Palatin (PTN) 10-K 19 Sep 16 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2016	Sep. 16, 2016	Dec. 31, 2015
Document And Entity Information
Entity Registrant Name	PALATIN TECHNOLOGIES INC
Entity Central Index Key	911,216
Document Type	10-K
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 44,069,665
Entity Common Stock, Shares Outstanding		85,934,037
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Current assets:
Cash and cash equivalents	$ 8,002,668	$ 27,299,268
Available-for-sale investments	1,380,556	0
Prepaid expenses and other current assets	1,424,282	1,896,747
Total current assets	10,807,506	29,196,015
Property and equipment, net	97,801	123,158
Other assets	146,428	155,279
Total assets	11,051,735	29,474,452
Current liabilities:
Accounts payable	713,890	1,106,484
Accrued expenses	7,767,733	6,223,483
Notes payable, net of discount	5,485,392	0
Capital lease obligations	27,424	25,871
Total current liabilities	13,994,439	7,355,838
Notes payable, net of discount	14,189,809	9,781,086
Capital lease obligations	14,324	41,749
Other non-current liabilities	439,130	91,304
Total liabilities	28,637,702	17,269,977
Commitments and contengencies (Note 11)
Stockholders' (deficiency) equity:
Preferred stock of $0.01 par value - authorized 10,000,000 shares; Series A Convertible; issued and outstanding 4,030 shares as of June 30, 2016 and 4,697 shares as of June 30, 2015, respectively	40	47
Common stock of $0.01 par value - authorized 300,000,000 shares; issued and outstanding 68,568,055 shares as of June 30, 2016 and 57,128,433 as of June 30, 2015, respectively	685,680	571,284
Additional paid-in capital	325,142,509	303,332,460
Accumulated other comprehensive loss	(1,944)	0
Accumulated deficit	(343,412,252)	(291,699,316)
Total stockholders' (deficiency) equity	(17,585,967)	12,204,475
Total liabilities and stockholders' equity	$ 11,051,735	$ 29,474,452

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Jun. 30, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, Series A Convertible, shares issued	4,030	4,697
Preferred stock, Series A Convertible, shares outstanding	4,030	4,697
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	68,568,055	57,128,433
Common stock, shares outstanding	68,568,055	57,128,433

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
License and contract	$ 0	$ 12,951,730	$ 0
OPERATING EXPENSES:
Research and development	43,071,051	24,560,233	10,826,921
General and administrative	6,179,084	5,677,654	4,960,731
Total operating expenses	49,250,135	30,237,887	15,787,652
Loss from operations	(49,250,135)	(17,286,157)	(15,787,652)
OTHER INCOME (EXPENSE):
Investment income	50,226	35,439	18,923
Interest expense	(2,513,027)	(661,697)	(6,211)
Foreign exchange transaction loss	0	(284,656)	0
Total other income (expense), net	(2,462,801)	(910,914)	12,712
Loss before income taxes	(51,712,936)	(18,197,071)	(15,774,940)
Income tax benefit	0	531,508	1,846,646
NET LOSS	$ (51,712,936)	$ (17,665,563)	$ (13,928,294)
Basic and diluted net loss per common share	$ (0.33)	$ (0.15)	$ (0.13)
Weighted average number of common shares outstanding used in computing basic and diluted net loss per common share	156,553,534	121,014,506	106,679,476

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Loss - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Consolidated Statement Of Comprehensive Loss
Net loss	$ (51,712,936)	$ (17,665,563)	$ (13,928,294)
Other comprehensive loss
Unrealized loss on available-for-sale investments	(1,944)	0	0
Total comprehensive loss	$ (51,714,880)	$ (17,665,563)	$ (13,928,294)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (51,712,936)	$ (17,665,563)	$ (13,928,294)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	43,052	117,590	111,906
Non-cash interest expense	327,479	87,087	0
Stock-based compensation	1,843,365	1,167,279	821,340
Changes in operating assets and liabilities:
Prepaid expenses and other assets	503,785	(1,667,139)	176,697
Accounts payable	(392,594)	845,204	(77,446)
Accrued expenses	1,676,209	4,666,196	(311,859)
Unearned revenues	0	(1,000,000)	1,000,000
Other non-current liabilities	347,826	91,304	0
Net cash used in operating activities	(47,363,814)	(13,358,042)	(12,207,656)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale/maturity of investments	0	0	5,249,654
Purchases of property and equipment	(17,695)	0	(6,239)
Purchases of investments	(1,387,022)	0	0
Net cash provided by (used in) investing activities	(1,404,717)	0	5,243,415
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on capital lease obligations	(25,872)	(12,380)	(19,909)
Payment of withholding taxes related to restricted stock units	(190,360)	(115,808)	(36,377)
Proceeds from exercise of common stock warrants	0	254,148	37,500
Proceeds from the sale of common stock and warrants, net of costs	19,834,278	18,556,111	0
Proceeds from the issuance of notes payable and warrants	10,000,000	10,000,000	0
Payment of debt issuance costs	(146,115)	(209,366)	0
Net cash provided by (used in) financing activities	29,471,931	28,472,705	(18,786)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(19,296,600)	15,114,663	(6,983,027)
CASH AND CASH EQUIVALENTS, beginning of period	27,299,268	12,184,605	19,167,632
CASH AND CASH EQUIVALENTS, end of period	8,002,668	27,299,268	12,184,605
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	1,836,743	483,306	6,211
Equipment acquired under capital lease	0	80,000	0
Issuance of warrants in connection with debt financing	$ 305,196	$ 267,820	$ 0

Consolidated Statements Shareho

Consolidated Statements Shareholders Equity - USD ($)	Preferred Stock	Common Stock	Additional Paid-In Capital	Comprehensive Loss	Accumulated Deficit	Total
Stockholders' equity (deficit) - beginning at Jun. 30, 2013	$ 47	$ 391,169	$ 282,692,520		$ (260,105,459)	$ 22,978,277
Preferred stock, shares - beginning at Jun. 30, 2013	4,697
Common stock, shares - beginning at Jun. 30, 2013		39,116,948
Exercise of warrants	$ 0	$ 500	37,000		0	37,500
Exercise of warrants, shares	0	50,000
Stock-based compensation	$ 0	$ 3,788	817,552		0	821,340
Stock-based compensation, shares	0	378,750
Payment of witholding taxes related to restricted stock units	$ 0	$ (1,291)	(118,716)		0	(120,007)
Payment of witholding taxes related to restricted stock units, shares	0	(129,103)
Comprehensive loss:
NET LOSS	$ 0	$ 0	0		(13,928,294)	(13,928,294)
Total comprehensive loss						(13,928,294)
Stockholders' equity (deficit) - ending at Jun. 30, 2014	$ 47	$ 394,166	283,428,356		(274,033,753)	$ 9,788,816
Preferred stock, shares outstanding at Jun. 30, 2014	4,697					4,697
Common stock, shares - ending at Jun. 30, 2014		39,416,595				39,416,595
Sale of common stock units, net of costs	$ 0	$ 20,500	18,535,611		0	$ 18,556,111
Sale of common stock units, net of costs, shares	0	2,050,000
Issuance of warrants on debt	$ 0	$ 0	267,820		0	267,820
Exercise of warrants	$ 0	$ 151,306	102,842		0	254,148
Exercise of warrants, shares	0	15,130,573
Stock-based compensation	$ 0	$ 7,058	1,160,221		0	1,167,279
Stock-based compensation, shares	0	705,833
Payment of witholding taxes related to restricted stock units	$ 0	$ (1,746)	(162,390)		0	(164,136)
Payment of witholding taxes related to restricted stock units, shares	0	(174,568)
Comprehensive loss:
NET LOSS	$ 0	$ 0	0		(17,665,563)	(17,665,563)
Total comprehensive loss						(17,665,563)
Stockholders' equity (deficit) - ending at Jun. 30, 2015	$ 47	$ 571,284	303,332,460		(291,699,316)	$ 12,204,475
Preferred stock, shares outstanding at Jun. 30, 2015	4,697					4,697
Common stock, shares - ending at Jun. 30, 2015		57,128,433				57,128,433
Sale of common stock units, net of costs			19,834,278			$ 19,834,278
Issuance of warrants on debt			305,196			305,196
Exercise of warrants		$ 108,909	(108,909)
Exercise of warrants, shares		10,890,889
Stock-based compensation		$ 6,622	1,836,743			1,843,365
Stock-based compensation, shares		662,186
Series A Conversion	$ (7)	$ 100	(93)
Series A Conversion, shares	(667)	10,030
Taxes withheld related to restricted stock units		$ (1,235)	(57,166)			(58,401)
Taxes withheld related to restricted stock units, shares		(123,483)
Comprehensive loss:
Unrealized loss on investments				$ (1,944)		(1,944)
NET LOSS	$ 0	$ 0	0	0	(51,712,936)	(51,712,936)
Total comprehensive loss						(51,714,880)
Stockholders' equity (deficit) - ending at Jun. 30, 2016	$ 40	$ 685,680	$ 325,142,509	$ (1,944)	$ (343,412,252)	$ (17,585,967)
Preferred stock, shares outstanding at Jun. 30, 2016	4,030					4,030
Common stock, shares - ending at Jun. 30, 2016		68,568,055				68,568,055

1. ORGANIZATION

1. ORGANIZATION	12 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
1. ORGANIZATION	Nature of Business The Company’s primary product in development is bremelanotide for the treatment of hypoactive sexual desire disorder (HSDD), which is a type of female sexual dysfunction (FSD). The Company also has drug candidates or development programs for obesity, erectile dysfunction, cardiovascular diseases, pulmonary diseases, inflammatory diseases and dermatologic diseases. Key elements of the Company’s business strategy include using its technology and expertise to develop and commercialize therapeutic products; entering into alliances and partnerships with pharmaceutical companies to facilitate the development, manufacture, marketing, sale and distribution of product candidates that the Company is developing; and partially funding its product candidate development programs with the cash flow generated from third parties. Going Concern As discussed in Note 15, on August 4, 2016, the Company closed on an underwritten offering of units resulting in gross proceeds of $9,225,000, with net proceeds, after deducting estimated offering expenses, of approximately $8,500,000. As of June 30, 2016, the Company’s cash, cash equivalents and investments were $9,383,224 and current liabilities were $13,994,439. The Company intends to utilize existing capital resources, including the proceeds from the financing for general corporate purposes and working capital, including the Phase 3 clinical trial program with bremelanotide for HSDD and preclinical and clinical development of our other product candidates and programs, including PL-3994 and melanocortin recetptor-1 and melanocortin receptor-4 programs. Management believes that the Phase 3 clinical trial program with bremelanotide, including regulatory filings for product approval, will cost at least $87,000,000. Management believes that the Company’s existing capital resources, together with approximately $8,500,000 received from the August 2016 financing, will be adequate to fund its planned operations through the quarter ending December 31, 2016. Assuming the double blind efficacy portion of the Phase 3 clinical trial of bremelanotide for HSDD is successful, as to which there can be no assurance, we will need additional funding to complete required ancillary studies and clinical trials, prepare and submit regulatory filings for product approval, and establish commercial scale manufacturing capability. The Company will need to raise additional capital to complete required ancillary studies and clinical trials, prepare and submit regulatory filings for product approval, and establish commercial scale manufacturing capability. The Company will also need additional funding to complete required clinical trials for its other product candidates and, assuming those clinical trials are successful, as to which there can be no assurance, to complete submission of required applications to the FDA. If the Company is unable to obtain approval or otherwise advance in the FDA approval process, the Company’s ability to sustain its operations would be materially adversely affected. The Company may seek the additional capital necessary to fund its operations through public or private equity offerings, collaboration agreements, debt financings or licensing arrangements. Additional capital that is required by the Company may not be available on reasonable terms, or at all. Concentrations –

2. SUMMARY OF SIGNIFICANT ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Principles of Consolidation Use of Estimates Cash and Cash Equivalents Investments The fair value of substantially all securities is determined by quoted market prices. The estimated fair value of securities for which there are no quoted market prices is based on similar types of securities that are traded in the market. Fair Value of Financial Instruments Credit Risk Property and Equipment Impairment of Long-Lived Assets Revenue Recognition Revenue resulting from license fees is recognized upon delivery of the license for the portion of the license fee payment that is non-contingent and non-refundable, if the license has standalone value. Revenue resulting from the achievement of development milestones is recorded in accordance with the accounting guidance for the milestone method of revenue recognition. Research and Development Costs Accrued Expenses – Stock-Based Compensation – Income Taxes The Company did not have a sale of New Jersey state net operating loss (NJ NOL) carryforwards during the year ended June 30, 2016 and therefore did not record a tax benefit. During the years ended June 30, 2015 and 2014, the Company sold New Jersey state net operating loss carryforwards, which resulted in the recognition of $531,508 and $1,846,646, respectively, in tax benefits. Net Loss per Common Share The Series A 2012 warrants issued on July 3, 2012 to purchase up to 31,988,151 shares of common stock are included in the weighted average number of common shares outstanding used in computing basic and diluted net loss per common share for all periods presented in the consolidated statements of operations. The Series B 2012 warrants issued on July 3, 2012 to purchase up to 35,488,380 shares of common stock are included in the weighted average number of common shares outstanding used in computing basic and diluted net loss per common share for all periods presented in the consolidated statements of operations. The Series C 2014 warrants to purchase up to 24,949,325 shares of common stock were exercisable starting at December 23, 2014 and, therefore are included in the weighted average number of common shares outstanding used in computing basic and diluted net loss per common share starting on December 23, 2014. The Series E 2015 warrants to purchase up to 21,917,808 shares of common stock were exercisable starting at July 2, 2015 and, therefore are included in the weighted average number of common shares outstanding used in computing basic and diluted net loss per common share starting on July 2, 2015. As of June 30, 2016, 2015 and 2014, there were 32,167,737, 30,212,446, and 29,358,926 common shares issuable upon conversion of Series A Convertible Preferred Stock, the exercise of outstanding options and warrants (excluding the Series A 2012, Series B 2012, Series C 2014, and Series E 2015 warrants issued in connection with the July 3, 2012, December 23, 2014, and July 2, 2015 private placement offerings), and the vesting of restricted stock units, respectively. These share amounts have been excluded from the calculation of net loss per share as the impact would be anti-dilutive.

3. NEW AND RECENTLY ADOPTED ACC

3. NEW AND RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS	12 Months Ended
	Jun. 30, 2016
New And Recently Adopted Accounting Pronouncements
3. New and recently adopted accounting pronouncements	In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In March 2016, the FASB issued ASU No. 2016-09, Compensation – Improvement to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU No. 2016-02, Leases, In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities In November 2015, the FASB issued ASU No. 2015-17 , Income Taxes: Balance Sheet Classification of Deferred Taxes In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern: Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers

4. AGREEMENT WITH GEDEON RICHTE

4. AGREEMENT WITH GEDEON RICHTER	12 Months Ended
	Jun. 30, 2016
Agreement With Gedeon Richter
4. AGREEMENT WITH GEDEON RICHTER	In August 2014, the Company entered into a license, co-development and commercialization agreement with Gedeon Richter on bremelanotide for FSD in Europe and selected countries. On September 16, 2015, the Company and Gedeon Richter mutually and amicably agreed to terminate the license, co-development and commercialization agreement. In connection with the termination of the license agreement, all rights and licenses to co-develop and commercialize bremelanotide for FSD indications granted by the Company under the license agreement to Gedeon Richter terminated and reverted to the Company, and neither party has any future material obligations under the license agreement. Neither the Company nor Gedeon Richter incurred any early termination penalties or other payment or reimbursement obligations as a result of the termination of the license agreement. The Company viewed the delivery of the license for bremelanotide as a revenue generating activity that is part of its ongoing and central operations. The other elements of the agreement with Gedeon Richter were considered non-revenue activities associated with the collaborative arrangement. The Company believes the license had standalone value from the other elements of the collaborative arrangement because it conveyed all of the rights necessary to develop and commercialize bremelanotide in the licensed territory. In August 2013, the Company received an initial payment of $1,000,000 from Gedeon Richter as a non-refundable option fee on the license, co-development and commercialization agreement, and in September 2014, the Company received €6,700,000 ($8,763,347) on execution of the definitive agreement. During the year ended June 30, 2015, the upfront payment of €7,500,000 ($9,763,347) was recorded as license revenue in the consolidated statements of operations. During the year ended June 30, 2015, the Company recorded revenue related to a milestone payment of €2,500,000 ($3,188,383) upon the initiation of the Company’s Phase 3 clinical trial program in the United States. As a result of fluctuations in the conversion rates between the Euro and the U.S. Dollar between the transaction dates and the settlement dates, the Company recorded a foreign exchange loss of $284,656 for the year ended June 30, 2015.

5. PREPAID EXPENSES AND OTHER C

5. PREPAID EXPENSES AND OTHER CURRENT ASSETS	12 Months Ended
	Jun. 30, 2016
Prepaid Expense and Other Assets, Current [Abstract]
5. PREPAID EXPENSES AND OTHER CURRENT ASSETS	Prepaid expenses June 30, 2016 June 30, 2015 Clinical study costs $1,146,975 $1,641,605 Insurance premiums 23,010 30,039 Other 254,297 225,103 $1,424,282 $1,896,747

6. INVESTMENTS

6. INVESTMENTS	12 Months Ended
	Jun. 30, 2016
Investments [Abstract]
6. INVESTMENTS	The following summarizes the carrying value of our available-for-sale investments at June 30, 2016, which consist of corporate debt securities: June 30, 2016 Cost $1,387,022 Amortization of premium (4,522) Gross unrealized loss (1,944) Fair value $1,380,556 There were no available-for-sale investments at June 30, 2015.

7. FAIR VALUE MEASUREMENTS

7. FAIR VALUE MEASUREMENTS	12 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
7. FAIR VALUE MEASUREMENTS	The fair value of cash equivalents is classified using a hierarchy prioritized based on inputs. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on management’s own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The following table provides the assets carried at fair value: Carrying Value Quoted prices in active markets (Level 1) Other quoted/observable inputs (Level 2) Significant unobservable inputs (Level 3) June 30, 2016: Money Market Account $ 7,782,243 $ 7,782,243 $ — $ — June 30, 2015: Money Market Account $ 26,946,378 $ 26,946,378 $ — $ —

8. PROPERTY AND EQUIPMENT, NET

8. PROPERTY AND EQUIPMENT, NET	12 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
8. PROPERTY AND EQUIPMENT, NET	Property and equipment, net, consists of the following: June 30, 2016 June 30, 2015 Office equipment $1,180,210 $1,180,210 Laboratory equipment 415,303 397,608 Leasehold improvements 751,226 751,226 2,346,739 2,329,044 Less: Accumulated depreciation and amortization (2,248,938) (2,205,886) $97,801 $123,158 The aggregate cost of assets acquired under capital leases was $146,115 as of June 30, 2016 and June 30, 2015. Accumulated amortization associated with assets acquired under capital leases was $90,115 as of June 30, 2016 and $61,994 as of June 30, 2015.

9. ACCRUED EXPENSES

9. ACCRUED EXPENSES	12 Months Ended
	Jun. 30, 2016
Payables and Accruals [Abstract]
9. ACCRUED EXPENSES	Accrued expenses June 30, 2016 June 30, 2015 Clinical study costs $6,983,581 $5,594,839 Other research related expenses 69,609 176,105 Professional services 231,482 201,831 Other 483,061 250,708 $7,767,733 $6,223,483

10. NOTES PAYABLE

10. NOTES PAYABLE	12 Months Ended
	Jun. 30, 2016
Notes Payable [Abstract]
10. NOTES PAYABLE	Notes payable consist of the following: June 30, 2016 June 30, 2015 Notes payable under venture loan $20,000,000 $10,000,000 Unamortized related debt discount (324,799) (218,914) Notes payable $19,675,201 $9,781,086 Less: current portion 5,485,392 - Long-term portion $14,189,809 $9,781,086 On July 2, 2015, the Company closed on a $10,000,000 venture loan led by Horizon Technology Finance Corporation (Horizon). The debt facility is a four-year senior secured term loan that bears interest at a floating coupon rate of one-month LIBOR (floor of 0.50%) plus 8.50% and provides for interest-only payments for the first eighteen months followed by monthly payments of principal payments of $333,333 plus accrued interest through August 1, 2019. The lenders also received five-year immediately exercisable Series G warrants to purchase 549,450 shares of Palatin common stock exercisable at an exercise price of $0.91 per share. The Company has recorded a debt discount of $305,196 equal to the fair value of these warrants at issuance, which is being amortized to interest expense over the term of the related debt. This debt discount is offset against the note payable balance and included in additional paid-in capital on the Company’s balance sheet at June 30, 2016. In addition, a final incremental payment of $500,000 is due on August 1, 2019, or upon early repayment of the loan. This final incremental payment is being accreted to interest expense over the term of the related debt. The Company incurred approximately $146,000 of costs in connection with the loan agreement. These costs were capitalized as deferred financing costs and are being amortized to interest expense over the term of the related debt. In addition, if the Company repays all or a portion of the loan prior to the applicable maturity date, it will pay the lenders a prepayment penalty fee, based on a percentage of the then outstanding principal balance, equal to 3% if the prepayment occurs on or before 18 months after the funding date thereof or 1% if the prepayment occurs more than 18 months after, but on or before 30 months after, the funding date. On December 23, 2014, the Company closed on a $10,000,000 venture loan which was led by Horizon. The debt facility is a four-year senior secured term loan that bears interest at a floating coupon rate of one-month LIBOR (floor of 0.50%) plus 8.50%, and provides for interest-only payments for the first eighteen months followed by monthly payments of principal payments of $333,333 plus accrued interest through January 1, 2019. The lenders also received five-year immediately exercisable Series D 2014 warrants to purchase 666,666 shares of common stock exercisable at an exercise price of $0.75 per share. The Company recorded a debt discount of $267,820 equal to the fair value of these warrants at issuance, which is being amortized to interest expense over the term of the related debt. This debt discount is offset against the note payable balance and included in additional paid-in capital on the Company’s balance sheet at June 30, 2016 and June 30, 2015. In addition, a final incremental payment equal to $500,000 is due on January 1, 2019, or upon early repayment of the loan. This final incremental payment is being accreted to interest expense over the term of the related debt. The Company incurred approximately $209,000 of costs in connection with the loan agreement. These costs were capitalized as deferred financing costs and are being amortized to interest expense over the term of the related debt. In addition, if the Company repays all or a portion of the loan prior to the applicable maturity date, it will pay the lenders a prepayment penalty fee, based on a percentage of the then outstanding principal balance, equal to 3% if the prepayment occurs on or before 18 months after the funding date thereof or 1% if the prepayment occurs more than 18 months after, but on or before 30 months after, the funding date. The Company’s obligations under these loan agreements are secured by a first priority security interest in substantially all of its assets other than its intellectual property. The Company also has agreed to specified limitations on pledging or otherwise encumbering its intellectual property assets. These loan agreements include customary affirmative and restrictive covenants, but do not include any covenants to attain or maintain specified financial metrics. These loan agreements include customary events of default, including payment defaults, breaches of covenants, change of control and a material adverse change default. Upon the occurrence of an event of default and following any applicable cure periods, a default interest rate of an additional 5% may be applied to the outstanding loan balances, and the lenders may declare all outstanding obligations immediately due and payable and take such other actions as set forth in the loan agreements. As of June 30, 2016, the Company was in compliance with all its loan covenants Scheduled future principal payments related to notes payable as of June 30, 2016 are as follows: Year Ending June 30, 2017 $5,666,667 2018 8,000,000 2019 6,000,000 2020 333,333 20,000,000 Less: debt discount (324,799) Net $19,675,201

11. COMMITMENTS AND CONTINGENCI

11. COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
11. COMMITMENTS AND CONTINGENCIES	Operating Leases Year Ending June 30, 2017 $255,985 2018 224,493 2019 221,344 2020 221,344 $923,166 For the years ended June 30, 2016, 2015 and 2014, rent expense was $256,642, $222,215, and $219,686, respectively. Capital Leases Year Ending June 30, 2017 $29,138 2018 14,568 43,706 Amount representing interest (1,958) Net $41,748 Other agreements Employment Agreements Employee Retirement Savings Plan Contingencies The Company is involved, from time to time, in various claims and legal proceedings arising in the ordinary course of its business. The Company is not currently a party to any such claims or proceedings that, if decided adversely to it, would either individually or in the aggregate have a material adverse effect on its business, financial condition or results of operations.

12. STOCKHOLDERS EQUITY

12. STOCKHOLDERS EQUITY	12 Months Ended
	Jun. 30, 2016
Equity [Abstract]
12. STOCKHOLDERS' EQUITY	Series A Convertible Preferred Stock Financing Transactions – The Series E warrants, which may be exercised on a cashless basis, are exercisable immediately upon issuance at an initial exercise price of $0.01 per share and expire on the tenth anniversary of the date of issuance. The Series E warrants are subject to limitation on exercise if QVT and its affiliates would beneficially own more than 9.99% (4.99% for the other accredited investment fund holder) of the total number of Palatin's shares of common stock following such exercise. The Series F warrants are exercisable at an initial exercise price of $0.91 per share, exercisable immediately upon issuance and expire on the fifth anniversary of the date of issuance. The Series F warrants are subject to the same beneficial ownership limitation as the Series E warrants. The purchase agreement for the private placement provides that the purchasers have certain rights until the earlier of approval of bremelanotide for FSD by the U.S. Food and Drug Administration and July 3, 2018, including rights of first refusal and participation in any subsequent equity or debt financing. The purchase agreement also contains certain restrictive covenants so long as the funds continue to hold specified amounts of warrants or beneficially own specified amounts of the outstanding shares of common stock. Common Stock Transactions The purchase agreement for the private placement provides that the purchasers have certain rights until the earlier of approval of bremelanotide for FSD by the U.S. Food and Drug Administration and December 23, 2018, including rights of first refusal and participation in any subsequent equity or debt financing. The purchase agreement also contains certain restrictive covenants so long as the funds continue to hold specified amounts of warrants or beneficially own specified amounts of the outstanding shares of common stock. Outstanding Stock Purchase Warrants Shares of Common Stock Exercise Price per Share Latest Termination Date 20,771,740 1.00 March 2, 2017 6,117,245 0.01 July 3, 2022 35,344,341 0.01 September 27, 2022 666,666 0.75 December 23, 2019 24,949,325 0.01 December 23, 2024 2,191,781 0.91 July 2, 2020 549,450 0.91 July 2, 2020 21,917,808 0.01 July 2, 2025 112,508,356 During the year ended June 30, 2016, the Company issued 10,890,889 shares of common stock pursuant to the cashless exercise provisions of warrants at an exercise price of $0.01. During the year ended June 30, 2015, the Company received $254,148 and issued 15,130,573 shares of common stock pursuant to the exercise of warrants at exercise prices of $0.01 and $1.00, including warrants exercised pursuant to cashless exercise provisions. During the year ended June 30, 2014, the Company received $37,500 and issued 50,000 shares of common stock pursuant to the exercise of warrants at an exercise price of $0.75 per share. Stock Plan – The Company also has outstanding options that were granted under the 2005 Stock Plan. The Company expects to settle option exercises under any of its plans with authorized but currently unissued shares. The following table summarizes option activity and related information for the years ended June 30, 2016, 2015 and 2014: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term in Years Aggregate Intrinsic Value Outstanding - July 1, 2013 3,851,448 $ 1.99 8.2 Granted 603,400 1.02 Forfeited (161,900 ) 0.68 Expired (50,975 ) 24.95 Outstanding - June 30, 2014 4,241,973 1.63 7.7 Granted 975,800 1.06 Forfeited (78,810 ) 1.92 Expired (8,733 ) 36.47 Outstanding - June 30, 2015 5,130,230 1.46 7.3 Granted 355,000 0.54 Forfeited (170,550 ) 0.80 Expired (52,940 ) 22.53 Outstanding - June 30, 2016 5,261,740 $ 1.21 6.2 $ — Exercisable at June 30, 2016 3,769,402 $ 1.35 5.4 $ — Expected to vest at June 30, 2016 1,209,630 $ 0.83 8.5 $ — For the years ended June 30, 2016, 2015 and 2014, the fair value of option grants is estimated at the grant date using the Black-Scholes model. The Company’s weighted average assumptions for the years ended June 30, 2016, 2015 and 2014 were as follows: 2016 2015 2014 Risk-free interest rate 1.4 % 1.9 % 1.9 % Volatility factor 73.5 % 83.4 % 97.1 % Dividend yield 0 % 0 % 0 % Expected option life (years) 5.7 6.1 6.1 Weighted average grant date fair value $ 0.35 $ 0.76 $ 0.80 Expected volatilities are based on the Company’s historical volatility. The expected term of options is based upon the simplified method, which represents the average of the vesting term and the contractual term. The risk-free interest rate is based on U.S. Treasury yields for securities with terms approximating the expected term of the option. For the years ended June 30, 2016, 2015 and 2014 the Company recorded stock-based compensation related to stock options of $529,454, $572,609 and $520,855, respectively. As of June 30, 2016, there was $674,007 of unrecognized compensation cost related to unvested options, which is expected to be recognized over a weighted-average period of 2.31 years. In June 2016, the Company granted 262,500 options to its non-employee directors under the Company’s 2011 Stock Incentive Plan. The Company will amortize the fair value of these options of $81,435, over the vesting period. During the year ended June 30, 2016, the Company granted an aggregate 92,500 options to certain employees under the Company’s 2011 Stock Incentive Plan. The Company is amortizing the fair value of these options of $41,470, over the vesting period. In June 2015, the Company granted 570,000 options to its executive officers, 185,800 options to its employees and 160,000 options to its non-employee directors under the Company’s 2011 Stock Incentive Plan. The Company is amortizing the fair value of these options of $446,748, $145,439 and $111,876, respectively, over the vesting period. In June 2014, the Company granted 325,000 options to its executive officers, 143,400 options to its employees and 135,000 options to its non-employee directors under the Company’s 2011 Stock Incentive Plan. The Company is amortizing the fair value of these options of $265,726, $117,247 and $97,530, respectively, over the vesting period. Stock options granted to the Company’s executive officers and employees vest over a 48 month period, while stock options granted to its non-employee directors vest over a 12 month period. In June 2016, the Company made the following modifications to certain stock options that were granted to a former non-employee director in recognition of their prior services; i) accelerated the vesting, and ii) extended the date to exercise vested stock options to 24 months from the date of termination. An incremental $16,187 of stock-based compensation expense was recognized during the year ended June 30, 2016 and included in general and administrative expense in connection with these activities. During the year ended June 30, 2015, the Company made the following modifications to certain stock options that were granted to a terminated employee and former non-employee directors in recognition of their prior services; i) accelerated the vesting, and ii) extended the date to exercise vested stock options to 24 months from the date of termination. An incremental $73,664 of stock-based compensation expense was recognized during the year ended June 30, 2015 and included in general and administrative expense in connection with these activities. During the year ended June 30, 2014, the Company made the following modifications to certain stock options that were granted to certain terminated employees in recognition of their prior services; i) accelerated the vesting, and ii) extended the date to exercise vested stock options to 24 months from the date of termination. An incremental $22,000 of stock-based compensation expense was recognized during the year ended June 30, 2014 and included in research and development expense in connection with these activities. Restricted Stock Units – 2016 2015 2014 Outstanding at beginning of year 1,028,017 957,150 757,500 Granted 2,302,500 785,800 603,400 Forfeited (2,563 ) (9,100 ) (25,000 ) Vested (662,186 ) (705,833 ) (378,750 ) Outstanding at end of year 2,665,768 1,028,017 957,150 For the years ended June 30, 2016, 2015 and 2014 the Company recorded stock-based compensation related to restricted stock units of $1,297,724, $594,670 and $300,485, respectively. In June 2016, the Company granted 262,500 restricted stock units to its non-employee directors under the Company’s 2011 Stock Incentive Plan. The Company is amortizing the fair value of these options of $131,250, over the vesting period. In January 2016, the Company granted 50,000 restricted stock units to an employee and is amortizing the fair value of these restricted stock units of $30,000 over a 48 month vesting period. In December 2015, the Company granted 625,000 performance-based restricted stock units to its executive officers and 200,000 performance-based restricted stock units to its employees under the Company’s 2011 Stock Incentive Plan, which vest during the performance period, ending December 31, 2017, if and upon the earlier of: i) achievement of a closing price for the Company’s common stock equal to or greater than $1.20 per share for 20 consecutive trading days, which is considered a market condition, or ii) entering into a collaboration agreement (U.S. or global) of bremelanotide for FSD, which is considered a performance condition. The Company determined that the performance condition was not probable of achievement on the date of grant since such condition is outside the control of the Company. The fair value of these awards, as calculated under a multifactor Monte Carlo simulation, was $338,250. The Company is amortizing the fair value over the derived service period of 0.96 years. Also, in December 2015, the Company granted 625,000 restricted stock units to its executive officers, 340,000 restricted stock units to its non-employee directors and 200,000 restricted stock units to its employees under the Company’s 2011 Stock Incentive Plan. For executive officers and employees, the restricted stock units vest 25% on the date of grant and 25% on the first, second and third anniversary dates from the date of grant. For non-employee directors, the restricted stock units vest 50% on the first and second anniversary dates from the date of grant. The Company is amortizing the fair value of these restricted stock units of $425,000, $231,200 and $136,000, respectively, over the vesting period. In June 2015, the Company granted 400,000 restricted stock units to its executive officers, 185,800 restricted stock units to its employees and 160,000 restricted stock units to its non-employee directors under the Company’s 2011 Stock Incentive Plan. The Company is amortizing the fair value of these restricted stock units of $432,000, $200,664, and $172,800, respectively, over the vesting period. In addition, in June 2015, the Company granted 20,000 restricted stock units to former non-employee directors in recognition of their prior services. These restricted stock units vested upon issuance and the Company recognized the fair value of these restricted stock units of $21,600 as stock-based compensation expense which was included in general and administrative expense at June 30, 2015. In January 2015, the Company granted 20,000 restricted stock units to an employee and is amortizing the fair value of these restricted stock units of $16,000 over a 24 month vesting period. In June 2014, the Company granted 325,000 restricted stock units to its executive officers, 143,400 restricted stock units to its employees and 135,000 restricted stock units to its non-employee directors under the Company’s 2011 Stock Incentive Plan. The Company is amortizing the fair value of these restricted stock units of $331,500, $146,268 and $137,700, respectively, over the vesting period. Generally, restricted stock units granted to the Company’s executive officers, employees and non-employee directors in 2015 and 2014 vest over 24 months, 48 months and 12 months, respectively. In June 2013, the Company granted 420,000 restricted stock units to its executive officers and 115,000 restricted stock units to employees under the Company’s 2011 Stock Incentive Plan. The Company amortized the fair value of these restricted stock units of $260,000 and $71,000, respectively, over the 24 month vesting period ended June 30, 2015. In July 2012, the Company granted 222,500 restricted stock units to its executive officers under the Company’s 2011 Stock Incentive Plan. The Company amortized the fair value of these restricted stock units of $160,000 over the 24 months ending July 2014. During the year ended June 30, 2014, the Company accelerated the vesting of certain restricted stock units that were granted to a terminated employee in recognition of prior services. An incremental $12,000 of stock-based compensation expense was recognized during the year ended June 30, 2014 and included in research and development expense in connection with these activities. In connection with the vesting of restricted share units during the years ended June 30, 2016, 2015 and 2014, the Company withheld 123,483, 174,568 and 129,103 shares with aggregate values of $58,401, $164,136 and $120,007, respectively, in satisfaction of minimum tax withholding obligations.

13. INCOME TAXES

13. INCOME TAXES	12 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
13. INCOME TAXES	The Company has had no income tax expense or benefit since inception because of operating losses, except for amounts recognized for sales of New Jersey state net operating loss carryforwards and tax credits. Deferred tax assets and liabilities are determined based on the estimated future tax effect of differences between the financial statement and tax reporting basis of assets and liabilities, as well as for net operating loss carryforwards and research and development credit carryforwards, given the provisions of existing tax laws. As of June 30, 2016, the Company had federal and state net operating loss carryforwards of approximately $302,600,000 and $139,400,000, respectively, which expire, if not utilized, between 2019 and 2036 for federal tax purposes and between 2016 and 2036 for state tax purposes. As of June 30, 2016, the Company had federal research and development credits of approximately $10,000,000 that will begin to expire in 2019, if not utilized. The Company’s net deferred tax assets are as follows: June 30, 2016 June 30, 2015 Net operating loss carryforwards $114,081,000 $94,332,000 Research and development tax credits 9,965,000 7,357,000 Basis differences in fixed assets and other 1,491,000 1,208,000 125,537,000 102,897,000 Valuation allowance (125,537,000) (102,897,000) Net deferred tax assets $- $- In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the application of loss limitation provisions related to ownership changes. Due to the Company’s history of losses, the deferred tax assets are fully offset by a valuation allowance as of June 30, 2016 and 2015. The Company did not have a sale of New Jersey state net operating loss (NJ NOL) carryforwards during the year ended June 30, 2016 and therefore did not record a tax benefit. During the years ended June 30, 2015 and 2014, the Company sold New Jersey state net operating loss carryforwards, which resulted in the recognition of $531,508 and $1,846,646, respectively, in tax benefits.

14. CONSOLIDATED QUARTERLY FINA

14. CONSOLIDATED QUARTERLY FINANCIAL DATA - UNAUDITED	12 Months Ended
	Jun. 30, 2016
Quarterly Financial Information Disclosure [Abstract]
14. CONSOLIDATED QUARTERLY FINANCIAL DATA - UNAUDITED	The following tables provide quarterly data for the years ended June 30, 2016 and 2015. Three Months Ended June 30, March 31, December 31, September 30, 2016 2016 2015 2015 (amounts in thousands, except per share data) Revenues $ — $ — $ — $ — Operating expenses 12,738 12,086 12,628 11,798 Other income (expense), net (618 ) (611 ) (622 ) (612 ) Loss before income taxes (13,356 ) (12,697 ) (13,250 ) (12,410 ) Income tax benefit — — — — Net loss $ (13,356 ) $ (12,697 ) $ (13,250 ) $ (12,410 ) Basic and diluted net loss per common share $ (0.09 ) $ (0.08 ) $ (0.08 ) $ (0.08 ) Weighted average number of common shares outstanding used in computing basic and diluted net loss per common share 156,841,053 156,368,617 156,358,586 156,357,755 Three Months Ended June 30, March 31, December 31, September 30, 2015 2015 2014 2014 (amounts in thousands, except per share data) Revenues $ — $ — $ 8,020 $ 4,932 Operating expenses 11,782 8,722 5,697 4,038 Other income (expense), net (306 ) (428 ) (78 ) (99 ) (Loss) income before income taxes (12,088 ) (9,150 ) 2,245 795 Income tax benefit — — 532 — Net (loss) income $ (12,088 ) $ (9,150 ) $ 2,777 $ 795 Basic net (loss) income per common share $ (0.09 ) $ (0.07 ) $ 0.03 $ 0.01 Diluted net (loss) income per common share $ (0.09 ) $ (0.07 ) $ 0.03 $ 0.01 Weighted average number of common shares outstanding used in computing basic net (loss) income per common share 134,207,300 134,008,239 109,314,460 106,953,898 Weighted average number of common shares outstanding used in computing diluted net (loss) income per common share 134,207,300 134,008,239 109,815,718 107,946,021

15. SUBSEQUENT EVENT

15. SUBSEQUENT EVENT	12 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
15. SUBSEQUENT EVENT	Financing Transactions – The Series I warrants are exercisable at an initial exercise price of $0.01 per share, exercisable immediately upon issuance and expire on the tenth anniversary of the date of issuance. The Series I warrants are subject to limitation on exercise if the holder and its affiliates would beneficially own more than 9.99% of the total number of Palatin’s shares of common stock following such exercise. The Series H warrants are exercisable at an initial exercise price of $0.70 per share, are exercisable commencing six months following the date of issuance and expire on the fifth anniversary of the date of issuance. The Series H warrants are subject to the same beneficial ownership limitation as the Series I warrants.

1. ORGANIZATION (Policies)

1. ORGANIZATION (Policies)	12 Months Ended
	Jun. 30, 2016
Organization Policies
Nature of Business	Palatin Technologies, Inc. (Palatin or the Company) is a biopharmaceutical company developing targeted, receptor-specific peptide therapeutics for the treatment of diseases with significant unmet medical need and commercial potential. Palatin’s programs are based on molecules that modulate the activity of the melanocortin and natriuretic peptide receptor systems. The melanocortin system is involved in a large and diverse number of physiologic functions, and therapeutic agents modulating this system may have the potential to treat a variety of conditions and diseases, including sexual dysfunction, obesity and related disorders, cachexia (wasting syndrome) and inflammation-related diseases. The natriuretic peptide receptor system has numerous cardiovascular functions, and therapeutic agents modulating this system may be useful in treatment of acute asthma, heart failure, hypertension and other cardiovascular diseases. The Company’s primary product in development is bremelanotide for the treatment of hypoactive sexual desire disorder (HSDD), which is a type of female sexual dysfunction (FSD). The Company also has drug candidates or development programs for obesity, erectile dysfunction, cardiovascular diseases, pulmonary diseases, inflammatory diseases and dermatologic diseases. Key elements of the Company’s business strategy include using its technology and expertise to develop and commercialize therapeutic products; entering into alliances and partnerships with pharmaceutical companies to facilitate the development, manufacture, marketing, sale and distribution of product candidates that the Company is developing; and partially funding its product candidate development programs with the cash flow generated from third parties.
Business Risk and Liquidity	There is substantial doubt about the Company’s ability to continue as a going concern. Since inception, the Company has incurred negative cash flows from operations, and has expended, and expects to continue to expend in the future, substantial funds to complete its planned product development efforts. As shown in the accompanying consolidated financial statements, the Company had an accumulated deficit as of June 30, 2016 of $343,412,252 and incurred a net loss for fiscal 2016 of $51,712,936. The Company anticipates incurring additional losses in the future as a result of spending on its development programs and will require substantial additional financing to continue to fund its planned developmental activities. To achieve profitability, if ever, the Company, alone or with others, must successfully develop and commercialize its technologies and proposed products, conduct successful preclinical studies and clinical trials, obtain required regulatory approvals and successfully manufacture and market such technologies and proposed products. The time required to reach profitability is highly uncertain, and there can be no assurance that the Company will be able to achieve profitability on a sustained basis, if at all. The accompanying consolidated financial statements have been prepared assuming that the Company continues as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amount or classification of liabilities that might result from the outcome of this uncertainty. As discussed in Note 15, on August 4, 2016, the Company closed on an underwritten offering of units resulting in gross proceeds of $9,225,000, with net proceeds, after deducting estimated offering expenses, of approximately $8,500,000. As of June 30, 2016, the Company’s cash, cash equivalents and investments were $9,383,224 and current liabilities were $13,994,439. The Company intends to utilize existing capital resources, including the proceeds from the financing for general corporate purposes and working capital, including the Phase 3 clinical trial program with bremelanotide for HSDD and preclinical and clinical development of our other product candidates and programs, including PL-3994 and melanocortin recetptor-1 and melanocortin receptor-4 programs. Management believes that the Phase 3 clinical trial program with bremelanotide, including regulatory filings for product approval, will cost at least $87,000,000. Management believes that the Company’s existing capital resources, together with approximately $8,500,000 received from the August 2016 financing, will be adequate to fund its planned operations through the quarter ending December 31, 2016. Assuming the double blind efficacy portion of the Phase 3 clinical trial of bremelanotide for HSDD is successful, as to which there can be no assurance, we will need additional funding to complete required ancillary studies and clinical trials, prepare and submit regulatory filings for product approval, and establish commercial scale manufacturing capability. The Company will need to raise additional capital to complete required ancillary studies and clinical trials, prepare and submit regulatory filings for product approval, and establish commercial scale manufacturing capability. The Company will also need additional funding to complete required clinical trials for its other product candidates and, assuming those clinical trials are successful, as to which there can be no assurance, to complete submission of required applications to the FDA. If the Company is unable to obtain approval or otherwise advance in the FDA approval process, the Company’s ability to sustain its operations would be materially adversely affected. The Company may seek the additional capital necessary to fund its operations through public or private equity offerings, collaboration agreements, debt financings or licensing arrangements. Additional capital that is required by the Company may not be available on reasonable terms, or at all.
Concentrations	Concentrations in the Company’s assets and operations subject it to certain related risks. Financial instruments that subject the Company to concentrations of credit risk primarily consist of cash and cash equivalents and available-for-sale investments. The Company’s cash and cash equivalents are primarily invested in one money market account sponsored by a large financial institution. For the years ended June 30, 2016 and 2014, the Company had no revenues reported. For the year ended June 30, 2015, 100% of revenues were from Gedeon Richter.

2. SUMMARY OF SIGNIFICANT ACC24

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jun. 30, 2016
Summary Of Significant Accounting Policies Policies
Principles of Consolidation	The consolidated financial statements include the accounts of Palatin and its wholly-owned inactive subsidiary. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and cash equivalents include cash on hand, cash in banks and all highly liquid investments with a purchased maturity of less than three months. Cash equivalents consist of $7,782,243 and $26,946,378 in a money market account at June 30, 2016 and 2015, respectively.
Investments	The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. Debt securities are classified as held-to-maturity when the Company has the intent and ability to hold the securities to maturity. Debt securities for which the Company does not have the intent or ability to hold to maturity are classified as available-for-sale. Held-to-maturity securities are recorded as either short-term or long-term on the balance sheet, based on the contractual maturity date and are stated at amortized cost. Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Debt and marketable equity securities not classified as held-to-maturity or as trading are classified as available-for-sale and are carried at fair market value, with the unrealized gains and losses, net of tax, included in the determination of other comprehensive (loss) income. The fair value of substantially all securities is determined by quoted market prices. The estimated fair value of securities for which there are no quoted market prices is based on similar types of securities that are traded in the market.
Fair Value of Financial Instruments	The Company’s financial instruments consist primarily of cash equivalents, accounts payable and notes payable. Management believes that the carrying values of cash equivalents, available-for-sale investments and accounts payable are representative of their respective fair values based on the short-term nature of these instruments. Management believes that the carrying amount of its notes payable approximates fair value based on terms of the notes.
Credit Risk	Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. Total cash and cash equivalent balances have exceeded insured balances by the Federal Depository Insurance Company (FDIC).
Property and Equipment	Property and equipment consists of office and laboratory equipment, office furniture and leasehold improvements and includes assets acquired under capital leases. Property and equipment are recorded at cost. Depreciation is recognized using the straight-line method over the estimated useful lives of the related assets, generally five years for laboratory and computer equipment, seven years for office furniture and equipment and the lesser of the term of the lease or the useful life for leasehold improvements. Amortization of assets acquired under capital leases is included in depreciation expense. Maintenance and repairs are expensed as incurred while expenditures that extend the useful life of an asset are capitalized.
Impairment of Long-Lived Assets	The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. To determine recoverability of a long-lived asset, management evaluates whether the estimated future undiscounted net cash flows from the asset are less than its carrying amount. If impairment is indicated, the long-lived asset would be written down to fair value. Fair value is determined by an evaluation of available price information at which assets could be bought or sold, including quoted market prices, if available, or the present value of the estimated future cash flows based on reasonable and supportable assumptions.
Revenue Recognition	Under our license, co-development and commercialization agreement with Gedeon Richter (Note 4), we received consideration in the form of a license fee and development milestone payment. Revenue resulting from license fees is recognized upon delivery of the license for the portion of the license fee payment that is non-contingent and non-refundable, if the license has standalone value. Revenue resulting from the achievement of development milestones is recorded in accordance with the accounting guidance for the milestone method of revenue recognition.
Research and Development Costs	The costs of research and development activities are charged to expense as incurred, including the cost of equipment for which there is no alternative future use.
Accrued Expenses	Third parties perform a significant portion of our development activities. We review the activities performed under significant contracts each quarter and accrue expenses and the amount of any reimbursement to be received from our collaborators based upon the estimated amount of work completed. Estimating the value or stage of completion of certain services requires judgment based on available information. If we do not identify services performed for us but not billed by the service-provider, or if we underestimate or overestimate the value of services performed as of a given date, reported expenses will be understated or overstated.
Stock-Based Compensation	The Company charges to expense the fair value of stock options and other equity awards granted. The Company determines the value of stock options utilizing the Black-Scholes option pricing model. Compensation costs for share-based awards with pro-rata vesting are determined using the quoted market price of the Company’s common stock on the date of grant and allocated to periods on a straight-line basis, while awards containing a market condition are valued using multifactor Monte Carlo simulations.
Income Taxes	The Company and its subsidiary file consolidated federal and separate-company state income tax returns. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. 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 or operating loss and tax credit carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. The Company has recorded a valuation allowance against its deferred tax assets based on the history of losses incurred. The Company did not have a sale of New Jersey state net operating loss (NJ NOL) carryforwards during the year ended June 30, 2016 and therefore did not record a tax benefit. During the years ended June 30, 2015 and 2014, the Company sold New Jersey state net operating loss carryforwards, which resulted in the recognition of $531,508 and $1,846,646, respectively, in tax benefits.
Net Loss per Common Share	Basic and diluted earnings per common share (EPS) are calculated in accordance with the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 260, “Earnings per Share,” which includes guidance pertaining to the warrants, issued in connection with the July 3, 2012, December 23, 2014, and July 2, 2015 private placement offerings, that are exercisable for nominal consideration and, therefore, are to be considered in the computation of basic and diluted net loss per common share. The Series A 2012 warrants issued on July 3, 2012 to purchase up to 31,988,151 shares of common stock are included in the weighted average number of common shares outstanding used in computing basic and diluted net loss per common share for all periods presented in the consolidated statements of operations. The Series B 2012 warrants issued on July 3, 2012 to purchase up to 35,488,380 shares of common stock are included in the weighted average number of common shares outstanding used in computing basic and diluted net loss per common share for all periods presented in the consolidated statements of operations. The Series C 2014 warrants to purchase up to 24,949,325 shares of common stock were exercisable starting at December 23, 2014 and, therefore are included in the weighted average number of common shares outstanding used in computing basic and diluted net loss per common share starting on December 23, 2014. The Series E 2015 warrants to purchase up to 21,917,808 shares of common stock were exercisable starting at July 2, 2015 and, therefore are included in the weighted average number of common shares outstanding used in computing basic and diluted net loss per common share starting on July 2, 2015. As of June 30, 2016, 2015 and 2014, there were 32,167,737, 30,212,446, and 29,358,926 common shares issuable upon conversion of Series A Convertible Preferred Stock, the exercise of outstanding options and warrants (excluding the Series A 2012, Series B 2012, Series C 2014, and Series E 2015 warrants issued in connection with the July 3, 2012, December 23, 2014, and July 2, 2015 private placement offerings), and the vesting of restricted stock units, respectively. These share amounts have been excluded from the calculation of net loss per share as the impact would be anti-dilutive.

5. PREPAID EXPENSES AND OTHER25

5. PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	12 Months Ended
	Jun. 30, 2016
Prepaid Expense and Other Assets, Current [Abstract]
Schedule of prepaid expenses and other current assets	June 30, 2016 June 30, 2015 Clinical study costs $1,146,975 $1,641,605 Insurance premiums 23,010 30,039 Other 254,297 225,103 $1,424,282 $1,896,747

6. INVESTMENTS (Tables)

6. INVESTMENTS (Tables)	12 Months Ended
	Jun. 30, 2016
Investments [Abstract]
Carrying value of available-for-sale investments	June 30, 2016 Cost $1,387,022 Amortization of premium (4,522) Gross unrealized loss (1,944) Fair value $1,380,556

7. FAIR VALUE MEASUREMENTS (Tab

7. FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of assets at fair value	Carrying Value Quoted prices in active markets (Level 1) Other quoted/observable inputs (Level 2) Significant unobservable inputs (Level 3) June 30, 2016: Money Market Account $ 7,782,243 $ 7,782,243 $ — $ — June 30, 2015: Money Market Account $ 26,946,378 $ 26,946,378 $ — $ —

8. PROPERTY AND EQUIPMENT, NET

8. PROPERTY AND EQUIPMENT, NET (Tables)	12 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Property and equipment	June 30, 2016 June 30, 2015 Office equipment $1,180,210 $1,180,210 Laboratory equipment 415,303 397,608 Leasehold improvements 751,226 751,226 2,346,739 2,329,044 Less: Accumulated depreciation and amortization (2,248,938) (2,205,886) $97,801 $123,158

9. ACCRUED EXPENSES (Tables)

9. ACCRUED EXPENSES (Tables)	12 Months Ended
	Jun. 30, 2016
Payables and Accruals [Abstract]
Accrued Expenses	June 30, 2016 June 30, 2015 Clinical study costs $6,983,581 $5,594,839 Other research related expenses 69,609 176,105 Professional services 231,482 201,831 Other 483,061 250,708 $7,767,733 $6,223,483

10. NOTES PAYABLE (Tables)

10. NOTES PAYABLE (Tables)	12 Months Ended
	Jun. 30, 2016
Notes Payable [Abstract]
Schedule of notes payable	June 30, 2016 June 30, 2015 Notes payable under venture loan $20,000,000 $10,000,000 Unamortized related debt discount (324,799) (218,914) Notes payable $19,675,201 $9,781,086 Less: current portion 5,485,392 - Long-term portion $14,189,809 $9,781,086
Schedule of future principal payments	Year Ending June 30, 2017 $5,666,667 2018 8,000,000 2019 6,000,000 2020 333,333 20,000,000 Less: debt discount (324,799) Net $19,675,201

11. COMMITMENTS AND CONTINGEN31

11. COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Future minimum lease payments	Year Ending June 30, 2017 $255,985 2018 224,493 2019 221,344 2020 221,344 $923,166
Future payments related to capital lease	Year Ending June 30, 2017 $29,138 2018 14,568 43,706 Amount representing interest (1,958) Net $41,748

12. STOCKHOLDERS EQUITY (Tables

12. STOCKHOLDERS EQUITY (Tables)	12 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Outstanding Stock Purchase Warrants	Shares of Common Stock Exercise Price per Share Latest Termination Date 20,771,740 1.00 March 2, 2017 6,117,245 0.01 July 3, 2022 35,344,341 0.01 September 27, 2022 666,666 0.75 December 23, 2019 24,949,325 0.01 December 23, 2024 2,191,781 0.91 July 2, 2020 549,450 0.91 July 2, 2020 21,917,808 0.01 July 2, 2025 112,508,356
Option activity	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term in Years Aggregate Intrinsic Value Outstanding - July 1, 2013 3,851,448 $ 1.99 8.2 Granted 603,400 1.02 Forfeited (161,900 ) 0.68 Expired (50,975 ) 24.95 Outstanding - June 30, 2014 4,241,973 1.63 7.7 Granted 975,800 1.06 Forfeited (78,810 ) 1.92 Expired (8,733 ) 36.47 Outstanding - June 30, 2015 5,130,230 1.46 7.3 Granted 355,000 0.54 Forfeited (170,550 ) 0.80 Expired (52,940 ) 22.53 Outstanding - June 30, 2016 5,261,740 $ 1.21 6.2 $ — Exercisable at June 30, 2016 3,769,402 $ 1.35 5.4 $ — Expected to vest at June 30, 2016 1,209,630 $ 0.83 8.5 $ —
Weighted average assumptions	2016 2015 2014 Risk-free interest rate 1.4 % 1.9 % 1.9 % Volatility factor 73.5 % 83.4 % 97.1 % Dividend yield 0 % 0 % 0 % Expected option life (years) 5.7 6.1 6.1 Weighted average grant date fair value $ 0.35 $ 0.76 $ 0.80
Restricted Stock Units	2016 2015 2014 Outstanding at beginning of year 1,028,017 957,150 757,500 Granted 2,302,500 785,800 603,400 Forfeited (2,563 ) (9,100 ) (25,000 ) Vested (662,186 ) (705,833 ) (378,750 ) Outstanding at end of year 2,665,768 1,028,017 957,150

13. INCOME TAXES (Tables)

13. INCOME TAXES (Tables)	12 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Deferred tax assets	June 30, 2016 June 30, 2015 Net operating loss carryforwards $114,081,000 $94,332,000 Research and development tax credits 9,965,000 7,357,000 Basis differences in fixed assets and other 1,491,000 1,208,000 125,537,000 102,897,000 Valuation allowance (125,537,000) (102,897,000) Net deferred tax assets $- $-

14. CONSOLIDATED QUARTERLY FI34

14. CONSOLIDATED QUARTERLY FINANCIAL DATA UNAUDITED (Tables)	12 Months Ended
	Jun. 30, 2016
Consolidated Quarterly Financial Data Unaudited Tables
QUARTERLY FINANCIAL DATA	Three Months Ended June 30, March 31, December 31, September 30, 2016 2016 2015 2015 (amounts in thousands, except per share data) Revenues $ — $ — $ — $ — Operating expenses 12,738 12,086 12,628 11,798 Other income (expense), net (618 ) (611 ) (622 ) (612 ) Loss before income taxes (13,356 ) (12,697 ) (13,250 ) (12,410 ) Income tax benefit — — — — Net loss $ (13,356 ) $ (12,697 ) $ (13,250 ) $ (12,410 ) Basic and diluted net loss per common share $ (0.09 ) $ (0.08 ) $ (0.08 ) $ (0.08 ) Weighted average number of common shares outstanding used in computing basic and diluted net loss per common share 156,841,053 156,368,617 156,358,586 156,357,755 Three Months Ended June 30, March 31, December 31, September 30, 2015 2015 2014 2014 (amounts in thousands, except per share data) Revenues $ — $ — $ 8,020 $ 4,932 Operating expenses 11,782 8,722 5,697 4,038 Other income (expense), net (306 ) (428 ) (78 ) (99 ) (Loss) income before income taxes (12,088 ) (9,150 ) 2,245 795 Income tax benefit — — 532 — Net (loss) income $ (12,088 ) $ (9,150 ) $ 2,777 $ 795 Basic net (loss) income per common share $ (0.09 ) $ (0.07 ) $ 0.03 $ 0.01 Diluted net (loss) income per common share $ (0.09 ) $ (0.07 ) $ 0.03 $ 0.01 Weighted average number of common shares outstanding used in computing basic net (loss) income per common share 134,207,300 134,008,239 109,314,460 106,953,898 Weighted average number of common shares outstanding used in computing diluted net (loss) income per common share 134,207,300 134,008,239 109,815,718 107,946,021

5. PREPAID EXPENSES AND OTHER35

5. PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Prepaid Expenses And Other Current Assets Details
Clinical study costs	$ 1,146,975	$ 1,641,605
Insurance premiums	23,010	30,039
Other	254,297	225,103
Total prepaid expenses and other current assets	$ 1,424,282	$ 1,896,747

6. INVESTMENTS (Details)

6. INVESTMENTS (Details) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Investments [Abstract]
Cost	$ 1,387,022	$ 0	$ 0
Amortization of premium	(4,522)
Gross unrealized loss	(1,944)
Fair value	$ 1,380,556	$ 0

7. FAIR VALUE MEASUREMENTS (Det

7. FAIR VALUE MEASUREMENTS (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Money Market Account	$ 7,782,243	$ 26,946,378
Level 1
Money Market Account	7,782,243	26,946,378
Level 2
Money Market Account	0	0
Level 3
Money Market Account	$ 0	$ 0

8. PROPERTY AND EQUIPMENT, NE38

8. PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Office equipment	$ 1,180,210	$ 1,180,210
Laboratory equipment	415,303	397,608
Leasehold improvements	751,226	751,226
Gross	2,346,739	2,329,044
Less: Accumulated depreciation and amortization	(2,248,938)	(2,205,886)
Net	$ 97,801	$ 123,158

8. PROPERTY AND EQUIPMENT, NE39

8. PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Aggregate cost of assets acquired under capital leases	$ 146,115	$ 146,115
Accumulated amortization associated with assets acquired under capital leases	$ 90,115	$ 61,994

9. ACCRUED EXPENSES (Details)

9. ACCRUED EXPENSES (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Accrued Expenses Details
Clinical study costs	$ 6,983,581	$ 5,594,839
Other research related expenses	69,609	176,105
Professional services	231,482	201,831
Other	483,061	250,708
Accrued expenses	$ 7,767,733	$ 6,223,483

10. NOTES PAYABLE (Details)

10. NOTES PAYABLE (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Notes Payable [Abstract]
Notes payable under venture loan	$ 20,000,000	$ 10,000,000
Unamortized related debt discount	(324,799)	(218,914)
Notes payable	14,189,809	9,781,086
Less: current portion	5,485,392	0
Long-term portion	$ 14,189,809	$ 9,781,086

10. NOTES PAYABLE (Details 1)

10. NOTES PAYABLE (Details 1) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Notes Payable [Abstract]
2,017	$ 5,666,667
2,018	8,000,000
2,019	6,000,000
2,020	333,333
Total	20,000,000	$ 10,000,000
Less: debt discount	(324,799)	(218,914)
Net	$ 14,189,809	$ 9,781,086

11. COMMITMENTS AND CONTINGEN43

11. COMMITMENTS AND CONTINGENCIES (Details)	Jun. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,017	$ 255,985
2,018	224,493
2,019	221,344
2,020	$ 923,166

11. COMMITMENTS AND CONTINGEN44

11. COMMITMENTS AND CONTINGENCIES (Details 1)	Jun. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,017	$ 29,138
2,018	14,568
Total	43,706
Amount representing interest	(1,958)
Net	$ 41,748

12. STOCKHOLDERS EQUITY (Detail

12. STOCKHOLDERS EQUITY (Details)	12 Months Ended
	Jun. 30, 2016$ / sharesshares
Shares of Common Stock	112,508,356
Range 1
Shares of Common Stock	20,771,740
Exercise Price per Share | $ / shares	$ 1
Latest Termination Date	2-Mar-17
Range 2
Shares of Common Stock	6,117,245
Exercise Price per Share | $ / shares	$ 0.01
Latest Termination Date	3-Jul-22
Range 3
Shares of Common Stock	35,344,341
Exercise Price per Share | $ / shares	$ 0.01
Latest Termination Date	27-Sep-22
Range 4
Shares of Common Stock	666,666
Exercise Price per Share | $ / shares	$ 0.75
Latest Termination Date	23-Dec-19
Range 5
Shares of Common Stock	24,949,325
Exercise Price per Share | $ / shares	$ 0.01
Latest Termination Date	23-Dec-24
Range 6
Shares of Common Stock	2,191,781
Exercise Price per Share | $ / shares	$ 0.91
Latest Termination Date	2-Jul-20
Range 7
Shares of Common Stock	549,450
Exercise Price per Share | $ / shares	$ 0.91
Latest Termination Date	2-Jul-20
Range 8
Shares of Common Stock	21,917,808
Exercise Price per Share | $ / shares	$ 0.01
Latest Termination Date	2-Jul-25

12. STOCKHOLDERS EQUITY (Deta46

12. STOCKHOLDERS EQUITY (Details 1) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Stockholders Equity Details 1
Number of Options Outstanding, Beginning	5,130,230	4,241,973	3,851,448
Number of Options Granted	355,000	975,800	603,400
Number of Options Forfeited	(170,550)	(78,810)	(161,900)
Number of Options Expired	(52,940)	(8,733)	(50,975)
Number of Options Outstanding, Ending	5,261,740	5,130,230	4,241,973
Number of Options Exercisable	3,769,402	3,209,517
Number of Options Expected to vest	1,209,630	1,472,033
Weighted Average Exercise Price Outstanding, Beginning	$ 1.46	$ 1.63	$ 1.99
Weighted Average Exercise Price Granted	.54	1.06	1.02
Weighted Average Exercise Price Forfeited	.80	1.92	0.68
Weighted Average Exercise Price Expired	22.53	36.47	24.95
Weighted Average Exercise Price Outstanding, Ending	1.21	1.46	$ 1.63
Weighted Average Exercise Price Exercisable	1.35	1.77
Weighted Average Exercise Price Options Expected to vest	$ .83	$ 0.92
Weighted Average Remaining Term in Years Options outstanding at beginning of year	7 years 3 months 18 days	7 years 8 months 12 days	8 years 2 months 12 days
Weighted Average Remaining Term in Years Options outstanding at end of year	6 years 2 months 12 days	7 years 3 months 18 days	7 years 8 months 12 days
Weighted Average Remaining Term in Years Options exercisable at end of year	5 years 4 months 24 days
Weighted Average Remaining Term in Years Options Expected to vest	8 years 6 months
Aggregate Intrinsic Value Options outstanding	$ 0
Aggregate Intrinsic Value Options exercisable	0
Aggregate Intrinsic Value Options Expected to vest	$ 0

12. STOCKHOLDERS EQUITY (Deta47

12. STOCKHOLDERS EQUITY (Details 2) - $ / shares	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Stockholders Equity Details 2
Risk-free interest rate	1.40%	1.90%	1.90%
Volatility factor	73.50%	83.40%	97.10%
Dividend yield	0.00%	0.00%	0.00%
Expected option life (years)	5 years 8 months 12 days	6 years 1 month 6 days	6 years 1 month 6 days
Weighted average grant date fair value	$ 0.35	$ 0.76	$ 0.80

12. STOCKHOLDERS EQUITY (Deta48

12. STOCKHOLDERS EQUITY (Details 3) - shares	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Stockholders Equity Details 3
Outstanding at beginning of year	1,028,017	957,150	757,500
Granted	2,302,500	785,800	603,400
Forfeited	(2,563)	(9,100)	(25,000)
Vested	(662,186)	(705,833)	(378,750)
Outstanding at end of year	2,665,768	1,028,017	957,150

13. INCOME TAXES (Details)

13. INCOME TAXES (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Net operating loss carryforwards	$ 114,081,000	$ 94,332,000
Research and development tax credits	9,965,000	7,357,000
Basis differences in fixed assets and other	1,491,000	1,208,000
Gross	125,537,000	102,897,000
Valuation allowance	(125,537,000)	(102,897,000)
Net deferred tax assets	$ 0	$ 0

13. INCOME TAXES (Details Narra

13. INCOME TAXES (Details Narrative) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Federal research and development credits	$ 9,965,000	$ 7,357,000
Federal
Net operating loss carryforwards	531,508
State
Net operating loss carryforwards	$ 1,846,646

14. CONSOLIDATED QUARTERLY FI51

14. CONSOLIDATED QUARTERLY FINANCIAL DATA UNAUDITED (Details) - USD ($)	3 Months Ended								12 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Consolidated Quarterly Financial Data Unaudited Details
Revenues	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 8,020	$ 4,932
Operating expenses	12,738	12,086	12,628	11,798	11,782	8,722	5,697	4,038	$ 49,250,135	$ 30,237,887	$ 15,787,652
Other income (expense), net	(618)	(611)	(622)	(612)	(306)	(428)	(78)	(99)	(2,462,801)	(910,914)	12,712
Loss before income taxes	(13,356)	(12,697)	(13,250)	(12,410)	(12,088)	(9,150)	2,245	795	(51,712,936)	(18,197,071)	(15,774,940)
Income tax benefit	0	0	0	0	0	0	532	0	0	531,508	1,846,646
Net loss	$ (13,356)	$ (12,697)	$ (13,250)	$ (12,410)	$ (12,088)	$ (9,150)	$ 2,777	$ 795	$ (51,712,936)	$ (17,665,563)	$ (13,928,294)
Basic net loss per common share	$ (0.09)	$ (0.08)	$ (0.08)	$ (0.08)	$ (0.09)	$ (0.07)	$ 0.03	$ 0.01	$ (0.33)	$ (0.15)	$ (0.13)
Diluted net loss per common share					$ (0.09)	$ (0.07)	$ 0.03	$ 0.01
Weighted average number of common shares outstanding used in computing basic net loss per common share					134,207,300	134,008,239	109,314,460	106,953,898
Weighted average number of common shares outstanding used in computing diluted net loss per common share					134,207,300	134,008,239	109,815,718	107,946,021
Weighted average number of common shares outstanding used in computing basic and diluted net loss per common share	156,841,053	156,744,867	156,456,801	156,176,618					156,553,534	121,014,506	106,679,476