be granted only within the ten-year period commencing from the effective date of the 2010 Plan and may only be exercised within ten years of the date of grant (or five years in the case of an Incentive Stock Option granted to an optionee who, at the time of grant, owns common stock possessing more than 10% of the total combined voting power of all classes of voting stock of the Company). On October 20, 2014 the Board of Directors approved the appointment of Dr. William James Alexander as the Chief Operations Officer of Cellceutix Corporation for the term of one year effective October 27, 2014. Pursuant to his employment agreement, Dr. Alexander received immediately 50,000 shares of the Company's Class A common stock as a sign-on bonus and 50,000 stock options to purchase shares of the Company's Class A common stock at $2.93 per share. The 25,000 stock options vested on July 27, 2015 and its option life of 3 years will expire on July 27, 2018. The remaining 25,000 stock options vested on October 27, 2015. Dr. William James Alexander resigned as the Chief Operations Officer on August 3, 2015 and continued working for the Company as a consultant. On July 10, 2015, the Company issued 7,028 shares and 50,000 options to a consultant for his one year contract and exercisable for 3 years at $2.49 per share of common stock. The total value of these 50,000 options was approximately $60,000 and we recognized approximately $60,000 of stock based compensation costs and charged to additional paid-in capital as of March 31, 2016. The assumptions we used in the Black-Scholes-Merton model were disclosed as above. On November 5, 2015 the Company issued one million stock options to a law firm for services, valued at approximately $432,000, based on the closing bid price as quoted on the OTC on November 5, 2015 at $1.36 per share. These options were issued with an exercise price of $1.70 and vested immediately, with a three year option term. These options have piggyback registration rights. On February 16, 2016 the Company issued 119,424 stock options to two consultants for services, valued at approximately $55,000, based on the closing bid price as quoted on the OTC on February 16, 2016 at $1.15 per share. These options were issued with an exercise price of $1.105. One third vests immediately, one third vests in six months (August 11, 2016), and the balance will vest on February 11, 2017, and will be valid for a period of three years. These options have piggyback registration rights. The Company recognized approximately $18,000 and $23,000 of stock based compensation costs related to stock and stock options awards for the three months ended March 31, 2016 and 2015, respectively. The Company recognized approximately $548,000 and $330,000 of stock based compensation costs related to stock and stock options awards for the nine months ended March 31, 2016 and 2015, respectively. The following table summarizes all stock option activity under the plans: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at June 30, 2015 38,762,500 $ 0.15 5.54 $ 94,217,650 Granted 1,169,424 1.67 Exercised (60,000 ) 0.42 Forfeited/expired (115,000 ) 0.61 Outstanding at March 31, 2016 39,756,924 $ 0.20 4.75 $ 54,726,138 Exercisable at March 31, 2016 39,677,308 $ 0.20 4.75 $ 54,689,913 Exercise of options During the three months ended December 31, 2015, the Company recorded subscription receivable of $8,000 for the exercise of 30,000 options at a price from $0.17 to $0.39 (See at Note 11 Equity Transactions). During the three months ended September 30, 2015, the Company recorded subscription receivable of $17,400 for the exercise of 30,000 options at a price from $0.49 to $0.64 (See at Note 11 Equity Transactions). Stock Warrants For the nine months ended March 31, 2016 The following table summarizes stock warrants: Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at June 30, 2015 1,507,000 1.14 0.52 $ 2,156,310 Extended - - - Granted - - - Exercised - - - Expired (1,482,000 ) 1.13 - Outstanding at March 31, 2016 25,000 $ 1.79 0.81 $ - Exercisable at March 31, 2016 25,000 $ 1.79 0.81 $ - |
Equity Transactions
Equity Transactions | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 11 - Equity Transactions | (1) Issuance of Common Stock for Cash $30 million Class A Common Stock Purchase Agreement with Aspire Capital Fund, LLC ("March 2015 Agreement") On March 30, 2015, the Company entered into a common stock purchase agreement with Aspire Capital Fund, LLC, an Illinois limited liability company which provides that, upon the terms and subject to the conditions and limitations set forth therein, Aspire Capital is committed to purchase up to an aggregate of $30.0 million of the Company's common stock over the 36-month term of the Purchase Agreement. In consideration for entering into the Purchase Agreement, the Company issued to Aspire Capital 160,000 shares of its Class A Common Stock as a commitment fee. The commitment fee of approximately $499,000 will be amortized as the funding is received. The amortized amount of approximately $87,000 was debited to additional paid-in capital. The unamortized portion is carried on the balance sheet as deferred offering costs and was approximately $412,000 at March 31, 2016. Concurrently with entering into the Purchase Agreement, the Company also entered into a registration rights agreement with Aspire Capital, in which the Company agreed to file one or more registration statements, as permissible and necessary to register, under the Securities Act of 1933, as amended, the sale of the shares of the Company's common stock that have been and may be issued to Aspire Capital under the Purchase Agreement. The Company has filed with the Securities and Exchange Commission a prospectus supplement, dated March 31, 2015, to the Company's prospectus filed as part of the Company's effective $75,000,000 shelf registration statement on Form S-3, File No. 333-199725, registering all of the shares of common stock that have been or may be offered and sold to Aspire Capital from time to time. During the period from March 30, 2015 to March 31, 2016, the Company had completed sales to Aspire totaling 3,700,000 shares of common stock generating gross proceeds of approximately $5.3 million. (2) Issuance of Common Stock by Exercise of Common Stock Options The Board of Directors approved the exercise of 60,000 Common Stock options at a range of $0.17 to $0.64 per share for $25,400 during the nine months ended March 31, 2016. (3) Issuance of Common Stock to Consultants For Services On July 10, 2015, the Company issued 7,028 Class A common shares to a consultant for service, valued at $17,500 based on the closing bid price as quoted on the OTC on July 10, 2015 at $2.49 per share. On February 9, 2016, the Company issued 10,000 Class A common shares to a consultant for service, valued at $11,200 based on the closing bid price as quoted on the OTC on February 9, 2016 at $1.12 per share. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Note 12 - Subsequent Events | On April 6, 2016, the Company issued 25,000 shares and 25,000 options to a consultant for service, exercisable for 3 years at $1.77 per share of common stock. The value of these 25,000 shares at $1.61 per share and 25,000 options was approximately $40,000 and $14,000, respectively, with total of approximately $54,000. From April 1, 2016 to May 5, 2016, the Company has generated additional proceeds of approximately $1.7 million under the Common Stock Purchase Agreement with Aspire from the sale of 1,100,000 shares of its common stock. In the latter part of April 2016, the Company decided to write off its patent rights to Delparantag. Delparantag was acquired by Cellceutix in the purchase of assets from the Polymedix Estate. The Company believes the compound which had clinical activity but also safety concerns in a prior clinical trial by Polymedix, is now a low priority compound for further development among the compounds in the Company's portfolio. The decision by management was made after factoring in today's regulatory and litigious climate. The Company will write off the related patent costs of Delparantag in the fourth quarter of its fiscal year end June 30, 2016. |
Significant Accounting Polici18
Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Mar. 31, 2016 | |
Significant Accounting Policies And Recent Accounting Pronouncements Policies | |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions include contract research accruals, recoverability of long-lived assets, measurement of stock-based compensation, and the periods of performance under collaborative research and development agreements. The Company bases its estimates on historical experience and various other assumptions that management believes to be reasonable under the circumstances. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates. |
Basic Earnings (Loss) per Share | Basic and diluted earnings (loss) per share are computed based on the weighted-average common shares and common share equivalents outstanding during the period. Common share equivalents consist of stock options, warrants and convertible notes payable. Common share equivalents of 44.0 million shares and 44.4 million shares were excluded from the computation of diluted earnings (loss) per share for the three months and nine months ended March 31, 2016 and 2015, respectively, because their effect is anti-dilutive. |
Accounting for Stock Based Compensation | The stock-based compensation expense incurred by Cellceutix for employees and directors in connection with its stock option plan is based on the employee model of ASC 718, and the fair market value of the options is measured at the grant date. Under ASC 718 employee is defined as "An individual over whom the grantor of a share-based compensation award exercises or has the right to exercise sufficient control to establish an employer-employee relationship based on common law as illustrated in case law and currently under U.S. tax regulations". Our consultants do not meet the employer-employee relationship as defined by the IRS and therefore are accounted for under ASC 505-50. ASC 505-50-30-11 (previously EITF 96-18) further provides that an issuer shall measure the fair value of the equity instruments in these transactions using the stock price and other measurement assumptions as of the earlier of the following dates, referred to as the measurement date: i. The date at which a commitment for performance by the counterparty to earn the equity instruments is reached (a performance commitment); and ii. The date at which the counterparty's performance is complete. We have elected to use the Black-Scholes-Merton pricing model to determine the fair value of stock options on the dates of grant. Restricted stock units are measured based on the fair market values of the underlying stock on the dates of grant. We recognize stock-based compensation using the straight-line method. The components of stock based compensation related to stock options in the Company's Statement of Operations for the three months and nine months ended March 31, 2016 and 2015 are as follows (rounded to nearest thousand): Three Months Ended Nine months Ended March 31, March 31, 2016 2015 2016 2015 General and administrative expenses Professional fees $ - $ - $ 432,000 $ - Employees' bonus - 1,000 - 13,000 Research and development expenses Professional fees $ 18,000 $ - $ 96,000 $ - Employees' bonus - 7,000 - 103,000 Officers' bonus - 15,000 20,000 214,000 Total share-based compensation expense $ 18,000 $ 23,000 $ 548,000 $ 330,000 |
Recent Accounting Pronouncements | Standards Issued Not Yet Adopted In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial StatementsGoing ConcernDisclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern" ("ASU 2014-15"). The ASU 2014-15 requires management to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. ASU 2014-15 is effective for annual periods, and interim periods within those annual periods, starting after December 15, 2016; the Company's first quarter of fiscal 2018. Management is currently evaluating the impact of this standard on our consolidated financial statements. In May 2014, the FASB issued authoritative guidance that defines how companies should report revenues from contracts with customers. The standard requires an entity to 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. It provides companies with a single comprehensive five-step principles based model to use in accounting for revenue and supersedes current revenue recognition requirements, including most industry-specific and transaction-specific revenue guidance. In August 2015, the FASB deferred the effective date of the new revenue standard by one year. As a result, the new standard would not be effective for the Company until 2019. In addition, the FASB is allowing companies to early adopt this guidance for non-public entities beginning in fiscal year 2017. The guidance permits an entity to apply the standard retrospectively to all prior periods presented, with certain practical expedients, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company will apply this new guidance when it becomes effective and has not yet selected a transition method. The Company is currently evaluating the impact of adoption on its financial statements. In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation. The amendments in this ASU apply to reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target can be achieved after the requisite service period. This ASU is the final version of Proposed ASU EITF-13D--Compensation--Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, which has been deleted. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. As indicated in the definition of vest, the stated vesting period (which includes the period in which the performance target could be achieved) may differ from the requisite service period. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, and early adoption is permitted. Management believes that the adoption of this guidance will not have a material impact on our consolidated financial statements. In June 2015, FASB issued ASU No. 2015-10, Technical Corrections and Updates. ASU No. 2015-10 is intended to correct differences between original guidance and the Codification, clarify the guidance, correct references and make minor improvements affecting a variety of topics. ASU No. 2015-10 covers a wide range of topics in the Codification and is generally categorized as follows: Amendments Related to Differences between Original Guidance and the Codification; Guidance Clarification and Reference Corrections; Simplification; and Minor Improvements. The amendments are effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. Management believes that the adoption of this guidance will not have a material impact on our consolidated financial statements. In February 2016, FASB issued ASU-2016-02, "Leases (Topic 842)." The guidance requires that a lessee recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right of use asset representing its right to use the underlying asset for the lease term. For finance leases: the right-of-use asset and a lease liability will be initially measured at the present value of the lease payments, in the statement of financial position; interest on the lease liability will be recognized separately from amortization of the right-of-use asset in the statement of comprehensive income; and repayments of the principal portion of the lease liability will be classified within financing activities and payments of interest on the lease liability and variable lease payments within operating activities in the statement of cash flows. For operating leases: the right-of-use asset and a lease liability will be initially measured at the present value of the lease payments, in the statement of financial position; a single lease cost will be recognized, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis; and all cash payments will be classified within operating activities in the statement of cash flows. Under Topic 842 the accounting applied by a lessor is largely unchanged from that applied under previous GAAP. The amendments in Topic 842 are effective for the Company beginning January 1, 2019, including interim periods within that fiscal year. Management believes that the adoption of this guidance will not have a material impact on our consolidated financial statements. |
Significant Accounting Polici19
Significant Accounting Policies and Recent Accounting Pronouncements (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Significant Accounting Policies And Recent Accounting Pronouncements Tables | |
Schedule of components of stock based compensation related to stock options recognized in the company's statement of operations | The components of stock based compensation related to stock options in the Company's Statement of Operations for the three months and nine months ended March 31, 2016 and 2015 are as follows (rounded to nearest thousand): Three Months Ended Nine months Ended March 31, March 31, 2016 2015 2016 2015 General and administrative expenses Professional fees $ - $ - $ 432,000 $ - Employees' bonus - 1,000 - 13,000 Research and development expenses Professional fees $ 18,000 $ - $ 96,000 $ - Employees' bonus - 7,000 - 103,000 Officers' bonus - 15,000 20,000 214,000 Total share-based compensation expense $ 18,000 $ 23,000 $ 548,000 $ 330,000 |
Patents, net (Tables)
Patents, net (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Patents Net Tables | |
Schedule of patents | Patents, net consisted of the following (rounded to nearest thousand): Useful life (years) March 31, 2016 June 30, 2015 Purchased Patent Rights Brilacidin, and related compounds 14 $ 4,082,000 $ 4,082,000 Purchased Patent Rights Delparantag and related compounds 12 480,000 480,000 Purchased Patent Rights Anti-microbial- surfactants and related compounds 12 144,000 144,000 Patents Kevetrin and related compounds 17 1,272,000 992,000 5,978,000 5,698,000 Less: Accumulated amortization (988,000 ) (680,000 ) $ 4,990,000 $ 5,018,000 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Accrued Expenses Tables | |
Schedule of accrued expenses | Accrued expenses consisted of the following (rounded to nearest thousand): March 31, 2016 June 30, 2015 Accrued research and development consulting fees $ 75,000 $ 478,000 Accrued rent (Note 8) related parties 34,000 42,000 Accrued interest related parties 151,000 73,000 Accrued professional fee 165,000 - Total $ 425,000 $ 593,000 |
Accrued Salaries and Payroll 22
Accrued Salaries and Payroll Taxes - Related Parties And Other (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Accrued Salaries And Payroll Taxes - Related Parties And Other Tables | |
Schedule of accrued salaries and payroll taxes | Accrued salaries and payroll taxes consisted of the following (rounded to nearest thousand): March 31, 2016 June 30, 2015 Accrued salaries related parties $ 2,647,000 $ 2,647,000 Accrued payroll taxes related parties 130,000 130,000 Withholding tax 84,000 65,000 Total $ 2,861,000 $ 2,842,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Commitments And Contingencies Tables | |
Future minimum lease payments required under the non-cancelable operating lease | As of March 31, 2016, future minimum lease payments to Cummings Properties required under the non-cancelable operating lease are as follows (rounded to nearest thousand): Year ending June 30, 2016 $ 53,000 2017 213,000 2018 213,000 2019 53,000 Total minimum payments $ 532,000 |
Stock Options and Warrants (Tab
Stock Options and Warrants (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Stock Warrants [Member] | |
Schedule of stock option activity | The following table summarizes stock warrants: Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at June 30, 2015 1,507,000 1.14 0.52 $ 2,156,310 Extended - - - Granted - - - Exercised - - - Expired (1,482,000 ) 1.13 - Outstanding at March 31, 2016 25,000 $ 1.79 0.81 $ - Exercisable at March 31, 2016 25,000 $ 1.79 0.81 $ - |
Stock Options [Member] | |
Valuation assumptions for stock options/warrants and SARs | The fair value of options granted for the nine months ended March 31, 2016 and 2015was estimated on the date of grant using the Black-Scholes-Merton model that uses assumptions noted in the following table. Nine months Ended March 31, 2016 2015 Expected term (in years) 3 3 Expected stock price volatility 56.52% to 65.76% 62.79% to 63.26% Risk-free interest rate 0.91% to 1.16% 0.76% to 1.19% Expected dividend yield 0 0 |
Schedule of stock option activity | The following table summarizes all stock option activity under the plans: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at June 30, 2015 38,762,500 $ 0.15 5.54 $ 94,217,650 Granted 1,169,424 1.67 Exercised (60,000 ) 0.42 Forfeited/expired (115,000 ) 0.61 Outstanding at March 31, 2016 39,756,924 $ 0.20 4.75 $ 54,726,138 Exercisable at March 31, 2016 39,677,308 $ 0.20 4.75 $ 54,689,913 |
Liquidity (Details Textual)
Liquidity (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Liquidity Details Textual | ||||||
Cash and cash equivalents | $ 5,335,000 | $ 10,804,000 | $ 5,335,000 | $ 10,804,000 | $ 8,410,000 | $ 4,988,000 |
Net loss | (3,709,000) | $ (2,895,000) | (9,608,000) | $ (10,044,000) | ||
Working capital (deficit) | (2,629,000) | (2,629,000) | $ 1,474,000 | |||
Common stock purchase available balance | $ 25,000,000 | $ 25,000,000 |
Significant Accounting Polici26
Significant Accounting Policies and Recent Accounting Pronouncements (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Research and development expenses | ||||
Professional fees | $ 247,000 | $ 114,000 | $ 1,135,000 | $ 359,000 |
Stock Options [Member] | ||||
General and administrative expenses | ||||
Professional fees | $ 432,000 | |||
Employees' bonus | $ 1,000 | $ 13,000 | ||
Research and development expenses | ||||
Professional fees | $ 18,000 | $ 96,000 | ||
Employees' bonus | $ 7,000 | $ 103,000 | ||
Officers' bonus | 15,000 | $ 20,000 | 214,000 | |
Total share-based compensation expense | $ 18,000 | $ 23,000 | $ 548,000 | $ 330,000 |
Patents, net (Details)
Patents, net (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2016 | Jun. 30, 2015 | |
Purchased Patent Rights | $ 5,978,000 | $ 5,698,000 |
Accumulated amortization | (988,000) | (680,000) |
Patent costs - net | $ 4,990,000 | 5,018,000 |
Patents [Member] | ||
Useful life | 14 years | |
Purchased Patent Rights | $ 4,082,000 | 4,082,000 |
Patents Two [Member] | ||
Useful life | 12 years | |
Purchased Patent Rights | $ 480,000 | 480,000 |
Patents Three [Member] | ||
Useful life | 12 years | |
Purchased Patent Rights | $ 144,000 | 144,000 |
Patents Four [Member] | ||
Useful life | 17 years | |
Purchased Patent Rights | $ 1,272,000 | $ 992,000 |
Patents, net (Details Textual)
Patents, net (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Amortization expense | $ 105,000 | $ 100,000 | $ 308,000 | $ 297,000 |
Minimum and Intangible Assets - Patent (Member) | ||||
Amortization period | 9 years 5 months 5 days | |||
Maxiimum and Intangible Assets - Patent (Member) | ||||
Amortization period | 15 years 5 months 5 days |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Accrued Expenses Details | ||
Accrued research and development consulting fees | $ 75,000 | $ 478,000 |
Accrued rent (Note 8) - related parties | 34,000 | 42,000 |
Accrued interest - related parties | 151,000 | $ 73,000 |
Accrued professional fee | 165,000 | |
Total | $ 425,000 | $ 593,000 |
Accrued Salaries and Payroll 30
Accrued Salaries and Payroll Taxes - Related Parties And Other (Details) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Accrued Salaries And Payroll Taxes - Related Parties And Other Details | ||
Accrued salaries - related parties | $ 2,647,000 | $ 2,647,000 |
Accrued payroll taxes - related parties | 130,000 | 130,000 |
Withholding tax | 84,000 | 65,000 |
Total | $ 2,861,000 | $ 2,842,000 |
Commitments and Contingencies31
Commitments and Contingencies (Details) | Mar. 31, 2016USD ($) |
Year ending June 30, | |
2,016 | $ 53,000 |
2,017 | 213,000 |
2,018 | 213,000 |
2,019 | 53,000 |
Total minimum payments | $ 532,000 |
Commitments and Contingencies32
Commitments and Contingencies (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Commitments And Contingencies Details Textual | ||||
Operating leases, rental expense | $ 51,000 | $ 51,000 | $ 152,000 | $ 157,000 |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Kard Scientific [Member] | |||||
Rent expense | $ 3,000 | $ 9,000 | $ 3,000 | $ 9,000 | |
Rent payables included in accrued expenses | 34,000 | 34,000 | $ 42,000 | ||
Repaid amount | 200,000 | ||||
Accrued directors' fee | 19,000 | 19,000 | 0 | ||
Clinical Studies [Member] | |||||
Accrued research and development expenses | $ 1,486,000 | $ 1,486,000 | $ 1,686,000 |
Note Payable - Related Party (D
Note Payable - Related Party (Details Textual) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Note Payable - Related Party Details Textual | ||
Interest accrued | $ 151,000 | $ 73,000 |
Principal balances of the demand note | $ 2,022,000 | $ 2,022,000 |
Stock Options and Warrants (Det
Stock Options and Warrants (Details) - Stock Options [Member] | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Expected term (in years) | 3 years | 3 years |
Expected dividend yield | 0.00% | 0.00% |
Minimum [Member] | ||
Expected stock price volatility | 56.52% | 62.79% |
Risk-free interest rate | 0.91% | 0.76% |
Maximum [Member] | ||
Expected stock price volatility | 65.76% | 63.26% |
Risk-free interest rate | 1.16% | 1.19% |
Stock Options and Warrants (D36
Stock Options and Warrants (Details 1) - Stock Options [Member] | 9 Months Ended |
Mar. 31, 2016USD ($)$ / sharesshares | |
Number of Outstanding, Beginning Balance | shares | 38,762,500 |
Granted | shares | 1,169,424 |
Exercised | shares | (60,000) |
Forfeited/expired | shares | (115,000) |
Number of Outstanding, Ending Balance | shares | 39,756,924 |
Number of Outstanding, Exercisable | shares | 39,677,308 |
Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 0.15 |
Granted | $ / shares | 1.67 |
Exercised | $ / shares | 0.42 |
Forfeited/expired | $ / shares | 0.61 |
Weighted Average Exercise Price, Ending Balance | $ / shares | 0.20 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 0.20 |
Weighted average remaining contractual life (Years) Outstanding, Beginning Balance | 5 years 6 months 15 days |
Weighted average remaining contractual life (Years) Outstanding, Ending Balance | 4 years 9 months |
Weighted average remaining contractual life (Years), Exercisable | 4 years 9 months |
Aggregate intrinsic value, Beginning Balance | $ | $ 94,217,650 |
Aggregate intrinsic value, Ending Balance | $ | 54,726,138 |
Aggregate intrinsic value, Exercisable | $ | $ 54,689,913 |
Stock Options and Warrants (D37
Stock Options and Warrants (Details 2) - Stock Warrants [Member] | 9 Months Ended |
Mar. 31, 2016USD ($)$ / sharesshares | |
Number of Outstanding, Beginning Balance | shares | 1,507,000 |
Extended | shares | |
Granted | shares | |
Exercised | shares | |
Expired | shares | (1,482,000) |
Number of Outstanding, Ending Balance | shares | 25,000 |
Number of Outstanding, Exercisable | shares | 25,000 |
Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 1.14 |
Extended | $ / shares | |
Granted | $ / shares | |
Exercised | $ / shares | |
Expired | $ / shares | $ 1.13 |
Weighted Average Exercise Price, Ending Balance | $ / shares | 1.79 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 1.79 |
Weighted average remaining contractual life (Years) Outstanding, Beginning Balance | 6 months 7 days |
Weighted average remaining contractual life (Years) Outstanding, Ending Balance | 9 months 22 days |
Weighted average remaining contractual life (Years), Exercisable | 9 months 22 days |
Aggregate intrinsic value, Beginning Balance | $ | $ 2,156,310 |
Aggregate intrinsic value, Ending Balance | $ | |
Aggregate intrinsic value, Exercisable | $ |
Stock Options and Warrants (D38
Stock Options and Warrants (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Stock Options [Member] | ||||
Stock based compensation | $ 18,000 | $ 23,000 | $ 548,000 | $ 330,000 |
Equity Transactions (Details Te
Equity Transactions (Details Textual) - USD ($) | 9 Months Ended | |
Mar. 31, 2016 | Jun. 30, 2015 | |
Number of common stock shares sold | 3,700,000 | |
Value of common stock shares sold | $ 5,300,000 | |
Deferred offering costs | $ 412,000 | $ 494,000 |
Common Stock Options Exercised [Member] | ||
Exercised | 60,000 | |
Value of stock option exercise | $ 25,400 | |
Common Stock Options Exercised [Member] | Minimum [Member] | ||
Exercise price | $ 0.17 | |
Common Stock Options Exercised [Member] | Maximum [Member] | ||
Exercise price | $ 0.64 |