Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Sep. 30, 2014 | Nov. 12, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Entity Registrant Name | 'IsoRay, Inc. | ' |
Entity Central Index Key | '0000728387 | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 54,870,596 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Current assets: | ' | ' |
Cash and cash equivalents | $2,075,317 | $7,680,073 |
Short-term investments | 10,025,267 | 10,002,912 |
Accounts receivable, net of allowance for doubtful accounts of $27,286 and $38,607, respectively | 962,259 | 913,049 |
Inventory | 407,479 | 359,737 |
Other receivables | 5,258 | 53,082 |
Prepaid expenses and other current assets | 252,183 | 206,047 |
Total current assets | 13,727,763 | 19,214,900 |
Fixed assets, net of accumulated depreciation and amortization | 855,398 | 1,017,915 |
Investments - other | 10,046,537 | 5,401,398 |
Restricted cash | 181,221 | 181,208 |
Inventory, non-current | 469,758 | 469,758 |
Other assets, net of accumulated amortization | 258,638 | 264,076 |
Total assets | 25,539,315 | 26,549,255 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 509,688 | 574,855 |
Accrued protocol expense | 94,462 | 80,433 |
Accrued radioactive waste disposal | 153,592 | 141,592 |
Accrued payroll and related taxes | 105,503 | 236,282 |
Accrued vacation | 115,821 | 120,765 |
Total current liabilities | 979,066 | 1,153,927 |
Warrant derivative liability | 250,000 | 573,000 |
Asset retirement obligation | 886,204 | 866,560 |
Total liabilities | 2,115,270 | 2,593,487 |
Commitments and contingencies (Note 7) | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock, $.001 par value; 7,001,671 shares authorized: | 59 | 59 |
Common stock, $.001 par value; 192,998,329 & 193,000,000 shares authorized; 54,883,445 and 54,701,708 shares issued and outstanding | 54,883 | 54,702 |
Treasury stock, at cost, 13,200 shares | -8,390 | -8,390 |
Additional paid-in capital | 82,213,811 | 81,959,853 |
Accumulated deficit | -58,836,318 | -58,050,456 |
Total shareholders' equity | 23,424,045 | 23,955,768 |
Total liabilities and shareholders' equity | 25,539,315 | 26,549,255 |
Series A Preferred Stock [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock, $.001 par value; 7,001,671 shares authorized: | ' | ' |
Series B Preferred Stock [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock, $.001 par value; 7,001,671 shares authorized: | 59 | 59 |
Series C Preferred Stock [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock, $.001 par value; 7,001,671 shares authorized: | ' | ' |
Series D Preferred Stock [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock, $.001 par value; 7,001,671 shares authorized: | ' | ' |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Accounts receivable, allowance for doubtful accounts | $27,286 | $38,607 |
Preferred stock, par or stated value per share | $0.00 | $0.00 |
Preferred stock, shares authorized | 7,001,671 | 7,001,671 |
Common stock, par value per share | $0.00 | $0.00 |
Common stock, shares authorized | 192,998,329 | 193,000,000 |
Common stock, shares issued | 54,883,445 | 54,701,708 |
Common stock, shares outstanding | 54,883,445 | 54,701,708 |
Treasury stock, shares | 13,200 | 13,200 |
Series A Preferred Stock [Member] | ' | ' |
Preferred stock, par or stated value per share | $0.00 | $0.00 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Series B Preferred Stock [Member] | ' | ' |
Preferred stock, par or stated value per share | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 59,065 | 59,065 |
Preferred stock, shares outstanding | 59,065 | 59,065 |
Series C Preferred Stock [Member] | ' | ' |
Preferred stock, par or stated value per share | $0.00 | $0.00 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Series D Preferred Stock [Member] | ' | ' |
Preferred stock, par or stated value per share | $0.00 | $0.00 |
Preferred stock, shares authorized | 1,671 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares issued | 0 | 0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Consolidated Statements of Operations [Abstract] | ' | ' |
Product sales, net | $1,042,101 | $1,049,915 |
Cost of product sales | 1,096,903 | 1,127,223 |
Gross loss | -54,802 | -77,308 |
Operating expenses: | ' | ' |
Research and development expenses | 176,610 | 146,990 |
Sales and marketing expenses | 353,743 | 359,185 |
General and administrative expenses | 575,951 | 651,036 |
Total operating expenses | 1,106,304 | 1,157,211 |
Operating loss | -1,161,106 | -1,234,519 |
Non-operating income (expense): | ' | ' |
Interest income | 72,695 | 354 |
Change in fair value of warrant derivative liability | 306,000 | -36,000 |
Financing and interest expense | -3,451 | -741 |
Non-operating income (expense), net | 375,244 | -36,387 |
Net loss | -785,862 | -1,270,906 |
Preferred stock deemed dividends (Note 10) | ' | -726,378 |
Preferred stock dividends | -2,658 | -2,658 |
Net loss applicable to common shareholders | ($788,520) | ($1,999,942) |
Basic and diluted loss per share | ($0.01) | ($0.06) |
Weighted average shares used in computing net loss per share: | ' | ' |
Basic and diluted | 54,868,053 | 35,921,712 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($785,862) | ($1,270,906) |
Adjustments to reconcile net loss to net cash used by operating activities: | ' | ' |
Allowance for doubtful accounts | -11,321 | -5,001 |
Depreciation and amortization of fixed assets | 169,970 | 176,314 |
Amortization of deferred financing costs and other assets | 7,734 | 7,685 |
Change in fair value of derivative warrant liabilities | -306,000 | 36,000 |
Accretion of asset retirement obligation | 19,644 | 17,960 |
Share-based compensation | 21,453 | 38,353 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable, gross | -37,889 | -33,475 |
Inventory | -47,742 | -30,673 |
Other receivables | 47,824 | 2,209 |
Prepaid expenses and other current assets | -46,136 | -7,524 |
Accounts payable and accrued expenses | -65,167 | 220,824 |
Accrued protocol expense | 14,029 | -16,999 |
Accrued radioactive waste disposal | 12,000 | 12,000 |
Accrued payroll and related taxes | -130,779 | -42,486 |
Accrued vacation | -4,944 | 3,698 |
Net cash used by operating activities | -1,143,186 | -892,021 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of fixed assets | -7,453 | -2,041 |
Additions to licenses and other assets | -2,296 | -2,572 |
Purchases of short-term investments | -22,355 | ' |
Purchases of investments - other | -4,645,139 | ' |
Change in restricted cash | -13 | -18 |
Net cash used by investing activities | -4,677,256 | -4,631 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from sales of preferred stock, pursuant to underwritten offering, net | ' | 1,479,431 |
Proceeds from sales of common stock, pursuant to underwritten offering, net | ' | 1,801,457 |
Proceeds from sales of common stock, pursuant to exercise of warrants | 70,411 | ' |
Proceeds from sales of common stock, pursuant to exercise of options | 145,275 | ' |
Net cash provided by financing activities | 215,686 | 3,280,888 |
Net increase (decrease) in cash and cash equivalents | -5,604,756 | 2,384,236 |
Cash and cash equivalents, beginning of year | 7,680,073 | 2,899,927 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 2,075,317 | 5,284,163 |
Non-cash investing and financing activities: | ' | ' |
Preferred stock deemed dividends (Note 10) | ' | -726,378 |
Reclassification of derivative warrant liability to equity upon exercise | -17,000 | ' |
Total non-cash investing and financing activities | ($17,000) | ($726,378) |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Sep. 30, 2014 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
1. Basis of Presentation | |
The accompanying unaudited interim consolidated financial statements are those of IsoRay, Inc., and its wholly-owned subsidiaries (IsoRay or the Company). All significant intercompany accounts and transactions have been eliminated in | |
consolidation. Certain amounts in the prior-period financial statements have been reclassified to conform to the current-year presentation. | |
In the opinion of management, the accompanying unaudited interim consolidated financial statements and notes to the interim consolidated financial statements contain all adjustments, consisting of normal recurring items, necessary to | |
present fairly, in all material respects, the financial position of IsoRay, Inc. and its wholly-owned subsidiaries. These unaudited interim consolidated financial statements should be read in conjunction with our audited consolidated financial | |
statements and related footnotes as set forth in the Company's annual report filed on Form 10-K for the year ended June 30, 2014. | |
The results of operations for the periods presented may not be indicative of those which may be expected for a full year. The unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the | |
Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been | |
condensed or omitted pursuant to those rules and regulations, although we believe that the disclosures are adequate for the information not to be misleading. | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, the reported | |
amounts of revenues and expenses during the reporting period and the disclosures of contingent liabilities. Accordingly, ultimate results could differ materially from those estimates. The Company anticipates that as the result of continuing | |
operating losses and the significant net operating losses available from prior fiscal years, its effective income tax rate for fiscal year 2015 will be 0%. | |
New_Accounting_Pronouncements
New Accounting Pronouncements | 3 Months Ended | ||
Sep. 30, 2014 | |||
New Accounting Pronouncements [Abstract] | ' | ||
New Accounting Pronouncements | ' | ||
2 | New Accounting Pronouncements | ||
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, "Revenue from Contracts with Customers" (ASU 2014-09), which supersedes the revenue recognition requirements in FASB Accounting Standards Codification (ASC) Topic 605, "Revenue Recognition". The guidance requires that an entity recognize revenue in a way that depicts the transfer of promised goods or services to customers in the amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods and services. The guidance will be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted. The Company is currently evaluating the new standard and its impact on the Company's consolidated financial statements. | |||
In August 2014, the FASB issued ASU No. 2014-15—Presentation of Financial Statements—Going Concern. The guidance requires an entity's management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). If conditions or events exist that raise substantial doubt about an entity's ability to continue as a going concern, the guidance requires disclosure in the financial statements. The guidance will be effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently evaluating the new standard and its impact on the Company's consolidated financial statements. |
Investments
Investments | 3 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Investments [Abstract] | ' | ||||||||||||||||
Investments | ' | ||||||||||||||||
3 | Investments | ||||||||||||||||
Remaining time | Under 90 | 91 days to | Six months to | ||||||||||||||
to maturity | days | six months | 1 year | 1 to 3 years | |||||||||||||
CDARS1 | $ | 5,007,821 | $ | - | $ | 5,017,446 | $ | 10,046,537 | |||||||||
1- | |||||||||||||||||
Certificate of Deposit Account Registry Service (CDARS) is a system method by which the Company may access multi-million-dollar Certificates of Deposit (CDs) deposits in principal and interest amounts that are fully insured by the Federal Deposit Insurance Corporation (FDIC) with original maturities that were greater than three months and up to three years at the time of purchase. | |||||||||||||||||
Loss_Per_Share
Loss Per Share | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Loss Per Share [Abstract] | ' | ||||||||
Earnings Per Share [Text Block] | ' | ||||||||
4 | Loss per Share | ||||||||
Basic earnings per share is calculated by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding, and does not include the impact of any potentially dilutive common stock equivalents. At September 30, 2014 and 2013, the calculation of diluted weighted average shares did not include convertible preferred stock, common stock warrants, or options that are potentially convertible into common stock as those would be antidilutive due to the Company's net loss position. | |||||||||
Securities not considered in the calculation of diluted weighted average shares, but that could be dilutive in the future as of September 30, 2014 and 2013, were as follows: | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Series B preferred stock | 59,065 | 59,065 | |||||||
Series D preferred stock | - | 3,121,481 | |||||||
Common stock warrants | 396,574 | 7,605,771 | |||||||
Common stock options | 2,180,858 | 2,370,072 | |||||||
Total potential dilutive securities | 2,636,497 | 13,156,389 |
Inventory
Inventory | 3 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Inventory [Abstract] | ' | |||||||||||||
Inventory | ' | |||||||||||||
5. Inventory | ||||||||||||||
Inventory consisted of the following at September 30, 2014 and June 30, 2014: | ||||||||||||||
September 30, | June 30, | |||||||||||||
2014 | 2014 | |||||||||||||
Raw materials | $ | 189,768 | $ | 173,417 | ||||||||||
Work in process | 173,996 | 151,321 | ||||||||||||
Finished goods | 43,715 | 34,999 | ||||||||||||
$ | 407,479 | $ | 359,737 |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Share-Based Compensation [Abstract] | ' | ||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||
6 | Share-Based Compensation | ||||||||||||||||
The following table presents the share-based compensation expense recognized during the three months ended September 30, 2014 and 2013: | |||||||||||||||||
Three months | |||||||||||||||||
ended September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Cost of product sales | $ | 7,972 | $ | 4,422 | |||||||||||||
Research and development expenses | 3,117 | 3,482 | |||||||||||||||
Sales and marketing expenses | 2,158 | 879 | |||||||||||||||
General and administrative expenses | 8,206 | 29,570 | |||||||||||||||
Total share-based compensation | $ | 21,453 | $ | 38,353 | |||||||||||||
As of September 30, 2014, total unrecognized compensation expense related to stock-based options was $319,044 and the related weighted-average period over which it is expected to be recognized is approximately 2.15 years. | |||||||||||||||||
A summary of stock options within the Company's share-based compensation plans as of September 30, 2014 were as follows: | |||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Average | Average | ||||||||||||||||
Exercise | Remaining | Aggregate | |||||||||||||||
Number of | Price | Contractual | Intrinsic | ||||||||||||||
Options | (Years) | Term | Value | ||||||||||||||
Outstanding at September 30, 2014 | 2,180,858 | $ | 2.05 | 4.45 | $ | 933,618 | |||||||||||
Vested and expected to vest at September 30, 2014 | 2,112,233 | $ | 2.07 | 4.36 | $ | 896,932 | |||||||||||
Vested and exercisable at September 30, 2014 | 1,760,312 | $ | 2.15 | 3.52 | $ | 774,655 | |||||||||||
There were 133,564 options exercised during the three months ended September 30, 2014 and no options exercised during the three months ended September 30, 2013. The Company's current policy is to issue new shares to satisfy option exercises. The intrinsic value of the employee options exercised in the three months ended September 30, 2014 was $252,308. | |||||||||||||||||
There were no stock option awards granted and 65,000 stock option awards granted during the three months ended September 30, 2014 and 2013, respectively. | |||||||||||||||||
There were 50,000 director stock options issued to the Chief Executive Officer and Chairman on September 5, 2013 with an exercise price of $0.58 per share which was the closing price of the Company common stock on the day of issuance. The fair value of the stock options issued on September 5, 2013 using the Black Scholes option pricing model was $25,150 utilizing the closing price on the day of grant of $0.58 per share as the grant and exercise price, a five year term, volatility of 132.31% and a discount rate of 1.85%. | |||||||||||||||||
There were 15,000 employee stock options issued to three members of management on September 6, 2013 with an exercise price of $0.59 per share which was the closing price of the Company common stock on the day of issuance. The fair value of the stock options issued on September 6, 2013 using the Black Scholes model was $6,906 utilizing the closing price on the day of grant of $0.59 per share as the grant and exercise price, a five year term, volatility of 132.31% and a discount rate of 1.77%. | |||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |
Sep. 30, 2014 | ||
Commitments and Contingencies [Abstract] | ' | |
Commitments and Contingencies | ' | |
7 | Commitments and Contingencies | |
Patent and Know-How Royalty License Agreement | ||
The Company is the holder of an exclusive license to use certain “know-how” developed by one of the founders of a predecessor to the Company and licensed to the Company by the Lawrence Family Trust, a Company shareholder. The terms of this license agreement require the payment of a royalty based on the Net Factory Sales Price, as defined in the agreement, of licensed product sales. Because the licensor's patent application was ultimately abandoned, only a 1% “know-how” royalty based on Net Factory Sales Price, as defined in the agreement, remains applicable. To date, management believes that there have been no product sales incorporating the “know-how” and therefore no royalty is due pursuant to the terms of the agreement. Management believes that ultimately no royalties should be paid under this agreement as there is no intent to use this “know-how” in the future. | ||
The licensor of the “know-how” has disputed management's contention that it is not using this “know-how”. On September 25, 2007 and again on October 31, 2007, the Company participated in nonbinding mediation regarding this matter; however, no settlement was reached with the Lawrence Family Trust. After additional settlement discussions, which ended in April 2008, the parties failed to reach a settlement. The parties may demand binding arbitration at any time. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||
Fair Value Measurements | ' | ||||||||||
8. Fair Value Measurements | |||||||||||
The table below sets forth the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2014 and June 30, 2014, respectively, and the fair value calculation input hierarchy level the Company has determined applies to each asset and liability category. | |||||||||||
Balance at | Balance at | Input | |||||||||
Description | 30-Sep-14 | 30-Jun-14 | Hierarchy Level | ||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 2,075,317 | $ | 7,680,073 | Level 1 | ||||||
Restricted cash | 181,221 | 181,208 | Level 1 | ||||||||
Liabilities: | |||||||||||
Warrant derivative liability | $ | 250,000 | $ | 573,000 | Level 2 |
Preferred_Dividends
Preferred Dividends | 3 Months Ended | ||
Sep. 30, 2014 | |||
Preferred Dividends [Abstract] | ' | ||
Preferred Dividends | ' | ||
9 | Preferred Dividends | ||
On December 19, 2013, the Board of Directors declared a dividend on the Series B Preferred Stock of all currently payable and accrued outstanding and cumulative dividends through December 31, 2013 in the amount of $10,632. The dividends outstanding and cumulative through December 31, 2013 of $10,632 and through December 31, 2012 of $10,632 were paid as of those dates. | |||
As of September 30, 2014, there were accrued but undeclared dividends on Series B Preferred Stock outstanding in the amount of $7,974. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Shareholders' Equity [Abstract] | ' | |||||||||||||||||||||||
Shareholders' Equity | ' | |||||||||||||||||||||||
10 | Shareholders' Equity | |||||||||||||||||||||||
Common and preferred stock transactions | ||||||||||||||||||||||||
On August 29, 2013, the Company entered into an agreement to sell 3,800,985 common units, each consisting of 1 share of our common stock and a warrant to purchase 0.816 shares of common stock (the “Common Units”), and 1,670 preferred units, each consisting of 1 share of Series D Convertible Preferred Stock and a warrant to purchase 1,525.23 shares of common stock (the “Preferred Units”) on a firm commitment underwritten basis. The Common Units were sold at a per unit purchase price of $0.535 and the Preferred Units were sold at a per unit purchase price of $1,000. The warrants are all exercisable at $0.72 per share and have a twenty-four month term. Each share of the Series D Convertible Preferred Stock is convertible into 1,869.15 shares of common stock at any time at the option of the holder, subject to adjustment. The preferred shares which were convertible into shares of common stock contained a beneficial conversion feature of $726,378 which was recognized as a deemed dividend to the Series D preferred shareholders on the date of issuance. This public offering resulted in gross proceeds of $3.7 million. The offering yielded approximately $3,279,292 in cash after expenses. | ||||||||||||||||||||||||
Gross proceeds from public offering | $ | 3,703,527 | ||||||||||||||||||||||
Underwriter discount | (185,176 | ) | ||||||||||||||||||||||
Legal and accounting expense | (184,514 | ) | ||||||||||||||||||||||
Listing expense | (48,500 | ) | ||||||||||||||||||||||
Other expense | (6,045 | ) | ||||||||||||||||||||||
Net proceeds | $ | 3,279,292 | ||||||||||||||||||||||
Warrant derivative liability and related offering cost deferral | ||||||||||||||||||||||||
Based on the guidance contained in ASC 815 “Derivatives and Hedging”, management has concluded that the warrants issued in the October 13, 2011 underwritten registered offering of 2,500,000 shares of common stock should be classified as a derivative liability and has recorded a liability at fair value. The Company determined the fair value of the warrants using the Black-Scholes fair value model. The Company determined the fair value of the warrants on the date of the offering to be as disclosed in the tables below. The Company has recognized a change in the fair value as described in the table below: | ||||||||||||||||||||||||
Three months ended | Three months ended | |||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | |||||||||||||||||||||||
Change in fair value of warrant derivative liability: | $ | (306,000 | ) | $ | 36,000 | |||||||||||||||||||
Purchaser and underwriter warrants issued in October 2011 and December 2011: | ||||||||||||||||||||||||
Three months ended | Three months ended | |||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | |||||||||||||||||||||||
Qty1 | Amount | Qty1 | Amount | |||||||||||||||||||||
Balance, beginning of period | 238,296 | $ | 573,000 | 713,601 | $ | 104,000 | ||||||||||||||||||
Change in fair value | (306,000 | ) | 36,000 | |||||||||||||||||||||
Warrants exercised | (8,435 | ) | (17,000 | ) | - | |||||||||||||||||||
Balance, end of period | 229,861 | $ | 250,000 | 713,601 | $ | 140,000 | ||||||||||||||||||
Total fair value of warrant derivative liability at period end: | $ | 250,000 | $ | 140,000 | ||||||||||||||||||||
1 | ||||||||||||||||||||||||
Quantity of warrants either issued or outstanding as of the date of valuation. | ||||||||||||||||||||||||
Warrants | ||||||||||||||||||||||||
The following table summarizes the warrants outstanding as of the beginning of the fiscal year, warrants exercised and warrants issued during the year and weighted average prices for each category. | ||||||||||||||||||||||||
Weighted average | ||||||||||||||||||||||||
Warrants | exercise price | |||||||||||||||||||||||
Outstanding as of June 30, 2014 | 444,747 | $ | 1.43 | |||||||||||||||||||||
Warrants exercised | (48,173 | ) | 1.45 | |||||||||||||||||||||
Outstanding as of September 30, 2014 | 396,574 | $ | 1.22 | |||||||||||||||||||||
Warrants Outstanding as of September 30, 2014 | ||||||||||||||||||||||||
Quantity | Expiration date | Exercise Price | ||||||||||||||||||||||
6,000 | 8-Jun-15 | $ | 1.18 | |||||||||||||||||||||
25,000 | 27-Jul-15 | 2 | ||||||||||||||||||||||
130,713 | 21-Nov-15 | 1.56 | ||||||||||||||||||||||
204,211 | 19-Oct-16 | 0.944 | ||||||||||||||||||||||
25,650 | December 7 2016 | 0.944 | ||||||||||||||||||||||
5,000 | 27-Jun-17 | $ | 0.98 | |||||||||||||||||||||
396,574 | Total | |||||||||||||||||||||||
Related_Party_Transaction
Related Party Transaction | 3 Months Ended | |
Sep. 30, 2014 | ||
Related Party Transaction [Abstract] | ' | |
Related Party Transaction | ' | |
11 | Related Party Transaction | |
During the three months ended September 30, 2014 and 2013, the Company continued to engage the services of APEX Data Systems, Inc., owned by Dwight Babcock, the Company's Chairman and Chief Executive Officer, to modify and maintain the Company's web interfaced data collection application to aggregate patient data in a controlled environment. The cost recorded during the three months ended September 30, 2014 and 2013 from APEX Data Systems, Inc. for the maintenance of the web interfaced data collection applications in combination with the updating of the Company website was $3,000 and $4,120 respectively. An additional $3,000 was spent on the implementation of Customer Relationship Management (CRM) software in the three months ended September 30, 2013. |
Investments_Tables
Investments (Tables) | 3 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Investments [Abstract] | ' | ||||||||||||||||
Schedule of Investments | ' | ||||||||||||||||
Remaining time | Under 90 | 91 days to | Six months to | ||||||||||||||
to maturity | days | six months | 1 year | 1 to 3 years | |||||||||||||
CDARS1 | $ | 5,007,821 | $ | - | $ | 5,017,446 | $ | 10,046,537 | |||||||||
1- | |||||||||||||||||
Certificate of Deposit Account Registry Service (CDARS) is a system method by which the Company may access multi-million-dollar Certificates of Deposit (CDs) deposits in principal and interest amounts that are fully insured by the Federal Deposit Insurance Corporation (FDIC) with original maturities that were greater than three months and up to three years at the time of purchase. |
Loss_Per_Share_Tables
Loss Per Share (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Loss Per Share [Abstract] | ' | ||||||||
Schedule of Antidilutive Securities Excluded from Computation of Loss per Share | ' | ||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Series B preferred stock | 59,065 | 59,065 | |||||||
Series D preferred stock | - | 3,121,481 | |||||||
Common stock warrants | 396,574 | 7,605,771 | |||||||
Common stock options | 2,180,858 | 2,370,072 | |||||||
Total potential dilutive securities | 2,636,497 | 13,156,389 |
Inventory_Tables
Inventory (Tables) | 3 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Inventory [Abstract] | ' | |||||||||||||
Schedule of Components of Inventory | ' | |||||||||||||
Inventory consisted of the following at September 30, 2014 and June 30, 2014: | ||||||||||||||
September 30, | June 30, | |||||||||||||
2014 | 2014 | |||||||||||||
Raw materials | $ | 189,768 | $ | 173,417 | ||||||||||
Work in process | 173,996 | 151,321 | ||||||||||||
Finished goods | 43,715 | 34,999 | ||||||||||||
$ | 407,479 | $ | 359,737 |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Share-Based Compensation [Abstract] | ' | ||||||||||||||||
Schedule of Share-Based Compensation Expense | ' | ||||||||||||||||
Three months | |||||||||||||||||
ended September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Cost of product sales | $ | 7,972 | $ | 4,422 | |||||||||||||
Research and development expenses | 3,117 | 3,482 | |||||||||||||||
Sales and marketing expenses | 2,158 | 879 | |||||||||||||||
General and administrative expenses | 8,206 | 29,570 | |||||||||||||||
Total share-based compensation | $ | 21,453 | $ | 38,353 | |||||||||||||
Schedule of Stock Option Within Share-Based Compensation Plans | ' | ||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Average | Average | ||||||||||||||||
Exercise | Remaining | Aggregate | |||||||||||||||
Number of | Price | Contractual | Intrinsic | ||||||||||||||
Options | (Years) | Term | Value | ||||||||||||||
Outstanding at September 30, 2014 | 2,180,858 | $ | 2.05 | 4.45 | $ | 933,618 | |||||||||||
Vested and expected to vest at September 30, 2014 | 2,112,233 | $ | 2.07 | 4.36 | $ | 896,932 | |||||||||||
Vested and exercisable at September 30, 2014 | 1,760,312 | $ | 2.15 | 3.52 | $ | 774,655 |
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 3 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | ||||||||||
Balance at | Balance at | Input | |||||||||
Description | 30-Sep-14 | 30-Jun-14 | Hierarchy Level | ||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 2,075,317 | $ | 7,680,073 | Level 1 | ||||||
Restricted cash | 181,221 | 181,208 | Level 1 | ||||||||
Liabilities: | |||||||||||
Warrant derivative liability | $ | 250,000 | $ | 573,000 | Level 2 |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Shareholders' Equity [Abstract] | ' | |||||||||||||||||||||||
Schedule of Proceeds from Common Stock Offering | ' | |||||||||||||||||||||||
Gross proceeds from public offering | $ | 3,703,527 | ||||||||||||||||||||||
Underwriter discount | (185,176 | ) | ||||||||||||||||||||||
Legal and accounting expense | (184,514 | ) | ||||||||||||||||||||||
Listing expense | (48,500 | ) | ||||||||||||||||||||||
Other expense | (6,045 | ) | ||||||||||||||||||||||
Net proceeds | $ | 3,279,292 | ||||||||||||||||||||||
Schedule of Fair Value of Warrants | ' | |||||||||||||||||||||||
Three months ended | Three months ended | |||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | |||||||||||||||||||||||
Change in fair value of warrant derivative liability: | $ | (306,000 | ) | $ | 36,000 | |||||||||||||||||||
Purchaser and underwriter warrants issued in October 2011 and December 2011: | ||||||||||||||||||||||||
Three months ended | Three months ended | |||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | |||||||||||||||||||||||
Qty1 | Amount | Qty1 | Amount | |||||||||||||||||||||
Balance, beginning of period | 238,296 | $ | 573,000 | 713,601 | $ | 104,000 | ||||||||||||||||||
Change in fair value | (306,000 | ) | 36,000 | |||||||||||||||||||||
Warrants exercised | (8,435 | ) | (17,000 | ) | - | |||||||||||||||||||
Balance, end of period | 229,861 | $ | 250,000 | 713,601 | $ | 140,000 | ||||||||||||||||||
Total fair value of warrant derivative liability at period end: | $ | 250,000 | $ | 140,000 | ||||||||||||||||||||
1 | ||||||||||||||||||||||||
Quantity of warrants either issued or outstanding as of the date of valuation. | ||||||||||||||||||||||||
Schedule of Warrants Activity | ' | |||||||||||||||||||||||
Weighted average | ||||||||||||||||||||||||
Warrants | exercise price | |||||||||||||||||||||||
Outstanding as of June 30, 2014 | 444,747 | $ | 1.43 | |||||||||||||||||||||
Warrants exercised | (48,173 | ) | 1.45 | |||||||||||||||||||||
Outstanding as of September 30, 2014 | 396,574 | $ | 1.22 | |||||||||||||||||||||
Schedule of Additional Information about Warrants Outstanding | ' | |||||||||||||||||||||||
Quantity | Expiration date | Exercise Price | ||||||||||||||||||||||
6,000 | 8-Jun-15 | $ | 1.18 | |||||||||||||||||||||
25,000 | 27-Jul-15 | 2 | ||||||||||||||||||||||
130,713 | 21-Nov-15 | 1.56 | ||||||||||||||||||||||
204,211 | 19-Oct-16 | 0.944 | ||||||||||||||||||||||
25,650 | December 7 2016 | 0.944 | ||||||||||||||||||||||
5,000 | 27-Jun-17 | $ | 0.98 | |||||||||||||||||||||
396,574 | Total |
Basis_of_Presentation_Details
Basis of Presentation (Details) | 12 Months Ended |
Jun. 30, 2015 | |
Basis of Presentation [Abstract] | ' |
Anticipated effective income tax rate, FY 2015 | 0.00% |
Investments_Details
Investments (Details) (USD $) | Sep. 30, 2014 | |
Under 90 Days [Member] | ' | |
Summary of Investment Holdings [Line Items] | ' | |
Investments | $5,007,821 | [1] |
91 Days to Six Months [Member] | ' | |
Summary of Investment Holdings [Line Items] | ' | |
Investments | ' | [1] |
Six Months to 1 Year [Member] | ' | |
Summary of Investment Holdings [Line Items] | ' | |
Investments | 5,017,446 | [1] |
1 to 3 Years [Member] | ' | |
Summary of Investment Holdings [Line Items] | ' | |
Investments | $10,046,537 | [1] |
[1] | Certificate of Deposit Account Registry Service (CDARS) is a system method by which the Company may access multi-million-dollar Certificates of Deposit (CDs) deposits in principal and interest amounts that are fully insured by the Federal Deposit Insurance Corporation (FDIC) with original maturities that were greater than three months and up to three years at the time of purchase. |
Loss_Per_Share_Details
Loss Per Share (Details) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potential dilutive securities | 2,636,497 | 13,156,389 |
Series B Preferred Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potential dilutive securities | 59,065 | 59,065 |
Series D Preferred Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potential dilutive securities | ' | 3,121,481 |
Warrant [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potential dilutive securities | 396,574 | 7,605,771 |
Common Stock Options [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potential dilutive securities | 2,180,858 | 2,370,072 |
Inventory_Details
Inventory (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Inventory [Abstract] | ' | ' |
Raw materials | $189,768 | $173,417 |
Work in process | 173,996 | 151,321 |
Finished goods | 43,715 | 34,999 |
Total inventory | $407,479 | $359,737 |
ShareBased_Compensation_Schedu
Share-Based Compensation (Schedule of Share-Based Compensation Expense) (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share-based compensation | $21,453 | $38,353 |
Cost of Product Sales [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share-based compensation | 7,972 | 4,422 |
Research and Development Expenses [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share-based compensation | 3,117 | 3,482 |
Sales and Marketing Expenses [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share-based compensation | 2,158 | 879 |
General and Administration Expenses [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Share-based compensation | $8,206 | $29,570 |
ShareBased_Compensation_Schedu1
Share-Based Compensation (Schedule of Stock Option Activity) (Details) (USD $) | 0 Months Ended | 3 Months Ended | ||
Sep. 05, 2013 | Sep. 06, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Number of Options | ' | ' | ' | ' |
Outstanding at September 30, 2014 | ' | ' | 2,180,858 | ' |
Vested and expected to vest at September 30, 2014 | ' | ' | 2,112,233 | ' |
Vested and exercisable at September 30, 2014 | ' | ' | 1,760,312 | ' |
Weighted Average Exercise Price | ' | ' | ' | ' |
Outstanding at September 30, 2014 | ' | ' | $2.05 | ' |
Vested and expected to vest at September 30, 2014 | ' | ' | $2.07 | ' |
Vested and exercisable at September 30, 2014 | ' | ' | $2.15 | ' |
Weighted Average Remaining Contractual Term | ' | ' | ' | ' |
Outstanding at September 30, 2014 | ' | ' | '4 years 5 months 12 days | ' |
Vested and expected to vest at September 30, 2014 | ' | ' | '4 years 4 months 10 days | ' |
Vested and exercisable at September 30, 2014 | ' | ' | '3 years 6 months 7 days | ' |
Average Intrinsic Value | ' | ' | ' | ' |
Outstanding at September 30, 2014 | ' | ' | $933,618 | ' |
Vested and expected to vest at September 30, 2014 | ' | ' | 896,932 | ' |
Vested and exercisable at September 30, 2014 | ' | ' | 774,655 | ' |
Options exercised | ' | ' | 133,564 | ' |
Aggregate intrinsic value of option exercised | ' | ' | 252,308 | ' |
Stock options granted | 50,000 | 15,000 | ' | 65,000 |
Stock options issued, exercise price | $0.58 | $0.59 | ' | ' |
Fair value of stock options granted | $25,150 | $6,906 | ' | ' |
Exercise price | $0.58 | $0.59 | ' | ' |
Expected term | '5 years | '5 years | ' | ' |
Volatility | 132.31% | 132.31% | ' | ' |
Discount rate | 1.85% | 1.77% | ' | ' |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended |
Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized compensation expense related to stock-based options and awards | $319,044 |
Unrecognized compensation expense related to stock-based options and awards, weighted-average recognition period | '2 years 1 month 24 days |
Commitments_and_Contingencies_
Commitments and Contingencies (Royalty Agreements) (Details) | Sep. 30, 2014 |
Commitments and Contingencies [Abstract] | ' |
Percentage of royalty payment | 1.00% |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | $2,075,317 | $7,680,073 |
Restricted cash | 181,221 | 181,208 |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Warrant derivative liability | $250,000 | $573,000 |
Preferred_Dividends_Details
Preferred Dividends (Details) (Series B Preferred Stock [Member], USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Series B Preferred Stock [Member] | ' | ' | ' |
Dividends Payable [Line Items] | ' | ' | ' |
Accrued but undeclared dividends | $7,974 | ' | ' |
Preferred dividends paid | ' | $10,632 | $10,632 |
Shareholders_Equity_Common_and
Shareholders' Equity (Common and Preferred Stock Offerings) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||||
Aug. 29, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Aug. 29, 2013 | Aug. 29, 2013 | Aug. 29, 2013 | Dec. 31, 2011 | Aug. 29, 2013 | |
Common Unit Warrants [Member] | Preferred Unit Warrants [Member] | Common Stock [Member] | Common Stock [Member] | Series D Preferred Stock [Member] | |||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock pursuant to underwritten public offering, net, shares | ' | ' | ' | ' | ' | ' | 3,800,985 | 2,500,000 | 1,670 |
Number of shares covered by each warrant | ' | ' | ' | ' | 0.816 | ' | ' | ' | ' |
Number of shares number of shares covered by warrant | ' | ' | ' | ' | ' | 1,525.23 | ' | ' | ' |
Stock issued, price per share | ' | ' | ' | ' | $0.72 | $0.72 | $0.54 | ' | $1,000 |
Warrants issued, exercise price | ' | $1.22 | ' | $1.43 | ' | ' | ' | ' | ' |
Warrant term | ' | ' | ' | ' | '24 months | '24 months | ' | ' | ' |
Number of common shares issuable upon conversion | ' | ' | ' | ' | ' | ' | ' | ' | 1,869.15 |
Beneficial conversion feature | $726,378 | ' | $726,378 | ' | ' | ' | ' | ' | ' |
Gross cash proceeds | 3,703,527 | ' | ' | ' | ' | ' | ' | ' | ' |
Underwriter discount | -185,176 | ' | ' | ' | ' | ' | ' | ' | ' |
Legal and accounting expense | -184,514 | ' | ' | ' | ' | ' | ' | ' | ' |
Listing expense | -48,500 | ' | ' | ' | ' | ' | ' | ' | ' |
Other expense | -6,045 | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds | $3,279,292 | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholders_Equity_Schedule_o
Shareholders' Equity (Schedule of Derivative Warrant Liability) (Details) (USD $) | 3 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | |||
Class of Warrant or Right [Line Items] | ' | ' | ||
Balance, beginning of period | 444,747 | ' | ||
Warrants exercised | -48,173 | ' | ||
Balance, end of period | 396,574 | ' | ||
Value of warrants issued: | ' | ' | ||
Change in fair value | ($306,000) | $36,000 | ||
Balance, end of period | 250,000 | 140,000 | ||
Derivative Warrants [Member] | ' | ' | ||
Class of Warrant or Right [Line Items] | ' | ' | ||
Balance, beginning of period | 238,296 | [1] | 713,601 | [1] |
Warrants exercised | -8,435 | [1] | ' | |
Balance, end of period | 229,861 | [1] | 713,601 | [1] |
Value of warrants issued: | ' | ' | ||
Balance, beginning of period | 573,000 | 104,000 | ||
Change in fair value | -306,000 | 36,000 | ||
Warrants exercised | -17,000 | ' | ||
Balance, end of period | $250,000 | $140,000 | ||
[1] | Quantity of warrants either issued or outstanding as of the date of valuation. |
Shareholders_Equity_Schedule_o1
Shareholders' Equity (Schedule of Warrant Activity) (Details) (USD $) | 3 Months Ended |
Sep. 30, 2014 | |
Warrants | ' |
Balance, beginning of period | 444,747 |
Warrants exercised | -48,173 |
Balance, end of period | 396,574 |
Price | ' |
Beginning balance outstanding | $1.43 |
Warrants exercised | $1.45 |
Ending balance outstanding | $1.22 |
Shareholders_Equity_Additional
Shareholders' Equity (Additional Information about Warrants) (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Range of Exercise Price One [Member] | Range of Exercise Price Two [Member] | Range of Exercise Price Three [Member] | Range of Exercise Price Four [Member] | Range of Exercise Price Five [Member] | Range of Exercise Price Six [Member] | |||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Warrants | 396,574 | 444,747 | 6,000 | 25,000 | 130,713 | 204,211 | 25,650 | 5,000 |
Range of Exercise Prices | $1.22 | $1.43 | $1.18 | $2 | $1.56 | $0.94 | $0.94 | $0.98 |
Expiration Date | ' | ' | '2015-06 | '2015-07 | '2015-11 | '2016-10 | '2016-12 | '2017-06 |
Related_Party_Transaction_Deta
Related Party Transaction (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Related Party Transaction [Line Items] | ' | ' |
Maintenance costs | $3,000 | $4,120 |
Software implementation costs | ' | $3,000 |