Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Sep. 15, 2020 | Dec. 31, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | KTRA | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Entity Registrant Name | Kintara Therapeutics, Inc. | ||
Entity Central Index Key | 0001498382 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 7.7 | ||
Entity Common Stock, Shares Outstanding | 23,543,892 | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Incorporation, State or Country Code | NV | ||
Entity File Number | 001-37823 | ||
Entity Tax Identification Number | 99-0360497 | ||
Entity Address, Address Line One | 12707 High Bluff Dr | ||
Entity Address, Address Line Two | Suite 200 | ||
Entity Address, City or Town | San Diego | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92130 | ||
City Area Code | 858 | ||
Local Phone Number | 350-4364 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | None |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Current assets | ||
Cash and cash equivalents | $ 2,392,402 | $ 3,718,758 |
Prepaid expenses and deposits | 355,580 | 280,248 |
Interest, taxes and other receivables | 9,401 | 26,187 |
Deferred loan costs | 93,701 | |
Current assets | 2,851,084 | 4,025,193 |
Intangible assets - net | 2,109 | 12,062 |
Deferred financing costs | 84,944 | |
Total assets | 2,938,137 | 4,037,255 |
Current liabilities | ||
Accounts payable and accrued liabilities | 2,011,058 | 1,744,517 |
Related party payables | 663,865 | 325,208 |
Total liabilities | 2,674,923 | 2,069,725 |
Stockholders’ equity | ||
Zero special voting shares at June 30, 2020 (June 30, 2019 – 1) | 0 | 0 |
Common stock Authorized 95,000,000 shares at June 30, 2020 and June 30, 2019, $0.001 par value 11,457,928 issued at June 30, 2020 (June 30, 2019 – 3,839,358) | 11,458 | 3,839 |
Additional paid-in capital | 56,624,048 | 50,954,741 |
Warrants | 8,524,336 | 6,588,283 |
Accumulated deficit | (69,721,233) | (60,578,345) |
Accumulated other comprehensive income | 21,178 | 21,178 |
Total stockholders’ equity | 263,214 | 1,967,530 |
Total liabilities and stockholders’ equity | 2,938,137 | 4,037,255 |
Preferred Stock Series A | ||
Stockholders’ equity | ||
Preferred stock | 278,530 | 278,530 |
Preferred Stock Series B | ||
Stockholders’ equity | ||
Preferred stock | 4,524,897 | 4,699,304 |
Total stockholders’ equity | $ 4,524,897 | $ 4,699,304 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Jun. 30, 2019 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock special voting shares issued | 0 | 1 |
Common stock, shares authorized | 95,000,000 | 95,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 11,457,928 | 3,839,358 |
Preferred Stock Series A | ||
Preferred Stock, shares issued | 278,530 | 278,530 |
Preferred stock, shares outstanding | 278,530 | 278,530 |
Preferred Stock Series B | ||
Preferred Stock, shares issued | 648,613 | 673,613 |
Preferred stock, shares outstanding | 648,613 | 673,613 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Expenses | ||
Research and development | $ 3,630,024 | $ 3,662,056 |
General and administrative | 4,514,520 | 4,736,440 |
Merger costs | 1,053,697 | |
Operating expenses | 9,198,241 | 8,398,496 |
Other (income) loss | ||
Change in fair value of derivative liabilities | (433,503) | |
Derivative liability issue costs | 126,186 | |
Foreign exchange loss | 2,923 | 17,746 |
Interest income | (75,248) | (60,704) |
Other loss (income) | (72,325) | (350,275) |
Net loss for the year | 9,125,916 | 8,048,221 |
Computation of basic loss per share | ||
Net loss for the year | 9,125,916 | 8,048,221 |
Series B Preferred stock dividend | 8,616 | 80,431 |
Net loss for the year attributable to common stockholders | $ 9,134,532 | $ 8,128,652 |
Basic and fully diluted loss per share | $ 0.87 | $ 3.16 |
Basic and fully diluted weighted average number of shares | 10,444,045 | 2,574,692 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive income | Preferred stock | Warrants | Accumulated deficit |
Beginning Balance at Jun. 30, 2018 | $ 5,435,223 | $ 2,297 | $ 43,198,193 | $ 21,178 | $ 6,425,410 | $ 8,229,482 | $ (52,441,337) |
Beginning Balance, shares at Jun. 30, 2018 | 2,296,667 | ||||||
Issuance of shares and warrants - net of issue costs | 2,386,171 | $ 1,170 | 2,332,102 | 52,899 | |||
Issuance of shares and warrants - net of issue costs, shares | 1,170,000 | ||||||
Exercise and exchange of warrants | 720,165 | $ 297 | 2,930,565 | (2,210,697) | |||
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 | 13,777 | $ 3 | 13,774 | ||||
Shares issued for services, shares | 3,444 | ||||||
Warrants issued for services | 23,715 | 23,715 | |||||
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 | 1,967,530 | $ 3,839 | 50,954,741 | 21,178 | 4,977,834 | 6,588,283 | (60,578,345) |
Ending Balance, shares at Jun. 30, 2019 | 3,839,358 | ||||||
Issuance of shares and warrants - net of issue costs | 6,582,966 | $ 4,895 | 2,489,251 | 4,088,820 | |||
Issuance of shares and warrants - net of issue costs, shares | 4,895,000 | ||||||
Exercise of pre-funded warrants for cash | 26,550 | $ 2,655 | 2,421,830 | (2,397,935) | |||
Exercise of pre-funded warrants for cash, shares | 2,655,000 | ||||||
Exercise of warrants for cash | 25,000 | $ 25 | 37,113 | (12,138) | |||
Exercise of warrants for cash, shares | 25,000 | ||||||
Conversion of Series B preferred stock to common stock | $ 6 | 174,401 | (174,407) | ||||
Conversion of Series B preferred stock to common stock, shares | 6,250 | ||||||
Shares issued for services | 13,396 | $ 23 | 13,373 | ||||
Shares issued for services, shares | 22,520 | ||||||
Warrants issued for services | 287,183 | 287,183 | |||||
Warrants expired | 29,877 | (29,877) | |||||
Stock option expense | 494,861 | 494,861 | |||||
Series A preferred cash dividend | (8,356) | (8,356) | |||||
Series B preferred stock dividend | $ 15 | 8,601 | (8,616) | ||||
Series B preferred stock dividend, shares | 14,800 | ||||||
Loss for the year | (9,125,916) | (9,125,916) | |||||
Ending Balance at Jun. 30, 2020 | $ 263,214 | $ 11,458 | $ 56,624,048 | $ 21,178 | $ 4,803,427 | $ 8,524,336 | $ (69,721,233) |
Ending Balance, shares at Jun. 30, 2020 | 11,457,928 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities | ||
Loss for the year | $ (9,125,916) | $ (8,048,221) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Non-cash derivative issue costs | 13,495 | |
Amortization of intangible assets | 9,953 | 16,349 |
Change in fair value of derivative liabilities | (433,503) | |
Shares issued for services | 13,396 | 13,777 |
Warrants issued for services | 193,482 | 23,715 |
Stock option expense | 494,861 | 426,029 |
Performance stock unit expense | 526,141 | |
Changes in operating assets and liabilities | ||
Prepaid expenses and deposits | (75,332) | 754,682 |
Interest, taxes and other receivables | 16,786 | 13,332 |
Accounts payable and accrued liabilities | 206,597 | 202,000 |
Related party payables | 338,657 | 164,779 |
Net cash used in operating activities | (7,927,516) | (6,327,425) |
Cash flows from financing activities | ||
Net proceeds from the issuance of shares and warrants | 6,582,966 | 3,362,379 |
Net proceeds from the exercise and exchange of warrants | 51,550 | 720,165 |
Series A preferred stock dividend | (8,356) | (8,356) |
Deferred financing costs | (25,000) | |
Net cash provided by financing activities | 6,601,160 | 4,074,188 |
Decrease in cash and cash equivalents | (1,326,356) | (2,253,237) |
Cash and cash equivalents – beginning of year | 3,718,758 | 5,971,995 |
Cash and cash equivalents – end of year | $ 2,392,402 | $ 3,718,758 |
Nature of Operations, Corporate
Nature of Operations, Corporate History, and Liquidity Risk | 12 Months Ended |
Jun. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of operations, corporate history, and liquidity risk | 1 Nature of operations, corporate history, and liquidity risk Nature of operations Kintara Therapeutics, Inc. (formerly DelMar Pharmaceuticals, Inc.) (the “Company”) is a clinical stage drug development company with a focus on the development of novel cancer therapies for patients with unmet medical needs. The Company is developing two late-stage, Phase 3-ready therapeutics - VAL-083 for glioblastoma multiforme and REM-001 for cutaneous metastatic breast cancer. In order to accelerate the Company’s development timelines, it leverages existing preclinical and clinical data from a wide range of sources. The Company may seek marketing partnerships in order to potentially offset clinical costs and to generate future royalty revenue from approved indications of its product candidates. Corporate history The Company is a Nevada corporation formed on June 24, 2009 under the name Berry Only, Inc. On January 25, 2013, the Company entered into and closed an exchange agreement (the “Exchange Agreement”), with Del Mar Pharmaceuticals (BC) Ltd. (“Del Mar (BC)”), 0959454 B.C. Ltd. (“Callco”), and 0959456 B.C. Ltd. (“Exchangeco”) and the security holders of Del Mar (BC). Upon completion of the Exchange Agreement, Del Mar (BC) became a wholly-owned subsidiary of the Company (the “Reverse Acquisition”). On August 19, 2020 the Company completed its merger with Adgero Biopharmaceuticals Holdings, Inc. (“Adgero”). In conjunction with the Adgero merger, the Company changed its name to Kintara Therapeutics, Inc. Kintara Therapeutics, Inc. is the parent company of Del Mar (BC), a British Columbia, Canada corporation and Adgero, a Delaware corporation, which are clinical stage companies 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. In connection with the merger, the Company also became the parent company of Adgero Biopharmaceuticals, Inc., formerly a wholly-owned subsidiary of Adgero. References to the Company refer to the Company and its wholly-owned subsidiaries. Liquidity risk and management plans These consolidated financial statements have been prepared on a going concern basis which assumes that 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, 2020, the Company reported a loss of $9,125,916, and a negative cash flow from operations of $7,927,516. The Company had an accumulated deficit of $69,721,233 as of June 30, 2020. As of June 30, 2020, the Company has cash and cash equivalents on hand of $2,392,402. The Company is in the clinical 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 candidates are 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 development programs 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, 2020, the Company completed a private placement in three closings for gross proceeds of approximately $25 million, or net proceeds of approximately $21.7 million (note 11). The Company believes that based on its current estimates, the cash on hand at June 30, 2020 of $2,392,402 and the proceeds from the private placement, will be sufficient to fund its planned operations beyond the next year 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. However, the coronavirus (“COVID-19”) pandemic has created significant economic uncertainty and volatility in the credit and capital markets. The ultimate impact of the COVID-19 pandemic on the Company’s ability to raise additional capital in the future is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the COVID-19 outbreak and any new information which may emerge concerning the severity of the COVID-19 pandemic. These financial statements do not give effect to any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern. Such adjustments could be material. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2020 | |
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. Amended articles of incorporation On June 26, 2019, the Company amended its articles of incorporation to increase the number of authorized shares of common stock from 7,000,000 to 95,000,000 shares. Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) and are presented in United States dollars. The functional currency of the Company and each of its subsidiaries is the United States dollar. The 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 include the accounts of the Company and its wholly-owned subsidiaries, Del Mar BC, Callco, and Exchangeco as of and for the years ended June 30, 2020 and 2019. 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 fair value of 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. Foreign currency translation The functional currency of the Company at June 30, 2020 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. 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 for the period. Income taxes The Company uses the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. To the extent that deferred tax assets cannot be recognized under the preceding criteria, the Company establishes valuation allowances, as necessary, to reduce deferred tax assets to the amounts expected to be realized. As of June 30, 2020, and 2019, all deferred tax assets were fully offset by a valuation allowance. The realization of deferred tax assets is dependent upon future federal, state and foreign taxable income. The Company’s judgments regarding deferred tax assets may change due to future market conditions, as the Company expands into international jurisdictions, due to changes in U.S. or international tax laws and other factors. These changes, if any, may require material adjustments to the Company’s deferred tax assets, resulting in a reduction in net income or an increase in net loss in the period in which such determinations are made. The Company recognizes the impact of uncertain tax positions based upon a two-step process. To the extent that a tax position does not meet a more-likely-than-not level of certainty, no impact is recognized in the consolidated financial statements. If a tax position meets the more-likely-than-not level of certainty, it is recognized in the consolidated financial statements at the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company’s policy is to analyze the Company’s tax positions taken with respect to all applicable income tax issues for all open tax years in each respective jurisdiction. Interest and penalties with respect to uncertain tax positions would be included in income tax expense. As of June 30, 2020, the Company concluded that there were no uncertain tax provisions required to be recognized in its consolidated financial statements. The Company does not record U.S. income taxes on the undistributed earnings of its foreign subsidiaries based upon the Company’s intention to permanently reinvest undistributed earnings to ensure sufficient working capital and further expansion of existing operations outside the United States. As June 30, 2020, the Company’s foreign subsidiaries operated at a cumulative deficit for U.S. earnings and profit purposes. In the event the Company is required to repatriate funds from outside of the United States, such repatriation would be subject to local laws, customs, and tax consequences. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable. 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. As of June 30, 2020, and 2019, the Company had certain derivative liabilities under the fair value hierarchy but their fair value was zero. The Company’s financial instruments consist of cash and cash equivalents, prepaid expenses, 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. 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 each reporting period. This is considered to be a Level 3 financial instrument as volatility is considered a Level 3 input. 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, 2020, the total capitalized cost was $79,910 (2019 - $79,910) and the Company has recognized $9,953 and $16,349, respectively, in amortization expense during the years ended June 30, 2020 and 2019. 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. Accruals for research and development expenses and clinical trials As part of the process of preparing its financial statements, the Company is required to estimate its expenses resulting from its obligations under contracts with vendors, clinical research organizations and consultants, and under clinical site agreements in connection with conducting clinical trials. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment terms that do not match the periods over which materials or services are provided under such contracts. The Company’s objective is to reflect the appropriate expenses in its financial statements by matching those expenses with the period in which services are performed and efforts are expended. The Company accounts for these expenses according to the timing of various aspects of the expenses. The Company determines accrual estimates by taking into account discussion with applicable personnel and outside service providers as to the progress of clinical trials, or the services completed. During the course of a clinical trial, the Company adjusts its clinical expense recognition if actual results differ from its estimates. The Company makes estimates of its accrued expenses as of each balance sheet date based on the facts and circumstances known to it at that time. The Company’s clinical trial accruals are dependent upon the timely and accurate reporting of contract research organizations and other third-party vendors. Although the Company does not expect its estimates to be materially different from amounts actually incurred, its understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in it reporting amounts that are too high or too low for any particular period. For the years ended June 30, 2020 and 2019, there were no material adjustments to the Company’s prior period estimates of accrued expenses for clinical trials. Warrants and shares issued 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 issued. Stock options The Company recognizes compensation costs resulting from the issuance of stock-based awards to employees, non-employees and directors as an expense in the statement of operations over the service period based on a measurement of fair value for each stock-based award. Prior to the Company’s adoption of ASU 2018-07, Compensation-Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting For the year ended June 30, 2019, the determination of grant-date fair value for stock option awards was 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. For the year ended June 30, 2020, the Company utilized the plain vanilla method to determine the expected life of stock options. 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 (PSUs) 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 PSUs is based on a number of factors, the determination of the grant-date fair value for PSUs 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. 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, 2020 and 2019 diluted loss per share does not differ from basic loss per share since the effect of the Company’s warrants, stock options, performance stock units, and convertible preferred shares is anti-dilutive. As of June 30, 2020, potential common shares of 10,309,456 (2019 – 1,543,596) related to outstanding warrants, 1,559,199 (2019 – 288,183) related to stock options, and 162,177 (2019 – 168,427) relating to outstanding Series B convertible preferred shares were excluded from the calculation of net loss per common share. 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 Update (“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, 2019, 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 early adoption of ASU 2016-02 did not have a material impact on the Company’s consolidated financial statements. ASU 2018-07 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, 2018. The adoption of ASU 2018-07 did not have a material impact on the Company’s consolidated financial statements. Not yet adopted ASU 2018-13 — Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement The amendments in this update are designed to improve the effectiveness of disclosures by removing, modifying and adding disclosures related to fair value measurements and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company has not yet evaluated the impact of adoption of this ASU on its consolidated financial statements and related disclosures. ASU 2018-18 — Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 The amendments in this update are intended to clarify the interaction between the accounting guidance for collaborative arrangements and revenue from contracts with customers. ASU 2018-18 is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. The Company has not yet evaluated the impact of adoption of this ASU on its consolidated financial statements and related disclosures. ASU 2019-12 — Income Taxes (Topic 740) The amendments in this update are intended to simplify the accounting for income taxes by eliminating certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. Adoption of ASU 2019-12 requires certain changes to be made prospectively and other changes to be made retrospectively. The Company has not yet evaluated the impact of adoption of this ASU on its consolidated financial statements and related disclosures. During the year ended June 30, 2020, other than ASU’s 2018-13, 2018-18 and 2019-12 there have been no new, or existing recently issued, accounting pronouncements that are of significance, or potential significance, that impact the Company’s consolidated financial statements. |
Deferred Costs
Deferred Costs | 12 Months Ended |
Jun. 30, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Deferred costs | 1 Deferred costs The Company has incurred the following deferred costs at June 30, 2020. There were no deferred costs at June 30, 2019. Description June 30, 2020 $ Deferred financing costs (note 11) 84,944 Deferred loan costs (i) 93,701 Balance - June 30, 2020 178,645 Short-term (93,701 ) Long-term 84,944 (i) Deferred loan costs include 125,000 share purchase warrants issued in respect of a loan issued to the Company by National Brain Tumor Society (“NBTS”) and the National Foundation for Cancer Research (“NFCR”) valued at $93,701 (“NBTS Warrants”) (Note 11). The NBTS Warrants are exercisable at a price of $1.09 per common share until June 19, 2025. The NBTS Warrants were valued on a Black-Scholes valuation with a risk-free interest rate of 0.37%, term of 5 years, volatility of 89.82% and a dividend rate of 0%. The estimated volatility of the Company’s common stock at the date of measurement 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 instrument at the valuation date. The expected term has been estimated using the remaining life of the warrant. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related party transactions | 4 Related party transactions 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, 2020 and 2019 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. Related party payables At June 30, 2020 there is an aggregate amount of $663,865 (2019 - $325,208) payable to the Company’s officers and directors for fees, expenses, and accrued liabilities. |
Derivative Liabilities
Derivative Liabilities | 12 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Liabilities | 5 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. The estimated volatility of the Company’s common stock at the date of measurement 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 instrument at the valuation date. The expected life of the instrument has been estimated using the contractual life of the instrument. 2019 Investor Warrants As part of the Company’s registered direct offering completed June 5, 2019 (note 6) 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 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 and expired unexercised subsequent to June 30, 2020 (note 11). The Company’s derivative liabilities are summarized as follows: Opening balance – June 30, 2018 1,117 Issuance of 2019 Investor Warrants 925,270 Change in fair value of warrants (433,503 ) Reclassification of 2019 Investor Warrants to equity (492,884 ) Closing balance – June 30, 2019, and 2020 — At June 30, 2020, and 2019, the derivative liabilities consist of 2,180 2015 Agent warrants to purchase 2,180 shares of common stock. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 6 Stockholders’ equity Preferred stock Series B Preferred stock Series B Preferred Stock Number of shares $ Balance – June 30, 2018 881,113 6,146,880 Conversion of Series B Preferred stock to common stock (207,500 ) (1,447,576 ) Balance – June 30, 2019 673,613 4,699,304 Conversion of Series B Preferred stock to common stock (25,000 ) (174,407 ) Balance – June 30, 2020 648,613 4,524,897 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 $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 respective final closing dates. 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 September 30, December 31, March 31, and June 30 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. The Series B Preferred Stock shall with respect to distributions of assets and rights upon the occurrence of a liquidation, rank (i) senior to the Company’s common stock and (ii) senior to the Special Voting Preferred Stock and (iii) senior to any other class or series of capital stock of the Company hereafter created which does not expressly rank pari passu with, or senior to, the Series B Preferred Stock. The Series B Preferred Stock shall be pari passu in liquidation to the Company’s Series A Preferred Stock. The liquidation value of the Series B Preferred Stock at June 30, 2020 is the stated value of $5,188,904. 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, 2020, the Company issued 14,800 (2019 – 18,271) shares of common stock and recognized $8,616 (2019 – $80,431) as a direct increase in accumulated deficit. During the year ended June 30, 2020, a total of 25,000 (2019 – 207,500) shares of Series B Preferred Stock were converted for an aggregate 6,250 (2019 – 51,876) shares of common stock. A total of 648,613 (2019 – 673,613) shares of Series B Preferred Stock are outstanding as of June 30, 2020, such that a total of 162,177 (2019 – 168,427) shares of common stock are issuable upon conversion of the Series B Preferred Stock as at June 30, 2020. Converted shares are rounded up to the nearest whole share. Series A Preferred Stock Effective September 30, 2014, 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. The Series A Preferred Stock is held by Valent (note 4). The Series A Preferred Stock shall with respect to distributions of assets and rights upon the occurrence of a liquidation, rank (i) senior to the Company’s common stock, and (ii) senior to the Company’s Special Voting Preferred Stock and (iii) senior to any other class or series of capital stock of the Company hereafter created which does not expressly rank pari passu with, or senior to, the Series A Preferred Stock. The Series A Preferred Stock shall be pari passu in liquidation to the Company’s Series B Preferred Stock. The liquidation value of the Series A Preferred stock at June 30, 2020 of $278,530. There was no change to the Series A Preferred stock for the years ended June 30, 2020 or 2019. Special voting share 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 was automatically cancelled during the year ended June 30, 2020 when the last Exchangeco share was exchanged for shares of Common Stock. Common stock Stock Issuances Year ended June 30, 2020 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”), (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. The net proceeds from the Offering, including from the partial exercise of the underwriters’ option to purchase additional securities, were $6,582,966, after deducting underwriting discounts and commissions, and other offering expenses. The 2020 Investor Warrants are exercisable at $1.00 per share until their expiry on August 16, 2024 and the PFW are exercisable at $0.01 per share at any time after August 16, 2019. 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. During the year ended June 30, 2020, all of the 2,655,000 PFW were exercised at $0.01 per PFW for proceeds of $26,550. Year ended June 30, 2019 Public offering financing 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. Shares issued for services During the year ended June 30, 2020, the Company issued 22,520 (2019 – 3,444) shares of common stock for services resulting in the recognition of $13,396 (2019 – $13,777) in expense. All of the shares issued for services for the years ended June 30, 2020 and 2019 have been recognized as research and development expense. 2017 Omnibus Incentive Plan As subsequently approved by the Company’s stockholders at an annual meeting of stockholders on April 11, 2018, the Company’s board of directors has 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, 2,280,000 shares of Company common stock are currently 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 164,235 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 1,394,964 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 720,801 shares of common stock available at June 30, 2020 for issuance under the 2017 Plan if all such options under the Legacy Plan were exercised. 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. During the year ended June 30, 2020, the Company granted 1,041,016 stock options to officers and directors of the Company. Of the total stock options granted, 491,817 were granted under the previous 2017 Plan limit and 549,199 were granted subject to approval by the Company’s stockholders of the 2017 Plan share reserve increase. All of the stock options granted to officers and directors have an exercise price of $0.61 and 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. On June 26, 2020, the Company’s stockholders approved the increase in the number of shares available under the 2017 Plan to 2,280,000 and the 549,199 stock options were granted In addition, during the year ended June 30, 2020, the Company granted 250,000 stock options to an officer of the Company, that were also approved by the Company’s stockholders on June 26, 2020. The options have an exercise price of $0.735 and expire November 12, 2029. The options vest upon the achievement of certain clinical development milestones. At a special meeting of the Company’s stockholders held on August 14, 2020, the stockholders approved an increase in the total number of shares available under the 2017 Plan to 6,700,000. 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 PSUs. In relation to the PSU cancellation, the Company has recognized the full amount of the expense of the PSUs in the fourth quarter of fiscal 2019. The following table sets forth changes in the PSUs outstanding under the 2017 Plan: Number of PSUs outstanding Balance – June 30, 2018 120,000 Cancelled (120,000 ) Balance – June 30, 2019 and 2020 — The Company has recognized $526,141 (including accelerated expense recognition due to the cancellation of the PSU’s of $322,877) 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. The PSUs were valued using the following assumptions: June 30, 2019 Dividend rate 0 % Volatility 79.0 to 82.5% Risk-free rate 2.56% to 2.71% Term – years 1.67 to 3.24 Stock Options The following table sets forth changes in stock options outstanding under all plans: Number of stock options outstanding Weighted average exercise price Balance – June 30, 2018 262,683 24.27 Granted 30,000 6.10 Forfeited (4,500 ) 28.37 Balance – June 30, 2019 288,183 22.31 Granted 1,291,016 0.63 Forfeited (18,750 ) 0.61 Expired (1,250 ) 40.00 Balance – June 30, 2020 1,559,199 4.61 The following table summarizes stock options outstanding and exercisable under all plans at June 30, 2020: Exercise price $ Number Outstanding at June 30, 2020 Weighted average remaining contractual life (years) Number exercisable at June 30, 2020 0.61 1,022,266 9.18 447,756 0.74 250,000 9.37 — 6.10 30,000 8.36 25,278 7.00 5,451 7.98 3,634 8.70 12,000 7.34 12,000 9.83 83,647 7.89 58,088 10.60 3,600 7.79 2,700 11.70 30,000 2.66 30,000 14.63 2,500 1.92 2,500 20.00 13,125 1.27 13,125 21.10 14,400 7.02 14,400 29.60 4,500 4.60 4,500 37.60 4,500 5.61 4,500 41.00 4,000 6.36 4,000 42.00 41,250 2.56 41,250 44.80 3,000 5.61 3,000 49.50 22,460 4.07 22,460 53.20 8,000 5.85 8,000 61.60 1,500 2.75 1,500 92.00 3,000 2.92 3,000 1,559,199 701,691 Included in the number of stock options outstanding are 2,500 stock options granted at an exercise price of CA$20.00. The exercise price of these options shown in the above table have been converted to US$14.63 using the period ending closing exchange rate. Stock options issued during the years ended June 30, 2020 and 2019 have been valued using a Black-Scholes pricing model with the following assumptions: June 30, 2020 June 30, 2019 Dividend rate — % — % Volatility 89% to 102% 71% to 102% Risk-free rate 0.32% to 1.50% 1.62% to 3.17% Term – years 4.7 to 5.7 0.1 to 3.0 The estimated volatility of the Company’s common stock at the date of issuance of the stock options 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 stock options at the valuation date. The Company has recognized the following amounts as stock option expense for the periods noted: Years ended June 30, 2020 $ 2019 $ Research and development 86,835 74,667 General and administrative 408,026 351,362 494,861 426,029 All of the stock option expense for the periods ended June 30, 2020 and 2019 has been recognized as additional paid in capital. The aggregate intrinsic value of stock options outstanding at June 30, 2020 was $79,554 (2019 - $0) and the aggregate intrinsic value of stock options exercisable at June 30, 2020 was $34,847 (2019 - $0). As of June 30, 2020, there was $177,442 in unrecognized compensation expense that will be recognized over the next 1.5 years. No stock options granted under the Company’s equity plans have been exercised during the year ended June 30, 2020. Upon the exercise of stock options new shares will be issued. The following table sets forth changes in unvested stock options under all plans: Number of options Weighted average exercise price $ Weighted average grant date fair value $ 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 Granted 1,291,016 0.63 0.40 Vested (499,748 ) 1.87 1.12 Forfeited (18,750 ) 0.61 0.49 Unvested at June 30, 2020 857,508 0.98 0.52 The aggregate intrinsic value of unvested stock options at June 30, 2020 was $44,754 (2019 - $0). The unvested stock options have a remaining weighted average contractual term of 9.19 (2019 – 8.78) years. Warrants The following table sets forth changes in outstanding warrants: Number of warrants Amount $ Balance – June 30, 2018 1,217,296 8,229,482 Exercise and exchange of 2018 Investor Warrants (i) (495,000 ) (2,210,697 ) Issuance of 2019 Investor Warrants (note 5) 760,500 492,884 Issuance of 2019 Agent Warrants (iv) 46,800 52,899 Warrants issued for services (iii) 14,000 23,715 Balance – June 30, 2019 1,543,596 6,588,283 Underwritten public offering 10,417,500 3,924,384 Issuance of 2020 Underwriter Warrants 377,500 164,436 Exercise of PFW (2,655,000 ) (2,397,935 ) Exercise of 2020 Investor Warrants (ii) (25,000 ) (12,138 ) Warrants issued for services (iii) 655,000 287,183 Expiry of warrants issued for services (iii) (4,140 ) (29,877 ) Balance – June 30, 2020 10,309,456 8,524,336 i) On November 25, 2018, the Company entered into Warrant Exercise and Exchange Agreements (the “Warrant Exercise Agreements”) with certain holders (the “Exercising Holders”) of the 2018 Investor Warrants. Pursuant to the Warrant Exercise Agreements, in order to induce the Exercising Holders to exercise the 2018 Investor Warrants for cash, the Company agreed to reduce the exercise price from $12.50 to $4.00 per share. Pursuant to the Warrant Exercise Agreements, the Exercising Holders exercised their 2018 Investor Warrants with respect to an aggregate of 197,500 shares of common stock underlying such 2018 Investor Warrants (the “Exercised Shares”). The Company received net proceeds of $720,165, comprising aggregate gross proceeds of $790,000 net of expenses of $69,835, from the exercise of the 2018 Investor Warrants. ii) A total of 25,000 2020 Investor Warrants were exercised at $1.00. iii) Warrants issued for services are exercisable at various prices and expire at the various dates noted in the table below. 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. The following table summarizes the Company’s outstanding warrants as of June 30, 2020: Description of warrants Number Exercise price $ Expiry date 2020 Investor warrants 7,737,500 1.00 August 16, 2024 2019 Investor warrants 760,500 3.10 June 5, 2024 2019 Investor warrants 280,000 12.50 September 22, 2022 2017 Investor warrants 207,721 35.00 April 19, 2022 2015 Investor warrants 97,905 30.00 July 31, 2020 (i) NBTS Warrants 125,000 1.09 June 19, 2025 (ii) Warrants issued for services 250,000 0.64 January 20, 2024 Warrants issued for services 280,000 0.75 November 18, 2023 Warrants issued for services 26,500 30.00 July 1, 2020 to February 1,2021 (iii) Warrants issued for services 6,000 17.80 January 25, 2023 Warrants issued for services 33,600 11.70 February 27, 2023 Warrants issued for services 12,000 9.00 September 15, 2023 Warrants issued for services 2,000 9.00 October 11, 2021 2020 Underwriter Warrants 377,500 1.15 August 14, 2022 2019 Agent warrants 46,800 3.875 June 3, 2024 2019 Agent warrants 40,000 12.50 September 20, 2022 2017 Agent warrants 13,848 40.60 April 12, 2022 2016 Agent warrants 10,402 40.00 May 12, 2021 2015 Agent warrants 2,180 30.00 July 15, 2020 (i) 10,309,456 (i) Expired unexercised subsequent to June 30, 2020. (ii) NBTS Warrants issued with respect to loan proceeds received subsequent to June 30, 2020 (notes 3 and 11). (iii) 1,500 warrants issued for services expired unexercised subsequent to June 30, 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7 Income taxes For the years ended June 30, 2020, and 2019, 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 deferred tax assets and deferred tax liabilities are shown below: June 30, 2020 $ June 30, 2019 $ Deferred tax assets: Non-capital losses carried forward 11,870,922 10,823,529 Capital losses carried forward 17,925 17,925 Financing costs 221,276 — Scientific research and development 604,489 534,398 Scientific research and development – Investment Tax Credits (“ITC”) 534,355 484,135 13,248,967 11,859,987 Deferred tax liabilities: Scientific research and development – ITC (88,929 ) (81,386 ) 13,160,038 11,778,601 Valuation allowance (13,160,038 ) (11,778,601 ) 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% (2019 – 21%). The differences arise from the following items: June 30, 2020 $ June 30, 2019 $ Tax recovery at statutory income tax rates (1,916,442 ) (1,690,126 ) Permanent differences 142,523 (527,532 ) Effect of rate differentials between jurisdictions (239,465 ) (429,531 ) Effect of foreign exchange rates 347,510 - Scientific research and development – ITC (38,252 ) (39,807 ) Other 322,689 106,320 Change in valuation allowance 1,381,437 2,580,676 — — The Company has no current income tax expense for the year ended June 30, 2020, as there was a taxable loss for this period. The components of the Company’s loss before income taxes for the year ended June 30, 2020 were allocated as to $5.2 million in the US and $4.0 million in Canada. As of June 30, 2020, the Company had combined US and Canadian net operating loss carry forwards of $47.8 million (2019 – $43.2 million). The U.S. federal NOL carryforwards consist of $10.5 million generated before July 1, 2018, which begin expiring in 2030, and $6.7 million that can be carried forward indefinitely, but are subject to the 80% taxable income limitation. The Canadian NOL carryforwards of $30.6 million begin expiring in 2030. In addition, the Company has non-refundable Canadian federal investment tax credits of $329,368 (2019 - $303,969) that expire between 2029 and 2040 and non-refundable British Columbia investment tax credits of $204,987 (2019 – $166,000) that expire between 2020 and 2030. The Company also has Canadian scientific research and development tax incentives of $2.2 million (2019 – $2.0 million) that do not expire. We file U.S., U.S. state and Canadian income tax returns with varying statues of limitations. The tax years from 2010 to 2020 remain open to examination due to the carryover of unused NOL carryforwards and tax credits. Internal Revenue Code (“IRC”) Section 382 and 383 places a limitation on the amount of taxable income that can be offset by NOL and credit carryforwards after a change in control (generally greater than 50% change in ownership within a three-year period) of a loss corporation. Generally, after a change in control, a loss corporation cannot deduct NOL and credit carryforwards in excess of the IRC Section 382 and 383 limitation. The limitation in the federal and state NOL and research and development credit carryforwards reduce the deferred tax assets, which are further offset by a full valuation allowance. The limitation can result in the expiration of the NOLs and research and development credit carryforwards available. We have performed an IRC Section 382 and 383 analysis and determined there was an ownership change in 2013. The Company has not performed any section 382 and 383 analysis since 2013. An assessed change in ownership subsequent to 2013 could limit future use of NOL and research and development credit carryforwards. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2020 | |
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, 2025: Clinical development The Company has entered into contracts for drug manufacturing, clinical study management and safety related to its Phase II clinical trials, and a one-year loan (note 11) for a total of $1,419,520. Pursuant to the commitment for clinical trial management, the Company has paid a total of $41,938 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 shared head office on a one-year renewable lease at $189 per month. The Company also rents its administrative offices on a month-to-month basis at a rate of $3,187 (CA$4,357) per month. During the year ended June 30, 2020, the Company recorded a total of $40,130 as rent expense (2019 - $52,926). |
Supplementary Statement of Cash
Supplementary Statement of Cash Flows Information | 12 Months Ended |
Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplementary statement of cash flows information | 9 Supplementary statement of cash flows information Year ended June 30, 2020 Year ended June 30, 2019 Series B Preferred Stock common stock dividend (note 6) 8,616 80,431 Non-cash issue costs (note 6) 182,257 52,899 Issue costs in accounts payable (note 6) — 64,432 Deferred costs in accounts payable (note 3) 59,944 — Warrants issued as deferred costs (notes 3 and 11) 93,701 — Reclassification of derivative liability to equity (note 5) — 492,884 Conversion of Series B Preferred Stock to common stock (note 6) 174,407 1,447,576 Income taxes paid — — Interest paid — — |
Financial Risk Management
Financial Risk Management | 12 Months Ended |
Jun. 30, 2020 | |
Risks And Uncertainties [Abstract] | |
Financial Risk Management | 10 Financial risk management Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or valuation of its financial instruments. The Company is exposed to financial risk related to fluctuation of foreign exchange rates. Foreign currency risk is limited to the portion of the Company’s business transactions denominated in currencies other than the United Sates dollar, primarily general and administrative expenses incurred in Canadian dollars. The Company believes that the results of operations, financial position and cash flows would be affected by a sudden change in foreign exchange rates but would not impair or enhance its ability to pay its Canadian dollar accounts payable. The Company manages foreign exchange risk by converting its US$ to CA$ as needed. The Company maintains the majority of its cash in US$. As at June 30, 2020, Canadian dollar denominated accounts payable and accrued liabilities exposure in US$ totaled $152,347. 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 $17,853. Balances in foreign currencies at June 30, 2020 and 2019 are as follows: June 30, 2020 balances CA$ June 30, 2019 balances CA$ Trade payables 167,499 201,279 Cash 20,981 24,248 Interest, taxes, and other receivables 12,808 26,099 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, 2020, cash and cash equivalents held by the Company were $2,392,402. 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, 2020 and is undertaking efforts to conserve cash resources wherever possible. The maximum exposure of the Company’s liquidity risk is $2,674,923 as at June 30, 2020. 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 $9,401 at June 30, 2020 relating to interest, taxes, and other receivables. The credit risk related to uninsured cash and cash equivalents balances is $2,232,270 at June 30, 2020. Cash and cash equivalents $ Insured amount $ Non- insured amount $ 2,392,402 160,132 2,232,270 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, 2020 | |
Subsequent Events [Abstract] | |
Subsequent events | 11 Subsequent events The Company has evaluated its subsequent events from June 30, 2020 through the date these consolidated financial statements were issued and has determined that there are no subsequent events requiring disclosure in these consolidated financial statements other than the items noted below. Adgero merger On June 9, 2020, the Company, Adgero Acquisition Corp., a wholly-owned subsidiary of the Company (“Merger Sub”), and Adgero, entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) pursuant to which Merger Sub will merge with and into Adgero, with Adgero surviving the merger and becoming a direct, wholly-owned subsidiary of the Company (the “Merger”). Subject to the terms and conditions of the Merger Agreement, at the effective time of the Merger (the “Effective Time”), (i) each outstanding share of Adgero common stock (the “Adgero Common Stock”) (other than any shares held as treasury stock that will be cancelled) was converted into shares of Company common stock (the “Kintara Common Stock”) based on the exchange ratio, (ii) each outstanding warrant to purchase Adgero Common Stock was converted into a warrant exercisable for that number of shares of Kintara Common Stock equal to the product of (x) the aggregate number of shares of Adgero Common Stock for which such warrant was exercisable and (y) the Exchange Ratio (as defined in the Merger Agreement); and (iii) each outstanding Adgero stock option, whether vested or unvested, that had not been exercised was cancelled for no consideration. , the Merger The Exchange Ratio in the Merger Agreement was negotiated so that the existing stockholders of Adgero would own 49.5% of the total voting shares outstanding of the Company and the existing stockholders of the Company would own 50.5% of the total voting shares outstanding of the Company immediately after the merger (less the effect of the payment of cash in lieu of any fraction share of Kintara Common Stock). The final Exchange Ratio determined immediately prior to the Effective Time to reflect the Company’s and Adgero’s capitalization as of immediately prior to such time was 1.574. Upon closing of the Merger, the Company issued 11,439,013 shares of Kintara Common Stock and 2,313,908 stock purchase warrants to the security holders of Adgero. The warrants issued to the Adgero warrant holders are exercisable at $3.18 per share. Upon closing of the Merger, the Company issued 571,951 shares of Kintara Common Stock to the placement agent as a success fee. In connection with the Merger, the Company completed a private placement of Series C Convertible Preferred Stock (the “Series C Stock”) in three separate closings. Each share of Series C Stock was issued at a purchase price of $1,000 per share and is convertible into shares of Kintara Common Stock based on the respective conversion price which was determined at the closing of each round of the private placement. The Series C Stock is entitled to receive dividends, payable in shares of Kintara Common Stock at a rate of 10%, 15%, 20% and 25% of the number of shares of Kintara Common Stock issuable upon conversion of the Series C Stock, on the 12 th th th th As result of the three separate closings of the private placement, the Company issued a total of 25,028 Series C Stock at a purchase price of $1,000 per share for total gross proceeds of approximately $25 million, or net proceeds of approximately $21.7 million. The conversion prices for the Series C-1 Preferred Stock, Series C-2 Preferred Stock and Series C-3 Preferred Stock are $1.16, $1.214 and $1.15, respectively. Based on the conversion prices of the three respective classes of Series C Stock, the 25,028 shares of Series C Stock will be convertible into an aggregate of 21,516,484 shares of Kintara Common Stock. In addition, the Company issued warrants to purchase 2,504 shares of Series C Stock to the placement agent. The Merger is expected to be accounted for as an acquisition of the net assets of Adgero as Adgero does not constitute a business. As at June 30, 2020, the Company had incurred costs of $1,053,697 with respect to the Merger. These costs have been expensed as of June 30, 2020. Loan from National Brain Tumor Society and National Foundation for Cancer Research Subsequent to June 30, 2020, the Company received proceeds of $500,000 from NBTS and NFCR to support VAL-083's preparation for participation in the Global Coalition for Adaptive Research's (“GCAR”) sponsored trial, Glioblastoma (GBM) Adaptive Global Innovative Learning Environment (GBM AGILE) study (“NBTS Loan”). The Company issued 125,000 NBTS Warrants which are exercisable at a price of $1.09 per common share until June 19, 2025 and have been included in deferred financing costs as at June 30, 2020 (note 3). The NBTS Loan is secured by a promissory note, accrues interest at a rate of 6% per annum and matures on June 19, 2021. Warrants Subsequent to June 30, 2020, 363,623 warrants were exercised at $1.00 per share. Stock Options Subsequent to June 30, 2020, a total of 222,887 stock options issued to directors of the Company were amended such that the period to exercise vested stock options from the date of termination with the Company was extended from 90 days to one year. Of the total of 222,887, 66,850 had their expiry increased from September 26, 2020 to June 26, 2021 and 156,037 had their expiry increased from November 19, 2020 to August 19, 2021. In addition, 14,014 stock options were forfeited. On September 15, 2020, a total of 4,698,687 stock options were issued to executive officers and directors of the Company, all with an exercise price of $1.70 per share. Of the total granted, 4,218,687 stock options vest as to 1/6 on March 15, 2021 with the remaining portion of the 4,218,687 vesting in equal monthly installments over a period of 30 months commencing on April 15, 2021. In addition, of the total stock options granted, 480,000 vest in 12 equal monthly installments beginning on October 15, 2020. All of the stock options granted have a 10-year term and are subject to cancellation upon the grantees’ termination of service for the Company, with certain exceptions. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
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. |
Amended Articles of Incorporation | Amended articles of incorporation On June 26, 2019, the Company amended its articles of incorporation to increase the number of authorized shares of common stock from 7,000,000 to 95,000,000 shares. |
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 (“U.S. GAAP”) and are presented in United States dollars. The functional currency of the Company and each of its subsidiaries is the United States dollar. The 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 include the accounts of the Company and its wholly-owned subsidiaries, Del Mar BC, Callco, and Exchangeco as of and for the years ended June 30, 2020 and 2019. 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 fair value of 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. |
Foreign Currency Translation | Foreign currency translation The functional currency of the Company at June 30, 2020 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. 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 for the period. |
Income Taxes | Income taxes The Company uses the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. To the extent that deferred tax assets cannot be recognized under the preceding criteria, the Company establishes valuation allowances, as necessary, to reduce deferred tax assets to the amounts expected to be realized. As of June 30, 2020, and 2019, all deferred tax assets were fully offset by a valuation allowance. The realization of deferred tax assets is dependent upon future federal, state and foreign taxable income. The Company’s judgments regarding deferred tax assets may change due to future market conditions, as the Company expands into international jurisdictions, due to changes in U.S. or international tax laws and other factors. These changes, if any, may require material adjustments to the Company’s deferred tax assets, resulting in a reduction in net income or an increase in net loss in the period in which such determinations are made. The Company recognizes the impact of uncertain tax positions based upon a two-step process. To the extent that a tax position does not meet a more-likely-than-not level of certainty, no impact is recognized in the consolidated financial statements. If a tax position meets the more-likely-than-not level of certainty, it is recognized in the consolidated financial statements at the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company’s policy is to analyze the Company’s tax positions taken with respect to all applicable income tax issues for all open tax years in each respective jurisdiction. Interest and penalties with respect to uncertain tax positions would be included in income tax expense. As of June 30, 2020, the Company concluded that there were no uncertain tax provisions required to be recognized in its consolidated financial statements. The Company does not record U.S. income taxes on the undistributed earnings of its foreign subsidiaries based upon the Company’s intention to permanently reinvest undistributed earnings to ensure sufficient working capital and further expansion of existing operations outside the United States. As June 30, 2020, the Company’s foreign subsidiaries operated at a cumulative deficit for U.S. earnings and profit purposes. In the event the Company is required to repatriate funds from outside of the United States, such repatriation would be subject to local laws, customs, and tax consequences. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable. |
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. As of June 30, 2020, and 2019, the Company had certain derivative liabilities under the fair value hierarchy but their fair value was zero. The Company’s financial instruments consist of cash and cash equivalents, prepaid expenses, 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. 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 each reporting period. This is considered to be a Level 3 financial instrument as volatility is considered a Level 3 input. |
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, 2020, the total capitalized cost was $79,910 (2019 - $79,910) and the Company has recognized $9,953 and $16,349, respectively, in amortization expense during the years ended June 30, 2020 and 2019. 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. |
Accruals for Research and Development Expenses and Clinical Trials | Accruals for research and development expenses and clinical trials As part of the process of preparing its financial statements, the Company is required to estimate its expenses resulting from its obligations under contracts with vendors, clinical research organizations and consultants, and under clinical site agreements in connection with conducting clinical trials. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment terms that do not match the periods over which materials or services are provided under such contracts. The Company’s objective is to reflect the appropriate expenses in its financial statements by matching those expenses with the period in which services are performed and efforts are expended. The Company accounts for these expenses according to the timing of various aspects of the expenses. The Company determines accrual estimates by taking into account discussion with applicable personnel and outside service providers as to the progress of clinical trials, or the services completed. During the course of a clinical trial, the Company adjusts its clinical expense recognition if actual results differ from its estimates. The Company makes estimates of its accrued expenses as of each balance sheet date based on the facts and circumstances known to it at that time. The Company’s clinical trial accruals are dependent upon the timely and accurate reporting of contract research organizations and other third-party vendors. Although the Company does not expect its estimates to be materially different from amounts actually incurred, its understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in it reporting amounts that are too high or too low for any particular period. For the years ended June 30, 2020 and 2019, there were no material adjustments to the Company’s prior period estimates of accrued expenses for clinical trials. |
Warrants and Shares Issued For Services | Warrants and shares issued 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 issued. |
Stock Options | Stock options The Company recognizes compensation costs resulting from the issuance of stock-based awards to employees, non-employees and directors as an expense in the statement of operations over the service period based on a measurement of fair value for each stock-based award. Prior to the Company’s adoption of ASU 2018-07, Compensation-Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting For the year ended June 30, 2019, the determination of grant-date fair value for stock option awards was 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. For the year ended June 30, 2020, the Company utilized the plain vanilla method to determine the expected life of stock options. 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 (PSUs) 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 PSUs is based on a number of factors, the determination of the grant-date fair value for PSUs 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. |
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, 2020 and 2019 diluted loss per share does not differ from basic loss per share since the effect of the Company’s warrants, stock options, performance stock units, and convertible preferred shares is anti-dilutive. As of June 30, 2020, potential common shares of 10,309,456 (2019 – 1,543,596) related to outstanding warrants, 1,559,199 (2019 – 288,183) related to stock options, and 162,177 (2019 – 168,427) relating to outstanding Series B convertible preferred shares were excluded from the calculation of net loss per common share. |
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 Update (“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, 2019, 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 early adoption of ASU 2016-02 did not have a material impact on the Company’s consolidated financial statements. ASU 2018-07 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, 2018. The adoption of ASU 2018-07 did not have a material impact on the Company’s consolidated financial statements. Not yet adopted ASU 2018-13 — Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement The amendments in this update are designed to improve the effectiveness of disclosures by removing, modifying and adding disclosures related to fair value measurements and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company has not yet evaluated the impact of adoption of this ASU on its consolidated financial statements and related disclosures. ASU 2018-18 — Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 The amendments in this update are intended to clarify the interaction between the accounting guidance for collaborative arrangements and revenue from contracts with customers. ASU 2018-18 is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. The Company has not yet evaluated the impact of adoption of this ASU on its consolidated financial statements and related disclosures. ASU 2019-12 — Income Taxes (Topic 740) The amendments in this update are intended to simplify the accounting for income taxes by eliminating certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. Adoption of ASU 2019-12 requires certain changes to be made prospectively and other changes to be made retrospectively. The Company has not yet evaluated the impact of adoption of this ASU on its consolidated financial statements and related disclosures. During the year ended June 30, 2020, other than ASU’s 2018-13, 2018-18 and 2019-12 there have been no new, or existing recently issued, accounting pronouncements that are of significance, or potential significance, that impact the Company’s consolidated financial statements. |
Deferred Costs (Tables)
Deferred Costs (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Summary of Deferred Costs | The Company has incurred the following deferred costs at June 30, 2020. There were no deferred costs at June 30, 2019. Description June 30, 2020 $ Deferred financing costs (note 11) 84,944 Deferred loan costs (i) 93,701 Balance - June 30, 2020 178,645 Short-term (93,701 ) Long-term 84,944 |
Derivative Liabilities (Tables)
Derivative Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Liabilities | The Company’s derivative liabilities are summarized as follows: Opening balance – June 30, 2018 1,117 Issuance of 2019 Investor Warrants 925,270 Change in fair value of warrants (433,503 ) Reclassification of 2019 Investor Warrants to equity (492,884 ) Closing balance – June 30, 2019, and 2020 — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Class Of Stock [Line Items] | |
Schedule of Stock Option Expense | Years ended June 30, 2020 $ 2019 $ Research and development 86,835 74,667 General and administrative 408,026 351,362 494,861 426,029 |
Schedule of Unvested Stock Options | Number of options Weighted average exercise price $ Weighted average grant date fair value $ 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 Granted 1,291,016 0.63 0.40 Vested (499,748 ) 1.87 1.12 Forfeited (18,750 ) 0.61 0.49 Unvested at June 30, 2020 857,508 0.98 0.52 |
Schedule of Warrants | Number of warrants Amount $ Balance – June 30, 2018 1,217,296 8,229,482 Exercise and exchange of 2018 Investor Warrants (i) (495,000 ) (2,210,697 ) Issuance of 2019 Investor Warrants (note 5) 760,500 492,884 Issuance of 2019 Agent Warrants (iv) 46,800 52,899 Warrants issued for services (iii) 14,000 23,715 Balance – June 30, 2019 1,543,596 6,588,283 Underwritten public offering 10,417,500 3,924,384 Issuance of 2020 Underwriter Warrants 377,500 164,436 Exercise of PFW (2,655,000 ) (2,397,935 ) Exercise of 2020 Investor Warrants (ii) (25,000 ) (12,138 ) Warrants issued for services (iii) 655,000 287,183 Expiry of warrants issued for services (iii) (4,140 ) (29,877 ) Balance – June 30, 2020 10,309,456 8,524,336 i) On November 25, 2018, the Company entered into Warrant Exercise and Exchange Agreements (the “Warrant Exercise Agreements”) with certain holders (the “Exercising Holders”) of the 2018 Investor Warrants. Pursuant to the Warrant Exercise Agreements, in order to induce the Exercising Holders to exercise the 2018 Investor Warrants for cash, the Company agreed to reduce the exercise price from $12.50 to $4.00 per share. Pursuant to the Warrant Exercise Agreements, the Exercising Holders exercised their 2018 Investor Warrants with respect to an aggregate of 197,500 shares of common stock underlying such 2018 Investor Warrants (the “Exercised Shares”). The Company received net proceeds of $720,165, comprising aggregate gross proceeds of $790,000 net of expenses of $69,835, from the exercise of the 2018 Investor Warrants. ii) A total of 25,000 2020 Investor Warrants were exercised at $1.00. iii) Warrants issued for services are exercisable at various prices and expire at the various dates noted in the table below. 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. |
Schedule of Changes in Outstanding Warrants | Description of warrants Number Exercise price $ Expiry date 2020 Investor warrants 7,737,500 1.00 August 16, 2024 2019 Investor warrants 760,500 3.10 June 5, 2024 2019 Investor warrants 280,000 12.50 September 22, 2022 2017 Investor warrants 207,721 35.00 April 19, 2022 2015 Investor warrants 97,905 30.00 July 31, 2020 (i) NBTS Warrants 125,000 1.09 June 19, 2025 (ii) Warrants issued for services 250,000 0.64 January 20, 2024 Warrants issued for services 280,000 0.75 November 18, 2023 Warrants issued for services 26,500 30.00 July 1, 2020 to February 1,2021 (iii) Warrants issued for services 6,000 17.80 January 25, 2023 Warrants issued for services 33,600 11.70 February 27, 2023 Warrants issued for services 12,000 9.00 September 15, 2023 Warrants issued for services 2,000 9.00 October 11, 2021 2020 Underwriter Warrants 377,500 1.15 August 14, 2022 2019 Agent warrants 46,800 3.875 June 3, 2024 2019 Agent warrants 40,000 12.50 September 20, 2022 2017 Agent warrants 13,848 40.60 April 12, 2022 2016 Agent warrants 10,402 40.00 May 12, 2021 2015 Agent warrants 2,180 30.00 July 15, 2020 (i) 10,309,456 (i) Expired unexercised subsequent to June 30, 2020. (ii) NBTS Warrants issued with respect to loan proceeds received subsequent to June 30, 2020 (notes 3 and 11). (iii) 1,500 warrants issued for services expired unexercised subsequent to June 30, 2020. |
Stock options [Member] | |
Class Of Stock [Line Items] | |
Schedule of Outstanding Under the Legacy Plan | Number of stock options outstanding Weighted average exercise price Balance – June 30, 2018 262,683 24.27 Granted 30,000 6.10 Forfeited (4,500 ) 28.37 Balance – June 30, 2019 288,183 22.31 Granted 1,291,016 0.63 Forfeited (18,750 ) 0.61 Expired (1,250 ) 40.00 Balance – June 30, 2020 1,559,199 4.61 |
Schedule of Valuation Assumptions Using a Black-Scholes Pricing Model | June 30, 2020 June 30, 2019 Dividend rate — % — % Volatility 89% to 102% 71% to 102% Risk-free rate 0.32% to 1.50% 1.62% to 3.17% Term – years 4.7 to 5.7 0.1 to 3.0 |
Summary of Stock Options Currently Outstanding and Exercisable | Exercise price $ Number Outstanding at June 30, 2020 Weighted average remaining contractual life (years) Number exercisable at June 30, 2020 0.61 1,022,266 9.18 447,756 0.74 250,000 9.37 — 6.10 30,000 8.36 25,278 7.00 5,451 7.98 3,634 8.70 12,000 7.34 12,000 9.83 83,647 7.89 58,088 10.60 3,600 7.79 2,700 11.70 30,000 2.66 30,000 14.63 2,500 1.92 2,500 20.00 13,125 1.27 13,125 21.10 14,400 7.02 14,400 29.60 4,500 4.60 4,500 37.60 4,500 5.61 4,500 41.00 4,000 6.36 4,000 42.00 41,250 2.56 41,250 44.80 3,000 5.61 3,000 49.50 22,460 4.07 22,460 53.20 8,000 5.85 8,000 61.60 1,500 2.75 1,500 92.00 3,000 2.92 3,000 1,559,199 701,691 |
Performance stock units [Member] | |
Class Of Stock [Line Items] | |
Schedule of Conversion of Series B Preferred Stock to Common Stock | Series B Preferred Stock Number of shares $ Balance – June 30, 2018 881,113 6,146,880 Conversion of Series B Preferred stock to common stock (207,500 ) (1,447,576 ) Balance – June 30, 2019 673,613 4,699,304 Conversion of Series B Preferred stock to common stock (25,000 ) (174,407 ) Balance – June 30, 2020 648,613 4,524,897 |
Schedule of Outstanding Under the Legacy Plan | Number of PSUs outstanding Balance – June 30, 2018 120,000 Cancelled (120,000 ) Balance – June 30, 2019 and 2020 — |
Schedule of Valuation Assumptions Using a Black-Scholes Pricing Model | June 30, 2019 Dividend rate 0 % Volatility 79.0 to 82.5% Risk-free rate 2.56% to 2.71% Term – years 1.67 to 3.24 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Future Tax Assets and Deferred Tax Liabilities | Significant components of the Company’s deferred tax assets and deferred tax liabilities are shown below: June 30, 2020 $ June 30, 2019 $ Deferred tax assets: Non-capital losses carried forward 11,870,922 10,823,529 Capital losses carried forward 17,925 17,925 Financing costs 221,276 — Scientific research and development 604,489 534,398 Scientific research and development – Investment Tax Credits (“ITC”) 534,355 484,135 13,248,967 11,859,987 Deferred tax liabilities: Scientific research and development – ITC (88,929 ) (81,386 ) 13,160,038 11,778,601 Valuation allowance (13,160,038 ) (11,778,601 ) Net future tax assets — — |
Schedule of Difference Between Income Tax Rate and Statutory Income Tax Rate | The differences arise from the following items: June 30, 2020 $ June 30, 2019 $ Tax recovery at statutory income tax rates (1,916,442 ) (1,690,126 ) Permanent differences 142,523 (527,532 ) Effect of rate differentials between jurisdictions (239,465 ) (429,531 ) Effect of foreign exchange rates 347,510 - Scientific research and development – ITC (38,252 ) (39,807 ) Other 322,689 106,320 Change in valuation allowance 1,381,437 2,580,676 — — |
Supplementary Statement of Ca_2
Supplementary Statement of Cash Flows Information (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplementary Statement of Cash Flows Information | Year ended June 30, 2020 Year ended June 30, 2019 Series B Preferred Stock common stock dividend (note 6) 8,616 80,431 Non-cash issue costs (note 6) 182,257 52,899 Issue costs in accounts payable (note 6) — 64,432 Deferred costs in accounts payable (note 3) 59,944 — Warrants issued as deferred costs (notes 3 and 11) 93,701 — Reclassification of derivative liability to equity (note 5) — 492,884 Conversion of Series B Preferred Stock to common stock (note 6) 174,407 1,447,576 Income taxes paid — — Interest paid — — |
Financial Risk Management (Tabl
Financial Risk Management (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Risks And Uncertainties [Abstract] | |
Schedule of Balances in Foreign Currencies | Balances in foreign currencies at June 30, 2020 and 2019 are as follows: June 30, 2020 balances CA$ June 30, 2019 balances CA$ Trade payables 167,499 201,279 Cash 20,981 24,248 Interest, taxes, and other receivables 12,808 26,099 |
Schedule of Fair Value of Off-Balance Sheet Risks | Cash and cash equivalents $ Insured amount $ Non- insured amount $ 2,392,402 160,132 2,232,270 |
Nature of Operations, Corpora_2
Nature of Operations, Corporate History, and Liquidity Risk - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Nature of operations, corporate history, and going concern (Textual) | ||
Net loss | $ 9,125,916 | $ 8,048,221 |
Negative cash flow from operations | (7,927,516) | (6,327,425) |
Accumulated deficit | (69,721,233) | (60,578,345) |
Cash equivalents on hand | 2,392,402 | $ 3,718,758 |
Gross proceeds from private placement | 25,000,000 | |
Net proceeds from private placement | $ 21,700,000 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Detail) | May 07, 2019$ / sharesshares | Jun. 30, 2020USD ($)Segment$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | Aug. 16, 2019$ / shares | Jun. 26, 2019shares | May 08, 2019shares |
Significant Accounting Policies (Textual) | ||||||
Reverse stock split, description | 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. The Company’s authorized and issued preferred stock was not affected by the split. | |||||
Common stock authorized | 95,000,000 | 95,000,000 | ||||
Equity note stock split, conversion ratio | 0.1 | |||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||
Additional uncertain tax provisions | $ | $ 0 | |||||
Amortization of website development costs | 3 years | |||||
Capitalized cost | $ | $ 79,910 | $ 79,910 | ||||
Amortization expense | $ | $ 9,953 | 16,349 | ||||
Number of operating segments | Segment | 1 | |||||
Number of reportable segments | Segment | 1 | |||||
Derivative liabilities under the fair value hierarchy | $ | $ 0 | $ 0 | ||||
Series B Convertible Preferred Shares | ||||||
Significant Accounting Policies (Textual) | ||||||
Anti-dilutive warrants, stock options, performance stock units, and convertible preferred shares related to outstanding | 162,177 | 168,427 | ||||
Stock options [Member] | ||||||
Significant Accounting Policies (Textual) | ||||||
Anti-dilutive warrants, stock options, performance stock units, and convertible preferred shares related to outstanding | 1,559,199 | 288,183 | ||||
Common stock | ||||||
Significant Accounting Policies (Textual) | ||||||
Common stock authorized | 70,000,000 | 95,000,000 | 7,000,000 | |||
Warrants | ||||||
Significant Accounting Policies (Textual) | ||||||
Anti-dilutive warrants, stock options, performance stock units, and convertible preferred shares related to outstanding | 10,309,456 | 1,543,596 |
Deferred Costs - Additional Inf
Deferred Costs - Additional Information (Detail) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Deferred costs | $ 178,645 | $ 0 |
Deferred Costs - Summary of Def
Deferred Costs - Summary of Deferred Costs (Detail) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
Deferred financing costs (note 11) | $ 84,944 | ||
Deferred loan costs | [1] | 93,701 | |
Balance | 178,645 | $ 0 | |
Short-term | (93,701) | ||
Long-term | $ 84,944 | ||
[1] | i) Deferred loan costs include 125,000 share purchase warrants issued in respect of a loan issued to the Company by National Brain Tumor Society (“NBTS”) and the National Foundation for Cancer Research (“NFCR”) valued at $93,701 (“NBTS Warrants”) (Note 11). The NBTS Warrants are exercisable at a price of $1.09 per common share until June 19, 2025. The NBTS Warrants were valued on a Black-Scholes valuation with a risk-free interest rate of 0.37%, term of 5 years, volatility of 89.82% and a dividend rate of 0%. The estimated volatility of the Company’s common stock at the date of measurement is based on the historical volatility of the Company. The risk-free interest rate is based on rates published by the government for bonds with a maturity similar to the expected remaining life of the instrument at the valuation date. The expected term has been estimated using the remaining life of the warrant. |
Deferred Costs - Summary of D_2
Deferred Costs - Summary of Deferred Costs (Parenthetical) (Detail) - USD ($) | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 05, 2020 | ||
Deferred Cost [Line Items] | |||
Deferred loan costs | [1] | $ 93,701 | |
Warrants | |||
Deferred Cost [Line Items] | |||
Warrants exercise price | $ 1 | $ 3.875 | |
National Brain Tumor Society and National Foundation for Cancer Research [Member] | Warrants | |||
Deferred Cost [Line Items] | |||
Warrants issued | 125,000 | ||
Deferred loan costs | $ 93,701 | ||
National Brain Tumor Society [Member] | Warrants | |||
Deferred Cost [Line Items] | |||
Warrants exercise price | $ 1.09 | ||
Risk-free interest rate | 0.37% | ||
Term - years | 5 years | ||
Volatility | 89.82% | ||
Dividend rate | 0.00% | ||
[1] | i) Deferred loan costs include 125,000 share purchase warrants issued in respect of a loan issued to the Company by National Brain Tumor Society (“NBTS”) and the National Foundation for Cancer Research (“NFCR”) valued at $93,701 (“NBTS Warrants”) (Note 11). The NBTS Warrants are exercisable at a price of $1.09 per common share until June 19, 2025. The NBTS Warrants were valued on a Black-Scholes valuation with a risk-free interest rate of 0.37%, term of 5 years, volatility of 89.82% and a dividend rate of 0%. The estimated volatility of the Company’s common stock at the date of measurement is based on the historical volatility of the Company. The risk-free interest rate is based on rates published by the government for bonds with a maturity similar to the expected remaining life of the instrument at the valuation date. The expected term has been estimated using the remaining life of the warrant. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Jun. 30, 2020 | Jun. 30, 2019 | |
Preferred stock, par value | $ 0.001 | $ 0.001 | |
Dividend payable | $ 8,356 | $ 8,356 | |
Related party payables | $ 663,865 | $ 325,208 | |
Preferred Stock Series A | |||
Preferred Stock, shares issued | 278,530 | 278,530 | |
Preferred stock, rate of dividend | 300.00% | ||
Valent Technologies LLC [Member] | |||
Loan payable outstanding amount | $ 278,530 | ||
Aggregate accrued interest | $ 28,530 | ||
Dividend payable | $ 8,356 | $ 8,356 | |
Valent Technologies LLC [Member] | Preferred Stock Series A | |||
Preferred Stock, shares issued | 278,530 | ||
Preferred stock, par value | $ 1 |
Derivative Liabilities - Additi
Derivative Liabilities - Additional Information (Detail) - USD ($) | Jun. 05, 2019 | Mar. 31, 2013 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 28, 2019 |
Derivative [Line Items] | |||||
Derivative liabilities under the fair value hierarchy | $ 0 | $ 0 | |||
Derivative liabilities balance | 0 | 0 | |||
Agent warrants, value | $ 2,180 | $ 2,180 | |||
Agent warrants issued to purchase of common stock | 2,180 | 2,180 | |||
2019 Investor Warrants [Member] | |||||
Derivative [Line Items] | |||||
Number of warrants exercised | 760,500 | ||||
Purchase price | $ 3.10 | ||||
Warrants expiration date | Jun. 5, 2024 | ||||
Derivative liabilities under the fair value hierarchy | $ 492,884 | ||||
2013 Investor Warrants [Member] | |||||
Derivative [Line Items] | |||||
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. | ||||
2015 Agent Warrants [Member] | |||||
Derivative [Line Items] | |||||
Number of warrants exercised | 2,180 | ||||
Warrants expiration date | Jul. 15, 2020 | ||||
Derivative liabilities under the fair value hierarchy | $ 29,594 | ||||
Warrants exercise price | $ 30 |
Derivative Liabilities - Schedu
Derivative Liabilities - Schedule of Derivative Liabilities (Detail) | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Opening balance | $ 1,117 |
Change in fair value of warrants | 925,270 |
Reclassification to equity upon amendment of warrants | (433,503) |
Reclassification to equity upon exercise of warrants | $ (492,884) |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Conversion of Series B Preferred Stock to Common Stock (Detail) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Class of Stock [Line Items] | ||
Beginning Balance | $ 1,967,530 | $ 5,435,223 |
Ending Balance | $ 263,214 | $ 1,967,530 |
Preferred Stock Series B | ||
Class of Stock [Line Items] | ||
Beginning Balance, shares | 673,613 | 881,113 |
Conversion of Series B Preferred stock to common stock, shares | (25,000) | (207,500) |
Ending Balance, shares | 648,613 | 673,613 |
Beginning Balance | $ 4,699,304 | $ 6,146,880 |
Conversion of Series B Preferred stock to common stock | (174,407) | (1,447,576) |
Ending Balance | $ 4,524,897 | $ 4,699,304 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Jun. 26, 2020 | Aug. 16, 2019 | Jun. 05, 2019 | Sep. 30, 2014 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2016 | Aug. 14, 2020 | Jul. 31, 2020 | Jun. 05, 2020 | May 07, 2019 | Jun. 30, 2018 |
Class Of Stock [Line Items] | ||||||||||||
Convertible preferred stock | 25,000 | 207,500 | ||||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||||||||||
Preferred stock special voting shares issued | 0 | 1 | ||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Common stock, shares issued | 11,457,928 | 3,839,358 | ||||||||||
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. | |||||||||||
Net proceeds from the exercise and exchange of warrants | $ 51,550 | $ 720,165 | ||||||||||
Derivative liability issue costs | 126,186 | |||||||||||
Shares issued for services | $ 13,396 | $ 13,777 | ||||||||||
Common stock issued under the 2017 Plan | 491,817 | |||||||||||
Number of options granted | 1,291,016 | 30,000 | ||||||||||
Number of options vested | 499,748 | 83,170 | ||||||||||
Stock options exercisable | 701,691 | |||||||||||
Performance stock units description | 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. | |||||||||||
Number of stock options outstanding | 1,559,199 | |||||||||||
Subsequent Event [Member] | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Warrants exercise price | $ 1 | |||||||||||
Vest pro rata monthly over one year from the date of grant [Member] | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Number of options vested | 375,000 | |||||||||||
Vest as to one-sixth on the six-month anniversary of the grant date [Member] | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Number of options vested | 666,016 | |||||||||||
2017 Omnibus Incentive Plan [Member] | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Common stock, shares issued | 2,280,000 | |||||||||||
Common stock, shares outstanding | 164,235 | |||||||||||
Common stock issued under the 2017 Plan | 720,801 | 1,394,964 | ||||||||||
Percentage of fully diluted shares of common stock | 8.00% | |||||||||||
Number of options granted | 549,199 | |||||||||||
Number of shares available under the plan | 2,280,000 | |||||||||||
2017 Omnibus Incentive Plan [Member] | Subsequent Event [Member] | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Number of shares available under the plan | 6,700,000 | |||||||||||
2017 Omnibus Incentive Plan [Member] | Officers and Directors [Member] | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Legacy plan, description | the Company granted 1,041,016 stock options to officers and directors of the Company. Of the total stock options granted, 491,817 were granted under the previous 2017 Plan limit and 549,199 were granted subject to approval by the Company’s stockholders of the 2017 Plan share reserve increase. All of the stock options granted to officers and directors have an exercise price of $0.61 and 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. | |||||||||||
Number of options granted | 1,041,016 | |||||||||||
Stock options [Member] | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Number of options granted | 1,291,016 | 30,000 | ||||||||||
Number of stock options outstanding | 1,559,199 | 288,183 | 262,683 | |||||||||
Aggregate intrinsic value of stock options outstanding | $ 79,554 | $ 0 | ||||||||||
Aggregate intrinsic value of stock options exercisable | 34,847 | 0 | ||||||||||
Unrecognized compensation expense | $ 177,442 | |||||||||||
Unrecognized compensation expense, term | 1 year 6 months | |||||||||||
Aggregate intrinsic value of unvested stock options | $ 44,754 | $ 0 | ||||||||||
Weighted average contractual term | 9 years 2 months 8 days | 8 years 9 months 10 days | ||||||||||
Stock options [Member] | CA$ $20.00 Exercise Price | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Number of stock options outstanding | 2,500 | |||||||||||
Stock options exercise price | $ 14.63 | |||||||||||
Stock options [Member] | Subject to Stockholder Approval | Group One | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Number of options granted | 549,199 | |||||||||||
Exercisable price | $ 0.61 | |||||||||||
Stock options [Member] | Subject to Stockholder Approval | Group Two | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Exercisable price | $ 0.735 | |||||||||||
Stock options exercisable | 250,000 | |||||||||||
Performance stock units [Member] | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Fully diluted market capitalization | $ 500,000,000 | |||||||||||
Recognized expense related to the PSUs | 526,141 | |||||||||||
Expense related to the PSU's | 322,877 | |||||||||||
Unrecognized compensation expense | $ 0 | |||||||||||
2019 Registered Offering | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Issued warrants to underwriters | 1,170,000 | |||||||||||
Common stock, par value | $ 3.10 | |||||||||||
Warrants exercise price | $ 3.10 | |||||||||||
Additional warrants purchase | 760,500 | |||||||||||
Gross proceeds of cash | $ 3,600,000 | |||||||||||
Warrant term | 5 years | |||||||||||
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. | |||||||||||
Derivative liability issue costs | $ 151,585 | |||||||||||
Net proceeds of cash | $ 3,185,255 | |||||||||||
Common stock | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Series B preferred stock dividend, shares | 14,800 | 18,271 | ||||||||||
Conversion of Series B preferred stock to common stock, shares | 6,250 | 51,876 | ||||||||||
Issued warrants to underwriters | 4,895,000 | 4,895,000 | 1,170,000 | |||||||||
Warrants exercise price | $ 1 | |||||||||||
Shares issued for services, shares | 22,520 | 3,444 | ||||||||||
Shares issued for services | $ 23 | $ 3 | ||||||||||
Pre-Funded Warrants | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Issued warrants to underwriters | 2,655,000 | 2,655,000 | ||||||||||
Warrants exercise price | $ 0.01 | $ 0.01 | ||||||||||
Expiry date | Aug. 16, 2019 | |||||||||||
Net proceeds from the exercise and exchange of warrants | $ 26,550 | |||||||||||
2020 Investor Warrant | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Issued warrants to underwriters | 7,762,500 | |||||||||||
Common stock, shares issued | 800,000 | |||||||||||
Warrants to purchase common stock | 1,012,500 | |||||||||||
Warrants exercise price | $ 1 | |||||||||||
Underwriting discounts and commissions amount | $ 6,582,966 | |||||||||||
Expiry date | Aug. 16, 2024 | |||||||||||
2020 Investor Warrant | Underwriting Offering | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Issued warrants to underwriters | 377,500 | |||||||||||
Warrants exercise price | $ 1.15 | |||||||||||
Expiry date | Aug. 14, 2022 | |||||||||||
Underwriter warrants commencing date | Feb. 10, 2020 | |||||||||||
Warrants | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Issued warrants to underwriters | 10,309,456 | |||||||||||
Warrants exercise price | $ 1 | $ 3.875 | ||||||||||
Net proceeds from the exercise and exchange of warrants | $ 720,165 | |||||||||||
Warrants | 2019 Agent | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Issued warrants to underwriters | 46,800 | |||||||||||
Warrants exercise price | $ 3.875 | |||||||||||
Expiry date | Jun. 3, 2024 | |||||||||||
Warrants | 2019 Registered Offering | 2019 Agent | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Warrants exercise price | $ 3.875 | |||||||||||
Expiry date | Jun. 3, 2024 | |||||||||||
Cash commission and other fees to the placement agent | $ 290,160 | |||||||||||
Warrants issued | 46,800 | |||||||||||
Preferred Stock Series B | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Preferred stock, rate of dividend | 9.00% | |||||||||||
Purchase price of shares | $ 8 | |||||||||||
Convertible preferred stock | 0.25 | |||||||||||
Conversion price | $ 32 | |||||||||||
Issue of shares | 902,238 | |||||||||||
Bid price | $ 80 | |||||||||||
Final closing date | 5 years | |||||||||||
Liquidation value | $ 5,188,904 | |||||||||||
Conversion of Series B preferred stock to common stock, shares | 162,177 | 168,427 | ||||||||||
Direct increase in accumulated deficit | $ 8,616 | $ 80,431 | ||||||||||
Preferred stock, shares outstanding | 648,613 | 673,613 | ||||||||||
Preferred Stock, shares issued | 648,613 | 673,613 | ||||||||||
Common stock | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Series B preferred stock dividend, shares | 14,800 | 18,271 | ||||||||||
Conversion of Series B preferred stock to common stock, shares | 6,250 | 51,876 | ||||||||||
Preferred Stock Series A | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Preferred stock, rate of dividend | 300.00% | |||||||||||
Liquidation value | $ 278,530 | |||||||||||
Preferred stock, shares outstanding | 278,530 | 278,530 | ||||||||||
Preferred Stock, shares issued | 278,530 | 278,530 | ||||||||||
Change in preferred stock | $ 0 | $ 0 | ||||||||||
Preferred Stock Series A | Exchange Agreement | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Preferred stock, rate of dividend | 3.00% | |||||||||||
Preferred stock, par value | $ 1 | |||||||||||
Preferred Stock, shares issued | 278,530 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Outstanding Under the Legacy Plan (Detail) - $ / shares | 12 Months Ended | 24 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | |
Number of stock options outstanding | |||
Beginning balance | |||
Ending balance | 1,559,199 | 1,559,199 | |
Granted | 1,291,016 | 30,000 | |
Stock options [Member] | |||
Number of stock options outstanding | |||
Beginning balance | 288,183 | 262,683 | 262,683 |
Ending balance | 1,559,199 | 288,183 | 1,559,199 |
Granted | 1,291,016 | 30,000 | |
Forfeited | (18,750) | (4,500) | |
Expired | (1,250) | ||
Beginning balance | $ 22.31 | $ 24.27 | $ 24.27 |
Granted | 0.63 | 6.10 | |
Forfeited | 0.61 | 28.37 | |
Expired | 40 | ||
Ending balance | $ 4.61 | $ 22.31 | $ 4.61 |
Performance stock units [Member] | |||
Number of stock options outstanding | |||
Beginning balance | 120,000 | 120,000 | |
Cancelled | (120,000) | (120,000) |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Valuation Assumptions Using a Black-Scholes Pricing Model (Detail) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Performance stock units [Member] | ||
Class of Stock [Line Items] | ||
Dividend rate | 0.00% | |
Minimum | Performance stock units [Member] | ||
Class of Stock [Line Items] | ||
Volatility | 79.00% | |
Risk-free interest rate | 2.56% | |
Term - years | 1 year 8 months 1 day | |
Minimum | Stock options [Member] | ||
Class of Stock [Line Items] | ||
Volatility | 89.00% | 71.00% |
Risk-free interest rate | 0.32% | 1.62% |
Term - years | 4 years 8 months 12 days | 1 month 6 days |
Maximum | Performance stock units [Member] | ||
Class of Stock [Line Items] | ||
Volatility | 82.50% | |
Risk-free interest rate | 2.71% | |
Term - years | 3 years 2 months 26 days | |
Maximum | Stock options [Member] | ||
Class of Stock [Line Items] | ||
Volatility | 102.00% | 102.00% |
Risk-free interest rate | 1.50% | 2.71% |
Term - years | 5 years 8 months 12 days | 3 years |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Options Outstanding and Exercisable (Detail) | 12 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Class of Stock [Line Items] | |
Number of stock options outstanding | 1,559,199 |
Stock options exercisable | 701,691 |
Exercise Price One [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 0.61 |
Number of stock options outstanding | 1,022,266 |
Weighted average remaining contractual life (years) | 9 years 2 months 4 days |
Stock options exercisable | 447,756 |
Exercise Price Two [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 0.74 |
Number of stock options outstanding | 250,000 |
Weighted average remaining contractual life (years) | 9 years 4 months 13 days |
Exercise Price Three [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 6.10 |
Number of stock options outstanding | 30,000 |
Weighted average remaining contractual life (years) | 8 years 4 months 9 days |
Stock options exercisable | 25,278 |
Exercise Price Four [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 7 |
Number of stock options outstanding | 5,451 |
Weighted average remaining contractual life (years) | 7 years 11 months 23 days |
Stock options exercisable | 3,634 |
Exercise Price Five [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 8.70 |
Number of stock options outstanding | 12,000 |
Weighted average remaining contractual life (years) | 7 years 4 months 2 days |
Stock options exercisable | 12,000 |
Exercise Price Six [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 9.83 |
Number of stock options outstanding | 83,647 |
Weighted average remaining contractual life (years) | 7 years 10 months 20 days |
Stock options exercisable | 58,088 |
Exercise Price Seven [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 10.60 |
Number of stock options outstanding | 3,600 |
Weighted average remaining contractual life (years) | 7 years 9 months 14 days |
Stock options exercisable | 2,700 |
Exercise Price Eight [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 11.70 |
Number of stock options outstanding | 30,000 |
Weighted average remaining contractual life (years) | 2 years 7 months 28 days |
Stock options exercisable | 30,000 |
Exercise Price Nine [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 14.63 |
Number of stock options outstanding | 2,500 |
Weighted average remaining contractual life (years) | 1 year 11 months 1 day |
Stock options exercisable | 2,500 |
Exercise Price Ten [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 20 |
Number of stock options outstanding | 13,125 |
Weighted average remaining contractual life (years) | 1 year 3 months 7 days |
Stock options exercisable | 13,125 |
Exercise Price Eleven [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 21.10 |
Number of stock options outstanding | 14,400 |
Weighted average remaining contractual life (years) | 7 years 7 days |
Stock options exercisable | 14,400 |
Exercise Price Twelve [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 29.60 |
Number of stock options outstanding | 4,500 |
Weighted average remaining contractual life (years) | 4 years 7 months 6 days |
Stock options exercisable | 4,500 |
Exercise Price Thirteen [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 37.60 |
Number of stock options outstanding | 4,500 |
Weighted average remaining contractual life (years) | 5 years 7 months 9 days |
Stock options exercisable | 4,500 |
Exercise Price Fourteen [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 41 |
Number of stock options outstanding | 4,000 |
Weighted average remaining contractual life (years) | 6 years 4 months 9 days |
Stock options exercisable | 4,000 |
Exercise Price Fifteen [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 42 |
Number of stock options outstanding | 41,250 |
Weighted average remaining contractual life (years) | 2 years 6 months 21 days |
Stock options exercisable | 41,250 |
Exercise Price Sixteen [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 44.80 |
Number of stock options outstanding | 3,000 |
Weighted average remaining contractual life (years) | 5 years 7 months 9 days |
Stock options exercisable | 3,000 |
Exercise Price Seventeen [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 49.50 |
Number of stock options outstanding | 22,460 |
Weighted average remaining contractual life (years) | 4 years 25 days |
Stock options exercisable | 22,460 |
Exercise Price Eighteen [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 53.20 |
Number of stock options outstanding | 8,000 |
Weighted average remaining contractual life (years) | 5 years 10 months 6 days |
Stock options exercisable | 8,000 |
Exercise Price Nineteen [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 61.60 |
Number of stock options outstanding | 1,500 |
Weighted average remaining contractual life (years) | 2 years 9 months |
Stock options exercisable | 1,500 |
Exercise Price Twenty [Member] | |
Class of Stock [Line Items] | |
Exercisable price | $ / shares | $ 92 |
Number of stock options outstanding | 3,000 |
Weighted average remaining contractual life (years) | 2 years 11 months 1 day |
Stock options exercisable | 3,000 |
Stockholders' Equity - Schedu_4
Stockholders' Equity - Schedule of Stock Option Expense (Detail) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Class of Stock [Line Items] | ||
Stock-based compensation expense | $ 494,861 | $ 426,029 |
Research and Development [Member] | ||
Class of Stock [Line Items] | ||
Stock-based compensation expense | 86,835 | 74,667 |
General and Administrative [Member] | ||
Class of Stock [Line Items] | ||
Stock-based compensation expense | $ 408,026 | $ 351,362 |
Stockholders' Equity - Schedu_5
Stockholders' Equity - Schedule of Unvested Stock Options (Detail) - $ / shares | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Equity [Abstract] | ||
Beginning balance | 84,990 | 138,160 |
Granted | 1,291,016 | 30,000 |
Vested | (499,748) | (83,170) |
Forfeited | (18,750) | |
Ending balance | 857,508 | 84,990 |
Beginning balance | $ 11.35 | $ 14.39 |
Granted | 0.63 | 6.10 |
Vested | 1.87 | 14.51 |
Weighted average exercise price unvested, Forfeited | 0.61 | |
Ending balance | 0.98 | 11.35 |
Weighted average grant date fair value, Beginning balance | 5.82 | 7.63 |
Weighted average grant date fair value, Granted | 0.40 | 2.56 |
Weighted average grant date fair value, Vested | 1.12 | 7.65 |
Weighted average grant date fair value, Forfeited | 0.49 | |
Weighted average grant date fair value, unvested, Ending balance | $ 0.52 | $ 5.82 |
Stockholders' Equity - Schedu_6
Stockholders' Equity - Schedule of Warrants (Detail) - USD ($) | Nov. 26, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Balance – June 30, 2018 | $ 6,588,283 | ||||
Balance – June 30, 2019 | $ 8,524,336 | $ 6,588,283 | |||
Warrant [Member] | |||||
Balance – June 30, 2018 | 1,543,596 | 1,217,296 | |||
Exercise and exchange of 2018 Investor Warrants | 297,500 | (495,000) | [1] | ||
Issuance of 2019 Investor Warrants (note 5) | 760,500 | ||||
Issuance of 2019 Agent Warrants (iv) | [2] | 46,800 | |||
Warrants issued for services | [3] | 655,000 | 14,000 | ||
Balance – June 30, 2019 | 10,309,456 | 1,543,596 | |||
Underwritten public offering | 10,417,500 | ||||
Issuance of 2020 Underwriter Warrants | 377,500 | ||||
Exercise of PFW | (2,655,000) | ||||
Exercise of 2020 Investor Warrants | [4] | (25,000) | |||
Expiry of warrants issued for services | [3] | (4,140) | |||
Balance – June 30, 2018 | $ 6,588,283 | $ 8,229,482 | |||
Exercise and exchange of 2018 Investor Warrants | [1] | (2,210,697) | |||
Issuance of 2019 Investor Warrants (note 5) | 492,884 | ||||
Issuance of 2019 Agent Warrants (iv) | [2] | 52,899 | |||
Warrants issued for services | [3] | 287,183 | 23,715 | ||
Balance – June 30, 2019 | 8,524,336 | $ 6,588,283 | |||
Underwritten public offering | 3,924,384 | ||||
Issuance of 2020 Underwriter Warrants | 164,436 | ||||
Exercise of PFW | (2,397,935) | ||||
Exercise of 2020 Investor Warrants | [4] | (12,138) | |||
Expiry of warrants issued for services | [3] | $ (29,877) | |||
[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 $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. | ||||
[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 2019 Agent Warrants are exercisable at $3.875 until June 3, 2024. | ||||
[3] | Warrants issued for services are exercisable at various prices and expire at the various dates noted in the table below. | ||||
[4] | A total of 25,000 2020 Investor Warrants were exercised at $1.00. |
Stockholders' Equity - Schedu_7
Stockholders' Equity - Schedule of Warrants (Parenthetical) (Detail) - USD ($) | Nov. 26, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 05, 2020 | ||
Net proceeds from the exercise and exchange of warrants | $ 51,550 | $ 720,165 | ||||
Warrants | ||||||
Warrants exercise price | $ 1 | $ 3.875 | ||||
Exercise of 2018 Investor Warrants for cash | 197,500 | |||||
Net proceeds from the exercise and exchange of warrants | $ 720,165 | |||||
Gross proceeds from the exercise and exchange of warrants | 790,000 | |||||
Warrant exercise expense | $ 69,835 | |||||
Shares issued, exercise of warrants | 99,167 | |||||
Exercise and exchange of 2018 Investor Warrants | 297,500 | (495,000) | [1] | |||
Exercise of 2020 Investor Warrants | [2] | 25,000 | ||||
Warrants | Minimum | ||||||
Warrants exercise price | $ 12.50 | |||||
Warrants | Maximum | ||||||
Warrants exercise price | $ 4 | |||||
[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 $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. | |||||
[2] | A total of 25,000 2020 Investor Warrants were exercised at $1.00. |
Stockholders' Equity - Schedu_8
Stockholders' Equity - Schedule of Outstanding Warrants (Detail) - Warrants - $ / shares | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 05, 2020 | ||
Number | 10,309,456 | ||
Warrants exercise price | $ 1 | $ 3.875 | |
Minimum | |||
Warrants exercise price | 12.50 | ||
Maximum | |||
Warrants exercise price | $ 4 | ||
Issued For Services One [Member] | |||
Number | 250,000 | ||
Warrants exercise price | $ 0.64 | ||
Expiry date | Jan. 20, 2024 | ||
Issued For Services Two [Member] | |||
Number | 280,000 | ||
Warrants exercise price | $ 0.75 | ||
Expiry date | Nov. 18, 2023 | ||
Issued For Services Three [Member] | |||
Number | 26,500 | ||
Warrants exercise price | $ 30 | ||
Issued For Services Three [Member] | Minimum | |||
Expiry date | [1] | Jul. 1, 2020 | |
Issued For Services Three [Member] | Maximum | |||
Expiry date | [1] | Feb. 1, 2021 | |
Issued For Services Four [Member] | |||
Number | 6,000 | ||
Warrants exercise price | $ 17.80 | ||
Expiry date | Jan. 25, 2023 | ||
Issued For Services Five [Member] | |||
Number | 33,600 | ||
Warrants exercise price | $ 11.70 | ||
Expiry date | Feb. 27, 2023 | ||
Issued For Services Six [Member] | |||
Number | 12,000 | ||
Warrants exercise price | $ 9 | ||
Expiry date | Sep. 15, 2023 | ||
Issued For Services Seven [Member] | |||
Number | 2,000 | ||
Warrants exercise price | $ 9 | ||
Expiry date | Oct. 11, 2021 | ||
2020Investor [Member] | |||
Number | 7,737,500 | ||
Warrants exercise price | $ 1 | ||
Expiry date | Aug. 16, 2024 | ||
2019 Investor [Member] | |||
Number | 760,500 | ||
Warrants exercise price | $ 3.10 | ||
Expiry date | Jun. 5, 2024 | ||
2019 Investor [Member] | |||
Number | 280,000 | ||
Warrants exercise price | $ 12.50 | ||
Expiry date | Sep. 22, 2022 | ||
2017 Investor [Member] | |||
Number | 207,721 | ||
Warrants exercise price | $ 35 | ||
Expiry date | Apr. 19, 2022 | ||
2015 Investor [Member] | |||
Number | 97,905 | ||
Warrants exercise price | $ 30 | ||
Expiry date | [2] | Jul. 31, 2020 | |
NBTS [Member] | |||
Number | 125,000 | ||
Warrants exercise price | $ 1.09 | ||
Expiry date | [3] | Jun. 19, 2025 | |
Underwriting Offering | |||
Number | 377,500 | ||
Warrants exercise price | $ 1.15 | ||
Expiry date | Aug. 14, 2022 | ||
2019 Agent | |||
Number | 46,800 | ||
Warrants exercise price | $ 3.875 | ||
Expiry date | Jun. 3, 2024 | ||
2019 Agent [Member] | |||
Number | 40,000 | ||
Warrants exercise price | $ 12.50 | ||
Expiry date | Sep. 20, 2022 | ||
2017 Agent [Member] | |||
Number | 13,848 | ||
Warrants exercise price | $ 40.60 | ||
Expiry date | Apr. 12, 2022 | ||
2016 Agent [Member] | |||
Number | 10,402 | ||
Warrants exercise price | $ 40 | ||
Expiry date | May 12, 2021 | ||
2015 Agent [Member] | |||
Number | 2,180 | ||
Warrants exercise price | $ 30 | ||
Expiry date | [2] | Jul. 15, 2020 | |
[1] | 1,500 warrants issued for services expired unexercised subsequent to June 30, 2020. | ||
[2] | Expired unexercised subsequent to June 30, 2020. | ||
[3] | NBTS Warrants issued with respect to loan proceeds received subsequent to June 30, 2020 (notes 3 and 11). |
Stockholders' Equity - Schedu_9
Stockholders' Equity - Schedule of Outstanding Warrants (Parenthetical) (Detail) - Warrants - shares | Sep. 30, 2020 | Jun. 30, 2020 |
Number | 10,309,456 | |
Issued For Services Three [Member] | ||
Number | 26,500 | |
Issued For Services Three [Member] | Subsequent Event [Member] | ||
Number | 1,500 |
Income Taxes - Components of de
Income Taxes - Components of deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Deferred tax assets: | ||
Non-capital losses carried forward | $ 11,870,922 | $ 10,823,529 |
Capital losses carried forward | 17,925 | 17,925 |
Financing costs | 221,276 | |
Scientific research and development | 604,489 | 534,398 |
Scientific research and development – Investment Tax Credits (“ITC”) | 534,355 | 484,135 |
Deferred tax assets | 13,248,967 | 11,859,987 |
Deferred tax liabilities: | ||
Scientific research and development – ITC | (88,929) | (81,386) |
Gross future tax assets | 13,160,038 | 11,778,601 |
Valuation allowance | (13,160,038) | (11,778,601) |
Net future tax assets |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Current and Future Income Taxes (Textual) | ||
Statutory income tax rate | 21.00% | 21.00% |
Deferred tax assets, Operating loss carryforwards, Not subject to expiration | $ 6,700,000 | |
Percentage of taxable income, limitation on NOLs | 80.00% | |
Investment tax credits expire, description | expire between 2029 and 2040 | |
Current income tax expense (benefit) | $ 0 | |
Open tax years | 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 | |
Represents minimum cumulative percentage of change in ownership as a condition to offset taxable income or tax | 50.00% | |
Cumulative change in ownership period | 3 years | |
United States [Member] | ||
Current and Future Income Taxes (Textual) | ||
Loss before income taxes | $ 5,200,000 | |
Operating loss carryforwards | $ 10,500,000 | |
Net operating loss expire, description | begin expiring in 2030 | |
US and Canadian [Member] | ||
Current and Future Income Taxes (Textual) | ||
Operating loss carryforwards | $ 47,800,000 | $ 43,200,000 |
Canadian [Member] | ||
Current and Future Income Taxes (Textual) | ||
Loss before income taxes | 4,000,000 | |
Operating loss carryforwards | $ 30,600,000 | |
Net operating loss expire, description | begin expiring in 2030 | |
Non-refundable federal investment tax credits | $ 329,368 | 303,969 |
British Columbia [Member] | ||
Current and Future Income Taxes (Textual) | ||
Non-refundable federal investment tax credits | $ 204,987 | 166,000 |
Investment tax credits expire, description | expire between 2020 and 2030 | |
Canadian Scientific Research and Development [Member] | ||
Current and Future Income Taxes (Textual) | ||
Non-refundable federal investment tax credits | $ 2,200,000 | $ 2,000,000 |
Income Taxes - Schedule of Diff
Income Taxes - Schedule of Difference Between Income Tax Rate and Statutory Income Tax Rate (Detail) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Effective income tax rate differs from the statutory income tax rate | ||
Tax recovery at statutory income tax rates | $ (1,916,442) | $ (1,690,126) |
Permanent differences | 142,523 | (527,532) |
Effect of rate differentials between jurisdictions | (239,465) | (429,531) |
Effect of foreign exchange rates | 347,510 | |
Scientific research and development – ITC | (38,252) | (39,807) |
Other | 322,689 | 106,320 |
Change in valuation allowance | 1,381,437 | 2,580,676 |
Income tax expense benefit |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2020CAD ($) | Jun. 30, 2019USD ($) | |
Commitments and Contingencies (Textual) | |||
Manufacturing and clinical study management related loan term | 1 year | 1 year | |
Manufacturing and clinical study management related cost | $ 1,419,520 | ||
Deposits related to study initiation | 41,938 | ||
Rent expense | $ 40,130 | $ 52,926 | |
Head Office [Member] | |||
Commitments and Contingencies (Textual) | |||
Lease rent for office space term | 1 year | 1 year | |
Lease rent for office space | $ 189 | ||
Administrative Offices [Member] | |||
Commitments and Contingencies (Textual) | |||
Lease rent for office space | $ 3,187 | ||
CAD [Member] | Administrative Offices [Member] | |||
Commitments and Contingencies (Textual) | |||
Lease rent for office space | $ 4,357 |
Supplementary Statement of Ca_3
Supplementary Statement of Cash Flows Information - Schedule of Supplementary Statement of Cash Flows Information (Detail) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | ||
Series B Preferred Stock common stock dividend (note 6) | $ 8,616 | $ 80,431 |
Non-cash issue costs (note 6) | 182,257 | 52,899 |
Issue costs in accounts payable (note 6) | 64,432 | |
Deferred costs in accounts payable (note 3) | 59,944 | |
Warrants issued as deferred costs (notes 3 and 11) | 93,701 | |
Reclassification of derivative liability to equity (note 5) | 492,884 | |
Conversion of Series B Preferred Stock to common stock (note 6) | 174,407 | 1,447,576 |
Income taxes paid | ||
Interest paid |
Financial Risk Management - Add
Financial Risk Management - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Cash and cash equivalents | $ 2,392,402 | $ 3,718,758 |
Credit risk, financial instrument maximum exposure | 9,401 | |
Credit risk, uninsured cash and cash equivalents | 2,232,270 | |
Liquidity Risk [Member] | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Liquidity risk maximum exposure | 2,674,923 | |
Foreign exchange risk [Member] | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Financial risk, accounts payable and accrued liabilities | $ 152,347 | |
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 $17,853. | |
Foreign exchange risk maximum exposure | $ 17,853 | |
Cash and cash equivalents | $ 2,392,402 | |
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. |
Financial Risk Management - Sch
Financial Risk Management - Schedule of Balances in Foreign Currencies (Detail) - Foreign exchange risk [Member] - CAD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Trade payables | $ 167,499 | $ 201,279 |
Cash | 20,981 | 24,248 |
Interest, taxes, and other receivables | $ 12,808 | $ 26,099 |
Financial Risk Management - S_2
Financial Risk Management - Schedule of Fair Value of Off-Balance Sheet Risks (Detail) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Risks And Uncertainties [Abstract] | ||
Cash and cash equivalents | $ 2,392,402 | $ 3,718,758 |
Insured amount $ | 160,132 | |
Non- insured amount $ | $ 2,232,270 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Sep. 15, 2020$ / sharesshares | Jun. 09, 2020USD ($)$ / sharesshares | Jul. 31, 2020USD ($)$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019shares | Jun. 05, 2020$ / shares |
Subsequent Event [Line Items] | ||||||
Net proceeds from private placement | $ | $ 21,700,000 | |||||
Merger costs | $ | $ 1,053,697 | |||||
Number of options granted | 1,291,016 | 30,000 | ||||
Stock options [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of options granted | 1,291,016 | 30,000 | ||||
Number of options forfeited | 18,750 | 4,500 | ||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Warrants exercise price | $ / shares | $ 1 | |||||
Number of warrants exercised | 363,623 | |||||
Subsequent Event [Member] | Stock options [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of options forfeited | 14,014 | |||||
National Brain Tumor Society and National Foundation for Cancer Research [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Proceeds from debt | $ | $ 500,000 | |||||
National Brain Tumor Society [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Warrants issued | 125,000 | |||||
Warrants exercise price | $ / shares | $ 1.09 | |||||
National Brain Tumor Society [Member] | Subsequent Event [Member] | Promissory Note [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Accrued interest rate | 6.00% | |||||
Debt, maturity date | Jun. 19, 2021 | |||||
Warrant [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Warrants exercise price | $ / shares | $ 1 | $ 3.875 | ||||
Warrant [Member] | National Brain Tumor Society [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Warrants exercise price | $ / shares | $ 1.09 | |||||
Director [Member] | Stock options [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Stock option exercise period | 90 days | |||||
Director [Member] | Stock options [Member] | Group One [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Stock option expiry date | Sep. 26, 2020 | |||||
Director [Member] | Stock options [Member] | Group Two [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Stock option expiry date | Nov. 19, 2020 | |||||
Director [Member] | Subsequent Event [Member] | Stock options [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of options granted | 222,887 | |||||
Stock option exercise period | 1 year | |||||
Director [Member] | Subsequent Event [Member] | Stock options [Member] | Group One [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of options granted | 66,850 | |||||
Stock option expiry date | Jun. 26, 2021 | |||||
Director [Member] | Subsequent Event [Member] | Stock options [Member] | Group Two [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of options granted | 156,037 | |||||
Stock option expiry date | Aug. 19, 2021 | |||||
Executive Officers and Director [Member] | Subsequent Event [Member] | Stock options [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of options granted | 4,698,687 | |||||
Stock option exercise price | $ / shares | $ 1.70 | |||||
Stock option vesting description | Of the total granted, 4,218,687 stock options vest as to 1/6 on March 15, 2021 with the remaining portion of the 4,218,687 vesting in equal monthly installments over a period of 30 months commencing on April 15, 2021. In addition, of the total stock options granted, 480,000 vest in 12 equal monthly installments beginning on October 15, 2020. All of the stock options granted have a 10-year term and are subject to cancellation upon the grantees’ termination of service for the Company, with certain exceptions. | |||||
Stock option term | 10 years | |||||
Executive Officers and Director [Member] | Subsequent Event [Member] | Stock options [Member] | Group One [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of options expected to vest | 4,218,687 | |||||
Stock option vesting ratio | 0.1667 | |||||
Stock option vesting date | Mar. 15, 2021 | |||||
Stock option vesting period | 30 months | |||||
Stock option vesting commencement date | Apr. 15, 2021 | |||||
Executive Officers and Director [Member] | Subsequent Event [Member] | Stock options [Member] | Group Two [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of options expected to vest | 480,000 | |||||
Stock option vesting period | 12 months | |||||
Stock option vesting commencement date | Oct. 15, 2020 | |||||
Series C Preferred Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Conversion of common stock, shares issued | 21,516,484 | |||||
Series C-1 Preferred Shares [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Conversion price | $ / shares | $ 1.16 | |||||
Series C-2 Preferred Shares [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Conversion price | $ / shares | 1.214 | |||||
Series C-3 Preferred Shares [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Conversion price | $ / shares | $ 1.15 | |||||
Merger Agreement [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Terms and conditions of merger agreement | (the “Effective Time”), (i) each outstanding share of Adgero common stock (the “Adgero Common Stock”) (other than any shares held as treasury stock that will be cancelled) was converted into shares of Company common stock (the “Kintara Common Stock”) based on the exchange ratio, (ii) each outstanding warrant to purchase Adgero Common Stock was converted into a warrant exercisable for that number of shares of Kintara Common Stock equal to the product of (x) the aggregate number of shares of Adgero Common Stock for which such warrant was exercisable and (y) the Exchange Ratio (as defined in the Merger Agreement); and (iii) each outstanding Adgero stock option, whether vested or unvested, that had not been exercised was cancelled for no consideration. On August 19, 2020, upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub merged with and into Adgero, the separate corporate existence of Merger Sub ceased and Adgero continued its existence under Delaware law as the surviving corporation and a direct, wholly-owned subsidiary of the Company. | |||||
Voting power after effective time | 49.50% | |||||
Voting power prior to effective time | 50.50% | |||||
Final exchange ratio prior to effective time | 157.40% | |||||
Stock purchase warrants | 2,313,908 | |||||
Warrants exercisable price | $ / shares | $ 3.18 | |||||
Merger costs | $ | $ 1,053,697 | |||||
Merger Agreement [Member] | Series C Preferred Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Shares issued, price per share | $ / shares | $ 1,000 | |||||
Shares issued of common stock for services | 25,028 | |||||
Total gross proceeds | $ | $ 25,000,000 | |||||
Net proceeds from private placement | $ | $ 21,700,000 | |||||
Issue of shares | 25,028 | |||||
Merger Agreement [Member] | Series C Preferred Stock [Member] | Placement Agent [Member] | Warrant [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Issue of shares | 2,504 | |||||
Merger Agreement [Member] | Private Placement [Member] | Series C Preferred Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Shares issued, price per share | $ / shares | $ 1,000 | |||||
Deferred financing costs | $ | $ 84,944 | |||||
Merger Agreement [Member] | Private Placement [Member] | Series C Preferred Stock [Member] | First Anniversary [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Common stock dividends percentage | 10.00% | |||||
Merger Agreement [Member] | Private Placement [Member] | Series C Preferred Stock [Member] | Second Anniversary [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Common stock dividends percentage | 15.00% | |||||
Merger Agreement [Member] | Private Placement [Member] | Series C Preferred Stock [Member] | Third Anniversary [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Common stock dividends percentage | 20.00% | |||||
Merger Agreement [Member] | Private Placement [Member] | Series C Preferred Stock [Member] | Fourth Anniversary [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Common stock dividends percentage | 25.00% | |||||
Merger Agreement [Member] | Private Placement [Member] | Series C Preferred Stock [Member] | Placement Agent [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Merger, stock purchase warrants as percentage of value of shares issued | 10.00% | |||||
Merger Agreement [Member] | Common Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of shares issued | 11,439,013 | |||||
Merger Agreement [Member] | Common Stock [Member] | Private Placement [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Merger success fee | 571,951 |