Islet Sciences 10-Q 12 Dec 14 2015 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Oct. 31, 2014	Dec. 08, 2014
Document And Entity Information	'	'
Entity Registrant Name	'Islet Sciences, Inc	'
Entity Central Index Key	'0001425919	'
Document Type	'10-Q	'
Document Period End Date	31-Oct-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--04-30	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	66,928,724
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2015	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)	Oct. 31, 2014	Apr. 30, 2014
CURRENT ASSETS	'	'
Cash	$149,180	$1,141,380
Prepaid expenses	8,677	700
Security deposits	21,761	0
TOTAL CURRENT ASSETS	179,618	1,142,080
OTHER ASSETS	'	'
Intangible assets, net (Note 3)	1,367,000	1,367,000
Goodwill (Note 3)	2,111,107	2,111,107
Total Other Assets	3,478,107	3,478,107
TOTAL ASSETS	3,657,725	4,620,187
CURRENT LIABILITIES	'	'
Accounts payable	3,363,249	3,271,174
Accrued stock compensation expenses (Note 4)	142,177	433,346
Notes payable - related party	52,515	91,641
Total current liabilities	3,557,941	3,796,161
Deferred income taxes	547,000	547,000
Total Liabilities	4,104,941	4,343,161
Commitments and contingencies (Note 5)	'	'
STOCKHOLDERS' EQUITY (DEFICIT)	'	'
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding at October 31, 2014 and April 30, 2014	0	0
Common stock, $0.001 par value, 100,000,000 shares authorized; 66,928,724 and 67,516,253 shares issued and outstanding at October 31, 2014 and April 30, 2014, respectively	66,930	67,517
Additional paid-in capital	20,996,181	20,598,242
Accumulated deficit	-21,510,327	-20,388,733
Total stockholders' equity (deficit)	-447,216	277,026
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)	$3,657,725	$4,620,187

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Oct. 31, 2014	Apr. 30, 2014
Stockholders' Deficit	'	'
Preferred stock, par value	$0.00	$0.00
Preferred stock, authorized shares	10,000,000	10,000,000
Common stock, par value	$0.00	$0.00
Common stock, Authorized	100,000,000	100,000,000
Common stock, Issued	66,928,724	67,516,253
Common stock, outstanding	66,928,724	67,516,253

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2014	Oct. 31, 2013
Income Statement [Abstract]	'	'	'	'
REVENUE	$0	$0	$0	$0
OPERATING EXPENSES	'	'	'	'
General and Administrative	724,026	618,730	1,129,424	1,145,353
Research and development	57,509	0	115,840	766,000
Gain on early extingusihment of debt	-125,176	0	-125,176	0
Impairment loss	0	93,586	0	93,586
Total Operating Expenses	656,359	712,316	1,120,088	2,004,939
LOSS FROM OPERATIONS	-656,359	-712,316	-1,120,088	-2,004,939
OTHER INCOME (EXPENSE)	'	'	'	'
Interest expense	-706	-2,887	-1,506	-5,118
Total other expense	-706	-2,887	-1,506	-5,118
LOSS BEFORE INCOME TAXES	-657,065	-715,203	-1,121,594	-2,010,057
INCOME TAX EXPENSE	0	0	0	0
NET LOSS	($657,065)	($715,203)	($1,121,594)	($2,010,057)
NET LOSS PER COMMON SHARE,BASIC AND DILUTED	($0.01)	($0.01)	($0.02)	($0.04)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND DILUTED	66,928,724	56,811,494	66,999,256	56,763,395

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Oct. 31, 2014	Oct. 31, 2013
Cash flows from operating activities:	'	'
Net loss	($1,121,594)	($2,010,057)
Adjustment to reconcile net loss to net cash used in operating activities	'	'
Stock based compensation for services and other	113,908	14,289
Gain on early extinguishment of debt	-125,176	0
Derivative liabilities	0	-49,022
Amortization of intangible asset	0	15,202
Impairment loss	0	93,586
Accrued stock compensation expenses	22,275	423,406
Change in operating assets and liabilities:	'	'
Security deposit	-21,761	0
Prepaid expense	-7,977	50,000
Accounts payable	217,251	1,279,158
Net cash used in operating activities	-923,074	-183,438
Cash flows from investing activities:	'	'
Net cash from investing activities	0	0
Cash flows from financing activities:	'	'
Subscribed shares - not issued	0	80,000
Proceeds from notes payable-related party	0	99,919
Payments on notes payable-related party	-39,126	0
Repurchase of Stock	-30,000	0
Net cash (used in) provided by financing activities	-69,126	179,919
Net decrease in cash	-992,200	-3,519
Cash at beginning period	1,141,380	3,589
Cash at end period	149,180	70
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:	'	'
Cash paid during the period for: Interest	1,506	0
Cash paid during the period for: Income taxes	0	0
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING INFORMATION:	'	'
Shares issued for settlement of accrued expenses	$313,444	$0

Unaudited_Interim_financial_st

Unaudited Interim financial statements	6 Months Ended
	Oct. 31, 2014
Quarterly Financial Information Disclosure [Abstract]	'
Unaudited Interim financial statements	'
	Unaudited Interim financial statements
	The accompanying unaudited interim condensed consolidated financial statements have been prepared by the Islet Sciences, Inc. (“Islet Sciences”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, all adjustments (which include only normal recurring adjustments except as noted in management’s discussion and analysis of financial condition and results of operations) necessary to present fairly the financial position, results of operations and changes in cash flows have been made.
	Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these financial statements be read in conjunction with the 2014 financial statements and notes thereto included within the report on Form 10-K filed with the SEC on July 28, 2014. The results of operations for the three and six months ended October 31, 2014, are not necessarily indicative of the operating results for the full year.

1_DESCRIPTION_OF_BUSINESS

1. DESCRIPTION OF BUSINESS	6 Months Ended
	Oct. 31, 2014
Accounting Policies [Abstract]	'
1. DESCRIPTION OF BUSINESS	'
	Description of Business
	We are a biotechnology company engaged in the research, development, and commercialization of new medicines and technologies for the treatment of metabolic disease and related indications where there is significant measurable unmet medical need. The rising incidence of obesity is associated with many obesity-related health complications, including cardiovascular disease, diabetes, hyperlipidemia, hypertension, nonalcoholic fatty liver disease/steatohepatitis (NAFLD/NASH). This constellation is also recognized as the metabolic syndrome and is characterized by underlying insulin resistance.  These various diseases have interrelated risk factors and markers, such that often treatment of one disease may allow new therapies and opportunities for treatment in one of these related indications.  Our focused effort to develop new therapies and related diagnostics for metabolic related diseases establishes us as a recognized leader in a large and growing market.
	Islet Sciences was incorporated under the name One E-Commerce Corporation on September 14, 1994 in the State of Nevada. Effective February 23, 2012, the Company changed its name to Islet Sciences, Inc. On March 14, 2012, Islet Sciences acquired DiaKine Therapeutics, Inc., a Delaware corporation (“DTI”). Islet Sciences together with its subsidiaries, Islet Sciences Inc., a Delaware corporation (“ISI”), and DTI are referred to as the Company.
	Going Concern
	The condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. This contemplates the continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.  Since inception, the Company has accumulated losses of $21,510,327.  As of October 31, 2014, the Company had cash of $149,180. Further, the Company has incurred net losses of $1,121,594 and negative operating cash flows of $923,074 for the six months ended October 31, 2014. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
	The Company’s future cash requirements will depend on many factors, including continued scientific progress in its research and development programs, the scope and results of pre-clinical and clinical trials, the time and costs involved in obtaining regulatory approvals, the costs involved in filing, prosecuting and enforcing patents, competing technological and market developments, and the cost of product commercialization. The Company does not expect to generate a positive cash flow from operations at least until the commercial launch of its first product and possibly later given the expected spending for research and development programs and the cost of commercializing product candidates. The Company’s continued operations will depend on its ability to raise funds through various potential sources such as debt and equity financing, as well as the mergers noted below. There can be no assurance that such capital will be available on favorable terms or at all. If the Company is unable to raise additional capital, the Company will likely be forced to curtail its desired development activities, which would delay the development of its product candidates.
	Merger with BHV Pharma
	In March 2014, the Company announced it had signed a binding letter of intent to enter into a merger agreement with Brighthaven Ventures, LLC d/b/a BHV Pharma (“BHV”) a privately held pharmaceutical company developing the SGLT2 inhibitor remogliflozin etabonate (“remogliflozin”) for type 2 diabetes and non-alcoholic steatohepatitis (“NASH”). Remogliflozin is currently in phase II clinical development.
	On September 30, 2014, the Company and BHV entered into a merger agreement pursuant to which Islet Merger Sub will merge with and into Islet Sciences with Islet Sciences as the surviving entity, and Avogenx, our soon to be parent company, will acquire all of the outstanding membership interests of BHV in consideration for the issuance of an aggregate of 30 million shares of common stock of Avogenx to the BHV Members, to be adjusted for the Exchange Ratio, and additional milestone payments of $71 million upon the occurrence of certain development, regulatory and commercial milestones associated with the remogliflozin program, a number of shares of newly-issued Avogenx common stock equal in the aggregate to the (i) absolute dollar value of the applicable milestone, divided by (ii) the volume weighted average price of Avogenx common stock, as reported by Bloomberg L.P., for the thirty (30) trading days preceding the occurrence of each milestone. James Green and William Wilkison, the current members of BHV, are the Chief Executive Officer (“CEO”) and the Chief Operating Officer (“COO”), of the Company, respectively, and are the sole members of BHV.
	In connection with the mergers, shares of Islet Sciences common stock outstanding immediately prior to the effective time of the merger will be converted into the right to receive shares of Avogenx common stock at a conversion rate of not less than three and not more than 40 shares of Islet Sciences common stock for one share of Avogenx common stock, with the effective number of shares of Islet Sciences common stock convertible into one share of Avogenx common stock to be determined by the Islet Sciences board of directors prior to the effective time of the merger (the “Exchange Ratio”). At December 8, 2014, 66,928,724 shares of common stock of Islet Sciences were outstanding. Upon completion of the merger transactions, shares of common stock of Islet Sciences held by such holders will be cancelled. Avogenx intends to apply to quote its common stock, as successor to Islet Sciences, on the OTCQB and upon the completion of the merger transactions, Avogenx common stock will trade under a new symbol. This transaction has not been completed as of December 12, 2014.

2_SUMMARY_OF_SIGNIFICANT_ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Oct. 31, 2014
Accounting Policies [Abstract]	'
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	Basis of Presentation
	The accompanying condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
	The accompanying condensed consolidated financial statements include the accounts of Islet Sciences and its wholly-owned subsidiaries, ISI and DTI. All significant intercompany balances have been eliminated.
	Use of Estimates
	The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the recoverability of long-lived assets, the valuation of intangible assets and goodwill, the valuation of common stock, warrants and stock options and the valuation of deferred tax assets. Actual results could differ from those estimates.
	Concentration of Credit Risk
	The Company maintains its cash balances at a credit-worthy financial institution and management believes the risk of loss of cash balances to be low. The Company’s cash balances were fully insured at October 31, 2014.
	Intangible Assets
	Intangible assets represent a patent acquired from a third party, which is recorded at cost and amortized over the remaining life of the patent. This patent was fully impaired and written off during the year ended April 30, 2014. Intangible assets also include the purchase of DiaKine Therapeutics, Inc. patent portfolio and know-how as in-process research and development (“IPR&D”). IPR&D has an indefinite life and is not amortized until completion and development of the project, at which time the IPR&D becomes an amortizable asset. If the related project is not completed in a timely manner or the project is terminated or abandoned, the Company may have an impairment related to the IPR&D, calculated as the excess of the asset’s carrying value over its fair value. The intangible assets with estimable useful lives are amortized on a straight line basis over their respective estimated useful lives to their estimated residual values. This method of amortization approximates the expected future cash flow generated from their use. Definite lived intangibles are reviewed for impairment in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360, Property, Plant and Equipment (FASB ASC 360).
	Goodwill
	Goodwill represents the excess of the purchase price over the estimated fair value of the identifiable assets acquired and liabilities assumed in business acquisitions. Goodwill is reviewed at least annually for impairment in the fourth quarter of the fiscal year, at the Company level, which is the sole reporting unit, and at any other time at which events occur or circumstances indicate that the carrying amount of goodwill may exceed its fair value. Such indicators would include a significant reduction in the Company’s market capitalization, a decrease in operating results or deterioration in the Company’s financial position.
	Impairment of Long-Lived Assets
	The Company applies the provisions of FASB ASC 360-10, Property, Plant and Equipment (FASB ASC 360-10), where applicable to all long lived assets. FASB ASC 360-10 addresses accounting and reporting for impairment and disposal of long-lived assets. The Company periodically evaluates the carrying value of long-lived assets to be held and used in accordance with FASB ASC 360-10. FASB ASC 360-10 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair market values are reduced for the cost of disposal.
	Loss Per Share Data
	Basic loss per share is calculated based on the weighted average common shares outstanding during the period. Diluted earnings per share also give effect to the dilutive effect of restricted common stock and warrants. The Company does not present diluted earnings per share for years in which it incurred net losses as the effect is anti-dilutive.
	At October 31, 2014, there are warrants to exercise 12,430,798 shares of common stock were outstanding, but were not included in the computation of diluted earnings per share as their effect would be anti-dilutive. At October 31, 2013, 1,106,875 unvested shares of restricted common stock, warrants to exercise 6,466,794 shares of common stock were outstanding, but were not included in the computation of diluted earnings per share as their effect would be anti-dilutive
	Research and Development
	Research and development expenses consist of expenses incurred in performing research and development activities including salaries and benefits, facilities and other overhead expenses, contract services and other outside expenses. Research and development costs are charged to operations when incurred.
	Stock Based Compensation
	Stock awards
	FASB ASC 718, Compensation-Stock Compensation (FASB ASC 718), requires the fair value of all share-based payments to employees, including grants of stock options, to be recognized in the condensed consolidated statement of operations over the requisite service period.FASB ASC 718 requires all share based payments to employees, including grants of employee stock option, to be recognized in operating results as compensation expense based on fair value over the requisite service period of the awards. The Company determines the fair value of share-based awards using the Black-Scholes option-pricing model which uses both historical and current market data to estimate fair value. The method incorporates various assumptions such as the risk-free interest rate, expected volatility, expected dividend yield, expected forfeiture rate and expected life of the options.  As allowed by FASB ASC 718, for companies with a short period of publicly traded stock history, the Company’s estimate of expected volatility is based on the average volatilities of a sampling of three companies with similar attributes to the Company, including industry, stage of life cycle, size and financial leverage. The risk-free rate for periods within the contractual life of the stock options is based on the U.S. Treasury yield curve in effect at the time of grant valuation. The expected term of options granted is derived using the “simplified method” which computes expected term as the average of the sum of the vesting term plus the contract term as historically the Company had limited activity surrounding its options. The Company has not issued stock options for nonemployees.
	Warrants
	Warrants granted to service providers are normally valued at the fair value of the instrument on the date of the grant (grant date) and are recognized in the condensed consolidated statement of operations over the requisite service period or when they vest. When the requisite service period precedes the grant date and a market condition exists in the warrant, the Company values the warrant using the Black-Scholes option pricing model. Warrants issued in connection with capital raises are normally valued at the fair value of the instrument on the date of the grant (grant date) and valued for disclosure purposes if they meet all the criteria under FASB ASC 718. The Company values these warrant using the Black-Scholes option pricing model as well. As allowed by FASB ASC 718, for companies with a short period of publicly traded stock history, the Company’s estimate of expected volatility is based on the average volatilities of a sampling of three companies with similar attributes to the Company, including industry, stage of life cycle, size and financial leverage. The risk-free rate for periods within the contractual life of the warrant is based on the U.S. Treasury yield curve in effect at the time of grant valuation.
	Segment Reporting
	The Company currently operates in a single operating segment. In addition, financial results are prepared and reviewed by management as a single operating segment. The Company continually evaluates its operating activities and the method utilized by management to evaluate such activities and will report on a segment basis if and when appropriate to do so.
	Recent Pronouncements
	In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”, which will supersede nearly all existing revenue recognition guidance under GAAP. ASU No. 2014-09 provides that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU No. 2014-09 allows for either full retrospective or modified retrospective adoption and will become effective for the Company in the first quarter of 2018. The Company will evaluate the effects of this update on its condensed consolidated financial statements when it generates revenues.
	In June 2014, the FASB issued ASU No. 2014-10, which eliminated certain financial reporting requirements of companies previously identified as “Development Stage Entities” (Topic 915). The amendments in this ASU simplify accounting guidance by removing all incremental financial reporting requirements for development stage entities. The amendments also reduce data maintenance and, for those entities subject to audit, audit costs by eliminating the requirement for development stage entities to present inception-to-date information in the statements of income, cash flows, and shareholder equity.  Early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued (public business entities) or made available for issuance (other entities). Upon adoption, entities will no longer present or disclose any information required by Topic 915.  The Company has adopted this standard as of and for the six months ended October 31, 2014.
	In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.”  ASU No. 2014-15 will explicitly require management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances.  The new standards will be effective for all entities in the first annual period ending December 15, 2016.  Earlier adoption is permitted.  The Company is currently evaluating the impact of the adoption of ASU No. 2014-15.

3_INTANGIBLE_ASSETS_AND_GOODWI

3. INTANGIBLE ASSETS AND GOODWILL	6 Months Ended
	Oct. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]	'
3. INTANGIBLE ASSETS AND GOODWILL	'
	On March 14, 2012, the Company acquired the IPR&D from DiaKine Therapeutics, Inc. As of October 31, 2014, the $1.4 million of acquired IPR&D is classified as indefinite life asset and is not being amortized. In conjunction with this acquisition, the Company recognized $2.1 million of goodwill. The Company has not identified any triggering events at October 31, 2014 that would require additional analysis for potential impairment of its intangible assets and goodwill.

4_STOCKHOLDERS_EQUITY

4. STOCKHOLDERS' EQUITY	6 Months Ended
	Oct. 31, 2014
Equity [Abstract]	'
4. STOCKHOLDERS' EQUITY	'
	On July 31, 2014, an aggregate of 123,750 shares of its common stock issuable to members of the Board of Directors fully vested. The Company valued these shares based on the July 31, 2014 share price of $0.18 per share, or $22,275, and recorded it to accrued stock compensation expense until the common stock is issued. The Company has included these costs as general and administrative expenses within the condensed consolidated statements of operations for the six months ended October 31, 2014.
	On June 4, 2014, the Company issued 14,500 shares of common stock to a consultant pursuant to a settlement agreement.  The Company valued these shares at $48,000 and were included in accrued stock compensation expense at April 30, 2014.
	On May 9, 2014, the Company issued 742,500 shares of common stock, previously vested and included in accrued stock compensation expense, to the members of the Board of Directors as part of the approved compensation plan.
	On October 30, 2013, as part of the employee agreements with the new CEO and COO, the Board of Directors granted each of them stock options to purchase 1.5 million shares of Company common stock at an exercise price of $0.265. The stock options will vest as follows: (i) 500,000 shares vesting on the 91st day from the option grant date, (ii) 1,000,000 shares vesting in equal installments of 200,000 on the last day of each 90 day period starting from the 91st day after the option grant date.  For the three and six months ended October 31, 2014, 200,000 and 400,000 stock options vested for each the CEO and COO. The Company recorded stock-based compensation of $54,886 and $109,715 for the vested stock options as general and administrative expenses within the condensed consolidated statements of operations for the three and six months ended October 31, 2014.
	On May 22, 2014, as part of the employee agreement with the new Chief Financial Officer, the Board of Directors granted stock options to purchase 300,000 shares of Company common stock at an exercise price of $0.23. The stock options will vest over 48 months. The Company recorded stock-based compensation of $2,483 and $4,193 for the vested stock options as general and administrative expenses within the condensed consolidated statements of operations for the three and six months ended October 31, 2014.

5_COMMITMENTS_AND_CONTINGENCIE

5. COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Oct. 31, 2014
Commitments and Contingencies Disclosure [Abstract]	'
5. COMMITMENTS AND CONTINGENCIES	'
	Licenses
	On May 2, 2012, the Company, entered into a license agreement with the Yale University (“Yale”). Under the agreement, the Company received exclusive license to the technology patented by Yale. In consideration of the license granted under the agreement, the Company paid Yale a license issue royalty of $10,000 (plus a $10,000 annual renewal fee) and issued 20,000 shares of its common stock, and agreed to pay certain milestones royalties by issuing an aggregate of 160,000 shares of common stock. The Company also agreed to pay to Yale a royalty on net sales. The agreement will expire automatically, on a country-by-country basis, on the date on which the last of the claims of the subject patents expires. The agreement can be terminated by Yale if the Company defaults on its obligations under the agreement and fails to cure such default within 60 days of a written notice by Yale. The Company can terminate the agreement upon a six month notice subject to payment of all amounts due to Yale under the agreement.  During the three months ended October 31, 2014 and 2013, the Company expensed approximately $0 and $58,000, respectively, within the consolidated statements of operations. During the six months ended October 31, 2014 and 2013, the Company expensed approximately $0 and $77,000, respectively.
	On July 23, 2012, the Company entered into a licensing agreement with the Winthrop University Hospital (“Winthrop”) to license certain patents and technology. In consideration of the license granted under the agreement, the Company agreed to pay to Winthrop a license issue royalty of $10,000 (plus a $10,000 annual renewal fee) and issue 20,000 shares of its common stock, and to pay certain milestones royalties by issuing an aggregate of 160,000 shares of common stock. The Company also agreed to pay to Winthrop a royalty on net sales. The agreement was mutually terminated on September 24, 2014, with among other terms, the Company relinquishing its rights under the license and Winthrop waiving all past due amounts.  During the six months ended October 31, 2014, the Company had a gain of approximately $125,000 from the early extinguishment of debt representing the accumulated amounts past due under the licensing agreement. During the three and six months ended October 31, 2013, the Company expensed as research and development expense within the condensed consolidated statements of operations of approximately $0 and $62,000, respectively, related to this contract.
	Related Party Transactions
	The Company borrowed $25,880 from its former CEO. Promissory notes were issued for these amounts.  Repayments of $5,000 were made during the six months ended October 31, 2014. The balance at October 31, 2014 was $8,475.
	During the year ended April 30, 2014, one of the Company’s Board Members loaned the Company a total of $74,531 at a 6.5% interest rate.  A promissory note was issued for this amount. Repayments of $20,000 were made during the six months ended October 31, 2014, which included $800 of accrued interest.  The balance at October 31, 2014 was $44,040 which includes $697 of accrued interest for the three months ended October 31, 2014.
	A contractor of the Company loaned the Company $15,623. Payments of $15,623 have been made during the six months ended October 31, 2014.  The remaining balance at October 31, 2014 was $0.
	Litigation
	In April 2012, Sand Dollar Partners, LLC, a shareholder of the Company filed a complaint in the Superior Court of Arizona, Pima County against, among other parties, ISI, our wholly-owned subsidiary, John Steel, our former CEO and director, and Jonathan Lakey, our former director. In 2010, Sand Dollar invested $357,000 in ISI through the purchase of a convertible promissory note which was converted into 3,591,729 shares of the Company’s common stock. The plaintiff contends that it was entitled to issuance of additional shares and nomination of one board member.
	On October 25, 2013, the Company entered into a settlement agreement with Sand Dollar Partners, LLC.  At a hearing on February 21, 2014, the Company and Sand Dollar agreed to amend the settlement agreement whereby, Sand Dollar placed in escrow all of the Company’s common stock it held and retained a broker dealer to sell sufficient shares to receive $500,000 in cash and to pay fees to the broker dealer. Additionally, the Company agreed to issue 130,000 warrants that will vest over the next three years and make a $30,000 payment on May 15, 2014.  The Company issued these warrants and made the $30,000 payment on May 15, 2014, fully completing the settlement. The broker-dealer sold 2,247,200 shares of the Company’s escrowed stock to settle the obligation and the Company has received back the remaining 1,344,529 shares of its common stock. The sale of these shares and the return of the remaining shares had no impact on the condensed consolidated financial statements.
	On April 25, 2014, Progenitor Cell Therapy, LLC (“PCT”), filed a lawsuit against the Company in the United States District Court for the District of New Jersey (Case No. 2:14-cv-02658-SDW-MCA).  PCT’s complaint asserts various claims, including breach of contract and unjust enrichment, based on the alleged failure of the Company to pay for services and goods provided by PCT under a January 10, 2012 letter agreement.  PCT seeks an unspecified amount of compensatory and other damages, plus interest and costs.  The Company filed an answer to the complaint on June 24, 2014 denying all liability, including on the grounds that the January 10, 2012 letter agreement is unenforceable and PCT failed to provide the goods and services it stated it would provide.  In connection with its answer to PCT’s complaint, the Company filed a counterclaim against PCT and a third-party complaint against NeoStem to seek, among other things, (i) a declaration that the January 10, 2012 letter agreement is unenforceable, (ii) monetary damages and (iii) rescission of equity securities the Company previously issued to NeoStem.  The Company intends to vigorously defend the claims by PCT and prosecute its claims against PCT and NeoStem.  As the lawsuit is at an early stage, the Company cannot at this time estimate the possible loss or range of loss, if any, that may result from this lawsuit.
	In July 2012, a complaint was filed against the Company and John Steel in the United States District Court for the District of Utah, Central Division for infringement and misappropriation of a patent. The plaintiffs contend that they were the actual purchasers of the MicroIslet patent out of MicroIslet’s bankruptcy proceedings in 2009 and that the respective intellectual property rights have been never assigned to either ISI or the Company.  As a result, they allege that the Company’s claim to the ownership of the MicroIslet patent based on the assignment of the patent by its founders is baseless. The complaint sought monetary damages including punitive damages of at least $12 million, costs, attorneys' fees, and declaratory judgment. On January 8, 2013, the Court dismissed the plaintiff’s action for lack of recoverable damages. The plaintiffs refiled their claim and the Company has filed a motion with the Court for dismissal. The Company believes the plaintiffs’ claims to be without merit and will continue to vigorously defend against this action and has determined that it is unlikely any damages will be paid notwithstanding the foregoing, the parties previously entered into a settlement agreement and there is currently pending a motion to enforce such agreement, which would resolve the litigation.

6_SUBSEQUENT_EVENTS

6. SUBSEQUENT EVENTS	6 Months Ended
	Oct. 31, 2014
Subsequent Events [Abstract]	'
6. SUBSEQUENT EVENTS	'
	The Company entered into an operating lease on October 1, 2014. The lease calls for escalating payments starting at approximately $11,000 and it’s for a term of  ten years.

2_SUMMARY_OF_SIGNIFICANT_ACCOU1

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Oct. 31, 2014
Accounting Policies [Abstract]	'
Basis of Presentation	'
	The accompanying condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
	The accompanying condensed consolidated financial statements include the accounts of Islet Sciences and its wholly-owned subsidiaries, ISI and DTI. All significant intercompany balances have been eliminated.
Use of Estimates	'
	The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the recoverability of long-lived assets, the valuation of intangible assets and goodwill, the valuation of common stock, warrants and stock options and the valuation of deferred tax assets. Actual results could differ from those estimates.
Concentration of Credit Risk	'
	The Company maintains its cash balances at a credit-worthy financial institution and management believes the risk of loss of cash balances to be low. The Company’s cash balances were fully insured at October 31, 2014.
Intangible Assets	'
	Intangible assets represent a patent acquired from a third party, which is recorded at cost and amortized over the remaining life of the patent. This patent was fully impaired and written off during the year ended April 30, 2014. Intangible assets also include the purchase of DiaKine Therapeutics, Inc. patent portfolio and know-how as in-process research and development (“IPR&D”). IPR&D has an indefinite life and is not amortized until completion and development of the project, at which time the IPR&D becomes an amortizable asset. If the related project is not completed in a timely manner or the project is terminated or abandoned, the Company may have an impairment related to the IPR&D, calculated as the excess of the asset’s carrying value over its fair value. The intangible assets with estimable useful lives are amortized on a straight line basis over their respective estimated useful lives to their estimated residual values. This method of amortization approximates the expected future cash flow generated from their use. Definite lived intangibles are reviewed for impairment in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360, Property, Plant and Equipment (FASB ASC 360).
Goodwill	'
	Goodwill represents the excess of the purchase price over the estimated fair value of the identifiable assets acquired and liabilities assumed in business acquisitions. Goodwill is reviewed at least annually for impairment in the fourth quarter of the fiscal year, at the Company level, which is the sole reporting unit, and at any other time at which events occur or circumstances indicate that the carrying amount of goodwill may exceed its fair value. Such indicators would include a significant reduction in the Company’s market capitalization, a decrease in operating results or deterioration in the Company’s financial position.
Impairment of Long-Lived Assets	'
	The Company applies the provisions of FASB ASC 360-10, Property, Plant and Equipment (FASB ASC 360-10), where applicable to all long lived assets. FASB ASC 360-10 addresses accounting and reporting for impairment and disposal of long-lived assets. The Company periodically evaluates the carrying value of long-lived assets to be held and used in accordance with FASB ASC 360-10. FASB ASC 360-10 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair market values are reduced for the cost of disposal.
Loss Per Share Data	'
	Basic loss per share is calculated based on the weighted average common shares outstanding during the period. Diluted earnings per share also give effect to the dilutive effect of restricted common stock and warrants. The Company does not present diluted earnings per share for years in which it incurred net losses as the effect is anti-dilutive.
	At October 31, 2014, there are warrants to exercise 12,430,798 shares of common stock were outstanding, but were not included in the computation of diluted earnings per share as their effect would be anti-dilutive. At October 31, 2013, 1,106,875 unvested shares of restricted common stock, warrants to exercise 6,466,794 shares of common stock were outstanding, but were not included in the computation of diluted earnings per share as their effect would be anti-dilutive
Research and Development	'
	Research and development expenses consist of expenses incurred in performing research and development activities including salaries and benefits, facilities and other overhead expenses, contract services and other outside expenses. Research and development costs are charged to operations when incurred.
Stock Based Compensation	'
	Stock awards
	FASB ASC 718, Compensation-Stock Compensation (FASB ASC 718), requires the fair value of all share-based payments to employees, including grants of stock options, to be recognized in the condensed consolidated statement of operations over the requisite service period.FASB ASC 718 requires all share based payments to employees, including grants of employee stock option, to be recognized in operating results as compensation expense based on fair value over the requisite service period of the awards. The Company determines the fair value of share-based awards using the Black-Scholes option-pricing model which uses both historical and current market data to estimate fair value. The method incorporates various assumptions such as the risk-free interest rate, expected volatility, expected dividend yield, expected forfeiture rate and expected life of the options.  As allowed by FASB ASC 718, for companies with a short period of publicly traded stock history, the Company’s estimate of expected volatility is based on the average volatilities of a sampling of three companies with similar attributes to the Company, including industry, stage of life cycle, size and financial leverage. The risk-free rate for periods within the contractual life of the stock options is based on the U.S. Treasury yield curve in effect at the time of grant valuation. The expected term of options granted is derived using the “simplified method” which computes expected term as the average of the sum of the vesting term plus the contract term as historically the Company had limited activity surrounding its options. The Company has not issued stock options for nonemployees.
	Warrants
	Warrants granted to service providers are normally valued at the fair value of the instrument on the date of the grant (grant date) and are recognized in the condensed consolidated statement of operations over the requisite service period or when they vest. When the requisite service period precedes the grant date and a market condition exists in the warrant, the Company values the warrant using the Black-Scholes option pricing model. Warrants issued in connection with capital raises are normally valued at the fair value of the instrument on the date of the grant (grant date) and valued for disclosure purposes if they meet all the criteria under FASB ASC 718. The Company values these warrant using the Black-Scholes option pricing model as well. As allowed by FASB ASC 718, for companies with a short period of publicly traded stock history, the Company’s estimate of expected volatility is based on the average volatilities of a sampling of three companies with similar attributes to the Company, including industry, stage of life cycle, size and financial leverage. The risk-free rate for periods within the contractual life of the warrant is based on the U.S. Treasury yield curve in effect at the time of grant valuation.
Segment Reporting	'
	The Company currently operates in a single operating segment. In addition, financial results are prepared and reviewed by management as a single operating segment. The Company continually evaluates its operating activities and the method utilized by management to evaluate such activities and will report on a segment basis if and when appropriate to do so.
Recent Pronouncements	'
	In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”, which will supersede nearly all existing revenue recognition guidance under GAAP. ASU No. 2014-09 provides that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU No. 2014-09 allows for either full retrospective or modified retrospective adoption and will become effective for the Company in the first quarter of 2018. The Company will evaluate the effects of this update on its condensed consolidated financial statements when it generates revenues.
	In June 2014, the FASB issued ASU No. 2014-10, which eliminated certain financial reporting requirements of companies previously identified as “Development Stage Entities” (Topic 915). The amendments in this ASU simplify accounting guidance by removing all incremental financial reporting requirements for development stage entities. The amendments also reduce data maintenance and, for those entities subject to audit, audit costs by eliminating the requirement for development stage entities to present inception-to-date information in the statements of income, cash flows, and shareholder equity.  Early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued (public business entities) or made available for issuance (other entities). Upon adoption, entities will no longer present or disclose any information required by Topic 915.  The Company has adopted this standard as of and for the six months ended October 31, 2014.
	In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.”  ASU No. 2014-15 will explicitly require management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances.  The new standards will be effective for all entities in the first annual period ending December 15, 2016.  Earlier adoption is permitted.  The Company is currently evaluating the impact of the adoption of ASU No. 2014-15.

1_DESCRIPTION_OF_BUSINESS_Deta

1. DESCRIPTION OF BUSINESS (Details Narrative) (USD $)	3 Months Ended		6 Months Ended		51 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2014	Apr. 30, 2014	Apr. 30, 2013
Accounting Policies [Abstract]	'	'	'	'	'	'	'
Cash	$149,180	$70	$149,180	$70	$149,180	$1,141,380	$3,589
NET LOSS	-657,065	-715,203	-1,121,594	-2,010,057	-21,510,327	'	'
Net cash used in operating activities	'	'	($923,074)	($183,438)	'	'	'

2_SUMMARY_OF_SIGNIFICANT_ACCOU2

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	6 Months Ended
	Oct. 31, 2014	Oct. 31, 2013
Unvested shares of restricted common stock	'	'
Anti-dilutive securities not included in earnings per share	'	1,106,875
Warrants	'	'
Anti-dilutive securities not included in earnings per share	12,430,798	6,466,794

5_COMMITMENTS_AND_CONTINGENCIE1

5. COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Oct. 31, 2014	Oct. 31, 2013
Gain from early extinguishment of debt	$125,176	$0	$125,176	$0
Repayment of related party debt	'	'	39,126	0
Former CEO	'	'	'	'
Amount owed related party	8,475	'	8,475	'
Repayment of related party debt	'	'	5,000	'
Board	'	'	'	'
Amount owed related party	44,040	'	44,040	'
Repayment of related party debt	'	'	20,000	'
Contractor	'	'	'	'
Amount owed related party	0	'	0	'
Repayment of related party debt	'	'	15,623	'
Yale University	'	'	'	'
License agreement expense	0	58,000	0	77,000
Winthrop University Hospital	'	'	'	'
License agreement expense	'	0	'	62,000
Gain from early extinguishment of debt	'	'	$125,000	'