Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Sep. 30, 2014 | Nov. 14, 2014 | |
Document Information [Line Items] | ||
Entity Registrant Name | NANOVIRICIDES, INC. | |
Entity Central Index Key | 1379006 | |
Current Fiscal Year End Date | -24 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q/A | |
Amendment Flag | TRUE | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 | |
Amendment Description | NanoViricides, Inc. is filing this Amendment to its Quarterly Report on Form 10-Q for the period ending September 30, 2014, originally filed on November 14, 2014 (the “Original Filing”), to amend and restate our previously issued financial statements and the related disclosures in the Original Filing. This Form 10-Q/A supersedes and replaces in its entirety the Original Filing. During the preparation of the Company’s Quarterly Report on Form 10-Q for the period ending December 31, 2014, the Company and the Audit Committee of the Company’s Board of Directors (the “Audit Committee”) identified an accounting error in the financial statements as of June 30, 2014. The restatement is the result of our reclassification attributable to the accounting for derivative functions contained in the anti-dilution provisions in certain warrants issued in connection with the company’s issuances of registered direct offerings. Specifically, the warrants contained certain anti-dilution ratchet provisions that provided for an adjustment to the exercise price of the warrants if the company issued any stock equivalent securities at a lower price in the future while the option was still outstanding. The Company determined that the error caused a material understatement of its derivative liability for the quarterly period ended June 30, 2014. In addition, we also have provided disclosure regarding the impact of the restatement on the adequacy of our internal control over financial reporting and disclosure controls and procedures for the relevant restatement periods in Part I, Item 4. Controls and Procedures. For a more detailed explanation of these matters and resulting restatements, please see Note 2 to the Financial Statements - Restatement of Previously Issued Financial Statements. Unless expressly noted otherwise, the disclosures in this Annual Report continue to speak as of the date of the Original Filing, and do not reflect events occurring after the filing of the Original Filing. | |
Document Period End Date | 30-Sep-14 | |
Entity Common Stock, Shares Outstanding | 57,106,568 |
Balance_Sheets
Balance Sheets (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $41,120,652 | $36,696,892 |
Prepaid expenses | 59,099 | 108,089 |
Prepaid expenses - related parties | 424,402 | 709,221 |
Other current assets | 0 | 150,000 |
Total Current Assets | 41,604,153 | 37,664,202 |
PROPERTY AND EQUIPMENT | ||
Property and equipment | 7,299,254 | 6,736,742 |
Accumulated depreciation | -1,291,318 | -1,239,986 |
Property and equipment, net | 6,007,936 | 5,496,756 |
TRADEMARK | ||
Trademark | 458,954 | 458,954 |
Accumulated amortization | -52,889 | -50,696 |
Trademark, net | 406,065 | 408,258 |
SECURITY DEPOSIT | 1,000,000 | 1,000,000 |
Total Assets | 49,018,154 | 44,569,216 |
CURRENT LIABILITIES: | ||
Accounts payable | 155,978 | 376,446 |
Accounts payable - related parties | 331,448 | 758,676 |
Accrued expenses | 265,463 | 91,838 |
Total Current Liabilities | 752,889 | 1,226,960 |
LONG TERM LIABILITIES: | ||
Debentures payable | 0 | 5,000,000 |
Total Long Term Liabilities | 16,076,149 | 19,972,953 |
Total Liabilities | 16,829,038 | 21,199,913 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, $0.001 par value; 85,714,285 shares authorized;56,535,135 and 54,620,993 shares issued and outstanding, respectively | 56,535 | 54,621 |
Additional paid-in capital | 83,178,895 | 75,212,888 |
Accumulated deficit | -51,049,703 | -51,901,400 |
Total Stockholders’ Equity | 32,189,116 | 23,369,303 |
Total Liabilities and Stockholders’ Equity | 49,018,154 | 44,569,216 |
Warrant [Member] | ||
LONG TERM LIABILITIES: | ||
Derivative Liability | 4,558,581 | 5,235,682 |
Series B Debentures [Member] | ||
LONG TERM LIABILITIES: | ||
Debentures payable | 4,195,296 | 4,037,568 |
Derivative Liability | 3,785,385 | 5,699,703 |
Series C Debentures [Member] | ||
LONG TERM LIABILITIES: | ||
Debentures payable | 2,083,765 | 0 |
Derivative Liability | 1,453,122 | 0 |
Series A Convertible Preferred Stock [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock | 3,389 | 3,194 |
Series B Convertible Preferred Stock [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock | 0 | 0 |
Series C Convertible Preferred Stock [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock | $0 | $0 |
Balance_Sheets_Parenthetical
Balance Sheets [Parenthetical] (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 85,714,285 | 85,714,285 |
Common stock, shares issued | 56,535,135 | 54,620,993 |
Common stock, shares, outstanding | 56,535,135 | 54,620,993 |
Series A Convertible Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 4,000,000 | 4,000,000 |
Preferred stock, shares issued | 3,387,795 | 3,193,079 |
Preferred stock, shares outstanding | 3,387,795 | 3,193,079 |
Series B Convertible Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Series C Convertible Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Statements_of_Operations
Statements of Operations (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
OPERATING EXPENSES | ||
Research and development | $811,107 | $1,174,221 |
Refund credit research and development costs | 0 | 0 |
General and administrative | 876,026 | 714,561 |
Total operating expenses | 1,687,133 | 1,888,782 |
LOSS FROM OPERATIONS | -1,687,133 | -1,888,782 |
OTHER INCOME (EXPENSE): | ||
Interest income, net | 39,323 | 9,560 |
Interest expense | -245,000 | -120,986 |
Discount on convertible debentures | -273,218 | -135,481 |
Beneficial conversion feature of convertible debentures | 0 | 0 |
Change in fair market value of derivatives | 3,017,725 | -4,425,833 |
Other income (expense), net | 2,538,830 | -4,672,740 |
LOSS BEFORE INCOME TAXES | 851,697 | -6,561,522 |
INCOME TAX PROVISION | 0 | 0 |
NET INCOME (LOSS) | $851,697 | ($6,561,522) |
NET INCOME (LOSS) PER COMMON SHARE - BASIC AND DILUTED: (in dollars per share) | $0.02 | ($0.14) |
Weighted average common shares outstanding - basic and diluted (in shares) | 55,576,200 | 47,672,029 |
Statement_of_Stockholders_Equi
Statement of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Stock Subscription Received [Member] | Retained Earnings [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series C Preferred Stock [Member] |
Balance at Jun. 30, 2013 | $8,009,652 | $47,026 | $46,259,420 | $0 | ($38,299,784) | $2,990 | $0 | $0 |
Balance (in shares) at Jun. 30, 2013 | 47,026,173 | 2,990,000 | 0 | 0 | ||||
Warrants issued to Scientific Advisory Board, For August | 106,050 | 0 | 106,050 | |||||
Common shares issued for consulting and legal services, August | 7,000 | 4 | 6,996 | |||||
Common shares issued for consulting and legal services valued August (in shares) | 3,449 | |||||||
Common shares issued for consulting and legal services valued For September | 7,000 | 3 | 6,997 | |||||
Common shares issued for consulting and legal services valued For September (in shares) | 3,226 | |||||||
Adjustment to Additional paid in Capital | 83,900 | 83,900 | ||||||
Warrants issued to Scientific Advisory Board, For November | 31,552 | 0 | 31,552 | |||||
Common shares issued for consulting and legal services For November | 7,000 | 1 | 6,999 | |||||
Common shares issued for consulting and legal services For November (in shares) | 1,362 | |||||||
Common shares issued for consulting and legal services For December | 7,001 | 2 | 6,999 | |||||
Common shares issued for consulting and legal services For December (in shares) | 1,383 | |||||||
Common shares issued for consulting and legal services For January | 7,000 | 1 | 6,999 | |||||
Common shares issued for consulting and legal services For January (in shares) | 1,828 | |||||||
Warrants issued to Scientific Advisory Board, February | 30,352 | 0 | 30,352 | |||||
Common shares issued for consulting and legal services February | 7,000 | 2 | 6,998 | |||||
Common shares issued for consulting and legal services February (in shares) | 1,763 | |||||||
Common shares issued for consulting and legal services, For March | 7,000 | 2 | 6,998 | |||||
Common shares issued for consulting and legal services, March (in shares) | 1,397 | |||||||
Warrants issued to Scientific Advisory Board, May | 31,895 | 0 | 31,895 | |||||
Common shares issued for consulting and legal services July | 7,000 | 4 | 6,996 | |||||
Common shares issued for consulting and legal services July (in shares) | 3,627 | |||||||
Shares issued in payment of Debenture interest on February | 2,605,716 | 571 | 2,605,145 | |||||
Shares issued in payment of Debenture interest on February (in shares) | 571,429 | |||||||
Common shares and warrants issued in connection with private placement of common stock, September 10, 2013 | 10,308,996 | 2,945 | 10,306,051 | |||||
Common shares and warrants issued in connection with private placement of common stock, September 10, 2013 (in shares) | 2,945,428 | |||||||
Costs associated with sale of Securities | -113,696 | -113,696 | ||||||
Warrants issued for commissions | 113,696 | 0 | 113,696 | |||||
Placement Agents Fees related to sale of Common shares and Warrants | -618,545 | 0 | -618,545 | |||||
Common Shares issued to round up fractional shares arising from private placement | 6 | -6 | ||||||
Common Shares issued to round up fractional shares arising from private placement (in shares) | 5,940 | |||||||
Common Shares issued in connection with warrant conversion, September 25, 2013 | 185,624 | 35 | 185,589 | |||||
Common Shares issued in connection with warrant conversion, September 25, 2013 (in shares) | 35,357 | |||||||
Shares issued for Directors fees at $2.04 per share on September 30, 2013 | 11,250 | 6 | 11,244 | |||||
Shares issued for Directors fees at $2.04 per share on September 30, 2013 (in shares) | 5,501 | |||||||
Common Shares issued in connection with warrant conversion, February 6, 2014 | 131,250 | 25 | 131,225 | |||||
Common Shares issued in connection with warrant conversion, February 6, 2014 (in shares) | 25,000 | |||||||
Series A Preferred Shares issued for employee stock compensation at October 1, 2013 | 36,000 | 0 | 35,995 | 5 | ||||
Series A Preferred Shares issued for employee stock compensation at October 1, 2013 (in shares) | 5,025 | |||||||
Warrants issued for commissions, January 24, 2014 | 135,062 | 0 | 135,062 | |||||
Placement Agents Fees related to sale of Common shares and Warrants on January 24, 2014 | -1,201,815 | 0 | -1,201,815 | |||||
Shares issued for Directors fees at $5.01 per share on March 31, 2014 | 11,250 | 2 | 11,248 | |||||
Shares issued for Directors fees at $5.01 per share on March 31, 2014 (in shares) | 2,247 | |||||||
Series A Preferred Shares issued for employee stock compensation at April 30, 2014 | 20,896 | 0 | 20,894 | 2 | ||||
Series A Preferred Shares issued for employee stock compensation at April 30, 2014 (in shares) | 0 | 2,572 | ||||||
Costs associated with sale of Securities January 24, 2014 | -135,062 | -135,062 | ||||||
Shares issued for consulting and legal services rendered at $5.29 per share on October 31, 2013 | 7,000 | 1 | 6,999 | |||||
Shares issued for consulting and legal services rendered at $5.29 per share on October 31, 2013 (in shares) | 1,323 | |||||||
Common Shares issued in connection with warrant conversion, December 16, 2013 | 25,000 | 7 | 24,993 | |||||
Common Shares issued in connection with warrant conversion, December 16, 2013 (in shares) | 7,143 | |||||||
Shares issued for Directors fees at $5.07 per share on December 31, 2013 | 11,250 | 2 | 11,248 | |||||
Shares issued for Directors fees at $5.07 per share on December 31, 2013 (in shares) | 2,220 | |||||||
Series A Preferred Shares issued for employee stock compensation | 192,041 | 0 | 192,020 | 21 | ||||
Series A Preferred Shares issued for employee stock compensation (in shares) | 0 | 20,695 | ||||||
Series A Preferred Shares issued for employee stock compensation at May 31, 2014 | 20,379 | 0 | 20,376 | 3 | ||||
Series A Preferred Shares issued for employee stock compensation at May 31, 2014 (in shares) | 0 | 2,572 | ||||||
Shares issued for consulting and legal services rendered at $4.11 per share at June 30, 2014 | 9,000 | 2 | 8,998 | |||||
Shares issued for consulting and legal services rendered at $4.11 per share at June 30, 2014 (n shares) | 2,190 | |||||||
Net loss | -14,106,474 | 0 | -14,106,474 | |||||
Common Shares issued in connection with warrant conversion, January 21, 2014 | 393,750 | 75 | 393,675 | |||||
Common Shares issued in connection with warrant conversion, January 21, 2014 (in shares) | 75,000 | |||||||
Common Stock And Warrants Issued Value During January In Connection With Private Placement | 20,030,207 | 3,815 | 20,026,392 | |||||
Common Stock And Warrants Issued Shares During January In Connection With Private Placement | 3,815,285 | |||||||
Common shares issued for employee stock compensation, June | 12,000 | 3 | 11,997 | |||||
Common shares issued for employee stock compensation, June (in shares) | 2,593 | |||||||
Series A Preferred Shares issued for employee stock compensation at June 30, 2014 | 22,902 | 0 | 22,899 | 3 | ||||
Series A Preferred Shares issued for employee stock compensation at June 30, 2014 (in shares) | 0 | 2,572 | ||||||
Series A Preferred Shares issued for employee stock compensation at June 30, 2014 | 1,830,796 | 1,830,626 | 170 | |||||
Series A Preferred Shares issued for employee stock compensation at June 30, 2014 (in shares) | 0 | 169,643 | ||||||
Shares issued for Directors fees at $4.11 per share on June 30, 2014 | 11,250 | 3 | 11,247 | |||||
Shares issued for Directors fees at $4.11 per share on June 30, 2014 (in shares) | 3,178 | |||||||
Restatement Adjustment | -5,740,540 | -5,740,540 | ||||||
Common shares issued for employee stock compensation at $4.03 per share, June 30, 2014 | 287,860 | 72 | 287,788 | |||||
Common shares issued for employee stock compensation at $4.03 per share, June 30, 2014 (in shares) | 71,430 | |||||||
Restatement Adjustment | 504,858 | 504,858 | ||||||
Shares issued for consulting and legal services rendered at 3.25 per share on April 30, 2014 | 9,000 | 3 | 8,997 | |||||
Shares issued for consulting and legal services rendered at $3.25 per share on April 30, 2014 (in shares) | 2,769 | |||||||
Shares issued for consulting and legal services rendered at 3.27 per share on May 31, 2014 | 9,000 | 3 | 8,997 | |||||
Shares issued for consulting and legal services rendered at 3.27 per share on May 31, 2014 (in shares) | 2,752 | |||||||
Balance at Jun. 30, 2014 | 23,369,303 | 54,621 | 75,212,888 | 0 | -51,901,400 | 3,194 | 0 | 0 |
Balance (in shares) at Jun. 30, 2014 | 54,620,993 | 3,193,079 | 0 | 0 | ||||
Warrants issued to Scientific Advisory Board, For August | 22,292 | 0 | 22,292 | |||||
Net loss | 851,697 | 0 | -239,070 | |||||
Series A Preferred Shares issued for employee stock compensation July 31, 2014 | 23,634 | 0 | 23,632 | 2 | ||||
Series A Preferred Shares issued for employee stock compensation July 31, 2014 (in shares) | 0 | 2,572 | ||||||
Shares issued for consulting and legal services rendered on July 31, 2014 | 9,000 | 9,000 | ||||||
Shares issued for consulting and legal services rendered on July 31, 2014 (in shares) | 543 | |||||||
Shares issued for consulting and legal services rendered on August 31, 2014 | 9,000 | 1 | 8,999 | |||||
Shares issued for consulting and legal services rendered on August 31, 2014 (in shares) | 590 | |||||||
Series A Preferred Shares issued for employee stock compensation at August 31, 2014 | 25,332 | 0 | 25,329 | 3 | ||||
Series A Preferred Shares issued for employee stock compensation at August 31, 2014 (in shares) | 0 | 2,572 | ||||||
Common Shares issued in connection with warrant conversion, August 15,2014 | 6,682,297 | 1,909 | 6,680,388 | |||||
Common Shares issued in connection with warrant conversion, August 15,2014 (in shares) | 1,909,227 | |||||||
Shares issued for consulting and legal services rendered on September 30, 2014 | 9,000 | 1 | 8,999 | |||||
Shares issued for consulting and legal services rendered on September 30, 2014 (in shares) | 926 | |||||||
Series A Preferred Shares issued for employee stock compensation at September 30, 2014 | 24,014 | 0 | 24,011 | 3 | ||||
Series A Preferred Shares issued for employee stock compensation at September 30, 2014 (in shares) | 0 | 2,572 | ||||||
Shares issued for Directors fees at $3.94 per share on September 30, 2014 | 11,250 | 3 | 11,247 | |||||
Shares issued for Directors fees at $3.94 per share on September 30, 2014 (in shares) | 2,856 | |||||||
Series A Preferred Shares issued for Debenture inerest July 2, 2014 | 1,152,297 | 0 | 1,152,110 | 187 | ||||
Series A Preferred Shares issued for Debenture inerest July 2, 2014 (in shares) | 0 | 187,000 | ||||||
Restatement Adjustment | 1,090,767 | 1,090,767 | ||||||
Balance at Sep. 30, 2014 | $32,189,116 | $56,535 | $83,178,895 | $0 | ($51,049,703) | $3,389 | $0 | $0 |
Balance (in shares) at Sep. 30, 2014 | 56,535,135 | 3,387,795 | 0 | 0 |
Statement_of_Stockholders_Equi1
Statement of Stockholders' Equity [Parenthetical] (USD $) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Jun. 30, 2014 | |
Price per share of common stock issued for consulting services, July One | $1.93 | |
Price per share of common stock issued for consulting services, August One | $2.03 | |
Price per share of common stock issued for consulting services, September One | $2.17 | |
Price per share of common stock issued for consulting services, February One | $3.97 | |
Price per share of common stock issued for consulting and legal services, October | $5.29 | |
Price per share of common stock issued for consulting and legal services, November | $5.14 | |
Price per share of common stock issued for consulting and legal services, December | $5.01 | |
Price per share of common stock issued for consulting and legal services, January | $5.01 | |
Price per share of common stock issued for payment of debenture interest stock, February | $0.48 | |
Price per share of common stock issued for employee stock compensation, March One | $4.03 | |
Price per share of common stock issued for consulting and legal services, March | $3.83 | |
Price per share of common stock issued for director services rendered, March | $5.01 | |
Stock Issued During September For Director Services Rendered Price Per Share | $3.25 | $2.04 |
Stock Issued During December For Director Services Rendered Price Per Share | $4.11 | $5.07 |
Stock Issued During Period For Employee Stock Compensation Price Per Share For June One | $4.03 | |
Stock Issued During Period For Director Fees Price Per Share June | $4.11 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net Income (loss) | $851,697 | ($6,561,522) | ($14,106,474) |
Adjustments to reconcile net income (loss) to net cash used in operating activities | |||
Preferred shares issued for license | 0 | ||
Series A Preferred shares issued as compensation | 72,980 | 0 | |
Common shares and warrants issued for services | 38,250 | 32,250 | |
Warrants granted to scientific advisory board | 22,292 | 106,050 | |
Depreciation | 51,332 | 52,719 | |
Amortization | 2,193 | 2,193 | |
Change in fair value of derivative liability | -3,017,725 | 4,425,833 | |
Discount convertible debentures | 273,218 | 135,481 | |
Changes in operating assets and liabilities: | |||
Prepaid expenses | 48,990 | -206,765 | |
Prepaid expenses - Related parties | 284,819 | ||
Other current assets | 150,000 | 0 | |
Accounts payable - trade | -220,468 | 144,802 | |
Accounts payable - related parties | -427,228 | 429,258 | |
Accrued expenses | 173,625 | 115,253 | |
NET CASH USED IN OPERATING ACTIVITIES | -1,696,025 | -1,324,448 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Security deposit | 0 | -1,000,000 | |
Purchase of property and equipment | -562,512 | -2,273,989 | |
NET CASH USED IN INVESTING ACTIVITIES | -562,512 | -3,273,989 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of common stock and warrants in connection with private placements of common stock, net of issuance costs | 9,690,450 | ||
Proceeds from exercise of warrants | 6,682,297 | 185,624 | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 6,682,297 | 9,876,074 | |
NET CHANGE IN CASH | 4,423,760 | 5,277,637 | |
Cash at beginning of period | 36,696,892 | 13,923,245 | 13,923,245 |
Cash at end of period | 41,120,652 | 19,200,882 | 36,696,892 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | |||
Interest paid | 0 | 0 | |
Income tax paid | 0 | 0 | |
NON CASH FINANCING AND INVESTING ACTIVITIES: | |||
Common stock issued for services rendered | 38,250 | 32,250 | |
Preferred stock issued as compensation | 72,980 | 0 | |
Series A Preferred stock issued as discount on Debentures | 1,645,606 | ||
Stock warrants granted to scientific advisory board | 22,292 | 106,050 | |
Stock warrants granted to brokers | $113,696 |
Organization_and_Nature_of_Bus
Organization and Nature of Business | 3 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
Nature of Operations [Text Block] | Note 1 - Organization and Nature of Business |
NanoViricides, Inc. was incorporated under the laws of the State of Colorado on July 25, 2000 as Edot-com.com, Inc. which was organized for the purpose of conducting internet retail sales. On April 1, 2005, Edot-com.com, Inc. was incorporated under the laws of the State of Nevada for the purpose of re-domiciling as a Nevada corporation. On May 12, 2005, the corporations were merged and Edot-com.com, Inc., the Nevada corporation, became the surviving entity. | |
On June 1, 2005, Edot-com.com, Inc. (“ECMM”) acquired Nanoviricide, Inc., a privately owned Florida corporation (“NVI”), pursuant to an Agreement and Plan of Share Exchange (the “Exchange”). Nanoviricide, Inc. was incorporated under the laws of the State of Florida on May 12, 2005. | |
Pursuant to the terms of the Exchange, ECMM acquired NVI in exchange for an aggregate of 80,000,000 newly issued shares of ECMM common stock resulting in an aggregate of 100,000,000 shares of ECMM common stock issued and outstanding. NVI then became a wholly-owned subsidiary of ECMM. The ECMM shares were issued to the NVI shareholders on a pro rata basis, on the basis of 4,000 shares of the Company’s common stock for each share of NVI common stock held by such NVI shareholder at the time of the Exchange. | |
As a result of the Exchange transaction, the former NVI stockholders held approximately 80% of the voting capital stock of the Company immediately after the Exchange. For financial accounting purposes, this acquisition was a reverse acquisition of the Company by NVI, under the purchase method of accounting, and was treated as a recapitalization with NVI as the acquirer. Accordingly, the financial statements have been prepared to give retroactive effect to May 12, 2005 (date of inception), of the reverse acquisition completed on June 1, 2005, and represent the operations of NVI. | |
On June 28, 2005, NVI was merged into its parent ECMM and the separate corporate existence of NVI ceased. Effective on the same date, Edot-com.com, Inc. changed its name to NanoViricides, Inc. and its stock symbol to “NNVC”, respectively. | |
NanoViricides, Inc. (the “Company”), is a nano-biopharmaceutical company whose business goals are to discover, develop and commercialize therapeutics to advance the care of patients suffering from life-threatening viral infections. We are a company with several drugs in various stages of early development. Our drugs are based on several patents, patent applications, provisional patent applications, and other proprietary intellectual property held by TheraCour Pharma, Inc. (“TheraCour”), to which we have the necessary exclusive licenses in perpetuity. The first agreement we executed with TheraCour Pharma on September 1, 2005, gave us an exclusive, worldwide license for the treatment of the following human viral diseases: Human Immunodeficiency Virus (HIV/AIDS), Hepatitis B Virus (HBV), Hepatitis C Virus (HCV), Herpes Simplex Virus (HSV), Influenza and Asian Bird Flu Virus. | |
On February 15, 2010 the Company executed an Additional License Agreement with TheraCour Pharma, Inc. (“TheraCour”). Pursuant to the Additional License Agreement, the Company was granted exclusive licenses, in perpetuity, for technologies, developed by TheraCour, for the development of drug candidates for the treatment of Dengue viruses, Ebola/Marburg viruses, Japanese Encephalitis, viruses causing viral Conjunctivitis (a disease of the eye) and Ocular Herpes. As consideration for obtaining these exclusive licenses, we agreed to pay a onetime licensing fee equal to 2,000,000 shares (adjusted for the 3.5 to 1 reverse split) of the Company’s Series A Convertible Preferred Stock (the “Series A Preferred Stock”). The Series A Preferred Stock is convertible, only upon sale or merger of the company, or the sale of or license of substantially all of the Company’s intellectual property, into shares of the Company’s common stock at the rate of 3.5 shares of common stock for each share of Series A Preferred Stock. The Series A Preferred Stock has a preferred voting preference at the rate of nine votes per share. The Preferred Series A do not contain any rights to dividends, have no liquidation preference, and are not to be amended without the holder’s approval. The 2,000,000 shares were valued at the par value of $2,000 (adjusted for the reverse split). | |
We focus our research and clinical programs on specific anti-viral therapeutics. The Company’s platform technology is based on novel biomimetic nanomedicine constructs, called nanoviricides®. A nanoviricide is designed to “fool” the virus into binding to the nanoviricide in the same fashion that it would bind to the host cell. Because the host cell receptor and how the virus binds to it does not change despite all the changes in the virus, the Company believes that our broad-spectrum nanoviricides should continue to work against the virus despite the viral mutations and other changes. We are seeking to add to our existing portfolio of products through our internal discovery and clinical development programs and through an in-licensing strategy. | |
The Company has held a pre-IND Meeting with the US FDA for its clinical drug candidate NV-INF-1 in the FluCide™ program. The Company is developing this injectable drug (NV-INF-1) for hospitalized patients with severe influenza, including immuno-compromised patients. The Company believes that this drug may also be usable as a single-dose injection in a medical office for less severe cases of influenza. The Company has also developed an oral anti-influenza drug candidate, NV-INF-2, with a very high degree of effectiveness when taken by mouth. This may be the first ever nanomedicine that is orally active. Both of these anti-influenza therapeutic candidates are “broad-spectrum”, i.e. they are expected to be effective against most if not all types of influenzas including Bird Flu H5N1, Highly Pathogenic Influenzas (HPI/HPAI), Epidemic Influenzas such as the 2009 “swine flu” H1N1/A/2009, and Seasonal Influenzas including the recent H3N2 influenza. The Company has already demonstrated that they have significantly superior activity when compared to oseltamivir (Tamiflu®) against two unrelated influenza A subtypes, namely, H1N1 and H3N2 in a highly lethal animal model. Both of these drug candidates can be used as prophylactics to protect at-risk personnel such as health-care workers and immediate family members and caretakers of a patient. | |
The Company’s broad-spectrum drug candidate for the treatment of dengue viral infections, DengueCide™, has received “orphan drug” status from both the US FDA and the European Medicines Agency (“EMA”). This orphan drug status carries with it several tax benefits and other financial equivalent incentives. Notably, in the US, orphan drug status will enable us to gain a “Priority Review Voucher” that can be applied to another drug development program or can be sold for a consideration to another pharmaceutical company, once the drug is approved. The Company has therefore prioritized its Dengue drug development program. | |
The Company is also developing an anti-HIV drug. The drug candidates in this HIVCide(™) program were found to have effectiveness equal to that of a triple drug HAART cocktail therapy in the standard humanized SCID-hu Thy/Liv mouse model. Moreover, the nanoviricides were long acting. Viral load suppression continued to hold for more than four weeks after stopping HIVCide treatment. The Company believes that the strong effect and sustained effect indicate that an HIVCide can be developed as a single agent that would provide “Functional Cure” from HIV/AIDS. The Company believes that substantially all HIV virus can be cleared upon HIVCide treatment, except the integrated viral genome in latent cells. This would enable discontinuation of treatment until HIV reemerges from the latent reservoir, which may be several months without any drugs. Moreover, the Company believes that this therapy would also minimize the chances of HIV transmission. The Company is currently optimizing the anti-HIV drug candidates. These drug candidates are effective against both the R5 and X4 subtypes of HIV-1 in cell cultures. The Company believes that these drug candidates are “broad-spectrum”, i.e. they are expected to be effective against most strains and mutants of HIV, and therefore escape of mutants from our drugs is expected to be minimal. | |
The Company is also developing a broad-spectrum skin cream for the treatment of oral and genital herpesvirus infections (i.e. both HSV-1 and HSV-2). | |
In addition, the Company is also developing broad-spectrum eye drops that are expected to be effective against a majority of the viral infections of the external eye. Most of these viral infections are from adenoviruses or from herpesviruses. The Company has shown excellent efficacy of its drug candidates against EKC (adenoviral epidemic kerato-conjunctivitis) in an animal model. In addition, the anti-HSV drug candidates have shown excellent efficacy in cell culture studies. The Company is also developing a skin cream formulation for the treatment of herpes cold sores or genital warts. Further, the Company is also developing a broad-spectrum drug against Dengue viruses that is expected to be useful for the treatment of any of the four major serotypes of dengue viruses, including in severe cases of dengue (DSS) and dengue hemorrhagic fever (DHF). DSS and DHF are thought to be caused by prior antibodies against dengue that a patient’s body creates to fight a second unrelated dengue infection, and the second virus uses these antibodies effectively to hitch a ride into human cells, thereby causing a more severe infection than in naive patients. In addition to these six drugs in development, the Company also has research programs against Rabies virus, Ebola and Marburg viruses, and others. To date, the Company does not have any commercialized products. | |
Thus, at present, the Company has six commercially important drug programs in its pipeline that have shown significant successes in cell culture as well as animal models. In addition, in August 2014, the Company announced that it has restarted our anti-Ebola drug development program, in response to the current Ebola epidemic. The Company’s platform technology enables rapid development of drug candidates against novel infections. The Company believes that it will continue to expand its pipeline as available funds and opportunities permit. | |
The Company is also working on scaling up production processes, and enabling c-GMP-compliant manufacture of its drug candidates in order to provide clinical supplies for the future human clinical trials of our drug candidates. Construction of the modern, multi-product, state-of-the-art nanomedicines manufacturing facility built for this purpose was completed in July, 2014. Cleaning and Validation, as well as custom equipment fit-outs are in progress at present. The facility was built by Inno-Haven, LLC, a special-purpose company established for this purpose. Inno-Haven is controlled and managed by Dr. Anil Diwan, the Company’s co-founder, President, and Chairman. Inno-haven purchased the building in 1 Controls Drive, Shelton, CT, in August 2011, with personal funds, and loans from family friends, at a time when NanoViricides was unable to support this critical endeavor. With the Company’s improved finances, the Company now intends to purchase this facility from Inno-Haven. | |
Restatement_of_Previously_Issu
Restatement of Previously Issued Financial Statements | 3 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||
Accounting Changes and Error Corrections [Text Block] | Note 2- Restatement of Previously Issued Financial Statements | ||||||||||
In connection with the preparation of our unaudited financial statements for the quarter ended December 31, 2014, we determined that in preparing our audited financial statements for the year ended June 30, 2014, we inadvertently overlooked the anti-dilution provisions in certain warrants issued in connection with the company’s private placements of securities. Specifically, the warrants issued contained certain anti-dilution ratchet provisions that provided for an adjustment to the exercise price of the warrants if the company issued any stock equivalent securities at a lower price in the future while the option was still outstanding. Adjustments to settlement amounts by future equity offerings or contractual terms of other equity-linked financial instruments issued in a subsequent period are not inputs to the fair value of a fixed-for-fixed opinion on equity shares. Accordingly, the warrants are not considered indexed to its own stock and thus must be accounted for as derivative liabilities which require initial measurement at fair value and adjustment to fair value in subsequent periods. The Company determined that the error caused a material understatement of its derivative liability for the year ended June 30, 2014. As a result of this error, we restated our audited financial statements for the year ended June 30, 2014 and are restating the unaudited financial statements for the three months ended September 30, 2014 and 2013 contained herein. | |||||||||||
For the year ended June 30, 2014 this restatement increased the Company’s derivative liability and decreased Additional Paid in Capital by $5,235,682, decreased Accumulated deficit by $504,858 and reduced the Company’s loss for the year ended June 30, 2014 by $504,858. The results of the restatement for the three months ended September 30, 2013 were reflected in the financial statements for the Year ended June 30, 2014. | |||||||||||
In connection with the preparation of our unaudited financial statements for the quarter ended December 31, 2014 we determined that in preparing our unaudited financial statements for the quarter ended September 30, 2014, we inadvertently did not recognize a single compound embedded derivative included with the issuer’s redemption rights in the Series C Convertible Debenture and the holders conversion right to receive coupon interest in common stock of the issuer. The Series C Convertible Debentures were issued on July 2, 2014. The Company has restated its financial statements for the three month period ended September 30, 2014 to recognize Discount on Series C Debentures of $3,031,125 arising from$1,152,297 relative fair value of the Company’s Series A Preferred shares issued as interest and the fair value of $1,879,428 of the embedded derivative which was recognized as an increase in to derivative liability. Additionally $115,490 of interest expense was recognized due to amortization of the Discount on Series C Convertible Debentures. This resulted in a net adjustment of the originally reported discount of $1,373,479. | |||||||||||
The combined impacts of all the above adjustments to the line items in our unaudited financial statements for the periods covered by this Form 10Q/A are provided in the tables below: | |||||||||||
Schedule A – September 30, 2014 | |||||||||||
Nanoviricides, Inc. | |||||||||||
Balance Sheets | |||||||||||
September 30, 2014 | Net Adjustment | September 30,2014 | |||||||||
(Unaudited) | (Unaudited) | ||||||||||
Original | Restated | ||||||||||
ASSETS | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash and cash equivalents | $ | 41,120,652 | $ | 41,120,652 | |||||||
Prepaid expenses | 59,099 | 59,099 | |||||||||
Prepaid expenses - related parties | 424,402 | 424,402 | |||||||||
Other current assets | - | - | |||||||||
Total Current Assets | 41,604,153 | - | 41,604,153 | ||||||||
PROPERTY AND EQUIPMENT | |||||||||||
Property and equipment | 7,299,254 | 7,299,254 | |||||||||
Accumulated depreciation | -1,291,318 | -1,291,318 | |||||||||
Property and equipment, net | 6,007,936 | 6,007,936 | |||||||||
TRADEMARK | |||||||||||
Trademark | 458,954 | 458,954 | |||||||||
Accumulated amortization | -52,889 | -52,889 | |||||||||
Trademark, net | 406,065 | 406,065 | |||||||||
SECURITY DEPOSIT | 1,000,000 | 1,000,000 | |||||||||
Total Assets | $ | 49,018,154 | $ | 49,018,154 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Accounts payable | $ | 155,978 | $ | 155,978 | |||||||
Accounts payable – related parties | 331,448 | 331,448 | |||||||||
Accrued expenses | 265,463 | 265,463 | |||||||||
Total Current Liabilities | 752,889 | 752,889 | |||||||||
Debentures payable - Series B Net of discount | 4,195,296 | 4,195,296 | |||||||||
Derivative Liability - Series B Debentures | 3,785,385 | 3,785,385 | |||||||||
Derivative Liability - Warrants | - | 4,558,581 | 4,558,581 | ||||||||
Debentures Payable - Series C, Net of discount | 3,457,244 | -1,373,479 | 2,083,765 | ||||||||
Derivative Liability - Series C Debentures | - | 1,453,122 | 1,453,122 | ||||||||
Total Long Term Liabilities | 11,437,925 | 4,638,224 | 16,076,149 | ||||||||
Total Liabilities | 12,190,814 | 16,829,038 | |||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||
STOCKHOLDERS' EQUITY: | |||||||||||
Series A Convertible Preferred stock, $0.001 par value, 4,000,000 shares designated, 3,387,795 and 3,193,079 shares issued and outstanding, respectively | 3,389 | 3,389 | |||||||||
Series B Convertible Preferred stock, $0.001 par value, 10,000,000 shares designated, 0, and 0 shares issued and outstanding, respectively | - | - | |||||||||
Series C Convertible Preferred stock, $0.001 par value, 10,000,000 shares designated, 0 and 0 shares issued and outstanding, respectively | - | - | |||||||||
Common stock, $0.001 par value; 85,714,285 shares authorized; 56,535,135 and 54,620,993 shares issued and outstanding, respectively | 56,535 | 56,535 | |||||||||
Additional paid-in capital | 89,412,744 | -6,233,849 | 83,178,895 | ||||||||
Accumulated deficit | -52,645,328 | 1,595,625 | -51,049,703 | ||||||||
Total Stockholders' Equity | 36,827,340 | -4,638,224 | 32,189,116 | ||||||||
Total Liabilities and Stockholders' Equity | $ | 49,018,154 | $ | 49,018,154 | |||||||
Nanoviricides, Inc. | |||||||||||
Statements of Operations | |||||||||||
(Unaudited) | |||||||||||
For the Three Months | For the Three Months | ||||||||||
Ended | Ended | ||||||||||
September 30, 2014 | Net Adjustments | 30-Sep-14 | |||||||||
(Unaudited) | (Unaudited ) | ||||||||||
Original | Restated | ||||||||||
OPERATING EXPENSES | |||||||||||
Research and development | $ | 811,107 | $ | 811,107 | |||||||
Refund credit research and development costs | - | - | |||||||||
General and administrative | 876,026 | 876,026 | |||||||||
Total operating expenses | 1,687,133 | 1,687,133 | |||||||||
LOSS FROM OPERATIONS | -1,687,133 | -1,687,133 | |||||||||
OTHER INCOME (EXPENSE): | |||||||||||
Interest income, net | 39,323 | 39,323 | |||||||||
Interest expense | -245,000 | -245,000 | |||||||||
Discount on convertible debentures | -260,578 | -12,640 | -273,218 | ||||||||
Beneficial conversion feature of convertible debentures | - | - | |||||||||
Change in fair market value of derivatives | 1,914,318 | 1,103,407 | 3,017,725 | ||||||||
Other income (expense), net | 1,448,063 | 1,090,767 | 2,538,830 | ||||||||
INCOME (LOSS) BEFORE INCOME TAXES | -239,070 | 1,090,767 | 851,697 | ||||||||
INCOME TAX PROVISION | - | - | |||||||||
NET INCOME (LOSS) | $ | -239,070 | 1,090,767 | $ | 851,697 | ||||||
NET INCOME (LOSS) PER COMMON SHARE | |||||||||||
- BASIC AND DILUTED: | $ | -0.004 | $ | 0.015 | |||||||
Weighted average common shares outstanding | |||||||||||
- basic and diluted | 55,576,200 | 55,576,200 | |||||||||
Nanoviricides, Inc. | |||||||||||
Statements of Cash Flows | |||||||||||
(Unaudited) | |||||||||||
For the Three Months | Fot the Three Months | ||||||||||
Ended | Ended | ||||||||||
September 30, 2014 | Net Adjustment | Septembr 30,2014 | |||||||||
Original | Restated | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net loss | $ | -239,070 | 1,090,767 | $ | 851,697 | ||||||
Adjustments to reconcile net loss to net cash used in operating activities | |||||||||||
Preferred shares issued for license | |||||||||||
Series A Preferred shares issued as compensation | 72,980 | 72,980 | |||||||||
Common shares and warrants issued for services | 38,250 | 38,250 | |||||||||
Common shares issued for interest | |||||||||||
Warrants granted to scientific advisory board | 22,292 | 22,292 | |||||||||
Amortization of deferred compensation | |||||||||||
Depreciation | 51,332 | 51,332 | |||||||||
Amortization | 2,193 | 2,193 | |||||||||
Change in fair value of derivative liability | -1,914,318 | -1,103,407 | -3,017,725 | ||||||||
Amortization of deferred financing expenses | - | ||||||||||
Discount convertible debentures | 260,578 | 12,640 | 273,218 | ||||||||
Beneficial conversion feature of convertible debentures | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Prepaid expenses | 48,990 | 48,990 | |||||||||
Prepaid expenses - Related parties | 284,819 | 284,819 | |||||||||
Other current assets | 150,000 | 150,000 | |||||||||
Deferred expenses | |||||||||||
Accounts payable - trade | -220,468 | -220,468 | |||||||||
Accounts payable - related parties | -427,228 | -427,228 | |||||||||
Accrued expenses | 173,625 | 173,625 | |||||||||
Accrued payroll to officers and related payroll tax expense | |||||||||||
NET CASH USED IN OPERATING ACTIVITIES | -1,696,025 | - | -1,696,025 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Security deposit | - | ||||||||||
Purchase of property and equipment | -562,512 | -561,512 | |||||||||
Purchase of trademark | - | - | |||||||||
NET CASH USED IN INVESTING ACTIVITIES | -562,512 | -562,512 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from issuance of convertible debentures | |||||||||||
Proceeds from issuance of Convertible Preferred Series B stock, net | |||||||||||
Proceeds from issuance of Convertible Preferred Series C stock, net | |||||||||||
Proceeds from issuance of common stock and warrants in connection with private placements of common stock, net of issuance costs | |||||||||||
Proceeds from exercise of stock options | |||||||||||
Proceeds from exercise of warrants | 6,682,297 | 6,682,297 | |||||||||
Collection of stock subscriptions received | |||||||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 6,682,297 | 6,682,297 | |||||||||
NET CHANGE IN CASH | 4,423,760 | - | 4,693,131 | ||||||||
Cash at beginning of period | 36,696,892 | 36,696,892 | |||||||||
Cash at end of period | $ | 41,120,652 | $ | 41,120,652 | |||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | |||||||||||
Interest paid | $ | - | $ | - | |||||||
Income tax paid | $ | - | $ | - | |||||||
NON CASH FINANCING AND INVESTING ACTIVITIES: | |||||||||||
Common stock issued for services rendered | $ | 38,250 | 38,250.00 | ||||||||
Common stock for interest | |||||||||||
Preferred stock issued as compensation | 72,980 | 72,980.00 | |||||||||
Series A Preferred stock issued as discount on Debentures | 1,645,606 | 1,645,606.00 | |||||||||
Stock options issued to the officers as compensation | |||||||||||
Stock warrants granted to scientific advisory board | 22,292 | 22,292.00 | |||||||||
Schedule B – September 30, 2013 | |||||||||||
Nanoviricides, Inc. | |||||||||||
Balance Sheets | |||||||||||
September 30, 2013 | September 30,2013 | ||||||||||
(Unaudited) | (Unaudited) | ||||||||||
As Original Reported | Net Adjustment | As Restated | |||||||||
ASSETS | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash and cash equivalents | $ | 19,200,882 | $ | $ | 19,200,882 | ||||||
Prepaid expenses | 805,145 | 805,145 | |||||||||
Total Current Assets | 20,006,027 | 20,006,027 | |||||||||
PROPERTY AND EQUIPMENT | |||||||||||
Property and equipment | 3,779,636 | 3,779,636 | |||||||||
Accumulated depreciation | -1,089,471 | -1,089,471 | |||||||||
Property and equipment, net | 2,690,165 | 2,690,165 | |||||||||
TRADEMARK | |||||||||||
Trademark | 458,954 | 458,954 | |||||||||
Accumulated amortization | -44,114 | -44,114 | |||||||||
Trademark, net | 414,840 | 414,840 | |||||||||
SECURITY DEPOSIT | 2,000,000 | 2,000,000 | |||||||||
Total Assets | $ | 25,111,032 | $ | 25,111,032 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Accounts payable | $ | 408,058 | $ | 408,058 | |||||||
Accounts payable – related parties | 1,139,825 | 1,139,825 | |||||||||
Accrued expenses | 319,612 | 319,612 | |||||||||
Total Current Liabilities | 1,867,495 | 1,867,495 | |||||||||
Debentures payable | 3,603,554 | 3,603,554 | |||||||||
Derivative liability - Debenture | 7,888,736 | 7,888,736 | |||||||||
Derivative liability - Warrants | - | 3,443,717 | 3,443,717 | ||||||||
Total Long Term Liabilities | 11,492,290 | 3,443,717 | 14,936,007 | ||||||||
Total Liabilities | 13,359,785 | 3,443,717 | 16,803,502 | ||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||
STOCKHOLDERS' EQUITY: | |||||||||||
Series A Convertible Preferred stock, $0.001 par value, 2,990,000 shares designated, 2,990,000 shares issued and outstanding | 2,990 | 2,990 | |||||||||
Series B Convertible Preferred stock, $0.001 par value, 10,000,000 shares designated, 0, and 0 shares issued and outstanding, respectively | - | - | |||||||||
Series C Convertible Preferred stock, $0.001 par value, 10,000,000 shares designated, 0 and 0 shares issued and outstanding, respectively | - | - | |||||||||
Common stock, $0.001 par value; 85,714,285 shares authorized; 50,028,701 and 47,026,173 shares issued and outstanding, respectively | 50,029 | 50,029 | |||||||||
Additional paid-in capital | 56,270,792 | -3,154,975 | 53,115,817 | ||||||||
Deficit accumulated during the development stage | -44,572,564 | -288,742 | -44,861,306 | ||||||||
Total Stockholders' Equity | 11,751,247 | -3,443,717 | 8,307,530 | ||||||||
Total Liabilities and Stockholders' Equity | $ | 25,111,032 | $ | $ | 25,111,032 | ||||||
Nanoviricides, Inc. | |||||||||||
Statements of Operations | |||||||||||
For the Three Months | For the Three Months | ||||||||||
Ended | Ended | ||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||
(Unaudited) | (Unaudited) | ||||||||||
As Original Reported | Net Adjustment | As Restated | |||||||||
OPERATING EXPENSES | |||||||||||
Research and development | $ | 1,174,221 | $ | 1,174,221 | |||||||
Refund credit research and development costs | - | - | |||||||||
General and administrative | 714,561 | 714,561 | |||||||||
Total operating expenses | 1,888,782 | - | 1,888,782 | ||||||||
LOSS FROM OPERATIONS | -1,888,782 | - | -1,888,782 | ||||||||
OTHER INCOME (EXPENSE): | |||||||||||
Interest income, net | 9,560 | 9,560 | |||||||||
Interest expense | -120,986 | -120,986 | |||||||||
Discount on convertible debentures | -135,481 | -135,481 | |||||||||
Beneficial conversion feature of convertible debentures | - | - | |||||||||
Change in fair market value of derivatives | -4,137,091 | -288,742 | -4,425,833 | ||||||||
Other income (expense), net | -4,383,998 | -288,742 | -4,672,740 | ||||||||
LOSS BEFORE INCOME TAXES | -6,272,780 | -288,742 | -6,561,522 | ||||||||
INCOME TAX PROVISION | - | - | - | ||||||||
NET LOSS | $ | -6,272,780 | -288,742 | $ | -6,561,522 | ||||||
NET LOSS PER COMMON SHARE | |||||||||||
- BASIC AND DILUTED: | $ | -0.13 | $ | -0.14 | |||||||
Weighted average common shares outstanding | |||||||||||
- basic and diluted | 47,672,029 | 47,672,029 | |||||||||
Nanoviricides, Inc. | |||||||||||
Statements of Cash Flows | |||||||||||
For the Three Months | For the Three Months | ||||||||||
Ended | Ended | ||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||
(Unaudited) | (Unaudited) | ||||||||||
As Original Reported | Net Adjustment | As Restated | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net loss | $ | -6,272,780 | $ | -288,742 | $ | -6,561,522 | |||||
Adjustments to reconcile net loss to net cash used in operating activities | |||||||||||
Common shares and warrants issued for services | 32,250 | 32,250 | |||||||||
Warrants granted to scientific advisory board | 106,050 | 106,050 | |||||||||
Depreciation | 52,719 | 52,719 | |||||||||
Amortization | 2,193 | 2,193 | |||||||||
Change in fair value of derivative liability | 4,137,091 | 288,742 | 4,425,833 | ||||||||
Discount convertible debentures | 135,481 | 135,481 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Prepaid expenses | -206,765 | -206,765 | |||||||||
Accounts payable - trade | 144,802 | 144,802 | |||||||||
Accounts payable - related parties | 429,258 | 429,258 | |||||||||
Accrued expenses | 115,253 | 115,253 | |||||||||
NET CASH USED IN OPERATING ACTIVITIES | -1,324,448 | - | -1,324,448 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Security deposit | -1,000,000 | -1,000,000 | |||||||||
Purchase of property and equipment | -2,273,989 | -2,273,989 | |||||||||
NET CASH USED IN INVESTING ACTIVITIES | -3,273,989 | - | -3,273,989 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from issuance of common stock and warrants in connection with private placements of common stock, net of issuance costs | 9,690,450 | 9,690,450 | |||||||||
Proceeds from exercise of warrants | 185,624 | 185,624 | |||||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 9,876,074 | 9,876,074 | |||||||||
NET CHANGE IN CASH | 5,277,637 | 5,277,637 | |||||||||
Cash at beginning of period | 13,923,245 | 13,923,245 | |||||||||
Cash at end of period | $ | 19,200,882 | $ | 19,200,882 | |||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | |||||||||||
Interest paid | $ | - | $ | - | |||||||
Income tax paid | $ | - | $ | - | |||||||
NON CASH FINANCING AND INVESTING ACTIVITIES: | |||||||||||
Common stock issued for services rendered | $ | 32,250 | $ | 32,250 | |||||||
Stock warrants granted to scientific advisory board | $ | 106,050 | $ | 106,050 | |||||||
Stock warrants granted to brokers | $ | 113,696 | $ | 113,696 | |||||||
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | |||||
Sep. 30, 2014 | ||||||
Accounting Policies [Abstract] | ||||||
Significant Accounting Policies [Text Block] | Note 3 - Summary of Significant Accounting Policies | |||||
Basis of Presentation – Interim Financial Information | ||||||
The accompanying unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission for Interim Reporting. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, considered necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. The accompanying financial statements and the information included under the heading “Management’s Discussion and Analysis or Plan of Operation” should be read in conjunction with our company’s audited financial statements and related notes included in our company’s form 10-K/A for the fiscal year ended June 30, 2014 filed with the SEC. | ||||||
For a summary of significant accounting policies (which have not changed from June 30, 2014), see the Company’s Annual Report on Form 10-K/A for the fiscal year ended June 30, 2014. | ||||||
Net Income (Loss) per Common Share | ||||||
Net income (loss) per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through stock options and warrants. | ||||||
The following table shows the number of potentially outstanding dilutive common shares excluded from the diluted net income (loss) per common share calculation as they were anti-dilutive: | ||||||
Potentially Outstanding Dilutive Common Shares | ||||||
For the | For the Fiscal | |||||
Three Months | Year | |||||
Ended | Ended | |||||
September 30, 2014 | September 30, 2013 | |||||
Stock options | ||||||
Stock options issued on September 23, 2005 to the founders of the Company upon formation with an exercise price of $0.35 per share expiring ten (10) years from the date of issuance | 535,715 | 535,715 | ||||
Sub-total: stock options | 535,715 | 535,715 | ||||
Warrants | ||||||
Warrants issued from June 15,2006 to October 1, 2007 to investors in connection with the Company’s equity financing with an exercise price of $3.50 per share expiring August 15, 2014 | - | 513,143 | ||||
Warrants issued on August 22, 2008 to investors in connection with the Company’s equity financing with an exercise price of $3.50 per share expiring August 15, 2014 | - | 466,486 | ||||
Warrants issued from June 15, 2008 through May 15, 2010 to SAB for services with an exercise price from $2.45 to $9.38 per share expiring February 28, 2015 | 211,429 | 211,429 | ||||
Warrants issued on June 30, 2009 to investors with an exercise price of $3.50 per share expiring August 15, 2014 | - | 568,771 | ||||
Warrants issued on September 30, 2009 to investors with an exercise price of $3.50 per share expiring August 15, 2014 | - | 1,437,871 | ||||
Warrants issued from August 16, 2010 to May 15, 2011 to SAB for services with an exercise price ranging from $5.15 to $6.34 per share expiring fiscal year ending June 30, 2015 | 65,714 | 65,714 | ||||
Warrants issued from August 16, 2011 to May 15, 2012 to SAB for services with an exercise price ranging from $2.80 to $4.94 per share expiring fiscal year ending June 30, 2016 | 68,571 | 68,571 | ||||
Warrants issued from August 16, 2012 to September 30, 2013 to SAB for services with an exercise price of $5.17 per share expiring fiscal year ending June 30, 2017 | 68,571 | 68,571 | ||||
Warrants issued on September 10, 2013 to investors with an exercise price of $5.25 per share expiring September 10, 2018 less Warrants exercised through September 30, 2014 | 2,810,071 | 2,910,071 | ||||
Warrants issued on August 15, 2013 to SAB for services with an exercise price of $5.17 per share expiring on August 15, 2017 | 17,143 | 17,143 | ||||
Warrants issued on September 10, 2013 to Placement Agents as commissions with an exercise price of $5.25 per share expiring September 10, 2018 | 58,910 | 58,910 | ||||
Warrants issued on November 15, 2013 to SAB for services with an exercise price of $6.56 per share expiring on November 15, 2017 | 17,143 | |||||
Warrants issued on January 24, 2014 to investors with an exercise price of $6.05 per share expiring January 24, 2019 | 2,479,935 | |||||
Warrants issued on January 24, 2014 to investors with an exercise price of $5.25 per share expiring January 24, 2019 | 76,306 | |||||
Warrants issued on February 14, 2014 to SAB for services with an exercise price of $3.98 per share expiring on February 14, 2018 | 17,143 | |||||
Warrants issued on May 15, 2014 to SAB for services with an exercise price of $4.11 per share expiring on May 15, 2018 | 17148 | |||||
Warrants issued on August 15, 2014 to SAB for services with an exercise price of $5.02 per share expiring on August 15, 2018 | 17,148 | |||||
Sub-total: warrants | 5,925,231 | 6,386,680 | ||||
Total potentially outstanding dilutive common shares | 6,460,946 | 6,922,395 | ||||
In addition the Company has issued Convertible Debentures, to investors. A portion of the interest required to be paid on the Debentures is payable in restricted shares of the Company’s $0.001 par value common stock or in warrants, according to the terms of the Debenture. | ||||||
At September 30, 2014 the estimated number of potentially dilutive shares of the Company’s common stock into which these Debentures can be converted is 1,960,785 based upon the Selling price of the Company’s common stock on September 30, 2014 of $3.06. At September 30, 2014 the estimated number of potentially dilutive shares of the Company’s common stock arising from the payment of a portion of the future interest to be paid on the debentures in common shares or warrants is 1,142,858. | ||||||
The Company has also issued 3,387,795 of $0.001 par value Convertible Preferred A shares to investors and others. Only in the event of a “change of control” of the Company, each Series A preferred share is convertible to 3.5 shares of its new common stock. A “change of control” is defined as an event in which the Company’s shareholders become 60% or less owners of a new entity as a result of a change of ownership, merger or acquisition. In the absence of a change of control event, the Series A stock is not convertible into Common Stock, and does not carry any dividend rights or any other financial effects. At September 30, 2014, the estimated number of potentially dilutive shares of the Company’s common stock into which these Series A Preferred shares can be converted into, is 11,857,283. | ||||||
Recently Issued Accounting Pronouncements | ||||||
In June 2014, the FASB issued ASU No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. | ||||||
The amendments in this Update remove the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. | ||||||
The amendments also clarify that the guidance in Topic 275, Risks and Uncertainties, is applicable to entities that have not commenced planned principal operations. | ||||||
Finally, the amendments remove paragraph 810-10-15-16. Paragraph 810-10-15-16 states that a development stage entity does not meet the condition in paragraph 810-10-15-14(a) to be a variable interest entity if (1) the entity can demonstrate that the equity invested in the legal entity is sufficient to permit it to finance the activities that it is currently engaged in and (2) the entity’s governing documents and contractual arrangements allow additional equity investments. | ||||||
The amendments in this Update also eliminate an exception provided to development stage entities in Topic 810, Consolidation, for determining whether an entity is a variable interest entity on the basis of the amount of investment equity that is at risk. The amendments to eliminate that exception simplify U.S. GAAP by reducing avoidable complexity in existing accounting literature and improve the relevance of information provided to financial statement users by requiring the application of the same consolidation guidance by all reporting entities. The elimination of the exception may change the consolidation analysis, consolidation decision, and disclosure requirements for a reporting entity that has an interest in an entity in the development stage. | ||||||
The amendments related to the elimination of inception-to-date information and the other remaining disclosure requirements of Topic 915 should be applied retrospectively except for the clarification to Topic 275, which shall be applied prospectively. For public business entities, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. | ||||||
The company has limited operations and is considered to be in the development stage. The Company has elected to early adopt Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements. The adoption of this ASU allows the company to remove the inception to date information and all references to development stage. The Company adopted this guidance from June 30, 2014 | ||||||
In June 2014, the FASB issued the FASB Accounting Standards Update No. 2014-12 “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” (“ASU 2014-12”). | ||||||
The amendments clarify the proper method of accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The Update requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. 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. | ||||||
The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of the ASU would not have a material effect on the accompanying financial statements. | ||||||
In August 2014, the FASB issued the FASB Accounting Standards Update No. 2014-15 “Presentation of Financial Statements— Going Concern (Subtopic 205-40) (Topic 718): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”). | ||||||
The Update provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. | ||||||
This Update is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. | ||||||
The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Earlier adoption is permitted. | ||||||
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements. | ||||||
Financial_Condition
Financial Condition | 3 Months Ended |
Sep. 30, 2014 | |
Financial Conditions Disclosure [Abstract] | |
Financial Conditions Disclosure [Text Block] | Note 4 - Financial Condition |
The Company’s financial statements for the interim period ended September 30, 2014 have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business. The Company has a deficit accumulated from inception. In addition, the Company has not generated any revenues and no revenues are anticipated in the short-term. Since May 2005, the Company has been engaged exclusively in research and development activities focused on developing targeted antiviral drugs. The Company has not yet commenced any product commercialization. Such losses are expected to continue for the foreseeable future and until such time, if ever, as the Company is able to attain sales levels sufficient to support its operations. There can be no assurance that the Company will achieve or maintain profitability in the future. As of September 30, 2014 the Company had cash and cash equivalents of $41,120,652. The Company has sufficient capital to continue its business, at least, through September 30, 2016, at the current rate of expenditure. The Company therefore would not be considered to have risks relative to its ability to continue as a going concern within the applicable guidelines. | |
While the Company continues to incur significant operating losses with significant capital requirements, the Company has been able to finance its business through sale of its securities. | |
On July 2, 2014, (the “Closing Date”), the Company accepted a subscription in the amount of $5,000,000 for a 10% Coupon Series C Convertible Debenture (the “Debenture”) from Dr. Milton Boniuk, a member of the Company’s Board of Directors (the “Holder”). The $5,000,000 funding of the Debenture had been received by the Company prior to June 30, 2014, the year end reporting period and the Company has reported the said Debenture in these financial statements under long term liabilities. The Debenture is due on June 30, 2018 (the “Maturity Date”) and is convertible, at the sole option of the Holder, into restricted shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) at the conversion price of $5.25 per share of Common Stock. The Debenture bears interest at the coupon rate of ten percent (10%) per annum, computed on an annual basis of a 365 day year, payable in quarterly installments on March 31, June 30, September 30 and December 31 of each calendar year until the Maturity Date. Interest for the first quarter ending September 30, 2014 shall be calculated on a per diem basis from the Closing Date. The Company has the right, but not the obligation, to repay the Debenture prior to the Maturity Date (the “Redemption Payment”) in cash or, at the option of the Holder, a number of shares of the Company’s Common Stock. If the closing bid price of the Common Stock is in excess of $5.25 when the Company notifies the Holder it has elected to prepay the Debenture (the “Redemption Date”), the Company must redeem the Debenture by delivering to the Holder 951,381 shares of Common Stock and any unpaid coupon interest in lieu of a cash Redemption Payment. If the Holder elects to receive the Redemption Payment in cash, or if the closing bid price of the Common Stock is less than $5.25, the Company shall pay to the Holder a Redemption Payment in cash equal to the principal amount of the Debenture, plus any accrued coupon interest, and additional interest of 7% per annum for the period from the Closing Date to the Redemption Date. As additional interest on the Debenture, the Company shall issue 187,000 shares of its restricted Series A Preferred Stock (the “Series A”) to the Holder. Each shares of Series A votes at 9 votes per share. In addition, only in the event of a “change of control” of the Company, each Series A preferred share is convertible to 3.5 shares of its new common stock. A “change of control” is defined as an event in which the Company’s shareholders become 60% or less owners of a new entity as a result of a change of ownership, merger or acquisition. In the absence of a change of control event, the Series A stock is not convertible into Common Stock, and does not carry any dividend rights or any other financial effects. The Offering was conducted directly by the Company without the use of a placement agent. Accordingly, no placement agent fees or other commissions were paid by the Company in connection with the Offering. | |
On September 5, 2014, NanoViricides, Inc. (the “Company”) accepted notices to exercise old warrants (See Note 9, below.) for the purchase of an aggregate of 2,136,655 shares of the Company’s common stock at the exercise price of $3.50 per share for aggregate proceeds of $7,478,292.50. On July 17, 2014, the Company filed a registration statement on Form S-3 (the “Form S-3”) registering an aggregate of 3,071,986 shares of common stock underlying warrants previously issued by the Company in various private placement offerings between 2005 and September 2009 (the “Old Warrants”), as described more fully in the Form S-3 (the “Registered Warrants”). The Form S-3 was declared effective by the Securities and Exchange Commission on August 1, 2014. As of August 15, 2014, any Registered Warrants as specified above and not previously exercised have expired. | |
As a result of the successful sale of the Company’s Common Shares, management believes that the Company has sufficient cash and cash equivalents to meet its budgeted expenditures through, at least, September 30, 2016 at current rate of expenditures. | |
Since May 2005, the Company has been engaged exclusively in research and development activities focused on developing targeted antiviral nanomedicines. The Company has not yet commenced any product commercialization. The Company has incurred significant losses from operations since its inception, resulting in a an accumulated deficit of $(52,645,328) at September 30, 2014 and expects recurring losses from operations to continue for the foreseeable future and until such time, if ever, as the Company is able to attain sales levels sufficient to support its operations. There can be no assurance that the Company will achieve or maintain profitability in the future. Despite the Company’s financings in 2014 and 2013 and a cash and cash equivalent balance of $41,120,652 at September 30, 2014, substantial additional financing will be required in future periods. The Company may require additional capital to finance planned and currently unplanned capital costs, and additional staffing requirements during the next twenty four months. The Company has, in the past, adjusted its priorities and goals in line with the cash on hand and capital availability. The Company believes it can adjust its priorities of drug development and its Plan of Operations as necessary, if it is unable to raise such additional funds. | |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Related Party Transactions Disclosure [Text Block] | Note 5 - Related Party Transactions | |||||||
Related Parties | ||||||||
Related parties with whom the Company had transactions are: | ||||||||
Related Parties | Relationship | |||||||
Anil R. Diwan | Chairman, President, significant stockholder and director | |||||||
Eugene Seymour | CEO, Significant shareholder, Director | |||||||
TheraCour Pharma, Inc. | An entity owned and controlled by significant stockholder | |||||||
InnoHaven, LLC | An entity owned and controlled by significant stockholder | |||||||
Milton Boniuk, MD | Director and significant stockholder | |||||||
Fixed Assets | ||||||||
September 30, 2014 | June 30, 2014 | |||||||
During the reporting period, InnoHaven, LLC, acquired fixed assets on behalf of the Company from third party vendors behalf of the Company at 1 Controls Drive, Shelton, Ct | $ | - | $ | 4,500,000 | ||||
During the reporting Period, Thera Cour Pharma, Inc. acquired fixed assets on behalf of the Company from third party vendors | $ | 110,578 | $ | 528,000 | ||||
Account Payable – Related Party | ||||||||
September 30, 2014 | June 30 , 2014 | |||||||
Pursuant to an Exclusive License Agreement we entered into with TheraCour Pharma, Inc., (TheraCour), the Company was granted exclusive licenses in perpetuity for technologies developed by TheraCour for the virus types: HIV, HCV, Herpes, Asian (bird) flu, Influenza and rabies.. In consideration for obtaining this exclusive license, we agreed: (1) that TheraCour can charge its costs (direct and indirect) plus no more than 30% of direct costs as a Development Fee and such development fees shall be due and payable in periodic installments as billed. (2) we will pay $25,000 per month for usage of lab supplies and chemicals from existing stock held by TheraCour, (3) we will pay $2,000 or actual costs, whichever is higher for other general and administrative expenses incurred by TheraCour on our behalf. Accounts payable due TheraCour Pharma Inc on the reporting date was | $ | 331,448 | $ | 758,676 | ||||
Research and Development Costs Paid to Related Parties | ||||||||
September | September 30, | |||||||
30, 2014 | 2013 | |||||||
Development and other costs charged by and paid to TheraCour Pharma, Inc. pursuant to exclusive License Agreements between TheraCour and the Company for the development of the Company’s drug pipeline. As of September 30, 2014, pursuant to its license agreement, the Company has paid a security advance of $424,402 to and held by TheraCour Pharma, Inc. which is reflected in Prepaid Expenses. No royalties are due TheraCour from the Company’s inception through June 30, 2014. | $ | 769,185 | $ | 924,125 | ||||
Long-Term Debentures Payable – Directors | ||||||||
September 30, 2014 | June 30, 2014 | |||||||
On February 1, 2013, the Company raised $4M from a family investment office and a charitable foundation controlled by Dr. Milton Boniuk through the issuance of our Series B Debentures. The investors purchased unsecured convertible debentures with a 4-year term. The debentures bear an interest rate of 8% p.a., an additional interest payable in restricted common stock of 0.33, 0.33, and 0.34 shares in year 1, 2, and 3 respectively, and an additional interest of 0.33 warrants to be issued in the fourth year, per $1 of principal. The warrants are priced at $3.50 and will be valid for 3 years after issuance. The investors can convert the principal and any accrued interest into common stock at a fixed price of $3.50 per share. The Company can prepay the debentures, in which case the base interest rate shall increase by a 7% prepayment penalty. The Company agreed to use its best efforts to register the interest shares and the shares issuable from the interest warrants under a “shelf” registration statement provided same is available, in accordance with the provisions of the Securities Act. | $ | 4,000,000 | $ | 4,000,000 | ||||
Repayments from inception to date | - | - | ||||||
Remaining balance | 4,000,000 | 4,000,000 | ||||||
Subsequent to the reporting period the Company on July 2, 2014, (the “Closing Date”), the Company accepted a subscription in the amount of $5,000,000 for a 10% Coupon Series C Convertible Debenture (the “Debenture”) from Dr. Milton Boniuk, a member of the Company’s Board of Directors (the “Holder”). The $5,000,000 funding of the Debenture had been received by the Company prior to June 30, 2014, the year end reporting period and the Company has reported the said Debenture in these financial statements under long term liabilities. The Debenture is due on June 30, 2018 (the “Maturity Date”) and is convertible, at the sole option of the Holder, into restricted shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) at the conversion price of $5.25 per share of Common Stock. The Debenture bears interest at the coupon rate of ten percent (10%) per annum, computed on an annual basis of a 365 day year, payable in quarterly installments on March 31, June 30, September 30 and December 31 of each calendar year until the Maturity Date. Interest for the first quarter ending September 30, 2014 has been accrued and will be paid over the remaining life of the Debenture commencing July 1, 2015. | 5,000,000 | 5,000,000 | ||||||
Repayments from inception to date | - | - | ||||||
Remaining balance | 5,000,000 | 5,000,000 | ||||||
$ | 9,000,000 | $ | 9,000,000 | |||||
Pursuant to an Exclusive License Agreement we entered into with TheraCour Pharma, Inc., (TheraCour), the Company was granted exclusive licenses in perpetuity for technologies developed by TheraCour for the virus types: HIV, HCV, Herpes, Asian (bird) flu, Influenza and rabies. In consideration for obtaining this exclusive license, we agreed: (1) that TheraCour can charge its costs (direct and indirect) plus no more than 30% of direct costs as a Development Fee and such development fees shall be due and payable in periodic installments as billed. (2) we will pay $25,000 per month for usage of lab supplies and chemicals from existing stock held by TheraCour, (3) we will pay $2,000 or actual costs, whichever is higher for other general and administrative expenses incurred by TheraCour on our behalf. (4) we will make royalty payments (calculated as a percentage of net sales of the licensed drugs) of 15% to TheraCour Pharma, Inc. (5) and agreed that TheraCour Pharma, Inc. retains the exclusive right to develop and manufacture the licensed drugs. TheraCour Pharma, Inc. agreed that it will manufacture the licensed drugs exclusively for NanoViricides, and unless such license is terminated, will not manufacture such product for its own sake or for others. | ||||||||
Concentrations
Concentrations | 3 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Risks and Uncertainties [Abstract] | ||||||||||||||||||
Concentration Risk Disclosure [Text Block] | Note 6 - Concentrations | |||||||||||||||||
Vendor purchase concentrations for September 30, 2014 and 2013 are as follows: | ||||||||||||||||||
Net Purchases | Accounts Payable | |||||||||||||||||
For the three months ended September 30, | As of September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
TheraCour Pharma, Inc | 769,185 | 45.6 | % | 924,126 | 48.9 | % | 331,448 | 68 | % | 1,139,825 | 73.6 | % | ||||||
Kard Scientific, Inc. | - | 0 | % | 247,660 | 13.1 | % | 123,570 | 25.4 | % | 246,963 | 16 | % | ||||||
Total Purchases | 1,687,133 | 100 | % | 1,888,782 | 100 | % | 487,426 | 100 | % | 1,547,883 | 100 | % | ||||||
Property_and_Equipment
Property and Equipment | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | N ote 7 - Property and Equipment | |||||||
Property and equipment, stated at cost, less accumulated depreciation consisted of the following: | ||||||||
September 30, | June 30, | |||||||
2014 | 2014 | |||||||
GMP Facility | $ | 3,551,713 | $ | 3,099,780 | ||||
Office Equipment | 30,048 | 30,048 | ||||||
Furniture and Fixtures | 1,400 | 1,400 | ||||||
Lab Equipment | 3,716,093 | 3,605,514 | ||||||
Total Property and Equipment | 7,299,254 | 6,736,742 | ||||||
Less Accumulated Depreciation | -1,291,318 | -1,239,986 | ||||||
Property and Equipment, Net | $ | 6,007,936 | $ | 5,496,756 | ||||
Depreciation expenses for the three months ended September 30, 2014 and 2013 were $51,332 and $52,719, respectively. | ||||||||
Trademark_and_Patents
Trademark and Patents | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Intangible Assets Disclosure [Text Block] | Note 8 - Trademark and Patents | |||||||
Trademark and patents, stated at cost, less accumulated amortization consisted of the following: | ||||||||
September 30, | June 30, | |||||||
2014 | 2014 | |||||||
Trademarks and Patents | $ | 458,954 | $ | 458,954 | ||||
Less Accumulated Amortization | -52,889 | -50,696 | ||||||
Trademarks and Patents, Net | $ | 406,065 | $ | 408,258 | ||||
Amortization expense amounted to $2,193 and 2,193 for the three months ended September 30, 2014, and 2013, respectively. | ||||||||
Prepaid_Expenses
Prepaid Expenses | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Prepaid Expenses [Abstract] | ||||||||
Prepaid Expenses Disclosure [Text Block] | Note 9 - Prepaid Expenses | |||||||
Prepaid Expenses are summarized as follows: | ||||||||
September 30, | June 30, | |||||||
2014 | 2014 | |||||||
TheraCour Pharma, Inc. | $ | 424,402 | $ | 709,221 | ||||
Prepaid Others | 59,099 | 108,089 | ||||||
$ | 483,501 | $ | 817,310 | |||||
Equity_Transactions
Equity Transactions | 3 Months Ended | ||||
Sep. 30, 2014 | |||||
Stockholders' Equity Note [Abstract] | |||||
Stockholders' Equity Note Disclosure [Text Block] | Note 10 - Equity Transactions | ||||
On September 5, 2014, NanoViricides, Inc. (the “Company”) accepted notices to exercise old warrants for the purchase of an aggregate of 2,136,655 shares of the Company’s common stock at the exercise price of $3.50 per share for aggregate proceeds of $7,478,292.50. On July 17, 2014, the Company filed a registration statement on Form S-3 (the “Form S-3”) registering an aggregate of 3,071,986 shares of common stock underlying warrants previously issued by the Company in various private placement offerings between 2005 and September 2009, (“old warrants”) as described more fully in the Form S-3 (the “Registered Warrants”). The Form S-3 was declared effective by the Securities and Exchange Commission on August 1, 2014. As of August 15, 2014, any Registered Warrants as specified above and not previously exercised have expired. | |||||
Unregistered Securities | |||||
On July 2, 2014, (the “Closing Date”), the Company accepted a subscription in the amount of $5,000,000 for a 10% Coupon Series C Convertible Debenture (the “Debenture”) from Dr. Milton Boniuk, a member of the Company’s Board of Directors (the “Holder”). | |||||
On July 2, 2014, in conjunction with the issuance of the Company’s Series C Convertible Debentures, the Company issued 187,000 Shares of its Series A Convertible Preferred stock to Dr. Milton Boniuk as additional interest, pursuant to the terms of the Debenture. | |||||
In connection with the preparation of our unaudited financial statements for the quarter ended December 31, 2014, we determined that in preparing our unaudited financial statements for the quarter ended September 30, 2014, we inadvertently did not recognize a single compound embedded derivative included with the issuer’s redemption rights in the Series C Convertible Debenture and the holders conversion right to receive coupon interest in common stock. See Note 2 to the financial statements. | |||||
The Company first allocated the proceeds between the relative fair value of 187,000 of the Series A Convertible Preferred Stock and the Debenture and a debt discount is recorded to offset the amount of the proceeds allocated to the Preferred Stock, then the embedded derivative is bifurcated at fair value with the remaining balance allocated to the Debenture. | |||||
There is currently no market for the shares of Series A Preferred Stock and they can only be converted into shares of common stock upon a change of control of the Company. The Company, therefore, estimated the relative fair value of the Preferred A shares granted to various Employees on the date of grant. The Preferred Series A shares fair value is based on the greater of i) the converted value to common at a ratio of 1:3.5; ii) the value of the voting rights since the holder would lose the voting rights upon conversion. The conversion of the shares is triggered either by the Company or a Change of Control. The valuations of the Series A Preferred Stock as of 9/30/14 used the following inputs: | |||||
a. | The common stock price (post-reverse split) was in the range $3.90 to $4.16; | ||||
b. | 54,614,930 to 56,450,000 shares outstanding and Series A Preferred shares with 2,572 (post–split 9/10/13) issued monthly ; | ||||
c. | A 5.36% premium over the common shares for the voting preferences; | ||||
d. | 63,899,777 to 65,193,001 total voting shares and the monthly shares representing voting rights of 2.425% to 2.448% of the total; | ||||
e. | The conversion value is based on an assumption for calculation purposes only of a Change of Control in 4 years from 3/1/13 and a remaining restricted term of 2.59 to 2.42 years; | ||||
f. | 35.53% to 31.95% restricted stock discount (based on a restricted stock analysis and call-put analysis curve: 87.68% to 91.87% volatility, 0.47% to 0.58% risk free rate) applied to the converted common. | ||||
The relative fair value of 187,000 shares of the Series A Preferred stock on issuance date was $1,152,297. | |||||
The Company used a 3rd party consultant to develop a latticemodel that values the compound embedded derivatives of the Series C Convertible Debenture based on a probability weighted discounted cash flow model at issuance date and quarterly period ended September 30, 2014. | |||||
The following assumptions were used for the valuation of the compound embedded derivative: | |||||
⋅ | The balance of the Series C Convertible Debenture as of issuance and 9/30/14 is $5,000,000; | ||||
⋅ | The underlying stock price was used as the fair value of the common stock; The pre–split stock price decreased from $0.8571 to $0.7771 which significantly increased the warrant value with the $1.00 exercise price (from out to in the money); | ||||
⋅ | The projected annual volatility was based on the Company historical volatility: | ||||
1 year | |||||
7/1/14 92% | |||||
9/30/14 85% | |||||
12/31/14 75% | |||||
⋅ | An event of default would occur 0% of the time, increasing 1.00% per month to a maximum of 10%; | ||||
⋅ | The company would redeem the debentures projected initially at 0% of the time and increase monthly by 1.0% to a maximum of 5.0% (from alternative financing being available for a Redemption event to occur); | ||||
⋅ | The Holder would automatically convert the interest if the company was not in default and its shares value would equivalent to the cash value; | ||||
⋅ | The Holder would automatically convert the debenture at maturity if the registration was effective and the company was not in default. | ||||
⋅ | The Weighted Cost of Capital discount rate (based on the Market Value of the transaction at issuance) adjusted for changes in the risk free rate is 21.86%. | ||||
⋅ | Even through the shares are restricted the underlying assumption is that any restriction on resale will be removed either through registration or the passage of time at the time of issuance. | ||||
The fair value of the compound embedded derivatives of the Series C Convertible Debenture as of September 30, 2014 was $1,879,428. | |||||
The Company recognized a charge of $3,031,125 as a discount of the Series C Debenture which will be amortized over the remaining life of the Debenture under the straight line method. For the three months ended September 30, 2014, the Company recognized $115,490 amortization of this discount as a charge to “Discount on convertible debentures”. | |||||
In August, 2014, the Scientific Advisory Board (SAB) was granted warrants to purchase 17,148 shares of common stock at $5.02 per share expiring in August, 2018. These warrants were valued at $22,292 and recorded as consulting expense. | |||||
For the three months ended September 30, 2014, the Company’s Board of Directors authorized the issuance of 7,716 shares of its Series A Convertible Preferred stock for employee compensation. The Company recorded an expense of $72,980. | |||||
For the three months ended September 30, 2014, the Company’s Board of Directors authorized the issuance of 2,059 shares of its common stock with a restrictive legend for consulting services. The Company recorded an expense of $27,000. | |||||
For the three months ended September 30, 2014, the Company’s Board of Directors authorized the issuance of 2,856 shares of its common stock with a restrictive legend for Director services. The Company recorded an expense of $11,250. | |||||
The Company estimated the relative fair value of the warrants granted quarterly to the Scientific Advisory Board on the date of grant using the Black-Scholes Option-Pricing Model with the following weighted-average assumptions: | |||||
August 15, | |||||
2014 | |||||
Expected life (year) | 4 | ||||
Expected volatility | 91.68 | % | |||
Expected annual rate of quarterly dividends | 0 | % | |||
Risk-free rate(s) | 1.2 | % | |||
Stock_Options_and_Warrants
Stock Options and Warrants | 3 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 11 - Stock Options and Warrants | |||||||||||||||
Stock Options | ||||||||||||||||
In September 2005, 142,857 stock options were granted to Eugene Seymour, our CEO under an employment agreement. Of these options, 71,429 were vested immediately and are exercisable from September 2005 until September 2015, and the remaining options vested annually on January 1, 2007 and 2008 in two equal amounts. | ||||||||||||||||
In September 2005, 285,715 stock options were granted to Anil Diwan, our Chairman and President under an employment agreement. Of these options, 95,238 were vested immediately and are exercisable from September 2005 until September, 2015, and the remaining options vested annually on January 1, 2007 and January 1, 2008 in two equal amounts. | ||||||||||||||||
In September 2005, 142,857 stock options were granted to Leo Ehrlich, our former CFO under an employment agreement. Of these options, 71,429 were vested immediately and are exercisable from September 2005 until September 2015, and the remaining options vest annually in two equal amounts. On May 16, 2007, Leo Ehrlich resigned as the Company’s Chief Financial Officer. At time of his resignation 107,143 options were vested and are exercisable from September 2005 until September 2015. The remaining options were forfeited. | ||||||||||||||||
The Company has accounted for these options granted to officers under the provisions of paragraph 718-10-30 of the FASB Accounting Standards Codification” and after giving effect to the 3.5 to 1 reverse split of September 9, 2013. Based on fair market value of these options, $7,044 was recognized as stock based compensation expense for the years ended June 30, 2009. For the three months ended September 30, 2014 and 2013, the Company did not record any compensation expense related to these options. | ||||||||||||||||
The following table presents the combined activity of stock options issued for the reporting periods ended September 30, 2014 as follows: | ||||||||||||||||
Stock Options | Number of | Weighted | Weighted | Aggregate | ||||||||||||
Shares | Average | Average | Intrinsic | |||||||||||||
Exercise Price | Remaining | Value ($) | ||||||||||||||
per share ($) | Contractual | |||||||||||||||
Term (years) | ||||||||||||||||
Outstanding at June 30, 2014 | 535,715 | 0.35 | 1.23 | 2,094,643 | ||||||||||||
Granted | - | - | - | - | ||||||||||||
Exercised | - | - | - | - | ||||||||||||
Expired | - | - | - | - | ||||||||||||
Canceled | - | - | - | - | ||||||||||||
Outstanding at September 30,2014 | 535,715 | 0.35 | 0.98 | 1,451,780 | ||||||||||||
As of September 30, 2014 there was no unrecognized compensation cost. | ||||||||||||||||
Stock Warrants | ||||||||||||||||
Stock Warrants | Number of | Weighted | Weighted | Aggregate | ||||||||||||
Shares | Average | Average | Intrinsic Value | |||||||||||||
Exercise | Remaining | ($) | ||||||||||||||
Price | Contractual Term | |||||||||||||||
per share | (years) | |||||||||||||||
($) | ||||||||||||||||
Outstanding at June 30, 2014 | 8,894,355 | 5.01 | 2.78 | 2,278,458 | ||||||||||||
Granted | 17,148 | 4.18 | 3.88 | - | ||||||||||||
Exercised | 1,926,656 | - | - | - | ||||||||||||
Expired | 1,059,616 | - | - | - | ||||||||||||
Canceled | - | - | - | - | ||||||||||||
Outstanding at September 30,2014 | 5,925,231 | 5.15 | 3.86 | 113,571 | ||||||||||||
Of the above warrants, 277,143 expire in fiscal year ending June 30, 2015; and 68,571 expire in fiscal year ended June 30, 2016; 68,571 expire in fiscal year ending June 30, 2017; 127,487 in fiscal year ending June 30,2018; 5,383,460 in fiscal year ending June 30, 2019. | ||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 12 - Commitments and Contingencies |
Operating Lease | |
The Company’s principal executive offices are located at 135 Wood Street, West Haven, Connecticut, and include approximately 7,000 square feet of office and laboratory space at a base monthly rent of $8,695. The term of lease expired on February 28, 2011 and is now on a month-by-month basis. | |
Total rent expense at 135 Wood Street, West Haven, Connecticut amounted to $26,085 and $26,085 for the three months ended September 30, 2014 and 2013, respectively. | |
On February 11, 2013, the Company entered into a binding Memorandum of Understanding (“MOU”) with Inno-Haven, LLC, a Connecticut Limited Liability Company (“Inno-Haven”), to lease for a four-year term a 18,000 square foot building located at 1 Controls Drive, Shelton, Connecticut (the “Leased Premises”), and for Inno-Haven to initiate renovation of the facility at the Company’s direction. The Company has filled out and completed such renovations as it determined were necessary for its specific use as a laboratory and GMP clean room drug manufacturing. Inno-Haven is controlled by Anil Diwan, the Company’s founder, President and Chairman and controlling shareholder of TheraCour Pharma, Inc., the Company’s principal shareholder (“TheraCour”). The MOU is subject to a definitive lease agreement (the “Lease Agreement”) to be executed upon final determination of the cost of the laboratory and GMP clean room, and which would contain definitive terms regarding rent, taxes, utilities, maintenance and other, similar items. Pursuant to the MOU, the Company has agreed to provide up to $2,000,000 in cash collateral for sums borrowed by Inno-Haven (collectively, the “Loans”) to complete the build-out and renovation of the Leased Premises for the benefit of the Company. The Company agreed to file a registration statement for shares of its restricted Common Stock, provided by TheraCour Pharma, Inc., as additional collateral for any or all of the Loans (the “Registrable Shares”). The Company shall file a registration statement within ninety (90) days of a closing of a Loan (a “Closing”) to cover such Registrable Shares and use its best efforts to have such registration statement declared effective no later than one hundred eighty (180) days following the Closing, and keep such registration statement effective until the termination of the respective collateral agreement, upon request to do so by Inno-Haven. The MOU further provides that, so long as there is no breach of the Lease Agreement by the Company, any distribution of the collateral in accordance with a Loan will first be made from the proceeds of life insurance policies (if applicable), then from the proceeds of the sale of the Registrable Shares, and then, should there be any balance still owing to the lender, from the cash collateral. | |
On February 11, 2013, pursuant to the provisions of the MOU, the Company transferred $1,000,000 as cash collateral (the “Cash Collateral”) and agreed to register a number of shares of the Company’s Common Stock, which shares were provided by TheraCour Pharma, Inc., equal to $1,000,000 (the “Collateral Shares”) as collateral pursuant to a Loan and Security Agreement entered into between Inno-Haven and a non-affiliated lender (the “Loan Agreement”) for a loan in the principal amount of $2,000,000. On September 17, 2013, The Company transferred the remaining $1,000,000 cash collateral to Inno-Haven. The value of the Collateral Shares shall be determined every three months and, in the event that the current number of shares of the Common Stock is less than $1,000,000, Inno-Haven may deposit, and the Company shall register, additional shares to equal the aforesaid $1,000,000. Alternatively, Inno-Haven may deposit cash equal to the difference between $1,000,000 and the value of the Collateral Shares. Moreover, Inno-Haven is required to obtain a life insurance policy to insure the life of Dr. Diwan in the amount of $2,000,000. If Dr. Diwan dies during the term of the Loan Agreement, the lender shall have the option to demand payment of the balance of the loan, but, shall be repaid first from the proceeds of any life insurance policy (if applicable), then from the proceeds of the sale of the Collateral Shares, and then, should there be any balance still owing to the lender, from the Cash Collateral. As of September 30, 2014, the Company has utilized approximately $4.5 million for specific fixtures and improvements it required for the new laboratory and cGMP facilities. | |
No lease agreement has been perfected with Inno-Haven to date. The Company engaged external consultants to help determine whether to lease this facility or to purchase it outright from Inno-Haven. Subsequently, the Company’s Board of Directors has authorized the acquisition of 1 Controls Drive from Inno-Haven in an amount equal to its costs in acquiring and fitting out 1 Controls Drive on the Company’s behalf. | |
Total rent expense paid to Inno-Haven during this period amounted to $-0- for the Three months ended September 30, 2014 and $-0- since February 11, 2013. | |
Legal Proceedings | |
On or about January 18, 2012, the Nevada Agency and Transfer Company, as agent for service of process for the Company in Nevada, was served with a Summons and Complaint in the case entitled Yidam, Ltd. v. Eugene Seymour, Anil Diwan, and NanoViricides, Inc. (Case No. A-12-654437-B) answerable in the Eighth Judicial District Court of the State of Nevada – Clark County (“Court”). The Complaint seeks to compel inspection of the Company’s books and records. On or about February 14, 2012 we filed a Motion to Dismiss the Complaint for failure to state a claim upon which relief can be granted. The Complaint further seeks unspecified “injunctive relief” in furtherance of the demand for inspection to which it is not entitled. The Complaint by a holder of less than 1 percent of the common stock of the Company seeks to, inter alia, inspect documents and records of the company to which it is not entitled and in a form and manner the Company argues is not authorized by statute. Management believes that this lawsuit has no merit or basis and intends to vigorously defend it. Monetary damages have not been claimed and as a result no accrual has been made in relation to this litigation. On April 9, 2012, the Court dismissed the Complaint for failure to state a Claim for which relief could be granted. | |
On or about April 13, 2012, the Nevada Agency and Transfer Company, as agent for service of process for the Company in Nevada, was served with a Summons and Complaint in the case entitled Yidam, Ltd. v. Eugene Seymour, Anil Diwan, and NanoViricides, Inc. (Case No. A-12-659535-B) answerable in the Eighth Judicial District Court of the State of Nevada – Clark County (“Court”). The Complaint seeks to compel inspection of the Company’s books and records. On or about May 2, 2012, the Company filed a Demand for Security of Costs. Upon filing of the Demand, proceedings relative to the Company are stayed pending posting of the demanded security (or plaintiff engages in motion practice about the Demand). The Company may seek dismissal of the complaint if plaintiff has not posted the demanded security (or engaged the court). The Complaint further seeks unspecified “injunctive relief” in furtherance of the demand for inspection to which the Company believes it is not entitled. The Complaint, by a holder of less than 1 percent of the common stock of the Company, seeks to, inter alia, inspect documents and records of the company to which it is not entitled and in a form and manner the Company argues is not authorized by statute. On or about July 18, 2012, the Plaintiff moved to amend its answer. On or about August 8, 2012, we filed our opposition to Plaintiff’s Motion to Amend and a Motion to Dismiss the Complaint for failure to state a claim upon which relief can be granted. On or about September 13, 2012 the court granted the Plaintiff’s Motion to Amend. On or about September 17, 2012 the Plaintiff served its “Second Amended Shareholder Derivative Complaint” upon our Counsel in Nevada. As in the prior two complaints that this Plaintiff has filed in this action, the Second Amended Complaint sought to compel inspection of the Company’s books and records, sought injunctive relief, an accounting and alleges breach of Fiduciary by Dr. Seymour and Dr. Diwan. On or about October 11, 2012, we filed a Motion to Dismiss the Second Amended Complaint for failure to state a claim upon which relief can be granted. On or about December 4, 2012, the Court granted the Company’s Motion to Dismiss with respect to Dr. Seymour and Dr. Diwan and ordered the case dismissed as to all claims but the Plaintiff’s request to compel documents required to be maintained by the Company’s registered agent in Nevada pursuant to NRS 78.105. On or about December 26, 2012, the Company provided the Plaintiff with each of the documents to which it is entitled. Management believes that the Plaintiff does not have a legal or good faith basis for inspection or copying of its shareholder’s list and intends to vigorously defend the production thereof. In May, 2013, the Plaintiff filed a motion for permission to file a third amended complaint. The Company subsequently filed a motion to dismiss and for Summary Judgment. The Court denied the Motion to Dismiss and for Summary Judgment and ordered the Plaintiff to file its Third Amended Complaint. On or about July 15, 2013 the Company Petitioned the Nevada Supreme Court for a Writ of Prohibition or Mandamus reversing the trial Court’s denial of Summary Judgment. Thereafter, on or about September 20, 2013, the Nevada Supreme Court denied the Company’s Writ Petition. The Company filed its answer to the Third Amended Complaint, which contains only one cause of action which is identical to the sole cause of action which was not dismissed from the Second Amended Complaint. Specifically, the Third Amended Complaint seeks only to compel production of books and records required to be maintained by the Company’s Registered Agent pursuant to NRS 78.105 Management believes that the Company’s registered Agent has provided the Plaintiff with all documents to which it is entitled pursuant to NRS 78.105 and that this lawsuit has no merit or basis. The Company has vigorously defended this lawsuit. Following cross-motions for summary judgment and certain discovery as limited by the court, the parties engaged in a settlement conference in March 2014, at which time an agreement was reached resolving the parties’ disputes in this matter. Pursuant to the Settlement Agreement, the Company deposited $150,000 with its attorney to be released to reimburse the Plaintiff for a portion of its litigation expenses. However, disagreements later arose regarding the negotiated resolution, precipitating, among other things, the Company’s application for court intervention and repeated status hearings. Final settlement documents were fully exchanged on September 11, 2014. Upon the Plaintiff’s compliance with the terms of the Settlement Agreement, the Company authorized counsel to release the reimbursement amount to the Plaintiff. An order dismissing the foregoing lawsuit was entered on September 16, 2014. | |
On or about July 15, 2013 the same Plaintiff that had filed the repetitive complaints in the Nevada action as set forth in the preceding paragraphs (Yidam, Ltd. v. Eugene Seymour, Anil Diwan, and NanoViricides, Inc.) filed a Shareholder Derivative complaint with the United States District Court for the District of Colorado. The Plaintiff asserted the action is a shareholder derivative action and the Company is solely a nominal defendant. The Company maintains that it, as well as the individual defendants, Messrs. Seymour and Diwan, have not been served in the action. However, a default was filed against the Company, which has been vacated. The Complaint alleges that the Company has failed to deliver information requested by the Plaintiff, the identical information the Plaintiff is seeking inspection of in the Nevada action, and that the individual defendants, Messrs. Seymour and Diwan, breached their fiduciary duties to the Company and caused it financial harm. The Plaintiff demanded an order to inspect the Company’s records, an order revoking Messrs. Diwan and Seymour from the Board of Directors, equitable relief, and consequential and punitive damages. The Company believes these claims had no merit and defended this action vigorously. The Company moved the District Court to dismiss the action in its entirety. No facts have been submitted to support the claimed vague consequential and punitive damages. Management has determined that such claims are specious and not relevant to the Company and no accrual has been made in relation to this litigation. The action was settled and dismissed with prejudice pursuant to the Settlement Agreement in the above referenced Nevada action. Similarly, upon the Plaintiff’s compliance with the terms of the Settlement Agreement, the Company authorized counsel to release the reimbursement amount to the Plaintiff. An order dismissing the foregoing lawsuit was entered on September 16, 2014. | |
There are no other legal proceedings against the Company to the best of the Company’s knowledge as of the date hereof and to the Company’s knowledge, no action, suit or proceeding has been threatened against the Company. | |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 13 - Subsequent Events |
Management has evaluated all events that occurred after the balance sheet date through the date when these financial statements were issued to determine if they must be reported. The Management of the Company has determined that the following reportable subsequent event is required to be disclosed: | |
On October 31, 2014, the Company filed a Registration Statement on Form S-3 (the “Registration Statement”) with the Securities and Exchange Commission (the “Commission”). The Registration Statement is a “universal” shelf registration statement for the registration of up to $50 million of our common stock, preferred stock, warrants, debt securities and units comprised of any or all of such securities. If and when the Registration Statement is declared effective, the Company will be able tooffer and sell, from time to time, up to $50 million of securities, including shares of the Company’s common stock and preferred stock, debt securities, warrants, and units, the terms of which will be described in prospectus supplements filed with the Commission, as applicable. Such securities may not be sold, nor may offers to buy be accepted, until the Registration Statement is declared effective by the Commission | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |||||
Sep. 30, 2014 | ||||||
Accounting Policies [Abstract] | ||||||
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation – Interim Financial Information | |||||
The accompanying unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission for Interim Reporting. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, considered necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. The accompanying financial statements and the information included under the heading “Management’s Discussion and Analysis or Plan of Operation” should be read in conjunction with our company’s audited financial statements and related notes included in our company’s form 10-K/A for the fiscal year ended June 30, 2014 filed with the SEC. | ||||||
For a summary of significant accounting policies (which have not changed from June 30, 2014), see the Company’s Annual Report on Form 10-K/A for the fiscal year ended June 30, 2014. | ||||||
Earnings Per Share, Policy [Policy Text Block] | Net Income (Loss) per Common Share | |||||
Net income (loss) per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through stock options and warrants. | ||||||
The following table shows the number of potentially outstanding dilutive common shares excluded from the diluted net income (loss) per common share calculation as they were anti-dilutive: | ||||||
Potentially Outstanding Dilutive Common Shares | ||||||
For the | For the Fiscal | |||||
Three Months | Year | |||||
Ended | Ended | |||||
September 30, 2014 | September 30, 2013 | |||||
Stock options | ||||||
Stock options issued on September 23, 2005 to the founders of the Company upon formation with an exercise price of $0.35 per share expiring ten (10) years from the date of issuance | 535,715 | 535,715 | ||||
Sub-total: stock options | 535,715 | 535,715 | ||||
Warrants | ||||||
Warrants issued from June 15,2006 to October 1, 2007 to investors in connection with the Company’s equity financing with an exercise price of $3.50 per share expiring August 15, 2014 | - | 513,143 | ||||
Warrants issued on August 22, 2008 to investors in connection with the Company’s equity financing with an exercise price of $3.50 per share expiring August 15, 2014 | - | 466,486 | ||||
Warrants issued from June 15, 2008 through May 15, 2010 to SAB for services with an exercise price from $2.45 to $9.38 per share expiring February 28, 2015 | 211,429 | 211,429 | ||||
Warrants issued on June 30, 2009 to investors with an exercise price of $3.50 per share expiring August 15, 2014 | - | 568,771 | ||||
Warrants issued on September 30, 2009 to investors with an exercise price of $3.50 per share expiring August 15, 2014 | - | 1,437,871 | ||||
Warrants issued from August 16, 2010 to May 15, 2011 to SAB for services with an exercise price ranging from $5.15 to $6.34 per share expiring fiscal year ending June 30, 2015 | 65,714 | 65,714 | ||||
Warrants issued from August 16, 2011 to May 15, 2012 to SAB for services with an exercise price ranging from $2.80 to $4.94 per share expiring fiscal year ending June 30, 2016 | 68,571 | 68,571 | ||||
Warrants issued from August 16, 2012 to September 30, 2013 to SAB for services with an exercise price of $5.17 per share expiring fiscal year ending June 30, 2017 | 68,571 | 68,571 | ||||
Warrants issued on September 10, 2013 to investors with an exercise price of $5.25 per share expiring September 10, 2018 less Warrants exercised through September 30, 2014 | 2,810,071 | 2,910,071 | ||||
Warrants issued on August 15, 2013 to SAB for services with an exercise price of $5.17 per share expiring on August 15, 2017 | 17,143 | 17,143 | ||||
Warrants issued on September 10, 2013 to Placement Agents as commissions with an exercise price of $5.25 per share expiring September 10, 2018 | 58,910 | 58,910 | ||||
Warrants issued on November 15, 2013 to SAB for services with an exercise price of $6.56 per share expiring on November 15, 2017 | 17,143 | |||||
Warrants issued on January 24, 2014 to investors with an exercise price of $6.05 per share expiring January 24, 2019 | 2,479,935 | |||||
Warrants issued on January 24, 2014 to investors with an exercise price of $5.25 per share expiring January 24, 2019 | 76,306 | |||||
Warrants issued on February 14, 2014 to SAB for services with an exercise price of $3.98 per share expiring on February 14, 2018 | 17,143 | |||||
Warrants issued on May 15, 2014 to SAB for services with an exercise price of $4.11 per share expiring on May 15, 2018 | 17148 | |||||
Warrants issued on August 15, 2014 to SAB for services with an exercise price of $5.02 per share expiring on August 15, 2018 | 17,148 | |||||
Sub-total: warrants | 5,925,231 | 6,386,680 | ||||
Total potentially outstanding dilutive common shares | 6,460,946 | 6,922,395 | ||||
In addition the Company has issued Convertible Debentures, to investors. A portion of the interest required to be paid on the Debentures is payable in restricted shares of the Company’s $0.001 par value common stock or in warrants, according to the terms of the Debenture. | ||||||
At September 30, 2014 the estimated number of potentially dilutive shares of the Company’s common stock into which these Debentures can be converted is 1,960,785 based upon the Selling price of the Company’s common stock on September 30, 2014 of $3.06. At September 30, 2014 the estimated number of potentially dilutive shares of the Company’s common stock arising from the payment of a portion of the future interest to be paid on the debentures in common shares or warrants is 1,142,858. | ||||||
The Company has also issued 3,387,795 of $0.001 par value Convertible Preferred A shares to investors and others. Only in the event of a “change of control” of the Company, each Series A preferred share is convertible to 3.5 shares of its new common stock. A “change of control” is defined as an event in which the Company’s shareholders become 60% or less owners of a new entity as a result of a change of ownership, merger or acquisition. In the absence of a change of control event, the Series A stock is not convertible into Common Stock, and does not carry any dividend rights or any other financial effects. At September 30, 2014, the estimated number of potentially dilutive shares of the Company’s common stock into which these Series A Preferred shares can be converted into, is 11,857,283. | ||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements | |||||
In June 2014, the FASB issued ASU No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. | ||||||
The amendments in this Update remove the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. | ||||||
The amendments also clarify that the guidance in Topic 275, Risks and Uncertainties, is applicable to entities that have not commenced planned principal operations. | ||||||
Finally, the amendments remove paragraph 810-10-15-16. Paragraph 810-10-15-16 states that a development stage entity does not meet the condition in paragraph 810-10-15-14(a) to be a variable interest entity if (1) the entity can demonstrate that the equity invested in the legal entity is sufficient to permit it to finance the activities that it is currently engaged in and (2) the entity’s governing documents and contractual arrangements allow additional equity investments. | ||||||
The amendments in this Update also eliminate an exception provided to development stage entities in Topic 810, Consolidation, for determining whether an entity is a variable interest entity on the basis of the amount of investment equity that is at risk. The amendments to eliminate that exception simplify U.S. GAAP by reducing avoidable complexity in existing accounting literature and improve the relevance of information provided to financial statement users by requiring the application of the same consolidation guidance by all reporting entities. The elimination of the exception may change the consolidation analysis, consolidation decision, and disclosure requirements for a reporting entity that has an interest in an entity in the development stage. | ||||||
The amendments related to the elimination of inception-to-date information and the other remaining disclosure requirements of Topic 915 should be applied retrospectively except for the clarification to Topic 275, which shall be applied prospectively. For public business entities, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. | ||||||
The company has limited operations and is considered to be in the development stage. The Company has elected to early adopt Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements. The adoption of this ASU allows the company to remove the inception to date information and all references to development stage. The Company adopted this guidance from June 30, 2014 | ||||||
In June 2014, the FASB issued the FASB Accounting Standards Update No. 2014-12 “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” (“ASU 2014-12”). | ||||||
The amendments clarify the proper method of accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The Update requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. 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. | ||||||
The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of the ASU would not have a material effect on the accompanying financial statements. | ||||||
In August 2014, the FASB issued the FASB Accounting Standards Update No. 2014-15 “Presentation of Financial Statements— Going Concern (Subtopic 205-40) (Topic 718): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”). | ||||||
The Update provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. | ||||||
This Update is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. | ||||||
The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Earlier adoption is permitted. | ||||||
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements. | ||||||
Restatement_of_Previously_Issu1
Restatement of Previously Issued Financial Statements (Tables) | 3 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | Balance Sheets | ||||||||||
September 30, 2014 | Net Adjustment | September 30,2014 | |||||||||
(Unaudited) | (Unaudited) | ||||||||||
Original | Restated | ||||||||||
ASSETS | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash and cash equivalents | $ | 41,120,652 | $ | 41,120,652 | |||||||
Prepaid expenses | 59,099 | 59,099 | |||||||||
Prepaid expenses - related parties | 424,402 | 424,402 | |||||||||
Other current assets | - | - | |||||||||
Total Current Assets | 41,604,153 | - | 41,604,153 | ||||||||
PROPERTY AND EQUIPMENT | |||||||||||
Property and equipment | 7,299,254 | 7,299,254 | |||||||||
Accumulated depreciation | -1,291,318 | -1,291,318 | |||||||||
Property and equipment, net | 6,007,936 | 6,007,936 | |||||||||
TRADEMARK | |||||||||||
Trademark | 458,954 | 458,954 | |||||||||
Accumulated amortization | -52,889 | -52,889 | |||||||||
Trademark, net | 406,065 | 406,065 | |||||||||
SECURITY DEPOSIT | 1,000,000 | 1,000,000 | |||||||||
Total Assets | $ | 49,018,154 | $ | 49,018,154 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Accounts payable | $ | 155,978 | $ | 155,978 | |||||||
Accounts payable – related parties | 331,448 | 331,448 | |||||||||
Accrued expenses | 265,463 | 265,463 | |||||||||
Total Current Liabilities | 752,889 | 752,889 | |||||||||
Debentures payable - Series B Net of discount | 4,195,296 | 4,195,296 | |||||||||
Derivative Liability - Series B Debentures | 3,785,385 | 3,785,385 | |||||||||
Derivative Liability - Warrants | - | 4,558,581 | 4,558,581 | ||||||||
Debentures Payable - Series C, Net of discount | 3,457,244 | -1,373,479 | 2,083,765 | ||||||||
Derivative Liability - Series C Debentures | - | 1,453,122 | 1,453,122 | ||||||||
Total Long Term Liabilities | 11,437,925 | 4,638,224 | 16,076,149 | ||||||||
Total Liabilities | 12,190,814 | 16,829,038 | |||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||
STOCKHOLDERS' EQUITY: | |||||||||||
Series A Convertible Preferred stock, $0.001 par value, 4,000,000 shares designated, 3,387,795 and 3,193,079 shares issued and outstanding, respectively | 3,389 | 3,389 | |||||||||
Series B Convertible Preferred stock, $0.001 par value, 10,000,000 shares designated, 0, and 0 shares issued and outstanding, respectively | - | - | |||||||||
Series C Convertible Preferred stock, $0.001 par value, 10,000,000 shares designated, 0 and 0 shares issued and outstanding, respectively | - | - | |||||||||
Common stock, $0.001 par value; 85,714,285 shares authorized; 56,535,135 and 54,620,993 shares issued and outstanding, respectively | 56,535 | 56,535 | |||||||||
Additional paid-in capital | 89,412,744 | -6,233,849 | 83,178,895 | ||||||||
Accumulated deficit | -52,645,328 | 1,595,625 | -51,049,703 | ||||||||
Total Stockholders' Equity | 36,827,340 | -4,638,224 | 32,189,116 | ||||||||
Total Liabilities and Stockholders' Equity | $ | 49,018,154 | $ | 49,018,154 | |||||||
Balance Sheets | |||||||||||
September 30, 2013 | September 30,2013 | ||||||||||
(Unaudited) | (Unaudited) | ||||||||||
As Original Reported | Net Adjustment | As Restated | |||||||||
ASSETS | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash and cash equivalents | $ | 19,200,882 | $ | $ | 19,200,882 | ||||||
Prepaid expenses | 805,145 | 805,145 | |||||||||
Total Current Assets | 20,006,027 | 20,006,027 | |||||||||
PROPERTY AND EQUIPMENT | |||||||||||
Property and equipment | 3,779,636 | 3,779,636 | |||||||||
Accumulated depreciation | -1,089,471 | -1,089,471 | |||||||||
Property and equipment, net | 2,690,165 | 2,690,165 | |||||||||
TRADEMARK | |||||||||||
Trademark | 458,954 | 458,954 | |||||||||
Accumulated amortization | -44,114 | -44,114 | |||||||||
Trademark, net | 414,840 | 414,840 | |||||||||
SECURITY DEPOSIT | 2,000,000 | 2,000,000 | |||||||||
Total Assets | $ | 25,111,032 | $ | 25,111,032 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Accounts payable | $ | 408,058 | $ | 408,058 | |||||||
Accounts payable – related parties | 1,139,825 | 1,139,825 | |||||||||
Accrued expenses | 319,612 | 319,612 | |||||||||
Total Current Liabilities | 1,867,495 | 1,867,495 | |||||||||
Debentures payable | 3,603,554 | 3,603,554 | |||||||||
Derivative liability - Debenture | 7,888,736 | 7,888,736 | |||||||||
Derivative liability - Warrants | - | 3,443,717 | 3,443,717 | ||||||||
Total Long Term Liabilities | 11,492,290 | 3,443,717 | 14,936,007 | ||||||||
Total Liabilities | 13,359,785 | 3,443,717 | 16,803,502 | ||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||
STOCKHOLDERS' EQUITY: | |||||||||||
Series A Convertible Preferred stock, $0.001 par value, 2,990,000 shares designated, 2,990,000 shares issued and outstanding | 2,990 | 2,990 | |||||||||
Series B Convertible Preferred stock, $0.001 par value, 10,000,000 shares designated, 0, and 0 shares issued and outstanding, respectively | - | - | |||||||||
Series C Convertible Preferred stock, $0.001 par value, 10,000,000 shares designated, 0 and 0 shares issued and outstanding, respectively | - | - | |||||||||
Common stock, $0.001 par value; 85,714,285 shares authorized; 50,028,701 and 47,026,173 shares issued and outstanding, respectively | 50,029 | 50,029 | |||||||||
Additional paid-in capital | 56,270,792 | -3,154,975 | 53,115,817 | ||||||||
Deficit accumulated during the development stage | -44,572,564 | -288,742 | -44,861,306 | ||||||||
Total Stockholders' Equity | 11,751,247 | -3,443,717 | 8,307,530 | ||||||||
Total Liabilities and Stockholders' Equity | $ | 25,111,032 | $ | $ | 25,111,032 | ||||||
Statements of Operations | |||||||||||
(Unaudited) | |||||||||||
For the Three Months | For the Three Months | ||||||||||
Ended | Ended | ||||||||||
September 30, 2014 | Net Adjustments | 30-Sep-14 | |||||||||
(Unaudited) | (Unaudited ) | ||||||||||
Original | Restated | ||||||||||
OPERATING EXPENSES | |||||||||||
Research and development | $ | 811,107 | $ | 811,107 | |||||||
Refund credit research and development costs | - | - | |||||||||
General and administrative | 876,026 | 876,026 | |||||||||
Total operating expenses | 1,687,133 | 1,687,133 | |||||||||
LOSS FROM OPERATIONS | -1,687,133 | -1,687,133 | |||||||||
OTHER INCOME (EXPENSE): | |||||||||||
Interest income, net | 39,323 | 39,323 | |||||||||
Interest expense | -245,000 | -245,000 | |||||||||
Discount on convertible debentures | -260,578 | -12,640 | -273,218 | ||||||||
Beneficial conversion feature of convertible debentures | - | - | |||||||||
Change in fair market value of derivatives | 1,914,318 | 1,103,407 | 3,017,725 | ||||||||
Other income (expense), net | 1,448,063 | 1,090,767 | 2,538,830 | ||||||||
INCOME (LOSS) BEFORE INCOME TAXES | -239,070 | 1,090,767 | 851,697 | ||||||||
INCOME TAX PROVISION | - | - | |||||||||
NET INCOME (LOSS) | $ | -239,070 | 1,090,767 | $ | 851,697 | ||||||
NET INCOME (LOSS) PER COMMON SHARE | |||||||||||
- BASIC AND DILUTED: | $ | -0.004 | $ | 0.015 | |||||||
Weighted average common shares outstanding | |||||||||||
- basic and diluted | 55,576,200 | 55,576,200 | |||||||||
Statements of Operations | |||||||||||
For the Three Months | For the Three Months | ||||||||||
Ended | Ended | ||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||
(Unaudited) | (Unaudited) | ||||||||||
As Original Reported | Net Adjustment | As Restated | |||||||||
OPERATING EXPENSES | |||||||||||
Research and development | $ | 1,174,221 | $ | 1,174,221 | |||||||
Refund credit research and development costs | - | - | |||||||||
General and administrative | 714,561 | 714,561 | |||||||||
Total operating expenses | 1,888,782 | - | 1,888,782 | ||||||||
LOSS FROM OPERATIONS | -1,888,782 | - | -1,888,782 | ||||||||
OTHER INCOME (EXPENSE): | |||||||||||
Interest income, net | 9,560 | 9,560 | |||||||||
Interest expense | -120,986 | -120,986 | |||||||||
Discount on convertible debentures | -135,481 | -135,481 | |||||||||
Beneficial conversion feature of convertible debentures | - | - | |||||||||
Change in fair market value of derivatives | -4,137,091 | -288,742 | -4,425,833 | ||||||||
Other income (expense), net | -4,383,998 | -288,742 | -4,672,740 | ||||||||
LOSS BEFORE INCOME TAXES | -6,272,780 | -288,742 | -6,561,522 | ||||||||
INCOME TAX PROVISION | - | - | - | ||||||||
NET LOSS | $ | -6,272,780 | -288,742 | $ | -6,561,522 | ||||||
NET LOSS PER COMMON SHARE | |||||||||||
- BASIC AND DILUTED: | $ | -0.13 | $ | -0.14 | |||||||
Weighted average common shares outstanding | |||||||||||
- basic and diluted | 47,672,029 | 47,672,029 | |||||||||
Statements of Cash Flows | |||||||||||
(Unaudited) | |||||||||||
For the Three Months | Fot the Three Months | ||||||||||
Ended | Ended | ||||||||||
September 30, 2014 | Net Adjustment | Septembr 30,2014 | |||||||||
Original | Restated | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net loss | $ | -239,070 | 1,090,767 | $ | 851,697 | ||||||
Adjustments to reconcile net loss to net cash used in operating activities | |||||||||||
Preferred shares issued for license | |||||||||||
Series A Preferred shares issued as compensation | 72,980 | 72,980 | |||||||||
Common shares and warrants issued for services | 38,250 | 38,250 | |||||||||
Common shares issued for interest | |||||||||||
Warrants granted to scientific advisory board | 22,292 | 22,292 | |||||||||
Amortization of deferred compensation | |||||||||||
Depreciation | 51,332 | 51,332 | |||||||||
Amortization | 2,193 | 2,193 | |||||||||
Change in fair value of derivative liability | -1,914,318 | -1,103,407 | -3,017,725 | ||||||||
Amortization of deferred financing expenses | - | ||||||||||
Discount convertible debentures | 260,578 | 12,640 | 273,218 | ||||||||
Beneficial conversion feature of convertible debentures | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Prepaid expenses | 48,990 | 48,990 | |||||||||
Prepaid expenses - Related parties | 284,819 | 284,819 | |||||||||
Other current assets | 150,000 | 150,000 | |||||||||
Deferred expenses | |||||||||||
Accounts payable - trade | -220,468 | -220,468 | |||||||||
Accounts payable - related parties | -427,228 | -427,228 | |||||||||
Accrued expenses | 173,625 | 173,625 | |||||||||
Accrued payroll to officers and related payroll tax expense | |||||||||||
NET CASH USED IN OPERATING ACTIVITIES | -1,696,025 | - | -1,696,025 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Security deposit | - | ||||||||||
Purchase of property and equipment | -562,512 | -561,512 | |||||||||
Purchase of trademark | - | - | |||||||||
NET CASH USED IN INVESTING ACTIVITIES | -562,512 | -562,512 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from issuance of convertible debentures | |||||||||||
Proceeds from issuance of Convertible Preferred Series B stock, net | |||||||||||
Proceeds from issuance of Convertible Preferred Series C stock, net | |||||||||||
Proceeds from issuance of common stock and warrants in connection with private placements of common stock, net of issuance costs | |||||||||||
Proceeds from exercise of stock options | |||||||||||
Proceeds from exercise of warrants | 6,682,297 | 6,682,297 | |||||||||
Collection of stock subscriptions received | |||||||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 6,682,297 | 6,682,297 | |||||||||
NET CHANGE IN CASH | 4,423,760 | - | 4,693,131 | ||||||||
Cash at beginning of period | 36,696,892 | 36,696,892 | |||||||||
Cash at end of period | $ | 41,120,652 | $ | 41,120,652 | |||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | |||||||||||
Interest paid | $ | - | $ | - | |||||||
Income tax paid | $ | - | $ | - | |||||||
NON CASH FINANCING AND INVESTING ACTIVITIES: | |||||||||||
Common stock issued for services rendered | $ | 38,250 | 38,250.00 | ||||||||
Common stock for interest | |||||||||||
Preferred stock issued as compensation | 72,980 | 72,980.00 | |||||||||
Series A Preferred stock issued as discount on Debentures | 1,645,606 | 1,645,606.00 | |||||||||
Stock options issued to the officers as compensation | |||||||||||
Stock warrants granted to scientific advisory board | 22,292 | 22,292.00 | |||||||||
Statements of Cash Flows | |||||||||||
For the Three Months | For the Three Months | ||||||||||
Ended | Ended | ||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||
(Unaudited) | (Unaudited) | ||||||||||
As Original Reported | Net Adjustment | As Restated | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net loss | $ | -6,272,780 | $ | -288,742 | $ | -6,561,522 | |||||
Adjustments to reconcile net loss to net cash used in operating activities | |||||||||||
Common shares and warrants issued for services | 32,250 | 32,250 | |||||||||
Warrants granted to scientific advisory board | 106,050 | 106,050 | |||||||||
Depreciation | 52,719 | 52,719 | |||||||||
Amortization | 2,193 | 2,193 | |||||||||
Change in fair value of derivative liability | 4,137,091 | 288,742 | 4,425,833 | ||||||||
Discount convertible debentures | 135,481 | 135,481 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Prepaid expenses | -206,765 | -206,765 | |||||||||
Accounts payable - trade | 144,802 | 144,802 | |||||||||
Accounts payable - related parties | 429,258 | 429,258 | |||||||||
Accrued expenses | 115,253 | 115,253 | |||||||||
NET CASH USED IN OPERATING ACTIVITIES | -1,324,448 | - | -1,324,448 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Security deposit | -1,000,000 | -1,000,000 | |||||||||
Purchase of property and equipment | -2,273,989 | -2,273,989 | |||||||||
NET CASH USED IN INVESTING ACTIVITIES | -3,273,989 | - | -3,273,989 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from issuance of common stock and warrants in connection with private placements of common stock, net of issuance costs | 9,690,450 | 9,690,450 | |||||||||
Proceeds from exercise of warrants | 185,624 | 185,624 | |||||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 9,876,074 | 9,876,074 | |||||||||
NET CHANGE IN CASH | 5,277,637 | 5,277,637 | |||||||||
Cash at beginning of period | 13,923,245 | 13,923,245 | |||||||||
Cash at end of period | $ | 19,200,882 | $ | 19,200,882 | |||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | |||||||||||
Interest paid | $ | - | $ | - | |||||||
Income tax paid | $ | - | $ | - | |||||||
NON CASH FINANCING AND INVESTING ACTIVITIES: | |||||||||||
Common stock issued for services rendered | $ | 32,250 | $ | 32,250 | |||||||
Stock warrants granted to scientific advisory board | $ | 106,050 | $ | 106,050 | |||||||
Stock warrants granted to brokers | $ | 113,696 | $ | 113,696 | |||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | |||||
Sep. 30, 2014 | ||||||
Accounting Policies [Abstract] | ||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following table shows the number of potentially outstanding dilutive common shares excluded from the diluted net income (loss) per common share calculation as they were anti-dilutive: | |||||
Potentially Outstanding Dilutive Common Shares | ||||||
For the | For the Fiscal | |||||
Three Months | Year | |||||
Ended | Ended | |||||
September 30, 2014 | September 30, 2013 | |||||
Stock options | ||||||
Stock options issued on September 23, 2005 to the founders of the Company upon formation with an exercise price of $0.35 per share expiring ten (10) years from the date of issuance | 535,715 | 535,715 | ||||
Sub-total: stock options | 535,715 | 535,715 | ||||
Warrants | ||||||
Warrants issued from June 15,2006 to October 1, 2007 to investors in connection with the Company’s equity financing with an exercise price of $3.50 per share expiring August 15, 2014 | - | 513,143 | ||||
Warrants issued on August 22, 2008 to investors in connection with the Company’s equity financing with an exercise price of $3.50 per share expiring August 15, 2014 | - | 466,486 | ||||
Warrants issued from June 15, 2008 through May 15, 2010 to SAB for services with an exercise price from $2.45 to $9.38 per share expiring February 28, 2015 | 211,429 | 211,429 | ||||
Warrants issued on June 30, 2009 to investors with an exercise price of $3.50 per share expiring August 15, 2014 | - | 568,771 | ||||
Warrants issued on September 30, 2009 to investors with an exercise price of $3.50 per share expiring August 15, 2014 | - | 1,437,871 | ||||
Warrants issued from August 16, 2010 to May 15, 2011 to SAB for services with an exercise price ranging from $5.15 to $6.34 per share expiring fiscal year ending June 30, 2015 | 65,714 | 65,714 | ||||
Warrants issued from August 16, 2011 to May 15, 2012 to SAB for services with an exercise price ranging from $2.80 to $4.94 per share expiring fiscal year ending June 30, 2016 | 68,571 | 68,571 | ||||
Warrants issued from August 16, 2012 to September 30, 2013 to SAB for services with an exercise price of $5.17 per share expiring fiscal year ending June 30, 2017 | 68,571 | 68,571 | ||||
Warrants issued on September 10, 2013 to investors with an exercise price of $5.25 per share expiring September 10, 2018 less Warrants exercised through September 30, 2014 | 2,810,071 | 2,910,071 | ||||
Warrants issued on August 15, 2013 to SAB for services with an exercise price of $5.17 per share expiring on August 15, 2017 | 17,143 | 17,143 | ||||
Warrants issued on September 10, 2013 to Placement Agents as commissions with an exercise price of $5.25 per share expiring September 10, 2018 | 58,910 | 58,910 | ||||
Warrants issued on November 15, 2013 to SAB for services with an exercise price of $6.56 per share expiring on November 15, 2017 | 17,143 | |||||
Warrants issued on January 24, 2014 to investors with an exercise price of $6.05 per share expiring January 24, 2019 | 2,479,935 | |||||
Warrants issued on January 24, 2014 to investors with an exercise price of $5.25 per share expiring January 24, 2019 | 76,306 | |||||
Warrants issued on February 14, 2014 to SAB for services with an exercise price of $3.98 per share expiring on February 14, 2018 | 17,143 | |||||
Warrants issued on May 15, 2014 to SAB for services with an exercise price of $4.11 per share expiring on May 15, 2018 | 17148 | |||||
Warrants issued on August 15, 2014 to SAB for services with an exercise price of $5.02 per share expiring on August 15, 2018 | 17,148 | |||||
Sub-total: warrants | 5,925,231 | 6,386,680 | ||||
Total potentially outstanding dilutive common shares | 6,460,946 | 6,922,395 | ||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Schedule of Related Party Transactions [Table Text Block] | Fixed Assets | |||||||
September 30, 2014 | June 30, 2014 | |||||||
During the reporting period, InnoHaven, LLC, acquired fixed assets on behalf of the Company from third party vendors behalf of the Company at 1 Controls Drive, Shelton, Ct | $ | - | $ | 4,500,000 | ||||
During the reporting Period, Thera Cour Pharma, Inc. acquired fixed assets on behalf of the Company from third party vendors | $ | 110,578 | $ | 528,000 | ||||
Account Payable – Related Party | ||||||||
September 30, 2014 | June 30 , 2014 | |||||||
Pursuant to an Exclusive License Agreement we entered into with TheraCour Pharma, Inc., (TheraCour), the Company was granted exclusive licenses in perpetuity for technologies developed by TheraCour for the virus types: HIV, HCV, Herpes, Asian (bird) flu, Influenza and rabies.. In consideration for obtaining this exclusive license, we agreed: (1) that TheraCour can charge its costs (direct and indirect) plus no more than 30% of direct costs as a Development Fee and such development fees shall be due and payable in periodic installments as billed. (2) we will pay $25,000 per month for usage of lab supplies and chemicals from existing stock held by TheraCour, (3) we will pay $2,000 or actual costs, whichever is higher for other general and administrative expenses incurred by TheraCour on our behalf. Accounts payable due TheraCour Pharma Inc on the reporting date was | $ | 331,448 | $ | 758,676 | ||||
Research and Development Costs Paid to Related Parties | ||||||||
September | September 30, | |||||||
30, 2014 | 2013 | |||||||
Development and other costs charged by and paid to TheraCour Pharma, Inc. pursuant to exclusive License Agreements between TheraCour and the Company for the development of the Company’s drug pipeline. As of September 30, 2014, pursuant to its license agreement, the Company has paid a security advance of $424,402 to and held by TheraCour Pharma, Inc. which is reflected in Prepaid Expenses. No royalties are due TheraCour from the Company’s inception through June 30, 2014. | $ | 769,185 | $ | 924,125 | ||||
Long-Term Debentures Payable – Directors | ||||||||
September 30, 2014 | June 30, 2014 | |||||||
On February 1, 2013, the Company raised $4M from a family investment office and a charitable foundation controlled by Dr. Milton Boniuk through the issuance of our Series B Debentures. The investors purchased unsecured convertible debentures with a 4-year term. The debentures bear an interest rate of 8% p.a., an additional interest payable in restricted common stock of 0.33, 0.33, and 0.34 shares in year 1, 2, and 3 respectively, and an additional interest of 0.33 warrants to be issued in the fourth year, per $1 of principal. The warrants are priced at $3.50 and will be valid for 3 years after issuance. The investors can convert the principal and any accrued interest into common stock at a fixed price of $3.50 per share. The Company can prepay the debentures, in which case the base interest rate shall increase by a 7% prepayment penalty. The Company agreed to use its best efforts to register the interest shares and the shares issuable from the interest warrants under a “shelf” registration statement provided same is available, in accordance with the provisions of the Securities Act. | $ | 4,000,000 | $ | 4,000,000 | ||||
Repayments from inception to date | - | - | ||||||
Remaining balance | 4,000,000 | 4,000,000 | ||||||
Subsequent to the reporting period the Company on July 2, 2014, (the “Closing Date”), the Company accepted a subscription in the amount of $5,000,000 for a 10% Coupon Series C Convertible Debenture (the “Debenture”) from Dr. Milton Boniuk, a member of the Company’s Board of Directors (the “Holder”). The $5,000,000 funding of the Debenture had been received by the Company prior to June 30, 2014, the year end reporting period and the Company has reported the said Debenture in these financial statements under long term liabilities. The Debenture is due on June 30, 2018 (the “Maturity Date”) and is convertible, at the sole option of the Holder, into restricted shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) at the conversion price of $5.25 per share of Common Stock. The Debenture bears interest at the coupon rate of ten percent (10%) per annum, computed on an annual basis of a 365 day year, payable in quarterly installments on March 31, June 30, September 30 and December 31 of each calendar year until the Maturity Date. Interest for the first quarter ending September 30, 2014 has been accrued and will be paid over the remaining life of the Debenture commencing July 1, 2015. | 5,000,000 | 5,000,000 | ||||||
Repayments from inception to date | - | - | ||||||
Remaining balance | 5,000,000 | 5,000,000 | ||||||
$ | 9,000,000 | $ | 9,000,000 | |||||
Concentrations_Tables
Concentrations (Tables) | 3 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Risks and Uncertainties [Abstract] | ||||||||||||||||||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Vendor purchase concentrations for September 30, 2014 and 2013 are as follows: | |||||||||||||||||
Net Purchases | Accounts Payable | |||||||||||||||||
For the three months ended September 30, | As of September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
TheraCour Pharma, Inc | 769,185 | 45.6 | % | 924,126 | 48.9 | % | 331,448 | 68 | % | 1,139,825 | 73.6 | % | ||||||
Kard Scientific, Inc. | - | 0 | % | 247,660 | 13.1 | % | 123,570 | 25.4 | % | 246,963 | 16 | % | ||||||
Total Purchases | 1,687,133 | 100 | % | 1,888,782 | 100 | % | 487,426 | 100 | % | 1,547,883 | 100 | % | ||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment [Table Text Block] | Property and equipment, stated at cost, less accumulated depreciation consisted of the following: | |||||||
September 30, | June 30, | |||||||
2014 | 2014 | |||||||
GMP Facility | $ | 3,551,713 | $ | 3,099,780 | ||||
Office Equipment | 30,048 | 30,048 | ||||||
Furniture and Fixtures | 1,400 | 1,400 | ||||||
Lab Equipment | 3,716,093 | 3,605,514 | ||||||
Total Property and Equipment | 7,299,254 | 6,736,742 | ||||||
Less Accumulated Depreciation | -1,291,318 | -1,239,986 | ||||||
Property and Equipment, Net | $ | 6,007,936 | $ | 5,496,756 | ||||
Trademark_and_Patents_Tables
Trademark and Patents (Tables) | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Trademark and patents, stated at cost, less accumulated amortization consisted of the following: | |||||||
September 30, | June 30, | |||||||
2014 | 2014 | |||||||
Trademarks and Patents | $ | 458,954 | $ | 458,954 | ||||
Less Accumulated Amortization | -52,889 | -50,696 | ||||||
Trademarks and Patents, Net | $ | 406,065 | $ | 408,258 | ||||
Prepaid_Expenses_Tables
Prepaid Expenses (Tables) | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Prepaid Expenses [Abstract] | ||||||||
Schedule Of Prepaid Expenses [Table Text Block] | Prepaid Expenses are summarized as follows: | |||||||
September 30, | June 30, | |||||||
2014 | 2014 | |||||||
TheraCour Pharma, Inc. | $ | 424,402 | $ | 709,221 | ||||
Prepaid Others | 59,099 | 108,089 | ||||||
$ | 483,501 | $ | 817,310 | |||||
Equity_Transactions_Tables
Equity Transactions (Tables) | 3 Months Ended | ||||
Sep. 30, 2014 | |||||
Stockholders' Equity Note [Abstract] | |||||
Schedule of Stockholders Equity [Table Text Block] | The Company estimated the relative fair value of the warrants granted quarterly to the Scientific Advisory Board on the date of grant using the Black-Scholes Option-Pricing Model with the following weighted-average assumptions: | ||||
August 15, | |||||
2014 | |||||
Expected life (year) | 4 | ||||
Expected volatility | 91.68 | % | |||
Expected annual rate of quarterly dividends | 0 | % | |||
Risk-free rate(s) | 1.2 | % | |||
Stock_Options_and_Warrants_Tab
Stock Options and Warrants (Tables) | 3 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Equity Option [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table presents the combined activity of stock options issued for the reporting periods ended September 30, 2014 as follows: | |||||||||||||||
Stock Options | Number of | Weighted | Weighted | Aggregate | ||||||||||||
Shares | Average | Average | Intrinsic | |||||||||||||
Exercise Price | Remaining | Value ($) | ||||||||||||||
per share ($) | Contractual | |||||||||||||||
Term (years) | ||||||||||||||||
Outstanding at June 30, 2014 | 535,715 | 0.35 | 1.23 | 2,094,643 | ||||||||||||
Granted | - | - | - | - | ||||||||||||
Exercised | - | - | - | - | ||||||||||||
Expired | - | - | - | - | ||||||||||||
Canceled | - | - | - | - | ||||||||||||
Outstanding at September 30,2014 | 535,715 | 0.35 | 0.98 | 1,451,780 | ||||||||||||
Stock Warrants [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | As of September 30, 2014 there was no unrecognized compensation cost. | |||||||||||||||
Stock Warrants | ||||||||||||||||
Stock Warrants | Number of | Weighted | Weighted | Aggregate | ||||||||||||
Shares | Average | Average | Intrinsic Value | |||||||||||||
Exercise | Remaining | ($) | ||||||||||||||
Price | Contractual Term | |||||||||||||||
per share | (years) | |||||||||||||||
($) | ||||||||||||||||
Outstanding at June 30, 2014 | 8,894,355 | 5.01 | 2.78 | 2,278,458 | ||||||||||||
Granted | 17,148 | 4.18 | 3.88 | - | ||||||||||||
Exercised | 1,926,656 | - | - | - | ||||||||||||
Expired | 1,059,616 | - | - | - | ||||||||||||
Canceled | - | - | - | - | ||||||||||||
Outstanding at September 30,2014 | 5,925,231 | 5.15 | 3.86 | 113,571 | ||||||||||||
Organization_and_Nature_of_Bus1
Organization and Nature of Business (Details Textual) (USD $) | 0 Months Ended | 3 Months Ended | 113 Months Ended | ||
Feb. 15, 2010 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | |
Organization and Nature of Business [Line Items] | |||||
Entity Incorporation, State Country Name | Colorado | ||||
Entity Incorporation, Date Of Incorporation | 25-Jul-00 | ||||
Business Acquisition, Name of Acquired Entity | Edot-com.com, Inc. | ||||
Business Acquisition, Date of Acquisition Agreement | 12-May-05 | ||||
Common stock, shares issued | 56,535,135 | 56,535,135 | 54,620,993 | ||
Common stock, shares, outstanding | 56,535,135 | 56,535,135 | 54,620,993 | ||
Convertible Preferred Stock, Terms of Conversion | Only in the event of a “change of control” of the Company, each Series A preferred share is convertible to 3.5 shares of its new common stock. A “change of control” is defined as an event in which the Company’s shareholders become 60% or less owners of a new entity as a result of a change of ownership, merger or acquisition. | ||||
Stockholders' Equity, Reverse Stock Split | (adjusted for the 3.5 to 1 reverse split) | ||||
ECMM [Member] | |||||
Organization and Nature of Business [Line Items] | |||||
Common Stock Shares Issued Prorata Basis | 4,000 | ||||
Stock Issued During Period, Shares, New Issues | 80,000,000 | ||||
Common stock, shares issued | 100,000,000 | 100,000,000 | |||
Common stock, shares, outstanding | 100,000,000 | 100,000,000 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 80.00% | 80.00% | |||
Series A Convertible Preferred Stock [Member] | |||||
Organization and Nature of Business [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 187,000 | ||||
Preferred stock, shares issued | 2,000,000 | ||||
Preferred stock | 2,000 | 3,389 | 3,389 | $2,990 | |
Convertible Preferred Stock, Terms of Conversion | The Series A Preferred Stock is convertible, only upon sale or merger of the company, or the sale of or license of substantially all of the Company’s intellectual property, into shares of the Company’s common stock at the rate of 3.5 shares of common stock for each share of Series A Preferred Stock |
Restatement_of_Previously_Issu2
Restatement of Previously Issued Financial Statements (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Feb. 15, 2010 |
CURRENT ASSETS: | |||||
Cash and cash equivalents | $41,120,652 | $36,696,892 | $19,200,882 | $13,923,245 | |
Prepaid expenses | 59,099 | 108,089 | 805,145 | ||
Prepaid expenses - related parties | 424,402 | 709,221 | |||
Other current assets | 0 | 150,000 | |||
Total Current Assets | 41,604,153 | 37,664,202 | 20,006,027 | ||
PROPERTY AND EQUIPMENT | |||||
Property and equipment | 7,299,254 | 6,736,742 | 3,779,636 | ||
Accumulated depreciation | -1,291,318 | -1,239,986 | -1,089,471 | ||
Property and equipment, net | 6,007,936 | 5,496,756 | 2,690,165 | ||
TRADEMARK | |||||
Trademark | 458,954 | 458,954 | 458,954 | ||
Accumulated amortization | -52,889 | -50,696 | -44,114 | ||
Trademark, net | 406,065 | 408,258 | 414,840 | ||
SECURITY DEPOSIT | 1,000,000 | 1,000,000 | 2,000,000 | ||
Total Assets | 49,018,154 | 44,569,216 | 25,111,032 | ||
CURRENT LIABILITIES: | |||||
Accounts payable | 155,978 | 376,446 | 408,058 | ||
Accounts payable - related parties | 331,448 | 758,676 | 1,139,825 | ||
Accrued expenses | 265,463 | 91,838 | 319,612 | ||
Total Current Liabilities | 752,889 | 1,226,960 | 1,867,495 | ||
LONG TERM LIABILITIES: | |||||
Debentures payable | 0 | 5,000,000 | 3,603,554 | ||
Derivative Liability | 7,888,736 | ||||
Total Long Term Liabilities | 16,076,149 | 19,972,953 | 14,936,007 | ||
Total Liabilities | 16,829,038 | 21,199,913 | 16,803,502 | ||
COMMITMENTS AND CONTINGENCIES | |||||
STOCKHOLDERSb EQUITY: | |||||
Common stock | 56,535 | 54,621 | 50,029 | ||
Additional paid-in capital | 83,178,895 | 75,212,888 | 53,115,817 | ||
Accumulated deficit | -51,049,703 | -51,901,400 | -44,861,306 | ||
Total Stockholdersb Equity | 32,189,116 | 23,369,303 | 8,307,530 | 8,009,652 | |
Total Liabilities and Stockholdersb Equity | 49,018,154 | 44,569,216 | 25,111,032 | ||
Warrant [Member] | |||||
LONG TERM LIABILITIES: | |||||
Derivative Liability | 4,558,581 | 5,235,682 | 3,443,717 | ||
Series B Debentures [Member] | |||||
LONG TERM LIABILITIES: | |||||
Debentures payable | 4,195,296 | 4,037,568 | |||
Derivative Liability | 3,785,385 | 5,699,703 | |||
Series C Debentures [Member] | |||||
LONG TERM LIABILITIES: | |||||
Debentures payable | 2,083,765 | 0 | |||
Derivative Liability | 1,453,122 | 0 | |||
Scenario, Previously Reported [Member] | |||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | 41,120,652 | 36,696,892 | 19,200,882 | 13,923,245 | |
Prepaid expenses | 59,099 | 805,145 | |||
Prepaid expenses - related parties | 424,402 | ||||
Other current assets | 0 | ||||
Total Current Assets | 41,604,153 | 20,006,027 | |||
PROPERTY AND EQUIPMENT | |||||
Property and equipment | 7,299,254 | 3,779,636 | |||
Accumulated depreciation | -1,291,318 | -1,089,471 | |||
Property and equipment, net | 6,007,936 | 2,690,165 | |||
TRADEMARK | |||||
Trademark | 458,954 | 458,954 | |||
Accumulated amortization | -52,889 | -44,114 | |||
Trademark, net | 406,065 | 414,840 | |||
SECURITY DEPOSIT | 1,000,000 | 2,000,000 | |||
Total Assets | 49,018,154 | 25,111,032 | |||
CURRENT LIABILITIES: | |||||
Accounts payable | 155,978 | 408,058 | |||
Accounts payable - related parties | 331,448 | 1,139,825 | |||
Accrued expenses | 265,463 | 319,612 | |||
Total Current Liabilities | 752,889 | 1,867,495 | |||
LONG TERM LIABILITIES: | |||||
Debentures payable | 3,603,554 | ||||
Derivative Liability | 7,888,736 | ||||
Total Long Term Liabilities | 11,437,925 | 11,492,290 | |||
Total Liabilities | 12,190,814 | 13,359,785 | |||
COMMITMENTS AND CONTINGENCIES | |||||
STOCKHOLDERSb EQUITY: | |||||
Common stock | 56,535 | 50,029 | |||
Additional paid-in capital | 89,412,744 | 56,270,792 | |||
Accumulated deficit | -52,645,328 | -44,572,564 | |||
Total Stockholdersb Equity | 36,827,340 | 11,751,247 | |||
Total Liabilities and Stockholdersb Equity | 49,018,154 | 25,111,032 | |||
Scenario, Previously Reported [Member] | Warrant [Member] | |||||
LONG TERM LIABILITIES: | |||||
Derivative Liability | 0 | 0 | |||
Scenario, Previously Reported [Member] | Series B Debentures [Member] | |||||
LONG TERM LIABILITIES: | |||||
Debentures payable | 4,195,296 | ||||
Derivative Liability | 3,785,385 | ||||
Scenario, Previously Reported [Member] | Series C Debentures [Member] | |||||
LONG TERM LIABILITIES: | |||||
Debentures payable | 3,457,244 | ||||
Derivative Liability | 0 | ||||
Scenario, Adjustment [Member] | |||||
CURRENT ASSETS: | |||||
Total Current Assets | 0 | ||||
LONG TERM LIABILITIES: | |||||
Total Long Term Liabilities | 4,638,224 | 3,443,717 | |||
Total Liabilities | 3,443,717 | ||||
COMMITMENTS AND CONTINGENCIES | |||||
STOCKHOLDERSb EQUITY: | |||||
Additional paid-in capital | -6,233,849 | -3,154,975 | |||
Accumulated deficit | 1,595,625 | -288,742 | |||
Total Stockholdersb Equity | -4,638,224 | -3,443,717 | |||
Scenario, Adjustment [Member] | Warrant [Member] | |||||
LONG TERM LIABILITIES: | |||||
Derivative Liability | 4,558,581 | 3,443,717 | |||
Scenario, Adjustment [Member] | Series C Debentures [Member] | |||||
LONG TERM LIABILITIES: | |||||
Debentures payable | -1,373,479 | ||||
Derivative Liability | 1,453,122 | ||||
Series A Preferred Stock [Member] | |||||
STOCKHOLDERSb EQUITY: | |||||
Preferred Stock | 3,389 | 2,990 | 2,000 | ||
Total Stockholdersb Equity | 3,389 | 3,194 | 2,990 | ||
Series A Preferred Stock [Member] | Scenario, Previously Reported [Member] | |||||
STOCKHOLDERSb EQUITY: | |||||
Preferred Stock | 3,389 | 2,990 | |||
Series B Preferred Stock [Member] | |||||
STOCKHOLDERSb EQUITY: | |||||
Preferred Stock | 0 | 0 | |||
Total Stockholdersb Equity | 0 | 0 | 0 | ||
Series B Preferred Stock [Member] | Scenario, Previously Reported [Member] | |||||
STOCKHOLDERSb EQUITY: | |||||
Preferred Stock | 0 | 0 | |||
Series C Preferred Stock [Member] | |||||
STOCKHOLDERSb EQUITY: | |||||
Preferred Stock | 0 | 0 | |||
Total Stockholdersb Equity | 0 | 0 | 0 | ||
Series C Preferred Stock [Member] | Scenario, Previously Reported [Member] | |||||
STOCKHOLDERSb EQUITY: | |||||
Preferred Stock | $0 | $0 |
Restatement_of_Previously_Issu3
Restatement of Previously Issued Financial Statements (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | |
OPERATING EXPENSES | |||
Research and development | $811,107 | $1,174,221 | |
Refund credit research and development costs | 0 | 0 | |
General and administrative | 876,026 | 714,561 | |
Total operating expenses | 1,687,133 | 1,888,782 | |
LOSS FROM OPERATIONS | -1,687,133 | -1,888,782 | |
OTHER INCOME (EXPENSE): | |||
Interest income, net | 39,323 | 9,560 | |
Interest expense | -245,000 | -120,986 | |
Discount on convertible debentures | -273,218 | -135,481 | |
Beneficial conversion feature of convertible debentures | 0 | 0 | |
Change in fair market value of derivatives | 3,017,725 | -4,425,833 | |
Other income (expense), net | 2,538,830 | -4,672,740 | |
LOSS BEFORE INCOME TAXES | 851,697 | -6,561,522 | |
INCOME TAX PROVISION | 0 | 0 | |
NET INCOME (LOSS) | 851,697 | -6,561,522 | -14,106,474 |
NET INCOME (LOSS) PER COMMON SHARE - BASIC AND DILUTED (in dollars per share) | $0.02 | ($0.14) | |
Weighted average common shares outstanding - basic and diluted (in shares) | 55,576,200 | 47,672,029 | |
Scenario, Previously Reported [Member] | |||
OPERATING EXPENSES | |||
Research and development | 811,107 | 1,174,221 | |
Refund credit research and development costs | 0 | 0 | |
General and administrative | 876,026 | 714,561 | |
Total operating expenses | 1,687,133 | 1,888,782 | |
LOSS FROM OPERATIONS | -1,687,133 | -1,888,782 | |
OTHER INCOME (EXPENSE): | |||
Interest income, net | 39,323 | 9,560 | |
Interest expense | -245,000 | -120,986 | |
Discount on convertible debentures | -260,578 | -135,481 | |
Beneficial conversion feature of convertible debentures | 0 | 0 | |
Change in fair market value of derivatives | 1,914,318 | -4,137,091 | |
Other income (expense), net | 1,448,063 | -4,383,998 | |
LOSS BEFORE INCOME TAXES | -239,070 | -6,272,780 | |
INCOME TAX PROVISION | 0 | 0 | |
NET INCOME (LOSS) | -239,070 | -6,272,780 | |
NET INCOME (LOSS) PER COMMON SHARE - BASIC AND DILUTED (in dollars per share) | ($0.00) | ($0.13) | |
Weighted average common shares outstanding - basic and diluted (in shares) | 55,576,200 | 47,672,029 | |
Restatement Adjustment [Member] | |||
OPERATING EXPENSES | |||
Total operating expenses | 0 | ||
LOSS FROM OPERATIONS | 0 | ||
OTHER INCOME (EXPENSE): | |||
Discount on convertible debentures | -12,640 | ||
Beneficial conversion feature of convertible debentures | |||
Change in fair market value of derivatives | 1,103,407 | -288,742 | |
Other income (expense), net | 1,090,767 | -288,742 | |
LOSS BEFORE INCOME TAXES | 1,090,767 | -288,742 | |
INCOME TAX PROVISION | 0 | ||
NET INCOME (LOSS) | $1,090,767 | ($288,742) | $504,858 |
Restatement_of_Previously_Issu4
Restatement of Previously Issued Financial Statements (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $851,697 | ($6,561,522) | ($14,106,474) |
Adjustments to reconcile net income (loss) to net cash used in operating activities | |||
Preferred shares issued for license | 0 | ||
Series A Preferred shares issued as compensation | 72,980 | 0 | |
Common shares and warrants issued for services | 38,250 | 32,250 | |
Common shares issued for interest | |||
Warrants granted to scientific advisory board | 22,292 | 106,050 | |
Amortization of deferred compensation | |||
Depreciation | 51,332 | 52,719 | |
Amortization | 2,193 | 2,193 | |
Change in fair value of derivative liability | -3,017,725 | 4,425,833 | |
Amortization of deferred financing expenses | 0 | ||
Discount convertible debentures | 273,218 | 135,481 | |
Beneficial conversion feature of convertible debentures | 0 | 0 | |
Changes in operating assets and liabilities: | |||
Prepaid expenses | 48,990 | -206,765 | |
Prepaid expenses - Related parties | 284,819 | ||
Other current assets | 150,000 | 0 | |
Deferred expenses | |||
Accounts payable - trade | -220,468 | 144,802 | |
Accounts payable - related parties | -427,228 | 429,258 | |
Accrued expenses | 173,625 | 115,253 | |
Accrued payroll to officers and related payroll tax expense | |||
NET CASH USED IN OPERATING ACTIVITIES | -1,696,025 | -1,324,448 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Security deposit | 0 | -1,000,000 | |
Purchase of property and equipment | -562,512 | -2,273,989 | |
Purchase of trademark | 0 | ||
NET CASH USED IN INVESTING ACTIVITIES | -562,512 | -3,273,989 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of Convertible Debentures | |||
Proceeds from issuance of common stock and warrants in connection with private placements of common stock, net of issuance costs | 9,690,450 | ||
Proceeds from exercise of stock options | |||
Proceeds from exercise of warrants | 6,682,297 | 185,624 | |
Collection of stock subscriptions received | |||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 6,682,297 | 9,876,074 | |
NET CHANGE IN CASH | 4,423,760 | 5,277,637 | |
Cash at beginning of period | 36,696,892 | 13,923,245 | 13,923,245 |
Cash at end of period | 41,120,652 | 19,200,882 | 36,696,892 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | |||
Interest paid | 0 | 0 | |
Income tax paid | 0 | 0 | |
NON CASH FINANCING AND INVESTING ACTIVITIES: | |||
Common stock issued for services rendered | 38,250 | 32,250 | |
Common stock for interest | |||
Preferred stock issued as compensation | 72,980 | 0 | |
Series A Preferred stock issued as discount on Debentures | 1,645,606 | ||
Stock options issued to the officers as compensation | |||
Stock warrants granted to scientific advisory board | 22,292 | 106,050 | |
Stock warrants granted to brokers | 113,696 | ||
Series B Preferred Stock [Member] | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of Convertible Debentures | |||
Series C Preferred Stock [Member] | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of Convertible Debentures | |||
Scenario, Previously Reported [Member] | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | -239,070 | -6,272,780 | |
Adjustments to reconcile net income (loss) to net cash used in operating activities | |||
Preferred shares issued for license | |||
Series A Preferred shares issued as compensation | 72,980 | ||
Common shares and warrants issued for services | 38,250 | 32,250 | |
Common shares issued for interest | |||
Warrants granted to scientific advisory board | 22,292 | 106,050 | |
Amortization of deferred compensation | |||
Depreciation | 51,332 | 52,719 | |
Amortization | 2,193 | 2,193 | |
Change in fair value of derivative liability | -1,914,318 | 4,137,091 | |
Discount convertible debentures | 260,578 | 135,481 | |
Beneficial conversion feature of convertible debentures | 0 | 0 | |
Changes in operating assets and liabilities: | |||
Prepaid expenses | 48,990 | -206,765 | |
Prepaid expenses - Related parties | 284,819 | ||
Other current assets | 150,000 | ||
Deferred expenses | |||
Accounts payable - trade | -220,468 | 144,802 | |
Accounts payable - related parties | -427,228 | 429,258 | |
Accrued expenses | 173,625 | 115,253 | |
Accrued payroll to officers and related payroll tax expense | |||
NET CASH USED IN OPERATING ACTIVITIES | -1,696,025 | -1,324,448 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Security deposit | 0 | -1,000,000 | |
Purchase of property and equipment | -562,512 | -2,273,989 | |
Purchase of trademark | 0 | ||
NET CASH USED IN INVESTING ACTIVITIES | -562,512 | -3,273,989 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of Convertible Debentures | |||
Proceeds from issuance of common stock and warrants in connection with private placements of common stock, net of issuance costs | 9,690,450 | ||
Proceeds from exercise of stock options | |||
Proceeds from exercise of warrants | 6,682,297 | 185,624 | |
Collection of stock subscriptions received | |||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 6,682,297 | 9,876,074 | |
NET CHANGE IN CASH | 4,423,760 | 5,277,637 | |
Cash at beginning of period | 36,696,892 | 13,923,245 | 13,923,245 |
Cash at end of period | 41,120,652 | 19,200,882 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | |||
Interest paid | 0 | 0 | |
Income tax paid | 0 | 0 | |
NON CASH FINANCING AND INVESTING ACTIVITIES: | |||
Common stock issued for services rendered | 38,250 | 32,250 | |
Common stock for interest | |||
Preferred stock issued as compensation | 72,980 | ||
Series A Preferred stock issued as discount on Debentures | 1,645,606 | ||
Stock options issued to the officers as compensation | |||
Stock warrants granted to scientific advisory board | 22,292 | 106,050 | |
Stock warrants granted to brokers | 113,696 | ||
Scenario, Previously Reported [Member] | Series B Preferred Stock [Member] | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of Convertible Debentures | |||
Scenario, Previously Reported [Member] | Series C Preferred Stock [Member] | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of Convertible Debentures | |||
Restatement Adjustment [Member] | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | 1,090,767 | -288,742 | 504,858 |
Adjustments to reconcile net income (loss) to net cash used in operating activities | |||
Preferred shares issued for license | |||
Common shares issued for interest | |||
Amortization of deferred compensation | |||
Change in fair value of derivative liability | -1,103,407 | 288,742 | |
Discount convertible debentures | 12,640 | ||
Beneficial conversion feature of convertible debentures | |||
Changes in operating assets and liabilities: | |||
Deferred expenses | |||
Accrued payroll to officers and related payroll tax expense | |||
NET CASH USED IN OPERATING ACTIVITIES | 0 | 0 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
NET CASH USED IN INVESTING ACTIVITIES | 0 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of Convertible Debentures | |||
Proceeds from issuance of common stock and warrants in connection with private placements of common stock, net of issuance costs | |||
Proceeds from exercise of stock options | |||
Collection of stock subscriptions received | |||
NET CHANGE IN CASH | 0 | ||
NON CASH FINANCING AND INVESTING ACTIVITIES: | |||
Common stock for interest | |||
Stock options issued to the officers as compensation | |||
Restatement Adjustment [Member] | Series B Preferred Stock [Member] | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of Convertible Debentures | |||
Restatement Adjustment [Member] | Series C Preferred Stock [Member] | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of Convertible Debentures |
Restatement_of_Previously_Issu5
Restatement of Previously Issued Financial Statements (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | |
Additional Paid In Capital | $83,178,895 | $53,115,817 | $75,212,888 |
Retained Earnings (Accumulated Deficit) | -51,049,703 | -44,861,306 | -51,901,400 |
Net Income (Loss) Attributable To Parent | 851,697 | -6,561,522 | -14,106,474 |
Series C Preferred Values Issued for Debenture Interest | 3,031,125 | ||
Series A Preferred Values Issued As Interest | 1,152,297 | ||
Series A Preferred Values Issued Fair Value | 1,879,428 | ||
Long-Term Debentures Payable [Member] | |||
Interest Expense, Debt | 115,490 | ||
Restatement Adjustment [Member] | |||
Additional Paid In Capital | 5,235,682 | ||
Retained Earnings (Accumulated Deficit) | 504,858 | ||
Net Income (Loss) Attributable To Parent | 1,090,767 | -288,742 | 504,858 |
Scenario, Previously Reported [Member] | |||
Additional Paid In Capital | 89,412,744 | 56,270,792 | |
Retained Earnings (Accumulated Deficit) | -52,645,328 | -44,572,564 | |
Net Income (Loss) Attributable To Parent | -239,070 | -6,272,780 | |
Debt Instrument, Unamortized Discount (Premium), Net | $1,373,479 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Sep. 30, 2013 | |
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6,460,946 | 6,922,395 |
Employee Stock Option [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 535,715 | 535,715 |
Total Stock Option [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 535,715 | 535,715 |
Warrants Issued One [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 513,143 |
Warrants Issued Two [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 466,486 |
Warrants Issued Three [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 211,429 | 211,429 |
Warrants Issued Four [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 568,771 |
Warrants Issued Five [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 1,437,871 |
Warrants Issued Six [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 65,714 | 65,714 |
Warrants Issued Seven [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 68,571 | 68,571 |
Warrants Issued Eight [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 68,571 | 68,571 |
Warrants Issued Nine [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,810,071 | 2,910,071 |
Warrants Issued Ten [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 17,143 | 17,143 |
Warrants Issued Eleven [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 58,910 | 58,910 |
Warrants Issued Twelve [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 17,143 | |
Warrants Issued Thirteen [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,479,935 | |
Warrants Issued Fourteen [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 76,306 | |
Warrants Issued Fifteen [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 17,143 | |
Warrants Issued Sixteen [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 17,148 | |
Warrants Issued Seventeen [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 17,148 | |
Total Warrants [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 5,925,231 | 6,386,680 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details Textual) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Jun. 30, 2014 | |
Accounting Policies [Line Items] | ||
Common Stock, Par Or Stated Value Per Share | $0.00 | $0.00 |
Debt Conversion, Converted Instrument, Shares Issued | 1,960,785 | |
Debt Interest Conversion Converted Instrument Shares Issued | 1,142,858 | |
Warrants Exercise Price | $6.05 | |
Convertible Preferred Stock, Terms Of Conversion | Only in the event of a “change of control” of the Company, each Series A preferred share is convertible to 3.5 shares of its new common stock. A “change of control” is defined as an event in which the Company’s shareholders become 60% or less owners of a new entity as a result of a change of ownership, merger or acquisition. | |
Series A Convertible Preferred Stock [Member] | ||
Accounting Policies [Line Items] | ||
Preferred Stock, Shares Issued | 3,387,795 | 3,193,079 |
Common Stock [Member] | ||
Accounting Policies [Line Items] | ||
Common Stock, Par Or Stated Value Per Share | $3.06 | |
Convertible Preferred Stock, Shares Issued upon Conversion | 11,857,283 | |
September 23, 2005 [Member] | ||
Accounting Policies [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $0.35 | |
Share Based Compensation Arrangement By Share Based Payment Award Expiration Term | 10 years | |
June 15,2006 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $3.50 | |
Warrants Expiration Date | 15-Aug-14 | |
August 22, 2008 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $3.50 | |
Warrants Expiration Date | 15-Aug-14 | |
June 15, 2008 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Expiration Date | 28-Feb-15 | |
June 30, 2009 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $3.50 | |
Warrants Expiration Date | 15-Aug-14 | |
September 30, 2009 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $3.50 | |
Warrants Expiration Date | 15-Aug-14 | |
August 16 2010 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Expiration Date | 30-Jun-15 | |
August 16 2011 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Expiration Date | 30-Jun-16 | |
August 16 2012 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $5.17 | |
Warrants Expiration Date | 30-Jun-17 | |
September 10, 2013 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $5.25 | |
Warrants Expiration Date | 10-Sep-18 | |
September 10, 2013 [Member] | Placement Agents [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $5.25 | |
Warrants Expiration Date | 10-Sep-18 | |
August 15, 2013 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $5.17 | |
Warrants Expiration Date | 15-Aug-17 | |
November 15, 2013 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $6.56 | |
Warrants Expiration Date | 15-Nov-17 | |
January 24, 2014 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $6.05 | |
Warrants Expiration Date | 24-Jan-19 | |
January 24, 2014 [Member] | Placement Agents [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $5.25 | |
Warrants Expiration Date | 24-Jan-19 | |
February 14, 2014 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $3.98 | |
Warrants Expiration Date | 14-Feb-18 | |
May 15, 2014 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $4.11 | |
Warrants Expiration Date | 15-May-18 | |
August 15 2014 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $5.02 | |
Warrants Expiration Date | 15-Aug-18 | |
Minimum [Member] | June 15, 2008 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $2.45 | |
Minimum [Member] | August 16 2010 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $5.15 | |
Minimum [Member] | August 16 2011 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $2.80 | |
Maximum [Member] | June 15, 2008 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $9.38 | |
Maximum [Member] | August 16 2010 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $6.34 | |
Maximum [Member] | August 16 2011 [Member] | ||
Accounting Policies [Line Items] | ||
Warrants Exercise Price | $4.94 |
Financial_Condition_Details_Te
Financial Condition (Details Textual) (USD $) | 0 Months Ended | 3 Months Ended | |||||
Jul. 02, 2014 | Sep. 05, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Jul. 17, 2014 | |
Financial Condition [Line Items] | |||||||
Cash and cash equivalents | $41,120,652 | $36,696,892 | $19,200,882 | $13,923,245 | |||
Common stock, par value (in dollars per share) | $0.00 | $0.00 | |||||
Long-Term Debt, Excluding Current Maturities | 0 | 5,000,000 | 3,603,554 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $1 | ||||||
Retained Earnings (Accumulated Deficit) | -51,049,703 | -51,901,400 | -44,861,306 | ||||
Derivative, Description of Terms | The Company has the right, but not the obligation, to repay the Debenture prior to the Maturity Date (the Redemption Payment) in cash or, at the option of the Holder, a number of shares of the Companys Common Stock. If the closing bid price of the Common Stock is in excess of $5.25 when the Company notifies the Holder it has elected to prepay the Debenture (the Redemption Date), the Company must redeem the Debenture by delivering to the Holder 951,381 shares of Common Stock and any unpaid coupon interest in lieu of a cash Redemption Payment. If the Holder elects to receive the Redemption Payment in cash, or if the closing bid price of the Common Stock is less than $5.25, the Company shall pay to the Holder a Redemption Payment in cash equal to the principal amount of the Debenture, plus any accrued coupon interest, and additional interest of 7% per annum for the period from the Closing Date to the Redemption Date. As additional interest on the Debenture, the Company shall issue 187,000 shares of its restricted Series A Preferred Stock (the Series A) to the Holder. Each shares of Series A votes at 9 votes per share. In addition, only in the event of a change of control of the Company, each Series A preferred share is convertible to 3.5 shares of its new common stock. A change of control is defined as an event in which the Companys shareholders become 60% or less owners of a new entity as a result of a change of ownership, merger or acquisition. In the absence of a change of control event, the Series A stock is not convertible into Common Stock, and does not carry any dividend rights or any other financial effects. The Offering was conducted directly by the Company without the use of a placement agent. Accordingly, no placement agent fees or other commissions were paid by the Company in connection with the Offering. | ||||||
Registered Warrants [Member] | |||||||
Financial Condition [Line Items] | |||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 2,136,655 | 2,136,655 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $3.50 | ||||||
Proceeds from Warrant Exercises | 7,478,292.50 | 7,478,292.50 | |||||
Class of Warrant or Right, Outstanding | 3,071,986 | 3,071,986 | |||||
Long-Term Debentures Payable [Member] | |||||||
Financial Condition [Line Items] | |||||||
Long-Term Debt, Excluding Current Maturities | 5,000,000 | ||||||
Derivative, Cap Interest Rate | 10.00% | ||||||
Debt Instrument, Maturity Date | 30-Jun-18 | ||||||
Long-Term Debentures Payable [Member] | Director [Member] | |||||||
Financial Condition [Line Items] | |||||||
Common stock, par value (in dollars per share) | $0.00 | ||||||
Debt Instrument, Convertible, Conversion Price | $5.25 | ||||||
Long-Term Debt, Excluding Current Maturities | $5,000,000 | ||||||
Derivative, Cap Interest Rate | 10.00% | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $3.50 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | |
Research and development | $811,107 | $1,174,221 | |
Due to Related Parties | 9,000,000 | 9,000,000 | |
Director [Member] | Long-Term Debentures Payable [Member] | |||
Due to Related Parties, Noncurrent | 4,000,000 | 4,000,000 | 4,000,000 |
Payments to Fund Long-term Loans to Related Parties | 0 | 0 | |
Due to Related Parties, Noncurrent | 4,000,000 | 4,000,000 | |
Director [Member] | Long-Term Debentures Payable [Member] | Subsequent Event [Member] | |||
Due to Related Parties, Noncurrent | 5,000,000 | 5,000,000 | 5,000,000 |
Payments to Fund Long-term Loans to Related Parties | 0 | 0 | |
Due to Related Parties, Noncurrent | 5,000,000 | 5,000,000 | |
Innohaven, LLC [Member] | |||
Due from Related Parties | 0 | 4,500,000 | |
TheraCour Pharma, Inc [Member] | |||
Due from Related Parties | 110,578 | 528,000 | |
Net Account Payable to related party | 331,448 | 758,676 | |
Research and development | $769,185 | $924,125 |
Related_Party_Transactions_Det1
Related Party Transactions (Details Textual) (USD $) | 3 Months Ended | ||||
Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Jul. 02, 2014 | Jun. 30, 2013 | |
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Description of Transaction | charge its costs (direct and indirect) plus no more than 30% of direct costs | ||||
Lab Supplies and Chemicals Fees | $25,000 | ||||
Other General and Administrative Expense | 2,000 | ||||
Royalty Payment Percentage Of Net Sales | 15.00% | ||||
Security Deposit | 1,000,000 | 1,000,000 | 2,000,000 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $1 | ||||
Long-Term Debt, Excluding Current Maturities | 0 | 5,000,000 | 3,603,554 | ||
Common Stock, Par Or Stated Value Per Share | $0.00 | $0.00 | |||
Long-Term Debentures Payable [Member] | |||||
Related Party Transaction [Line Items] | |||||
Long-Term Debt, Excluding Current Maturities | 5,000,000 | ||||
Derivative, Cap Interest Rate | 10.00% | ||||
Long-Term Debentures Payable [Member] | Director [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to Related Parties, Noncurrent | 4,000,000 | 4,000,000 | 4,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||
Debt Instrument, Interest Rate Terms | The debentures bear an interest rate of 8% p.a., an additional interest payable in restricted common stock of 0.33, 0.33, and 0.34 shares in year 1, 2, and 3 respectively, and an additional interest of 0.33 warrants to be issued in the fourth year, per $1 of principal. | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $3.50 | ||||
Debt Instrument, Term | 3 years | ||||
Debt Instrument, Basis Spread on Variable Rate | 7.00% | ||||
Long-Term Debt, Excluding Current Maturities | 5,000,000 | ||||
Derivative, Cap Interest Rate | 10.00% | ||||
Common Stock, Par Or Stated Value Per Share | $0.00 | ||||
Debt Instrument, Convertible, Conversion Price | $5.25 | ||||
Long-Term Debentures Payable [Member] | Director [Member] | Subsequent Event [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to Related Parties, Noncurrent | 5,000,000 | 5,000,000 | 5,000,000 | ||
Long-Term Debt, Excluding Current Maturities | 5,000,000 | ||||
Derivative, Cap Interest Rate | 10.00% | ||||
Common Stock, Par Or Stated Value Per Share | $0.00 | ||||
Debt Instrument, Convertible, Conversion Price | $5.25 | ||||
TheraCour Pharma, Inc [Member] | |||||
Related Party Transaction [Line Items] | |||||
Security Deposit | $424,402 |
Concentrations_Details
Concentrations (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Supplier Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Net Purchases | $1,687,133 | $1,888,782 |
Accounts Payable | 487,426 | 1,547,883 |
Supplier Concentration Risk [Member] | TheraCour Pharma, Inc [Member] | ||
Concentration Risk [Line Items] | ||
Net Purchases | 769,185 | 924,126 |
Accounts Payable | 331,448 | 1,139,825 |
Supplier Concentration Risk [Member] | Kard Scientific Inc [Member] | ||
Concentration Risk [Line Items] | ||
Net Purchases | 0 | 247,660 |
Accounts Payable | $123,570 | $246,963 |
Net Purchases [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 100.00% | 100.00% |
Net Purchases [Member] | TheraCour Pharma, Inc [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 45.60% | 48.90% |
Net Purchases [Member] | Kard Scientific Inc [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 13.10% |
Accounts Payable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 100.00% | 100.00% |
Accounts Payable [Member] | TheraCour Pharma, Inc [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 68.00% | 73.60% |
Accounts Payable [Member] | Kard Scientific Inc [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 25.40% | 16.00% |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 |
Property, Plant and Equipment [Line Items] | |||
GMP Facility | $3,551,713 | $3,099,780 | |
Office Equipment | 30,048 | 30,048 | |
Furniture and Fixtures | 1,400 | 1,400 | |
Lab Equipment | 3,716,093 | 3,605,514 | |
Total Property and Equipment | 7,299,254 | 6,736,742 | 3,779,636 |
Less Accumulated Depreciation | -1,291,318 | -1,239,986 | -1,089,471 |
Property and Equipment, Net | $6,007,936 | $5,496,756 | $2,690,165 |
Property_and_Equipment_Details1
Property and Equipment (Details Textual) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $51,332 | $52,719 |
Trademark_and_Patents_Details
Trademark and Patents (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 |
Trademarks And Patents [Line Items] | |||
Trademarks and Patents | $458,954 | $458,954 | $458,954 |
Less Accumulated Amortization | -52,889 | -50,696 | -44,114 |
Trademarks and Patents, Net | $406,065 | $408,258 |
Trademark_and_Patents_Details_
Trademark and Patents (Details Textual) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Trademarks And Patents [Line Items] | ||
Amortization | $2,193 | $2,193 |
Prepaid_Expenses_Details
Prepaid Expenses (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Prepaid Expense | $483,501 | $817,310 |
Prepaid Others | 59,099 | 108,089 |
TheraCour Pharma, Inc [Member] | ||
Prepaid Expense | $424,402 | $709,221 |
Equity_Transactions_Details
Equity Transactions (Details) | 0 Months Ended |
Aug. 15, 2014 | |
Class of Stock [Line Items] | |
Expected life (year) | 4 years |
Expected volatility | 91.68% |
Expected annual rate of quarterly dividends | 0.00% |
Risk-free rate(s) | 1.20% |
Equity_Transactions_Details_Te
Equity Transactions (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | |||
Aug. 15, 2014 | Sep. 09, 2013 | Aug. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Sep. 05, 2014 | Jul. 02, 2014 | Jul. 17, 2014 | |
Class of Stock [Line Items] | ||||||||||
Number Of Common Stock To Be Issued Upon Conversion Of Warrants | 17,148 | |||||||||
Stock Issued During Period Price Per Share | $5.02 | |||||||||
Fair Value Of Common Stock Warrant Issued During Period For Consulting Services | $22,292 | |||||||||
Warrants expiration period | August, 2018 | |||||||||
Stockholders Equity Note, Stock Split, Conversion Ratio | 3.5 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $1 | 1 | ||||||||
Debt Conversion, Converted Instrument, Shares Issued | 1,960,785 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 91.68% | |||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 0.00% | |||||||||
Debt Instrument, Redemption Price, Percentage | 0.00% | |||||||||
Fair Value Assumptions, Risk Free Interest Rate | 21.86% | |||||||||
Embedded Derivative, Loss on Embedded Derivative | 1,879,428 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years | |||||||||
Embedded Derivative Financial Instruments [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 92.00% | 85.00% | 75.00% | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 1 year | |||||||||
Discount On Convertible Debentures [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Servicing Liability at Amortized Cost, Amortization | 115,490 | |||||||||
Long-Term Debentures Payable [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Long-term Debt | 5,000,000 | 5,000,000 | 5,000,000 | |||||||
Derivative, Cap Interest Rate | 10.00% | |||||||||
Servicing Liability at Amortized Cost, Amortization | 3,031,125 | |||||||||
Registered Warrants [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 2,136,655 | 2,136,655 | 2,136,655 | |||||||
Class of Warrant or Right, Outstanding | 3,071,986 | 3,071,986 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $3.50 | |||||||||
Proceeds from Warrant Exercises | 7,478,292.50 | 7,478,292.50 | ||||||||
Minimum [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 1.00% | |||||||||
Debt Instrument, Redemption Price, Percentage | 1.00% | |||||||||
Pre-Split Stock Price Per Share | $0.78 | 0.7771 | ||||||||
Maximum [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 10.00% | |||||||||
Debt Instrument, Redemption Price, Percentage | 5.00% | |||||||||
Pre-Split Stock Price Per Share | $0.86 | 0.8571 | ||||||||
Preferred Series A shares [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Fair Value Measurements, Significant Assumptions | a. The common stock price (post-reverse split) was in the range $3.90 to $4.16; b. 54,614,930 to 56,450,000 shares outstanding and Series A Preferred shares with 2,572 (postsplit 9/10/13) issued monthly ; c. A 5.36% premium over the common shares for the voting preferences; d. 63,899,777 to 65,193,001 total voting shares and the monthly shares representing voting rights of 2.425% to 2.448% of the total; e. The conversion value is based on an assumption for calculation purposes only of a Change of Control in 4 years from 3/1/13 and a remaining restricted term of 2.59 to 2.42 years; f. 35.53% to 31.95% restricted stock discount (based on a restricted stock analysis and call-put analysis curve: 87.68% to 91.87% volatility, 0.47% to 0.58% risk free rate) applied to the converted common. | |||||||||
Director [Member] | Long-Term Debentures Payable [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $3.50 | 3.5 | ||||||||
Derivative, Cap Interest Rate | 10.00% | 10.00% | ||||||||
Consulting Services [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares issued to a Director for services rendered (in shares) | 2,059 | |||||||||
Stock Issued During Period, Value, Issued For Services | 27,000 | |||||||||
Director Services [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares issued to a Director for services rendered (in shares) | 2,856 | |||||||||
Stock Issued During Period, Value, Issued For Services | 11,250 | |||||||||
Subsequent Event [Member] | Director [Member] | Long-Term Debentures Payable [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Derivative, Cap Interest Rate | 10.00% | 10.00% | ||||||||
Series A Convertible Preferred Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 7,716 | |||||||||
Stock Issued During Period, Value, Share-based Compensation, Gross | 72,980 | |||||||||
Series A Convertible Preferred Stock [Member] | Long-Term Debentures Payable [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 187,000 | 187,000 | ||||||||
Series A Preferred Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock Issued During Period, Shares, New Issues | 187,000 | |||||||||
Stock Issued During Period, Value, New Issues | $1,152,297 |
Stock_Options_and_Warrants_Det
Stock Options and Warrants (Details) (Equity Option [Member], USD $) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Jun. 30, 2014 | |
Equity Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding | 535,715 | |
Number of Shares, Granted | 0 | |
Number of Shares, Exercised | 0 | |
Number of Shares, Expired | 0 | |
Number of Shares, Canceled | 0 | |
Number of Shares, Outstanding | 535,715 | 535,715 |
Weighted Average Exercise Price per share , Outstanding | $0.35 | |
Weighted Average Exercise Price per share, Granted | $0 | |
Weighted Average Exercise Price per share, Exercised | $0 | |
Weighted Average Exercise Price per share, Expired | $0 | |
Weighted Average Exercise Price per share, Canceled | $0 | |
Weighted Average Exercise Price per share , Outstanding | $0.35 | $0.35 |
Weighted Average Remaining Contractual Term, (year) Outstanding | 11 months 23 days | 1 year 2 months 23 days |
Aggregate Intrinsic Value, Outstanding | $2,094,643 | |
Aggregate Intrinsic Value, Outstanding | $1,451,780 | $2,094,643 |
Stock_Options_and_Warrants_Det1
Stock Options and Warrants (Details 1) (Stock Warrants [Member], USD $) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Jun. 30, 2014 | |
Stock Warrants [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding | 8,894,355 | |
Number of Shares, Granted | 17,148 | |
Number of Shares, Exercised | 1,926,656 | |
Number of Shares, Expired | 1,059,616 | |
Number of Shares, Canceled | 0 | |
Number of Shares, Outstanding | 5,925,231 | 8,894,355 |
Weighted Average Exercise Price per share , Outstanding | $5.01 | |
Weighted Average Exercise Price per share, Granted | $4.18 | |
Weighted Average Exercise Price per share, Exercised | $0 | |
Weighted Average Exercise Price per share, Expired | $0 | |
Weighted Average Exercise Price per share, Canceled | $0 | |
Weighted Average Exercise Price per share , Outstanding | $5.15 | $5.01 |
Weighted Average Remaining Contractual Term, (year) Granted | 3 years 10 months 17 days | |
Weighted Average Remaining Contractual Term, (year) Outstanding | 3 years 10 months 10 days | 2 years 9 months 11 days |
Aggregate Intrinsic Value, Outstanding | $2,278,458 | |
Aggregate Intrinsic Value, Outstanding | $113,571 | $2,278,458 |
Stock_Options_and_Warrants_Det2
Stock Options and Warrants (Details Textual) (USD $) | 12 Months Ended | 3 Months Ended | 1 Months Ended | |
Jun. 30, 2009 | Sep. 30, 2014 | Sep. 30, 2005 | 16-May-07 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $7,044 | |||
June 30, 2015 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Warrants Exercisable | 277,143 | |||
Warrants Expiration Date | 30-Jun-15 | |||
June 30, 2016 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Warrants Exercisable | 68,571 | |||
Warrants Expiration Date | 30-Jun-16 | |||
June 30, 2017 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Warrants Exercisable | 68,571 | |||
Warrants Expiration Date | 30-Jun-17 | |||
June 30, 2019 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Warrants Exercisable | 5,383,460 | |||
Warrants Expiration Date | 30-Jun-19 | |||
June 30 2018 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Warrants Exercisable | 127,487 | |||
Warrants Expiration Date | 30-Jun-18 | |||
Chief Executive Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 142,857 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 71,429 | |||
President [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 285,715 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 95,238 | |||
Chief Financial Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 142,857 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 71,429 | 107,143 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | |
Feb. 28, 2011 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 17, 2013 | Feb. 11, 2013 | |
sqft | sqft | ||||
Commitments and Contingencies [Line Items] | |||||
Space For Office and Laboratory | 7,000 | ||||
Monthly Base Rent | $8,695 | ||||
Lease Expiration Date | 28-Feb-11 | ||||
Operating Leases, Rent Expense, Net | 26,085 | 26,085 | |||
Cash Collateral for Borrowed Securities | 1,000,000 | ||||
Debt Instrument, Annual Principal Payment | 2,000,000 | ||||
Fixtures And Improvements | 4,500,000 | ||||
Litigation Settlement, Expense | 150,000 | ||||
TheraCour Pharma, Inc [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Cash Collateral for Borrowed Securities | 1,000,000 | ||||
Inno Haven [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Operating Leases, Rent Expense, Net | 0 | 0 | |||
Area of Land | 18,000 | ||||
Cash Collateral for Borrowed Securities | 2,000,000 | 2,000,000 | |||
Securities Received as Collateral | $1,000,000 | ||||
Securities Owned and Pledged as Collateral, Description | The value of the Collateral Shares shall be determined every three months and, in the event that the current number of shares of the Common Stock is less than $1,000,000, Inno-Haven may deposit, and the Company shall register, additional shares to equal the aforesaid $1,000,000. Alternatively, Inno-Haven may deposit cash equal to the difference between $1,000,000 and the value of the Collateral Shares. |
Subsequent_Events_Details_Text
Subsequent Events (Details Textual) (Subsequent Event [Member], USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Oct. 31, 2014 |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Registration Of Securities, Value | $50 |
Issuance Of Securities, Post Effective Registration Statement, Value | $50 |