Basis of Presentation and Business (Policies) | 9 Months Ended |
Mar. 31, 2015 |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
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These unaudited financial statements represent the financial statements of Rosewind Corporation (“Rosewind” or “the Company”). Rosewind purchased Luoxis Diagnostics, Inc. (“Luoxis”) and Vyrix Pharmaceuticals, Inc. (“Vyrix”) on April 16, 2015 in a reverse triangular merger. Thus, the Rosewind financial statements presented in this form 10-Q are actually the combined financials of Luoxis and Vyrix for any periods prior to April 16, 2015. These unaudited financial statements should be read in conjunction with Rosewind’s Form 8-K filed April 22, 2015, which included all disclosures required by generally accepted accounting principles, see Note 10 for further details. In the opinion of management, these unaudited financial statements contain all adjustments necessary to present fairly the financial position of Rosewind and the results of operations and cash flows for the interim periods presented. The results of operations for the period ended March 31, 2015 are not necessarily indicative of expected operating results for the full year. The information presented throughout the document as of and for the period ended March 31, 2015 is unaudited. Rosewind’s activities have not generated significant revenue to date. |
Liquidity Disclosure-Company Discusses Liquidity Issues but Believes Actions It Has Taken Will Enable It to Continue as a Going Concern over the Next Year | Liquidity Disclosure—Company Discusses Liquidity Issues but Believes Actions It Has Taken Will Enable It to Continue as a Going Concern over the Next Year |
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At March 31, 2015, Rosewind had cash and cash equivalents of $1,491,000, a working capital deficit of $7,522,000 and an accumulated deficit of $12,610,000. Additionally, we have not generated any material revenue to date and are not profitable, and have incurred losses in each year since our inception. |
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Management has taken several actions to ensure that the Company will continue as a going concern through June 30, 2016, including, obtaining a $4.0 million cash infusion from Ampio Pharmaceuticals, Inc. (“Ampio”) during April of 2015 and an additional $10 million commitment from Ampio which will be funded prior to April 15, 2016. As of April 16, 2015, the funding from Ampio was converted into equity of the Company. We intend to seek additional capital within the next 12 months to expand our clinical development activities for Zertane and RedoxSYS. In addition, we intend to evaluate the capital markets from time to time to determine when to raise additional capital in the form of equity, convertible debt or otherwise, depending on market conditions relative to our need for funds at such time, and we will seek to raise additional capital during the next 12 months, if at all, at such time as we conclude that such capital is available on terms that we consider to be in the best interests of us and our stockholders. Lastly, we have entered into numerous distribution agreements and we expect to generate revenue during 2015 and 2016 from sales of our RedoxSYS system. Management believes that these actions will enable Rosewind to continue as a going concern through June 30, 2016. |
Newly Issued Accounting Pronouncements | Newly Issued Accounting Pronouncements |
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In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-01, “Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” The purpose of this amendment is to eliminate the concept of extraordinary items. As a result, an entity will no longer be required to separately classify, present and disclose extraordinary events and transactions. The amendment is effective for annual reporting periods beginning after December 15, 2015 and subsequent interim periods with early application permitted. Management is currently assessing the impact the adoption of ASU 2015-01 will have on our financial statements. |
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In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”). ASU 2014-15 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 ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted. Management is currently assessing the impact the adoption of ASU 2014-15 will have on our financial statements. |
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In May 2014, the FASB issued ASU 2014-09 regarding ASC Topic 606, “Revenue from Contracts with Customers”. The standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance will be effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. We are currently evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. |
Business | Business |
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Rosewind is a specialty healthcare company concentrating on developing and commercializing products for redox-modulated conditions with an initial focus on urological indications and related conditions. The Company is focused primarily on the urological disorders market, specifically sexual dysfunction and male infertility, and expects to seek expansion opportunities in other urological indications such as urological cancers. The Company maintains a focus on the RedoxSYS oxidation-reduction potential (“ORP”) system as we are focused on commercializing the RedoxSYS system into the global research market while developing numerous clinical applications for this potential first-in-class diagnostic device. |