Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Sep. 06, 2019 | Dec. 31, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | DelMar Pharmaceuticals, Inc. | ||
Entity Central Index Key | 0001498382 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-30 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity Public Float | $ 8,400,000 | ||
Entity Common Stock, Shares Outstanding | 11,388,483 | ||
Entity File Number | 001-37823 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation State Country Code | NV |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Current assets | ||
Cash and cash equivalents | $ 3,718,758 | $ 5,971,995 |
Prepaid expenses and deposits | 280,248 | 1,034,930 |
Interest, taxes and other receivables | 26,187 | 39,519 |
Current assets | 4,025,193 | 7,046,444 |
Intangible assets - net | 12,062 | 28,411 |
Assets | 4,037,255 | 7,074,855 |
Current liabilities | ||
Accounts payable and accrued liabilities | 1,744,517 | 1,478,086 |
Related party payables | 325,208 | 160,429 |
Current liabilities | 2,069,725 | 1,638,515 |
Derivative liabilities | 1,117 | |
Liabilities | 2,069,725 | 1,639,632 |
Stockholders' equity | ||
1 special voting share at June 30, 2019 (June 30, 2018 - 1) | ||
Common stock Authorized 95,000,000 shares (June 30, 2018 - 7,000,000), $0.001 par value 3,839,358 issued at June 30, 2019 (June 30, 2018 - 2,296,667) | 3,839 | 2,297 |
Additional paid-in capital | 50,954,741 | 43,198,193 |
Warrants | 6,588,283 | 8,229,482 |
Accumulated deficit | (60,578,345) | (52,441,337) |
Accumulated other comprehensive income | 21,178 | 21,178 |
Stockholders' equity, total | 1,967,530 | 5,435,223 |
Liabilities and equity | 4,037,255 | 7,074,855 |
Series A Preferred Stock | ||
Stockholders' equity | ||
Preferred stock, value | 278,530 | 278,530 |
Series B Preferred Stock | ||
Stockholders' equity | ||
Preferred stock, value | $ 4,699,304 | $ 6,146,880 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Jun. 30, 2018 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock special voting shares issued | 1 | 1 |
Common stock, shares authorized | 95,000,000 | 7,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 3,839,358 | 2,296,667 |
Series A Preferred Stock [Member] | ||
Preferred Stock, shares issued | 278,530 | 278,530 |
Preferred stock, shares outstanding | 278,530 | 278,530 |
Series B Preferred Stock [Member] | ||
Preferred Stock, shares issued | 673,613 | 881,113 |
Preferred stock, shares outstanding | 673,613 | 881,113 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Expenses | ||
Research and development | $ 3,662,056 | $ 7,132,952 |
General and administrative | 4,736,440 | 4,041,711 |
Operating expenses | 8,398,496 | 11,174,663 |
Other loss (income) | ||
Change in fair value of derivative liabilities | (433,503) | (60,111) |
Derivative liability issue costs | 126,186 | |
Foreign exchange loss | 17,746 | 57,003 |
Interest income | (60,704) | (33,243) |
Other loss (income) | (350,275) | (36,351) |
Net and comprehensive loss for the year | 8,048,221 | 11,138,312 |
Computation of basic loss per share | ||
Net and comprehensive loss for the year | 8,048,221 | 11,138,312 |
Series B Preferred stock dividend | 80,431 | 176,236 |
Computation of basic loss per share | $ 8,128,652 | $ 11,314,548 |
Basic and fully diluted loss per share | $ 3.16 | $ 5.42 |
Basic weighted average number of shares | 2,574,692 | 2,086,142 |
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 |
Begining Balance at Jun. 30, 2017 | $ 1,451 | $ 36,678,344 | $ 21,178 | $ 6,425,410 | $ 4,570,574 | $ (41,118,433) | $ 6,578,524 |
Beginning 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 | |||||
Warrants issued for services, Shares | |||||||
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 | (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) | |||||
Ending Balance at Jun. 30, 2018 | $ 2,297 | 43,198,193 | 21,178 | 6,425,410 | 8,229,482 | (52,441,337) | 5,435,223 |
Ending Balance, Shares at Jun. 30, 2018 | 2,296,667 | ||||||
Issuance of shares and warrants - net of issue costs | $ 1,170 | 2,332,102 | 52,899 | 2,386,171 | |||
Issuance of shares and warrants - net of issue costs, shares | 1,170,000 | ||||||
Exercise and exchange of warrants | $ 297 | 2,930,565 | (2,210,697) | 720,165 | |||
Exercise and exchange of warrants, Shares | 296,667 | ||||||
Conversion of Series B preferred stock to common stock | $ 52 | 1,447,524 | (1,447,576) | ||||
Conversion of Series B preferred stock to common stock, Shares | 51,876 | ||||||
Reclassification of derivative liability to equity | 492,884 | 492,884 | |||||
Shares issued for services | $ 3 | 13,774 | 13,777 | ||||
Shares issued for services, shares | 3,444 | ||||||
Warrants issued for services | 23,715 | 23,715 | |||||
Warrants issued for services, Shares | |||||||
Shares issued on reverse stock split | $ 2 | 2 | |||||
Shares issued on reverse stock split, Shares | 2,433 | ||||||
Stock option expense | 426,029 | 426,029 | |||||
Performance stock unit expense | 526,141 | 526,141 | |||||
Series A preferred cash dividend | (8,356) | (8,356) | |||||
Series B preferred stock dividend | $ 18 | 80,413 | (80,431) | ||||
Series B preferred stock dividend, shares | 18,271 | ||||||
Loss for the year | (8,048,221) | (8,048,221) | |||||
Ending Balance at Jun. 30, 2019 | $ 3,839 | $ 50,954,741 | $ 21,178 | $ 4,977,834 | $ 6,588,283 | $ (60,578,345) | $ 1,967,530 |
Ending Balance, Shares at Jun. 30, 2019 | 3,839,358 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Loss for the year | $ (8,048,221) | $ (11,138,312) |
Items not affecting cash | ||
Non-cash derivative issue costs | 13,495 | |
Amortization of intangible assets | 16,349 | 24,528 |
Change in fair value of derivative liabilities | (433,503) | (60,111) |
Shares issued for services | 13,777 | 8,582 |
Warrants issued for services | 23,715 | 192,400 |
Stock option expense | 426,029 | 495,925 |
Performance stock unit expense | 526,141 | 48,624 |
Changes in non-cash working capital | ||
Prepaid expenses and deposits | 754,682 | 173,192 |
Interest, taxes and other receivables | 13,332 | 37,076 |
Accounts payable and accrued liabilities | 202,000 | 295,774 |
Related party payables | 164,779 | 71,472 |
Net cash flows from operating activities | (6,327,425) | (9,850,850) |
Cash flows from investing activities | ||
Intangible assets - website development costs | (12,649) | |
Net cash flows from investing activities | (12,649) | |
Cash flows from financing activities | ||
Net proceeds from the issuance of shares and warrants | 3,362,379 | 8,945,336 |
Net proceeds from the exercise and exchange of warrants | 720,165 | 312,500 |
Series A preferred stock dividend | (8,356) | (8,356) |
Net cash flows from financing activities | 4,074,188 | 9,249,480 |
Decrease in cash and cash equivalents | (2,253,237) | (614,019) |
Cash and cash equivalents - beginning of year | 5,971,995 | 6,586,014 |
Cash and cash equivalents - end of year | $ 3,718,758 | $ 5,971,995 |
Liquidity Risk, Nature of Opera
Liquidity Risk, Nature of Operations, and Corporate History | 12 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity risk, nature of operations, and corporate history | 1 Liquidity risk, nature of operations, and corporate history Liquidity risk 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, 2019, the Company reported a loss of $8,048,221, and a negative cash flow from operations of $6,327,425. The Company had an accumulated deficit of $60,578,345 as of June 30, 2019. As of June 30, 2019, the Company has cash and cash equivalents on hand of $3,718,758. 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 future, the Company will require additional funding to maintain its clinical trials, research and development projects, and for general operations. The Company may tailor its drug candidate development program based on the amount of funding the Company is able to raise in the future. These circumstances had indicated substantial doubt existed about the Company's ability to continue as a going concern. Subsequent to June 30, 2019, the Company completed an underwritten public offering for net proceeds of approximately $6.7 million (note 11). The Company believes, based on its current estimates, that it will be able to fund its operations beyond the next twelve months from the date these consolidated financial statements are issued. As a result, substantial doubt about the Company's ability to continue as a going concern has been alleviated. These financial statements do not give effect to any adjustments 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 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 headquarters is Suite 200 - 12707 High Bluff Dr., San Diego, California, 92130, it has an administrative office located at 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 | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant accounting policies | 2 Significant accounting policies 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. 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, 2019 and 2018. Intercompany balances and transactions have been eliminated on consolidation. Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions about future events that affect the reported amounts of assets, liabilities, expenses, contingent assets and contingent liabilities as at the end of, or during, the reporting period. Actual results could significantly differ from those estimates. Significant areas requiring management to make estimates include the derivative liabilities, 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, 2019 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 liabilities. 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 liabilities 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, or contain a repricing feature under certain conditions. 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 liabilities 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 liabilities. The carrying value of the derivative liabilities 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, 2019 Liability Level 1 Level 2 Level 3 Derivative liabilities - - - June 30, 2018 Liability Level 1 Level 2 Level 3 Derivative liabilities - - 1,117 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, 2019, the total capitalized cost was $79,910 (2018 - $79,910) and the Company has recognized $16,349 and $24,528, respectively, in amortization expense during the years ended June 30, 2019 and 2018. 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 below. 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, 2019 and 2018, 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 expense 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, 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 at June 30, 2019, potential common shares of 1,831,779 (2018 – 1,690,810) related to outstanding warrants and stock options, nil (2018 – 120,000) relating to performance stock units, and 168,427 (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. 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") 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 the Company's 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 the Company's 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 issued certain share purchase warrants in the quarter ended June 30, 2019 that contained a down round feature. The Company has accounted for these warrants as a derivative liability and has recognized $432,386 as a change in the fair value of the derivative liability in the consolidated statement of operations and comprehensive loss for the year ended June 30, 2019. In addition, $126,186 has been recognized as derivative issue costs. Upon expiry of the down round feature on June 28, 2019, $492,884 was reclassified from derivative liability to additional paid in capital. Had the Company adopted ASU 2017-11 for the year ended June 30, 2019, these warrants would not have been accounted for as a derivative liability. 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 adoption of ASU 2016-02 is not expected to have a material impact on the Company's results of operations or financial position. 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 adoption of ASU 2018-07 is not expected to have a material impact on the Company's results of operations or financial position. |
Valent Technologies LLC Agreeme
Valent Technologies LLC Agreements | 12 Months Ended |
Jun. 30, 2019 | |
Valent Technologies LLC Agreements [Abstract] | |
Valent Technologies LLC agreements | 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 its right, 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 the years ended June 30, 2019 and 2018 respectively, the Company recorded $8,356 related to the dividend paid to Valent. The dividends have been recorded as a direct increase in accumulated deficit. |
Derivative Liabilities
Derivative Liabilities | 12 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative liability | 4 Derivative liabilities The Company has issued common stock purchase warrants. Based on the terms of certain of these warrants the Company determined that the warrants were derivative liabilities which are 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. 2019 Investor Warrants As part of the Company's registered direct offering completed June 5, 2019 (note 5) the Company issued 760,500 share purchase warrants exercisable at a price of $3.10 until June 5, 2024 (the "2019 Investor Warrants"). The exercise price of the 2019 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, prior to June 28, 2019. As a result, upon issuance on June 5, 2019, the Company has accounted for the 2019 Investor Warrants as a derivative liability. The change in fair value of the 2019 Investor Warrants from the date of issue until June 28, 2019 has been recorded in the consolidated statement of operations and comprehensive loss for the year ended June 30, 2019. Upon expiry of the repricing feature on June 28, 2019, the fair value of the derivative liability at that time of $492,884 was reclassified to equity. 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 was subject to adjustment in the event that the Company issued common stock at a price lower than the exercise price, subject to certain exceptions. The 2013 Investor Warrants expired on March 31, 2019. 2015 Agent Warrants As part of the Company's financing completed in a prior period, the Company issued warrants to purchase 2,180 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. The Company's derivative liabilities are summarized as follows: Years ended June 30, 2019 2018 $ $ Opening balance 1,117 61,228 Issuance of 2019 Investor Warrants 925,270 - Change in fair value of warrants (433,503 ) (60,111 ) Reclassification of 2019 Investor Warrants to equity 492,884 - Closing balance - 1,117 Less current portion - - Long-term portion - 1,117 The derivative liabilities consist of the following warrants as at June 30, 2019 and 2018: Year ended June 30, 2019 Number of warrants $ 2015 Agent warrants 2,180 - Closing balance 2,180 - Less current portion - - Long-term portion 2,180 - Year ended June 30, 2018 Number of warrants $ Warrants issued for services 4,375 - 2015 Agent warrants 2,180 1,117 Closing balance 6,555 1,117 Less current portion - - Long-term portion 6,555 1,117 |
Stockholders' Equity (Deficienc
Stockholders' Equity (Deficiency) | 12 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stockholders' equity (deficiency) | 5 Stockholders' equity (deficiency) Preferred stock Authorized 5,000,000 preferred shares, $0.001 par value Issued and outstanding Special voting shares – at June 30, 2019 and 2018 – 1 Series A shares – at June 30, 2019 – 278,530 (June 30, 2018 – 278,530) Series B shares – at June 30, 2019 – 673,613 (June 30, 2018 – 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, 2019, the Company issued 18,271 (2018 – 19,841) shares of common stock and recognized $80,431 (2018 – $176,236) as a direct increase in accumulated deficit. During the year ended June 30, 2019, a total of 207,500 (2018 – 0) shares of Series B Preferred Stock were converted for an aggregate 51,876 (2018 – 0) shares of common stock. A total of 673,613 (2018 – 881,113) shares of Series B Preferred Stock are outstanding as of June 30, 2019, such that a total of 168,427 (2018 – 220,279) shares of common stock are issuable upon conversion of the Series B Preferred Stock as at June 30, 2019. 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 95,000,000 as at June 30, 2019 (2018 - 7,000,000) common shares, $0.001 par value The issued and outstanding common shares at June 30, 2019 of 3,839,358 (2018 – 2,296,667) include 7,813 (2018 – 91,276) shares of common stock on an as-exchanged basis with respect to the Exchangeable Shares. On May 8, 2019, pursuant to the Company effecting a 1-for-10 (1:10) reverse stock split of its common stock, the Company issued 2,433 additional shares of common stock due to the rounding up of fractional common shares to the nearest whole share (note 2). On June 26, 2019, the Company amended its articles of incorporation, as amended, to increase the number of authorized shares of common stock from 7,000,000 to 95,000,000 shares. Public offering financings Year ended June 30, 2019 On June 5, 2019 the Company completed a registered direct offering (the "2019 Registered Offering") of an aggregate of 1,170,000 shares of common stock and warrants to purchase an additional 760,500 shares of common stock at a price of $3.10 per share and related warrant for gross proceeds of $3.6 million. The warrants have an exercise price of $3.10 per share, are immediately exercisable and have a term of exercise of five years (the "2019 Investor Warrants"). The Company engaged a placement agent for the 2019 Registered Offering. Under the Company's engagement agreement with the placement agent, the Company paid $290,160 in cash commission and other fees to the placement agent and issued warrants to purchase 46,800 shares of common stock to the placement agent (the "2019 Agent Warrants"). Commencing December 3, 2019, the 2019 Agent Warrants are exercisable at $3.875 per share until June 3, 2024. In addition to the cash commission and other placement agent fees, the Company also incurred additional cash issue costs of $151,585 resulting in net cash proceeds of $3,185,255. 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 $1.25 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. Shares issued for services During the year ended June 30, 2019, the Company issued 3,444 (2018 – 863) shares of common stock for services resulting in the recognition of $13,777 (2018 – $8,582) in expense. All of the shares issued for services for the years ended June 30, 2019 and 2018 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 165,485 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 leaving a potential 491,817 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. In relation to the Company's rights offering that was terminated by the Company on June 26, 2019, the Company's board of directors temporarily reduced the number of shares of common stock that could be issued under the Company's 2017 Plan to 14,217 shares of common stock meaning that as of June 30, 2019, rather than the full number of 491,817, only 14,217 shares of common stock were available for issuance under the 2017 Plan. Subsequent to June 30, 2019, the reserve under the 2017 Plan was increased by the board of directors back to a potential 491,817 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 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. On April 30, 2019 the Company's directors all agreed to the cancellation of all PSU's. In relation to the PSU cancellation, the Company has recognized the full amount of the expense of the PSU's in the fourth quarter of fiscal 2019. The following table sets forth the PSUs outstanding under the 2017 Plan as of June 30, 2019: Number of Balance – June 30, 2017 - Granted 140,000 Forfeited (20,000 ) Balance – June 30, 2018 120,000 Cancelled (120,000 ) Balance – June 30, 2019 - The Company has recognized $526,141 (including accelerated expense recognition due to the cancellation of the PSU's of $322,877) (2018 - $48,624) in expense related to the PSUs during the year ended June 30, 2019 with all of it being recognized as general and administrative expense. There was no unrecognized PSU expense at June 30, 2019 (2018 - $526,140). 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, 2019: Number of Weighted 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 Granted 30,000 6.10 Expired (4,500 ) 28.37 Balance – June 30, 2019 288,183 22.31 The following table summarizes stock options currently outstanding and exercisable under all plans at June 30, 2019: Exercise price $ Number Weighted Number 6.10 30,000 9.36 13,610 7.00 5,451 8.98 1,817 8.70 12,000 8.34 12,000 9.83 83,647 8.89 30,206 10.60 3,600 8.79 1,500 11.70 30,000 3.66 30,000 15.27 2,500 2.92 2,500 20.00 13,125 2.27 13,125 21.10 14,400 8.02 8,400 29.60 4,500 5.60 4,500 37.60 4,500 6.61 4,500 40.00 1,250 0.25 1,250 41.00 4,000 7.36 3,486 42.00 41,250 3.56 41,250 44.80 3,000 6.61 3,000 49.50 22,460 5.07 19,549 53.20 8,000 6.85 8,000 61.60 1,500 3.75 1,500 92.00 3,000 3.92 3,000 288,183 203,193 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 US $15.27 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 70.6% to 101.5 % 72.4 to 87.1 % Risk-free rate 1.62% to 3.17 % 1.49% to 2.86 % Term – 0.1 to 3.0 0.6 to 3.03 The Company has recognized the following amounts as stock option expense for the periods noted: Years ended June 30, 2019 $ 2018 $ Research and development 74,667 140,870 General and administrative 351,362 355,055 426,029 495,925 All of the stock option expense for the years ended June 30, 2019 and 2018 has been recognized as additional paid in capital. The aggregate intrinsic value of stock options outstanding at June 30, 2019 and 2018 was $0 and the aggregate intrinsic value of stock options exercisable at June 30, 2019 and 2018 was also $0. As at June 30, 2019 there was $164,329 in unrecognized compensation expense that will be recognized over the next 2.4 years. No stock options granted under the Plan have been exercised to June 30, 2019. Upon the exercise of stock options new shares will be issued. A summary of status of the Company's unvested stock options as at June 30, 2019 under all plans is presented below: Number of Weighted Weighted 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 Granted 30,000 6.10 2.56 Vested (83,170 ) 14.51 7.65 Unvested at June 30, 2019 84,990 11.35 5.82 The aggregate intrinsic value of unvested stock options at June 30, 2019 and 2018 was $0. The unvested stock options have a remaining weighted average contractual term of 8.78 (2018 – 8.81) years. 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 6,670 options had their vesting accelerated such that they became fully vested on December 22, 2018, 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, 2019, 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. Warrants Number of Amount Balance – June 30, 2017 360,475 4,570,574 Issuance of 2018 Investor and 2018 Agent Warrants (i) 840,000 3,572,843 Exercise of 2018 Investor Warrants (i) (25,000 ) (106,335 ) Warrants issued for services (ii) 42,000 192,400 Balance – June 30, 2018 1,217,475 8,229,482 Exercise and exchange of 2018 Investor Warrants (iii) (495,000 ) (2,210,697 ) Issuance of 2019 Investor Warrants (note 4) 760,500 492,884 Issuance of 2019 Agent Warrants (iv) 46,800 52,899 Warrants issued for services (ii) 14,000 23,715 Balance – June 30, 2019 1,543,775 6,588,283 i) 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. ii) Warrants issued for services are exercisable at various prices and expire at the various dates noted in the table below. iii) 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 $720,165, comprising aggregate gross proceeds of $790,000 net of expenses of $69,835, 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. iv) As part of the financing completed by the Company on June 5, 2019, the Company issued the 2019 Agent Warrants. Commencing December 3, 2019, the 2019 Agent Warrants are exercisable at $3.875 until June 3, 2024. 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 for the year ended June 30, 2019: Description Number Balance – June 30, 2018 1,428,128 Issuance of 2019 Investor Warrants 760,500 Issuance of 2019 Agent Warrants 46,800 Exercise of 2018 Investor Warrants for cash (197,500 ) Cashless exchange of 2018 Investor Warrants (297,500 ) Warrants issued for services 14,000 Expiry of warrants (210,832 ) Balance – June 30, 2019 1,543,596 The following table summarizes the Company's outstanding warrants as of June 30, 2019: Description Number Exercise Expiry date 2019 Investor 760,500 3.10 June 5, 2024 2018 Investor 280,000 12.50 September 22, 2022 2017 Investor 207,721 35.00 April 19, 2022 2015 Investor 97,905 30.00 July 31, 2020 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 2019 Agent 46,800 3.875 June 3, 2024 2018 Agent 40,000 12.50 September 20, 2022 2017 Agent 13,848 40.60 April 12, 2022 2016 Agent 10,402 40.00 May 12, 2021 2015 Agent 2,180 30.00 July 15, 2020 1,543,596 12.60 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2019 | |
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 officers and directors, including to the Company's former President and Chief Operating Officer, have been aggregated and not shown separately, and are non-interest bearing and payable on demand. |
Current and Deferred Income Tax
Current and Deferred Income Taxes | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Current and deferred income taxes | 7 Current and deferred income taxes For the years ended June 30, 2019, and 2018, 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 10,823,529 9,416,047 Capital losses carried forward 17,925 17,925 Financing costs - 5,512 Scientific research and development 534,398 396,758 Scientific research and development - ITC 484,135 354,411 11,859,987 10,190,653 Deferred tax liabilities: Scientific research and development – ITC (81,386 ) (61,230 ) 11,778,601 10,129,423 Valuation allowance (11,778,601 ) (10,129,423 ) 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% (2018 – The differences arise from the following items: June 30, June 30, Tax recovery at statutory income tax rates (1,690,126 ) (3,063,036 ) Permanent differences (527,532 ) 290,722 Effect of rate differentials between jurisdictions (429,531 ) 76,364 Impact of changes in income tax rates - 138,516 Scientific research and development – ITC (39,807 ) (354,411 ) Other 106,320 75,422 Change in valuation allowance 2,580,676 2,836,423 - - As of June 30, 2019, the Company had combined US and Canadian net operating loss carry forwards of $43.2 million (2018 – 34.7 million) that begin expiring in 2029. In addition, the Company has non-refundable Canadian federal investment tax credits of $303,969 (2018 - $226,778) that expire between 2029 and 2039 and non-refundable British Columbia investment tax credits of $166,000 (2018 – 127,633) that expire between 2019 and 2029. The Company also has Canadian scientific research and development tax credits of $2.0 million (2018 – 1.5 million) that do not expire. The Tax Cuts and Jobs Act ("2018 Tax Act") was enacted in December 2018. The 2018 Tax Act, among other things, reduces the U.S. federal corporate tax rate from 35% to 21%, effective January 1, 2019, 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, 2019 | |
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, 2024: Clinical development The Company has entered into contracts for drug manufacturing and clinical study management and safety related to its Phase II clinical trials for a total of $659,343. Pursuant to the commitment for clinical trial management, the Company has paid a total of $142,568 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, 2020. Office lease The Company currently rents its offices on a month-to-month basis at a rate of $2,844 (CA$3,725) per month. During the year ended June 30, 2019, the Company recorded $52,926 as rent expense (2018 - $58,434). |
Supplementary Statement of Cash
Supplementary Statement of Cash Flows Information | 12 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplementary statement of cash flows information | 9 Supplementary statement of cash flows information Year ended June 30, Year ended Series B Preferred Stock common stock dividend (note 5) 80,431 176,236 Non-cash issue costs (note 5) 52,899 148,087 Issue costs in accounts payable (note 5) 64,432 - Reclassification of derivative liability to equity (note 4) 492,884 - Conversion of Series B Preferred Stock to common stock (note 5) 1,447,576 - Income taxes paid - - Interest paid - - |
Financial Risk Management
Financial Risk Management | 12 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Financial risk management | 10 Financial risk management Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company's income or valuation of its financial instruments. The Company is exposed to financial risk related to fluctuation of foreign exchange rates. Foreign currency risk is limited to the portion of the Company's business transactions denominated in currencies other than the United Sates dollar, primarily general and administrative expenses incurred in Canadian dollars. The Company believes that the results of operations, financial position and cash flows would be affected by a sudden change in foreign exchange rates but would not impair or enhance its ability to pay its Canadian dollar accounts payable. The Company manages foreign exchange risk by converting its US$ to CA$ as needed. The Company maintains the majority of its cash in US$. As at June 30, 2019, Canadian dollar denominated accounts payable and accrued liabilities exposure in US$ totaled $178,327. 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 $13,865. Balances in foreign currencies at June 30, 2019 and 2018 are as follows: June 30, June 30, Trade payables 201,279 79,858 Cash 24,248 41,459 Interest, taxes, and other receivables 26,099 14,618 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, 2019, cash and cash equivalents held by the Company were $3,718,758. 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, 2019 and is undertaking efforts to conserve cash resources wherever possible. The maximum exposure of the Company's liquidity risk is $2,069,725 as at June 30, 2019. 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 $26,187 at June 30, 2019 relating to interest, taxes, and other receivables. The credit risk related to uninsured cash and cash equivalents balances is $3,718,758 at June 30, 2019. Cash and Insured Non-insured 3,718,758 75,158 3,643,600 Concentration of credit risk Financial instruments that subject the Company to credit risk consist primarily of cash and cash equivalents. The Company places its cash and cash equivalents in accredited financial institutions and therefore the Company's management believes these funds are subject to minimal credit risk. The Company has no significant off-balance sheet concentrations of credit risk such as foreign currency exchange contracts, option contracts or other hedging arrangements. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent events | 11 Subsequent events Underwritten public offering On August 16, 2019, the Company closed on the sale of (i) 4,895,000 shares of its common stock, par value $0.001 per share (the " Common Stock Offering The net proceeds from the Offering, including from the partial exercise of the underwriters' option to purchase additional securities, were approximately $6.7 million, after deducting underwriting discounts and commissions and other estimated offering expenses payable by us. The 2020 Investor Warrants are exercisable at $1.00 per share and the PFW are exercisable at $0.01 per share until their expiries on August 16, 2024. The Company also issued 377,500 warrants to the underwriters of the Offering. The underwriter warrants are exercisable at $1.15 per share commencing February 10, 2020 until their expiry on August 14, 2022. The Company granted the underwriters a 45-day option, ending September 28, 2019, to purchase up to an additional 1,012,500 shares of Common Stock and/or 2020 Investor Warrants to purchase up to 1,012,500 shares of Common Stock, at the public offering price less discounts and commissions. On August 15, 2019, the underwriters partially exercised this option by purchasing 800,000 shares of Common Stock and 2020 Investor Warrants to purchase an aggregate of 1,012,500 shares of Common Stock. Subsequent to the closing of the Offering, all of the 2,655,000 PFW were exercised at $0.01 per PFW for proceeds of $26,550. 2017 Plan changes and stock option grants Subsequent to June 30, 2019, and subject to approval by the Company's stockholders, the Company's board of directors approved an increase in the number of shares of common stock available to be issued under the 2017 Plan by 1,500,000. The increase brings the total number of shares available under the 2017 Plan to 2,280,000. As of June 30, 2019, the available number of shares of common stock under the 2017 Plan was 491,817. The Company also granted 1,041,016 stock options to officers and directors of the Company. Of this total, 491,817 were granted under the existing 2017 Plan limit and 549,199 will be exercisable subject to approval by the Company's stockholders of the share increase. All stock options have an exercise price of $0.61and expire on September 5, 2029. Of the 1,041,016 stock options granted, 375,000 vest pro rata monthly over one year from the date of grant and 666,016 vest as to one-sixth on the six month anniversary of the grant date with the remaining five-sixths vesting pro rate monthly over 30 months commencing on the seven month anniversary of the grant date. Share issuances Subsequent to June 30, 2019, we have issued 688 shares for services and 25,000 shares of Series B Preferred stock were converted into 6,250 shares of common stock. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Reverse Stock Split | 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. |
Basis of presentation | 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 | 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, 2019 and 2018. Intercompany balances and transactions have been eliminated on consolidation. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions about future events that affect the reported amounts of assets, liabilities, expenses, contingent assets and contingent liabilities as at the end of, or during, the reporting period. Actual results could significantly differ from those estimates. Significant areas requiring management to make estimates include the derivative liabilities, 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 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, 2019 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 liabilities. 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 liabilities 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, or contain a repricing feature under certain conditions. 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 liabilities 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 liabilities. The carrying value of the derivative liabilities 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, 2019 Liability Level 1 Level 2 Level 3 Derivative liabilities - - - June 30, 2018 Liability Level 1 Level 2 Level 3 Derivative liabilities - - 1,117 |
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, 2019, the total capitalized cost was $79,910 (2018 - $79,910) and the Company has recognized $16,349 and $24,528, respectively, in amortization expense during the years ended June 30, 2019 and 2018. 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 below. 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, 2019 and 2018, 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 expense 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. |
Loss per share | Loss per share Income or loss per share is calculated based on the weighted average number of common shares outstanding. For the years ended June 30, 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 at June 30, 2019, potential common shares of 1,831,779 (2018 – 1,690,810) related to outstanding warrants and stock options, nil (2018 – 120,000) relating to performance stock units, and 168,427 (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. |
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. |
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 the Company’s 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 the Company’s 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 issued certain share purchase warrants in the quarter ended June 30, 2019 that contained a down round feature. The Company has accounted for these warrants as a derivative liability and has recognized $432,386 as a change in the fair value of the derivative liability in the consolidated statement of operations and comprehensive loss for the year ended June 30, 2019. In addition, $126,186 has been recognized as derivative issue costs. Upon expiry of the down round feature on June 28, 2019, $492,884 was reclassified from derivative liability to additional paid in capital. Had the Company adopted ASU 2017-11 for the year ended June 30, 2019, these warrants would not have been accounted for as a derivative liability. 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 adoption of ASU 2016-02 is not expected to have a material impact on the Company’s results of operations or financial position. 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 adoption of ASU 2018-07 is not expected to have a material impact on the Company’s results of operations or financial position. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of derivative liabilities under the fair value hierarchy | June 30, 2019 Liability Level 1 Level 2 Level 3 Derivative liabilities - - - June 30, 2018 Liability Level 1 Level 2 Level 3 Derivative liabilities - - 1,117 |
Derivative Liabilities (Tables)
Derivative Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Summary of derivative liabilities | Years ended June 30, 2019 2018 $ $ Opening balance 1,117 61,228 Issuance of 2019 Investor Warrants 925,270 - Change in fair value of warrants (433,503 ) (60,111 ) Reclassification of 2019 Investor Warrants to equity 492,884 - Closing balance - 1,117 Less current portion - - Long-term portion - 1,117 |
Warrant [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Summary of derivative liabilities | Year ended June 30, 2019 Number of warrants $ 2015 Agent warrants 2,180 - Closing balance 2,180 - Less current portion - - Long-term portion 2,180 - Year ended June 30, 2018 Number of warrants $ Warrants issued for services 4,375 - 2015 Agent warrants 2,180 1,117 Closing balance 6,555 1,117 Less current portion - - Long-term portion 6,555 1,117 |
Stockholders' Equity (Deficie_2
Stockholders' Equity (Deficiency) (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Class of Stock [Line Items] | |
Schedule of stock-based compensation expense | Years ended June 30, 2019 $ 2018 $ Research and development 74,667 140,870 General and administrative 351,362 355,055 426,029 495,925 |
Summary of unvested stock options | Number of Weighted Weighted 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 Granted 30,000 6.10 2.56 Vested (83,170 ) 14.51 7.65 Unvested at June 30, 2019 84,990 11.35 5.82 |
Schedule of warrants | Number of Amount Balance – June 30, 2017 360,475 4,570,574 Issuance of 2018 Investor and 2018 Agent Warrants (i) 840,000 3,572,843 Exercise of 2018 Investor Warrants (i) (25,000 ) (106,335 ) Warrants issued for services (ii) 42,000 192,400 Balance – June 30, 2018 1,217,475 8,229,482 Exercise and exchange of 2018 Investor Warrants (iii) (495,000 ) (2,210,697 ) Issuance of 2019 Investor Warrants (note 4) 760,500 492,884 Issuance of 2019 Agent Warrants (iv) 46,800 52,899 Warrants issued for services (ii) 14,000 23,715 Balance – June 30, 2019 1,543,775 6,588,283 i) 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. ii) Warrants issued for services are exercisable at various prices and expire at the various dates noted in the table below. iii) 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 $69,835, 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. iv) As part of the financing completed by the Company on June 5, 2019, the Company issued the 2019 Agent Warrants. Commencing December 3, 2019, the 2018 Agent Warrants are exercisable at $3.875 until June 3, 2024. |
Summary of changes in outstanding warrants | Description Number Balance – June 30, 2018 1,428,128 Issuance of 2019 Investor Warrants 760,500 Issuance of 2019 Agent Warrants 46,800 Exercise of 2018 Investor Warrants for cash (197,500 ) Cashless exchange of 2018 Investor Warrants (297,500 ) Warrants issued for services 14,000 Expiry of warrants (210,832 ) Balance – June 30, 2019 1,543,596 |
Summary of outstanding warrants | Description Number Exercise Expiry date 2019 Investor 760,500 3.10 June 5, 2024 2018 Investor 280,000 12.50 September 22, 2022 2017 Investor 207,721 35.00 April 19, 2022 2015 Investor 97,905 30.00 July 31, 2020 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 2019 Agent 46,800 3.875 June 3, 2024 2018 Agent 40,000 12.50 September 20, 2022 2017 Agent 13,848 40.60 April 12, 2022 2016 Agent 10,402 40.00 May 12, 2021 2015 Agent 2,180 30.00 July 15, 2020 1,543,596 12.60 |
Performance Stock Units [Member] | |
Class of Stock [Line Items] | |
Schedule of outstanding under the legacy plan | Number of Balance – June 30, 2017 - Granted 140,000 Forfeited (20,000 ) Balance – June 30, 2018 120,000 Cancelled (120,000 ) Balance – June 30, 2019 - |
Schedule of valuation assumptions using a Black-Scholes pricing model | 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 |
Employee Stock Option [Member] | |
Class of Stock [Line Items] | |
Schedule of outstanding under the legacy plan | Number of Weighted 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 Granted 30,000 6.10 Expired (4,500 ) 28.37 Balance – June 30, 2019 288,183 22.31 |
Summary of stock options currently outstanding and exercisable | Exercise price $ Number Weighted Number 6.10 30,000 9.36 13,610 7.00 5,451 8.98 1,817 8.70 12,000 8.34 12,000 9.83 83,647 8.89 30,206 10.60 3,600 8.79 1,500 11.70 30,000 3.66 30,000 15.27 2,500 2.92 2,500 20.00 13,125 2.27 13,125 21.10 14,400 8.02 8,400 29.60 4,500 5.60 4,500 37.60 4,500 6.61 4,500 40.00 1,250 0.25 1,250 41.00 4,000 7.36 3,486 42.00 41,250 3.56 41,250 44.80 3,000 6.61 3,000 49.50 22,460 5.07 19,549 53.20 8,000 6.85 8,000 61.60 1,500 3.75 1,500 92.00 3,000 3.92 3,000 288,183 203,193 |
Schedule of valuation assumptions using a Black-Scholes pricing model | June 30, June 30, Dividend rate 0 % 0 % Volatility 70.6% to 101.5 % 72.4 to 87.1 % Risk-free rate 1.62% to 3.17 % 1.49% to 2.86 % Term – 0.1 to 3.0 0.6 to 3.03 |
Current and Deferred Income T_2
Current and Deferred Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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 10,823,529 9,416,047 Capital losses carried forward 17,925 17,925 Financing costs - 5,512 Scientific research and development 534,398 396,758 Scientific research and development - ITC 484,135 354,411 11,859,987 10,190,653 Deferred tax liabilities: Scientific research and development – ITC (81,386 ) (61,230 ) 11,778,601 10,129,423 Valuation allowance (11,778,601 ) (10,129,423 ) 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 (1,690,126 ) (3,063,036 ) Permanent differences (527,532 ) 290,722 Effect of rate differentials between jurisdictions (429,531 ) 76,364 Impact of changes in income tax rates - 138,516 Scientific research and development – ITC (39,807 ) (354,411 ) Other 106,320 75,422 Change in valuation allowance 2,580,676 2,836,423 - - |
Supplementary Statement of Ca_2
Supplementary Statement of Cash Flows Information (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of supplementary statement of cash flows information | Year ended June 30, Year ended Series B Preferred Stock common stock dividend (note 5) 80,431 176,236 Non-cash issue costs (note 5) 52,899 148,087 Issue costs in accounts payable (note 5) 64,432 - Reclassification of derivative liability to equity (note 4) 492,884 - Conversion of Series B Preferred Stock to common stock (note 5) 1,447,576 - Income taxes paid - - Interest paid - - |
Financial Risk Management (Tabl
Financial Risk Management (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Schedule of balances in foreign currencies | June 30, June 30, Trade payables 201,279 79,858 Cash 24,248 41,459 Interest, taxes, and other receivables 26,099 14,618 |
Schedule of fair value of off-balance sheet risks | Cash and Insured Non-insured 3,718,758 75,158 3,643,600 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - USD ($) | Jun. 30, 2019 | Jun. 28, 2019 | Jun. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liability | $ 492,884 | ||
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 2 [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 |
Significant Accounting Polici_5
Significant Accounting Policies (Details Textual) - USD ($) | May 08, 2019 | May 07, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 28, 2019 |
Significant Accounting Policies (Textual) | |||||
Reverse stock split, description | Pursuant to the Company effecting a 1-for-10 (1:10) reverse stock split of its common stock. | 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. | |||
Equity note stock split, description | 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. | ||||
Capitalized cost | $ 79,910 | $ 79,910 | |||
Amortization expense | 16,349 | 24,528 | |||
Change in the fair value of the derivative liability | 432,386 | ||||
Derivative issue costs | $ 126,186 | ||||
Derivative liability | $ 492,884 | ||||
Warrant [Member] | |||||
Significant Accounting Policies (Textual) | |||||
Anti-dilutive warrants, stock options, performance stock units, and convertible preferred shares related to outstanding | 1,831,779 | 1,690,810 | |||
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 | 168,427 | 220,279 | |||
Stock options [Member] | |||||
Significant Accounting Policies (Textual) | |||||
Anti-dilutive warrants, stock options, performance stock units, and convertible preferred shares related to outstanding | 120,000 |
Valent Technologies LLC Agree_2
Valent Technologies LLC Agreements (Details) - USD ($) | Sep. 30, 2014 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2016 |
Valent Technologies LLC Agreements (Textual) | ||||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||
Dividend payable | $ 8,356 | $ 8,356 | ||
Series A Preferred Stock [Member] | ||||
Valent Technologies LLC Agreements (Textual) | ||||
Preferred stock, shares issued | 278,530 | 278,530 | ||
Preferred stock, rate of dividend | 3.00% | |||
Series B Preferred Stock [Member] | ||||
Valent Technologies LLC Agreements (Textual) | ||||
Preferred stock, shares issued | 673,613 | 881,113 | ||
Preferred stock, rate of dividend | 9.00% | |||
Valent Technologies Llc [Member] | ||||
Valent Technologies LLC Agreements (Textual) | ||||
Loan payable outstanding amount | $ 278,530 | |||
Aggregate accrued interest | $ 28,530 | |||
Dividend payable | $ 8,356 | $ 8,356 | ||
Valent Technologies Llc [Member] | Series A Preferred Stock [Member] | ||||
Valent Technologies LLC Agreements (Textual) | ||||
Preferred stock, shares issued | 278,530 | |||
Preferred stock, par value | $ 1 |
Derivative Liabilities (Details
Derivative Liabilities (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Opening balance | $ 1,117 | $ 61,228 |
Change in fair value of warrants | 925,270 | |
Reclassification to equity upon amendment of warrants | (433,503) | (60,111) |
Reclassification to equity upon exercise of warrants | 492,884 | |
Closing balance | 1,117 | |
Less current portion | ||
Long-term portion | $ 1,117 |
Derivative Liabilities (Detai_2
Derivative Liabilities (Details 1) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Number of warrants, 2015 Agent warrants, shares | 2,180 | 2,180 | |
Number of warrants, Warrants issued for services, shares | 4,375 | ||
Number of warrants, Closing balance, shares | 2,180 | 6,555 | |
Number of warrants, Less current portion, shares | |||
Number of warrants, Long-term portion, shares | 2,180 | 6,555 | |
Warrants issued for services, value | |||
2015 Agent warrants, value | 1,117 | ||
Closing balance | 1,117 | $ 61,228 | |
Less current portion | |||
Long-term portion | $ 1,117 |
Derivative Liabilities (Detai_3
Derivative Liabilities (Details Textual) - USD ($) | Jun. 05, 2019 | Mar. 31, 2013 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 28, 2019 |
Derivative Liability (Textual) | |||||
Net proceeds from the exercise of warrants | $ 720,165 | $ 312,500 | |||
Derivative liability | $ 492,884 | ||||
2013 Investor Warrants [Member] | |||||
Derivative Liability (Textual) | |||||
Number of warrants exercised | 328,125 | ||||
Purchase price | $ 32 | ||||
Gross proceeds from exercise of warrants | $ 10,500,000 | ||||
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. | ||||
2019 Investor Warrants [Member] | |||||
Derivative Liability (Textual) | |||||
Number of warrants exercised | 760,500 | ||||
Purchase price | $ 3.10 | ||||
Warrants expiration date | Jun. 5, 2024 | ||||
Derivative liability | $ 492,884 | ||||
2015 Agent Warrants [Member] | |||||
Derivative Liability (Textual) | |||||
Exercised price | $ 30 | ||||
Number of warrants issued | 2,180 | ||||
Warrants expiration date | Jul. 15, 2020 | ||||
Derivative liability | $ 29,594 |
Stockholders' Equity (Deficie_3
Stockholders' Equity (Deficiency) (Details) - shares | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Number of PSUs outstanding | ||
Granted | 152,698 | 30,000 |
Performance Stock Units [Member] | ||
Number of PSUs outstanding | ||
Beginning balance | 120,000 | |
Granted | 140,000 | |
Forfeited | (20,000) | |
Cancelled | (120,000) | |
Ending balance | 120,000 |
Stockholders' Equity (Deficie_4
Stockholders' Equity (Deficiency) (Details 1) - Performance Stock Units [Member] | 12 Months Ended |
Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Dividend rate | 0.00% |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility | 79.00% |
Risk-free rate | 2.56% |
Term - years | 1 year 8 months 2 days |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility | 82.50% |
Risk-free rate | 2.71% |
Term - years | 3 years 2 months 27 days |
Stockholders' Equity (Deficie_5
Stockholders' Equity (Deficiency) (Details 2) - $ / shares | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Number of stock options outstanding | ||
Granted | 152,698 | 30,000 |
Employee Stock Option [Member] | ||
Number of stock options outstanding | ||
Beginning balance | 262,683 | 112,085 |
Granted | 30,000 | 152,698 |
Forfeited | (2,100) | |
Expired | (4,500) | |
Ending balance | 288,183 | 262,683 |
Weighted average exercise price | ||
Beginning balance | $ 24.27 | $ 41.81 |
Granted | 6.10 | 11.35 |
Forfeited | 21.10 | |
Expired | 28.37 | |
Ending balance | $ 22.31 | $ 24.27 |
Stockholders' Equity (Deficie_6
Stockholders' Equity (Deficiency) (Details 3) - Employee Stock Option [Member] - $ / shares | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock options outstanding | 288,183 | 262,683 | 112,085 |
Number exercisable | 203,193 | ||
Exercise Price [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 6.10 | ||
Number of stock options outstanding | 30,000 | ||
Weighted average remaining contractual life (years) | 9 years 4 months 9 days | ||
Number exercisable | 13,610 | ||
Exercise Price One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 7 | ||
Number of stock options outstanding | 5,451 | ||
Weighted average remaining contractual life (years) | 8 years 11 months 23 days | ||
Number exercisable | 1,817 | ||
Exercise Price Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 8.70 | ||
Number of stock options outstanding | 12,000 | ||
Weighted average remaining contractual life (years) | 8 years 4 months 2 days | ||
Number exercisable | 12,000 | ||
Exercise Price Three [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 9.83 | ||
Number of stock options outstanding | 83,647 | ||
Weighted average remaining contractual life (years) | 8 years 10 months 21 days | ||
Number exercisable | 30,206 | ||
Exercise Price Four [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 10.60 | ||
Number of stock options outstanding | 3,600 | ||
Weighted average remaining contractual life (years) | 8 years 9 months 14 days | ||
Number exercisable | 1,500 | ||
Exercise Price Five [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 11.70 | ||
Number of stock options outstanding | 30,000 | ||
Weighted average remaining contractual life (years) | 3 years 7 months 28 days | ||
Number exercisable | 30,000 | ||
Exercise Price Six [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 15.27 | ||
Number of stock options outstanding | 2,500 | ||
Weighted average remaining contractual life (years) | 2 years 11 months 1 day | ||
Number exercisable | 2,500 | ||
Exercise Price Seven [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 20 | ||
Number of stock options outstanding | 13,125 | ||
Weighted average remaining contractual life (years) | 2 years 3 months 8 days | ||
Number exercisable | 13,125 | ||
Exercise Price Eight [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 21.10 | ||
Number of stock options outstanding | 14,400 | ||
Weighted average remaining contractual life (years) | 8 years 7 days | ||
Number exercisable | 8,400 | ||
Exercise Price Nine [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 29.60 | ||
Number of stock options outstanding | 4,500 | ||
Weighted average remaining contractual life (years) | 5 years 7 months 6 days | ||
Number exercisable | 4,500 | ||
Exercise Price Ten [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 37.60 | ||
Number of stock options outstanding | 4,500 | ||
Weighted average remaining contractual life (years) | 6 years 7 months 10 days | ||
Number exercisable | 4,500 | ||
Exercise Price Eleven [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 40 | ||
Number of stock options outstanding | 1,250 | ||
Weighted average remaining contractual life (years) | 2 months 30 days | ||
Number exercisable | 1,250 | ||
Exercise Price Twelve [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 41 | ||
Number of stock options outstanding | 4,000 | ||
Weighted average remaining contractual life (years) | 7 years 4 months 9 days | ||
Number exercisable | 3,486 | ||
Exercise Price Thirteen [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 42 | ||
Number of stock options outstanding | 41,250 | ||
Weighted average remaining contractual life (years) | 3 years 6 months 21 days | ||
Number exercisable | 41,250 | ||
Exercise Price Fourteen [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 44.80 | ||
Number of stock options outstanding | 3,000 | ||
Weighted average remaining contractual life (years) | 6 years 7 months 10 days | ||
Number exercisable | 3,000 | ||
Exercise Price Fifteen [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 49.50 | ||
Number of stock options outstanding | 22,460 | ||
Weighted average remaining contractual life (years) | 5 years 26 days | ||
Number exercisable | 19,549 | ||
Exercise Price Sixteen [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 53.20 | ||
Number of stock options outstanding | 8,000 | ||
Weighted average remaining contractual life (years) | 6 years 10 months 6 days | ||
Number exercisable | 8,000 | ||
Exercise Price Seventeen [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 61.60 | ||
Number of stock options outstanding | 1,500 | ||
Weighted average remaining contractual life (years) | 3 years 9 months | ||
Number exercisable | 1,500 | ||
Exercise Price Eighteen [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 92 | ||
Number of stock options outstanding | 3,000 | ||
Weighted average remaining contractual life (years) | 3 years 11 months 1 day | ||
Number exercisable | 3,000 |
Stockholders' Equity (Deficie_7
Stockholders' Equity (Deficiency) (Details 4) - Employee Stock Option [Member] | 12 Months Ended | |
Jun. 30, 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 | 70.60% | 87.10% |
Risk-free rate | 1.62% | 2.86% |
Term - years | 1 month 6 days | 3 years 11 days |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility | 101.50% | 72.40% |
Risk-free rate | 3.17% | 1.49% |
Term - years | 3 years | 7 months 6 days |
Stockholders' Equity (Deficie_8
Stockholders' Equity (Deficiency) (Details 5) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 426,029 | $ 495,925 |
Research and development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 74,667 | 355,055 |
General and administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 351,362 | $ 140,870 |
Stockholders' Equity (Deficie_9
Stockholders' Equity (Deficiency) (Details 6) - $ / shares | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Number of Options | ||
Number of options unvested, Beginning balance | 84,990 | 138,160 |
Number of options unvested, Granted | 152,698 | 30,000 |
Number of options unvested, Vested | (44,241) | (83,170) |
Number of options unvested, Forfeited | (2,100) | |
Number of options unvested, Ending balance | 138,160 | 84,990 |
Weighted Average Exercise Price | ||
Weighted average exercise price unvested, Beginning balance | $ 48.09 | $ 14.39 |
Weighted average exercise price unvested, Granted | 11.35 | 6.10 |
Weighted average exercise price unvested, Vested | 27.81 | 14.51 |
Weighted average exercise price unvested, Forfeited | 21.10 | |
Weighted average exercise price unvested, Ending balance | 14.39 | 48.09 |
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value, unvested, Beginning balance | 25.74 | 7.63 |
Weighted average grant date fair value, unvested, Granted | 6.01 | 2.56 |
Weighted average grant date fair value, unvested, Vested | 15.02 | 7.65 |
Weighted average grant date fair value, unvested, Forfeited | 11.32 | |
Weighted average grant date fair value, unvested, Ending balance | $ 7.63 | $ 25.74 |
Stockholders' Equity (Defici_10
Stockholders' Equity (Deficiency) (Details 7) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Number of Warrants | |||
Beginning Balance | 1,217,475 | 360,475 | |
Exercise and exchange of 2018 Investor Warrants | [1] | (495,000) | |
Issuance of 2019 Investor Warrants (note 4) | 760,500 | ||
Issuance of 2019 Agent Warrants | [2] | 46,800 | |
Issuance of 2018 Investor and 2018 Agent Warrants | [3] | 840,000 | |
Exercise of 2018 Investor Warrants | [3] | (25,000) | |
Ending Balance | 1,543,775 | 1,217,475 | |
Value of Warrants | |||
Beginning Balance | $ 8,229,482 | $ 4,570,574 | |
Exercise and exchange of 2018 Investor Warrants | [1] | (2,210,697) | |
Issuance of 2019 Investor Warrants (note 4) | 492,884 | ||
Issuance of 2019 Agent Warrants | [2] | 52,899 | |
Issuance of 2018 Investor and 2018 Agent Warrants | [3] | 3,572,843 | |
Exercise of 2018 Investor Warrants | [3] | (106,335) | |
Warrants issued for services | [4] | 23,715 | 192,400 |
Ending Balance | $ 6,588,283 | $ 8,229,482 | |
[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 $69,835, 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. | ||
[2] | As part of the financing completed by the Company on June 5, 2019, the Company issued the 2019 Agent Warrants. Commencing December 3, 2019, the 2018 Agent Warrants are exercisable at $3.875 until June 3, 2024. | ||
[3] | 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. | ||
[4] | Warrants issued for services are exercisable at various prices and expire at the various dates noted in the table below. |
Stockholders' Equity (Defici_11
Stockholders' Equity (Deficiency) (Details 8) - Warrant [Member] | 12 Months Ended |
Jun. 30, 2019shares | |
Summary of changes in outstanding warrants | |
Balance - June 30, 2018 | 1,428,128 |
Issuance of 2019 Investor Warrants | 760,500 |
Issuance of 2019 Agent Warrants | 46,800 |
Exercise of 2018 Investor Warrants for cash | (197,500) |
Cashless exchange of 2018 Investor Warrants | (297,500) |
Warrants issued for services | 14,000 |
Expiry of warrants | (210,832) |
Balance - June 30, 2019 | 1,543,596 |
Stockholders' Equity (Defici_12
Stockholders' Equity (Deficiency) (Details 9) - Warrants [Member] - $ / shares | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number | 1,543,596 | 1,428,128 |
Exercise price | $ 12.60 | |
Issued for services [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number | 26,500 | |
Exercise price | $ 30 | |
Issued for services [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiry date | Jul. 1, 2020 | |
Issued for services [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiry date | Feb. 1, 2021 | |
Issued for services one [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number | 6,000 | |
Exercise price | $ 17.80 | |
Expiry date | Jan. 25, 2023 | |
Issued for services two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number | 33,600 | |
Exercise price | $ 11.70 | |
Expiry date | Feb. 27, 2023 | |
Issued for services three [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number | 12,000 | |
Exercise price | $ 9 | |
Expiry date | Sep. 15, 2023 | |
Issued for services four [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number | 4,140 | |
Exercise price | $ 59.30 | |
Expiry date | Feb. 27, 2020 | |
Issued For Services Five [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number | 2,000 | |
Exercise price | $ 9 | |
Expiry date | Oct. 11, 2021 | |
2019 Investor [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number | 760,500 | |
Exercise price | $ 3.10 | |
Expiry date | Jun. 5, 2024 | |
2018 Investor [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number | 280,000 | |
Exercise price | $ 12.50 | |
Expiry date | Sep. 22, 2022 | |
2017 Investor [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number | 207,721 | |
Exercise price | $ 35 | |
Expiry date | Apr. 19, 2022 | |
2015 Investor [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number | 97,905 | |
Exercise price | $ 30 | |
Expiry date | Jul. 31, 2020 | |
2019 Agent [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number | 46,800 | |
Exercise price | $ 3.875 | |
Expiry date | Jun. 3, 2024 | |
2018 Agent [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number | 40,000 | |
Exercise price | $ 12.50 | |
Expiry date | Sep. 20, 2022 | |
2017 Agent [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number | 13,848 | |
Exercise price | $ 40.60 | |
Expiry date | Apr. 12, 2022 | |
2016 Agent [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number | 10,402 | |
Exercise price | $ 40 | |
Expiry date | May 12, 2021 | |
2015 Agent [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number | 2,180 | |
Exercise price | $ 30 | |
Expiry date | Jul. 15, 2020 |
Stockholders' Equity (Defici_13
Stockholders' Equity (Deficiency) (Details Textual) - USD ($) | May 08, 2019 | May 07, 2019 | Sep. 30, 2014 | Dec. 31, 2014 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2016 | Jun. 26, 2019 |
Stockholders' equity (deficiency) (Textual) | ||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||||||
Preferred stock special voting shares issued | 1 | 1 | ||||||
Common stock, shares authorized | 95,000,000 | 7,000,000 | ||||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||||
Common stock, shares issued (in shares) | 3,839,358 | 2,296,667 | ||||||
Common stock, shares outstanding | 7,813 | 91,276 | ||||||
Convertible preferred stock | 207,500 | 0 | ||||||
Series B preferred stock dividend | ||||||||
Issue of shares | 2,433 | |||||||
Reverse stock split, description | Pursuant to the Company effecting a 1-for-10 (1:10) reverse stock split of its common stock. | 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. | ||||||
Series A Preferred Stock [Member] | ||||||||
Stockholders' equity (deficiency) (Textual) | ||||||||
Preferred stock, shares issued | 278,530 | 278,530 | ||||||
Preferred stock, shares outstanding | 278,530 | 278,530 | ||||||
Preferred stock, rate of dividend | 3.00% | |||||||
Series A Preferred Stock [Member] | Exchange Agreement [Member] | ||||||||
Stockholders' equity (deficiency) (Textual) | ||||||||
Preferred stock, par value | $ 1 | |||||||
Preferred stock, shares issued | 278,530 | |||||||
Preferred stock, rate of dividend | 3.00% | |||||||
Series B Preferred Stock [Member] | ||||||||
Stockholders' equity (deficiency) (Textual) | ||||||||
Preferred stock, shares issued | 673,613 | 881,113 | ||||||
Preferred stock, shares outstanding | 673,613 | 881,113 | ||||||
Preferred stock, rate of dividend | 9.00% | |||||||
Purchase price of shares | $ 80 | |||||||
Convertible preferred stock | 0.25 | |||||||
Conversion price | $ 32 | |||||||
Conversion of series B preferred stock to common stock, shares | 168,427 | 220,279 | ||||||
Issue of shares | 902,238 | |||||||
Bid price | $ 8 | |||||||
Final closing date | 5 years | |||||||
Common Stock [Member] | ||||||||
Stockholders' equity (deficiency) (Textual) | ||||||||
Series B preferred stock dividend | $ 18 | $ 20 | ||||||
Series B preferred stock dividend, shares | 18,271 | 19,841 | ||||||
Conversion of series B preferred stock to common stock, shares | 51,876 | 0 | ||||||
Common Stock [Member] | Minimum [Member] | ||||||||
Stockholders' equity (deficiency) (Textual) | ||||||||
Common stock, shares authorized | 7,000,000 | |||||||
Common Stock [Member] | Maximum [Member] | ||||||||
Stockholders' equity (deficiency) (Textual) | ||||||||
Common stock, shares authorized | 95,000,000 |
Stockholders' Equity (Defici_14
Stockholders' Equity (Deficiency) (Details Textual 1) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 05, 2019 | Sep. 22, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stockholders' equity (deficiency) (Textual) | ||||
Common stock, par value | $ 0.001 | $ 0.001 | ||
Issuance of cash | $ 126,186 | |||
Shares issued for services | $ 13,777 | $ 8,582 | ||
Common Stock [Member] | ||||
Stockholders' equity (deficiency) (Textual) | ||||
Issuance of shares and warrants - net of issue costs, shares | 1,170,000 | 800,000 | ||
Shares issued for services, shares | 3,444 | 863 | ||
Shares issued for services | $ 3 | $ 1 | ||
2019 Registered Offering [Member] | ||||
Stockholders' equity (deficiency) (Textual) | ||||
Issuance of shares and warrants - net of issue costs, shares | 1,170,000 | |||
Sale of stock, description | Under the Company's engagement agreement with the placement agent, the Company paid $290,160 in cash commission and other fees to the placement agent and issued warrants to purchase 46,800 shares of common stock to the placement agent (the "2019 Agent Warrants"). Commencing December 3, 2019, the 2019 Agent Warrants are exercisable at $3.875 per share until June 3, 2024. | |||
Exercise price | $ 3.10 | |||
Gross proceeds of cash | $ 3,600,000 | |||
Common stock, par value | $ 3.10 | |||
Additional warrants purchase | 760,500 | |||
Issuance of cash | $ 151,585 | |||
Net proceeds of cash | $ 3,185,255 | |||
Warrant term | 5 years | |||
2018 Registered Offering [Member] | ||||
Stockholders' equity (deficiency) (Textual) | ||||
Issuance of shares and warrants - net of issue costs, shares | 8,000,000 | |||
Sale of stock, description | 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. | |||
Exercise price | $ 1.25 | |||
Gross proceeds of cash | $ 10,000,000 | |||
Common stock, par value | $ 12.50 | |||
Additional warrants purchase | 8,000,000 | |||
Issuance of cash | $ 254,664 | |||
Net proceeds of cash | $ 8,945,336 | |||
Warrant term | 5 years |
Stockholders' Equity (Defici_15
Stockholders' Equity (Deficiency) (Details Textual 2) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jun. 26, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stockholders' equity (deficiency) (Textual) | |||
Common stock, shares issued | 3,839,358 | 2,296,667 | |
Performance stock units [Member] | |||
Stockholders' equity (deficiency) (Textual) | |||
Recognized expense related to the PSUs | $ 526,141 | ||
Expense related to the PSU's | 322,877 | $ 48,624 | |
Unrecognized compensation expense | $ 526,140 | ||
2017 Omnibus Incentive Plan [Member] | |||
Stockholders' equity (deficiency) (Textual) | |||
Common stock, shares issued | 780,000 | ||
Shares issued for services, shares | 165,485 | ||
Percentage of fully diluted shares of common stock | 8.00% | ||
Legacy plan, description | The Company's board of directors temporarily reduced the number of shares of common stock that could be issued under the Company's 2017 Plan to 14,217 shares of common stock meaning that as of June 30, 2019, rather than the full number of 491,817, only 14,217 shares of common stock were available for issuance under the 2017 Plan. Subsequent to June 30, 2019, the reserve under the 2017 Plan was increased by the board of directors back to a potential 491,817 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. | 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 leaving a potential 491,817 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. |
Stockholders' Equity (Defici_16
Stockholders' Equity (Deficiency) (Details Textual 3) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stockholders' equity (deficiency) (Textual) | |||
Stock option recognized as additional paid in capital | $ 426,029 | $ 495,925 | |
Warrant [Member] | |||
Stockholders' equity (deficiency) (Textual) | |||
Stock option recognized as additional paid in capital | |||
Warrant, description | i) 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. | ||
Former President And Chief Operating Officer [Member] | |||
Stockholders' equity (deficiency) (Textual) | |||
Stock option modification, description | A total of 6,670 options had their vesting accelerated such that they became fully vested on December 22, 2018, 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. | ||
Former Chairman [Member] | |||
Stockholders' equity (deficiency) (Textual) | |||
Stock option modification, description | A total of 1,500 options had their vesting accelerated such that they became fully vested on June 2, 2019, 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 options [Member] | |||
Stockholders' equity (deficiency) (Textual) | |||
Number of stock options outstanding | 288,183 | 262,683 | 112,085 |
Stock option recognized as additional paid in capital | $ 495,925 | ||
Aggregate intrinsic value of stock options outstanding | 0 | $ 0 | |
Aggregate intrinsic value of stock options exercisable | $ 0 | $ 0 | |
Weighted average contractual term | 8 years 9 months 11 days | 8 years 9 months 22 days | |
Aggregate intrinsic value of unvested stock options | $ 0 | $ 0 | |
Unrecognized compensation expense | $ 164,329 | ||
Unrecognized compensation expense, term | 2 years 4 months 24 days | ||
Stock options [Member] | CA$ $20.00 Exercise Price [Member] | |||
Stockholders' equity (deficiency) (Textual) | |||
Number of stock options outstanding | 2,500 | ||
Stock options [Member] | $15.27 US$ Exercise Price [Member] | |||
Stockholders' equity (deficiency) (Textual) | |||
Number of stock options outstanding | 2,500 |
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, 2019 | Jun. 30, 2018 |
Deferred tax assets: | ||
Non-capital losses carried forward | $ 10,823,529 | $ 9,416,047 |
Capital losses carried forward | 17,925 | 17,925 |
Financing costs | 5,512 | |
Scientific research and development | 534,398 | 396,758 |
Scientific research and development - ITC | 484,135 | 354,411 |
Deferred tax assets | 11,859,987 | 10,190,653 |
Deferred tax liabilities: | ||
Scientific research and development - ITC | (81,386) | (61,230) |
Gross future tax assets | 11,778,601 | 10,129,423 |
Valuation allowance | (11,778,601) | (10,129,423) |
Net future tax assets |
Current and Deferred Income T_4
Current and Deferred Income Taxes (Details 1) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Effective income tax rate differs from the statutory income tax rate | ||
Tax recovery at statutory income tax rates | $ (1,690,126) | $ (3,063,036) |
Permanent differences | (527,532) | 290,722 |
Effect of rate differentials between jurisdictions | (429,531) | 76,364 |
Impact of changes in income tax rates | 138,516 | |
Scientific research and development - ITC | (39,807) | (354,411) |
Other | 106,320 | 75,422 |
Change in valuation allowance | 2,580,676 | 2,836,423 |
Income tax expense benefit |
Current and Deferred Income T_5
Current and Deferred Income Taxes (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Current and Future Income Taxes (Textual) | |||
Investment tax credits expire, description | Expire between 2029 and 2039. | ||
Statutory income tax rate | 21.00% | 21.00% | |
Revalued deferred tax assets | $ 138,516 | ||
U.S. federal corporate tax rate | 21.00% | ||
US and Canadian [Member] | |||
Current and Future Income Taxes (Textual) | |||
Operating loss carryforwards | $ 43,200,000 | $ 34,700,000 | |
Net operating loss expire, description | Expiring in 2029. | ||
British Columbia [Member] | |||
Current and Future Income Taxes (Textual) | |||
Non-refundable federal investment tax credits | $ 166,000 | 127,633 | |
Investment tax credits expire, description | Expire between 2019 and 2029. | ||
Canadian scientific research and development [Member] | |||
Current and Future Income Taxes (Textual) | |||
Non-refundable federal investment tax credits | $ 2,000,000 | 1,500,000 | |
Canadian [Member] | |||
Current and Future Income Taxes (Textual) | |||
Non-refundable federal investment tax credits | $ 303,969 | $ 226,778 | |
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) | 12 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2019CAD ($) | Jun. 30, 2018USD ($) | |
Commitments and Contingencies (Textual) | |||
Manufacturing and clinical study management related cost | $ 659,343 | ||
Deposits related to study initiation | 142,568 | ||
Lease rent for office space | 2,844 | ||
Rent expense | $ 52,926 | $ 58,434 | |
CAD [Member] | |||
Commitments and Contingencies (Textual) | |||
Lease rent for office space | $ 3,725 |
Supplementary Statement of Ca_3
Supplementary Statement of Cash Flows Information (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Supplemental Cash Flow Information [Abstract] | ||
Series B Preferred Stock common stock dividend (note 5) | $ 80,431 | $ 176,236 |
Non-cash issue costs (note 5) | 52,899 | 148,087 |
Issue costs in accounts payable (note 5) | 64,432 | |
Reclassification of derivative liability to equity (note 4) | 492,884 | |
Conversion of Series B Preferred Stock to common stock (note 5) | 1,447,576 | |
Income taxes paid | ||
Interest paid |
Financial Risk Management (Deta
Financial Risk Management (Details) - Foreign exchange risk [Member] - CAD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Foreign exchange risk on currencies | ||
Trade payables | $ 201,279 | $ 79,858 |
Cash | 24,248 | 41,459 |
Interest, taxes, and other receivables | $ 26,099 | $ 14,618 |
Financial Risk Management (De_2
Financial Risk Management (Details 1) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Risks and Uncertainties [Abstract] | |||
Cash and cash equivalents | $ 3,718,758 | $ 5,971,995 | $ 6,586,014 |
Insured amount | 75,158 | ||
Non-insured amount | $ 3,643,600 |
Financial Risk Management (De_3
Financial Risk Management (Details Textual) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Financial Risk Management (Textual) | |||
Cash and cash equivalents | $ 3,718,758 | $ 5,971,995 | $ 6,586,014 |
Credit risk, financial instrument maximum exposure | 26,187 | ||
Foreign exchange risk [Member] | |||
Financial Risk Management (Textual) | |||
Financial risk, accounts payable and accrued liabilities | $ 178,327 | ||
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 $13,865. | ||
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 | $ 2,069,725 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Aug. 15, 2019 | Sep. 28, 2019 | Aug. 16, 2019 | Jun. 30, 2019 |
Subsequent Events (Textual) | ||||
Shares issued of common stock for services | 688 | |||
Series B Preferred Stock [Member] | ||||
Subsequent Events (Textual) | ||||
Shares issued of common stock for services | 25,000 | |||
Shares of common stock converted | 6,250 | |||
Subsequent Event [Member[ | ||||
Subsequent Events (Textual) | ||||
Underwritten public offering, description | The Company closed on the sale of (i) 4,895,000 shares of its common stock, par value $0.001 per share (the "Common Stock"), (ii) pre-funded warrants ("PFW") to purchase an aggregate of 2,655,000 shares of Common Stock and (iii) common warrants to purchase an aggregate of 7,762,500 shares of Common Stock ("2020 Investor Warrants"), including 800,000 shares of Common Stock and 2020 Investor Warrants to purchase an aggregate of 1,012,500 shares of Common Stock sold pursuant to a partial exercise by the underwriters of the underwriters' option to purchase additional securities, in the Company's underwritten public offering (the "Offering"). Each share of Common Stock or PFW, as applicable, was sold together with a 2020 Investor Warrant to purchase one share of Common Stock at a combined effective price to the public of $1.00 per share of Common Stock and accompanying 2020 Investor Warrant. | |||
Warrants exercisable, description | The 2020 Investor Warrants are exercisable at $1.00 per share and the PFW are exercisable at $0.01 per share until their expiries on August 16, 2024. The Company also issued 377,500 warrants to the underwriters of the Offering. The underwriter warrants are exercisable at $1.15 per share commencing February 10, 2020 until their expiry on August 14, 2022. | |||
Warrants to purchase common stock | 800,000 | |||
Net proceeds from offering | $ 6,700,000 | |||
Subsequent Event [Member[ | Investor Warrant [Member] | ||||
Subsequent Events (Textual) | ||||
Warrants to purchase common stock | 1,012,500 | 1,012,500 | ||
Subsequent Event [Member[ | Pre-Funded Warrants [Member] | ||||
Subsequent Events (Textual) | ||||
Net proceeds from offering | $ 26,550 | |||
Warrants exercised | 2,655,000 | |||
Warrants exercise price | $ 0.01 | |||
2017 Plan changes [Member] | ||||
Subsequent Events (Textual) | ||||
Shares of common stock available for issuance | 491,817 | |||
Increase of common stock available for issuance | 1,500,000 | |||
Total number of common stock available | 2,280,000 | |||
Description of stock option grants | The Company also granted 1,041,016 stock options to officers and directors of the Company. Of this total, 491,817 were granted under the existing 2017 Plan limit and 549,199 will be exercisable subject to approval by the Company's stockholders of the share increase. All stock options have an exercise price of $0.61and expire on September 5, 2029. Of the 1,041,016 stock options granted, 375,000 vest pro rata monthly over one year from the date of grant and 666,016 vest as to one-sixth on the six month anniversary of the grant date with the remaining five-sixths vesting pro rate monthly over 30 months commencing on the seven month anniversary of the grant date. |