Document and Entity Information
Document and Entity Information | 9 Months Ended |
Mar. 31, 2019 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | DelMar Pharmaceuticals, Inc. |
Entity Central Index Key | 0001498382 |
Amendment Flag | false |
Document Type | S-1 |
Document Period End Date | Mar. 31, 2019 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Consolidated Condensed Interim
Consolidated Condensed Interim Balance Sheets - USD ($) | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Current assets | |||
Cash and cash equivalents | $ 2,152,233 | $ 5,971,995 | $ 6,586,014 |
Prepaid expenses and deposits | 240,071 | 1,034,930 | 1,208,122 |
Interest, taxes and other receivables | 9,086 | 39,519 | 76,595 |
Deferred financing costs | 40,873 | ||
Current assets | 2,442,263 | 7,046,444 | 7,870,731 |
Intangible assets - net | 14,863 | 28,411 | 40,290 |
Total Assets | 2,457,126 | 7,074,855 | 7,911,021 |
Current liabilities | |||
Accounts payable and accrued liabilities | 1,084,460 | 1,478,086 | 1,182,312 |
Related party payables | 113,240 | 160,429 | 88,957 |
Current portion of derivative liability | 33,091 | ||
Current liabilities | 1,197,700 | 1,638,515 | 1,304,360 |
Derivative liability | 265 | 1,117 | 28,137 |
Total Liabilities | 1,197,965 | 1,639,632 | 1,332,497 |
Stockholders' equity | |||
1 special voting share | |||
Common stock, value | 2,620 | 2,297 | 1,451 |
Additional paid-in capital | 47,022,252 | 43,198,193 | 36,678,344 |
Warrants | 6,055,319 | 8,229,482 | 4,570,574 |
Accumulated deficit | (57,988,567) | (52,441,337) | (41,118,433) |
Accumulated other comprehensive income | 21,178 | 21,178 | 21,178 |
Stockholders' equity, total | 1,259,161 | 5,435,223 | 6,578,524 |
Total Liabilities and equity | 2,457,126 | 7,074,855 | 7,911,021 |
Series A Preferred Stock | |||
Stockholders' equity | |||
Preferred stock, value | 278,530 | 278,530 | 278,530 |
Series B Preferred Stock | |||
Stockholders' equity | |||
Preferred stock, value | $ 5,867,829 | $ 6,146,880 | $ 6,146,880 |
Consolidated Condensed Interi_2
Consolidated Condensed Interim Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 |
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | |
Preferred stock special voting shares issued | 1 | 1 | 1 | |
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |
Common stock, shares authorized | 7,000,000 | 7,000,000 | 5,000,000 | |
Common stock, shares issued | 2,620,033 | 22,966,668 | 1,450,963 | |
Series A Preferred Stock | ||||
Preferred stock, shares issued | 278,530 | 278,530 | 278,530 | |
Preferred stock, shares outstanding | 278,530 | 278,530 | 278,530 | |
Series B Preferred Stock | ||||
Preferred stock, shares issued | 841,113 | 881,113 | 881,113 | 881,113 |
Preferred stock, shares outstanding | 841,113 | 881,113 | 881,113 | 881,113 |
Consolidated Condensed Interi_3
Consolidated Condensed Interim Statements of Loss and Comprehensive Loss - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Expenses | ||||||
Research and development | $ 735,844 | $ 1,779,609 | $ 2,702,213 | $ 5,856,197 | $ 7,132,952 | $ 5,003,640 |
General and administrative | 935,530 | 1,155,038 | 2,796,884 | 2,911,538 | 4,041,711 | 3,317,189 |
Operating expenses | 1,671,374 | 2,934,647 | 5,499,097 | 8,767,735 | 11,174,663 | 8,320,829 |
Other loss (income) | ||||||
Change in fair value of derivative liability | 189 | (2,160) | (852) | (57,839) | (60,111) | (245,963) |
Foreign exchange loss | 5,819 | 6,420 | 16,754 | 57,406 | 57,003 | 7,355 |
Interest income | (13,397) | (5,850) | (49,513) | (6,241) | (33,243) | (457) |
Other loss (income) | (7,389) | (1,590) | (33,611) | (6,674) | (36,351) | (239,065) |
Net and comprehensive loss for the period | 1,663,985 | 2,933,057 | 5,465,486 | 8,761,061 | 11,138,312 | 8,081,764 |
Computation of basic loss per share | ||||||
Net and comprehensive loss for the period | 1,663,985 | 2,933,057 | 5,465,486 | 8,761,061 | 11,138,312 | 8,081,764 |
Series B Preferred stock dividend | 23,202 | 46,626 | 75,477 | 142,358 | 176,236 | 790,454 |
Net and comprehensive loss available to common stockholders | $ 1,687,187 | $ 2,979,683 | $ 5,540,963 | $ 8,903,419 | $ 11,314,548 | $ 8,872,218 |
Basic and fully diluted loss per share | $ 0.67 | $ 1.31 | $ 2.27 | $ 4.41 | $ 5.42 | $ 7.36 |
Basic weighted average number of shares | 2,518,452 | 2,283,245 | 2,444,065 | 2,017,977 | 2,086,142 | 1,204,708 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common stock | Additional paid-in capital | Accumulated other comprehensive income | Preferred stock | Warrants | Accumulated deficit | Total | |
Balance at Jun. 30, 2016 | $ 1,119 | $ 28,843,173 | $ 21,178 | $ 6,572,785 | $ 1,658,382 | $ (32,237,859) | $ 4,858,778 | |
Balance, Shares at Jun. 30, 2016 | 1,118,702 | |||||||
Issuance of shares and warrants - net of issue costs | $ 277 | 4,981,093 | 2,950,737 | 7,932,107 | ||||
Issuance of shares and warrants - net of issue costs, shares | 276,923 | |||||||
Shares issued for services | $ 6 | 563,994 | 564,000 | |||||
Shares issued for services, shares | 6,000 | |||||||
Warrants issued for services | 81,602 | 81,602 | [1] | |||||
Reclassification of stock option liability | 260,969 | 260,969 | ||||||
Warrants exercised for cash | $ 24 | 908,399 | (120,147) | 788,276 | ||||
Warrants exercised for cash, shares | 23,953 | |||||||
Cashless exercise of warrants | 5,159 | 5,159 | ||||||
Cashless exercise of warrants, shares | 59 | |||||||
Amendment of warrants (note 4) | 53,006 | 53,006 | ||||||
Stock option expense | 124,747 | 124,747 | ||||||
Conversion of Series B preferred stock to common stock | $ 5 | 147,370 | (147,375) | |||||
Conversion of Series B preferred stock to common stock, shares | 5,281 | |||||||
Series A preferred cash dividend (note 3) | (8,356) | (8,356) | ||||||
Series B preferred stock dividend | $ 20 | 790,434 | (790,454) | |||||
Series B preferred stock dividend, shares | 20,045 | |||||||
Loss for the year | (8,081,764) | (8,081,764) | ||||||
Balance at Jun. 30, 2017 | $ 1,451 | 36,678,344 | 21,178 | 6,425,410 | 4,570,574 | (41,118,433) | 6,578,524 | |
Balance, Shares at Jun. 30, 2017 | 1,450,963 | |||||||
Issuance of shares and warrants - net of issue costs | $ 800 | 6,191,785 | 2,752,751 | |||||
Issuance of shares and warrants - net of issue costs, shares | 800,000 | |||||||
Shares issued for services | 4,821 | |||||||
Shares issued for services, shares | 407 | |||||||
Warrants issued for services | 155,204 | |||||||
Warrants exercised for cash | $ 25 | 312,475 | ||||||
Warrants exercised for cash, shares | 25,000 | |||||||
Stock option expense | 430,673 | |||||||
Performance stock unit expense | ||||||||
Series A preferred cash dividend (note 3) | (6,267) | |||||||
Series B preferred stock dividend | $ 15 | 142,343 | (142,358) | |||||
Series B preferred stock dividend, shares | 14,881 | |||||||
Loss for the year | (8,761,061) | |||||||
Balance at Mar. 31, 2018 | $ 2,291 | 43,760,441 | 7,478,529 | (50,028,119) | ||||
Balance, Shares at Mar. 31, 2018 | 2,291,251 | |||||||
Balance at Jun. 30, 2017 | $ 1,451 | 36,678,344 | 21,178 | 6,425,410 | 4,570,574 | (41,118,433) | 6,578,524 | |
Balance, Shares at Jun. 30, 2017 | 1,450,963 | |||||||
Issuance of shares and warrants - net of issue costs | $ 800 | 5,371,693 | 3,572,843 | 8,945,336 | ||||
Issuance of shares and warrants - net of issue costs, shares | 800,000 | |||||||
Shares issued for services | $ 1 | 8,581 | 8,582 | |||||
Shares issued for services, shares | 863 | |||||||
Warrants issued for services | 192,400 | 192,400 | [1] | |||||
Warrants exercised for cash | $ 25 | 418,810 | (106,335) | 312,500 | ||||
Warrants exercised for cash, shares | 25,000 | |||||||
Stock option expense | 495,925 | 495,925 | ||||||
Performance stock unit expense | 48,624 | 48,624 | ||||||
Series A preferred cash dividend (note 3) | (8,356) | (8,356) | ||||||
Series B preferred stock dividend | $ 20 | 176,216 | (176,236) | |||||
Series B preferred stock dividend, shares | 19,841 | |||||||
Loss for the year | (11,138,312) | (11,138,312) | ||||||
Balance at Jun. 30, 2018 | $ 2,297 | 43,198,193 | 21,178 | 6,425,410 | 8,229,482 | (52,441,337) | 5,435,223 | |
Balance, Shares at Jun. 30, 2018 | 2,296,667 | |||||||
Balance at Dec. 31, 2017 | $ 2,261 | 43,259,228 | 7,321,844 | (47,046,347) | ||||
Balance, Shares at Dec. 31, 2017 | 2,260,884 | |||||||
Shares issued for services | 4,821 | |||||||
Shares issued for services, shares | 407 | |||||||
Warrants issued for services | 156,685 | |||||||
Warrants exercised for cash | $ 25 | 312,475 | ||||||
Warrants exercised for cash, shares | 25,000 | |||||||
Stock option expense | 137,296 | |||||||
Series A preferred cash dividend (note 3) | (2,089) | |||||||
Series B preferred stock dividend | $ 5 | 46,621 | (46,626) | |||||
Series B preferred stock dividend, shares | 4,960 | |||||||
Balance at Mar. 31, 2018 | $ 2,291 | 43,760,441 | 7,478,529 | (50,028,119) | ||||
Balance, Shares at Mar. 31, 2018 | 2,291,251 | |||||||
Balance at Jun. 30, 2018 | $ 2,297 | 43,198,193 | $ 21,178 | $ 6,425,410 | 8,229,482 | (52,441,337) | 5,435,223 | |
Balance, Shares at Jun. 30, 2018 | 2,296,667 | |||||||
Issuance of shares and warrants - net of issue costs | $ 297 | 2,920,695 | (2,210,697) | |||||
Issuance of shares and warrants - net of issue costs, shares | 296,667 | |||||||
Shares issued for services | $ 2 | 10,267 | ||||||
Shares issued for services, shares | 2,269 | |||||||
Warrants issued for services | 36,534 | |||||||
Stock option expense | 355,388 | |||||||
Conversion of Series B preferred stock to common stock | $ 10 | 279,041 | ||||||
Conversion of Series B preferred stock to common stock, shares | 10,000 | |||||||
Performance stock unit expense | 183,205 | 183,205 | ||||||
Series A preferred cash dividend (note 3) | (6,267) | |||||||
Series B preferred stock dividend | $ 14 | 75,463 | (75,477) | |||||
Series B preferred stock dividend, shares | 14,430 | |||||||
Loss for the year | (5,465,486) | |||||||
Balance at Mar. 31, 2019 | $ 2,620 | 47,022,252 | 6,055,319 | (57,988,567) | 1,259,161 | |||
Balance, Shares at Mar. 31, 2019 | 2,620,033 | |||||||
Balance at Dec. 31, 2018 | $ 2,614 | 46,851,817 | 6,046,587 | (56,299,291) | ||||
Balance, Shares at Dec. 31, 2018 | 2,614,342 | |||||||
Issuance of shares and warrants - net of issue costs | (16,186) | |||||||
Shares issued for services | $ 1 | 3,512 | ||||||
Shares issued for services, shares | 956 | |||||||
Warrants issued for services | 8,732 | |||||||
Stock option expense | 99,735 | |||||||
Performance stock unit expense | 60,177 | |||||||
Series A preferred cash dividend (note 3) | (2,089) | |||||||
Series B preferred stock dividend | $ 5 | 23,197 | (23,202) | |||||
Series B preferred stock dividend, shares | 4,735 | |||||||
Balance at Mar. 31, 2019 | $ 2,620 | $ 47,022,252 | $ 6,055,319 | $ (57,988,567) | $ 1,259,161 | |||
Balance, Shares at Mar. 31, 2019 | 2,620,033 | |||||||
[1] | Warrants issued for services are exercisable at various prices and expire at the various dates noted in the table below. |
Consolidated Condensed Interi_4
Consolidated Condensed Interim Statements of Cash Flows - USD ($) | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities | ||||
Loss for the period | $ (5,465,486) | $ (8,761,061) | $ (11,138,312) | $ (8,081,764) |
Items not affecting cash | ||||
Amortization of intangible assets | 13,548 | 17,869 | 24,528 | 16,683 |
Change in fair value of derivative liability | (852) | (57,839) | (60,111) | (245,963) |
Shares issued for services | 10,269 | 4,821 | 8,582 | 564,000 |
Warrants issued for services | 36,534 | 155,204 | 192,400 | 81,602 |
Stock option expense | 355,388 | 430,673 | 495,925 | 124,747 |
Performance stock unit expense | 183,205 | 48,624 | ||
Changes in non-cash working capital | ||||
Interest, taxes and other receivables | 30,433 | 14,578 | 37,076 | (58,208) |
Prepaid expenses and deposits | 794,859 | 135,293 | 173,192 | (1,063,991) |
Accounts payable and accrued liabilities | (425,383) | 708,634 | 295,774 | 598,310 |
Related party payables | (47,189) | 33,816 | 71,472 | 45,513 |
Net cash flows from operating activities | (4,514,674) | (7,318,012) | (9,850,850) | (8,019,071) |
Cash flows from investing activities | ||||
Intangible assets - website development costs | (12,649) | (12,649) | (20,956) | |
Net cash flows from investing activities | (12,649) | (12,649) | (20,956) | |
Cash flows from financing activities | ||||
Net proceeds from the issuance of shares and warrants | 8,945,336 | 8,945,336 | 7,932,107 | |
Net proceeds from the exercise and exchange of warrants | 726,179 | 312,500 | 312,500 | 545,026 |
Series A preferred cash dividend | (6,267) | (6,267) | (8,356) | (8,356) |
Deferred financing costs | (25,000) | |||
Net cash flows from financing activities | 694,912 | 9,251,569 | 9,249,480 | 8,468,777 |
(Decrease) increase in cash and cash equivalents | (3,819,762) | 1,920,908 | (614,019) | 428,750 |
Cash and cash equivalents - beginning of period | 5,971,995 | 6,586,014 | 6,586,014 | 6,157,264 |
Cash and cash equivalents - end of period | $ 2,152,233 | $ 8,506,922 | $ 5,971,995 | $ 6,586,014 |
Going Concern, Nature of Operat
Going Concern, Nature of Operations, and Corporate History | 9 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Going concern, nature of operations, and corporate history | 1 Going concern, nature of operations, and corporate history Going concern These consolidated condensed interim financial statements have been prepared on a going concern basis which assumes that DelMar Pharmaceuticals, Inc. (the “Company”) will continue its operations for the foreseeable future and contemplates the realization of assets and the settlement of liabilities in the normal course of business. For the nine months ended March 31, 2019, the Company reported a loss of $5,465,486, and a negative cash flow from operations of $4,514,674. The Company had an accumulated deficit of $57,988,567 as of March 31, 2019. As of March 31, 2019, the Company had cash and cash equivalents on hand of $2,152,233. The Company is in the development stage and has not generated any revenues to date. The Company does not have the prospect of achieving revenues until such time that its product candidate is commercialized, or partnered, which may not ever occur. In the near future, the Company will require additional funding to maintain its clinical trials, research and development projects, and for general operations. These circumstances indicate substantial doubt exists about the Company’s ability to continue as a going concern. Consequently, management is pursuing various financing alternatives to fund the Company’s operations so it can continue as a going concern. Management plans to secure the necessary financing through the issue of new equity and/or the entering into of strategic partnership arrangements. The Company may tailor its drug candidate development program based on the amount of funding the Company is able to raise in the future. Nevertheless, there is no assurance that these initiatives will be successful. These financial statements do not give effect to any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern. Such adjustments could be material. Nature of operations The Company is a clinical stage drug development company with a focus on the treatment of cancer that is conducting clinical trials in the United States and China with our product candidate, VAL-083, as a potential new treatment for glioblastoma multiforme, the most common and aggressive form of brain cancer. The Company has also acquired certain commercial rights to VAL-083 in China where it is approved as a chemotherapy for the treatment of chronic myelogenous leukemia and lung cancer. In order to accelerate the Company’s development timelines, the Company leverages existing clinical and commercial data from a wide range of sources. The Company may seek marketing partnerships 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, Canada, 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 Company entered into and closed an exchange agreement (the “Exchange Agreement”), with Del Mar Pharmaceuticals (BC) Ltd. (“Del Mar (BC)”), 0959454 B.C. Ltd. (“Callco”), and 0959456 B.C. Ltd. (“Exchangeco”) and the security holders of Del Mar (BC). Upon completion of the Exchange Agreement, Del Mar (BC) became a wholly-owned subsidiary of the Company (the “Reverse Acquisition”). DelMar Pharmaceuticals, Inc. is the parent company of Del Mar (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, Del Mar (BC), Callco and Exchangeco. | 1 Going concern, nature of operations, and corporate history Going concern These consolidated financial statements have been prepared on a going concern basis which assumes that DelMar Pharmaceuticals, Inc. (the “Company”) will continue its operations for the foreseeable future and contemplates the realization of assets and the settlement of liabilities in the normal course of business. For the year ended June 30, 2018, the Company reported a loss of $11,138,312, and a negative cash flow from operations of $9,850,850. The Company had an accumulated deficit of $52,441,337 as of June 30, 2018. As of June 30, 2018, the Company has cash and cash equivalents on hand of $5,971,995. The Company is in the development stage and has not generated any revenues to date. The Company does not have the prospect of achieving revenues until such time that its product candidate is commercialized, or partnered, which may not ever occur. In the near future, the Company will require additional funding to maintain its clinical trials, research and development projects, and for general operations. These circumstances indicate substantial doubt exists about the Company’s ability to continue as a going concern. Consequently, management is pursuing various financing alternatives to fund the Company’s operations so it can continue as a going concern. Management plans to secure the necessary financing through the issue of new equity and/or the entering into of strategic partnership arrangements. The Company may tailor its drug candidate development program based on the amount of funding the Company is able to raise in the future. Nevertheless, there is no assurance that these initiatives will be successful. These financial statements do not give effect to any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern. Such adjustments could be material. Nature of operations The Company is a clinical-stage drug development company with a focus on the treatment of cancer that is conducting clinical trials in the United States with its product candidate, VAL-083, as a potential new treatment for glioblastoma multiforme, the most common and aggressive form of brain cancer. The Company has also acquired certain commercial rights to VAL-083 in China where it is approved as a chemotherapy for the treatment of chronic myelogenous leukemia and lung cancer. In order to accelerate the Company’s development timelines, the Company leverages existing clinical and commercial data from a wide range of sources. The Company may seek marketing partnerships in order to 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 “Reverse Acquisition Closing Date”), the Company entered into and closed an exchange agreement (the “Exchange Agreement”), with Del Mar Pharmaceuticals (BC) Ltd. (“Del Mar (BC)”), 0959454 B.C. Ltd. (“Callco”), and 0959456 B.C. Ltd. (“Exchangeco”) and the security holders of Del Mar (BC). Upon completion of the Exchange Agreement, Del Mar (BC) became a wholly-owned subsidiary of the Company (the “Reverse Acquisition”). DelMar Pharmaceuticals, Inc. is the parent company of Del Mar (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, Del Mar (BC), Callco and Exchangeco. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Jun. 30, 2018 | |
Accounting Policies [Abstract] | ||
Significant accounting policies | 2 Significant accounting policies Basis of presentation The consolidated condensed interim financial statements of the Company have been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) and are presented in United States dollars. The functional currency of the Company and each of its subsidiaries is the United States dollar. The accompanying consolidated condensed interim financial statements include the accounts of the Company and its wholly-owned subsidiaries, Del Mar (BC), Callco, and Exchangeco. All intercompany balances and transactions have been eliminated in consolidation. The principal accounting policies applied in the preparation of these consolidated condensed interim financial statements are set out below and have been consistently applied to all periods presented. Unaudited interim financial data The accompanying unaudited consolidated condensed interim financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all of the information and the notes required by U.S. GAAP for complete financial statements. These unaudited consolidated condensed interim financial statements should be read in conjunction with the audited financial statements of the Company as at June 30, 2018 included in our Form 10-K. In the opinion of management, the unaudited consolidated condensed interim financial statements reflect all adjustments, consisting of normal and recurring adjustments, necessary for a fair presentation. The results for three and nine months ended March 31, 2019 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2019 or for any other future annual or interim period. 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 of, or during, the reporting period. Actual results could significantly differ from those estimates. Significant areas requiring management to make estimates include the derivative liability, the valuation of equity instruments issued for services, and clinical trial accruals. Further details of the nature of these assumptions and conditions may be found in the relevant notes to these consolidated condensed interim financial statements. Loss per share Income or loss per share is calculated based on the weighted average number of common shares outstanding. For the three- and nine-month periods ended March 31, 2019 and 2018, diluted loss per share does not differ from basic loss per share since the effect of the Company’s warrants, stock options, performance stock units, and convertible preferred shares is anti-dilutive. As of March 31, 2019, potential shares of common stock of 862,502 (2018 – 1,428,128) related to outstanding warrants, 292,683 (2018 – 172,085) relating to stock options, 120,000 (2018 – 0) relating to performance stock units, and 210,279 (2018 – 220,279) relating to outstanding Series B convertible preferred shares were excluded from the calculation of net loss per common share because their inclusion would be anti-dilutive. 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. Recently adopted Accounting Standards Board (“ASU”) 2017-09 — Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting The amendments in this update provide guidance about which changes to the terms, or conditions of a stock-based payment award, require an entity to apply modification accounting in Topic 718. The amendments in ASU 2017-09 are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for (1) public business entities for reporting periods for which financial statements have not yet been issued and (2) all other entities for reporting periods for which financial statements have not yet been made available for issuance. The adoption of ASU 2017-09 did not have a material impact on our results of operations or financial position. ASU 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 reporting periods beginning after December 15, 2017. The adoption of ASU 2016-01 did not have a material impact on our results of operations or financial position. Not yet adopted ASU 2017-11 — I. Accounting for Certain Financial Instruments with Down Round Features, II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Non-public Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception The amendments in this update are intended to reduce the complexity associated with the accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, a down round feature would no longer cause a freestanding equity-linked financial instrument (or an embedded conversion option) to be accounted for as a derivative liability at fair value with changes in fair value recognized in current earnings. In addition, the indefinite deferral of certain provisions of Topic 480 have been re-characterized to a scope exception. The re-characterization has no accounting effect. ASU 2017-11 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is 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 2018-07 — Stock Compensation (Topic 718) Improvements to Nonemployee Shares-based Payment Accounting The amendments in this update are intended to the reduce cost and complexity and to improve financial reporting for share-based payments issued to nonemployees. The ASU expands the scope of Topic 718, Compensation —Stock Compensation, which currently only includes share-based payments issued to employees, to also include share-based payments issued to nonemployees for goods and services. The existing guidance on nonemployee share-based payments is significantly different from current guidance for employee share-based payments. This ASU expands the scope of the employee share-based payments guidance to include share-based payments issued to nonemployees. By doing so, the FASB improves the accounting of nonemployee share-based payments issued to acquire goods and services used in its own operations. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company is currently evaluating the potential impact of the adoption of this standard. | 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 20,000,000 authorized shares of common stock to 5,000,000 shares authorized. The par value of its common stock was unchanged at $0.001 per share, post-split. All common shares, warrants, stock options, conversion ratios, and per share information in these consolidated financial statements give retroactive effect to the 1-for-4 reverse stock split. The Company’s authorized and issued preferred stock was not affected by the split. Basis of presentation The consolidated 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 years presented. Consolidation The consolidated financial statements of the Company include the accounts of Del Mar (BC), Callco, and Exchangeco as at and for the years ended June 30, 2018 and 2017. Intercompany balances and transactions have been eliminated in 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 of, or during, the reporting period. Actual results could significantly differ from those estimates. Significant areas requiring management to make estimates include the derivative liability, the valuation of equity instruments issued for services, and clinical trial accruals. 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 and highly liquid investments with original maturities from the purchase date of three months or less that can be readily convertible into known amounts of cash. 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, 2018 and 2017 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 deferred 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. Deferred 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. Deferred 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 deferred 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 deferred 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, the Company uses 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 binomial model as well as a Black-Scholes Option Pricing Model (based on a closed-form model that uses a fixed equation) to estimate the fair value of the share warrants. Determining the appropriate fair-value model and calculating the fair value of warrants requires considerable judgment. Any change in the estimates (specifically probabilities and volatility) 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 the Company. 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 amounts ultimately 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 3 financial instrument as volatility is considered a Level 3 input. The Company has the following liabilities under the fair value hierarchy: June 30, 2018 Liability Level 1 Level 2 Level 3 Derivative liability $ — $ — $ 1,117 June 30, 2017 Liability Level 1 Level 2 Level 3 Derivative liability $ — $ — $ 61,228 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. At June 30, 2018, the total capitalized cost was $79,910 (2017 – $67,261) and the Company has recognized $24,528 and $16,683, respectively, in amortization expense during the years ended June 30, 2018 and 2017. 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 Company has achieved regulatory approval, patent costs will be deferred and amortized over the remaining life of the related patent. Research and development costs (including clinical trial expenses and accruals) Research and development expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with research and development. Research and development expenses also include third-party development and clinical trial expenses noted bel0w. Such costs related to research and development are included in research and development expense until the point that technological feasibility is reached which, for the Company’s drug candidate, is generally shortly before the drug is approved by the relevant food and drug administration. Once technological feasibility is reached, such costs will be 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 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 by maintaining regular communication with the service providers. Differences between actual expenses and estimated expenses recorded are adjusted for in the period in which they become known. 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. As at June 30, 2018 and 2017, 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 actual forfeitures, using the accelerated attribution method. The Company recognizes forfeitures as they occur. 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. Performance stock units The Company also accounts for performance stock units (PSU’s) under 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. As vesting of the PSU’s is based on a number of factors, the determination of the grant-date fair value for PSU’s has been estimated using a Monte Carlo simulation approach which includes variables such as the expected volatility of the Company’s share price and interest rates to generate potential future outcomes. 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 the PSUs. Such value is recognized as expense over the derived service period using the accelerated attribution method. The estimation of PSUs 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. 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, 2018 and 2017 diluted loss per share does not differ from basic loss per share since the effect of the Company’s warrants, stock options, performance stock units, and convertible preferred shares is anti-dilutive. As at June 30, 2018, potential common shares of 1,690,810 (2017 – 774,976) related to outstanding warrants and stock options, 120,000 (2017 – 0) relating to performance stock units, and 220,279 (2017 – 220,279) relating to outstanding Series B 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 primarily in one geographic area, being North America. The Company is conducting one clinical trial in China but the planned expenses to be incurred over the course of the study are not expected to be significant. 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. Recently adopted Accounting Standards Board (“ASU”) 2016-09 — 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 adoption of ASU 2016-09 did not have a material impact on our results of operations or financial condition. Not yet adopted ASU 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 reporting periods beginning after December 15, 2017. The adoption of ASU 2016-01 is not expected to have a material impact on our results of operations or financial condition. ASU 2017-09 — Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting The amendments in this update provide guidance about which changes to the terms, or conditions of a stock-based payment award, require an entity to apply modification accounting in Topic 718. The amendments in ASU 2017-09 are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for (1) public business entities for reporting periods for which financial statements have not yet been issued and (2) all other entities for reporting periods for which financial statements have not yet been made available for issuance. The Company is currently evaluating the potential impact of the adoption of this standard. ASU 2017-11 — I. Accounting for Certain Financial Instruments with Down Round Features, II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Non-public Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception The amendments in this update are intended to reduce the complexity associated with the accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, a down round feature would no longer cause a freestanding equity-linked financial instrument (or an embedded conversion option) to be accounted for as a derivative liability at fair value with changes in fair value recognized in current earnings. In addition, the indefinite deferral of certain provisions of Topic 480 have been re-characterized to a scope exception. The re-characterization has no accounting effect. ASU 2017-11 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.Early adoption is 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 2018-07 — Stock Compensation (Topic 718) Improvements to Nonemployee Shares-based payment Accounting The amendments in this update are intended to the reduce cost and complexity and to improve financial reporting for share-based payments issued to nonemployees. The ASU expands the scope of Topic 718, Compensation — Stock Compensation, which currently only includes share-based payments issued to employees, to also include share-based payments issued to nonemployees for goods and services. The existing guidance on nonemployee share-based payments is significantly different from current guidance for employee share-based payments. This ASU expands the scope of the employee share-based payments guidance to include share-based payments issued to nonemployees. By doing so, the FASB improves the accounting of nonemployee share-based payments issued to acquire goods and services used in its own operations. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company is currently evaluating the potential impact of the adoption of this standard. |
Valent Technologies, LLC
Valent Technologies, LLC | 9 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Jun. 30, 2018 | |
Valent Technologies, LLC [Abstract] | ||
Valent Technologies, LLC | 3 Valent Technologies, LLC On September 30, 2014, the Company entered into an exchange agreement (the “Valent Exchange Agreement”) with Valent Technologies, LLC (“Valent”), an entity owned by Dr. Dennis Brown, the Company’s Chief Scientific Officer, and Del Mar (BC). Pursuant to the Valent Exchange Agreement, Valent exchanged its loan payable in the outstanding amount of $278,530 (including aggregate accrued interest to September 30, 2014 of $28,530), issued to Valent by Del Mar (BC), for 278,530 shares of the Company’s Series A Preferred Stock. The Series A Preferred Stock has a stated value of $1.00 per share (the “Series A Stated Value”) and is not convertible into common stock. The holder of the Series A Preferred Stock is entitled to dividends at the rate of 3% of the Series A Stated Value per year, payable quarterly in arrears. For the three months ended March 31, 2019 and 2018 respectively, the Company recorded $2,089 related to the dividend payable to Valent. For the nine months ended March 31, 2019 and 2018 respectively, the Company recorded $6,267 related to the dividend payable to Valent. The dividends have been recorded as a direct increase in accumulated deficit. | 3 Valent Technologies LLC agreements One of the Company’s officers is a principal of Valent Technologies, LLC (“Valent”) and as result Valent is a related party to the Company. On September 12, 2010, the Company entered into a Patent Assignment Agreement (the “Valent Assignment Agreement”) with Valent pursuant to which Valent transferred to the Company all of its rights, title and interest in and to the patents for VAL-083 owned by Valent. The Company 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 Valent Assignment Agreement, Valent is entitled to receive a future royalty on all 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 Valent Assignment Agreement. On September 30, 2014, the Company entered into an exchange agreement (the “Valent Exchange Agreement”) with Valent and Del Mar (BC). Pursuant to the Valent Exchange Agreement, Valent exchanged its loan payable in the outstanding amount of $278,530 (including aggregate accrued interest to September 30, 2014 of $28,530), issued to Valent by Del Mar (BC), for 278,530 shares of the Company’s Series A Preferred Stock. The Series A Preferred Stock has a stated value of $1.00 per share (the “Series A Stated Value”) and is not convertible into common stock. The holder of the Series A Preferred Stock is entitled to dividends at the rate of 3% of the Series A Stated Value per year, payable quarterly in arrears. For each of the years ended June 30, 2018 and 2017 the Company recorded $8,356 related to the dividend paid to Valent. The dividends have been recorded as a direct increase in accumulated deficit. During the year ended June 30, 2017, Valent exercised 12,500 common stock purchase warrants that had been issued to Valent pursuant to the Valent Assignment Agreement. The exercised warrants represented all warrants that had been issued to Valent. The warrants were exercised at $15.40 per share (CA $20.00) for total proceeds of $192,075. |
Derivative Liability
Derivative Liability | 9 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [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 condensed interim statement of loss and comprehensive loss. The Company’s derivative liability is summarized as follows: Three months ended March 31, 2019 2018 $ $ Opening balance 76 5,549 Change in fair value of warrants 189 (2,160 ) Closing balance 265 3,389 Less current portion - (5 ) Long term portion 265 3,384 Nine months ended March 31, 2019 2018 $ $ Opening balance 1,117 61,228 Change in fair value of warrants (852 ) (57,839 ) Closing balance 265 3,389 Less current portion - (5 ) Long term portion 265 3,384 The derivative liability consists of the following warrants: March 31, 2019 Number of warrants $ 2015 Agent Warrants 2,177 265 Closing balance 2,177 265 Less current portion - - Long-term portion 2,177 265 | 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 remeasured 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 issued an aggregate of 328,125 units at a purchase price of $32.00 per unit, for aggregate gross proceeds of $10,500,000. Each unit consisted of one share of common stock and one five-year warrant (the “2013 Investor Warrants”) to purchase one share of common stock at an initial exercise price of $32.00. The exercise price of the 2013 Investor Warrants is 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 $0.04 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 $64.00 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 three months ended September 30, 2015, the exercise price of all of the 2013 Investor Warrants was reduced from $32.00 to $31.40. As a result of the financing completed by the Company during the three months ended September 30, 2017, the exercise price of certain of the 2013 Investor Warrants was further reduced from $31.40 to $26.80. The change in exercise price did not result in a material change in the fair value of the derivative liability. All of the 2013 Investor Warrants giving rise to their respective portion of the derivative liability have expired as of June 30, 2018. 2013 Investor Warrant exercises During the year ended June 30, 2017, 6,010 of the 2013 Investor Warrants were exercised at an exercise price of $31.40 per share. Also, 500 of the previously amended 2013 Investor Warrants were exercised. The Company received proceeds of $204,659 from these exercises. The warrants that have been exercised were revalued at their respective exercise dates and then the reclassification to equity was recorded resulting in $238,474 of the derivative liability being reclassified to equity. There were no exercises of 2013 Investor Warrants during the year ended June 30, 2018. 2013 Investor Warrant amendments During the year ended June 30, 2017, 1,594 of the 2013 Investor Warrants were amended. As a result, the Company has reclassified $53,006 from the derivative liability to equity. The 2013 Investor Warrants were revalued to their respective amendment dates and were then reclassified to equity. There were no amendments of 2013 Investor Warrants during the year ended June 30, 2018. 2015 Agent Warrants As part of the Company’s financing completed in a prior period, the Company issued warrants to purchase 2,348 shares of common stock to certain placement agents (“2015 Agent Warrants”) and recognized them as a derivative liability of $29,594 at the time of issuance. The 2015 Agent Warrants are exercisable at a per share price equal to $30.00 until July 15, 2020. During the year ended June 30, 2017, 68 of the 2015 Agent Warrants were exercised for cash proceeds of $2,040 and 100 of the 2015 Agent Warrants were exercised on a cashless basis for 59 shares of common stock. The total reclassification to equity subsequent to revaluation at the respective exercise dates was $9,935. There were no exercises of the 2015 Agent Warrants during the year ended June 30, 2018. The Company’s derivative liability is summarized as follows: Years ended 2018 2017 Opening balance 61,228 693,700 Change in fair value of warrants (60,111 ) (331,057 ) Reclassification to equity upon amendment of warrants — (53,006 ) Reclassification to equity upon exercise of warrants — (248,409 ) Closing balance 1,117 61,228 Less current portion — (33,091 ) Long-term portion 1,117 28,137 The derivative liability consists of the following warrants as at June 30, 2018 and 2017: Year ended Number of $ Warrants issued for services 4,375 — 2015 Agent warrants 2,177 1,117 Closing balance 6,552 1,117 Less current portion — — Long-term portion 6,552 1,117 Year ended Number of $ 2013 investor warrants 10,513 33,091 Warrants issued for services 4,375 4,468 2015 Agent warrants 2,177 23,669 Closing balance 17,065 61,228 Less current portion (10,513 ) (33,091 ) Long-term portion 6,552 28,137 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Jun. 30, 2018 | |
Equity [Abstract] | ||
Stockholders' equity | 5 Stockholders' equity Preferred stock Series B Preferred Shares During the year ended June 30, 2016, the Company issued an aggregate of 902,238 shares of Series B Preferred Stock at a purchase price of at $8.00 per share. Each share of Series B Preferred Stock is convertible into 0.25 shares of common stock equating to a conversion price of $32.00 (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 $80.00 or five years from the final closing date. The holders of the Series B Preferred Stock are entitled to an annual cumulative, in arrears, dividend at the rate of 9% payable quarterly. The 9% dividend accrues quarterly commencing on the date of issue and is payable quarterly on June 30, September 30, March 31, and March 31 of each year commencing on June 30, 2016. Dividends are 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 Stock does not contain any repricing features. Each share of Series B Preferred Stock entitles its holder to vote with the common stock on an as-converted basis. 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 Stock, in aggregate, a low, single-digit royalty based on their pro rata ownership of the Series B Preferred Stock 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 Series B Preferred Stock 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. Pursuant to the Series B Preferred Stock dividend, during the three months ended March 31, 2019, the Company issued 4,735 (2018 – 4,960) shares of common stock and recognized $23,202 (2018 – $46,626). During the nine months ended March 31, 2019, the Company issued 14,430 (2018 – 14,881) shares of common stock and recognized $75,477 (2018 – $142,358). These dividends have been recognized as a direct increase in accumulated deficit. During the nine months ended March 31, 2019, 40,000 Series B Preferred shares were converted to 10,000 shares of common stock. There were no conversions during the three months ended March 31, 2019 and 2018 or for the nine months ended March 31, 2018. A total of 841,113 (2018 – 881,113) shares of Series B Preferred Stock are outstanding as of March 31, 2019, such that a total of 210,279 (2018 – 220,279) shares of common stock are issuable upon conversion of the Series B Preferred Stock as at March 31, 2019. Converted shares are rounded up to the nearest whole share. Series A Preferred Shares Effective September 30, 2014 pursuant to the Company's Valent Exchange Agreement (note 3), the Company filed a Certificate of Designation of Series A Preferred Stock (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 is 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. Common stock Shares of common stock Common stock Additional paid-in capital Warrants Accumulated deficit $ $ $ $ Nine months ended March 31, 2019 Balance – June 30, 2018 2,296,667 2,297 43,198,193 8,229,482 (52,441,337 ) Exercise and exchange of warrants 296,667 297 2,920,695 (2,210,697 ) - Warrants issued for services - - - 36,534 - Conversion of Series B preferred stock to common stock 10,000 10 279,041 - - Series B Preferred stock dividend 14,430 14 75,463 - (75,477 ) Shares issued for services 2,269 2 10,267 - - Stock option expense - - 355,388 - - Performance stock unit expense - - 183,205 - - Series A Preferred cash dividend - - - - (6,267 ) Loss for the period - - - - (5,465,486 ) Balance – March 31, 2019 2,620,033 2,620 47,022,252 6,055,319 (57,988,567 ) Three months ended March 31, 2019 Balance – December 31, 2018 2,614,342 2,614 46,851,817 6,046,587 (56,299,291 ) Exercise and exchange of warrants – issue costs - - (16,186 ) - - Warrants issued for services - - - 8,732 - Series B Preferred stock dividend 4,735 5 23,197 - (23,202 ) Shares issued for services 956 1 3,512 - - Stock option expense - - 99,735 - - Performance stock unit expense - - 60,177 - - Series A Preferred cash dividend - - - - (2,089 ) Loss for the period - - - - (1,663,985 ) Balance – March 31, 2019 2,620,033 2,620 47,022,252 6,055,319 (57,988,567 ) Shares of common stock Common stock Additional paid-in capital Warrants Accumulated deficit $ $ $ $ Nine months ended March 31, 2018 Balance – June 30, 2017 1,450,963 1,451 36,678,344 4,570,574 (41,118,433 ) Issuance of shares and warrants 800,000 800 6,191,785 2,752,751 - Warrants exercised for cash 25,000 25 312,475 - - Warrants issued for services - - - 155,204 - Series B Preferred stock dividend 14,881 15 142,343 - (142,358 ) Shares issued for services 407 - 4,821 - - Stock option expense - - 430,673 - - Series A Preferred cash dividend - - - - (6,267 ) Loss for the period - - - - (8,761,061 ) Balance – March 31, 2018 2,291,251 2,291 43,760,441 7,478,529 (50,028,119 ) Three months ended March 31, 2018 Balance – December 31, 2017 2,260,884 2,261 43,259,228 7,321,844 (47,046,347 ) Warrants exercised for cash 25,000 25 312,475 - - Warrants issued for services - - - 156,685 - Series B Preferred stock dividend 4,960 5 46,621 - (46,626 ) Shares issued for services 407 - 4,821 - - Stock option expense - - 137,296 - - Series A Preferred cash dividend - - - - (2,089 ) Loss for the period - - - - (2,933,057 ) Balance – March 31, 2018 2,291,251 2,291 43,760,441 7,478,529 (50,028,119 ) The issued and outstanding common shares at March 31, 2019 include 9,063 (June 30, 2018 – 91,276) shares of common stock on an as-exchanged basis with respect to the shares of Exchangeco that can be exchanged for shares of common stock of the Company. Nine months ended March 31, 2018 On September 22, 2017, the Company completed a registered direct offering (the "2018 Registered Offering") of an aggregate of 800,000 shares of common stock and warrants to purchase an additional 800,000 shares of common stock at a price of $12.50 per share and related warrant for gross proceeds of $10.0 million. The warrants have an exercise price of $12.50 per share, are immediately exercisable and have a term of exercise of five years (the "2018 Investor Warrants"). The Company engaged a placement agent for the 2018 Registered Offering. Under the Company's engagement agreement with the placement agent, the Company paid $800,000 in cash commission and other fees to the placement agent and issued warrants to purchase 40,000 shares of common stock to the placement agent (the "2018 Agent Warrants"). The 2018 Agent Warrants are exercisable at a per share price of $12.50 and have a term of exercise of five years. In addition to the cash commission and other placement agent fees, the Company also incurred additional cash issue costs of $254,664 resulting in net cash proceeds of $8,945,336. 2017 Omnibus Incentive Plan As approved by the Company's stockholders at the annual meeting of stockholders held on April 11, 2018, on July 7, 2017, as amended on February 1, 2018, the Company's board of directors approved adoption of the Company's 2017 Omnibus Equity Incentive Plan (the "2017 Plan"). The board of directors also approved a form of Performance Stock Unit Award Agreement to be used in connection with grants of performance stock units ("PSUs") under the 2017 Plan. Under the 2017 Plan, 780,000 shares of Company common stock are reserved for issuance, less the number of shares of common stock issued under the Del Mar (BC) 2013 Amended and Restated Stock Option Plan (the "Legacy Plan") or that are subject to grants of stock options made, or that may be made, under the Legacy Plan. A total of 169,985 shares of common stock have been issued under the Legacy Plan and/or are subject to outstanding stock options granted under the Legacy Plan, and a total of 122,698 shares of common stock have been issued under the 2017 Plan and/or are subject to outstanding stock options granted under the 2017 Plan. In addition, 120,000 PSU's have been issued under the 2017 Plan leaving a potential 367,317 shares of common stock available for issuance under the 2017 Plan if all such options under the Legacy Plan were exercised and no new grants are made under the Legacy Plan. The maximum number of shares of Company common stock with respect to which any one participant may be granted awards during any calendar year is 8% of the Company's fully diluted shares of common stock on the date of grant (excluding the number of shares of common stock issued under the 2017 Plan and/or the Legacy Plan or subject to outstanding awards granted under the 2017 Plan and/or the Legacy Plan). No award will be granted under the 2017 Plan on or after July 7, 2027, but awards granted prior to that date may extend beyond that date. Performance stock units The Company's board of directors has granted PSUs under the 2017 Plan to the Company's directors. The awards represent the right to receive shares of the Company's common stock upon vesting of the PSU based on targets approved by the Company's board of directors related to the Company's fully diluted market capitalization. The PSUs vest at various fully diluted market capitalization levels with full vesting occurring upon the later of one year from the grant date and the Company achieving a fully diluted market capitalization of at least $500 million for five consecutive business days. The PSUs expire on July 7, 2022. There are 120,000 PSUs outstanding as of March 31, 2019 and June 30, 2018. The Company has recognized $60,177 (2018 - $0) and $183,205 (2018 - $0) in expense related to the PSUs during the three and nine months ended March 31, 2019, respectively, with all of it being recognized as general and administrative expense. As at March 31, 2019 there was $342,936 (2018 - $0) in unrecognized compensation expense that will be recognized over the next 2.47 years. The PSUs have been valued using the following assumptions: Dividend rate 0 % Volatility 79.0 to 82.5 % Risk-free rate 2.56% to 2.71 % Term – 1.67 to 3.24 Stock Options The following table sets forth the stock options outstanding under all plans as of March 31, 2019: Number of Weighted Balance – June 30, 2018 262,683 24.27 Granted 30,000 6.10 Balance – March 31, 2019 292,683 22.40 The following table summarizes stock options currently outstanding and exercisable at March 31, 2019 under all plans: Exercise price Number Weighted Number 6.10 30,000 9.60 6,666 7.00 5,451 9.23 - 8.70 12,000 8.59 12,000 9.83 83,647 9.14 23,235 10.60 3,600 9.03 1,200 11.70 30,000 3.91 30,000 14.98 2,500 3.17 2,500 20.00 13,125 2.52 13,125 21.10 15,900 7.51 8,700 29.60 4,500 5.84 4,500 32.00 3,000 0.17 3,000 37.60 4,500 6.86 4,500 40.00 1,250 0.50 1,250 41.00 4,000 7.61 3,111 42.00 41,250 3.81 41,250 44.80 3,000 6.86 3,000 49.50 22,460 5.31 18,458 53.20 8,000 7.10 7,555 61.60 1,500 4.00 1,500 92.00 3,000 4.17 3,000 292,683 188,550 Included in the number of stock options outstanding are 2,500 stock options granted at an exercise price of CA $20.00. The exercise prices shown in the above table have been converted to US $14.98 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 granted, and those being re-valued, have been valued using a Black-Scholes pricing model using the following assumptions: March 31, Dividend rate 0 % Volatility 70.6% to 79.1 % Risk-free rate 2.1% to 3.2 % Term - years 0.1 to 3.0 The Company has recognized the following amounts as stock option expense for the periods noted: Three months ended Nine months ended 2019 2018 2019 2018 Research and development 12,889 9,145 64,466 130,546 General and administrative 86,846 128,151 290,922 300,127 99,735 137,296 355,388 430,673 All of the stock option expense for the periods ended March 31, 2019 and 2018 has been recognized as additional paid in capital. The aggregate intrinsic value of stock options outstanding at March 31, 2019 was $0 (2018 - $8,400) and the aggregate intrinsic value of stock options exercisable at March 31, 2019 was $0 (2018 - $2,800). As of March 31, 2019, there was $234,974 in unrecognized compensation expense that will be recognized over the next 2.61 years. No stock options granted under any plan have been exercised to March 31, 2019. Upon the exercise of stock options new shares will be issued. A summary of the Company's unvested stock options under all plans is presented below: Number of Weighted Weighted Unvested at June 30, 2018 138,160 14.39 7.63 Granted 30,000 6.10 2.56 Vested (64,027 ) 14.82 7.88 Unvested at March 31, 2019 104,133 11.62 5.95 Warrants Certain of the Company's warrants have been recognized as a derivative liability (note 4). The following table summarizes changes in the Company's outstanding warrants as of March 31, 2019: Description Number Balance – June 30, 2018 1,428,128 Exercised for cash (i) (197,500 ) Cashless exchange (i) (297,500 ) Issued for services (ii) 14,000 Forfeited (iii) (2,400 ) Expired (iv) (82,225 ) Balance - March 31, 2019 862,503 i) On November 25, 2018, the Company entered into Warrant Exercise and Exchange Agreements (the "Warrant Exercise Agreements") with certain holders (the "Exercising Holders") of the 2018 Investor Warrants. Pursuant to the Warrant Exercise Agreements, in order to induce the Exercising Holders to exercise the 2018 Investor Warrants for cash, the Company agreed to reduce the exercise price from $12.50 to $4.00 per share. Pursuant to the Warrant Exercise Agreements, the Exercising Holders exercised their 2018 Investor Warrants with respect to an aggregate of 197,500 shares of common stock underlying such 2018 Investor Warrants (the "Exercised Shares"). The Company received net proceeds of $726,481, comprising aggregate gross proceeds of $790,000 net of expenses of $63,519, from the exercise of the 2018 Investor Warrants. In addition, in order to further induce the Exercising Holders to exercise the 2018 Investor Warrants, the Warrant Exercise Agreements also provided for the issuance of one share of common stock to the Exercising Holders in exchange for every three shares of common stock underlying the 2018 Investor Warrants held by the Exercising Holders that are not being exercised for cash pursuant to the Warrant Exercise Agreements, if any. On November 26, 2018, the Company issued an aggregate of 99,167 shares of common stock in exchange for 297,500 2018 Investor Warrants, resulting in a 198,333 reduction in the Company's total shares of common stock outstanding on a fully-diluted basis. ii) All of the warrants issued for services are exercisable at $9.00 with 12,000 expiring on September 15, 2023 and 2,000 expiring on October 11, 2021. Of the total, 12,000 vest pro rata monthly over twelve months commencing September 15, 2018 and 2,000 are fully vested as of November 11, 2018. iii) Warrants issued for services exercisable at $11.70 were forfeited upon termination of the underlying agreement. iv) Warrants issued for services exercisable at $70.40 expired September 12, 2018. In addition, warrants exercisable at $31.40 expired March 31, 2019. The following table summarizes the Company's outstanding warrants as of March 31, 2019: Description Number Exercise Expiry date 2018 Investor 280,000 12.50 September 22, 2022 2017 Investor 207,693 35.00 April 19, 2022 2015 Investor 97,900 30.00 July 31, 2020 2013 Placement Agent 126,250 31.40 June 30, 2019 Issued for services 26,500 30.00 July 1, 2020 to February 1, 2021 Issued for services 6,000 17.80 January 25, 2023 Issued for services 33,600 11.70 February 27, 2023 Issued for services 12,000 9.00 September 15, 2023 Issued for services 4,140 59.30 February 27, 2020 Issued for services 2,000 9.00 October 11, 2021 2018 Agent 40,000 12.50 September 20, 2022 2017 Agent 13,846 40.60 April 12, 2022 2016 Agent 10,396 40.00 May 12, 2021 2015 Agent 2,178 30.00 July 15, 2020 862,503 24.80 | 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, 2018 and 2017 – 1 Series A shares – at June 30, 2018 – 278,530 (June 30, 2017 – 278,530) Series B shares – at June 30, 2018 – 881,113 (June 30, 2017 – 881,113) Series B Preferred Shares During the year ended June 30, 2016, the Company issued an aggregate of 902,238 shares of Series B Preferred Stock at a purchase price of at $8.00 per share. Each share of Series B Preferred Stock is convertible into 0.25 shares of common stock equating to a conversion price of $32.00 (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 $80.00 or five years from the final closing date. The holders of the Series B Preferred Stock are entitled to an annual cumulative, in arrears, dividend at the rate of 9% payable quarterly. The 9% dividend accrues quarterly commencing on the date of issue and is payable quarterly on June 30, September 30, December 31, and March 31 of each year commencing on June 30, 2016. Dividends are 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 Stock does not contain any repricing features. Each share of Series B Preferred Stock entitles its holder to vote with the common stock on an as-converted basis. 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 Stock, in aggregate, a low, single-digit royalty based on their pro rata ownership of the Series B Preferred Stock 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 Series B Preferred Stock 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. Pursuant to the Series B Preferred Stock dividend, during the year ended June 30, 2018, the Company issued 19,841 (2017 – 20,045) shares of common stock and recognized $176,236 (2017 – $790,454) as a direct increase in accumulated deficit. During the year ended June 30, 2018, a total of 0 (2017 – 21,125) shares of Series B Preferred Stock were converted for an aggregate 0 (2017 – 5,281) shares of common stock. A total of 881,113 (2017 – 881,113) shares of Series B Preferred Stock are outstanding as of June 30, 2018, such that a total of 220,279 (2017 – 220,279) shares of common stock are issuable upon conversion of the Series B Preferred Stock as at June 30, 2018. Converted shares are rounded up to the nearest whole share. Series A Preferred Shares Effective December 31, 2014 pursuant to the Company’s Valent Exchange Agreement (note 3), the Company filed a Certificate of Designation of Series A Preferred Stock (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 is 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 Reverse Acquisition 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 7,000,000 as at June 30, 2018 (2017 – 5,000,000) common shares, $0.001 par value Issued and outstanding at June 30, 2018 – 2,296,667 (2017 – 1,450,963). The issued and outstanding common shares at June 30, 2018 include 91,276 (2017 –98,276) shares of common stock on an as-exchanged basis with respect to the Exchangeable Shares. Public offering financings Year ended June 30, 2018 On September 22, 2017 the Company completed a registered direct offering (the “2018 Registered Offering”) of an aggregate of 800,000 shares of common stock and warrants to purchase an additional 800,000 shares of common stock at a price of $12.50 per share and related warrant for gross proceeds of $10.0 million. The warrants have an exercise price of $12.50 per share, are immediately exercisable and have a term of exercise of five years (the “2018 Investor Warrants”). The Company engaged a placement agent for the 2018 Registered Offering. Under the Company’s engagement agreement with the placement agent, the Company paid $800,000 in cash commission and other fees to the placement agent and issued warrants to purchase 40,000 shares of common stock to the placement agent (the “2018 Agent Warrants”). The 2018 Agent Warrants are exercisable at a per share price of $12.50 and have a term of exercise of five years. In addition to the cash commission and other placement agent fees, the Company also incurred additional cash issue costs of $254,664 resulting in net cash proceeds of $8,945,336. Year ended June 30, 2017 On April 12, 2017 the Company completed a registered public offering (the “2017 Public Offering”) of an aggregate of 276,923 shares of common stock and warrants to purchase an additional 207,692 shares of common stock at a price of $32.50 per share and related warrant for gross proceeds of approximately $9.0 million. The related warrants have an exercise price of $35.00 per share, are immediately exercisable, and have a term of exercise of five years (the “2017 Investor Warrants”). The Company engaged a placement agent for the 2017 Public Offering. Under the Company’s engagement agreement with the placement agent, the Company agreed to pay up to an 8% cash commission and issue warrants to purchase shares of common stock (the “2017 Agent Warrants”) up to the number of shares of common stock equal to 5% of the aggregate number of shares issued in the 2017 Public Offering. Pursuant to the placement agent agreement the Company issued 13,846 2017 Agent Warrants. The 2017 Agent Warrants are exercisable at a per share price equal to $40.60 and have a term of exercise of five years. In addition to the cash commission the Company also incurred additional cash issue costs of $347,897 resulting in net cash proceeds of $7,932,107. The 2017 Agent Warrants have been recognized as non-cash issue costs of $424,401. Including the fair value of the 2017 Agent Warrants, total issue costs were $1,492,298. Shares issued for services During the year ended June 30, 2018, the Company issued 863 (2017 – 6,000) shares of common stock for services resulting in the recognition of $8,582 (2017 – $564,000) in expense. All of the shares issued for services for the year ended June 30, 2018 have been recognized as general and administrative expense and all of the shares issued for services for the year ended June 30, 2017 have been recognized as research and development expense. 2017 Omnibus Incentive Plan As approved by the Company’s stockholders at the annual meeting of stockholders held on April 11, 2018, on July 7, 2017, as amended on February 1, 2018, the Company’s board of directors approved adoption of the Company’s 2017 Omnibus Equity Incentive Plan (the “2017 Plan”). The board of directors also approved a form of Performance Stock Unit Award Agreement to be used in connection with grants of performance stock units (“PSUs”) under the 2017 Plan. Under the 2017 Plan, 780,000 shares of Company common stock are reserved for issuance, less the number of shares of common stock issued under the Del Mar (BC) 2013 Amended and Restated Stock Option Plan (the “Legacy Plan”) or that are subject to grants of stock options made, or that may be made, under the Legacy Plan. A total of 169,985 shares of common stock, net of forfeitures, have been issued under the Legacy Plan and/or are subject to outstanding stock options granted under the Legacy Plan, and a total of 92,698 shares of common stock have been issued under the 2017 Plan and/or are subject to outstanding stock options granted under the 2017 Plan. In addition, 120,000 PSU’s have been issued under the 2017 Plan leaving a potential 397,317 shares of common stock available for issuance under the 2017 Plan if all such options under the Legacy Plan were exercised and no new grants are made under the Legacy Plan. The maximum number of shares of Company common stock with respect to which any one participant may be granted awards during any calendar year is 8% of the Company’s fully diluted shares of common stock on the date of grant (excluding the number of shares of common stock issued under the 2017 Plan and/or the Legacy Plan or subject to outstanding awards granted under the 2017 Plan and/or the Legacy Plan). No award will be granted under the 2017 Plan on or after July 7, 2027, but awards granted prior to that date may extend beyond that date. Performance stock units The Company’s board of directors has granted PSUs under the 2017 Plan to the Company’s directors. The awards represent the right to receive shares of the Company’s common stock upon vesting of the PSU based on targets approved by the Company’s board of directors related to the Company’s fully diluted market capitalization. The PSUs vest at various fully diluted market capitalization levels with full vesting occurring upon the later of one year from the grant date and the Company achieving a fully diluted market capitalization of at least $500 million for five consecutive business days. The PSUs expire on July 7, 2022. The following table sets forth the PSUs outstanding under the 2017 Plan as of June 30, 2018: Number of Balance – June 30, 2016 and 2017 — Granted 140,000 Forfeited (20,000 ) Balance – June 30, 2018 120,000 The Company has recognized $48,624 (2017 – $0) in expense related to the PSUs during the year ended June 30, 2018 with all of it being recognized as general and administrative expense. As at June 30, 2018 there was $526,140 (2017 – $0) in unrecognized compensation expense that will be recognized over the next 3.24 years. The PSUs have been valued using the following assumptions: June 30, Dividend rate 0% Volatility 79.0 to 82.5% Risk-free rate 2.56% to 2.71% Term – 1.67 to 3.24 Stock options The following table sets forth the aggregate stock options outstanding under all plans as of June 30, 2018: Number of Weighted Balance – June 30, 2016 85,625 37.77 Granted 26,460 48.22 Balance – June 30, 2017 112,085 41.81 Granted 152,698 11.35 Forfeited (2,100 ) 21.10 Balance – June 30, 2018 262,683 24.27 The following table summarizes stock options currently outstanding and exercisable under all plans at June 30, 2018: Exercise price Number Weighted Number 7.00 5,451 9.98 — 8.70 12,000 9.34 7,000 9.80 83,647 9.89 — 10.60 3,600 9.79 — 11.70 30,000 4.66 12,500 15.50 2,500 3.92 2,500 20.00 13,125 3.27 13,125 21.10 15,900 8.26 6,300 29.60 4,500 6.60 4,500 32.00 3,000 0.92 3,000 37.60 4,500 7.61 3,499 40.00 1,250 1.25 1,250 41.00 4,000 8.36 2,111 42.00 41,250 4.56 41,250 44.80 3,000 7.61 2,250 49.50 22,460 6.07 15,182 53.20 8,000 7.85 5,556 61.60 1,500 4.75 1,500 92.00 3,000 4.92 3,000 262,683 124,523 Included in the number of stock options outstanding are 2,500 stock options granted at an exercise price of CA $20.00. The exercise prices for these stock options shown in the above table have been converted to $15.50 US$ 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 72.4 to 87.1% 77.5% to 88.7% Risk-free rate 1.49% to 2.86% 1.00% to 1.74% Term – 0.6 to 3.03 3.0 The Company has recognized the following amounts as stock option expense for the periods noted: Years ended June 30, 2018 2017 Research and development 140,870 77,706 General and administrative 355,055 47,041 495,925 124,747 All of the stock option expense of $495,925 (2017 – – – A summary of the status of the Company’s unvested stock options as at June 30, 2018 under all plans is presented below: Number of Weighted Weighted Unvested at June 30, 2016 14,102 31.71 17.25 Granted 26,460 48.22 26.11 Vested (8,759 ) 46.81 24.83 Unvested at June 30, 2017 31,803 48.09 25.74 Granted 152,698 11.35 6.01 Vested (44,241 ) 27.81 15.02 Forfeited (2,100 ) 21.10 11.32 Unvested at June 30, 2018 138,160 14.39 7.63 The aggregate intrinsic value of unvested stock options at June 30, 2018 was $0 (2017 – Stock option modifications During the year ended June 30, 2018, certain stock options were modified pursuant to a separation agreement with the Company’s former President and Chief Operating Officer. A total of 6,760 options had their vesting accelerated such that they became fully vested on December 22, 2017, resulting in additional stock option expense of $93,777. In addition, a total of 21,860 options were modified such that their remaining exercise period was increased from one year to three years, resulting in additional stock option expense of $28,561. Also, during the year ended June 30, 2018, certain stock options were modified pursuant to the resignation of the Company’s former Chairman. A total of 1,500 options had their vesting accelerated such that they became fully vested on June 2, 2018, resulting in additional stock option expense of $679. In addition, a total of 4,500 (including the 1,500 whose vesting was accelerated) options were modified such that their remaining exercise period was increased from 90 days to one year, resulting in additional stock option expense of $2,182. Stock option liability Certain of the Company’s stock options have been issued in CA$. Of these, a portion was classified as a stock option liability which was revalued at each reporting date. During the year ended June 30, 2017, the Company amended 4,375 of these stock options held by five 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, the Company recognized $85,094 in stock option liability expense and $260,969 was reclassified to equity during the year ended June 30, 2017. Warrants Number of Amount Balance – June 30, 2016 152,171 1,658,382 Issuance of 2017 Investor Warrants (i) 207,693 2,526,336 Issuance of 2017 Agent Warrants (i) 13,846 424,401 Exercise of Valent Warrants (ii) (12,500 ) (89,432 ) Exercise of 2015 Investor Warrants (iii) (4,875 ) (30,715 ) Warrants issued for services (iv) 4,140 81,602 Balance – June 30, 2017 360,475 4,570,574 Issuance of 2018 Investor and 2018 Agent Warrants (v) 840,000 3,572,843 Exercise of 2018 Investor Warrants (v) (25,000 ) (106,335 ) Warrants issued for services (iv) 42,000 192,400 Balance – June 30, 2018 1,217,475 8,229,482 __________ i) As part of the financing completed by the Company on April 12, 2017, the Company issued the 2017 Investor Warrants and the 2017 Agent Warrants. The 2017 Investor Warrants are exercisable at $35.00 until April 19, 2022 and the 2017 Agent Warrants are exercisable at $40.60 until April 12, 2022. ii) The Valent warrants were exercised at $15.40 (CA$20.00) for proceeds of $192,075. iii) The 2015 Investor Warrants are exercisable at a price of $30.00. The warrants expire on July 31, 2020. During the year ended June 30, 2018, nil (2017 – – iv) Warrants issued for services are exercisable at various prices and expire at the various dates noted in the table below. v) As part of the financing completed by the Company on September 22, 2017, the Company issued the 2018 Investor Warrants and the 2018 Agent Warrants. The 2018 Investor Warrants are exercisable at $12.50 until September 22, 2022 and the 2018 Agent Warrants are exercisable at $12.50 until September 20, 2022. Certain of the Company’s warrants have been recognized as a derivative liability (note 4). The following table summarizes the changes in the Company’s outstanding warrants as of June 30, 2018: Description Number Balance – June 30, 2017 662,891 Issuance of 2018 Investor Warrants 800,000 Exercise of 2018 Investor Warrants (25,000 ) Issuance of 2018 Agent Warrants 40,000 Warrants issued for services 42,000 Expiry of dividend warrants (81,250 ) Expiry of 2013 Investor Warrants (10,513 ) Balance – June 30, 2018 1,428,128 The following table summarizes the Company’s outstanding warrants as of June 30, 2018: Description Number Exercise Expiry date 2018 Investor 775,000 12.50 September 22, 2022 2017 Investor 207,693 35.00 April 19, 2022 2015 Investor 97,900 30.00 July 31, 2020 2013 Investor – Amended 77,850 31.40 March 31, 2019 2013 Placement Agent 126,250 31.40 June 30, 2019 Issued for services 26,500 30.00 July 31, 2020 to February 1, 2021 Issued for services 6,000 17.80 January 25, 2023 Issued for services 36,000 11.70 February 27, 2023 Issued for services 4,375 70.40 September 12, 2018 Issued for services 4,140 59.30 February 27, 2020 2018 Agent 40,000 12.50 September 20, 2022 2017 Agent 13,846 40.60 April 12, 2022 2016 Agent 10,397 40.00 May 12, 2021 to June 8, 2021 2015 Agent 2,177 30.00 July 15, 2020 1,428,128 20.80 |
Financial Instruments
Financial Instruments | 9 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial instruments | 6 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, other receivables, accounts payable, related party payables and derivative liability. The carrying values of cash and cash equivalents, other receivables, accounts payable 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 Black-Scholes Option Pricing Model (based on a closed-form model that uses a fixed equation) to estimate the fair value of the share warrants. Determining the appropriate fair-value model and calculating the fair value of warrants requires considerable judgment. Any change in the estimates (specifically probabilities and volatility) 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 the Company. 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 amounts ultimately 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 3 financial instrument as volatility is considered a Level 3 input. The Company has the following liabilities under the fair value hierarchy: March 31, 2019 Liability Level 1 Level 2 Level 3 Derivative liability $ - $ - $ 265 June 30, 2018 Liability Level 1 Level 2 Level 3 Derivative liability $ - $ - $ 1,117 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related party transactions | 6 Related party transactions During the year ended June 30, 2018, the Company recognized a total expense of $311,683 relating to the settlement agreement with the Company’s former President and Chief Operating Officer. Amounts owed to related parties, including |
Current and Deferred Income Tax
Current and Deferred Income Taxes | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Current and deferred income taxes | 7 Current and deferred income taxes For the years ended June 30, 2018, and 2017, the Company did not record a provision for income taxes due to a full valuation allowance against our deferred tax assets. Significant components of the Company’s future tax assets and deferred tax liabilities are shown below: June 30, June 30, Deferred tax assets: Non-capital losses carried forward 9,416,047 7,340,286 Capital losses carried forward 17,925 17,925 Financing costs 5,512 5,512 Scientific research and development 396,758 350,435 Scientific research and development – ITC 354,411 319,528 10,190,653 8,033,686 Deferred tax liabilities: Scientific research and development – ITC (61,230 ) (53,841 ) 10,129,423 7,979,845 Valuation allowance (10,129,423 ) (7,979,845 ) 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 21% (2017 – The differences arise from the following items: June 30, June 30, Tax recovery at statutory income tax rates (3,063,036 ) (2,747,800 ) Permanent differences 290,722 (15,342 ) Effect of rate differentials between jurisdictions 76,364 464,938 Impact of changes in income tax rates 138,516 — Scientific research and development – ITC (354,411 ) — Other 75,422 (62,962 ) Change in valuation allowance 2,836,423 2,361,166 — — As of June 30, 2018, the Company had combined US and Canadian net operating loss carryforwards of $34.7 million that begin expiring in 2029. In addition, the Company has non-refundable Canadian federal investment tax credits of $226,778 that expire between 2029 and 2038 and non-refundable British Columbia investment tax credits of $127,633 that expire between 2019 and 2028. The Tax Cuts and Jobs Act (“2017 Tax Act”) was enacted in December 2017. The 2017 Tax Act, among other things, reduces the U.S. federal corporate tax rate from 35% to 21%, effective January 1, 2018, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign earnings. The Company revalued our deferred tax assets as of June 30, 2018 based on a U.S. federal tax rate of 21%, which resulted in a reduction to our deferred tax assets of $138,516 fully offset by a reduction to the valuation allowance. The Company is not required to pay a one-time transition tax on earnings of our foreign subsidiary as the foreign subsidiary has an accumulated deficit. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 8 Commitments and contingencies The Company has the following obligations over the next five fiscal years ending June 30, 2023: Clinical development The Company has entered into contracts for drug manufacturing and clinical study management related to its Phase III clinical trial for a total of $654,829. While this trial has now been parked, certain costs related to the parking of this trial as well as manufacturing costs related to drug supply have been committed to by the Company. Pursuant to the commitment for clinical trial management, the Company has paid a total of $921,027 in deposits related to study initiation and certain study costs. These deposits are available to be applied against invoices received from the contract research organization but have not been netted against the Company’s commitments for the fiscal year ended June 30, 2018. Office lease The Company currently rents its offices on a month-to-month basis at a rate of $4,708 (CA$6,200) per month. During the year ended June 30, 2018, the Company recorded $58,434 as rent expense (2017 – $35,908). |
Supplementary Statement of Cash
Supplementary Statement of Cash Flows Information | 9 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Jun. 30, 2018 | |
Supplemental Cash Flow Information [Abstract] | ||
Supplementary statement of cash flows information | 7 Supplementary statement of cash flows information Nine months ended March 31, 2019 2018 $ $ Series B Preferred share common stock dividend (note 5) 75,477 142,358 Series B Preferred shares converted to common stock (note 5) 279,051 - Share issuance costs accrued through accounts payable and accrued liabilities 15,884 - Deferred financing costs accrued through accounts payable and accrued liabilities 15,873 - Income taxes paid - - Interest paid - - | 9 Supplementary statement of cash flows information Year ended Year ended Series B Preferred Stock common stock dividend (note 5) 176,236 790,454 Non-cash issue costs (note 5) 148,087 424,401 Reclassification of derivative liability to equity upon the exercise of warrants (note 4) — 248,409 Reclassification of derivative liability to equity upon the amendment of warrants (note 4) — 53,006 Reclassification of stock option liability to equity upon settlement (note 5) — 260,969 Conversion of Series B Preferred Stock to common stock (note 5) — 147,375 Income taxes paid — — Interest paid — — |
Financial Risk Management
Financial Risk Management | 12 Months Ended |
Jun. 30, 2018 | |
Risks and Uncertainties [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$. As at June 30, 2018, Canadian dollar denominated accounts payable and accrued liabilities exposure in US$ totaled $106,132. 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 $6,788. Balances in foreign currencies at June 30, 2018 and 2017 are as follows: June 30, June 30, Trade payables 79,858 164,226 Cash 41,459 39,251 Interest, taxes, and other receivables 14,618 99,397 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, 2018, cash and cash equivalents held in by the Company was $5,971,995. 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 due to the current low market interest rates. 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, 2018 and is undertaking efforts to conserve cash resources wherever possible. The maximum exposure of the Company’s liquidity risk is $1,638,515 as at June 30, 2018. Credit risk Credit risk arises from cash and cash equivalents, deposits with banks, financial institutions, and contractors 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 $39,519 at June 30, 2018 relating to interest, taxes, and other receivables. The credit risk related to uninsured cash and cash equivalents balances is $5,868,825 at June 30, 2018. Cash and Insured Non-insured 5,971,995 103,170 5,868,825 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 | 9 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Jun. 30, 2018 | |
Subsequent Events [Abstract] | ||
Subsequent events | 8 Subsequent events Reverse Stock Split On May 7, 2019, the Company filed a Certificate of Change with the Secretary of State of Nevada that effected a 1-for-10 (1:10) reverse stock split of its common stock, par value $0.001 per share, which became effective on May 8, 2019. 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 70,000,000 authorized shares of common stock to 7,000,000 shares authorized. The par value of its common stock was unchanged at $0.001 per share, post-split. All common shares, warrants, stock options, conversion ratios, and per share information in these consolidated condensed interim financial statements give retroactive effect to the 1-for-10 reverse stock split. The Company's authorized and issued preferred stock was not affected by the split. Rights Offering Subsequent to March 31, 2019, the Company filed a registration statement relating to a rights offering for a maximum gross proceeds of $8.0 million. For every common share of stock owned (including each share of common stock issuable upon exercise of certain outstanding warrants) as of the record date, the stockholder will receive one basic subscription right, which gives the stockholder the opportunity to purchase one unit, consisting of one share of the Company's Series C Preferred Stock and 0.50 warrants, for a price of $1,000 per Unit. The raising of any funds will not be assured until the closing of the offering which is expected to be in the first week of June 2019. Performance Stock Units On April 30, 2019, the Company's Board of Directors approved the cancellation of all 120,000 PSU's outstanding at March 31, 2019. 2017 Omnibus Plan On April 30, 2019, the Company's Board of Directors also approved a temporary reduction in the reserve under the Company's 2017 Plan. As a result, the 367,317 shares of common stock available for issuance under the 2017 Plan as of March 31, 2019 was reduced to 14,217. If the Company's authorized common shares are increased at the 2019 annual meeting of stockholders, the reserve will be increased back to 367,317. | 11 Subsequent events Reverse Stock Split On May 7, 2019, the Company filed a Certificate of Change with the Secretary of State of Nevada that effected a 1-for-10 (1:10) reverse stock split of its common stock, par value $0.001 per share, which became effective on May 8, 2019. 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 70,000,000 authorized shares of common stock to 7,000,000 shares authorized. The par value of its common stock was unchanged at $0.001 per share, post-split. All common shares, warrants, stock options, conversion ratios, and per share information in these consolidated financial statements give retroactive effect to the 1-for-10 reverse stock split. The Company’s authorized and issued preferred stock was not affected by the split. Rights Offering Subsequent to June 30, 2018, the Company filed a registration statement relating to a rights offering for a maximum gross proceeds of $8.0 million. For every common share of stock owned (including each share of common stock issuable upon exercise of certain outstanding warrants) as of the record date, the stockholder will receive one basic subscription right, which gives the stockholder the opportunity to purchase one unit, consisting of one share of the Company’s Series C Preferred Stock and 0.50 warrants, for a price of $1,000 per Unit. The raising of any funds will not be assured until the closing of the offering which is expected to be in the first week of June 2019. Performance Stock Units On April 30, 2019 the Company’s Board of Directors approved the cancellation of all 120,000 PSU’s outstanding at June 30, 2018. 2017 Omnibus Plan On April 30, 2019 the Company’s Board of Directors also approved a temporary reduction in the reserve under the Company’s 2017 Plan. As a result, the 367,317 shares of common stock available for issuance under the 2017 Plan as of March 31, 2019 was reduced to 14,217. If the Company’s authorized common shares are increased at the 2019 annual meeting of stockholders, the reserve will be increased back to 367,317. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Jun. 30, 2018 | |
Accounting Policies [Abstract] | ||
Basis of presentation | Basis of presentation The consolidated condensed interim financial statements of the Company have been prepared in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP") and are presented in United States dollars. The functional currency of the Company and each of its subsidiaries is the United States dollar. The accompanying consolidated condensed interim financial statements include the accounts of the Company and its wholly-owned subsidiaries, Del Mar (BC), Callco, and Exchangeco. All intercompany balances and transactions have been eliminated in consolidation. The principal accounting policies applied in the preparation of these consolidated condensed interim financial statements are set out below and have been consistently applied to all periods presented. | Basis of presentation The consolidated 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 years presented. |
Unaudited interim financial data | Unaudited interim financial data The accompanying unaudited consolidated condensed interim financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all of the information and the notes required by U.S. GAAP for complete financial statements. These unaudited consolidated condensed interim financial statements should be read in conjunction with the audited financial statements of the Company as at June 30, 2018 included in our Form 10-K. In the opinion of management, the unaudited consolidated condensed interim financial statements reflect all adjustments, consisting of normal and recurring adjustments, necessary for a fair presentation. The results for three and nine months ended March 31, 2019 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2019 or for any other future annual or interim period. | |
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 of, or during, the reporting period. Actual results could significantly differ from those estimates. Significant areas requiring management to make estimates include the derivative liability, the valuation of equity instruments issued for services, and clinical trial accruals. Further details of the nature of these assumptions and conditions may be found in the relevant notes to these consolidated condensed interim financial statements. | 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 of, or during, the reporting period. Actual results could significantly differ from those estimates. Significant areas requiring management to make estimates include the derivative liability, the valuation of equity instruments issued for services, and clinical trial accruals. Further details of the nature of these assumptions and conditions may be found in the relevant notes to these consolidated financial statements. |
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 three- and nine-month periods ended March 31, 2019 and 2018, diluted loss per share does not differ from basic loss per share since the effect of the Company's warrants, stock options, performance stock units, and convertible preferred shares is anti-dilutive. As of March 31, 2019, potential shares of common stock of 862,502 (2018 – 1,428,128) related to outstanding warrants, 292,683 (2018 – 172,085) relating to stock options, 120,000 (2018 – 0) relating to performance stock units, and 210,279 (2018 – 220,279) relating to outstanding Series B convertible preferred shares were excluded from the calculation of net loss per common share because their inclusion would be anti-dilutive. | 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, 2018 and 2017 diluted loss per share does not differ from basic loss per share since the effect of the Company’s warrants, stock options, performance stock units, and convertible preferred shares is anti-dilutive. As at June 30, 2018, potential common shares of 1,690,810 (2017 – 774,976) related to outstanding warrants and stock options, 120,000 (2017 – 0) relating to performance stock units, and 220,279 (2017 – 220,279) relating to outstanding Series B convertible preferred shares were excluded from the calculation of net loss per common share because their inclusion would be anti-dilutive. |
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. Recently adopted Accounting Standards Board ("ASU") 2017-09 — Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting The amendments in this update provide guidance about which changes to the terms, or conditions of a stock-based payment award, require an entity to apply modification accounting in Topic 718. The amendments in ASU 2017-09 are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for (1) public business entities for reporting periods for which financial statements have not yet been issued and (2) all other entities for reporting periods for which financial statements have not yet been made available for issuance. The adoption of ASU 2017-09 did not have a material impact on our results of operations or financial position. ASU 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 reporting periods beginning after December 15, 2017. The adoption of ASU 2016-01 did not have a material impact on our results of operations or financial position. Not yet adopted ASU 2017-11 — I. Accounting for Certain Financial Instruments with Down Round Features, II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Non-public Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception The amendments in this update are intended to reduce the complexity associated with the accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, a down round feature would no longer cause a freestanding equity-linked financial instrument (or an embedded conversion option) to be accounted for as a derivative liability at fair value with changes in fair value recognized in current earnings. In addition, the indefinite deferral of certain provisions of Topic 480 have been re-characterized to a scope exception. The re-characterization has no accounting effect. ASU 2017-11 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is 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 2018-07 — Stock Compensation (Topic 718) Improvements to Nonemployee Shares-based Payment Accounting The amendments in this update are intended to the reduce cost and complexity and to improve financial reporting for share-based payments issued to nonemployees. The ASU expands the scope of Topic 718, Compensation —Stock Compensation, which currently only includes share-based payments issued to employees, to also include share-based payments issued to nonemployees for goods and services. The existing guidance on nonemployee share-based payments is significantly different from current guidance for employee share-based payments. This ASU expands the scope of the employee share-based payments guidance to include share-based payments issued to nonemployees. By doing so, the FASB improves the accounting of nonemployee share-based payments issued to acquire goods and services used in its own operations. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company is currently evaluating the potential impact of the adoption of this standard. | 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. Recently adopted Accounting Standards Board (“ASU”) 2016-09 — 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 adoption of ASU 2016-09 did not have a material impact on our results of operations or financial condition. Not yet adopted ASU 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 reporting periods beginning after December 15, 2017. The adoption of ASU 2016-01 is not expected to have a material impact on our results of operations or financial condition. ASU 2017-09 — Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting The amendments in this update provide guidance about which changes to the terms, or conditions of a stock-based payment award, require an entity to apply modification accounting in Topic 718. The amendments in ASU 2017-09 are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for (1) public business entities for reporting periods for which financial statements have not yet been issued and (2) all other entities for reporting periods for which financial statements have not yet been made available for issuance. The Company is currently evaluating the potential impact of the adoption of this standard. ASU 2017-11 — I. Accounting for Certain Financial Instruments with Down Round Features, II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Non-public Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception The amendments in this update are intended to reduce the complexity associated with the accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, a down round feature would no longer cause a freestanding equity-linked financial instrument (or an embedded conversion option) to be accounted for as a derivative liability at fair value with changes in fair value recognized in current earnings. In addition, the indefinite deferral of certain provisions of Topic 480 have been re-characterized to a scope exception. The re-characterization has no accounting effect. ASU 2017-11 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.Early adoption is 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 2018-07 — Stock Compensation (Topic 718) Improvements to Nonemployee Shares-based payment Accounting The amendments in this update are intended to the reduce cost and complexity and to improve financial reporting for share-based payments issued to nonemployees. The ASU expands the scope of Topic 718, Compensation — Stock Compensation, which currently only includes share-based payments issued to employees, to also include share-based payments issued to nonemployees for goods and services. The existing guidance on nonemployee share-based payments is significantly different from current guidance for employee share-based payments. This ASU expands the scope of the employee share-based payments guidance to include share-based payments issued to nonemployees. By doing so, the FASB improves the accounting of nonemployee share-based payments issued to acquire goods and services used in its own operations. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company is currently evaluating the potential impact of the adoption of this standard. |
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 20,000,000 authorized shares of common stock to 5,000,000 shares authorized. The par value of its common stock was unchanged at $0.001 per share, post-split. All common shares, warrants, stock options, conversion ratios, and per share information in these consolidated financial statements give retroactive effect to the 1-for-4 reverse stock split. The Company’s authorized and issued preferred stock was not affected by the split. | |
Consolidation | Consolidation The consolidated financial statements of the Company include the accounts of Del Mar (BC), Callco, and Exchangeco as at and for the years ended June 30, 2018 and 2017. Intercompany balances and transactions have been eliminated in consolidation. | |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash and highly liquid investments with original maturities from the purchase date of three months or less that can be readily convertible into known amounts of cash. 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, 2018 and 2017 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 deferred income taxes | Current and deferred 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. Deferred 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. Deferred 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 deferred 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 deferred 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, the Company uses 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 binomial model as well as a Black-Scholes Option Pricing Model (based on a closed-form model that uses a fixed equation) to estimate the fair value of the share warrants. Determining the appropriate fair-value model and calculating the fair value of warrants requires considerable judgment. Any change in the estimates (specifically probabilities and volatility) 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 the Company. 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 amounts ultimately 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 3 financial instrument as volatility is considered a Level 3 input. The Company has the following liabilities under the fair value hierarchy: June 30, 2018 Liability Level 1 Level 2 Level 3 Derivative liability $ — $ — $ 1,117 June 30, 2017 Liability Level 1 Level 2 Level 3 Derivative liability $ — $ — $ 61,228 | |
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. At June 30, 2018, the total capitalized cost was $79,910 (2017 – $67,261) and the Company has recognized $24,528 and $16,683, respectively, in amortization expense during the years ended June 30, 2018 and 2017. 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 Company has achieved regulatory approval, patent costs will be deferred and amortized over the remaining life of the related patent. | |
Research and development costs (including clinical trial expenses and accruals) | Research and development costs (including clinical trial expenses and accruals) Research and development expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with research and development. Research and development expenses also include third-party development and clinical trial expenses noted bel0w. Such costs related to research and development are included in research and development expense until the point that technological feasibility is reached which, for the Company’s drug candidate, is generally shortly before the drug is approved by the relevant food and drug administration. Once technological feasibility is reached, such costs will be 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 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 by maintaining regular communication with the service providers. Differences between actual expenses and estimated expenses recorded are adjusted for in the period in which they become known. 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. As at June 30, 2018 and 2017, 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 actual forfeitures, using the accelerated attribution method. The Company recognizes forfeitures as they occur. 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. | |
Performance stock units | Performance stock units The Company also accounts for performance stock units (PSU’s) under 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. As vesting of the PSU’s is based on a number of factors, the determination of the grant-date fair value for PSU’s has been estimated using a Monte Carlo simulation approach which includes variables such as the expected volatility of the Company’s share price and interest rates to generate potential future outcomes. 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 the PSUs. Such value is recognized as expense over the derived service period using the accelerated attribution method. The estimation of PSUs 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. | |
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. | |
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 primarily in one geographic area, being North America. The Company is conducting one clinical trial in China but the planned expenses to be incurred over the course of the study are not expected to be significant. All of the Company’s assets are located in either Canada or the United States. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of derivative liabilities under the fair value hierarchy | June 30, 2018 Liability Level 1 Level 2 Level 3 Derivative liability $ — $ — $ 1,117 June 30, 2017 Liability Level 1 Level 2 Level 3 Derivative liability $ — $ — $ 61,228 |
Derivative Liability (Tables)
Derivative Liability (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Schedule of derivative liability | Three months ended March 31, 2019 2018 $ $ Opening balance 76 5,549 Change in fair value of warrants 189 (2,160 ) Closing balance 265 3,389 Less current portion - (5 ) Long term portion 265 3,384 Nine months ended March 31, 2019 2018 $ $ Opening balance 1,117 61,228 Change in fair value of warrants (852 ) (57,839 ) Closing balance 265 3,389 Less current portion - (5 ) Long term portion 265 3,384 | Years ended 2018 2017 Opening balance 61,228 693,700 Change in fair value of warrants (60,111 ) (331,057 ) Reclassification to equity upon amendment of warrants — (53,006 ) Reclassification to equity upon exercise of warrants — (248,409 ) Closing balance 1,117 61,228 Less current portion — (33,091 ) Long-term portion 1,117 28,137 |
Warrant [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Schedule of derivative liability | March 31, 2019 Number of warrants $ 2015 Agent Warrants 2,177 265 Closing balance 2,177 265 Less current portion - - Long-term portion 2,177 265 | Year ended Number of $ Warrants issued for services 4,375 — 2015 Agent warrants 2,177 1,117 Closing balance 6,552 1,117 Less current portion — — Long-term portion 6,552 1,117 Year ended Number of $ 2013 investor warrants 10,513 33,091 Warrants issued for services 4,375 4,468 2015 Agent warrants 2,177 23,669 Closing balance 17,065 61,228 Less current portion (10,513 ) (33,091 ) Long-term portion 6,552 28,137 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Jun. 30, 2018 | |
Class of Stock [Line Items] | ||
Schedule of valuation assumptions using a Black-Scholes pricing model | March 31, Dividend rate 0 % Volatility 70.6% to 79.1 % Risk-free rate 2.1% to 3.2 % Term - years 0.1 to 3.0 | |
Schedule of common stock issued and outstanding | Shares of common stock Common stock Additional paid-in capital Warrants Accumulated deficit $ $ $ $ Nine months ended March 31, 2019 Balance – June 30, 2018 2,296,667 2,297 43,198,193 8,229,482 (52,441,337 ) Exercise and exchange of warrants 296,667 297 2,920,695 (2,210,697 ) - Warrants issued for services - - - 36,534 - Conversion of Series B preferred stock to common stock 10,000 10 279,041 - - Series B Preferred stock dividend 14,430 14 75,463 - (75,477 ) Shares issued for services 2,269 2 10,267 - - Stock option expense - - 355,388 - - Performance stock unit expense - - 183,205 - - Series A Preferred cash dividend - - - - (6,267 ) Loss for the period - - - - (5,465,486 ) Balance – March 31, 2019 2,620,033 2,620 47,022,252 6,055,319 (57,988,567 ) Three months ended March 31, 2019 Balance – December 31, 2018 2,614,342 2,614 46,851,817 6,046,587 (56,299,291 ) Exercise and exchange of warrants – issue costs - - (16,186 ) - - Warrants issued for services - - - 8,732 - Series B Preferred stock dividend 4,735 5 23,197 - (23,202 ) Shares issued for services 956 1 3,512 - - Stock option expense - - 99,735 - - Performance stock unit expense - - 60,177 - - Series A Preferred cash dividend - - - - (2,089 ) Loss for the period - - - - (1,663,985 ) Balance – March 31, 2019 2,620,033 2,620 47,022,252 6,055,319 (57,988,567 ) Shares of common stock Common stock Additional paid-in capital Warrants Accumulated deficit $ $ $ $ Nine months ended March 31, 2018 Balance – June 30, 2017 1,450,963 1,451 36,678,344 4,570,574 (41,118,433 ) Issuance of shares and warrants 800,000 800 6,191,785 2,752,751 - Warrants exercised for cash 25,000 25 312,475 - - Warrants issued for services - - - 155,204 - Series B Preferred stock dividend 14,881 15 142,343 - (142,358 ) Shares issued for services 407 - 4,821 - - Stock option expense - - 430,673 - - Series A Preferred cash dividend - - - - (6,267 ) Loss for the period - - - - (8,761,061 ) Balance – March 31, 2018 2,291,251 2,291 43,760,441 7,478,529 (50,028,119 ) Three months ended March 31, 2018 Balance – December 31, 2017 2,260,884 2,261 43,259,228 7,321,844 (47,046,347 ) Warrants exercised for cash 25,000 25 312,475 - - Warrants issued for services - - - 156,685 - Series B Preferred stock dividend 4,960 5 46,621 - (46,626 ) Shares issued for services 407 - 4,821 - - Stock option expense - - 137,296 - - Series A Preferred cash dividend - - - - (2,089 ) Loss for the period - - - - (2,933,057 ) Balance – March 31, 2018 2,291,251 2,291 43,760,441 7,478,529 (50,028,119 ) | |
Employee Stock Option [Member] | ||
Class of Stock [Line Items] | ||
Schedule of outstanding under the legacy plan | Number of Weighted Balance – June 30, 2018 262,683 24.27 Granted 30,000 6.10 Balance – March 31, 2019 292,683 22.40 | Number of Weighted Balance – June 30, 2016 85,625 37.77 Granted 26,460 48.22 Balance – June 30, 2017 112,085 41.81 Granted 152,698 11.35 Forfeited (2,100 ) 21.10 Balance – June 30, 2018 262,683 24.27 |
Summary of stock options currently outstanding and exercisable | Exercise price Number Weighted Number 6.10 30,000 9.60 6,666 7.00 5,451 9.23 - 8.70 12,000 8.59 12,000 9.83 83,647 9.14 23,235 10.60 3,600 9.03 1,200 11.70 30,000 3.91 30,000 14.98 2,500 3.17 2,500 20.00 13,125 2.52 13,125 21.10 15,900 7.51 8,700 29.60 4,500 5.84 4,500 32.00 3,000 0.17 3,000 37.60 4,500 6.86 4,500 40.00 1,250 0.50 1,250 41.00 4,000 7.61 3,111 42.00 41,250 3.81 41,250 44.80 3,000 6.86 3,000 49.50 22,460 5.31 18,458 53.20 8,000 7.10 7,555 61.60 1,500 4.00 1,500 92.00 3,000 4.17 3,000 292,683 188,550 | Exercise price Number Weighted Number 7.00 5,451 9.98 — 8.70 12,000 9.34 7,000 9.80 83,647 9.89 — 10.60 3,600 9.79 — 11.70 30,000 4.66 12,500 15.50 2,500 3.92 2,500 20.00 13,125 3.27 13,125 21.10 15,900 8.26 6,300 29.60 4,500 6.60 4,500 32.00 3,000 0.92 3,000 37.60 4,500 7.61 3,499 40.00 1,250 1.25 1,250 41.00 4,000 8.36 2,111 42.00 41,250 4.56 41,250 44.80 3,000 7.61 2,250 49.50 22,460 6.07 15,182 53.20 8,000 7.85 5,556 61.60 1,500 4.75 1,500 92.00 3,000 4.92 3,000 262,683 124,523 |
Schedule of valuation assumptions using a Black-Scholes pricing model | June 30, June 30, Dividend rate 0% 0% Volatility 72.4 to 87.1% 77.5% to 88.7% Risk-free rate 1.49% to 2.86% 1.00% to 1.74% Term – 0.6 to 3.03 3.0 | |
Schedule of stock-based compensation expense | Three months ended Nine months ended 2019 2018 2019 2018 Research and development 12,889 9,145 64,466 130,546 General and administrative 86,846 128,151 290,922 300,127 99,735 137,296 355,388 430,673 | Years ended June 30, 2018 2017 Research and development 140,870 77,706 General and administrative 355,055 47,041 495,925 124,747 |
Summary of unvested stock options | Number of Weighted Weighted Unvested at June 30, 2018 138,160 14.39 7.63 Granted 30,000 6.10 2.56 Vested (64,027 ) 14.82 7.88 Unvested at March 31, 2019 104,133 11.62 5.95 | Number of Weighted Weighted Unvested at June 30, 2016 14,102 31.71 17.25 Granted 26,460 48.22 26.11 Vested (8,759 ) 46.81 24.83 Unvested at June 30, 2017 31,803 48.09 25.74 Granted 152,698 11.35 6.01 Vested (44,241 ) 27.81 15.02 Forfeited (2,100 ) 21.10 11.32 Unvested at June 30, 2018 138,160 14.39 7.63 |
Schedule of warrants | Number of Amount Balance – June 30, 2016 152,171 1,658,382 Issuance of 2017 Investor Warrants (i) 207,693 2,526,336 Issuance of 2017 Agent Warrants (i) 13,846 424,401 Exercise of Valent Warrants (ii) (12,500 ) (89,432 ) Exercise of 2015 Investor Warrants (iii) (4,875 ) (30,715 ) Warrants issued for services (iv) 4,140 81,602 Balance – June 30, 2017 360,475 4,570,574 Issuance of 2018 Investor and 2018 Agent Warrants (v) 840,000 3,572,843 Exercise of 2018 Investor Warrants (v) (25,000 ) (106,335 ) Warrants issued for services (iv) 42,000 192,400 Balance – June 30, 2018 1,217,475 8,229,482 __________ i) As part of the financing completed by the Company on April 12, 2017, the Company issued the 2017 Investor Warrants and the 2017 Agent Warrants. The 2017 Investor Warrants are exercisable at $35.00 until April 19, 2022 and the 2017 Agent Warrants are exercisable at $40.60 until April 12, 2022. ii) The Valent warrants were exercised at $15.40 (CA$20.00) for proceeds of $192,075. iii) The 2015 Investor Warrants are exercisable at a price of $30.00. The warrants expire on July 31, 2020. During the year ended June 30, 2018, nil (2017 – – iv) Warrants issued for services are exercisable at various prices and expire at the various dates noted in the table below. v) As part of the financing completed by the Company on September 22, 2017, the Company issued the 2018 Investor Warrants and the 2018 Agent Warrants. The 2018 Investor Warrants are exercisable at $12.50 until September 22, 2022 and the 2018 Agent Warrants are exercisable at $12.50 until September 20, 2022. | |
Summary of changes in outstanding warrants | Description Number Balance – June 30, 2018 1,428,128 Exercised for cash (i) (197,500 ) Cashless exchange (i) (297,500 ) Issued for services (ii) 14,000 Forfeited (iii) (2,400 ) Expired (iv) (82,225 ) Balance - March 31, 2019 862,503 i) On November 25, 2018, the Company entered into Warrant Exercise and Exchange Agreements (the "Warrant Exercise Agreements") with certain holders (the "Exercising Holders") of the 2018 Investor Warrants. Pursuant to the Warrant Exercise Agreements, in order to induce the Exercising Holders to exercise the 2018 Investor Warrants for cash, the Company agreed to reduce the exercise price from $12.50 to $4.00 per share. Pursuant to the Warrant Exercise Agreements, the Exercising Holders exercised their 2018 Investor Warrants with respect to an aggregate of 197,500 shares of common stock underlying such 2018 Investor Warrants (the "Exercised Shares"). The Company received net proceeds of $726,481, comprising aggregate gross proceeds of $790,000 net of expenses of $63,519, from the exercise of the 2018 Investor Warrants. In addition, in order to further induce the Exercising Holders to exercise the 2018 Investor Warrants, the Warrant Exercise Agreements also provided for the issuance of one share of common stock to the Exercising Holders in exchange for every three shares of common stock underlying the 2018 Investor Warrants held by the Exercising Holders that are not being exercised for cash pursuant to the Warrant Exercise Agreements, if any. On November 26, 2018, the Company issued an aggregate of 99,167 shares of common stock in exchange for 297,500 2018 Investor Warrants, resulting in a 198,333 reduction in the Company's total shares of common stock outstanding on a fully-diluted basis. ii) All of the warrants issued for services are exercisable at $9.00 with 12,000 expiring on September 15, 2023 and 2,000 expiring on October 11, 2021. Of the total, 12,000 vest pro rata monthly over twelve months commencing September 15, 2018 and 2,000 are fully vested as of November 11, 2018. iii) Warrants issued for services exercisable at $11.70 were forfeited upon termination of the underlying agreement. iv) Warrants issued for services exercisable at $70.40 expired September 12, 2018. In addition, warrants exercisable at $31.40 expired March 31, 2019. | Description Number Balance – June 30, 2017 662,891 Issuance of 2018 Investor Warrants 800,000 Exercise of 2018 Investor Warrants (25,000 ) Issuance of 2018 Agent Warrants 40,000 Warrants issued for services 42,000 Expiry of dividend warrants (81,250 ) Expiry of 2013 Investor Warrants (10,513 ) Balance – June 30, 2018 1,428,128 |
Summary of outstanding warrants | Description Number Exercise Expiry date 2018 Investor 280,000 12.50 September 22, 2022 2017 Investor 207,693 35.00 April 19, 2022 2015 Investor 97,900 30.00 July 31, 2020 2013 Placement Agent 126,250 31.40 June 30, 2019 Issued for services 26,500 30.00 July 1, 2020 to February 1, 2021 Issued for services 6,000 17.80 January 25, 2023 Issued for services 33,600 11.70 February 27, 2023 Issued for services 12,000 9.00 September 15, 2023 Issued for services 4,140 59.30 February 27, 2020 Issued for services 2,000 9.00 October 11, 2021 2018 Agent 40,000 12.50 September 20, 2022 2017 Agent 13,846 40.60 April 12, 2022 2016 Agent 10,396 40.00 May 12, 2021 2015 Agent 2,178 30.00 July 15, 2020 862,503 24.80 | Description Number Exercise Expiry date 2018 Investor 775,000 12.50 September 22, 2022 2017 Investor 207,693 35.00 April 19, 2022 2015 Investor 97,900 30.00 July 31, 2020 2013 Investor – Amended 77,850 31.40 March 31, 2019 2013 Placement Agent 126,250 31.40 June 30, 2019 Issued for services 26,500 30.00 July 31, 2020 to February 1, 2021 Issued for services 6,000 17.80 January 25, 2023 Issued for services 36,000 11.70 February 27, 2023 Issued for services 4,375 70.40 September 12, 2018 Issued for services 4,140 59.30 February 27, 2020 2018 Agent 40,000 12.50 September 20, 2022 2017 Agent 13,846 40.60 April 12, 2022 2016 Agent 10,397 40.00 May 12, 2021 to June 8, 2021 2015 Agent 2,177 30.00 July 15, 2020 1,428,128 20.80 |
Performance Stock Units [Member] | ||
Class of Stock [Line Items] | ||
Schedule of outstanding under the legacy plan | Number of Balance – June 30, 2016 and 2017 — Granted 140,000 Forfeited (20,000 ) Balance – June 30, 2018 120,000 | |
Schedule of valuation assumptions using a Black-Scholes pricing model | Dividend rate 0 % Volatility 79.0 to 82.5 % Risk-free rate 2.56% to 2.71 % Term – 1.67 to 3.24 | June 30, Dividend rate 0% Volatility 79.0 to 82.5% Risk-free rate 2.56% to 2.71% Term – 1.67 to 3.24 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of derivative liabilities under the fair value hierarchy | March 31, 2019 Liability Level 1 Level 2 Level 3 Derivative liability $ - $ - $ 265 June 30, 2018 Liability Level 1 Level 2 Level 3 Derivative liability $ - $ - $ 1,117 |
Current and Deferred Income T_2
Current and Deferred Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of future tax assets and deferred tax liabilities | June 30, June 30, Deferred tax assets: Non-capital losses carried forward 9,416,047 7,340,286 Capital losses carried forward 17,925 17,925 Financing costs 5,512 5,512 Scientific research and development 396,758 350,435 Scientific research and development - ITC 354,411 319,528 10,190,653 8,033,686 Deferred tax liabilities: Scientific research and development ITC (61,230 ) (53,841 ) 10,129,423 7,979,845 Valuation allowance (10,129,423 ) (7,979,845 ) 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 (3,063,036 ) (2,747,800 ) Permanent differences 290,722 (15,342 ) Effect of rate differentials between jurisdictions 76,364 464,938 Impact of changes in income tax rates 138,516 - Scientific research and development ITC (354,411 ) - Other 75,422 (62,962 ) Change in valuation allowance 2,836,423 2,361,166 - - |
Supplementary Statement of Ca_2
Supplementary Statement of Cash Flows Information (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Jun. 30, 2018 | |
Supplemental Cash Flow Information [Abstract] | ||
Schedule of supplementary statement of cash flows information | Nine months ended March 31, 2019 2018 $ $ Series B Preferred share common stock dividend (note 5) 75,477 142,358 Series B Preferred shares converted to common stock (note 5) 279,051 - Share issuance costs accrued through accounts payable and accrued liabilities 15,884 - Deferred financing costs accrued through accounts payable and accrued liabilities 15,873 - Income taxes paid - - Interest paid - - | Year ended Year ended Series B Preferred Stock common stock dividend (note 5) 176,236 790,454 Non-cash issue costs (note 5) 148,087 424,401 Reclassification of derivative liability to equity upon the exercise of warrants (note 4) — 248,409 Reclassification of derivative liability to equity upon the amendment of warrants (note 4) — 53,006 Reclassification of stock option liability to equity upon settlement (note 5) — 260,969 Conversion of Series B Preferred Stock to common stock (note 5) — 147,375 Income taxes paid — — Interest paid — — |
Financial Risk Management (Tabl
Financial Risk Management (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Schedule of balances in foreign currencies | June 30, June 30, Trade payables 79,858 164,226 Cash 41,459 39,251 Interest, taxes, and other receivables 14,618 99,397 |
Schedule of fair value of off-balance sheet risks | Cash and Insured Non-insured 5,971,995 103,170 5,868,825 |
Going Concern, Nature of Oper_2
Going Concern, Nature of Operations, and Corporate History (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Going Concern, Nature of Operations, and Corporate History (Textual) | |||||||
Net loss | $ (1,663,985) | $ (2,933,057) | $ (5,465,486) | $ (8,761,061) | $ (11,138,312) | $ (8,081,764) | |
Negative cash flow from operations | (4,514,674) | (7,318,012) | (9,850,850) | (8,019,071) | |||
Accumulated deficit | (57,988,567) | (57,988,567) | (52,441,337) | (41,118,433) | |||
Cash and cash equivalents on hand | $ 2,152,233 | $ 8,506,922 | $ 2,152,233 | $ 8,506,922 | $ 5,971,995 | $ 6,586,014 | $ 6,157,264 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | ||
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | ||
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | $ 1,117 | $ 61,228 |
Significant Accounting Polici_5
Significant Accounting Policies (Details Textual) - USD ($) | May 16, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 |
Significant Accounting Policies (Textual) | |||||
Reverse stock split, description | 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. | ||||
Equity note stock split, description | 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 20,000,000 authorized shares of common stock to 5,000,000 shares authorized. The par value of its common stock was unchanged at $0.001 per share, post-split. All common shares, warrants, stock options, conversion ratios, and per share information in these consolidated financial statements give retroactive effect to the 1-for-4 reverse stock split. | ||||
Capitalized cost | $ 79,910 | $ 67,261 | |||
Amortization expense | $ 24,528 | $ 16,683 | |||
Warrant [Member] | |||||
Significant Accounting Policies (Textual) | |||||
Anti-dilutive warrants, stock options, performance stock units, and convertible preferred shares related to outstanding | 862,502 | 1,428,128 | 1,690,810 | 774,976 | |
Employee Stock Option [Member] | |||||
Significant Accounting Policies (Textual) | |||||
Anti-dilutive warrants, stock options, performance stock units, and convertible preferred shares related to outstanding | 292,683 | 172,085 | 120,000 | 0 | |
Performance Stock Units [Member] | |||||
Significant Accounting Policies (Textual) | |||||
Anti-dilutive warrants, stock options, performance stock units, and convertible preferred shares related to outstanding | 120,000 | 0 | |||
Series B Convertible Preferred Shares [Member] | |||||
Significant Accounting Policies (Textual) | |||||
Anti-dilutive warrants, stock options, performance stock units, and convertible preferred shares related to outstanding | 210,279 | 220,279 | 220,279 | 220,279 |
Valent Technologies, LLC (Detai
Valent Technologies, LLC (Details) - USD ($) | Sep. 30, 2014 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 |
Valent Technologies, LLC (Textual) | |||||||
Series A preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||
Dividend payable | $ 6,267 | $ 6,267 | $ 8,356 | $ 8,356 | |||
Proceeds from warrants exercised | 726,179 | 312,500 | 312,500 | 545,026 | |||
Valent Technologies Llc [Member] | |||||||
Valent Technologies, LLC (Textual) | |||||||
Loan payable outstanding amount | $ 278,530 | ||||||
Aggregate accrued interest | $ 28,530 | ||||||
Series A preferred stock, shares issued | 278,530 | ||||||
Series A preferred stock, par value | $ 1 | ||||||
Series A preferred stock, rate of dividend | 3.00% | ||||||
Dividend payable | $ 2,089 | $ 2,089 | $ 6,267 | $ 6,267 | $ 8,356 | $ 8,356 | |
Warrants exercised per share | $ 15.40 | ||||||
Proceeds from warrants exercised | $ 192,075 | ||||||
Warrants issued | 12,500 | ||||||
Valent Technologies Llc [Member] | CA [Member] | |||||||
Valent Technologies, LLC (Textual) | |||||||
Warrants exercised per share | $ 20 |
Derivative Liability (Details)
Derivative Liability (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Summarized derivative liability | ||||||
Opening balance | $ 76 | $ 5,549 | $ 1,117 | $ 28,137 | $ 28,137 | $ 693,700 |
Change in fair value of warrants | 189 | (2,160) | (852) | (57,839) | (60,111) | (331,057) |
Reclassification to equity upon amendment of warrants | (53,006) | |||||
Reclassification to equity upon exercise of warrants | (248,409) | |||||
Closing balance | 265 | 3,389 | 265 | 3,389 | 1,117 | 28,137 |
Less current portion | (5) | (5) | (33,091) | |||
Long term portion | $ 265 | $ 3,384 | $ 265 | $ 3,384 | $ 1,117 | $ 28,137 |
Derivative Liability (Details 1
Derivative Liability (Details 1) - USD ($) | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Number of warrants, 2015 Agent Warrants | 2,177 | 2,177 | 2,177 |
2015 Agent Warrants | $ 265 | $ 1,117 | $ 23,669 |
Number of warrants, 2013 investor warrants, shares | 10,513 | ||
2013 investor warrants, value | $ 33,091 | ||
Number of warrants, Warrants issued for services, shares | 4,375 | 4,375 | |
Warrants issued for services, value | $ 4,468 | ||
Number of warrants, Closing balance | 2,177 | 6,552 | 17,065 |
Closing balance | $ 265 | $ 1,117 | $ 61,228 |
Number of warrants, Less current portion | (10,513) | ||
Less current portion | $ (33,091) | ||
Number of warrants, Long-term portion | 2,177 | 6,552 | 6,552 |
Long-term portion | $ 265 | $ 1,117 | $ 28,137 |
Derivative Liability (Details T
Derivative Liability (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2015 | Mar. 31, 2013 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Liability (Textual) | |||||||
Exercised price | $ 1,000 | ||||||
Net proceeds from the exercise of warrants | $ 726,179 | $ 312,500 | $ 312,500 | $ 545,026 | |||
Two Zero One Three Investor Warrants [Member] | |||||||
Derivative Liability (Textual) | |||||||
Number of warrants exercised | 328,125 | ||||||
Purchase price | $ 32 | ||||||
Gross proceeds from exercise of warrants | $ 1,050,000,000 | ||||||
Reverse acquisition, description | Each unit consisted of one share of common stock and one five-year warrant (the "2013 Investor Warrants") to purchase one share of common stock at an initial exercise price of $32.00. | ||||||
Exercised price | $ 0.04 | ||||||
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 $64.00 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. | ||||||
Two Zero One Three Investor Warrants [Member] | Maximum [Member] | |||||||
Derivative Liability (Textual) | |||||||
Warrants, exercise price reduced | $ 31.40 | $ 32 | |||||
Two Zero One Three Investor Warrants [Member] | Minimum [Member] | |||||||
Derivative Liability (Textual) | |||||||
Warrants, exercise price reduced | $ 26.80 | $ 31.40 | |||||
Two Zero One Five Agent Warrants [Member] | |||||||
Derivative Liability (Textual) | |||||||
Number of warrants exercised | 68 | ||||||
Cashless warrant exercised | 1,000 | ||||||
Gross proceeds from exercise of warrants | $ 204,000 | ||||||
Exercised price | $ 3 | ||||||
Number of warrants issued | 2,348 | ||||||
Reclassification of derivative liability upon the exchange of investor warrants | $ 993,500 | ||||||
Warrants expiration date | Jul. 15, 2020 | ||||||
Common stock shares issued on cashless exercise of warrants | 59 | ||||||
Derivative liability | $ 2,959,400 | ||||||
Two Zero One Three Investor Warrant Exercises [Member] | |||||||
Derivative Liability (Textual) | |||||||
Number of warrants exercised | 6,010 | ||||||
Exercised price | $ 31.40 | ||||||
Net proceeds from the exercise of warrants | $ 20,465,900 | ||||||
Reclassification of derivative liability upon the exchange of investor warrants | $ 23,847,400 | ||||||
Two Zero One Three Investor Warrant Amendments [Member] | |||||||
Derivative Liability (Textual) | |||||||
Number of warrants issued | 1,594 | ||||||
Reclassification of derivative liability upon the exchange of investor warrants | $ 53,006 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Balance | $ 5,435,223 | $ 6,578,524 | $ 6,578,524 | $ 4,858,778 | |||
Warrants issued for services | [1] | 192,400 | 81,602 | ||||
Conversion of Series B preferred stock to common stock | |||||||
Series B preferred stock dividend | |||||||
Shares issued for services | 8,582 | 564,000 | |||||
Stock option expense | 495,925 | 124,747 | |||||
Performance stock unit expense | 183,205 | 48,624 | |||||
Series A Preferred cash dividend | (8,356) | (8,356) | |||||
Loss for the period | $ (1,663,985) | $ (2,933,057) | (5,465,486) | (8,761,061) | (11,138,312) | (8,081,764) | |
Warrants exercised for cash | 312,500 | 788,276 | |||||
Issuance of shares and warrants | 8,945,336 | 7,932,107 | |||||
Balance | 1,259,161 | 1,259,161 | 5,435,223 | 6,578,524 | |||
Retained Earnings [Member] | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Balance | (56,299,291) | (47,046,347) | (52,441,337) | (41,118,433) | (41,118,433) | (32,237,859) | |
Warrants issued for services | |||||||
Conversion of Series B preferred stock to common stock | |||||||
Series B preferred stock dividend | (23,202) | (46,626) | (75,477) | (142,358) | (176,236) | (790,454) | |
Shares issued for services | |||||||
Stock option expense | |||||||
Performance stock unit expense | |||||||
Series A Preferred cash dividend | (2,089) | (2,089) | (6,267) | (6,267) | (8,356) | (8,356) | |
Loss for the period | (1,663,985) | (2,933,057) | (5,465,486) | (8,761,061) | |||
Warrants exercised for cash | |||||||
Issuance of shares and warrants | |||||||
Balance | (57,988,567) | (50,028,119) | (57,988,567) | (50,028,119) | (52,441,337) | (41,118,433) | |
Warrant [Member] | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Balance | 6,046,587 | 7,321,844 | 8,229,482 | 4,570,574 | 4,570,574 | 1,658,382 | |
Warrants issued for services | 8,732 | 156,685 | 36,534 | 155,204 | 192,400 | 81,602 | |
Conversion of Series B preferred stock to common stock | |||||||
Series B preferred stock dividend | |||||||
Shares issued for services | |||||||
Stock option expense | |||||||
Performance stock unit expense | |||||||
Series A Preferred cash dividend | |||||||
Loss for the period | |||||||
Warrants exercised for cash | (106,335) | (120,147) | |||||
Issuance of shares and warrants | (2,210,697) | 2,752,751 | 3,572,843 | 2,950,737 | |||
Balance | 6,055,319 | 7,478,529 | 6,055,319 | 7,478,529 | 8,229,482 | 4,570,574 | |
Additional Paid-in Capital [Member] | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Balance | 46,851,817 | 43,259,228 | 43,198,193 | 36,678,344 | 36,678,344 | 28,843,173 | |
Warrants issued for services | |||||||
Conversion of Series B preferred stock to common stock | 279,041 | 147,370 | |||||
Series B preferred stock dividend | 23,197 | 46,621 | 75,463 | 142,343 | 176,216 | 790,434 | |
Shares issued for services | 3,512 | 4,821 | 10,267 | 4,821 | 8,581 | 563,994 | |
Stock option expense | 99,735 | 137,296 | 355,388 | 430,673 | 495,925 | 124,747 | |
Performance stock unit expense | 60,177 | 183,205 | 48,624 | ||||
Series A Preferred cash dividend | |||||||
Loss for the period | |||||||
Warrants exercised for cash | 312,475 | 312,475 | 418,810 | 908,399 | |||
Issuance of shares and warrants | (16,186) | 2,920,695 | 6,191,785 | 5,371,693 | 4,981,093 | ||
Balance | 47,022,252 | 43,760,441 | 47,022,252 | 43,760,441 | 43,198,193 | 36,678,344 | |
Common Stock [Member] | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Balance | $ 2,614 | $ 2,261 | $ 2,297 | $ 1,451 | $ 1,451 | $ 1,119 | |
Balance, Shares | 2,614,342 | 2,260,884 | 2,296,667 | 1,450,963 | 1,450,963 | 1,118,702 | |
Warrants issued for services | |||||||
Conversion of Series B preferred stock to common stock | $ 10 | $ 5 | |||||
Conversion of Series B preferred stock to common stock, shares | 10,000 | 5,281 | |||||
Series B preferred stock dividend | $ 5 | $ 5 | $ 14 | $ 15 | $ 20 | $ 20 | |
Series B preferred stock dividend, shares | 4,735 | 4,960 | 14,430 | 14,881 | 19,841 | 20,045 | |
Shares issued for services | $ 1 | $ 2 | $ 1 | $ 6 | |||
Shares issued for services, shares | 956 | 407 | 2,269 | 407 | 863 | 6,000 | |
Stock option expense | |||||||
Performance stock unit expense | |||||||
Series A Preferred cash dividend | |||||||
Loss for the period | |||||||
Warrants exercised for cash | $ 25 | $ 25 | $ 25 | $ 24 | |||
Warrants exercised for cash, shares | 25,000 | 25,000 | 25,000 | 23,953 | |||
Issuance of shares and warrants | $ 297 | $ 800 | $ 800 | $ 277 | |||
Issuance of shares and warrants, shares | 296,667 | 800,000 | 800,000 | 276,923 | |||
Balance | $ 2,620 | $ 2,291 | $ 2,620 | $ 2,291 | $ 2,297 | $ 1,451 | |
Balance, Shares | 2,620,033 | 2,291,251 | 2,620,033 | 2,291,251 | 2,296,667 | 1,450,963 | |
[1] | Warrants issued for services are exercisable at various prices and expire at the various dates noted in the table below. |
Stockholders' Equity (Details 1
Stockholders' Equity (Details 1) - shares | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Number of PSUs outstanding | |||
Granted | 30,000 | 152,698 | 26,460 |
PSUs [Member] | |||
Number of PSUs outstanding | |||
Beginning balance | 120,000 | ||
Granted | 140,000 | ||
Forfeited | (20,000) | ||
Ending balance | 120,000 | 120,000 |
Stockholders' Equity (Details 2
Stockholders' Equity (Details 2) - Performance Stock Units [Member] | 9 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend rate | 0.00% | 0.00% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility | 79.00% | 79.00% |
Risk-free rate | 2.56% | 2.56% |
Term - years | 1 year 8 months 2 days | 1 year 8 months 2 days |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility | 82.50% | 82.50% |
Risk-free rate | 2.71% | 2.71% |
Term - years | 3 years 2 months 27 days | 3 years 2 months 27 days |
Stockholders' Equity (Details 3
Stockholders' Equity (Details 3) - $ / shares | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Number of stock options outstanding | |||
Granted | 30,000 | 152,698 | 26,460 |
Stock Option [Member] | |||
Number of stock options outstanding | |||
Beginning balance | 262,683 | 112,085 | 85,625 |
Granted | 300,000 | 152,698 | 26,460 |
Forfeited | (2,100) | ||
Ending balance | 292,683 | 262,683 | 112,085 |
Weighted average exercise price | |||
Beginning balance | $ 24.27 | $ 41.81 | $ 37.77 |
Granted | 6.10 | 11.35 | 48.22 |
Forfeited | 21.10 | ||
Ending balance | $ 22.40 | $ 24.27 | $ 41.81 |
Stockholders' Equity (Details 4
Stockholders' Equity (Details 4) - Employee Stock Option [Member] - $ / shares | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number Outstanding | 292,683 | 262,683 | 112,085 | 85,625 |
Number exercisable | 188,550 | 124,523 | ||
Exercise Price [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 7 | $ 7 | ||
Number Outstanding | 5,451 | 5,451 | ||
Weighted average remaining contractual life (years) | 9 years 2 months 23 days | 9 years 11 months 23 days | ||
Number exercisable | ||||
Exercise Price One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 8.70 | $ 8.70 | ||
Number Outstanding | 12,000 | 12,000 | ||
Weighted average remaining contractual life (years) | 8 years 7 months 2 days | 9 years 4 months 2 days | ||
Number exercisable | 12,000 | 7,000 | ||
Exercise Price Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 9.83 | $ 9.80 | ||
Number Outstanding | 83,647 | 83,647 | ||
Weighted average remaining contractual life (years) | 9 years 1 month 20 days | 9 years 10 months 21 days | ||
Number exercisable | 23,235 | |||
Exercise Price Three [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 10.60 | $ 10.60 | ||
Number Outstanding | 3,600 | 3,600 | ||
Weighted average remaining contractual life (years) | 9 years 11 days | 9 years 9 months 14 days | ||
Number exercisable | 1,200 | |||
Exercise Price Four [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 11.70 | $ 11.70 | ||
Number Outstanding | 30,000 | 30,000 | ||
Weighted average remaining contractual life (years) | 3 years 10 months 28 days | 4 years 7 months 28 days | ||
Number exercisable | 30,000 | 12,500 | ||
Exercise Price Five [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 14.98 | $ 15.50 | ||
Number Outstanding | 2,500 | 25,000 | ||
Weighted average remaining contractual life (years) | 3 years 2 months 1 day | 3 years 11 months 1 day | ||
Number exercisable | 2,500 | 2,500 | ||
Exercise Price Six [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 20 | $ 20 | ||
Number Outstanding | 13,125 | 13,125 | ||
Weighted average remaining contractual life (years) | 2 years 6 months 7 days | 3 years 3 months 8 days | ||
Number exercisable | 13,125 | 13,125 | ||
Exercise Price Seven [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 21.10 | $ 21.1 | ||
Number Outstanding | 15,900 | 15,900 | ||
Weighted average remaining contractual life (years) | 7 years 6 months 3 days | 8 years 3 months 4 days | ||
Number exercisable | 8,700 | 6,300 | ||
Exercise Price Eight [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 29.60 | $ 29.6 | ||
Number Outstanding | 4,500 | 4,500 | ||
Weighted average remaining contractual life (years) | 5 years 10 months 3 days | 6 years 7 months 6 days | ||
Number exercisable | 4,500 | 4,500 | ||
Exercise Price Nine [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 32 | $ 32 | ||
Number Outstanding | 3,000 | 3,000 | ||
Weighted average remaining contractual life (years) | 2 months 1 day | 11 months 1 day | ||
Number exercisable | 3,000 | 3,000 | ||
Exercise Price Ten [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 37.60 | $ 37.6 | ||
Number Outstanding | 4,500 | 4,500 | ||
Weighted average remaining contractual life (years) | 6 years 10 months 10 days | 7 years 7 months 10 days | ||
Number exercisable | 4,500 | 3,499 | ||
Exercise Price Eleven [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 40 | $ 40 | ||
Number Outstanding | 1,250 | 1,250 | ||
Weighted average remaining contractual life (years) | 6 months | 1 year 2 months 30 days | ||
Number exercisable | 1,250 | 1,250 | ||
Exercise Price Twelve [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 41 | $ 41 | ||
Number Outstanding | 4,000 | 4,000 | ||
Weighted average remaining contractual life (years) | 7 years 7 months 10 days | 8 years 4 months 9 days | ||
Number exercisable | 3,111 | 2,111 | ||
Exercise Price Thirteen [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 42 | $ 42 | ||
Number Outstanding | 41,250 | 41,250 | ||
Weighted average remaining contractual life (years) | 3 years 9 months 22 days | 4 years 6 months 21 days | ||
Number exercisable | 41,250 | 41,250 | ||
Exercise Price Fourteen [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 44.80 | $ 44.8 | ||
Number Outstanding | 3,000 | 3,000 | ||
Weighted average remaining contractual life (years) | 6 years 10 months 10 days | 7 years 7 months 10 days | ||
Number exercisable | 3,000 | 2,250 | ||
Exercise Price Fifteen [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 49.50 | $ 49.5 | ||
Number Outstanding | 22,460 | 22,460 | ||
Weighted average remaining contractual life (years) | 5 years 3 months 22 days | 6 years 26 days | ||
Number exercisable | 18,458 | 15,182 | ||
Exercise Price Sixteen [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 53.20 | $ 53.2 | ||
Number Outstanding | 8,000 | 8,000 | ||
Weighted average remaining contractual life (years) | 7 years 1 month 6 days | 7 years 10 months 6 days | ||
Number exercisable | 7,555 | 5,556 | ||
Exercise Price Seventeen [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 61.60 | $ 61.6 | ||
Number Outstanding | 1,500 | 1,500 | ||
Weighted average remaining contractual life (years) | 4 years | 4 years 9 months | ||
Number exercisable | 1,500 | 1,500 | ||
Exercise Price Eighteen [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 92 | $ 92 | ||
Number Outstanding | 3,000 | 3,000 | ||
Weighted average remaining contractual life (years) | 4 years | 4 years 11 months 1 day | ||
Number exercisable | 3,000 | 3,000 | ||
Exercise Price Nineteen [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 6.10 | |||
Number Outstanding | 30,000 | |||
Weighted average remaining contractual life (years) | 9 years 7 months 6 days | |||
Number exercisable | 6,666 | |||
Exercise Price Of Ca [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number Outstanding | 25,000 | |||
Converted Exercise Prices [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number Outstanding | 25,000 |
Stockholders' Equity (Details 5
Stockholders' Equity (Details 5) - Employee Stock Option [Member] | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend rate | 0.00% | 0.00% | 0.00% |
Term - years | 3 years | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 70.60% | 72.40% | 77.50% |
Risk-free rate | 2.10% | 1.49% | 1.00% |
Term - years | 1 month 6 days | 7 months 6 days | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 79.10% | 87.10% | 88.70% |
Risk-free rate | 3.20% | 2.86% | 1.74% |
Term - years | 3 years | 3 years 11 days |
Stockholders' Equity (Details 6
Stockholders' Equity (Details 6) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 99,735 | $ 137,296 | $ 355,388 | $ 430,673 | ||
General and administrative [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | 86,846 | 128,151 | 290,922 | 300,127 | $ 355,055 | $ 47,041 |
Research and development [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 12,889 | $ 9,145 | $ 64,466 | $ 130,546 | $ 140,870 | $ 77,706 |
Stockholders' Equity (Details 7
Stockholders' Equity (Details 7) - $ / shares | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Number of Options | |||
Beginning balance | 138,160 | 31,803 | 14,102 |
Granted | 30,000 | 152,698 | 26,460 |
Vested | (64,027) | (44,241) | (8,759) |
Forfeited | (2,100) | ||
Ending balance | 104,133 | 138,160 | 31,803 |
Weighted average exercise price | |||
Beginning balance | $ 14.39 | $ 48.09 | $ 31.71 |
Granted | 6.1 | 11.35 | 48.22 |
Vested | 14.82 | 27.81 | 46.81 |
Forfeited | 21.10 | ||
Ending balance | 11.62 | 14.39 | 48.09 |
Weighted average grant date fair value | |||
Beginning balance | 7.63 | 25.74 | 17.25 |
Granted | 2.56 | 6.01 | 26.11 |
Vested | 7.88 | 15.02 | 24.83 |
Forfeited | 11.32 | ||
Ending balance | $ 5.95 | $ 7.63 | $ 25.74 |
Stockholders' Equity (Details 8
Stockholders' Equity (Details 8) - Warrant [Member] | 9 Months Ended | |
Mar. 31, 2019shares | ||
Summary of changes in outstanding warrants | ||
Balance | 1,428,128 | |
Exercised for cash | (197,500) | [1] |
Cashless exchange | (297,500) | [1] |
Issued for services | 14,000 | [2] |
Forfeited | (2,400) | [3] |
Expired | (82,225) | [4] |
Balance | 862,503 | |
[1] | On November 25, 2018, the Company entered into Warrant Exercise and Exchange Agreements (the "Warrant Exercise Agreements") with certain holders (the "Exercising Holders") of the 2018 Investor Warrants. Pursuant to the Warrant Exercise Agreements, in order to induce the Exercising Holders to exercise the 2018 Investor Warrants for cash, the Company agreed to reduce the exercise price from $12.50 to $4.00 per share. Pursuant to the Warrant Exercise Agreements, the Exercising Holders exercised their 2018 Investor Warrants with respect to an aggregate of 197,500 shares of common stock underlying such 2018 Investor Warrants (the "Exercised Shares"). The Company received net proceeds of $726,481, comprising aggregate gross proceeds of $790,000 net of expenses of $63,519, from the exercise of the 2018 Investor Warrants. In addition, in order to further induce the Exercising Holders to exercise the 2018 Investor Warrants, the Warrant Exercise Agreements also provided for the issuance of one share of common stock to the Exercising Holders in exchange for every three shares of common stock underlying the 2018 Investor Warrants held by the Exercising Holders that are not being exercised for cash pursuant to the Warrant Exercise Agreements, if any. On November 26, 2018, the Company issued an aggregate of 99,167 shares of common stock in exchange for 297,500 2018 Investor Warrants, resulting in a 198,333 reduction in the Company's total shares of common stock outstanding on a fully-diluted basis. | |
[2] | All of the warrants issued for services are exercisable at $9.00 with 12,000 expiring on September 15, 2023 and 2,000 expiring on October 11, 2021. Of the total, 12,000 vest pro rata monthly over twelve months commencing September 15, 2018 and 2,000 are fully vested as of November 11, 2018. | |
[3] | Warrants issued for services exercisable at $11.70 were forfeited upon termination of the underlying agreement. | |
[4] | Warrants issued for services exercisable at $70.40 expired September 12, 2018. In addition, warrants exercisable at $31.40 expired March 31, 2019. |
Stockholders' Equity (Details 9
Stockholders' Equity (Details 9) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Number of Warrants | ||||
Beginning Balance | 1,217,475 | 360,475 | 152,171 | |
Issuance of 2017 Investor Warrants | [1] | 207,693 | ||
Issuance of 2017 Agent Warrants | [1] | 13,846 | ||
Exercise of Valent Warrants | [2] | (12,500) | ||
Exercise of 2015 Investor Warrants | [3] | (4,875) | ||
Issuance of 2018 Investor and 2018 Agent Warrants | [4] | 8,400,000 | ||
Exercise of 2018 Investor Warrants | [4] | (250,000) | ||
Warrants issued for services | [5] | 420,000 | 4,140 | |
Ending Balance | 1,217,475 | 360,475 | ||
Value of Warrants | ||||
Beginning Balance | $ 8,229,482 | $ 4,570,574 | $ 1,658,382 | |
Issuance of 2017 Investor Warrants | [1] | 2,526,336 | ||
Issuance of 2017 Agent Warrants | [1] | 424,401 | ||
Exercise of Valent Warrants | [2] | (89,432) | ||
Exercise of 2015 Investor Warrants | [3] | (30,715) | ||
Issuance of 2018 Investor and 2018 Agent Warrants | [4] | 3,572,843 | ||
Exercise of 2018 Investor Warrants | [4] | (106,335) | ||
Warrants issued for services | [5] | 192,400 | 81,602 | |
Ending Balance | $ 6,055,319 | $ 8,229,482 | $ 4,570,574 | |
[1] | As part of the financing completed by the Company on April 12, 2017, the Company issued the 2017 Investor Warrants and the 2017 Agent Warrants. The 2017 Investor Warrants are exercisable at $3.50 until April 19, 2022 and the 2017 Agent Warrants are exercisable at $4.06 until April 12, 2022. | |||
[2] | The Valent warrants were exercised at $1.54 (CA$2.00) for proceeds of $192,075. | |||
[3] | The 2015 Investor Warrants are exercisable at a price of $3.00. The warrants expire on July 31, 2020. During the year ended June 30, 2018, nil (2017 - 48,750) warrants were exercised for proceeds of $0 (2017 - $146,250). | |||
[4] | As part of the financing completed by the Company on September 22, 2017, the Company issued the 2018 Investor Warrants and the 2018 Agent Warrants. The 2018 Investor Warrants are exercisable at $1.25 until September 22, 2022 and the 2018 Agent Warrants are exercisable at $1.25 until September 20, 2022. | |||
[5] | Warrants issued for services are exercisable at various prices and expire at the various dates noted in the table below. |
Stockholders' Equity (Details_2
Stockholders' Equity (Details 10) - $ / shares | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 1,000 | ||
Warrant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number | 862,503 | 1,428,128 | 662,891 |
Exercise price | $ 24.80 | $ 20.80 | |
Warrant [Member] | Issued For Services One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number | 6,000 | 6,000 | |
Exercise price | $ 17.80 | $ 17.8 | |
Expiry date | January 25, 2023 | ||
Expiry date | Jan. 25, 2023 | ||
Warrant [Member] | Issued For Services Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number | 33,600 | 36,000 | |
Exercise price | $ 11.70 | $ 11.7 | |
Expiry date | February 27, 2023 | ||
Expiry date | Feb. 27, 2023 | ||
Warrant [Member] | Issued For Services Three [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number | 12,000 | 4,375 | |
Exercise price | $ 9 | $ 70.4 | |
Expiry date | September 15, 2023 | ||
Expiry date | Sep. 12, 2018 | ||
Warrant [Member] | Issued For Services Four [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number | 4,140 | 4,140 | |
Exercise price | $ 59.30 | $ 59.3 | |
Expiry date | February 27, 2020 | ||
Expiry date | Feb. 27, 2020 | ||
Warrant [Member] | Issued For Services [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number | 26,500 | 26,500 | |
Exercise price | $ 30 | $ 30 | |
Expiry date | July 1, 2020 to February 1, 2021 | ||
Warrant [Member] | Issued For Services [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiry date | Jul. 31, 2020 | ||
Warrant [Member] | Issued For Services [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiry date | Feb. 1, 2021 | ||
Warrant [Member] | Issued For Services Five [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number | 2,000 | ||
Exercise price | $ 9 | ||
Expiry date | October 11, 2021 | ||
Investor [Member] | Warrant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number | 280,000 | 775,000 | |
Exercise price | $ 12.50 | $ 12.5 | |
Expiry date | September 22, 2022 | ||
Expiry date | Sep. 22, 2022 | ||
Investor One [Member] | Warrant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number | 207,693 | 207,693 | |
Exercise price | $ 35 | $ 35 | |
Expiry date | April 19, 2022 | ||
Expiry date | Apr. 19, 2022 | ||
Investor Two [Member] | Warrant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number | 97,900 | 97,900 | |
Exercise price | $ 30 | $ 30 | |
Expiry date | July 31, 2020 | ||
Expiry date | Jul. 31, 2020 | ||
Placement Agent [Member] | Warrant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number | 126,250 | 126,250 | |
Exercise price | $ 31.40 | $ 31.4 | |
Expiry date | June 30, 2019 | ||
Expiry date | Jun. 30, 2019 | ||
Agent [Member] | Warrant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number | 40,000 | 40,000 | |
Exercise price | $ 12.50 | $ 12.5 | |
Expiry date | September 20, 2022 | ||
Expiry date | Sep. 20, 2022 | ||
Agent One [Member] | Warrant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number | 13,846 | 13,846 | |
Exercise price | $ 40.60 | $ 40.6 | |
Expiry date | April 12, 2022 | ||
Expiry date | Apr. 12, 2022 | ||
Agent Three [Member] | Warrant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number | 2,178 | 2,177 | |
Exercise price | $ 30 | $ 30 | |
Expiry date | July 15, 2020 | ||
Expiry date | Jul. 15, 2020 | ||
Agent Two [Member] | Warrant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number | 10,396 | 10,397 | |
Exercise price | $ 40 | $ 40 | |
Expiry date | May 12, 2021 | ||
Agent Two [Member] | Warrant [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiry date | May 12, 2021 | ||
Agent Two [Member] | Warrant [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiry date | Jun. 8, 2021 | ||
Investor Three [Member] | Warrant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number | 77,850 | ||
Exercise price | $ 31.4 | ||
Expiry date | Mar. 31, 2019 |
Stockholders' Equity (Details_3
Stockholders' Equity (Details 11) - Warrant [Member] | 12 Months Ended |
Jun. 30, 2018shares | |
Summary of changes in outstanding warrants | |
Balance | 662,891 |
Issuance of 2018 Investor Warrants | 800,000 |
Exercise of 2018 Investor Warrants | (25,000) |
Issuance of 2018 Agent Warrants | 40,000 |
Warrants issued for services | 42,000 |
Expiry of dividend warrants | (81,250) |
Expiry of 2013 Investor Warrants | (10,513) |
Balance | 1,428,128 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) | Mar. 31, 2019 | Jun. 30, 2018 |
Level 1 [Member] | ||
Liability | ||
Derivative liability | ||
Level 2 [Member] | ||
Liability | ||
Derivative liability | ||
Level 3 [Member] | ||
Liability | ||
Derivative liability | $ 265 | $ 1,117 |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Former President And Chief Operating Officer [Member] | |
Related Party Transactions (Textual) | |
Total expense | $ 311,683 |
Current and Deferred Income T_3
Current and Deferred Income Taxes (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Deferred tax assets: | ||
Non-capital losses carried forward | $ 9,416,047 | $ 7,340,286 |
Capital losses carried forward | 17,925 | 17,925 |
Financing costs | 5,512 | 5,512 |
Scientific research and development | 396,758 | 350,435 |
Scientific research and development - ITC | 354,411 | 319,528 |
Deferred tax assets | 10,190,653 | 8,033,686 |
Deferred tax liabilities: | ||
Scientific research and development - ITC | (61,230) | (53,841) |
Gross future tax assets | 10,129,423 | 7,979,845 |
Valuation allowance | (10,129,423) | (7,979,845) |
Net future tax assets |
Current and Deferred Income T_4
Current and Deferred Income Taxes (Details 1) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Effective income tax rate differs from the statutory income tax rate | ||
Tax recovery at statutory income tax rates | $ (3,063,036) | $ (2,747,800) |
Permanent differences | 290,722 | (15,342) |
Effect of rate differentials between jurisdictions | 76,364 | 464,938 |
Impact of changes in income tax rates | 138,516 | |
Scientific research and development - ITC | (354,411) | |
Other | 75,422 | (62,962) |
Change in valuation allowance | 2,836,423 | 2,361,166 |
Income tax expense benefit | $ 0 |
Current and Deferred Income T_5
Current and Deferred Income Taxes (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Current and Future Income Taxes (Textual) | |||
Investment tax credits expire, description | Expire between 2029 and 2038 | ||
Statutory income tax rate | 21.00% | 34.00% | |
Revalued deferred tax assets | $ 138,516 | ||
U.S. federal corporate tax rate | 21.00% | ||
British Columbia [Member] | |||
Current and Future Income Taxes (Textual) | |||
Non-refundable federal investment tax credits | $ 127,633 | ||
Investment tax credits expire, description | Expire between 2019 and 2028. | ||
Canadian [Member] | |||
Current and Future Income Taxes (Textual) | |||
Non-refundable federal investment tax credits | $ 226,778 | ||
Us And Canadian [Member] | |||
Current and Future Income Taxes (Textual) | |||
Operating loss carryforwards | $ 347 | ||
Net operating loss expire, description | Expiring in 2029. | ||
Minimum [Member] | |||
Current and Future Income Taxes (Textual) | |||
U.S. federal corporate tax rate | 21.00% | ||
Maximum [Member] | |||
Current and Future Income Taxes (Textual) | |||
U.S. federal corporate tax rate | 35.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Commitments and Contingencies (Textual) | ||
Lease rent for office space | $ 6,200 | |
Rent expense | 58,434 | $ 35,908 |
Manufacturing and clinical study management related cost | 654,829 | |
Deposits related to study initiation | $ 921,027 |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) - USD ($) | Sep. 30, 2014 | Dec. 31, 2014 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Stockholders Equity Note [Line Items] | |||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | |||||
Preferred stock special voting shares issued | 1 | 1 | 1 | 1 | |||||
Common stock, shares authorized | 7,000,000 | 7,000,000 | 7,000,000 | 5,000,000 | |||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Common stock, shares issued (in shares) | 2,620,033 | 2,620,033 | 22,966,668 | 1,450,963 | |||||
Common stock, shares outstanding | 562,761 | 562,761 | 912,761 | ||||||
Convertible preferred stock | 0 | ||||||||
Common Stock [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Common stock, shares issued (in shares) | 9,063 | 9,063 | 91,276 | ||||||
Common stock, shares outstanding | 9,063 | 9,063 | 91,276 | ||||||
Conversion of Series B preferred stock to common stock, shares | 10,000 | 5,281 | |||||||
Series A Preferred Stock [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Preferred stock, shares issued | 278,530 | 278,530 | 278,530 | 278,530 | |||||
Preferred stock, shares outstanding | 278,530 | 278,530 | 278,530 | 278,530 | |||||
Series B Preferred Stock [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Preferred stock, shares issued | 841,113 | 881,113 | 841,113 | 881,113 | 881,113 | 881,113 | |||
Preferred stock, shares outstanding | 841,113 | 881,113 | 841,113 | 881,113 | 881,113 | 881,113 | |||
Preferred stock, rate of dividend | 9.00% | ||||||||
Description of preferred stock | The 9% dividend accrues quarterly commencing on the date of issue and is payable quarterly on June 30, September 30, March 31, and March 31 of each year commencing on June 30, 2016. | ||||||||
Purchase price of shares | $ 8 | ||||||||
Convertible preferred stock | 2.5 | ||||||||
Conversion price | $ 3.20 | ||||||||
Conversion of Series B preferred stock to common stock, shares | 2,202,792 | 2,202,792 | |||||||
Issue of shares | 902,238 | ||||||||
Bid price | $ 8 | ||||||||
Final closing date | 5 years | ||||||||
Series B Preferred Stock [Member] | Common Stock [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Series B preferred stock dividend | $ 23,202 | $ 46,626 | $ 75,477 | $ 142,358 | |||||
Series B preferred stock dividend, shares | 4,735 | 4,960 | 14,430 | 14,881 | |||||
Conversion of Series B preferred stock to common stock, shares | 40,000 | 40,000 | |||||||
Issue of shares | 10,000 | 10,000 | |||||||
Exchange Agreement [Member] | Series A Preferred Stock [Member] | |||||||||
Stockholders Equity Note [Line Items] | |||||||||
Preferred stock, par value | $ 1 | $ 1 | |||||||
Preferred stock, shares issued | 278,530 | 278,530 | |||||||
Preferred stock, rate of dividend | 3.00% | 3.00% |
Stockholders' Equity (Details_4
Stockholders' Equity (Details Textual 1) - USD ($) | Apr. 12, 2017 | Sep. 22, 2017 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stockholders Equity Note [Line Items] | ||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |||
Additional warrants purchase | [1] | 207,693 | ||||
Issuance of agent warrants | [1] | 13,846 | ||||
Exercise price | $ 1,000 | |||||
Common shares issued | 2,620,033 | 22,966,668 | 1,450,963 | |||
Common shares outstanding | 562,761 | 912,761 | ||||
Shares issued for services | $ 8,582 | $ 564,000 | ||||
Two Zero One Eight Public Offering [Member] | ||||||
Stockholders Equity Note [Line Items] | ||||||
Issuance of shares and warrants - net of issue costs, shares | 800,000 | |||||
Sale of stock, description | The Company engaged a placement agent for the 2018 Registered Offering. Under the Company's engagement agreement with the placement agent, the Company paid $800,000 in cash commission and other fees to the placement agent and issued warrants to purchase 40,000 shares of common stock to the placement agent (the "2018 Agent Warrants"). The 2018 Agent Warrants are exercisable at a per share price of $12.50 and have a term of exercise of five years. | Under the Company's engagement agreement with the placement agent, the Company paid $800,000 in cash commission and other fees to the placement agent and issued warrants to purchase 400,000 shares of common stock to the placement agent (the "2018 Agent Warrants"). The 2018 Agent Warrants are exercisable at a per share price of $1.25 and have a term of exercise of five years. | ||||
Gross proceeds of cash | $ 10,000,000 | |||||
Common stock, par value | $ 1.25 | |||||
Additional warrants purchase | 800,000 | |||||
Issuance of cash | $ 254,664 | $ 254,664 | ||||
Net proceeds of cash | $ 8,945,336 | $ 8,945,336 | ||||
Exercise price | $ 1.25 | |||||
Two Zero One Seven Public Offering [Member] | ||||||
Stockholders Equity Note [Line Items] | ||||||
Issuance of shares and warrants - net of issue costs, shares | 2,769,232 | |||||
Sale of stock, description | Under the Company's engagement agreement with the placement agent, the Company agreed to pay up to an 8% cash commission and issue warrants to purchase shares of common stock (the "2017 Agent Warrants") up to the number of shares of common stock equal to 5% of the aggregate number of shares issued in the 2017 Public Offering. | |||||
Gross proceeds of cash | $ 90 | $ 1,492,298 | ||||
Common stock, par value | $ 3.25 | |||||
Additional warrants purchase | 2,076,924 | |||||
Issuance of cash | 347,897 | |||||
Net proceeds of cash | $ 7,932,107 | |||||
Issuance of agent warrants | 138,462 | |||||
Warrant term | 5 years | 5 years | ||||
Issuance of agent warrant cost | $ 424,401 | |||||
Exercise price | $ 3.50 | $ 4.06 | ||||
[1] | As part of the financing completed by the Company on April 12, 2017, the Company issued the 2017 Investor Warrants and the 2017 Agent Warrants. The 2017 Investor Warrants are exercisable at $3.50 until April 19, 2022 and the 2017 Agent Warrants are exercisable at $4.06 until April 12, 2022. |
Stockholders' Equity (Details_5
Stockholders' Equity (Details Textual 2) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stockholders Equity Note [Line Items] | |||||||
Common stock, shares issued | 2,620,033 | 2,620,033 | 22,966,668 | 1,450,963 | |||
Employee Stock Option [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Unrecognized compensation expense | $ 234,974 | $ 234,974 | $ 527,271 | ||||
Unrecognized compensation expense, term | 2 years 7 months 10 days | ||||||
Number of shares outstanding | 292,683 | 292,683 | 262,683 | 112,085 | 85,625 | ||
Omnibus Incentive Plan [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Common stock, shares issued | 780,000 | 780,000 | 7,800,000 | ||||
Percentage of fully diluted shares of common stock | 8.00% | 8.00% | |||||
Legacy plan, description | Under the Legacy Plan and/or are subject to outstanding stock options granted under the Legacy Plan, and a total of 122,698 shares of common stock have been issued under the 2017 Plan and/or are subject to outstanding stock options granted under the 2017 Plan. In addition, 120,000 PSU's have been issued under the 2017 Plan leaving a potential 367,317 shares of common stock available for issuance under the 2017 Plan if all such options under the Legacy Plan were exercised and no new grants are made under the Legacy Plan. | ||||||
Shares issued for services, shares | 169,985 | 1,699,850 | |||||
Performance Stock Units [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Fully diluted market capitalization amount | $ 500,000,000 | ||||||
Recognized expense related to the PSUs | $ 60,177 | $ 0 | 183,205 | $ 0 | $ 0 | ||
Unrecognized compensation expense | $ 342,936 | $ 0 | $ 342,936 | $ 0 | $ 526,140 | ||
Unrecognized compensation expense, term | 2 years 5 months 20 days | ||||||
Number of shares outstanding | 120,000 | 120,000 | 120,000 |
Stockholders' Equity (Details_6
Stockholders' Equity (Details Textual 3) - USD ($) | 9 Months Ended | ||
Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Warrant [Member] | |||
Stockholders Equity Note [Line Items] | |||
Warrant, description | i) On November 25, 2018, the Company entered into Warrant Exercise and Exchange Agreements (the "Warrant Exercise Agreements") with certain holders (the "Exercising Holders") of the 2018 Investor Warrants. Pursuant to the Warrant Exercise Agreements, in order to induce the Exercising Holders to exercise the 2018 Investor Warrants for cash, the Company agreed to reduce the exercise price from $12.50 to $4.00 per share. Pursuant to the Warrant Exercise Agreements, the Exercising Holders exercised their 2018 Investor Warrants with respect to an aggregate of 197,500 shares of common stock underlying such 2018 Investor Warrants (the "Exercised Shares"). The Company received net proceeds of $726,481, comprising aggregate gross proceeds of $790,000 net of expenses of $63,519, from the exercise of the 2018 Investor Warrants. In addition, in order to further induce the Exercising Holders to exercise the 2018 Investor Warrants, the Warrant Exercise Agreements also provided for the issuance of one share of common stock to the Exercising Holders in exchange for every three shares of common stock underlying the 2018 Investor Warrants held by the Exercising Holders that are not being exercised for cash pursuant to the Warrant Exercise Agreements, if any. On November 26, 2018, the Company issued an aggregate of 99,167 shares of common stock in exchange for 297,500 2018 Investor Warrants, resulting in a 198,333 reduction in the Company's total shares of common stock outstanding on a fully-diluted basis. ii) All of the warrants issued for services are exercisable at $9.00 with 12,000 expiring on September 15, 2023 and 2,000 expiring on October 11, 2021. Of the total, 12,000 vest pro rata monthly over twelve months commencing September 15, 2018 and 2,000 are fully vested as of November 11, 2018. iii) Warrants issued for services exercisable at $11.70 were forfeited upon termination of the underlying agreement. iv) Warrants issued for services exercisable at $70.40 expired September 12, 2018. In addition, warrants exercisable at $31.40 expired March 31, 2019. | ||
Employee Stock Option [Member] | |||
Stockholders Equity Note [Line Items] | |||
Aggregate intrinsic value of stock options outstanding | $ 0 | $ 8,400 | |
Aggregate intrinsic value of stock options exercisable | 0 | $ 2,800 | |
Unrecognized compensation expense | $ 234,974 | $ 527,271 | |
Unrecognized compensation expense, term | 2 years 7 months 10 days | ||
Employee Stock Option [Member] | Exercise Price Of Ca [Member] | |||
Stockholders Equity Note [Line Items] | |||
Number of stock options outstanding | 2,500 | ||
Stock options granted exercise price | $ 20 | ||
Employee Stock Option [Member] | Converted Exercise Prices [Member] | |||
Stockholders Equity Note [Line Items] | |||
Stock options granted exercise price | $ 14.98 |
Supplementary Statement of Ca_3
Supplementary Statement of Cash Flows Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Supplemental Cash Flow Information [Abstract] | ||||
Series B Preferred share common stock dividend (note 5) | $ 75,477 | $ 142,358 | $ 176,236 | $ 790,454 |
Series B Preferred shares converted to common stock (note 5) | 279,051 | 147,375 | ||
Share issuance costs accrued through accounts payable and accrued liabilities | $ 15,884 | |||
Deferred financing costs accrued through accounts payable and accrued liabilities | 15,873 | |||
Non-cash issue costs (note 5) | 148,087 | 424,401 | ||
Reclassification of derivative liability to equity upon the exercise of warrants (note 4) | 248,409 | |||
Reclassification of derivative liability to equity upon the amendment of warrants (note 4) | 53,006 | |||
Reclassification of stock option liability to equity upon settlement (note 5) | 260,969 | |||
Conversion of Series B Preferred Stock to common stock (note 5) | $ 279,051 | 147,375 | ||
Income taxes paid | ||||
Interest paid |
Financial Risk Management (Deta
Financial Risk Management (Details) - Foreign exchange risk [Member] - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Foreign exchange risk on currencies | ||
Trade payables | $ 79,858 | $ 164,226 |
Cash | 41,459 | 39,251 |
Interest, taxes, and other receivables | $ 14,618 | $ 99,397 |
Financial Risk Management (De_2
Financial Risk Management (Details 1) - USD ($) | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Risks and Uncertainties [Abstract] | |||||
Cash and cash equivalents | $ 2,152,233 | $ 5,971,995 | $ 8,506,922 | $ 6,586,014 | $ 6,157,264 |
Insured amount | 103,170 | ||||
Non-insured amount | $ 5,868,825 |
Financial Risk Management (De_3
Financial Risk Management (Details Textual) - USD ($) | 12 Months Ended | ||||
Jun. 30, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Financial Risk Management (Textual) | |||||
Cash and cash equivalents | $ 5,971,995 | $ 2,152,233 | $ 8,506,922 | $ 6,586,014 | $ 6,157,264 |
Credit risk, financial instrument maximum exposure | 39,519 | ||||
Non-insured amount | 5,868,825 | ||||
Foreign exchange risk [Member] | |||||
Financial Risk Management (Textual) | |||||
Financial risk, accounts payable and accrued liabilities | $ 106,132 | ||||
Maximum exposure of financial currency due to exchange rates, description | 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 $6,788. | ||||
Maximum exposure of interest rate risk, description | 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 due to the current low market interest rates. | ||||
Liquidity Risk [Member] | |||||
Financial Risk Management (Textual) | |||||
Liquidity risk maximum exposure | $ 1,638,515 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | May 07, 2019 | May 16, 2016 | Apr. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2016 |
Subsequent Events (Textual) | |||||
Description of reverse stock split | 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. | ||||
Rights offering for a maximum gross proceeds | $ 8,000,000 | ||||
Warrants price | $ 0.50 | ||||
Warrants price per unit | $ 1,000 | ||||
Subsequent Event [Member] | |||||
Subsequent Events (Textual) | |||||
Description of reverse stock split | The Company filed a Certificate of Change with the Secretary of State of Nevada that effected a 1-for-10 (1:10) reverse stock split of its common stock, par value $0.001 per share, which became effective on May 8, 2019. 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 70,000,000 authorized shares of common stock to 7,000,000 shares authorized. The par value of its common stock was unchanged at $0.001 per share, post-split. All common shares, warrants, stock options, conversion ratios, and per share information in these consolidated condensed interim financial statements give retroactive effect to the 1-for-10 reverse stock split. | ||||
Subsequent Event [Member] | Board of Directors [Member] | |||||
Subsequent Events (Textual) | |||||
Cancellation of PSU’s outstanding | 120,000 | ||||
Series B Preferred Stock [Member] | |||||
Subsequent Events (Textual) | |||||
Common stock new for services | 902,238 | ||||
2017 Omnibus Plan [Member] | Subsequent Event [Member] | |||||
Subsequent Events (Textual) | |||||
Shares of common stock available for issuance | 367,317 | ||||
Reduced shares of common stock available for issuance | 14,217 | ||||
Reserve will be increased back shares | 367,317 |