Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2016 | Sep. 12, 2016 | Dec. 31, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | DelMar Pharmaceuticals, Inc. | ||
Entity Central Index Key | 1,498,382 | ||
Current Fiscal Year End Date | --06-30 | ||
Trading Symbol | dmpi | ||
Amendment Flag | false | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2016 | ||
Entity Filer Category | Smaller Reporting Company | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 15.9 | ||
Entity Common Stock, Shares Outstanding | 10,317,193 |
Consolidated Financial Statemen
Consolidated Financial Statements - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Current assets | ||
Cash and cash equivalents | $ 6,157,264 | $ 1,754,433 |
Taxes and other receivables | 18,387 | 25,831 |
Prepaid expenses | 144,131 | 245,038 |
Deferred costs | 550,119 | |
Assets current | 6,319,782 | 2,575,421 |
Intangible assets - net | 36,017 | |
Total assets | 6,355,799 | 2,575,421 |
Current liabilities | ||
Accounts payable and accrued liabilities | 584,002 | 762,265 |
Related party payables | 43,444 | 90,820 |
Liabilities current | 627,446 | 853,085 |
Stock option liability | 175,875 | 179,445 |
Derivative liability | 693,700 | 2,364,381 |
Total liabilities | 1,497,021 | 3,396,911 |
Stockholders' accumulated equity (deficit) | ||
1 special voting share at June 30, 2016 (June 30, 2015 - 1) | ||
Common stock Authorized 50,000,000 shares, $0.001 par value 11,187,023 issued at June 30, 2016 (June 30, 2015 - 9,864,175) | 11,187 | 9,864 |
Additional paid-in capital | 28,833,105 | 17,392,800 |
Warrants | 1,658,382 | 89,432 |
Accumulated deficit | (32,237,859) | (18,613,294) |
Accumulated other comprehensive income | 21,178 | 21,178 |
Stockholders' equity, total | 4,858,778 | (821,490) |
Liabilities and equity | 6,355,799 | 2,575,421 |
Series A Preferred Stock | ||
Stockholders' accumulated equity (deficit) | ||
Preferred stock, value | 278,530 | 278,530 |
Series B Preferred Stock | ||
Stockholders' accumulated equity (deficit) | ||
Preferred stock, value | $ 6,294,255 |
Consolidated Financial Stateme3
Consolidated Financial Statements (Parenthetical) - $ / shares | Jun. 30, 2016 | Jun. 30, 2015 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock special voting shares issued | 1 | 1 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 11,187,023 | 9,864,175 |
Series A Preferred Stock | ||
Preferred Stock, shares issued | 278,530 | 278,530 |
Preferred stock, shares outstanding | 278,530 | 278,530 |
Series B Preferred Stock | ||
Preferred Stock, shares issued | 902,238 | |
Preferred stock, shares outstanding | 902,238 |
Consolidated Statement of Opera
Consolidated Statement of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Expenses | ||
Research and development | $ 3,360,878 | $ 2,555,754 |
General and administrative | 2,853,140 | 2,168,899 |
Operating expenses | 6,214,018 | 4,724,653 |
Other loss (income) | ||
Change in fair value of stock option and derivative liabilities | 2,341,660 | (627,433) |
Change in fair value of derivative liability due to change in warrant terms | 295,456 | (23,658) |
Loss on exchange of warrants | 249,062 | |
Foreign exchange loss | 13,838 | 23,415 |
Interest expense | 2,091 | |
Interest income | (108) | (363) |
Other (income) loss | 2,650,846 | (376,886) |
Net and comprehensive loss for the year | $ 8,864,864 | $ 4,347,767 |
Basic and diluted loss share | $ 0.81 | $ 0.46 |
Basic weighted average number of shares | 10,948,481 | 9,516,879 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Accumulated Equity (Deficit) - USD ($) | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive income | Preferred stock | Warrant [Member] | Accumulated deficit | |
Begining Balance at Jun. 30, 2014 | $ (901,161) | $ 8,998 | $ 13,176,472 | $ 21,178 | $ 151,451 | $ (14,259,260) | ||
Beginning Balance, Shares at Jun. 30, 2014 | 8,998,277 | |||||||
Exercise of Investor Warrants net of cash issue costs | 1,266,177 | $ 497 | 1,265,680 | |||||
Exercise of Investor Warrants net of cash issue costs, shares | 496,519 | |||||||
Reclassification of derivative liability to equity upon exercise of Investor Warrants (note 4) | 391,422 | 391,422 | ||||||
Shares issued upon the exchange of warrants | 977,897 | $ 236 | 977,661 | |||||
Shares issued upon the exchange of warrants, shares | 236,379 | |||||||
Amendment of warrants (note 4) | 975,278 | 975,278 | ||||||
Reclassification of stock option liability (note 5) | 38,038 | 38,038 | ||||||
Exercise of CA $0.50 broker warrants | 138,000 | $ 86 | 187,293 | (49,379) | ||||
Exercise of CA $0.50 broker warrants, shares | 86,250 | |||||||
Expiration of broker warrants | $ 12,640 | $ (12,640) | ||||||
Issuance of Series A preferred stock (note 3) | 278,530 | 278,530 | ||||||
Shares issued for services | $ 181,187 | $ 47 | $ 181,140 | |||||
Shares issued for services, shares | 46,750 | 46,750 | ||||||
Stock-based compensation | $ 187,176 | 187,176 | ||||||
Series A preferred stock dividend (note 3) | (6,267) | (6,267) | ||||||
Loss for the year | (4,347,767) | (4,347,767) | ||||||
Ending Balance at Jun. 30, 2015 | (821,490) | $ 9,864 | 17,392,800 | 21,178 | 278,530 | $ 89,432 | (18,613,294) | |
Ending Balance, Shares at Jun. 30, 2015 | 9,864,175 | 125,000 | ||||||
Amendment of warrants (note 4) | 3,597,032 | 3,597,032 | ||||||
Reclassification of stock option liability (note 5) | 381,497 | 381,497 | ||||||
Shares issued for services | $ 146,900 | $ 28 | 146,872 | |||||
Shares issued for services, shares | 27,500 | 27,500 | ||||||
Stock-based compensation | $ 394,133 | 394,133 | ||||||
Series A preferred stock dividend (note 3) | (8,356) | (8,356) | ||||||
Issuance of shares and warrants - net of issue costs | 1,873,920 | $ 1,069 | 1,201,662 | $ 671,189 | ||||
Issuance of shares and warrants - net of issue costs, shares | 1,069,417 | 1,069,417 | [1] | |||||
Issuance of Series B Preferred Shares - net of issue costs | 6,540,821 | 4,513,019 | 6,294,255 | $ 246,566 | (4,513,019) | |||
Issuance of Series B Preferred Shares - net of issue costs, shares | ||||||||
Warrants issued for services | 677,445 | 677,445 | ||||||
Warrants exercised for cash | 865,201 | $ 186 | 891,265 | $ (26,250) | ||||
Warrants exercised for cash, shares | 186,167 | |||||||
Cashless exercise of warrants (note 4) | 76,539 | $ 9 | 76,530 | |||||
Cashless exercise of warrants, shares (note 4) | 9,404 | (41,667) | [1] | |||||
Series B preferred stock dividend | $ 31 | 238,295 | (238,326) | |||||
Series B preferred stock dividend, shares | 30,360 | |||||||
Loss for the year | (8,864,864) | (8,864,864) | ||||||
Ending Balance at Jun. 30, 2016 | $ 4,858,778 | $ 11,187 | $ 28,833,105 | $ 21,178 | $ 6,572,785 | $ 1,658,382 | $ (32,237,859) | |
Ending Balance, Shares at Jun. 30, 2016 | 11,187,023 | |||||||
[1] | Pursuant to the Public Offering, the Company issued 1,067,417 2015 Investor Warrants at an exercise price of $3.00. The warrants expire on July 31, 2020. Of these warrants, 41,667 have been exercised during the year ended June 30, 2016. |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities | ||
(Loss) income for the period | $ (8,864,864) | $ (4,347,767) |
Items not affecting cash | ||
Amortization | 10,288 | |
Accrued interest | 2,091 | |
Change in fair value of stock option and derivative liabilities | 2,341,660 | (627,433) |
Change in fair value of derivative liability due to change in warrant terms | 295,456 | (23,658) |
Loss on exchange of warrants | 249,062 | |
Shares issued for services | 146,900 | 181,187 |
Warrants issued for services | 647,902 | |
Stock option expense | 394,132 | 186,900 |
Changes in non-cash working capital | ||
Taxes and other receivables | 7,444 | (16,259) |
Prepaid expenses | 100,907 | (10,411) |
Accounts payable and accrued liabilities | (178,263) | 517,359 |
Related party payables | (47,376) | 35,860 |
Net cash flows from operating activities | (5,145,814) | (3,853,069) |
Cash flows from investing activities | ||
Intangible assets | (16,762) | |
Net cash flows from investing activities | (16,762) | |
Cash flows from financing activities | ||
Net proceeds from the issuance of Series B Preferred Stock | 6,540,821 | |
Net proceeds from the issuance of shares and warrants | 2,453,633 | |
Proceeds from the exercise of warrants | 579,309 | 1,404,177 |
Deferred costs | (550,119) | |
Series A preferred stock dividend | (8,356) | (6,267) |
Net cash flows from financing activities | 9,565,407 | 847,791 |
Increase (decrease) in cash and cash equivalents | 4,402,831 | (3,005,278) |
Cash and cash equivalents - beginning of year | 1,754,433 | 4,759,711 |
Cash and cash equivalents - end of year | $ 6,157,264 | $ 1,754,433 |
Nature of Operations, Corporate
Nature of Operations, Corporate History and Liquidity Risk | 12 Months Ended |
Jun. 30, 2016 | |
Nature of operations, corporate history and liquidity risk [Abstract] | |
Nature of operations, corporate history and liquidity risk | 1 Nature of operations, corporate history and liquidity risk Nature of operations DelMar Pharmaceuticals, Inc. (the “Company”) is a clinical stage drug development company with a focus on the treatment of cancer. We are conducting clinical trials in the United States with our product candidate, VAL-083, as a potential new treatment for glioblastoma multiforme (“GBM”), the most common and aggressive form of brain cancer. We have also acquired certain exclusive commercial rights to VAL-083 in China where it is approved as a chemotherapy for the treatment of chronic myelogenous leukemia (“CML”) and lung cancer. In order to accelerate our development timelines and reduce technical risk, we leverage existing clinical and commercial data from a wide range of sources. We plan to seek marketing partnerships in China in order to potentially generate future royalty revenue. The address of the Company’s administrative offices is Suite 720 - 999 West Broadway, Vancouver, British Columbia, V5Z 1K5 with clinical operations located at 3485 Edison Way, Suite R, Menlo Park, California, 94025. Corporate history The Company is a Nevada corporation formed on June 24, 2009 under the name Berry Only Inc. On January 25, 2013 (the “Closing Date”), the Company entered into and closed an exchange agreement (the “Exchange Agreement”), with Del Mar Pharmaceuticals (BC) Ltd. (“DelMar (BC)”), 0959454 B.C. Ltd. (“Callco”), and 0959456 B.C. Ltd. (“Exchangeco”) and the security holders of DelMar (BC). Upon completion of the Exchange Agreement, DelMar (BC) became a wholly-owned subsidiary of the Company (the “Reverse Acquisition”). DelMar Pharmaceuticals, Inc. is the parent company of DelMar (BC), a British Columbia, Canada corporation incorporated on April 6, 2010, which is a clinical stage company with a focus on the development of drugs for the treatment of cancer. The Company is also the parent company to Callco and Exchangeco which are British Columbia, Canada corporations. Callco and Exchangeco were formed to facilitate the Reverse Acquisition. References to the Company refer to the Company and its wholly-owned subsidiaries, DelMar (BC), Callco and Exchangeco. Liquidity risk For the year ended June 30, 2016, the Company reported a loss of $8,864,864 and an accumulated deficit of $32,237,859 at that date. As at June 30, 2016, the Company had cash and cash equivalents on hand of $6,157,264. The Company does not have the prospect of achieving revenues in the near future and the Company will require additional funding to maintain its research and development projects and for general operations. There is a great degree of uncertainty with respect to the expenses the Company will incur in executing its business plan. In addition, the Company has not begun to commercialize or generate revenues from its product candidate. Consequently, management is pursuing various financing alternatives to fund the Company’s operations so it can continue as a going concern in the medium to longer term. During the year ended June 30, 2016, the Company completed a convertible preferred share private placement for net cash proceeds of $6,540,821. In addition, subsequent to June 30, 2016, the Company received $257,110 in proceeds from the exercise of share purchase warrants (note 11). We believe, based on our current estimates, that we will be able to fund our operations beyond the next twelve months. There is no assurance that our cost estimates will prove to be accurate or that unforeseen events, problems or delays will not occur that would require us to seek additional debt and/or equity funding. The ability of the Company to meet its obligations and continue the research and development of its product candidate is dependent on its ability to continue to raise adequate financing. There can be no assurance that such financing will be available to the Company in the amount required at any time or for any period or, if available, that it can be obtained on terms satisfactory to the Company. The Company may tailor its drug candidate development program based on the amount of funding the Company raises. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2016 | |
Significant accounting policies [Abstract] | |
Significant accounting policies | 2 Significant accounting policies Reverse Stock Split On May 16, 2016, the Company filed a Certificate of Change with the Secretary of State of Nevada that effected a 1-for-4 (1:4) reverse stock split of its common stock, par value $0.001 per share. The reverse split became effective on May 20, 2016. Pursuant to the Certificate of Change, the Company’s authorized common stock was decreased in the same proportion as the split resulting in a decrease from 200,000,000 authorized shares of common stock to 50,000,000 shares authorized. The par value of its common stock was unchanged at $0.001 per share, post-split. All warrants, stock options, conversion ratios, and per share information in these consolidated financial statements give retroactive effect to this 1-for-4 reverse stock split. The Company’s authorized and issued preferred stock was not affected by the split. Basis of presentation The financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”) and are presented in United States dollars. The Company’s functional currency is the United States dollar. The principal accounting policies applied in the preparation of these consolidated financial statements are set out below and have been consistently applied to all periods presented. Consolidation The consolidated financial statements include the accounts of Del Mar (BC), Callco, and Exchangeco as of and for the year ended June 30, 2016. Inter-company balances and transactions have been eliminated on consolidation. Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions about future events that affect the reported amounts of assets, liabilities, expenses, contingent assets and contingent liabilities as at the end or during the reporting period. Actual results could significantly differ from those estimates. Significant areas requiring management to make estimates include the derivative liability and the valuation of equity instruments issued for services. Further details of the nature of these assumptions and conditions may be found in the relevant notes to these consolidated financial statements. Cash and cash equivalents Cash and cash equivalents consist of cash on deposit and highly liquid short-term interest bearing securities with maturities at the date of purchase of three months or less. Cash and cash equivalents are held at recognized Canadian and United States financial institutions. Interest earned is recognized in the consolidated statement of operations and comprehensive loss. Foreign currency translation The functional currency of the Company at June 30, 2016 is the United States dollar. Transactions that are denominated in a foreign currency are remeasured into the functional currency at the current exchange rate on the date of the transaction. Any foreign-currency denominated monetary assets and liabilities are subsequently remeasured at current exchange rates, with gains or losses recognized as foreign exchange losses or gains in the consolidated statement of operations and comprehensive loss. Non-monetary assets and liabilities are translated at historical exchange rates. Expenses are translated at average exchange rates during the period. Exchange gains and losses are included in consolidated statement of operations and comprehensive loss for the period. Current and future income taxes The Company follows the liability method of accounting for income taxes. Under this method, current income taxes are recognized for the estimated income taxes payable for the current period. Income taxes are accounted for using the asset and liability method of accounting. Future income taxes are recognized for the future income tax consequences attributable to differences between the carrying values of assets and liabilities and their respective income tax bases and for loss carry-forwards. Future income tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods in which temporary differences are expected to be recovered or settled. The effect on future income tax assets and liabilities of a change in tax laws or rates is included in earnings in the period that includes the enactment date. When realization of future income tax assets does not meet the more-likely-than-not criterion for recognition, a valuation allowance is provided. Financial instruments The Company has financial instruments that are measured at fair value. To determine the fair value, we use the fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use to value an asset or liability and are developed based on market data obtained from independent sources. Unobservable inputs are inputs based on assumptions about the factors market participants would use to value an asset or liability. The three levels of inputs that may be used to measure fair value are as follows: ● Level one - inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities; ● Level two - inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals; and ● Level three - unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The Company’s financial instruments consist of cash and cash equivalents, taxes and other receivables, accounts payable and accrued liabilities, related party payables and derivative liability. The carrying values of cash and cash equivalents, taxes and other receivables, accounts payable and accrued liabilities and related party payables approximate their fair values due to the immediate or short-term maturity of these financial instruments. Derivative liability The Company accounts for certain warrants under the authoritative guidance on accounting for derivative financial instruments indexed to, and potentially settled in, a company’s own stock, on the understanding that in compliance with applicable securities laws, the warrants require the issuance of securities upon exercise and do not sufficiently preclude an implied right to net cash settlement. The Company classifies these warrants on its balance sheet as a derivative liability which is fair valued at each reporting period subsequent to the initial issuance. The Company has used a simulated probability valuation model to value the warrants. Determining the appropriate fair-value model and calculating the fair value of warrants requires considerable judgment. Any change in the estimates (specifically probabilities) used may cause the value to be higher or lower than that reported. The estimated volatility of the Company’s common stock at the date of issuance, and at each subsequent reporting period, is based on the historical volatility of similar life sciences companies. The risk-free interest rate is based on rates published by the government for bonds with a maturity similar to the expected remaining life of the warrants at the valuation date. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. a) Fair value of derivative liability The derivative is not traded in an active market and the fair value is determined using valuation techniques. The Company uses judgment to select a variety of methods to make assumptions that are based on specific management plans and market conditions at the end of each reporting period. The Company uses a fair value estimate to determine the fair value of the derivative liability. The carrying value of the derivative liability would be higher or lower as management estimates around specific probabilities change. The estimates may be significantly different from those recorded in the consolidated financial statements because of the use of judgment and the inherent uncertainty in estimating the fair value of these instruments that are not quoted in an active market. All changes in the fair value are recorded in the consolidated statement of operations and comprehensive loss each reporting period. This is considered to be a Level 2 financial instrument. The Company has the following liabilities under the fair value hierarchy: June 30, 2016 Liability Level 1 Level 2 Level 3 Derivative liability - 693,700 - June 30, 2015 Liability Level 1 Level 2 Level 3 Derivative liability - 2,364,381 - Out- of- period adjustment The consolidated statement of operations and comprehensive loss for the year ended June 30, 2016 includes a $100,868 out-of-period adjustment related to the re-measuring of the stock option liability that arose during the year ended June 30, 2015. This adjustment increased the stock based compensation expense and the corresponding stock option liability by $100,868. The impact of these adjustments to current and prior periods is not material. Intangible assets Website development costs Website development costs are stated at cost less accumulated amortization. The Company capitalizes website development costs associated with graphics design and development of the website application and infrastructure. Costs related to planning, content input, and website operations are expensed as incurred. The Company amortizes website development costs on a straight-line basis over three years. The website costs consist of $16,762 in cash costs and $29,543 in non-cash consideration in the form of the issuance of warrants. The Company recognized $10,288 and $0 respectively, in amortization during the years ended June 30, 2016 and 2015. Patents Expenditures associated with the filing, or maintenance of patents, licensing or technology agreements are expensed as incurred. Costs previously recognized as an expense are not recognized as an asset in subsequent periods. Once the technology has achieved commercialization, patent costs will be deferred and amortized over the remaining life of the related patent. Research and development costs (including clinical trial expenses) Research and development expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with product research and development. Research and development expenses also include third-party development and clinical trial expenses noted below. Such costs related to product research and development are included in research and development expense until the point that technological feasibility is reached, which for our drug candidate, is generally shortly before the drug is approved by the relevant food and drug administration. Once technological feasibility is reached, such costs are capitalized and amortized to cost of revenue over the estimated life of the product. Clinical trial expenses are a component of research and development costs and include fees paid to contract research organizations, investigators and other service providers who conduct specific research for product development activities on behalf of the Company. The amount of clinical trial expenses recognized in a period related to service agreements is based on estimates of the work performed on an accrual basis. These estimates are based on patient enrollment, services provided and goods delivered, contractual terms and experience with similar contracts. The Company monitors these factors to the extent possible and adjusts our estimates accordingly. Prepaid expenses or accrued liabilities are adjusted if payments to service providers differ from estimates of the amount of service completed in a given period. Research and development costs are expensed in the period incurred. At June 30, 2016 and 2015 all research and development costs have been expensed. Shares for services The Company has issued equity instruments for services provided by employees and non-employees. The equity instruments are valued at the fair value of the instrument granted. Stock options The Company accounts for these awards under Accounting Standards Codification (“ASC”) 718, “Compensation - Stock Compensation” (“ASC 718”). ASC 718 requires measurement of compensation cost for all stock-based awards at fair value on the date of grant and recognition of compensation over the requisite service period for awards expected to vest. Compensation expense for unvested options to non-employees is revalued at each period end and is being amortized over the vesting period of the options. The determination of grant-date fair value for stock option awards is estimated using the Black-Scholes model, which includes variables such as the expected volatility of the Company’s share price, the anticipated exercise behavior of its grantee, interest rates, and dividend yields. These variables are projected based on the Company’s historical data, experience, and other factors. Changes in any of these variables could result in material adjustments to the expense recognized for share-based payments. Such value is recognized as expense over the requisite service period, net of estimated forfeitures, using the straight-line attribution method. The estimation of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from current estimates, such amounts are recorded as a cumulative adjustment in the period estimates are revised. The Company considers many factors when estimating expected forfeitures, including type of awards granted, employee class, and historical experience. Actual results and future estimates may differ substantially from current estimates. Comprehensive income In accordance with ASC 220, “Comprehensive Income” (“ASC 220”) all components of comprehensive income, including net loss, are reported in the financial statements in the period in which they are recognized. Comprehensive income is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Net loss and other comprehensive (income) loss, including foreign currency translation adjustments, are reported, net of any related tax effect, to arrive at comprehensive income. No taxes were recorded on items of other comprehensive income. Loss per share Income or loss per share is calculated based on the weighted average number of common shares outstanding. For the years ended June 30, 2016 and 2015 diluted loss per share does not differ from basic loss per share since the effect of the Company’s warrants, stock options, and convertible preferred shares are anti-dilutive. At June 30, 2016, potential common shares of 5,468,876 (2015 – 4,266,968) related to outstanding warrants and stock options and 2,255,595 (2015 – 0) relating to outstanding convertible preferred shares were excluded from the calculation of net loss per common share because their inclusion would be anti-dilutive. Segment information The Company identifies its operating segments based on business activities, management responsibility and geographical location. The Company operates within a single operating segment being the research and development of cancer indications, and operates in one geographic area, being North America. All of the Company’s assets are located in either Canada or the United States. Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption. ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this update change existing guidance related to accounting for employee share-based payments affecting the income tax consequences of awards, classification of awards as equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual periods, with early adoption permitted. The Company is currently evaluating the potential impact of the adoption of this standard. ASU 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the consolidated balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated income statement. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the potential impact of the adoption of this standard. ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The updated guidance enhances the reporting model for financial instruments, and requires entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and the separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. The guidance is effective for annual and interim reporting periods beginning after December 15, 2017. The Company is currently assessing this standard for its impact on future reporting periods. ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”) The guidance requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. The ASU simplifies the current guidance in ASC Topic 740, Income Taxes, which requires entities to separately present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for all entities as of the beginning of an interim or annual reporting period. The Company expects that this guidance will have no effect on the Consolidated Financial Statements. Accounting Standards Update (“ASU”) 2014-15 - Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern The objective of the guidance is to require management to explicitly assess an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. In connection with each annual and interim period, management will assess if there is substantial doubt about an entity's ability to continue as a going concern within one year after the issuance date of an entity’s financial statements. The new standard defines substantial doubt and provides examples of indicators thereof. The definition of substantial doubt incorporates a likelihood threshold of "probable" similar to the current use of that term in U.S. GAAP for loss contingencies. The new standard will be effective for all entities in the first annual period ending after December 15, 2016 (December 31, 2016 for calendar year-end entities). Earlier application is permitted. The Company is currently assessing this standard for its impact on future reporting periods. |
Valent Technologies LLC agreeme
Valent Technologies LLC agreements | 12 Months Ended |
Jun. 30, 2016 | |
Valent Technologies LLC agreements [Abstract] | |
Valent Technologies LLC agreements | 3 Valent Technologies LLC agreements On September 12, 2010 the Company entered into a Patent Assignment Agreement (the “Assignment Agreement”) with Valent Technologies, LLC (“Valent”) pursuant to which under certain circumstances Valent agreed to assign, convey and transfer to the Company all its right, title and interest in and to the patents for VAL-083 owned by Valent. As part of the Assignment Agreement, the Company issued Valent 125,000 share purchase warrants exercisable at CDN $2.00 until February 1, 2017. The Company has since satisfied the requirements under the Assignment Agreement and now owns all rights and title to VAL-083 and is responsible for the drug’s further development and commercialization. In accordance with the terms of the Assignment Agreement, Valent is entitled to receive a future royalty on revenues derived from the development and commercialization of VAL-083. In the event that the Company terminates the agreement, the Company may be entitled to receive royalties from Valent’s subsequent development of VAL-083 depending on the development milestones the Company has achieved prior to the termination of the Assignment Agreement. On September 30, 2014, the Company entered into an exchange agreement (the “Valent Exchange Agreement”) with Valent. Pursuant to the Valent Exchange Agreement, Valent exchanged its then loan payable in the outstanding amount of $278,530 (including aggregate accrued interest to September 30, 2014 of $28,530), issued to Valent by DelMar (BC), for 278,530 shares of the Company’s Series A Preferred Stock (note 5). One of the Company’s officers and directors is a principal of Valent and as result Valent is a related party to the Company (note 6). |
Derivative Liability
Derivative Liability | 12 Months Ended |
Jun. 30, 2016 | |
Derivative liability [Abstract] | |
Derivative liability | 4 Derivative liability The Company has issued common stock purchase warrants. Based on the terms of certain of these warrants the Company determined that the warrants were a derivative liability which is recognized at fair value at the date of the transaction and re-measured at fair value each reporting period with the changes in fair value recorded in the consolidated statement of operations and comprehensive loss. 2013 Investor Warrants During the quarter ended March 31, 2013, the Company entered into and closed a series of subscription agreements with accredited investors (the “Investors”), pursuant to which the Company issued an aggregate of 3,281,250 units at a purchase price of $3.20 per unit, for aggregate gross proceeds of $10,500,000 (the “Private Offering”). Each unit consists of one share of common stock and one five-year warrant (the “2013 Investor Warrants”) to purchase one share of common stock at an exercise price of $3.20. The exercise price of the 2013 Investor Warrants was subject to adjustment in the event that the Company issues common stock at a price lower than the exercise price, subject to certain exceptions. The 2013 Investor Warrants are redeemable by the Company at a price of $0.001 per 2013 Investor Warrant at any time subject to the conditions that (i) the Company’s common stock has traded for twenty (20) consecutive trading days with a closing price of at least $6.40 per share with an average trading volume of 50,000 shares per day, and (ii) the underlying shares of common stock are registered for resale. As a result of the financing completed by the Company during the quarter ended September 30, 2015 (note 5) the exercise price of the 2013 Investor Warrants was reduced from $3.20 to $3.144 resulting in the recognition of a loss of $8,098. Year ended June 30, 2016 2013 Investor Warrant exercises During the year ended June 30, 2016, 144,500 2013 Investor Warrants were exercised for cash at an exercise price of $3.144 per share. The Company received proceeds of $454,308 from these exercises. The warrants that have been exercised were revalued at their exercise date and then the reclassification to equity was recorded resulting in $285,895 of the derivative liability being reclassified to equity. 2013 Investor Warrant amendments During the year ended June 30, 2016, the Company entered into amendments (the “2013 Investor Warrant Amendments”) with the holders of certain 2013 Investor Warrants. Pursuant to the 2013 Investor Warrant Amendments, 767,560 2013 Investor Warrants were amended to extend the expiration date to March 31, 2019 and remove the provision requiring an adjustment of the exercise price in the event the Company sells common stock at a purchase price lower than the current warrant exercise price. As a result of the 2013 Investor Warrant Amendments, the Company has recognized a loss of $31,491 and has reclassified $1,319,480 from the derivative liability to equity. The 2013 Investor Warrants were revalued to the date of the amendment and were then reclassified to equity. Year ended June 30, 2015 2013 Investor Warrant exercises During the year ended June 30, 2015 the Company concluded a tender offer whereby the holders of the 2013 Investor Warrants had the opportunity to exercise their warrants at an exercise price of $2.60. Under the tender offer, a total of 190,557 warrants were exercised for net proceeds of $470,676 after payment by the Company of a 5% warrant agent fee of $24,772. Also, during the year ended June 30, 2015, an additional 305,962 warrants were exercised at an exercise price of $2.60 per warrant. The Company received proceeds of $795,501 from these exercises. As a result of all of the 2013 Investor Warrant exercises during the year ended June 30, 2015, the Company received net proceeds of $1,266,177 from the exercise of 496,519 warrants. The 2013 Investor Warrants that have been exercised were revalued at their exercise date and then the reclassification to equity was recorded resulting in $391,422 of the derivative liability being reclassified to equity. 2013 Investor Warrant exchanges Pursuant to an opportunity to receive one share of common stock for every three 2013 Investor Warrants held by investors, during the year ended June 30, 2015 the Company issued 236,379 shares of common stock in exchange for 709,135 2013 Investor Warrants. The 2013 Investor Warrants that were exchanged were revalued at their exchange date and then a reclassification to equity was recorded. The reclassification to equity upon the exchange was $728,835. The Company recognized an aggregate loss of $249,062 at the time of the exchanges. 2013 Placement Agent Warrants Also in connection with the Reverse Acquisition (note 1), on March 6, 2013 the Company issued 1,312,500 warrants (the “2013 Placement Agent Warrants”) that are exercisable at $3.20 per share until March 6, 2018 but can be exercised on a cashless basis. The exercise price of the 2013 Placement Agent Warrants was subject to adjustment in the event that the Company issues common stock at a price lower than the exercise price, subject to certain exceptions. As a result of the financing completed by the Company during the quarter ended September 30, 2015 (note 5) the exercise price of the 2013 Placement Agent Warrants was reduced from $3.20 to $3.144 resulting in a loss of $13,467. On December 30, 2015, the Company entered into amendments (the “2013 Placement Agent Warrant Amendments”) with the holders of the 2013 Placement Agent Warrants. Pursuant to the 2013 Placement Agent Warrant Amendments, 1,262,500 2013 Placement Agent Warrants were amended to extend the expiration date to June 30, 2019 and remove the provision requiring an adjustment of the exercise price in the event the Company sells common stock at a purchase price lower than the current warrant exercise price. As a result of the 2013 Placement Agent Warrant Amendments, the Company has recognized a loss of $242,400 and has reclassified $2,277,550 from the derivative liability to equity resulting in an increase to equity of $2,035,150. The 2013 Placement Agent Warrants were revalued to the date of the amendment and were then reclassified to equity. Dividend Warrants Certain warrants issued pursuant to a warrant dividend (the “Dividend Warrants”) are exercisable at $5.00 per share until January 24, 2018. The Dividend Warrants are exercisable at such times as the underlying shares of common stock are registered for resale. Upon issuance the Dividend Warrants were redeemable by the Company at a price of $0.001 per Dividend Warrant at any time commencing 18 months following the date of issuance subject to the conditions that (i) the Company’s common stock has traded for twenty (20) consecutive trading days with a closing price of at least $10.00 per share and (ii) the underlying shares of common stock are registered for resale. Subject to the conditions set forth therein, the Dividend Warrants may be redeemed by the Company upon not less than sixty (60) days nor more than ninety (90) days prior written notice. On October 31, 2014, the Company and all of its Dividend Warrant holders entered into amendments to the Dividend Warrants such that the Company’s redemption rights and certain provisions of the Dividend Warrant agreements relating to potential cash settlement of the Dividend Warrants were removed. The Dividend Warrants were revalued to the date of the amendment on October 31, 2014 which resulted in a reclassification to equity of $975,278. 2015 Agent Warrants As part of the Company’s financing completed during the quarter ended September 30, 2015 (note 5), the Company issued 23,477 warrants to certain placement agents (“2015 Agent Warrants”). The 2015 Agent Warrants are exercisable at a per share price equal to $3.00 during the five-year period commencing six months from the effective date of the Public Offering, which period shall not extend further than five years from the effective date of the Public Offering. Therefore, all 2015 Agent Warrants expire on July 15, 2020. During the year ended June 30, 2016, 31 2015 Agent Warrants were exercised on a cashless basis for 21 shares of common stock resulting in a reclassification to equity of $133. Warrants issued for services During the year ended December 31, 2013, the Company issued 75,000 warrants for services. The warrants were issued on September 12, 2013 and are exercisable on a cashless basis at an exercise price of $7.04 for five years. During the year ended June 30, 2016, 31,250 warrants were exercised on a cashless basis for 9,383 shares of common stock resulting in a reclassification to equity of $76,406. The Company’s derivative liability is summarized as follows: June 30, June 30, Opening balance 2,364,381 5,111,007 Change in fair value of warrants 1,963,733 (627,433 ) Change in fair value due to change in warrant terms 295,456 (23,658 ) Reclassification to equity upon amendment of warrants (3,597,030 ) (975,278 ) Issuance of 2016 Agent Warrants 29,594 - Reclassification to equity upon exchange of warrants - (728,835 ) Reclassification to equity upon exercise of warrants (362,434 ) (391,422 ) Closing balance 693,700 2,364,381 |
Stockholders' Equity (Deficienc
Stockholders' Equity (Deficiency) | 12 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity [Abstract] | |
Stockholders' equity (deficiency) | 5 Stockholders’ equity (deficiency) Preferred stock Authorized 5,000,000 preferred shares, $0.001 par value Issued and outstanding Special voting shares – at June 30, 2016 and 2015 – 1 Series A shares – at June 30, 2016 – 278,530 (June 30, 2015 – 278,530) Series B shares – at June 30, 2016 – 902,238 (June 30, 2015 – none) Series B Preferred Shares During the year ended June 30, 2016 the Company entered into Securities Purchase Agreements, pursuant to which it issued an aggregate of 902,238 shares of Series B Preferred Stock (the “Series B Preferred Shares”) at a purchase price of at $8.00 per share for total gross proceeds of approximately $7.2 million. Each share of Series B Preferred Stock is convertible into 2.5 shares of common stock equating to a conversion price of $3.20 (the “Conversion Price”) and will automatically convert to common stock at the earlier of 24 hours following regulatory approval of VAL-083 with a minimum closing bid price of $8 or five years from the final closing date. The holders of the Series B Preferred Stocks are entitled to an annual cumulative, in arrears dividend at the rate of 9% payable quarterly. The 9% dividend shall accrue quarterly commencing on the date of issue and be payable quarterly on June 30, September 30, December 31, and March 31 of each year commencing on June 30, 2016. Dividends shall be payable solely by delivery of shares of common stock, in an amount for each holder equal to the aggregate dividend payable to such holder with respect to the shares of Series B Preferred Stock held by such holder divided by the Conversion Price. The Series B Preferred Shares do not contain any repricing features. In addition, the Company and the holders entered into a royalty agreement, pursuant to which the Company will pay the holders of the Series B preferred shares, in aggregate, a low, single-digit royalty based on their pro rata ownership of the Series B preferred shares on products sold directly by the Company or sold pursuant to a licensing or partnering arrangement (the “Royalty Agreement”). Upon conversion of a holder’s shares to common stock, such holder shall no longer receive ongoing royalty payments under the Royalty Agreement but will be entitled to receive any residual royalty payments that have vested. Rights to the royalties shall vest during the first three years following the applicable closing date, in equal thirds to holders of the Series B Preferred Stock on each of the three vesting dates, upon which vesting dates such royalty amounts shall become “Vested Royalties”. The Company engaged certain placement agents for the sale of a portion of the Series B Preferred Stock. Under the Company’s engagement agreements with these placement agents, the Company agreed to pay up to an 8% cash commission and issue warrants to purchase shares of common stock (the “2016 Agent Warrants”) up to the number of shares of our common stock equal to 8% of the aggregate number of shares underlying the Series B Preferred Stock sold in the offering by such placement agents. Pursuant to the placement agent agreements the Company paid a total cash commission of $339,032 and issued 103,963 2016 Agent Warrants. The 2016 Agent Warrants are exercisable at a per share price equal to $4.00 and expire on May 12, 2021 In addition to the cash commission the Company also incurred additional cash issue and closing costs of $338,051 resulting in net cash proceeds of approximately $6.5 million. At the time of the issuance of the Series B Preferred Shares, they contained a preferential conversion feature which resulted from the Company’s share price exceeding the effective conversion price of the Series B preferred shares at the time of their issuance. The Company has recognized an aggregate $4,513,019 in relation to the beneficial conversion as an increase in additional paid-in capital and a corresponding direct increase in accumulated deficit. The Company issued 30,360 shares of common stock on June 30, 2016 as a dividend on the Series B Preferred Shares and recognized $238,326 as a direct increase in accumulated deficit. Series A Preferred Shares Effective September 30, 2014 pursuant to the Company’s Valent Exchange Agreement (note 3), the Company filed the Series A Certificate of Designation with the Secretary of State of Nevada. Pursuant to the Series A Certificate of Designation, the Company designated 278,530 shares of preferred stock as Series A Preferred Stock. The shares of Series A Preferred Stock have a stated value of $1.00 per share (the “Series A Stated Value”) and are not convertible into common stock. The holder of the Series A Preferred Stock will be entitled to dividends at the rate of 3% of the Series A Stated Value per year, payable quarterly in arrears. Upon any liquidation of the Company, the holder of the Series A Preferred Stock will be entitled to be paid, out of any assets of the Company available for distribution to stockholders, the Series A Stated Value of the shares of Series A Preferred Stock held by such holder, plus any accrued but unpaid dividends thereon, prior to any payments being made with respect to the common stock. Special voting shares In connection with the Exchange Agreement (note 1), on the Closing Date, the Company, Callco, Exchangeco and Computershare Trust Company of Canada (the “Trustee”) entered into a voting and exchange trust agreement (the “Trust Agreement”). Pursuant to the Trust Agreement, Company issued one share of Special Voting Preferred Stock (the “Special Voting Share”) to the Trustee, and the parties created a trust for the Trustee to hold the Special Voting Share for the benefit of the holders of the shares of Exchangeco acquired as part of the Reverse Acquisition (the “Exchangeable Shares”) (other than the Company and any affiliated companies) (the “Beneficiaries”). Pursuant to the Trust Agreement, the Beneficiaries will have voting rights in the Company equivalent to what they would have had they received shares of common stock in the same amount as the Exchangeable Shares held by the Beneficiaries. In connection with the Exchange Agreement and the Trust Agreement, on January 17, 2013, the Company filed a certificate of designation of Special Voting Preferred Stock (the “Special Voting Certificate of Designation”) with the Secretary of State of Nevada. Pursuant to the Special Voting Certificate of Designation, one share of the Company’s blank check preferred stock was designated as Special Voting Preferred Stock. The Special Voting Preferred Stock votes as a single class with the common stock and is entitled to a number of votes equal to the number of Exchangeable Shares of Exchangeco outstanding as of the applicable record date (i) that are not owned by the Company or any affiliated companies and (ii) as to which the holder has received voting instructions from the holders of such Exchangeable Shares in accordance with the Trust Agreement. The Special Voting Preferred Stock is not entitled to receive any dividends or to receive any assets of the Company upon any liquidation, and is not convertible into common stock of the Company. The voting rights of the Special Voting Preferred Stock will terminate pursuant to and in accordance with the Trust Agreement. The Special Voting Preferred Stock will be automatically cancelled at such time as the share of Special Voting Preferred Stock has no votes attached to it. Common stock Authorized 50,000,000 common shares, $0.001 par value Issued and outstanding at June 30, 2016 – 11,187,023 (2015 – 9,864,175). The issued and outstanding common shares at June 30, 2016 include 1,014,011 (2015 – 1,064,010) shares of common stock on an as-exchanged basis with respect to the Exchangeable Shares (note 1). a) Public offering financing On July 15, 2015 the Company’s Registration Statement on Form S-1 relating to a public offering by the Company of common stock and common stock purchase warrants (the “Public Offering”) was declared effective by the Securities and Exchange Commission. Pursuant to the Public Offering, the Company issued 1,069,417 shares of common stock at $2.40 per share and 1,069,417 warrants (the “2015 Investor Warrants”) to purchase shares of common stock at $0.004 per warrant for total gross proceeds of $2,566,660. The 2015 Investor Warrants are exercisable at $3.00 per share for a period of five years until they expire on July 31, 2020. The Company engaged certain placement agents for the sale of a portion of the shares and 2015 Investor Warrants. Under the Company’s engagement agreements with these placement agents, the Company agreed to pay up to a 7% cash commission and issue warrants to purchase shares of common stock (the “2015 Agent Warrants”) up to the number of shares of our common stock equal to 5% of the aggregate number of shares sold in the Offering by such placement agents. Pursuant to the placement agent agreements the Company paid a total cash commission of $80,575 and issued 23,477 2015 Agent Warrants (note 4). The 2015 Agent Warrants are exercisable at a per share price equal to $3.00 during the five-year period commencing six months from the effective date of the Public Offering, which period shall not extend further than five years from the effective date of the 2015 Public Offering. Therefore, all 2015 Agent Warrants expire on July 15, 2020. In addition to the cash commission of $80,575 the Company also incurred additional cash issue and closing costs of $582,511 (including costs deferred at June 30, 2015 of $550,119) resulting in net cash proceeds of $1,903,514. The 2015 Agent Warrants have been recognized as non-cash issue costs of $29,594. b) Shared issued for services During the year ended June 30, 2016 the Company issued 27,500 (June 30, 2015 – 46,750) shares of common stock for services resulting in the recognition of $146,900 (June 30, 2015 - $181,187) in expense. All of the shares issued for services for the years ended June 30, 2016 and 2015 have been recognized as general and administrative expense. Stock options The Company’s Board of Directors has approved a stock option plan (the “Plan”). Under the Plan the number of common shares that will be reserved for issuance to officers, directors, employees and consultants under the Plan will not exceed 7.5% of the share capital of the Company on a fully diluted basis. The requisite service period of the options ranges from six months to three years and also has a range of six months to three years contractual term. In the event of the sale of 66 2/3% of the equity securities of the Company where equity securities include shares, warrants, stock options, and any convertible securities of the Company, any options not yet granted under the Plan shall be deemed granted to the principal founders of the Company on a pro-rata basis in accordance with their ownership of the Company on a fully-diluted basis immediately prior to the closing of such a sale. The following table sets forth the options outstanding under the Plan as of June 30, 2016: Number of Weighted Balance – June 30, 2014 796,804 3.84 Granted 150,000 3.52 Cancelled (30,000 ) 4.20 Forfeited (18,054 ) 2.12 Balance – June 30, 2015 898,750 3.76 Granted 177,500 3.96 Cancelled (12,500 ) 4.20 Forfeited (207,500 ) 4.02 Balance - June 30, 2016 856,250 3.77 The following table summarizes stock options currently outstanding and exercisable at June 30, 2016: Exercise price $ Number Weighted Number 1.55 68,750 5.64 68,750 2.00 87,500 5.64 87,500 2.96 45,000 8.60 45,000 3.20 30,000 8.75 30,000 3.32 30,000 9.59 4,139 3.60 25,000 9.72 2,361 3.76 45,000 9.50 7,458 4.00 12,500 6.60 12,500 4.20 412,500 7.13 406,354 4.48 30,000 9.52 4,806 4.76 25,000 9.84 1,366 6.16 15,000 6.75 15,000 9.20 30,000 6.92 30,000 856,250 715,234 Included in the number of stock options outstanding are 25,000 stock options granted at an exercise price of CA$ $2.00. The exercise prices for these stock options shown in the above table have been converted to $1.55 US$ using the period ending closing exchange rate. Certain stock options have been granted to non-employees and will be revalued at each reporting date until they have fully vested. The stock options have been valued using a Black-Scholes pricing model using the following assumptions: June 30, June 30, Dividend rate 0 % 0 % Volatility 84% to 118 % 67% to 85 % Risk-free rate 1.00 % 1.00 to 1.25 % Term – years 0.5 to 3.0 0.5 to 2.5 The Company has recognized the following amounts as stock-based compensation expense for the periods noted: Years ended June 30, 2016 2015 Research and development 263,509 36,284 General and administrative 130,623 150,616 394,132 186,900 Of the total stock option expense of $394,132 (2015 - $186,900) for the year ended June 30, 2016, all of it has been recognized as additional paid in capital. For the year ended June 30, 2015 $225,214 has been recognized as additional paid in capital and $38,314 as a reduction to stock option liability. The aggregate intrinsic value of stock options outstanding at June 30, 2016 was $3,486,910 (2015 - $203,528) and the aggregate intrinsic value of stock options exercisable at June 30, 2016 was $2,941,031 (2015 - $203,528). As of June 30, 2016 there was $507,438 in unrecognized compensation expense that will be recognized over the next three years. No stock options granted under the Plan have been exercised to June 30 2016. Upon the exercise of stock options new shares will be issued. A summary of status of the Company’s unvested stock options as of June 30, 2016 under all plans is presented below: Number of Weighted Weighted Unvested at June 30, 2014 183,920 3.92 2.16 Granted 150,000 3.52 1.28 Vested (105,277 ) 3.76 1.92 Forfeited (18,053 ) 2.12 1.44 Cancelled (30,000 ) 4.20 2.28 Unvested at June 30, 2015 180,590 3.80 1.64 Granted 177,500 3.96 2.24 Vested (147,293 ) 3.71 2.09 Forfeited (65,093 ) 3.67 0.91 Cancelled (4,688 ) 4.20 2.28 Unvested at June 30, 2016 141,016 3.17 1.73 The aggregate intrinsic value of unvested stock options at June 30, 2015 was $547,279 (2015 - $0). The unvested stock options have a remaining weighted average contractual term of 9.51 years. Stock option liability Certain of the Company’s stock options have been issued in CA$. Of these, a portion have been classified as a stock option liability which is revalued at each reporting date. During the year ended June 30, 2016, the Company recognized a revaluation loss $377,927 relating to the revaluation of these stock options. On June 30 2016, the Company amended 87,500 of these stock options held by three optionees such that the exercise price of the options was adjusted to be denominated in US$. No other terms of the stock options were amended. As a result of the amendment, $351,750 was reclassified to equity at June 30, 2016. Subsequent to June 30, 2016, an additional 43,750 stock options were amended in the same manner resulting in the remaining stock option liability being reclassified to equity (note 11). Warrants Number of Amount Balance – June 30, 2014 234,250 151,451 Expiry of warrants (i) (23,000 ) (12,640 ) Exercise of warrants (ii) (86,250 ) (49,379 ) Balance – June 30, 2015 125,000 89,432 Issuance of 2015 Investor Warrants (iii) 1,069,417 671,189 Exercise of 2015 Investor Warrants (iii) (41,667 ) (26,250 ) 2016 Agent Warrants (iv) 103,963 246,566 Warrants issued for services (v) 265,000 677,445 Balance - June 30, 2016 1,5217,713 1,658,382 i) Broker warrants were issued as finder’s fees in relation to the issuance of certain securities. The warrants had an exercise price of CA$2.00 per warrant. ii) The Company has issued 86,250 warrants for investor relations services. The warrants were issued on February 1, 2012 and vested in 12 equal installments over a 12-month period commencing on March 1, 2012. The warrants have an exercise price of CA$2.00 per warrant. The 86,250 warrants were exercised during the year ended June 30, 2015 for cash proceeds of $138,000 (CA$ 172,500). iii) Pursuant to the Public Offering, the Company issued 1,067,417 2015 Investor Warrants at an exercise price of $3.00. The warrants expire on July 31, 2020. Of these warrants, 41,667 have been exercised during the year ended June 30, 2016. iv) As part of its Series B Preferred Share financing the Company issued 103,963 2016 Agent Warrants that are exercisable at a price of $4.00 until May 12, 2021. v) The Company has issued 265,000 warrants for services at an exercise price of $3.00. The warrants expire at various dates as noted below. Certain of the Company’s warrants have been recognized as a derivative liability (note 4). The following table summarizes all of the Company’s outstanding warrants as of June 30, 2016: Description Number Issued for patents (i) 125,000 2013 Investor Warrants (ii) 948,716 Dividend Warrants (iii) 812,502 2013 Placement Agent (iv) 1,262,500 Issued for services (v) 308,750 2015 Investor Warrants 1,027,750 2015 Agent Warrants (note 4) 23,446 2016 Agent Warrants 103,963 Closing balance - June 30, 2016 4,612,627 i) The Company issued 125,000 warrants to Valent (note 3). The warrants have an exercise price of CA$2.00 per warrant and expire February 1, 2017. ii) The Investor Warrants were issued as part of the Company’s $3.20 unit offering. They were issued in tranches on January 25, 2013, January 31, 2013, February 8, 2013, February 21, 2013, February 28, 2013, March 1, 2013, and March 6, 2013 respectively. Of the total outstanding, 181,156 expire five years from their respective issue dates and 767,560 have been amended such that they expire on March 31, 2019. The exercise price for all 2013 Investor warrants is $3.144 (note 4). iii) The Dividend Warrants are exercisable at $5.00 per share until January 24, 2018 (note 4). iv) The 2013 Placement Agent Warrants are exercisable at $3.144 per share until June 30, 2019 but may be exercised on a cashless basis (note 4). v) Of the total, 265,000 are exercisable at $3.00 and 43,750 are exercisable on a cashless basis at a price of $7.04 per share. The warrants expire as to 125,000 on December 1, 2020, 15,000 on July 31, 2020, 125,000 on February 1, 2021, and 43,750 on September 12, 2018. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related party transactions | 6 Related party transactions The following related party transactions and balances have been entered into by the Company. Pursuant to consulting agreements with the Company’s officers the Company recognized a total of $480,000 (2015 - $505,000) in compensation expense during the year ended June 30, 2016. The Company recognized $167,083 (2015 - $119,417) in directors’ fees during the year ended June 30, 2016. In addition, upon the resignation of one of the Company’s directors, the Director agreed to a lock-up agreement limiting his ability to sell shares and was paid $45,000 pursuant to the lock-up agreement. At June 30, 2016 there is an aggregate amount of $43,444 (June 30, 2015 - $90,820) owed to the Company’s officers and directors for fees and expenses. The Company pays related party payables incurred for fees and expenses under normal commercial terms. Effective September 30, 2014, the Company entered into and closed an agreement with Valent to exchange its loan with Valent for 278,530 shares of Series A preferred stock of the Company (note 3). For the year ended June 30, 2016, the Company recorded $8,356 related to the dividend payable on the Series A Preferred Stock held by Valent. For the year ended June 30, 2015, the Company recorded $6,267 related to the dividend and $2,091 related to interest from July 1, 2014 to September 30, 2014 when the Valent loan was exchanged for preferred stock. |
Current and Future Income Taxes
Current and Future Income Taxes | 12 Months Ended |
Jun. 30, 2016 | |
Current and Future Income Taxes [Abstract] | |
Current and future income taxes | 7 Current and future income taxes The Company has the following non-capital losses available to reduce taxable income of future years: Expiry date $ 2029 59,300 2030 940,780 2031 1,018,931 2033 3,667,899 2034 5,031,391 2035 4,348,303 2036 2,112,983 In addition, the Company has non-refundable investment tax credits of $127,100 that can be carried forward 20 years and can be deducted from future taxes payable. Significant components of the Company’s future tax assets are shown below: June 30, June 30, Non-capital losses carried forward 4,997,819 4,342,685 Financing costs 7,448 10,565 Scientific research and development 233,773 183,913 5,239,040 4,537,163 Valuation allowance (5,239,040 ) (4,537,163 ) Net future tax assets - - The income tax benefit of these tax attributes has not been recorded in these consolidated financial statements because of the uncertainty of their recovery. The Company’s effective income tax rate differs from the statutory income tax rate of 34% (2015 - 34%). The differences arise from the following items: June 30, June 30, Tax recovery at statutory income tax rates (2,885,559 ) (1,630,650 ) Permanent differences 1,119,908 (49,820 ) Effect of rate differentials between jurisdictions 257,900 327,485 Other 34,116 (4,783 ) Change in valuation allowance 1,473,635 1,357,768 - - |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and contingencies | 8 Commitments and contingencies Office lease The Company currently rents its offices pursuant to a one-year lease that commenced on May 27, 2016 at a rate of $2,983 (CA$3,850) per month. During the year ended June 30, 2016, the Company recorded $36,610 as rent expense (2015 - $29,429). |
Supplementary Statement Of Cash
Supplementary Statement Of Cash Flows Information | 12 Months Ended |
Jun. 30, 2016 | |
Supplementary Statement Of Cash Flows Information [Abstract] | |
Supplementary statement of cash flows information | 9 Supplementary statement of cash flows information Year ended Year ended Issuance of preferred shares for the settlement of the loan payable with Valent (note 3) - 278,530 Reclassification of derivative liability to equity upon the exercise of warrants (note 4) 362,434 391,422 Reclassification of derivative liability to equity upon the exchange of 2013 Investor Warrants (note 4) - 728,835 Reclassification of derivative liability to equity upon the amendment of warrants (note 4) 3,597,030 975,278 Reclassification of stock option liability to equity upon settlement (note 5) 381,497 38,038 Non-cash website development costs 29,543 - |
Financial Risk Management
Financial Risk Management | 12 Months Ended |
Jun. 30, 2016 | |
Financial Risk Management [Abstract] | |
Financial risk management | 10 Financial risk management Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or valuation of its financial instruments. The Company is exposed to financial risk related to fluctuation of foreign exchange rates. Foreign currency risk is limited to the portion of the Company’s business transactions denominated in currencies other than the United Sates dollar, primarily general and administrative expenses incurred in Canadian dollars. The Company believes that the results of operations, financial position and cash flows would be affected by a sudden change in foreign exchange rates, but would not impair or enhance its ability to pay its Canadian dollar accounts payable. The Company manages foreign exchange risk by converting its US$ to CA$ as needed. The Company maintains the majority of its cash in US$. As at June 30, 2016, Canadian dollar denominated accounts payable and accrued liabilities exposure in US$ totaled $73,193. a) Foreign exchange risk Foreign exchange risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. If foreign exchange rates were to fluctuate within +/-10% of the closing rate at year-end, the maximum exposure is $7,319. Balances in foreign currencies at June 30, 2016 and 2015 are as follows: June 30, June 30, Trade payables 94,443 201,169 Cash 61,918 88,205 b) Interest rate risk The Company is subject to interest rate risk on its cash and cash equivalents and believes that the results of operations, financial position and cash flows would not be significantly affected by a sudden change in market interest rates relative to the investment interest rates due to the short-term nature of the investments. As at June 30, 2016, cash and cash equivalents held in Canadian dollar accounts or short-term investments were $47,937. The Company’s cash balance currently earns interest at standard bank rates. If interest rates were to fluctuate within +/-10% of the closing rate at year end the impact of the Company’s interest bearing accounts will be not be significant. The only financial instruments that expose the Company to interest rate risk are its cash and cash equivalents. Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet cash flow requirements associated with financial instruments. The Company continues to manage its liquidity risk based on the outflows experienced for the period ended June 30, 2016 and is undertaking efforts to conserve cash resources wherever possible. The maximum exposure of the Company’s liquidity risk is $627,446 at June 30, 2016 (note 1). Credit risk Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, as well as outstanding receivables. The Company limits its exposure to credit risk, with respect to cash and cash equivalents, by placing them with high quality credit financial institutions. The Company’s cash equivalents consist primarily of operating funds with commercial banks. Of the amounts with financial institutions on deposit, the following table summarizes the amounts at risk should the financial institutions with which the deposits are held cease trading: The maximum exposure of the Company’s credit risk is $18,387 at June 30, 2016. Cash and Insured Non-insured 6,157,264 89,851 6,067,413 Concentration of credit risk Financial instruments that subject the Company to credit risk consist primarily of cash and cash equivalents. The Company places its cash and cash equivalents in accredited financial institutions and therefore the Company’s management believes these funds are subject to minimal credit risk. The Company has no significant off-balance sheet concentrations of credit risk such as foreign currency exchange contracts, option contracts or other hedging arrangements. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent events | 11 Subsequent events Exercise of warrants Subsequent to June 30, 2016, 84,181 common stock purchase warrants have been exercised for proceeds of $257,110. A portion of the warrants exercised have been accounted for as a derivative liability. As a result of the exercise of these warrants, the related derivative liability has been reclassified to equity resulting in a net increase to equity of approximately $105,000. Warrant amendments Subsequent to June 30, 2016, 15,938 2013 Investor Warrants (note 4) were amended resulting in an increase to net equity of approximately $44,000. Stock option amendments Subsequent to June 30, 2016, the Company amended 43,750 stock options held by five optionees such that the exercise price of the stock options was changed from CA$2.00 to USD $2.00. The result was a net reclassification to equity of $175,875. |
Significant Accounting Polici18
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Significant accounting policies [Abstract] | |
Reverse Stock Split | Reverse Stock Split On May 16, 2016, the Company filed a Certificate of Change with the Secretary of State of Nevada that effected a 1-for-4 (1:4) reverse stock split of its common stock, par value $0.001 per share. The reverse split became effective on May 20, 2016. Pursuant to the Certificate of Change, the Company’s authorized common stock was decreased in the same proportion as the split resulting in a decrease from 200,000,000 authorized shares of common stock to 50,000,000 shares authorized. The par value of its common stock was unchanged at $0.001 per share, post-split. All warrants, stock options, conversion ratios, and per share information in these consolidated financial statements give retroactive effect to this 1-for-4 reverse stock split. The Company’s authorized and issued preferred stock was not affected by the split. |
Basis of presentation | Basis of presentation The financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”) and are presented in United States dollars. The Company’s functional currency is the United States dollar. The principal accounting policies applied in the preparation of these consolidated financial statements are set out below and have been consistently applied to all periods presented. |
Consolidation | Consolidation The consolidated financial statements include the accounts of Del Mar (BC), Callco, and Exchangeco as of and for the year ended June 30, 2016. Inter-company balances and transactions have been eliminated on consolidation. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions about future events that affect the reported amounts of assets, liabilities, expenses, contingent assets and contingent liabilities as at the end or during the reporting period. Actual results could significantly differ from those estimates. Significant areas requiring management to make estimates include the derivative liability and the valuation of equity instruments issued for services. Further details of the nature of these assumptions and conditions may be found in the relevant notes to these consolidated financial statements. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on deposit and highly liquid short-term interest bearing securities with maturities at the date of purchase of three months or less. Cash and cash equivalents are held at recognized Canadian and United States financial institutions. Interest earned is recognized in the consolidated statement of operations and comprehensive loss. |
Foreign currency translation | Foreign currency translation The functional currency of the Company at June 30, 2016 is the United States dollar. Transactions that are denominated in a foreign currency are remeasured into the functional currency at the current exchange rate on the date of the transaction. Any foreign-currency denominated monetary assets and liabilities are subsequently remeasured at current exchange rates, with gains or losses recognized as foreign exchange losses or gains in the consolidated statement of operations and comprehensive loss. Non-monetary assets and liabilities are translated at historical exchange rates. Expenses are translated at average exchange rates during the period. Exchange gains and losses are included in consolidated statement of operations and comprehensive loss for the period. |
Current and future income taxes | Current and future income taxes The Company follows the liability method of accounting for income taxes. Under this method, current income taxes are recognized for the estimated income taxes payable for the current period. Income taxes are accounted for using the asset and liability method of accounting. Future income taxes are recognized for the future income tax consequences attributable to differences between the carrying values of assets and liabilities and their respective income tax bases and for loss carry-forwards. Future income tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods in which temporary differences are expected to be recovered or settled. The effect on future income tax assets and liabilities of a change in tax laws or rates is included in earnings in the period that includes the enactment date. When realization of future income tax assets does not meet the more-likely-than-not criterion for recognition, a valuation allowance is provided. |
Financial instruments | Financial instruments The Company has financial instruments that are measured at fair value. To determine the fair value, we use the fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use to value an asset or liability and are developed based on market data obtained from independent sources. Unobservable inputs are inputs based on assumptions about the factors market participants would use to value an asset or liability. The three levels of inputs that may be used to measure fair value are as follows: ● Level one - inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities; ● Level two - inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals; and ● Level three - unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The Company’s financial instruments consist of cash and cash equivalents, taxes and other receivables, accounts payable and accrued liabilities, related party payables and derivative liability. The carrying values of cash and cash equivalents, taxes and other receivables, accounts payable and accrued liabilities and related party payables approximate their fair values due to the immediate or short-term maturity of these financial instruments. Derivative liability The Company accounts for certain warrants under the authoritative guidance on accounting for derivative financial instruments indexed to, and potentially settled in, a company’s own stock, on the understanding that in compliance with applicable securities laws, the warrants require the issuance of securities upon exercise and do not sufficiently preclude an implied right to net cash settlement. The Company classifies these warrants on its balance sheet as a derivative liability which is fair valued at each reporting period subsequent to the initial issuance. The Company has used a simulated probability valuation model to value the warrants. Determining the appropriate fair-value model and calculating the fair value of warrants requires considerable judgment. Any change in the estimates (specifically probabilities) used may cause the value to be higher or lower than that reported. The estimated volatility of the Company’s common stock at the date of issuance, and at each subsequent reporting period, is based on the historical volatility of similar life sciences companies. The risk-free interest rate is based on rates published by the government for bonds with a maturity similar to the expected remaining life of the warrants at the valuation date. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. a) Fair value of derivative liability The derivative is not traded in an active market and the fair value is determined using valuation techniques. The Company uses judgment to select a variety of methods to make assumptions that are based on specific management plans and market conditions at the end of each reporting period. The Company uses a fair value estimate to determine the fair value of the derivative liability. The carrying value of the derivative liability would be higher or lower as management estimates around specific probabilities change. The estimates may be significantly different from those recorded in the consolidated financial statements because of the use of judgment and the inherent uncertainty in estimating the fair value of these instruments that are not quoted in an active market. All changes in the fair value are recorded in the consolidated statement of operations and comprehensive loss each reporting period. This is considered to be a Level 2 financial instrument. The Company has the following liabilities under the fair value hierarchy: June 30, 2016 Liability Level 1 Level 2 Level 3 Derivative liability - 693,700 - June 30, 2015 Liability Level 1 Level 2 Level 3 Derivative liability - 2,364,381 - Out- of- period adjustment The consolidated statement of operations and comprehensive loss for the year ended June 30, 2016 includes a $100,868 out-of-period adjustment related to the re-measuring of the stock option liability that arose during the year ended June 30, 2015. This adjustment increased the stock based compensation expense and the corresponding stock option liability by $100,868. The impact of these adjustments to current and prior periods is not material. |
Intangible assets | Intangible assets Website development costs Website development costs are stated at cost less accumulated amortization. The Company capitalizes website development costs associated with graphics design and development of the website application and infrastructure. Costs related to planning, content input, and website operations are expensed as incurred. The Company amortizes website development costs on a straight-line basis over three years. The website costs consist of $16,762 in cash costs and $29,543 in non-cash consideration in the form of the issuance of warrants. The Company recognized $10,288 and $0 respectively, in amortization during the years ended June 30, 2016 and 2015. Patents Expenditures associated with the filing, or maintenance of patents, licensing or technology agreements are expensed as incurred. Costs previously recognized as an expense are not recognized as an asset in subsequent periods. Once the technology has achieved commercialization, patent costs will be deferred and amortized over the remaining life of the related patent. |
Research and development costs (including clinical trial expenses) | Research and development costs (including clinical trial expenses) Research and development expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with product research and development. Research and development expenses also include third-party development and clinical trial expenses noted below. Such costs related to product research and development are included in research and development expense until the point that technological feasibility is reached, which for our drug candidate, is generally shortly before the drug is approved by the relevant food and drug administration. Once technological feasibility is reached, such costs are capitalized and amortized to cost of revenue over the estimated life of the product. Clinical trial expenses are a component of research and development costs and include fees paid to contract research organizations, investigators and other service providers who conduct specific research for product development activities on behalf of the Company. The amount of clinical trial expenses recognized in a period related to service agreements is based on estimates of the work performed on an accrual basis. These estimates are based on patient enrollment, services provided and goods delivered, contractual terms and experience with similar contracts. The Company monitors these factors to the extent possible and adjusts our estimates accordingly. Prepaid expenses or accrued liabilities are adjusted if payments to service providers differ from estimates of the amount of service completed in a given period. Research and development costs are expensed in the period incurred. At June 30, 2016 and 2015 all research and development costs have been expensed. |
Shares for services | Shares for services The Company has issued equity instruments for services provided by employees and non-employees. The equity instruments are valued at the fair value of the instrument granted. |
Stock options | Stock options The Company accounts for these awards under Accounting Standards Codification (“ASC”) 718, “Compensation - Stock Compensation” (“ASC 718”). ASC 718 requires measurement of compensation cost for all stock-based awards at fair value on the date of grant and recognition of compensation over the requisite service period for awards expected to vest. Compensation expense for unvested options to non-employees is revalued at each period end and is being amortized over the vesting period of the options. The determination of grant-date fair value for stock option awards is estimated using the Black-Scholes model, which includes variables such as the expected volatility of the Company’s share price, the anticipated exercise behavior of its grantee, interest rates, and dividend yields. These variables are projected based on the Company’s historical data, experience, and other factors. Changes in any of these variables could result in material adjustments to the expense recognized for share-based payments. Such value is recognized as expense over the requisite service period, net of estimated forfeitures, using the straight-line attribution method. The estimation of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from current estimates, such amounts are recorded as a cumulative adjustment in the period estimates are revised. The Company considers many factors when estimating expected forfeitures, including type of awards granted, employee class, and historical experience. Actual results and future estimates may differ substantially from current estimates. |
Comprehensive income | Comprehensive income In accordance with ASC 220, “Comprehensive Income” (“ASC 220”) all components of comprehensive income, including net loss, are reported in the financial statements in the period in which they are recognized. Comprehensive income is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Net loss and other comprehensive (income) loss, including foreign currency translation adjustments, are reported, net of any related tax effect, to arrive at comprehensive income. No taxes were recorded on items of other comprehensive income. |
Loss per share | Loss per share Income or loss per share is calculated based on the weighted average number of common shares outstanding. For the years ended June 30, 2016 and 2015 diluted loss per share does not differ from basic loss per share since the effect of the Company’s warrants, stock options, and convertible preferred shares are anti-dilutive. At June 30, 2016, potential common shares of 5,468,876 (2015 – 4,266,968) related to outstanding warrants and stock options and 2,255,595 (2015 – 0) relating to outstanding convertible preferred shares were excluded from the calculation of net loss per common share because their inclusion would be anti-dilutive. |
Segment information | Segment information The Company identifies its operating segments based on business activities, management responsibility and geographical location. The Company operates within a single operating segment being the research and development of cancer indications, and operates in one geographic area, being North America. All of the Company’s assets are located in either Canada or the United States. |
Recent accounting pronouncements | Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption. ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this update change existing guidance related to accounting for employee share-based payments affecting the income tax consequences of awards, classification of awards as equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual periods, with early adoption permitted. The Company is currently evaluating the potential impact of the adoption of this standard. ASU 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the consolidated balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated income statement. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the potential impact of the adoption of this standard. ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The updated guidance enhances the reporting model for financial instruments, and requires entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and the separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. The guidance is effective for annual and interim reporting periods beginning after December 15, 2017. The Company is currently assessing this standard for its impact on future reporting periods. ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”) The guidance requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. The ASU simplifies the current guidance in ASC Topic 740, Income Taxes, which requires entities to separately present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for all entities as of the beginning of an interim or annual reporting period. The Company expects that this guidance will have no effect on the Consolidated Financial Statements. Accounting Standards Update (“ASU”) 2014-15 - Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern The objective of the guidance is to require management to explicitly assess an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. In connection with each annual and interim period, management will assess if there is substantial doubt about an entity's ability to continue as a going concern within one year after the issuance date of an entity’s financial statements. The new standard defines substantial doubt and provides examples of indicators thereof. The definition of substantial doubt incorporates a likelihood threshold of "probable" similar to the current use of that term in U.S. GAAP for loss contingencies. The new standard will be effective for all entities in the first annual period ending after December 15, 2016 (December 31, 2016 for calendar year-end entities). Earlier application is permitted. The Company is currently assessing this standard for its impact on future reporting periods. |
Significant Accounting Polici19
Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Significant accounting policies [Abstract] | |
Schedule of derivative liabilities under the fair value hierarchy | June 30, 2016 Liability Level 1 Level 2 Level 3 Derivative liability - 693,700 - June 30, 2015 Liability Level 1 Level 2 Level 3 Derivative liability - 2,364,381 - |
Derivative Liability (Tables)
Derivative Liability (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Derivative liability [Abstract] | |
Schedule of derivative liabilities | June 30, June 30, Opening balance 2,364,381 5,111,007 Change in fair value of warrants 1,963,733 (627,433 ) Change in fair value due to change in warrant terms 295,456 (23,658 ) Reclassification to equity upon amendment of warrants (3,597,030 ) (975,278 ) Issuance of 2016 Agent Warrants 29,594 - Reclassification to equity upon exchange of warrants - (728,835 ) Reclassification to equity upon exercise of warrants (362,434 ) (391,422 ) Closing balance 693,700 2,364,381 |
Stockholders' Equity (Deficie21
Stockholders' Equity (Deficiency) (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity [Abstract] | |
Schedule of stock options outstanding under the plan | Number of Weighted Balance – June 30, 2014 796,804 3.84 Granted 150,000 3.52 Cancelled (30,000 ) 4.20 Forfeited (18,054 ) 2.12 Balance – June 30, 2015 898,750 3.76 Granted 177,500 3.96 Cancelled (12,500 ) 4.20 Forfeited (207,500 ) 4.02 Balance - June 30, 2016 856,250 3.77 |
Schedule of stock options currently outstanding and exercisable | Exercise price $ Number Weighted Number 1.55 68,750 5.64 68,750 2.00 87,500 5.64 87,500 2.96 45,000 8.60 45,000 3.20 30,000 8.75 30,000 3.32 30,000 9.59 4,139 3.60 25,000 9.72 2,361 3.76 45,000 9.50 7,458 4.00 12,500 6.60 12,500 4.20 412,500 7.13 406,354 4.48 30,000 9.52 4,806 4.76 25,000 9.84 1,366 6.16 15,000 6.75 15,000 9.20 30,000 6.92 30,000 856,250 715,234 |
Schedule of stock options valuation assumptions using a Black-Scholes pricing model | June 30, June 30, Dividend rate 0 % 0 % Volatility 84% to 118 % 67% to 85 % Risk-free rate 1.00 % 1.00 to 1.25 % Term – years 0.5 to 3.0 0.5 to 2.5 |
Schedule of stock-based compensation expense | Years ended June 30, 2016 2015 Research and development 263,509 36,284 General and administrative 130,623 150,616 394,132 186,900 |
Schedule of unvested stock options | Number of Weighted Weighted Unvested at June 30, 2014 183,920 3.92 2.16 Granted 150,000 3.52 1.28 Vested (105,277 ) 3.76 1.92 Forfeited (18,053 ) 2.12 1.44 Cancelled (30,000 ) 4.20 2.28 Unvested at June 30, 2015 180,590 3.80 1.64 Granted 177,500 3.96 2.24 Vested (147,293 ) 3.71 2.09 Forfeited (65,093 ) 3.67 0.91 Cancelled (4,688 ) 4.20 2.28 Unvested at June 30, 2016 141,016 3.17 1.73 |
Schedule of warrants | Number of Amount Balance – June 30, 2014 234,250 151,451 Expiry of warrants (i) (23,000 ) (12,640 ) Exercise of warrants (ii) (86,250 ) (49,379 ) Balance – June 30, 2015 125,000 89,432 Issuance of 2015 Investor Warrants (iii) 1,069,417 671,189 Exercise of 2015 Investor Warrants (iii) (41,667 ) (26,250 ) 2016 Agent Warrants (iv) 103,963 246,566 Warrants issued for services (v) 265,000 677,445 Balance - June 30, 2016 1,5217,713 1,658,382 i) Broker warrants were issued as finder’s fees in relation to the issuance of certain securities. The warrants had an exercise price of CA$2.00 per warrant. ii) The Company has issued 86,250 warrants for investor relations services. The warrants were issued on February 1, 2012 and vested in 12 equal installments over a 12-month period commencing on March 1, 2012. The warrants have an exercise price of CA$2.00 per warrant. The 86,250 warrants were exercised during the year ended June 30, 2015 for cash proceeds of $138,000 (CA$ 172,500). iii) Pursuant to the Public Offering, the Company issued 1,067,417 2015 Investor Warrants at an exercise price of $3.00. The warrants expire on July 31, 2020. Of these warrants, 41,667 have been exercised during the year ended June 30, 2016. iv) As part of its Series B Preferred Share financing the Company issued 103,963 2016 Agent Warrants that are exercisable at a price of $4.00 until May 12, 2021. v) The Company has issued 265,000 warrants for services at an exercise price of $3.00. The warrants expire at various dates as noted below. |
Schedule of outstanding warrants | Description Number Issued for patents (i) 125,000 2013 Investor Warrants (ii) 948,716 Dividend Warrants (iii) 812,502 2013 Placement Agent (iv) 1,262,500 Issued for services (v) 308,750 2015 Investor Warrants 1,027,750 2015 Agent Warrants (note 4) 23,446 2016 Agent Warrants 103,963 Closing balance - June 30, 2016 4,612,627 i) The Company issued 125,000 warrants to Valent (note 3). The warrants have an exercise price of CA$2.00 per warrant and expire February 1, 2017. ii) The Investor Warrants were issued as part of the Company’s $3.20 unit offering. They were issued in tranches on January 25, 2013, January 31, 2013, February 8, 2013, February 21, 2013, February 28, 2013, March 1, 2013, and March 6, 2013 respectively. Of the total outstanding, 181,156 expire five years from their respective issue dates and 767,560 have been amended such that they expire on March 31, 2019. The exercise price for all 2013 Investor warrants is $3.144 (note 4). iii) The Dividend Warrants are exercisable at $5.00 per share until January 24, 2018 (note 4). iv) The 2013 Placement Agent Warrants are exercisable at $3.144 per share until June 30, 2019 but may be exercised on a cashless basis (note 4). v) Of the total, 265,000 are exercisable at $3.00 and 43,750 are exercisable on a cashless basis at a price of $7.04 per share. The warrants expire as to 125,000 on December 1, 2020, 15,000 on July 31, 2020, 125,000 on February 1, 2021, and 43,750 on September 12, 2018. |
Current and Future Income Tax22
Current and Future Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Current and Future Income Taxes [Abstract] | |
Schedule of taxable income | Expiry date $ 2029 59,300 2030 940,780 2031 1,018,931 2033 3,667,899 2034 5,031,391 2035 4,348,303 2036 2,112,983 |
Components of future tax assets | June 30, June 30, Non-capital losses carried forward 4,997,819 4,342,685 Financing costs 7,448 10,565 Scientific research and development 233,773 183,913 5,239,040 4,537,163 Valuation allowance (5,239,040 ) (4,537,163 ) Net future tax assets - - |
Schedule of difference between income tax rate and statutory income tax rate | June 30, June 30, Tax recovery at statutory income tax rates (2,885,559 ) (1,630,650 ) Permanent differences 1,119,908 (49,820 ) Effect of rate differentials between jurisdictions 257,900 327,485 Other 34,116 (4,783 ) Change in valuation allowance 1,473,635 1,357,768 - - |
Supplementary Statement Of Ca23
Supplementary Statement Of Cash Flows Information (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Supplementary Statement Of Cash Flows Information [Abstract] | |
Schedule of cash Flow, Supplementary information | Year ended Year ended Issuance of preferred shares for the settlement of the loan payable with Valent (note 3) - 278,530 Reclassification of derivative liability to equity upon the exercise of warrants (note 4) 362,434 391,422 Reclassification of derivative liability to equity upon the exchange of 2013 Investor Warrants (note 4) - 728,835 Reclassification of derivative liability to equity upon the amendment of warrants (note 4) 3,597,030 975,278 Reclassification of stock option liability to equity upon settlement (note 5) 381,497 38,038 Non-cash website development costs 29,543 - |
Financial Risk Management (Tabl
Financial Risk Management (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Financial Risk Management [Abstract] | |
Schedule of balances in foreign currency | June 30, June 30, Trade payables 94,443 201,169 Cash 61,918 88,205 |
Fair value of off-balance sheet risks | Cash and Insured Non-insured 6,157,264 89,851 6,067,413 |
Nature of Operations, Corpora25
Nature of Operations, Corporate History and Liquidity Risk (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Nature of operations, corporate history and liquidity risk (Textual) | |||||
Cash and cash equivalents on hand | $ 6,157,264 | $ 1,754,433 | $ 4,759,711 | ||
Accumulated deficit | 32,237,859 | 18,613,294 | |||
Net loss | $ (437,583) | $ (174,831) | 8,864,864 | $ 4,347,767 | |
Proceeds from private placement | 6,540,821 | ||||
Net cash proceeds amount | $ 257,110 |
Significant Accounting Polici26
Significant Accounting Policies (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | ||
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 693,700 | 2,364,381 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability |
Significant Accounting Polici27
Significant Accounting Policies (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||
May 20, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | May 16, 2016 | |
Significant Accounting Policies (Textual) | ||||
Website cost in cash | $ 16,762 | |||
Common stock, par value | $ 0.001 | $ 0.001 | ||
Website costs non cash consideration | $ 29,543 | |||
Common stock, shares authorized | 50,000,000 | 50,000,000 | ||
Amortization | $ 10,288 | |||
Description of reverse stock split | 1-for-4 reverse stock split. | |||
Description of equity note stock split | The Company's authorized common stock was decreased in the same proportion as the split resulting in a decrease from 200,000,000 authorized shares of common stock to 50,000,000 shares authorized. | |||
Comprehensive loss | 100,868 | |||
Stock based compensation expense | $ 100,868 | |||
Warrant [Member] | ||||
Significant Accounting Policies (Textual) | ||||
Anti-dilutive securities excluded from computation of earnings per share | 5,468,876 | 4,266,968 | ||
Stock options [Member] | ||||
Significant Accounting Policies (Textual) | ||||
Anti-dilutive securities excluded from computation of earnings per share | 2,255,595 | |||
Common stock, par value | $ 0.001 | |||
Common stock, shares authorized | 50,000,000 |
Valent Technologies LLC agree28
Valent Technologies LLC agreements (Details) - USD ($) | Sep. 12, 2010 | Jun. 30, 2016 | Jul. 15, 2015 | Jun. 30, 2015 | Sep. 30, 2014 |
Agreement [Line Items] | |||||
Exercise price of warrant | $ 3 | $ 3 | |||
Series A Preferred Stock [Member] | |||||
Agreement [Line Items] | |||||
Preferred Stock, shares issued | 278,530 | 278,530 | |||
Valent Technologies, LLC [Member] | |||||
Agreement [Line Items] | |||||
Warrant issued to purchase common stock | 125,000 | ||||
Exercise price of warrant | $ 2 | ||||
Loan payable | $ 278,530 | ||||
Aggregate accrued interest | $ 28,530 | ||||
Valent Technologies, LLC [Member] | Series A Preferred Stock [Member] | |||||
Agreement [Line Items] | |||||
Preferred Stock, shares issued | 278,530 |
Derivative Liability (Details)
Derivative Liability (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of derivative liabilities [Roll Forward] | ||
Opening balance | $ 2,364,381 | $ 5,111,007 |
Change in fair value of warrants | (2,341,660) | 627,433 |
Change in fair value due to change in warrant terms | 295,456 | (23,658) |
Reclassification to equity upon amendment of warrants | (3,597,030) | (975,278) |
Issuance of 2016 Agent Warrants | 29,594 | |
Reclassification to equity upon exchange of warrants | (728,835) | |
Reclassification to equity upon exercise of warrants | (362,434) | (391,422) |
Closing balance | $ 693,700 | $ 2,364,381 |
Derivative Liability (Details T
Derivative Liability (Details Textual) - USD ($) | Sep. 12, 2013 | Mar. 06, 2013 | Dec. 30, 2015 | Sep. 30, 2015 | Oct. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2016 | Jun. 30, 2015 | Jul. 15, 2015 | Jun. 30, 2014 |
Derivative [Line Items] | ||||||||||
Warrants | $ 1,658,382 | $ 89,432 | $ 151,451 | |||||||
Closing balance | 89,432 | |||||||||
Exercise price | $ 3 | $ 3 | ||||||||
Net proceeds from the exercise of warrants | $ 579,309 | $ 1,404,177 | ||||||||
Common stock shares issued on exercise of warrants | 496,519 | |||||||||
Number of warrants issued | 265,000 | |||||||||
2015 Agent Warrants [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Exercise price | $ 3 | |||||||||
Number of warrants of exercised | 23,477 | |||||||||
Warrants expiration date | Jul. 15, 2020 | |||||||||
Reclassification of derivative liability upon the exchange of Investor Warrants | $ 133 | |||||||||
2013 Placement Agent Warrants [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Exercise price | $ 3.20 | |||||||||
Recognized loss | $ 13,467 | |||||||||
Number of warrants issued | 1,312,500 | |||||||||
2013 Placement Agent Warrant Amendments [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Recognized loss | $ 242,400 | |||||||||
Common stock shares issued on exercise of warrants | 1,262,500 | |||||||||
Warrants expiration date | Jun. 30, 2019 | |||||||||
Derivaitve liability increase to equity | $ 2,035,150 | |||||||||
Reclassification of derivative liability upon the amendment of warrants | $ 2,277,550 | |||||||||
Maximum [Member] | 2013 Placement Agent Warrants [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Exercise price | $ 3.20 | |||||||||
Minimum [Member] | 2013 Placement Agent Warrants [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Exercise price | $ 3.144 | |||||||||
2013 Investor Warrants [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Reverse acquisition description | Each unit consists of one share of common stock and one five-year warrant (the "2013 Investor Warrants") to purchase one share of common stock at an exercise price of $3.20. | |||||||||
Exercise price | $ 0.001 | |||||||||
Purchase price | $ 3.20 | |||||||||
Recognized loss | $ 8,098 | |||||||||
Number of warrants of exercised | 3,281,250 | |||||||||
Gross proceeds from exercise of warrants | $ 10,500,000 | |||||||||
Derivative warrant conditions description | (i) the Company's common stock has traded for twenty (20) consecutive trading days with a closing price of at least $6.40 per share with an average trading volume of 50,000 shares per day, and (ii) the underlying shares of common stock are registered for resale. | |||||||||
2013 Investor Warrants [Member] | Maximum [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Exercise price | $ 3.20 | |||||||||
2013 Investor Warrants [Member] | Minimum [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Exercise price | $ 3.144 | |||||||||
Investor Warrant Exercises [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Warrants | $ 496,519 | |||||||||
Closing balance | 496,519 | |||||||||
Exercise price | $ 2.60 | |||||||||
Number of warrants of exercised | 190,557 | |||||||||
Agent fee of warrants | $ 24,772 | |||||||||
Percentage of agent fee of warrant | 5.00% | |||||||||
Gross proceeds from exercise of warrants | $ 795,501 | |||||||||
Net proceeds from the exercise of warrants | $ 454,308 | $ 470,676 | ||||||||
Common stock shares issued on exercise of warrants | 305,962 | |||||||||
Warrants expiration date | Feb. 1, 2021 | |||||||||
Reclassification of derivative liability upon the exchange of Investor Warrants | $ 285,895 | $ 391,422 | ||||||||
Warrants Issued for Services [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Exercise price | $ 1.76 | |||||||||
Common stock shares issued on exercise of warrants | 9,383 | |||||||||
Number of warrants outstanding | 31,250 | |||||||||
Term of warrants | 5 years | |||||||||
Number of warrants issued | 75,000 | |||||||||
Reclassification of derivative liability upon the exchange of Investor Warrants | $ 76,406 | |||||||||
Investor Warrants Exchange [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Exercise price | $ 3.144 | |||||||||
Recognized loss | 249,062 | |||||||||
Number of warrants of exercised | 144,500 | |||||||||
Net proceeds from the exercise of warrants | $ 1,266,177 | |||||||||
Common stock shares issued on exercise of warrants | 236,379 | |||||||||
Number of warrants issued | 709,135 | |||||||||
Reclassification of derivative liability upon the exchange of Investor Warrants | $ 728,835 | |||||||||
Investor Warrant Amendments [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Recognized loss | $ 31,491 | |||||||||
Warrants expiration date | Mar. 31, 2019 | |||||||||
Number of warrants issued | 767,560 | |||||||||
Reclassification of derivative liability upon the amendment of warrants | $ 1,319,480 | |||||||||
Dividend Warrants [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Exercise price | $ 5 | |||||||||
Reclassification of derivative liability upon the amendment of warrants | $ 975,278 | |||||||||
Derivative warrant conditions description | Upon issuance the Dividend Warrants were redeemable by the Company at a price of $0.001 per Dividend Warrant at any time commencing 18 months following the date of issuance subject to the conditions that (i) the Company's common stock has traded for twenty (20) consecutive trading days with a closing price of at least $10.00 per share and (ii) the underlying shares of common stock are registered for resale. Subject to the conditions set forth therein, the Dividend Warrants may be redeemed by the Company upon not less than sixty (60) days nor more than ninety (90) days prior written notice. |
Stockholders' Equity (Deficie31
Stockholders' Equity (Deficiency) (Details) - $ / shares | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Number of stock options outstanding | ||
Granted | 177,500 | 150,000 |
Cancelled | (4,688) | (30,000) |
Stock options [Member] | ||
Number of stock options outstanding | ||
Beginning balance | 898,750 | 796,804 |
Granted | 177,500 | 150,000 |
Cancelled | (12,500) | (30,000) |
Forfeited | (207,500) | (18,054) |
Ending balance | 856,250 | 898,750 |
Weighted average exercise price | ||
Weighted average exercise price, Beginning balance | $ 3.76 | $ 3.84 |
Weighted average exercise price, Granted | 3.96 | 3.52 |
Weighted average exercise price, Cancelled | 4.20 | 4.20 |
Weighted average exercise price, Forfeited | 4.02 | 2.12 |
Weighted average exercise price, Ending balance | $ 3.77 | $ 3.76 |
Stockholders' Equity (Deficie32
Stockholders' Equity (Deficiency) (Details 1) - Employee Stock Option [Member] - $ / shares | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |||
Number of stock options outstanding | 856,250 | 898,750 | 796,804 |
Number exercisable | 715,234 | ||
1.55 [Member] | |||
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |||
Exercise price | $ 1.55 | ||
Number of stock options outstanding | 68,750 | ||
Weighted average remaining contractual life (years) | 5 years 7 months 21 days | ||
Number exercisable | 68,750 | ||
2.00 [Member] | |||
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |||
Exercise price | $ 2 | ||
Number of stock options outstanding | 87,500 | ||
Weighted average remaining contractual life (years) | 5 years 7 months 21 days | ||
Number exercisable | 87,500 | ||
2.96 [Member] | |||
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |||
Exercise price | $ 2.96 | ||
Number of stock options outstanding | 45,000 | ||
Weighted average remaining contractual life (years) | 8 years 7 months 6 days | ||
Number exercisable | 45,000 | ||
3.20 [Member] | |||
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |||
Exercise price | $ 3.20 | ||
Number of stock options outstanding | 30,000 | ||
Weighted average remaining contractual life (years) | 8 years 9 months | ||
Number exercisable | 30,000 | ||
3.32 [Member] | |||
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |||
Exercise price | $ 3.32 | ||
Number of stock options outstanding | 30,000 | ||
Weighted average remaining contractual life (years) | 9 years 7 months 2 days | ||
Number exercisable | 4,139 | ||
3.60 [Member] | |||
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |||
Exercise price | $ 3.60 | ||
Number of stock options outstanding | 25,000 | ||
Weighted average remaining contractual life (years) | 9 years 8 months 19 days | ||
Number exercisable | 2,361 | ||
3.76 [Member] | |||
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |||
Exercise price | $ 3.76 | ||
Number of stock options outstanding | 45,000 | ||
Weighted average remaining contractual life (years) | 9 years 6 months | ||
Number exercisable | 7,458 | ||
4.00 [Member] | |||
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |||
Exercise price | $ 4 | ||
Number of stock options outstanding | 12,500 | ||
Weighted average remaining contractual life (years) | 6 years 7 months 6 days | ||
Number exercisable | 12,500 | ||
4.20 [Member] | |||
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |||
Exercise price | $ 4.20 | ||
Number of stock options outstanding | 412,500 | ||
Weighted average remaining contractual life (years) | 7 years 1 month 17 days | ||
Number exercisable | 406,354 | ||
4.48 [Member] | |||
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |||
Exercise price | $ 4.48 | ||
Number of stock options outstanding | 30,000 | ||
Weighted average remaining contractual life (years) | 9 years 6 months 7 days | ||
Number exercisable | 4,806 | ||
4.76 [Member] | |||
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |||
Exercise price | $ 4.76 | ||
Number of stock options outstanding | 25,000 | ||
Weighted average remaining contractual life (years) | 9 years 10 months 2 days | ||
Number exercisable | 1,366 | ||
6.16 [Member] | |||
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |||
Exercise price | $ 6.16 | ||
Number of stock options outstanding | 15,000 | ||
Weighted average remaining contractual life (years) | 6 years 9 months | ||
Number exercisable | 15,000 | ||
9.20 [Member] | |||
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |||
Exercise price | $ 9.20 | ||
Number of stock options outstanding | 30,000 | ||
Weighted average remaining contractual life (years) | 6 years 11 months 1 day | ||
Number exercisable | 30,000 |
Stockholders' Equity (Deficie33
Stockholders' Equity (Deficiency) (Details 2) - Stock options [Member] | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend rate | 0.00% | 0.00% |
Risk-free rate | 1.00% | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility | 84.00% | 67.00% |
Risk-free rate | 1.00% | |
Term - years | 6 months | 6 months |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility | 118.00% | 85.00% |
Risk-free rate | 1.25% | |
Term - years | 3 years | 2 years 6 months |
Stockholders' Equity (Deficie34
Stockholders' Equity (Deficiency) (Details 3) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 394,132 | $ 186,900 |
Research and development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 263,509 | 36,284 |
General and administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 130,623 | $ 150,616 |
Stockholders' Equity (Deficie35
Stockholders' Equity (Deficiency) (Details 4) - $ / shares | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Number of Options | ||
Number of options unvested, Beginning balance | 180,590 | 183,920 |
Number of unvested options granted | 177,500 | 150,000 |
Number of options, Vested | (147,293) | (105,277) |
Number of options, Forfeited | (65,093) | (18,053) |
Number of options, Cancelled | (4,688) | (30,000) |
Number of options unvested, Ending balance | 141,016 | 180,590 |
Weighted Average Exercise Price | ||
Weighted average exercise price unvested, Beginning balance | $ 3.80 | $ 3.92 |
Weighted average exercise price unvested, Granted | 3.96 | 3.52 |
Weighted average exercise price unvested, Vested | 3.71 | 3.76 |
Weighted average excercise price unvested, Forfeited | 3.67 | 2.12 |
Weighted average exercise price unvested, Cancelled | 4.20 | 4.20 |
Weighted average exercise price unvested, Ending balance | 3.17 | 3.80 |
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value, unvested, Beginning balance | 1.64 | 2.16 |
Weighted average grant date fair value, unvested, Granted | 2.24 | 1.28 |
Weighted average grant date fair value, unvested, Vested | 2.09 | 1.92 |
Weighted average grant date fair value, unvested,Forfeited | 0.91 | 1.44 |
Weighted average grant date fair value, unvested, Cancelled | 2.28 | 2.28 |
Weighted average grant date fair value, unvested, Ending balance | $ 1.73 | $ 1.64 |
Stockholders' Equity (Deficie36
Stockholders' Equity (Deficiency) (Details 5) - USD ($) | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | |||
Value of warrants | ||||
Beginning Balance | $ 89,432 | $ 151,451 | ||
Expiry of broker warrants (i) | (12,640) | |||
Exercise of broker warrants (ii) | (49,379) | |||
Issuance of 2015 Investor Warrants (iii) | 1,873,920 | |||
Exercise of 2015 Investor Warrants (iii) | 76,539 | |||
2016 Agent Warrants (iv) | 246,566 | |||
Warrants issued for services | 677,445 | |||
Ending Balance | $ 1,658,382 | $ 89,432 | ||
Warrant [Member] | ||||
Number of Warrants [Roll Forward] | ||||
Beginning Balance | 125,000 | 234,250 | [1] | |
Expiry of warrants (i) | [2] | (23,000) | ||
Exercise of warrants (ii) | [3] | (86,250) | ||
Issuance of 2015 Investor Warrants (iii) | [3] | 1,069,417 | ||
Exercise of 2015 Investor Warrants (iii) | [3] | (41,667) | ||
2016 Agent Warrants (iv) | [4] | 103,963 | ||
Warrants issued for services (v) | [5] | 265,000 | ||
Ending Balance | 15,217,713 | 125,000 | ||
Value of warrants | ||||
Issuance of 2015 Investor Warrants (iii) | $ 671,189 | |||
Warrants issued for services | $ 677,445 | |||
[1] | Broker warrants were issued as finder's fees in relation to the issuance of certain securities. The warrants had an exercise price of CA$2.00 per warrant. | |||
[2] | The Company has issued 86,250 warrants for investor relations services. The warrants were issued on February 1, 2012 and vested in 12 equal installments over a 12-month period commencing on March 1, 2012. The warrants have an exercise price of CA$2.00 per warrant. The 86,250 warrants were exercised during the year ended June 30, 2015 for cash proceeds of $138,000 (CA$ 172,500). | |||
[3] | Pursuant to the Public Offering, the Company issued 1,067,417 2015 Investor Warrants at an exercise price of $3.00. The warrants expire on July 31, 2020. Of these warrants, 41,667 have been exercised during the year ended June 30, 2016. | |||
[4] | As part of its Series B Preferred Share financing the Company issued 103,963 2016 Agent Warrants that are exercisable at a price of $4.00 until May 12, 2021. | |||
[5] | The Company has issued 265,000 warrants for services at an exercise price of $3.00. The warrants expire at various dates as noted below. |
Stockholders' Equity (Deficie37
Stockholders' Equity (Deficiency) (Details 6) - shares | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
Number Of Warrants [Abstract] | |||
Closing balance | 89,432 | ||
Warrant [Member] | |||
Number Of Warrants [Abstract] | |||
Issued for patents (i) | [1] | 125,000 | |
2013 Investor Warrants (ii) | [2] | 948,716 | |
Dividend Warrants (iii) | [3] | 812,502 | |
2013 Placement Agent (iv) | [4] | 1,262,500 | |
Issued for services (v) | [5] | 308,750 | |
2015 Investor Warrants | 1,027,750 | ||
2015 Agent Warrants (note 4) | 23,446 | ||
2016 Agent Warrants (iv) | [6] | 103,963 | |
Closing balance | 15,217,713 | 125,000 | |
[1] | The Company issued 125,000 warrants to Valent (note 3). The warrants have an exercise price of CA$2.00 per warrant and expire February 1, 2017. | ||
[2] | The Investor Warrants were issued as part of the Company's $3.20 unit offering. They were issued in tranches on January 25, 2013, January 31, 2013, February 8, 2013, February 21, 2013, February 28, 2013, March 1, 2013, and March 6, 2013 respectively. Of the total outstanding, 181,156 expire five years from their respective issue dates and 767,560 have been amended such that they expire on March 31, 2019. The exercise price for all 2013 Investor warrants is $3.144 (note 4). | ||
[3] | The Dividend Warrants are exercisable at $5.00 per share until January 24, 2018 (note 4). | ||
[4] | The 2013 Placement Agent Warrants are exercisable at $3.144 per share until June 30, 2019 but may be exercised on a cashless basis (note 4). | ||
[5] | Of the total, 265,000 are exercisable at $3.00 and 43,750 are exercisable on a cashless basis at a price of $7.04 per share. The warrants expire as to 125,000 on December 1, 2020, 15,000 on July 31, 2020, 125,000 on February 1, 2021, and 43,750 on September 12, 2018. | ||
[6] | As part of its Series B Preferred Share financing the Company issued 103,963 2016 Agent Warrants that are exercisable at a price of $4.00 until May 12, 2021. |
Stockholders' Equity (Deficie38
Stockholders' Equity (Deficiency) (Details Textual) - $ / shares | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 |
Stockholders Equity Note [Line Items] | |||
Preferred stock, par value | $ 0.001 | $ 0.001 | |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |
Preferred stock special voting shares issued | 1 | 1 | |
Common stock, shares authorized | 50,000,000 | 50,000,000 | |
Common stock, par value | $ 0.001 | $ 0.001 | |
Common stock, shares issued (in shares) | 11,187,023 | 9,864,175 | |
Common stock, Shares outstanding | 1,014,011 | 1,064,010 | |
Series A Preferred Stock [Member] | |||
Stockholders Equity Note [Line Items] | |||
Preferred Stock, shares issued | 278,530 | 278,530 | |
Preferred stock, shares outstanding | 278,530 | 278,530 | |
Preferred Stock, rate of dividend | 3.00% | ||
Series B Preferred Stock [Member] | |||
Stockholders Equity Note [Line Items] | |||
Preferred Stock, shares issued | 902,238 | ||
Preferred stock, shares outstanding | 902,238 | ||
Preferred Stock, rate of dividend | 9.00% | ||
Purchase price of shares | $ 8 | ||
Convertible preferred stock | 2.5 | ||
Conversion price | $ 3.20 | ||
Exchange Agreement | Series A Preferred Stock [Member] | |||
Stockholders Equity Note [Line Items] | |||
Preferred stock, par value | $ 1 |
Stockholders' Equity (Deficie39
Stockholders' Equity (Deficiency) (Details Textual 1) | Jul. 15, 2015$ / sharesshares | Sep. 30, 2014$ / sharesshares | Jun. 30, 2016USD ($)Installments$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesCAD / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2015CADshares | Jun. 30, 2016CAD / shares | Jun. 30, 2014shares | Sep. 12, 2010$ / shares |
Stockholders Equity Note [Line Items] | |||||||||
Total cash commission | $ | $ 80,575 | ||||||||
Exercise price | $ / shares | $ 3 | $ 3 | $ 3 | ||||||
Issuance of cash | $ | $ 582,511 | ||||||||
Gross proceeds of cash | $ | 1,903,514 | ||||||||
Increase value in additional paid in capital and accumulated deficit | $ | 29,594 | ||||||||
Series B preferred stock dividend | $ | |||||||||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | ||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Common Stock, Shares, Issued | 11,187,023 | 11,187,023 | 9,864,175 | ||||||
Common stock issued and outstanding exchanged basis | 1,014,011 | 1,014,011 | 1,064,010 | ||||||
Common stock shares issued on exercise of warrants | 496,519 | 496,519 | |||||||
Deferred costs | $ | $ 550,119 | ||||||||
Shares issued for services, shares | 27,500 | 46,750 | 46,750 | ||||||
Shares issued for services | $ | $ 146,900 | $ 181,187 | |||||||
Stock-based compensation expense | $ | 394,132 | 186,900 | |||||||
Stock option recognized as additional paid in capital | $ | $ 394,133 | $ 187,176 | |||||||
Weighted average contractual term | 9 years 6 months 4 days | ||||||||
Number of warrants issued | 265,000 | ||||||||
Warrants expired | 0 | ||||||||
Revaluation loss of stock option | $ | $ 377,927 | ||||||||
Amendment shares of stock option exercise price | 87,500 | 87,500 | |||||||
December 1, 2020 [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Warrants expired | 125,000 | ||||||||
July 31, 2020 [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Warrants expired | 15,000 | ||||||||
February 1, 2021 [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Warrants expired | 125,000 | ||||||||
September 12, 2018 [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Warrants expired | 43,750 | ||||||||
3.00 [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Common stock shares issued on exercise of warrants | 265,000 | ||||||||
7.04 [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Common stock shares issued on exercise of warrants | 43,750 | ||||||||
Stock options [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Threshold percentage of share capital on fully diluted basis for common stock authorized to issue | 7.50% | ||||||||
Percentage of equity securities deemed granted to principle founders of entity on pro rata basis as per ownership | 66 2/3 | ||||||||
Number of stock options outstanding | 856,250 | 856,250 | 898,750 | 796,804 | |||||
Stock option recognized as additional paid in capital | $ | $ 225,214 | ||||||||
Recognized as stock option liability | $ | 38,314 | ||||||||
Aggregate intrinsic value of stock options outstanding | $ | $ 3,486,910 | $ 3,486,910 | 203,528 | ||||||
Aggregate intrinsic value of stock options exercisable | $ | 2,941,031 | 2,941,031 | 203,528 | ||||||
Unrecognized compensation expense | $ | 507,438 | $ 507,438 | |||||||
Aggregate intrinsic value of unvested stock options | $ | $ 547,279 | 0 | |||||||
Stock options [Member] | 1.55 [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Number of stock options outstanding | 68,750 | 68,750 | |||||||
Unit offering price | CAD / shares | $ 0.50 | ||||||||
Warrant [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Exercise price | CAD / shares | CAD 2 | ||||||||
Gross proceeds of cash | $ 138,000 | CAD 172,500 | |||||||
Number of warrants issued | 86,250 | ||||||||
Number of installments for vesting of warrants | Installments | 12 | ||||||||
Vesting period of warrant | 12 months | ||||||||
Shares exercised | 86,250 | 86,250 | |||||||
Warrant [Member] | Initial Public Offering [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Exercise price | $ / shares | $ 3 | $ 3 | |||||||
Warrants expiration date | Jul. 31, 2020 | ||||||||
Common stock, par value | $ / shares | $ 0.004 | $ 0.004 | |||||||
Common stock shares issued on exercise of warrants | 41,667 | ||||||||
Number of warrants issued | 1,067,417 | ||||||||
Valent Technologies, LLC [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Exercise price | $ / shares | $ 2 | ||||||||
Valent Technologies, LLC [Member] | Warrant [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Exercise price | CAD / shares | CAD 2 | ||||||||
Warrants expiration date | Feb. 1, 2017 | ||||||||
Number of warrants issued | 125,000 | ||||||||
Series A Preferred Stock [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Preferred Stock, shares issued | 278,530 | 278,530 | 278,530 | ||||||
Preferred Stock, rate of dividend | 3.00% | ||||||||
Series A Preferred Stock [Member] | Valent Technologies, LLC [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Preferred Stock, shares issued | 278,530 | ||||||||
Preferred stock, par value | $ / shares | $ 1 | ||||||||
Preferred Stock, rate of dividend | 3.00% | ||||||||
Series B Preferred Stock [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Increase value in additional paid in capital and accumulated deficit | $ | $ 4,513,019 | ||||||||
Preferred Stock, shares issued | 902,238 | 902,238 | |||||||
Preferred Stock, rate of dividend | 9.00% | ||||||||
Series B Preferred Stock [Member] | Warrant [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Exercise price | $ / shares | $ 4 | $ 4 | |||||||
Number of warrants issued | 103,963 | ||||||||
Common stock [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Series B preferred stock dividend, shares | 30,360 | ||||||||
Series B preferred stock dividend | $ | $ 31 | ||||||||
Common stock, par value | $ / shares | $ 2.40 | ||||||||
Common stock shares issued on exercise of warrants | 1,069,417 | ||||||||
Issuance of shares and warrants - net of issue costs, shares | 1,069,417 | ||||||||
Shares issued for services, shares | 27,500 | 46,750 | 46,750 | ||||||
Stock option recognized as additional paid in capital | $ | |||||||||
Accumulated deficit [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Series B preferred stock dividend | $ | (238,326) | ||||||||
Stock option recognized as additional paid in capital | $ | |||||||||
2016 Agent Warrants [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Sale of stock description | Under the Company's engagement agreements with these placement agents, the Company agreed to pay up to an 8% cash commission and issue warrants to purchase shares of common stock (the "2016 Agent Warrants") up to the number of shares of our common stock equal to 8% of the aggregate number of shares underlying the Series B Preferred Stock sold in the offering by such placement agents. | ||||||||
Total cash commission | $ | $ 339,032 | ||||||||
Exercise price | $ / shares | $ 4 | 4 | |||||||
Warrants expiration date | May 12, 2021 | ||||||||
Issuance of cash | $ | $ 338,051 | ||||||||
Gross proceeds of cash | $ | $ 6,500,000 | ||||||||
Dividend Warrants [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Exercise price | $ / shares | $ 5 | 5 | |||||||
2013 Placement Agent Warrants [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Exercise price | $ / shares | $ 3.144 | $ 3.144 | |||||||
Investor Warrant Amendments [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Warrants expiration date | Mar. 31, 2019 | ||||||||
Number of stock options outstanding | 181,156 | 181,156 | |||||||
Number of warrants issued | 767,560 | ||||||||
Amendment [Member] | Stock options [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Reclassified to equity value | $ | $ 351,750 | ||||||||
Additional stock option were amended remaining stock option liability being reclassified to equity | 43,750 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | |
Related Party Transactions (Textual) | |||
Aggregate amount owing to officers and directors for fees and expenses | $ 43,444 | $ 90,820 | |
Interest expense | 2,091 | ||
Series A preferred stock dividend | $ 8,356 | $ 6,267 | |
Series A Preferred Stock [Member] | |||
Related Party Transactions (Textual) | |||
Preferred stock, issued | 278,530 | 278,530 | |
Valent Technologies, LLC [Member] | |||
Related Party Transactions (Textual) | |||
Interest expense | $ 2,091 | ||
Valent Technologies, LLC [Member] | Series A Preferred Stock [Member] | |||
Related Party Transactions (Textual) | |||
Preferred stock, issued | 278,530 | ||
Officer and Director [Member] | Consulting Agreement [Member] | |||
Related Party Transactions (Textual) | |||
Cash compensation to officers | $ 480,000 | $ 505,000 | |
Director fees recognized | 167,083 | $ 119,417 | |
Director [Member] | Lock-Up Agreement [Member] | |||
Related Party Transactions (Textual) | |||
Director fees recognized | $ 45,000 |
Current and Future Income Tax41
Current and Future Income Taxes (Details) | Jun. 30, 2016USD ($) |
2,029 | |
Schedule of taxable income | |
Tax credit carryforward, amount | $ 59,300 |
2,030 | |
Schedule of taxable income | |
Tax credit carryforward, amount | 940,780 |
2,031 | |
Schedule of taxable income | |
Tax credit carryforward, amount | 1,018,931 |
2,033 | |
Schedule of taxable income | |
Tax credit carryforward, amount | 3,667,899 |
2,034 | |
Schedule of taxable income | |
Tax credit carryforward, amount | 5,031,391 |
2,035 | |
Schedule of taxable income | |
Tax credit carryforward, amount | 4,348,303 |
2,036 | |
Schedule of taxable income | |
Tax credit carryforward, amount | $ 2,112,983 |
Current and Future Income Tax42
Current and Future Income Taxes (Details 1) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Components of future tax assets | ||
Non-capital losses carried forward | $ 4,997,819 | $ 4,342,685 |
Financing costs | 7,448 | 10,565 |
Scientific research and development | 233,773 | 183,913 |
Gross future tax assets | 5,239,040 | 4,537,163 |
Valuation allowance | (5,239,040) | (4,537,163) |
Net future tax assets |
Current and Future Income Tax43
Current and Future Income Taxes (Details 2) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
Tax recovery at statutory income tax rates | $ (2,885,559) | $ (1,630,650) |
Permanent differences | 1,119,908 | (49,820) |
Effect of rate differentials between jurisdictions | 257,900 | 327,485 |
Other | 34,116 | (4,783) |
Change in valuation allowance | 1,473,635 | 1,357,768 |
Income tax expense benefit |
Current and Future Income Tax44
Current and Future Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Current and Future Income Taxes (Textuals) | ||
Investment tax credit | $ 127,100 | |
Statutory income tax rate | 34.00% | 34.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) | May 27, 2016USD ($) | May 27, 2016CAD | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) |
Commitments and contingencies (Textual) | ||||
Monthly lease rent for office space | $ 2,983 | CAD 3,850 | ||
Rent expense | $ 36,610 | $ 29,429 | ||
Term of free office rent | 1 year |
Supplementary Statement Of Ca46
Supplementary Statement Of Cash Flows Information (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Supplementary Statement Of Cash Flows Information [Abstract] | ||
Issuance of preferred shares for the settlement of the loan payable with Valent (note 3) | $ 278,530 | |
Reclassification of derivative liability to equity upon the exercise of warrants (note 4) | 362,434 | 391,422 |
Reclassification of derivative liability to equity upon the exchange of 2013 Investor Warrants (note 4) | 728,835 | |
Reclassification of derivative liability to equity upon the amendment of warrants (note 4) | 3,597,030 | 975,278 |
Reclassification of stock option liability to equity upon settlement (note 5) | 381,497 | 38,038 |
Non-cash website development costs | $ 29,543 |
Financial Risk Management (Deta
Financial Risk Management (Details) - Foreign exchange risk [Member] - CAD | Jun. 30, 2016 | Jun. 30, 2015 |
Foreign exchange risk on currencies [Abstract] | ||
Trade payables | CAD 94,443 | CAD 201,169 |
Cash | CAD 61,918 | CAD 88,205 |
Financial Risk Management (De48
Financial Risk Management (Details 1) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Financial Risk Management [Abstract] | |||
Cash and cash equivalents | $ 6,157,264 | $ 1,754,433 | $ 4,759,711 |
Insured amount | 89,851 | ||
Non-insured amount | $ 6,067,413 |
Financial Risk Management (De49
Financial Risk Management (Details Textual) - 12 months ended Jun. 30, 2016 | USD ($) | CAD |
Credit Risk [Member] | ||
Financial risk management (Textual) | ||
Credit risk, financial instrument maximum exposure | $ 18,387 | |
Interest Rate Risk [Member] | ||
Financial risk management (Textual) | ||
Short-term Investments | CAD | CAD 47,937 | |
Liquidity Risk [Member] | ||
Financial risk management (Textual) | ||
Liquidity risk maximum exposure | 627,446 | |
Foreign exchange risk [Member] | ||
Financial risk management (Textual) | ||
Financial risk, accounts payable and accrued liabilities | $ 73,193 | |
Maximum exposure of financial currency due to exchange rates | Foreign exchange risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. If foreign exchange rates were to fluctuate within +/-10% of the closing rate at year-end, the maximum exposure is $7,319. | |
Maximum exposure of interest rate risk | The Company's cash balance currently earns interest at standard bank rates. If interest rates were to fluctuate within +/-10% of the closing rate at year end the impact of the Company's interest bearing accounts will be not be significant. |
Subsequent Events (Details)
Subsequent Events (Details) | 12 Months Ended | ||
Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2015USD ($) | Jun. 30, 2016CAD / shares | |
Subsequent Event [Line Items] | |||
Proceeds from the exercise of warrants | $ 579,309 | $ 1,404,177 | |
Increase in equity due to issuance of warrants | $ 3,597,032 | $ 975,278 | |
Stock Option Amendments [Member] | |||
Subsequent Event [Line Items] | |||
Amendments of stock options, shares | shares | 43,750 | ||
Exercise price of stock options | (per share) | $ 2 | CAD 2 | |
Net reclassification to equity | $ 175,875 | ||
Exercise Warrants [Member] | |||
Subsequent Event [Line Items] | |||
Number of warrants issued | shares | 84,181 | ||
Proceeds from the exercise of warrants | $ 257,110 | ||
Increase in equity due to issuance of warrants | $ 105,000 | ||
Warrant Amendments [Member] | |||
Subsequent Event [Line Items] | |||
Number of warrants issued | shares | 15,938 | ||
Increase in equity due to issuance of warrants | $ 44,000 |