Palatin (PTN) 10-K 12 Sep 19 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2019	Sep. 10, 2019	Dec. 31, 2018
Document And Entity Information
Entity Registrant Name	PALATIN TECHNOLOGIES INC
Entity Central Index Key	0000911216
Document Type	10-K
Document Period End Date	Jun. 30, 2019
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	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Public Float			$ 142,428,243
Entity Common Stock, Shares Outstanding		227,039,363
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2019

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Current assets:
Cash and cash equivalents	$ 43,510,422	$ 38,000,171
Accounts receivable	60,265,970	0
Prepaid expenses and other current assets	637,289	513,688
Total current assets	104,413,681	38,513,859
Property and equipment, net	141,539	164,035
Other assets	179,916	338,916
Total assets	104,735,136	39,016,810
Current liabilities:
Accounts payable	504,787	2,223,693
Accrued expenses	2,848,692	2,103,021
Notes payable, net of discount	332,896	5,948,763
Other current liabilities	499,517	487,488
Total current liabilities	4,185,892	10,762,965
Notes payable, net of discount	0	332,898
Deferred revenue	0	500,000
Other non-current liabilities	0	456,038
Total liabilities	4,185,892	12,051,901
Commitments and contengencies (Note 12)
Stockholders' deficiency:
Preferred stock of $0.01 par value, authorized 10,000,000 shares: Series A Convertible: authorized 264,000 shares: issued and outstanding 4,030 shares as of June 30, 2019 and June 30, 2018	40	40
Common stock of $0.01 par value, authorized 300,000,000 shares; issued and outstanding 226,815,363 shares as of June 30, 2019 and 200,554,205 shares as of June 30, 2018	2,268,154	2,005,542
Additional paid-in capital	394,053,929	357,005,233
Accumulated deficit	(295,772,879)	(332,045,906)
Total stockholders' (deficiency) equity	100,549,244	26,964,909
Total liabilities and stockholders' equity	$ 104,735,136	$ 39,016,810

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2019	Jun. 30, 2018
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	4,030
Preferred stock, Series A Convertible, shares outstanding	4,030	4,030
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	226,815,363	200,554,205
Common stock, shares outstanding	226,815,363	200,554,205

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
REVENUES:
License and contract	$ 60,300,476	$ 67,134,758	$ 44,723,827
OPERATING EXPENSES:
Research and development	14,857,095	32,566,217	45,683,174
General and administrative	9,699,061	8,641,976	9,610,147
Total operating expenses	24,556,156	41,208,193	55,293,321
Income (loss) from operations	35,744,320	25,926,565	(10,569,494)
OTHER INCOME (EXPENSE):
Investment income	446,268	310,663	26,270
Interest expense	(417,561)	(1,452,014)	(2,288,309)
Total other income (expense), net	28,707	(1,141,351)	(2,262,039)
Income (loss) before income taxes	35,773,027	24,785,214	(12,831,533)
Income tax expense	0	(82,500)	(500,000)
NET INCOME (LOSS)	$ 35,773,027	$ 24,702,714	$ (13,331,533)
Basic net income (loss) per common share	$ 0.17	$ 0.12	$ (0.07)
Diluted net income (loss) income per common share	$ 0.16	$ 0.12	$ (0.07)
Weighted average number of common shares outstanding used in computing basic net income (loss) per common share	207,670,607	198,101,060	184,087,719
Weighted average number of common shares outstanding used in computing diluted income (loss) income per common share	217,133,374	207,007,558	184,087,719

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Loss - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ 35,773,027	$ 24,702,714	$ (13,331,533)
Other comprehensive loss
Unrealized gain on available-for-sale investments	0	590	1,354
Total comprehensive loss	$ 35,773,027	$ 24,703,304	$ (13,330,179)

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, 2016	$ 40	$ 685,680	$ 325,142,509	$ (1,944)	$ (343,412,252)	$ (17,585,967)
Preferred stock, shares - beginning at Jun. 30, 2016	4,030					4,030
Common stock, shares - beginning at Jun. 30, 2016		68,568,055				68,568,055
Sale of common stock units, net of costs		$ 368,661	23,488,312			$ 23,856,973
Sale of common stock units, net of costs, shares		36,866,097
Warrant exercises		$ 545,778	(381,420)			164,358
Warrant exercises, shares		54,577,802
Stock-based compensation		$ 5,794	1,751,465			1,757,259
Stock-based compensation, shares		579,400
Withholding taxes related to restricted stock units		$ (760)	(26,328)			(27,088)
Withholding taxes related to restricted stock units, shares		(75,993)
Unrealized gains (loss) on investments				1,354		1,354
Net income (loss)					(13,331,533)	(13,331,533)
Stockholders' equity (deficit) - ending at Jun. 30, 2017	$ 40	$ 1,605,153	349,974,538	(590)	(356,743,785)	$ (5,164,644)
Preferred stock, shares outstanding at Jun. 30, 2017	4,030					4,030
Common stock, shares - ending at Jun. 30, 2017		160,515,361				160,515,361
Sale of common stock units, net of costs		$ 12,838	1,244,936			$ 1,257,774
Sale of common stock units, net of costs, shares		1,283,754
Warrant exercises		$ 377,786	2,133,243			$ 2,511,029
Warrant exercises, shares		37,778,614				(208,900)
Option exercises		$ 2,089	157,792			$ 159,881
Option exercises, shares		208,900
Stock-based compensation		$ 7,951	3,510,400			3,518,351
Stock-based compensation, shares		795,041
Cumulative effect of accounting change			4,835		(4,835)	0
Withholding taxes related to restricted stock units		$ (275)	(20,511)			(20,786)
Withholding taxes related to restricted stock units, shares		(27,465)
Unrealized gains (loss) on investments				590		590
Net income (loss)					24,702,714	24,702,714
Stockholders' equity (deficit) - ending at Jun. 30, 2018	$ 40	$ 2,005,542	357,005,233	0	(332,327,906)	$ 26,964,909
Preferred stock, shares outstanding at Jun. 30, 2018	4,030					4,030
Common stock, shares - ending at Jun. 30, 2018		200,554,205				200,554,205
Sale of common stock units, net of costs		$ 247,858	32,888,202			$ 33,136,060
Sale of common stock units, net of costs, shares		24,785,814
Warrant exercises		$ 11,153	797,781			$ 808,934
Warrant exercises, shares		1,115,333				(270,500)
Option exercises		$ 1,374	(1,374)
Option exercises, shares		137,351
Stock-based compensation		$ 3,277	3,478,800			$ 3,482,077
Stock-based compensation, shares		327,692
Withholding taxes related to stock options		$ (380)	(49,391)			(49,771)
Withholding taxes related to stock options, shares		(37,994)
Withholding taxes related to restricted stock units		$ (670)	(65,322)			(65,992)
Withholding taxes related to restricted stock units, shares		(67,038)
Net income (loss)					35,773,027	35,773,027
Stockholders' equity (deficit) - ending at Jun. 30, 2019	$ 40	$ 2,268,154	$ 394,053,929	$ 0	$ (295,772,879)	$ 100,549,244
Preferred stock, shares outstanding at Jun. 30, 2019	4,030					4,030
Common stock, shares - ending at Jun. 30, 2019		226,815,363				226,815,363

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 35,773,027	$ 24,702,714	$ (13,331,533)
Adjustments to reconcile net income(loss) to net cash provided by (used) in operating activities:
Depreciation and amortization	58,635	56,569	33,051
Non-cash interest expense	51,234	175,493	298,790
Stock-based compensation	3,482,077	3,518,351	1,757,259
Deferred income tax benefit	0	(500,000)	0
Changes in operating assets and liabilities:
Accounts receivable	(60,265,970)	15,116,822	(15,116,822)
Prepaid expenses and other assets	35,399	715,533	308,917
Accounts payable	(1,718,906)	672,326	837,477
Accrued expenses	745,671	(8,393,698)	2,728,985
Deferred revenue	0	(34,550,572)	35,050,572
Other non-current liabilities	55,992	189,565	314,831
Net cash (used in) provided by operating activities	(21,782,841)	1,703,103	12,881,527
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale/maturity of investments	0	250,000	1,124,999
Purchases of property and equipment	(36,139)	(22,451)	(133,403)
Net cash provided by (used in) investing activities	(36,139)	227,549	991,596
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on capital lease obligations	0	(14,324)	(27,424)
Payment of withholding taxes related to restricted stock units and stock options	(115,763)	(45,165)	(2,708)
Payment on notes payable obligations	(6,500,000)	(8,000,000)	(5,666,666)
Proceeds from the exercise of stock options	0	159,881	0
Proceeds from exercise of common stock warrants	808,934	2,511,029	164,358
Proceeds from the sale of common stock and warrants, net of costs	33,136,060	1,257,774	23,856,973
Net cash provided by financing activities	27,329,231	(4,130,805)	18,324,533
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	5,510,251	(2,200,153)	32,197,656
CASH AND CASH EQUIVALENTS, beginning of period	38,000,171	40,200,324	8,002,668
CASH AND CASH EQUIVALENTS, end of period	43,510,422	38,000,171	40,200,324
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	354,456	1,084,158	1,676,954
Issuance of warrants in connection with debt financing	$ 0	$ 500,000	$ 0

1. ORGANIZATION

1. ORGANIZATION	12 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
1. ORGANIZATION	Palatin Technologies, Inc. (“Palatin” or the “Company”) is a specialized biopharmaceutical company developing first-in-class medicines based on molecules that modulate the activity of the melanocortin and natriuretic peptide receptor systems. The Company’s product candidates are targeted, receptor-specific therapeutics for the treatment of diseases with significant unmet medical need and commercial potential. Melanocortin Receptor System. The Company’s lead product, Vyleesi™, was approved by the U.S. Food and Drug Administration (“FDA”) in June 2019 and is being marketed in North America by AMAG Pharmaceuticals, Inc. (“AMAG”) for the treatment of hypoactive sexual desire disorder (“HSDD”) in premenopausal women. The Company’s new product development activities focus primarily on MC1r agonists, with potential to treat inflammatory and autoimmune diseases such as dry eye disease, which is also known as keratoconjunctivitis sicca, uveitis, diabetic retinopathy and inflammatory bowel disease. The Company believes that the MC1r agonist peptides in development have broad anti-inflammatory effects and appear to utilize mechanisms engaged by the endogenous melanocortin system in regulation of the immune system and resolution of inflammatory responses. The Company is also developing peptides that are active at more than one melanocortin receptor, and MC4r peptide and small molecule agonists with potential utility in obesity and metabolic-related disorders, including rare disease and orphan indications. Natriuretic Peptide Receptor System Business Risk and Liquidity – Income for fiscal 2019 and fiscal 2018 was based on the achieving development milestones. The Company has not yet earned revenue from the commercialization of Vyleesi. The Company anticipates incurring significant expenses in the future as a result of spending on its development programs and will require substantial additional financing or revenues to continue to fund its planned developmental activities. To achieve sustained 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 sustained profitability is highly uncertain, and the Company may never be able to achieve profitability on a sustained basis, if at all. As of June 30, 2019, the Company’s cash and cash equivalents were $43,510,422, accounts receivable were $60,265,970 and current liabilities were $4,185,892. Management intends to utilize existing capital resources for general corporate purposes and working capital, including, preclinical and clinical development of the Company’s MC1r and MC4r peptide programs and natriuretic peptide program, and development of other portfolio products. Management believes that the Company’s existing capital resources will be adequate to fund the Company’s planned operations through at least September 30, 2020. The Company will 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 could 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, 2019
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 from Contracts with Customers On July 1, 2018, the Company adopted ASC Topic 606 using the modified retrospective approach, a practical expedient permitted under ASC Topic 606, and applied this approach only to contracts that were not completed as of July 1, 2018. The Company calculated a one-time cumulative transition adjustment of $500,000 which was recorded on July 1, 2018 to the opening balance of accumulated deficit related to its license agreement (the “Kwangdong License Agreement”) with Kwangdong Pharmaceutical Co., Ltd. (“Kwangdong”) as the Company determined a significant revenue reversal would not occur in a future period. The one-time adjustment consisted of the recognition of $500,000 of deferred revenue. Revenue Recognition for Periods Prior to July 1, 2018 The Company has generated revenue solely through license and collaboration agreements. Prior to July 1, 2018, the Company recognized revenue in accordance with FASB ASC Topic 605-25, Revenue Recognition for Arrangements with Multiple Elements ● the delivered item had value to the customer on a stand-alone basis; and ● if the arrangement included a general right of return relative to the delivered item, delivery or performance of the undelivered item was considered probable and substantially in control of the vendor. Under FASB ASC Topic 605-25, if both of the criteria above were not met, then separate accounting for the individual deliverables was not appropriate. The Company determined that it was appropriate to recognize such revenue using the input-based proportional method during the period of Palatin’s development obligations as defined in the AMAG License Agreement. Refer to Note 4 for additional information. Under the Fosun License Agreement (Note 5), the Company received consideration in the form of an upfront license fee payment and determined that it was appropriate to recognize such consideration as revenue in the first quarter of fiscal 2018, which was the quarter in which the license was granted, since the license had stand-alone value and the upfront payment received by the Company was non-refundable. Under the Kwangdong License Agreement (Note 6), the Company received consideration in the form of an upfront license fee payment and determined that it was appropriate to record such consideration as deferred revenue because the upfront payment received by the Company is subject to certain refund provisions. Revenue resulting from the achievement of development milestones was recorded in accordance with the accounting guidance for the milestone method of revenue recognition. Amounts received prior to satisfying the revenue recognition criteria were recorded as deferred revenue on the Company’s consolidated balance sheet. Revenue Recognition for Periods Commencing July 1, 2018 For licenses of intellectual property, the Company assesses, at contract inception, whether the intellectual property is distinct from other performance obligations identified in the arrangement. If the licensing of intellectual property is determined to be distinct, revenue is recognized for nonrefundable, upfront license fees when the license is transferred to the customer and the customer can use and benefit from the license. If the licensing of intellectual property is determined not to be distinct, then the license will be bundled with other promises in the arrangement into one performance obligation. The Company needs to determine if the bundled performance obligation is satisfied over time or at a point in time. If the Company concludes that the nonrefundable, upfront license fees will be recognized over time, the Company will need to assess the appropriate method of measuring proportional performance. Regulatory milestone payments are excluded from the transaction price due to the inability to estimate the probability of reversal. Revenue relating to achievement of these milestones is recognized in the period in which the milestone is achieved. Sales-based royalty and milestone payments resulting from customer contracts solely or predominately for the license of intellectual property will only be recognized upon occurrence of the underlying sale or achievement of the sales milestone in the future and such sales-based royalties and milestone payments will be recognized in the same period earned. The Company recognizes revenue for reimbursements of research and development costs under collaboration agreements as the services are performed. The Company records these reimbursements as revenue and not as a reduction of research and development expenses as the Company is the principal in the research and development activities based upon its control of such activities, which is considered part of its ordinary activities. Development milestone payments are generally due 30 business days after the milestone is achieved. Sales milestone payments are generally due 45 business days after the calendar year in which the sales milestone is achieved. Royalty payments are generally due on a quarterly basis 20 business days after being invoiced. The cumulative effect of applying ASC Topic 606 to the Company’s consolidated balance sheet was as follows: Balance at June 30, 2018 Net Adjustment Balance at July 1, 2018 Deferred revenue $ 500,000 $ (500,000 ) $ - Accumulated deficit (332,045,906 ) 500,000 (331,545,906 ) The impact of adoption of ASC Topic 606 on the Company’s consolidated balance sheet as of June 30, 2019 is as follows: Impact of change in accounting policies As reported June 30, 2019 Adjustments As reported without adoption of ASC Topic 606 ASSETS Current assets: Cash and cash equivalents $ 43,510,422 $ - $ 43,510,422 Accounts Receiveable 60,265,970 - 60,265,970 Prepaid expenses and other current assets 637,289 - 637,289 Total current assets 104,413,681 - 104,413,681 - - Property and equipment, net 141,539 - 141,539 Other assets 179,916 - 179,916 Total assets $ 104,735,136 $ - $ 104,735,136 - LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 504,787 $ - $ 504,787 Accrued expenses 2,848,692 - 2,848,692 Notes payable, net of discount 332,896 - 332,896 Other current liabilities 499,517 - 499,517 Total current liabilities 4,185,892 - 4,185,892 - - Deferred revenue - 500,000 500,000 Total liabilities 4,185,892 500,000 4,685,892 Stockholders’ equity: Preferred stock 40 - 40 Common stock 2,268,154 - 2,268,154 Additional paid-in capital 394,053,929 - 394,053,929 Accumulated deficit (295,772,879 ) (500,000 ) (296,272,879 ) Total stockholders’ equity 100,549,244 (500,000 ) 100,049,244 Total liabilities and stockholders’ equity $ 104,735,136 $ - $ 104,735,136 ASC Topic 606 did not have an impact on the Company’s consolidated statements of operations or cash flows. Research and Development Costs Accrued Expenses – Stock-Based Compensation – Income Taxes On December 22, 2017, the U.S. government enacted wide-ranging tax legislation, the 2017 Tax Act. The 2017 Tax Act significantly revised U.S. tax law by, among other provisions, (a) lowering the applicable U.S. federal statutory corporate income tax rate from 35% to 21%, (b) eliminating or reducing certain income tax deductions, such as deductions for interest expense, executive compensation expenses and certain employee expenses, and (c) repealing the federal Alternate Minimum Tax (“AMT”) and providing for the refund of existing AMT credits. Other provisions enacted include a new provision designed to tax low-taxed income of foreign subsidiaries (i.e., “GILTI” and a one-time transition tax on the deemed repatriation of post-1986 undistributed foreign subsidiary earnings and profits from controlled foreign corporations. The Company does not have any foreign subsidiaries, and thus these provisions do not apply. Net Income (Loss) per Common Share - Earnings per Share The following table is a reconciliation of net income (loss) and the shares used in calculating basic and diluted net income (loss) per common share for the years ended June 30, 2019, 2018 and 2017: Year Ended June 30, 2019 2018 2017 Net income (loss) $ 35,773,027 $ 24,702,714 $ (13,331,533) Denominator: Weighted average common shares outstanding - Basic 207,670,607 198,101,060 184,087,719 Effect of dilutive shares: Common stock equivalents arising from stock options, warrants and conversion of preferred stock 7,142,309 6,752,604 - Restricted stock units 2,320,458 2,153,894 - Weighted average common shares outstanding - Diluted 217,133,374 207,007,558 184,087,719 Net income (loss) per common share: Basic $ 0.17 $ 0.12 $ (0.07) Diluted $ 0.16 $ 0.12 $ (0.07) As of June 30, 2019, 2018 and 2017 common shares issuable upon conversion of Series A Convertible Preferred Stock, the exercise of outstanding options and warrants, excluding outstanding warrants exercisable for nominal consideration, and the vesting of restricted stock units amounted in an aggregate of 6,130,876, 5,197,592, and 40,597,194 shares, respectively, being excluded from the weighted average number of common shares outstanding used in computing diluted net income (loss) per common share because they were anti-dilutive during the period or the minimum performance requirements or market conditions had not been met. Included in the weighted average common shares used in computing basic and diluted net income (loss) per common share are 6,138,166, 3,140,499 and 1,378,750 vested restricted stock units that had not been issued as of June 30, 2019, 2018 and 2017, respectively, due to a provision in the restricted stock unit agreements to delay delivery.

3. NEW AND RECENTLY ADOPTED ACC

3. NEW AND RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS	12 Months Ended
	Jun. 30, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
3. New and recently adopted accounting pronouncements	In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606. This update provides clarification on the interaction between Revenue Recognition (Topic 606) and Collaborative Arrangements (Topic 808), including the alignment of unit of account guidance between the two topics . The guidance is effective for public entities for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. The guidance is applicable to the Company beginning July 1, 2020. The Company is currently evaluating the potential effects of this guidance on its consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting 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 – Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU No. 2016-02, Leases, The Company will adopt the standard on July 1, 2019 and use the effective date as its initial date of application. The new standard provides practical expedients and certain exemptions for an entity’s ongoing accounting. The Company currently expects to elect the short-term lease recognition exemption for all leases that qualify. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities

4. AGREEMENT WITH AMAG

4. AGREEMENT WITH AMAG	12 Months Ended
	Jun. 30, 2019
Agreement With Amag Abstract
4. AGREEMENT WITH AMAG	On January 8, 2017, the Company entered into the AMAG License Agreement. Under the terms of the AMAG License Agreement, the Company granted to AMAG (i) an exclusive license in all countries of North America (the “Territory”), with the right to grant sub-licenses, to research, develop and commercialize products containing Vyleesi (each a “Product”, and collectively, “Products”), (ii) a non-exclusive license in the Territory, with the right to grant sub-licenses, to manufacture the Products, and (iii) a non-exclusive license in all countries outside the Territory, with the right to grant sub-licenses, to research, develop and manufacture (but not commercialize) the Products. Following the satisfaction of certain conditions to closing, the license agreement became effective on February 2, 2017. On that date, AMAG paid the Company $60,000,000 as a one-time initial payment. Pursuant to the terms of and subject to the conditions in the AMAG License Agreement, AMAG was required to reimburse the Company up to an aggregate amount of $25,000,000 for reasonable, documented, direct out-of-pocket expenses incurred by the Company following February 2, 2017, in connection with the development and regulatory activities necessary to file a New Drug Application (“NDA”) for Vyleesi for HSDD in the United States related to Palatin’s development obligations. The Company determined there was no stand-alone value for the license, and that the license and the reimbursable direct out-of-pocket expenses, pursuant to the terms of the License Agreement, represented a combined unit of accounting which totaled $85,000,000. The Company recognized revenue of the combined unit of accounting over the arrangement using the input-based proportional method as the Company completed its development obligations. For the years ended June 30, 2018 and 2017, the Company recognized $42,134,758 and $44,723,827, respectively, as license and contract revenue which included additional billings for AMAG related Vyleesi costs of $1,151,243 and $707,342 in fiscal 2018 and fiscal 2017 respectively. For the year ended June 30, 2019, additional billings were $300,476. On June 4, 2018, the FDA accepted the Vyleesi NDA for filing. The FDA’s acceptance triggered a $20,000,000 milestone payment to Palatin from AMAG. As a result, the Company recognized $20,000,000 in revenue related to regulatory milestones in fiscal 2018. On June 21, 2019, the FDA granted approval of Vyleesi for use in the United States. The FDA’s approval triggered a $60,000,000 milestone payment to Palatin from AMAG. As a result, the Company recognized $60,000,000 in revenue related to regulatory milestones in fiscal 2019. In addition, pursuant to the terms of and subject to the conditions in the AMAG License Agreement, the Company is eligible to receive from AMAG up to $300,000,000 in sales milestone payments based on achievement of certain annual net sales for all Products in the Territory. AMAG is also obligated to pay the Company tiered royalties on annual net sales of Products, on a product-by-product basis, in the Territory ranging from the high single-digits to the low double-digits. The royalties will expire on a product-by-product and country-by-country basis until the latest to occur of (i) the earliest date on which there are no valid claims of the Company’s patent rights covering such Product in such country, (ii) the expiration of the regulatory exclusivity period for such Product in such country and (iii) ten years following the first commercial sale of such Product in such country. Such royalties are subject to reductions in the event that: (a) AMAG must license additional third-party intellectual property in order to develop, manufacture or commercialize a Product, or (b) generic competition occurs with respect to a Product in a given country, subject to an aggregate cap on such deductions of royalties otherwise payable to the Company. After the expiration of the applicable royalties for any Product in a given country, the license for such Product in such country will become a fully paid-up, royalty-free, perpetual and irrevocable license. The Company engaged Greenhill & Co. LLC (“Greenhill”) as the Company’s sole financial advisor in connection with a potential transaction with respect to Vyleesi. Under the engagement agreement with Greenhill, the Company is obligated to pay Greenhill a fee equal to 2% of all proceeds and consideration, as defined, paid or to be paid to the Company by AMAG in connection with the AMAG License Agreement, subject to a minimum fee of $2,500,000. The minimum fee of $2,500,000, less a credit of $50,000 for an advisory fee previously paid by the Company, was paid to Greenhill and recorded as an expense upon the closing of the licensing transaction. This amount is credited toward amounts that were and will become due to Greenhill in the future, provided that the aggregate fee payable to Greenhill will not be less than 2% of all proceeds and consideration, as defined paid or to be paid to the Company by AMAG in connection with the AMAG License Agreement. The Company will generally pay Greenhill 2% of all future proceeds and consideration paid to the Company by AMAG in connection with the AMAG License Agreement, including milestone and royalty payments. The Company also reimbursed Greenhill $7,263 for certain expenses incurred in connection with its advisory services. Pursuant to the AMAG License Agreement, the Company has assigned to AMAG the Company’s manufacturing and supply agreements with Catalent Belgium S.A. to perform fill, finish and packaging of Vyleesi.

5. AGREEMENT WITH FOSUN

5. AGREEMENT WITH FOSUN	12 Months Ended
	Jun. 30, 2019
Agreement With Fosun
5. AGREEMENT WITH FOSUN	On September 6, 2017, the Company entered into the Fosun License Agreement for exclusive rights to commercialize Vyleesi in China. Under the terms of the agreement, the Company received $4,500,000 in October 2017, which consisted of an upfront payment of $5,000,000 less $500,000 that was withheld in accordance with tax withholding requirements in China and recorded as an expense during the year ended June 30, 2018. The Company will receive a $7,500,000 milestone payment when regulatory approval in China is obtained, provided that a commercial supply agreement for Vyleesi has been entered into. Palatin has the potential to receive up to $92,500,000 in additional sales related milestone payments and high single-digit to low double-digit royalties on net sales in the licensed territory. All development, regulatory, sales, marketing, and commercial activities and associated costs in the licensed territory will be the sole responsibility of Fosun.

6. AGREEMENT WITH KWANGDONG

6. AGREEMENT WITH KWANGDONG	12 Months Ended
	Jun. 30, 2019
Agreement With Kwangdong
6. AGREEMENT WITH KWANGDONG	On November 21, 2017, the Company entered into the Kwangdong License Agreement for exclusive rights to commercialize Vyleesi in Korea. Under the terms of the agreement, the Company received $417,500 in December 2017, consisting of an upfront payment of $500,000, less $82,500, which was withheld in accordance with tax withholding requirements in Korea and recorded as an expense during the year ended June 30, 2018. Based upon certain refund provisions, the upfront payment was recorded as non-current deferred revenue at June 30, 2018. On July 1, 2018, in conjunction with the adoption of ASC Topic 606, a one-time transition adjustment of $500,000 was recorded to the opening balance of accumulated deficit as the Company determined a significant revenue reversal would not occur in a future period. The Company will receive a $3,000,000 milestone payment based on the first commercial sale in Korea. Palatin has the potential to receive up to $37,500,000 in additional sales related milestone payments and mid-single-digit to low double-digit royalties on net sales in the licensed territory. All development, regulatory, sales, marketing, and commercial activities and associated costs in the licensed territory will be the sole responsibility of Kwangdong.

7. PREPAID EXPENSES AND OTHER C

7. PREPAID EXPENSES AND OTHER CURRENT ASSETS	12 Months Ended
	Jun. 30, 2019
Prepaid Expense and Other Assets, Current [Abstract]
7. PREPAID EXPENSES AND OTHER CURRENT ASSETS	Prepaid expenses June 30, June 30, 2019 2018 Clinical study costs $ 61,798 $ 145,994 Insurance premiums 87,937 42,605 Other 487,554 325,089 $ 637,289 $ 513,688

8. FAIR VALUE MEASUREMENTS

8. FAIR VALUE MEASUREMENTS	12 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
8. 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’s 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, 2019: Money Market Account $ 43,381,556 $ 43,381,556 $ - $ - June 30, 2018: Money Market Account $ 37,808,099 $ 37,808,099 $ - $ -

9. PROPERTY AND EQUIPMENT, NET

9. PROPERTY AND EQUIPMENT, NET	12 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
9. PROPERTY AND EQUIPMENT, NET	Property and equipment, net, consists of the following: June 30, June 30, 2019 2018 Office equipment $ 1,193,162 $ 1,193,162 Laboratory equipment 585,795 558,205 Leasehold improvements 751,226 751,226 2,530,183 2,502,593 Less: Accumulated depreciation and amortization (2,388,644 ) (2,338,558 ) $ 141,539 $ 164,035 The aggregate cost of assets acquired under capital leases was $146,115 as of both June 30, 2019 and 2018. Accumulated amortization associated with assets acquired under capital leases was $122,115 as of both June 30, 2019 and 2018.

10. ACCRUED EXPENSES

10. ACCRUED EXPENSES	12 Months Ended
	Jun. 30, 2019
Payables and Accruals [Abstract]
10. ACCRUED EXPENSES	Accrued expenses June 30, June 30, 2019 2018 Clinical study costs $ 943,721 $ 983,410 Other research related expenses 1,361,414 590,236 Professional services 317,500 297,731 Other 226,057 231,644 $ 2,848,692 $ 2,103,021

11. NOTES PAYABLE

11. NOTES PAYABLE	12 Months Ended
	Jun. 30, 2019
Notes Payable [Abstract]
11. NOTES PAYABLE	Notes payable consist of the following: June 30, June 30, 2019 2018 Notes payable under venture loan $ 333,333 $ 6,333,334 Unamortized related debt discount (295 ) (33,535 ) Unamortized debt issuance costs (142 ) (18,138 ) Notes payable 332,896 6,281,661 Less: current portion 332,896 5,948,763 Long-term portion $ - $ 332,898 On December 23, 2014, the Company closed on a $10,000,000 venture loan which was led by Horizon Technology Finance Corporation (“Horizon”). The debt facility was a four-year senior secured term loan that bore interest at a floating coupon rate of one-month LIBOR (floor of 0.50%) plus 8.50%, and provided for interest-only payments for the first eighteen months followed by monthly payments of principal 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 was amortized to interest expense over the term of the related debt. This debt discount was offset against the note payable balance and included in additional paid-in capital on the Company’s balance sheet. In addition, a final incremental payment of $500,000 was due on January 1, 2019, or upon early repayment of the loan. This final incremental payment was accreted to interest expense over the term of the related debt and included in other liabilities on the consolidated balance sheet. The Company incurred $209,367 of costs in connection with the loan. These costs were capitalized as deferred financing costs and were offset against the note payable balance. These debt issuance costs were amortized to interest expense over the term of the related debt. During the year ended June 30, 2019, the loan matured, and on December 31, 2018, the Company made the final incremental payment of $500,000. On July 2, 2015, the Company closed on a $10,000,000 venture loan 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 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 the Company’s 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 is included in additional paid-in capital on the Company’s balance sheet. 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 and is included in other current liabilities on the consolidated balance sheet as of June 30, 2019. The Company incurred $146,115 of costs in connection with the loan agreement. These costs were capitalized as deferred financing costs and are offset against the note payable balance. These debt issuance costs are being amortized to interest expense over the term of the related debt. The Company’s obligations under the 2015 amended and restated loan agreement, which included the 2015 venture loan, were secured by a first priority security interest in substantially all of its assets other than its intellectual property. The Company also agreed to specified limitations on pledging or otherwise encumbering its intellectual property assets. The 2015 amended and restated loan agreement included customary affirmative and restrictive covenants but did not include any covenants to attain or maintain specified financial metrics. The loan agreement included customary events of default, including payment defaults, breaches of covenants, change of control and a material adverse change default. As of June 30, 2019, the Company was in compliance with all of its loan covenants. Scheduled future principal payments related to notes payable as of June 30, 2019 were as follows: Year Ending June 30, 2020 $ 333,333 Less: Unamortized debt discount and issuance costs (437 ) Net $ 332,896 The final payments were made in July 2019.

12. COMMITMENTS AND CONTINGENCI

12. COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
12. COMMITMENTS AND CONTINGENCIES	Operating Leases For the years ended June 30, 2019, 2018 and 2017, rent expense was $285,453, $292,411, and $261,580 respectively. Employment Agreements Employee Retirement Savings Plan Contingencies Loss 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.

13. STOCKHOLDERS' EQUITY (DEFIC

13. STOCKHOLDERS' EQUITY (DEFICIENCY)	12 Months Ended
	Jun. 30, 2019
Stockholders' deficiency:
13. STOCKHOLDERS' EQUITY (DEFICIENCY)	Series A Convertible Preferred Stock Financing Transactions – On December 6, 2016, the Company closed on an underwritten public offering of units, with each unit consisting of a share of common stock and a Series J warrant to purchase 0.50 of a share of common stock. Gross proceeds of the offering were $16,500,000, with net proceeds to the Company, after deducting underwriting discounts and commissions and offering expenses, of $15,386,076. The Company issued 25,384,616 shares of common stock and Series J warrants to purchase 12,692,310 shares of common stock at an initial exercise price of $0.80 per share, which warrants are exercisable immediately upon issuance and expire on the fifth anniversary of the date of issuance. The Series J warrants are subject to a limitation on their exercise if the holder and its affiliates would beneficially own more than 9.99%, or 4.99% for certain holders, of the total number of the Company’s shares of common stock following such exercise. On August 4, 2016, the Company closed on an underwritten offering of units, with each unit consisting of a share of common stock and a Series H warrant to purchase 0.75 of a share of common stock. Investors whose purchase of units in the offering would result in them beneficially owning more than 9.99% of the Company’s outstanding common stock following the completion of the offering had the opportunity to acquire units with Series I prefunded warrants substituted for any common stock they would have otherwise acquired. Gross proceeds of the offering were $9,225,000, with net proceeds to the Company, after deducting offering expenses, of $8,470,897. The Company issued 11,481,481 shares of common stock and ten-year prefunded Series I warrants to purchase 2,218,045 shares of common stock at an exercise price of $0.01, together with Series H warrants to purchase 10,274,646 shares of common stock at an exercise price of $0.70 per share. The Series I warrants were exercisable immediately upon issuance and were exercised during the year ended June 30, 2017. 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 a limitation on their exercise if the holder and its affiliates would beneficially own more than 9.99% of the total number of the Company’s shares of common stock following such exercise. Outstanding Stock Purchase Warrants Shares of Common Exercise Price per Latest Termination Stock Share Date 666,666 0.75 December 23, 2019 2,191,781 0.91 July 2, 2020 549,450 0.91 July 2, 2020 9,441,313 0.70 August 4, 2021 25,000 0.70 August 4, 2021 9,414,503 0.80 December 6, 2021 22,288,713 During the year ended June 30, 2019, the Company received $225,600 and issued 282,000 shares of common stock pursuant to the exercise of warrants at an exercise price of $0.80 per share. The Company also received $583,334 and issued 833,333 shares of common stock pursuant to the exercise of warrants at an exercise price of $0.70 per share. During the year ended June 30, 2018, the Company received $2,396,646 and $114,383, respectively, and issued 2,995,807 shares of common stock pursuant to the exercise of warrants at an exercise price of $0.80 per share and issued 11,438,356 shares of common stock pursuant to the exercise of warrants at an exercise price of $0.01 per share. The Company also issued 23,344,451 shares of common stock pursuant to the cashless exercise provisions of warrants at an exercise price of $0.01 per share. As of June 30, 2018, there were no warrants outstanding at an exercise price of $0.01 per share. During the year ended June 30, 2017, the Company issued 38,141,991 shares of common stock pursuant to the cashless exercise provisions of warrants at an exercise price of $0.01 per share, and during the year ended June 30, 2017, the Company received $164,358 and issued 16,435,811 shares of common stock pursuant to the exercise of warrants at an exercise price of $0.01 per share. 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. On October 31, 2016, in connection with a contract for financial advisory services, the Company issued to each of PSL Business Development Consulting and SARL Avisius, or their permitted designees, as partial consideration for services, a warrant to purchase up to 12,500 shares of the Company’s common stock at an exercise price of $0.70 per share. The warrants are exercisable at any time and expire on August 4, 2021. The Company recorded stock-based compensation related to these stock warrants of $6,885 for the year ended June 30, 2017. Stock Plan – The Company 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, 2019, 2018 and 2017: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term in Years Aggregate Intrinsic Value Outstanding - July 1, 2016 5,261,740 1.21 6.2 Granted 4,119,000 0.46 Forfeited (410,388 ) 1.12 Expired (43,220 ) 22.59 Outstanding - June 30, 2017 8,927,132 0.76 7.5 Granted 4,182,550 0.90 Forfeited (39,500 ) 1.70 Exercised (208,900 ) 0.77 Expired (85,820 ) 6.95 Outstanding - June 30, 2018 12,775,462 0.76 7.7 Granted 2,340,200 1.34 Forfeited (280,362 ) 0.62 Exercised (270,500 ) 0.64 Expired (129,150 ) 1.77 Outstanding - June 30, 2019 14,435,650 $ 0.85 7.3 $ 5,021,759 Exercisable at June 30, 2019 8,226,113 $ 0.77 6.1 $ 3,311,791 Expected to vest at June 30, 2019 6,209,537 $ 0.95 8.9 $ 1,709,968 Stock options granted to the Company’s executive officers and employees generally vest over a 48-month period, while stock options granted to its non-employee directors vest over a 12-month period. Included in the options outstanding above are 1,075,000 and 117,500 performance-based options granted in December 2017 to executive officers and employees, respectively, which vest during a performance period ending on December 31, 2020, if and upon either i) as to 100% of the target number of shares upon achievement of a closing price for the Company’s common stock equal to or greater than $1.50 per share for 20 consecutive trading days, which is considered a market condition; or ii) as to thirty percent (30%) of the target number of shares, upon the acceptance for filing by the FDA of an NDA for Vyleesi for HSDD in premenopausal women during the performance period, which is considered a performance condition; iii) as to fifty percent (50%) of the target number of shares, upon the approval by the FDA of an NDA for Vyleesi for HSDD in premenopausal women during the performance period, which is also considered a performance condition; iv) as to twenty percent (20%) of the target number of shares, upon entry into a licensing agreement during the performance period for the commercialization of Vyleesi for FSD in at least two of the following geographic areas (a) four or more countries in Europe, (b) Japan, (c) two or more countries in Central and/or South America, (d) two or more countries in Asia, excluding Japan and China, and (e) Australia, which is also considered a performance condition. The fair value of these options was $602,760. The Company amortized the fair value over the derived service period of 1.1 years or upon the attainment of the performance condition. Pursuant to the FDA acceptance of the NDA filing of Vyleesi, 30% of the target number of options vested in June 2018 and 50% of the target number of options vested in June 2019 upon FDA approval of Vyleesi. For the years ended June 30, 2019, 2018 and 2017, the fair value of option grants was estimated at the grant date using the Black-Scholes model or a multi-factor Monte Carlo simulation. The Company’s weighted average assumptions for the years ended June 30, 2019, 2018 and 2017 were as follows: 2019 2018 2017 Risk-free interest rate 1.9 % 1.8 % 1.7 % Volatility factor 69.3 % 52.6 % 75.0 % Dividend yield 0 % 0 % 0 % Expected option life (years) 6.1 6.0 6.2 Weighted average grant date fair value $ 0.85 $ 0.58 $ 0.27 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, 2019, 2018 and 2017, the Company recorded stock-based compensation related to stock options of $1,116,350, $1,131,895, and $547,953. As of June 30, 2019, there was $3,468,126 of unrecognized compensation cost related to unvested options, which is expected to be recognized over a weighted-average period of 3.1 years. During fiscal 2019, the terms of certain options were modified to accelerate vesting and extend the date to exercise the options. As a result, the Company recorded additional stock-based compensation of $111,499. In connection with the cashless exercise of stock options during the year ended June 30, 2019, the Company withheld 37,994 shares with aggregate value of 49,771 in satisfaction of minimum tax withholding obligations. Restricted Stock Units – 2019 2018 2017 Outstanding at beginning of year 9,323,876 5,209,617 2,665,768 Granted 1,517,450 4,914,550 3,192,000 Forfeited (182,351 ) (5,250 ) (68,751 ) Vested (331,142 ) (795,041 ) (579,400 ) Outstanding at end of year 10,327,833 9,323,876 5,209,617 For the years ended June 30, 2019, 2018 and 2017 the Company recorded stock-based compensation related to restricted stock units of $2,143,640, $2,386,456, and $1,202,421, respectively. During fiscal 2019, the terms of certain restricted stock units were modified to accelerate vesting. As a result, the Company recorded additional stock-based compensation of $110,589. Included in outstanding restricted stock units in the table above are 6,138,166 vested shares that have not been issued as of June 30, 2019 due to a provision in the restricted stock unit agreements to delay delivery. Time-based restricted stock units granted to the Company’s executive officers, employees and non-employee directors generally vest over 24 months, 48 months and 12 months, respectively. In June 2019, the Company granted 438,000 performance-based restricted stock units to its executive officers and 182,725 performance-based restricted stock units to other employees which vest during a performance period ending June 24, 2023. The performance-based restricted stock units vest on performance criteria relating to advancement of MC1r programs, including initiation of clinical trials and licensing of Vyleesi in additional countries or regions. In December 2017, the Company granted 1,075,000 performance-based restricted stock units to its executive officers and 670,000 performance-based restricted stock units to other employees which vest during a performance period, ending on December 31, 2020, if and upon either i) as to 100% of the target number of shares upon achievement of a closing price for the Company’s common stock equal to or greater than $1.50 per share for 20 consecutive trading days, which is considered a market condition; or ii) as to thirty percent (30%) of the target number of shares, upon the acceptance for filing by the FDA of an NDA for Vyleesi for HSDD in premenopausal women during the performance period, which is considered a performance condition; iii) as to fifty percent (50%) of the target number of shares, upon the approval by the FDA of an NDA for Vyleesi for HSDD in premenopausal women during the performance period, which is also considered a performance condition; iv) as to twenty percent (20%) of the target number of shares, upon entry into a licensing agreement during the performance period for the commercialization of Vyleesi for FSD in at least two of the following geographic areas (a) four or more countries in Europe, (b) Japan, (c) two or more countries in Central and/or South America, (d) two or more countries in Asia, excluding Japan and China, and (e) Australia, which is also considered a performance condition. The fair value of these awards was $913,750 and $569,500, respectively. The Company amortized the fair value over the derived service period of 1.1 years or upon the attainment of the performance condition. Pursuant to the FDA acceptance of the NDA filing for Vyleesi, 30% of the target number of shares vested in June 2018. Pursuant to the FDA approval of Vyleesi, 50% of the target number of shares vested in June 2019. In connection with the vesting of restricted share units during the years ended June 30, 2019, 2018 and 2017, the Company withheld 67,038, 27,465, and 75,993 shares with aggregate values of $65,992, $20,786, and $27,088 respectively, in satisfaction of minimum tax withholding obligations.

14. INCOME TAXES

14. INCOME TAXES	12 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
14. INCOME TAXES	For fiscal 2019, the Company recorded no income tax expense as a result of the utilization of net operating losses that were subject to a full valuation allowance. For fiscal 2018, the Company recorded income tax expense of $82,500, which consisted of $500,000 that was withheld in accordance with tax withholding requirements in China related to the Fosun License Agreement (Note 5) and $82,500, which was withheld in accordance with tax withholding requirements in Korea related to the Kwangdong License Agreement (Note 6). Any potential credit to be received by the Company on its United States tax returns is offset by the Company’s valuation allowance. The total income tax expense of $582,500 was offset by an income tax benefit of $500,000, which resulted from the 2017 Tax Act, under which AMT credits became refundable, and therefore a $500,000 benefit related to the release of a valuation allowance against an AMT credit was recorded during the quarter ended December 2017. The Company’s June 30, 2017 tax return was filed during the quarter ended March 31, 2018 and the Company did not incur an AMT liability. As a result, as of June 30, 2018, the Company had a current income tax receivable of $218,000 and a long-term income tax receivable of $282,000 from estimated fiscal 2018 AMT that can be refunded in the future. As of June 30, 2019, based upon the filing of the Company’s June 30, 2018 tax return, the Company has a current income tax receivable of $376,000 and a long-term income tax receivable of $123,000. For fiscal 2017, the Company incurred $500,000 of estimated federal AMT expense based on estimated federal alternative minimum taxable income attributable to the $60,000,000 initial payment from AMAG. 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. For fiscal 2018, as a result of the enactment of the new corporate income tax rate, the Company remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse, but continues to maintain a full valuation allowance against its deferred tax assets. As of June 30, 2019, the Company had state net operating loss carryforwards of approximately $80,000,000, which will expire, if not utilized, between 2032 and 2037, federal net operating loss carryforwards of approximately $62,100,000, federal research and development credits of approximately $6,200,000, which expire, if not utilized, between 2020 and 2039, and foreign tax credits of $582,500, which expire, if not utilized, in 2028. 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. The Company assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. The Company also considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income, and tax-planning strategies in making this assessment. Based on a history of losses incurred, the Company has recognized a full valuation allowance against its net deferred tax assets during the years ended June 30, 2019, 2018, and 2017. A sustained period of profitability in the Company’s operations is required before it would change its judgment regarding the need for a full valuation allowance against its net deferred tax assets. Accordingly, although the Company was profitable in fiscal 2018 and fiscal 2019 based in part on revenue recorded upon the achievement of certain regulatory milestones, the Company continues to record a full valuation allowance against the net deferred tax assets. Although the weight of negative evidence related to cumulative losses is decreasing as the Company delivers on its programs, management believes that this objectively-measured negative evidence outweighs current subjective positive evidence of potential operating results and, as such, the Company has not changed its judgment regarding the need for a full valuation allowance as of June 30, 2019. Continued improvement in the Company’s operating results, however, could lead to a reversal of all or some portion of the valuation allowance. Until such time, the use of net operating loss carryforwards and tax credits to offset profits, if any, will reduce the overall level of deferred tax assets subject to valuation allowance. The Tax Reform Act of 1986 (the “Act”) provides for limitation on the use of the Company’s net operating loss and research and development tax credit carryforwards following certain ownership changes (as defined by the Act) that could limit the Company’s ability to utilize these carryforwards. Since its inception, the Company has completed several financings and sales of common stock which has resulted in multiple ownership changes defined by Section 382 of the Act. Accordingly, the Company’s ability to utilize the aforementioned carryforwards are subject to limitation under Section 382. The Company does have adequate levels of available net operating loss carryforwards that are not subject to limitation under Section 382 to offset taxable income during the tax year ended June 30, 2019. If the Company undergoes a future ownership change or as it completes its Section 382 limitation assessment, any unutilized carryforwards that were not previously subject to a Section 382 limitation may become subject to limitation which may result in a significant limitation and loss of net operating loss carryforwards and research and development credits. Additionally, U.S. tax laws limit the time during which these carryforwards may be applied against future taxes; therefore, the Company may not be able to take full advantage of these carryforwards for federal income tax purposes. Accordingly, a portion of the carryforwards may expire unutilized. The Company’s net deferred tax assets are as follows: June 30, June 30, 2019 2018 Net operating loss carryforwards $ 18,724,000 $ 29,504,000 Research and development and AMT tax credits 6,207,000 5,649,000 Foreign tax credits 583,000 583,000 Basis differences in fixed assets and other 1,072,000 1,734,000 26,586,000 37,470,000 Valuation allowance (26,586,000 ) (37,470,000 ) Net deferred tax assets $ - $ - The Company recognizes interest expense and penalties on uncertain income tax positions as a component of interest expense. No interest expense or penalties were recorded for uncertain income tax matters in fiscal 2019, 2018 or 2017. As of June 30, 2019 and 2018, the Company had no liabilities for uncertain income tax matters.

15. CONSOLIDATED QUARTERLY FINA

15. CONSOLIDATED QUARTERLY FINANCIAL DATA - UNAUDITED	12 Months Ended
	Jun. 30, 2019
Quarterly Financial Information Disclosure [Abstract]
15. CONSOLIDATED QUARTERLY FINANCIAL DATA - UNAUDITED	The following tables provide quarterly data for the years ended June 30, 2019 and 2018. Three Months Ended June 30, March 31, December 31, September 30, 2019 2019 2018 2018 (amounts in thousands, except per share data) Revenues $ 60,265 $ - $ - $ 35 Operating expenses 8,080 5,763 5,050 5,663 Other income(expense), net 39 36 8 (54) Income (loss) before income taxes 52,224 (5,727) (5,042) (5,682) Income taxes - - - - Net income (loss) $ 52,224 $ (5,727) $ (5,042) $ (5,682) Basic net income (loss) per $ 0.25 $ (0.03) $ (0.02) $ (0.03) Diluted net income (loss) per $ 0.23 $ (0.03) $ (0.02) $ (0.03) Weighted average number of common shares outstanding used in computing basic net income (loss) per common share 212,253,194 207,016,304 206,487,984 205,009,278 Weighted average number of common shares outstanding used in computing diluted net income (loss) per common share 228,526,106 207,016,304 206,487,984 205,009,278 Three Months Ended June 30, March 31, December 31, September 30, 2018 2018 2017 2017 (amounts in thousands, except per share data) Revenues $ 20,618 $ 8,963 $ 10,612 $ 26,942 Operating expenses 8,349 9,480 7,671 15,708 Other expense, net (185) (241) (310) (405) Income (loss) before income taxes 12,083 (758) 2,631 10,829 Income taxes (276) 19 399 (225) Net income (loss) $ 11,807 $ (739) $ 3,030 $ 10,604 Basic net income (loss) per $ 0.06 $ - $ 0.02 $ 0.05 Diluted net income (loss) per $ 0.06 $ - $ 0.01 $ 0.05 Weighted average number of common shares outstanding used in computing basic net income (loss) per common share 200,581,435 197,485,758 197,238,056 197,112,400 Weighted average number of common shares outstanding used in computing diluted net income (loss) per common share 211,047,927 197,485,758 202,711,616 201,360,736

1. ORGANIZATION (Policies)

1. ORGANIZATION (Policies)	12 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	Palatin Technologies, Inc. (“Palatin” or the “Company”) is a specialized biopharmaceutical company developing first-in-class medicines based on molecules that modulate the activity of the melanocortin and natriuretic peptide receptor systems. The Company’s product candidates are targeted, receptor-specific therapeutics for the treatment of diseases with significant unmet medical need and commercial potential. Melanocortin Receptor System. The Company’s lead product, Vyleesi™, was approved by the U.S. Food and Drug Administration (“FDA”) in June 2019, and is being marketed in North America by AMAG Pharmaceuticals, Inc. (“AMAG”) for the treatment of hypoactive sexual desire disorder (“HSDD”) in premenopausal women. The Company’s new product development activities focus primarily on MC1r agonists, with potential to treat inflammatory and autoimmune diseases such as dry eye disease, which is also known as keratoconjunctivitis sicca, uveitis, diabetic retinopathy and inflammatory bowel disease. The Company believes that the MC1r agonist peptides in development have broad anti-inflammatory effects and appear to utilize mechanisms engaged by the endogenous melanocortin system in regulation of the immune system and resolution of inflammatory responses. The Company is also developing peptides that are active at more than one melanocortin receptor, and MC4r peptide and small molecule agonists with potential utility in obesity and metabolic-related disorders, including rare disease and orphan indications. Natriuretic Peptide Receptor System
Business Risk and Liquidity	Since inception, the Company has incurred negative cash flows from operations, and has expended, and expects to continue to expend, 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, 2019 of $295,772,879. Income for fiscal 2019 and fiscal 2018 was based on the achieving development milestones. The Company has not yet earned revenue from the commercialization of Vyleesi. The Company anticipates incurring significant expenses in the future as a result of spending on its development programs and will require substantial additional financing or revenues to continue to fund its planned developmental activities. To achieve sustained 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 sustained profitability is highly uncertain, and the Company may never be able to achieve profitability on a sustained basis, if at all. As of June 30, 2019, the Company’s cash and cash equivalents were $43,510,422, accounts receivable were $60,265,970 and current liabilities were $4,185,892. Management intends to utilize existing capital resources for general corporate purposes and working capital, including, preclinical and clinical development of the Company’s MC1r and MC4r peptide programs and natriuretic peptide program, and development of other portfolio products. Management believes that the Company’s existing capital resources will be adequate to fund the Company’s planned operations through at least September 30, 2020. The Company will 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 could 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 accounts receivable. The Company’s cash and cash equivalents are primarily invested in one money market account sponsored by a large financial institution. For the year ended June 30, 2019, the Company reported $60,300,476 in license and contract revenue related to a license agreement with AMAG for Vyleesi for North America (“AMAG License Agreement”) (Note 4). For the year ended June 30, 2018, the Company reported $62,134,758 in license and contract revenue related to the AMAG License Agreement. In addition, for the year ended June 30, 2018, the Company reported $5,000,000 in license revenue related to a license agreement with Shanghai Fosun Pharmaceutical Industrial Development Co. Ltd. (“Fosun”) for Vyleesi for China and certain other Asian territories (“Fosun License Agreement”) (Note 5). For the year ended June 30, 2017, the Company reported $44,723,827 in contract revenue related to the AMAG License Agreement.

2. SUMMARY OF SIGNIFICANT ACC_2

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
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 $43,381,556 and $37,808,099 in a money market account at June 30, 2019 and 2018, 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 income (loss). 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 receivable, accounts payable and notes payable. Management believes that the carrying values of cash equivalents, accounts receivable 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 the 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 and accounts receivable. Total cash and cash equivalent balances have exceeded balances insured by the Federal Depository Insurance Company (“FDIC”). The Company’s accounts receivable balance at June 30, 2019 has arisen from a milestone payment due from AMAG as it related to the FDA’s approval of Vyleesi and was subsequently collected in July 2019.
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	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers On July 1, 2018, the Company adopted ASC Topic 606 using the modified retrospective approach, a practical expedient permitted under ASC Topic 606, and applied this approach only to contracts that were not completed as of July 1, 2018. The Company calculated a one-time cumulative transition adjustment of $500,000 which was recorded on July 1, 2018 to the opening balance of accumulated deficit related to its license agreement (the “Kwangdong License Agreement”) with Kwangdong Pharmaceutical Co., Ltd. (“Kwangdong”) as the Company determined a significant revenue reversal would not occur in a future period. The one-time adjustment consisted of the recognition of $500,000 of deferred revenue. Revenue Recognition for Periods Prior to July 1, 2018 The Company has generated revenue solely through license and collaboration agreements. Prior to July 1, 2018, the Company recognized revenue in accordance with FASB ASC Topic 605-25, Revenue Recognition for Arrangements with Multiple Elements ● the delivered item had value to the customer on a stand-alone basis; and ● if the arrangement included a general right of return relative to the delivered item, delivery or performance of the undelivered item was considered probable and substantially in control of the vendor. Under FASB ASC Topic 605-25, if both of the criteria above were not met, then separate accounting for the individual deliverables was not appropriate. The Company determined that it was appropriate to recognize such revenue using the input-based proportional method during the period of Palatin’s development obligations as defined in the AMAG License Agreement. Refer to Note 4 for additional information. Under the Fosun License Agreement (Note 5), the Company received consideration in the form of an upfront license fee payment and determined that it was appropriate to recognize such consideration as revenue in the first quarter of fiscal 2018, which was the quarter in which the license was granted, since the license had stand-alone value and the upfront payment received by the Company was non-refundable. Under the Kwangdong License Agreement (Note 6), the Company received consideration in the form of an upfront license fee payment and determined that it was appropriate to record such consideration as deferred revenue because the upfront payment received by the Company is subject to certain refund provisions. Revenue resulting from the achievement of development milestones was recorded in accordance with the accounting guidance for the milestone method of revenue recognition. Amounts received prior to satisfying the revenue recognition criteria were recorded as deferred revenue on the Company’s consolidated balance sheet. Revenue Recognition for Periods Commencing July 1, 2018 For licenses of intellectual property, the Company assesses, at contract inception, whether the intellectual property is distinct from other performance obligations identified in the arrangement. If the licensing of intellectual property is determined to be distinct, revenue is recognized for nonrefundable, upfront license fees when the license is transferred to the customer and the customer can use and benefit from the license. If the licensing of intellectual property is determined not to be distinct, then the license will be bundled with other promises in the arrangement into one performance obligation. The Company needs to determine if the bundled performance obligation is satisfied over time or at a point in time. If the Company concludes that the nonrefundable, upfront license fees will be recognized over time, the Company will need to assess the appropriate method of measuring proportional performance. Regulatory milestone payments are excluded from the transaction price due to the inability to estimate the probability of reversal. Revenue relating to achievement of these milestones is recognized in the period in which the milestone is achieved. Sales-based royalty and milestone payments resulting from customer contracts solely or predominately for the license of intellectual property will only be recognized upon occurrence of the underlying sale or achievement of the sales milestone in the future and such sales-based royalties and milestone payments will be recognized in the same period earned. The Company recognizes revenue for reimbursements of research and development costs under collaboration agreements as the services are performed. The Company records these reimbursements as revenue and not as a reduction of research and development expenses as the Company is the principal in the research and development activities based upon its control of such activities, which is considered part of its ordinary activities. Development milestone payments are generally due 30 business days after the milestone is achieved. Sales milestone payments are generally due 45 business days after the calendar year in which the sales milestone is achieved. Royalty payments are generally due on a quarterly basis 20 business days after being invoiced. The cumulative effect of applying ASC Topic 606 to the Company’s consolidated balance sheet was as follows: Balance at June 30, 2018 Net Adjustment Balance at July 1, 2018 Deferred revenue $ 500,000 $ (500,000 ) $ - Accumulated deficit (332,045,906 ) 500,000 (331,545,906 ) The impact of adoption of ASC Topic 606 on the Company’s consolidated balance sheet as of June 30, 2019 is as follows: Impact of change in accounting policies As reported June 30, 2019 Adjustments As reported without adoption of ASC Topic 606 ASSETS Current assets: Cash and cash equivalents $ 43,510,422 $ - $ 43,510,422 Accounts Receiveable 60,265,970 - 60,265,970 Prepaid expenses and other current assets 637,289 - 637,289 Total current assets 104,413,681 - 104,413,681 - - Property and equipment, net 141,539 - 141,539 Other assets 179,916 - 179,916 Total assets $ 104,735,136 $ - $ 104,735,136 - LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 504,787 $ - $ 504,787 Accrued expenses 2,848,692 - 2,848,692 Notes payable, net of discount 332,896 - 332,896 Other current liabilities 499,517 - 499,517 Total current liabilities 4,185,892 - 4,185,892 - - Deferred revenue - 500,000 500,000 Total liabilities 4,185,892 500,000 4,685,892 Stockholders’ equity: Preferred stock 40 - 40 Common stock 2,268,154 - 2,268,154 Additional paid-in capital 394,053,929 - 394,053,929 Accumulated deficit (295,772,879 ) (500,000 ) (296,272,879 ) Total stockholders’ equity 100,549,244 (500,000 ) 100,049,244 Total liabilities and stockholders’ equity $ 104,735,136 $ - $ 104,735,136 ASC Topic 606 did not have an impact on the Company’s consolidated statements of operations or cash flows.
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 the Company’s development activities. The Company reviews the activities performed under all contracts each quarter and accrues expenses and the amount of any reimbursement to be received from its 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 the Company does not identify services performed for it but not billed by the service-provider, or if it underestimates or overestimates 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. Compensation costs for stock-based awards with time-based vesting are determined using the quoted market price of the Company’s common stock on the date of grant or for stock options, the value determined utilizing the Black-Scholes option pricing model, and are recognized on a straight-line basis, while awards containing a market condition are valued using multifactor Monte Carlo simulations. Compensation costs for awards containing a performance condition are determined using the quoted price of the Company’s common stock on the date of grant or for stock options, the value is determined utilizing the Black Scholes option pricing model, and are recognized based on the probability of achievement of the performance condition over the service period. Forfeitures are recognized as they occur.
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 and continues to maintain a full valuation allowance against its deferred tax assets based on the history of losses incurred and lack of experience projecting future sales-based royalty and milestone payments. On December 22, 2017, the U.S. government enacted wide-ranging tax legislation, the 2017 Tax Act. The 2017 Tax Act significantly revised U.S. tax law by, among other provisions, (a) lowering the applicable U.S. federal statutory corporate income tax rate from 35% to 21%, (b) eliminating or reducing certain income tax deductions, such as deductions for interest expense, executive compensation expenses and certain employee expenses, and (c) repealing the federal Alternate Minimum Tax (“AMT”) and providing for the refund of existing AMT credits. Other provisions enacted include a new provision designed to tax low-taxed income of foreign subsidiaries (i.e., “GILTI” and a one-time transition tax on the deemed repatriation of post-1986 undistributed foreign subsidiary earnings and profits from controlled foreign corporations. The Company does not have any foreign subsidiaries, and thus these provisions do not apply.
Net Income (Loss) per Common Share	Basic and diluted earnings per common share (“EPS”) are calculated in accordance with the provisions of FASB Accounting Standards Codification (“ASC”) Topic 260, Earnings per Share The following table is a reconciliation of net income (loss) and the shares used in calculating basic and diluted net income (loss) per common share for the years ended June 30, 2019, 2018 and 2017: Year Ended June 30, 2019 2018 2017 Net income (loss) $ 35,773,027 $ 24,702,714 $ (13,331,533) Denominator: Weighted average common shares outstanding - Basic 207,670,607 198,101,060 184,087,719 Effect of dilutive shares: Common stock equivalents arising from stock options, warrants and conversion of preferred stock 7,142,309 6,752,604 - Restricted stock units 2,320,458 2,153,894 - Weighted average common shares outstanding - Diluted 217,133,374 207,007,558 184,087,719 Net income (loss) per common share: Basic $ 0.17 $ 0.12 $ (0.07) Diluted $ 0.16 $ 0.12 $ (0.07) As of June 30, 2019, 2018 and 2017 common shares issuable upon conversion of Series A Convertible Preferred Stock, the exercise of outstanding options and warrants, excluding outstanding warrants exercisable for nominal consideration, and the vesting of restricted stock units amounted in an aggregate of 6,130,876, 5,197,592, and 40,597,194 shares, respectively, being excluded from the weighted average number of common shares outstanding used in computing diluted net income (loss) per common share because they were anti-dilutive during the period or the minimum performance requirements or market conditions had not been met. Included in the weighted average common shares used in computing basic and diluted net income (loss) per common share are 6,138,166, 3,140,499 and 1,378,750 vested restricted stock units that had not been issued as of June 30, 2019, 2018 and 2017, respectively, due to a provision in the restricted stock unit agreements to delay delivery

2. SUMMARY OF SIGNIFICANT ACC_3

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Impact of adoption of ASC Topic 606	The cumulative effect of applying ASC Topic 606 to the Company’s consolidated balance sheet was as follows: Balance at June 30, 2018 Net Adjustment Balance at July 1, 2018 Deferred revenue $ 500,000 $ (500,000 ) $ - Accumulated deficit (332,045,906 ) 500,000 (331,545,906 ) The impact of adoption of ASC Topic 606 on the Company’s consolidated balance sheet as of June 30, 2019 is as follows: Impact of change in accounting policies As reported June 30, 2019 Adjustments As reported without adoption of ASC Topic 606 ASSETS Current assets: Cash and cash equivalents $ 43,510,422 $ - $ 43,510,422 Accounts Receiveable 60,265,970 - 60,265,970 Prepaid expenses and other current assets 637,289 - 637,289 Total current assets 104,413,681 - 104,413,681 - - Property and equipment, net 141,539 - 141,539 Other assets 179,916 - 179,916 Total assets $ 104,735,136 $ - $ 104,735,136 - LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 504,787 $ - $ 504,787 Accrued expenses 2,848,692 - 2,848,692 Notes payable, net of discount 332,896 - 332,896 Other current liabilities 499,517 - 499,517 Total current liabilities 4,185,892 - 4,185,892 - - Deferred revenue - 500,000 500,000 Total liabilities 4,185,892 500,000 4,685,892 Stockholders’ equity: Preferred stock 40 - 40 Common stock 2,268,154 - 2,268,154 Additional paid-in capital 394,053,929 - 394,053,929 Accumulated deficit (295,772,879 ) (500,000 ) (296,272,879 ) Total stockholders’ equity 100,549,244 (500,000 ) 100,049,244 Total liabilities and stockholders’ equity $ 104,735,136 $ - $ 104,735,136
Schedule of earnings per share	Year Ended June 30, 2019 2018 2017 Net income (loss) $ 35,773,027 $ 24,702,714 $ (13,331,533) Denominator: Weighted average common shares outstanding - Basic 207,670,607 198,101,060 184,087,719 Effect of dilutive shares: Common stock equivalents arising from stock options, warrants and conversion of preferred stock 7,142,309 6,752,604 - Restricted stock units 2,320,458 2,153,894 - Weighted average common shares outstanding - Diluted 217,133,374 207,007,558 184,087,719 Net income (loss) per common share: Basic $ 0.17 $ 0.12 $ (0.07) Diluted $ 0.16 $ 0.12 $ (0.07)

7. PREPAID EXPENSES AND OTHER_2

7. PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	12 Months Ended
	Jun. 30, 2019
Prepaid Expense and Other Assets, Current [Abstract]
Schedule of prepaid expenses and other current assets	June 30, June 30, 2019 2018 Clinical study costs $ 61,798 $ 145,994 Insurance premiums 87,937 42,605 Other 487,554 325,089 $ 637,289 $ 513,688

8. FAIR VALUE MEASUREMENTS (Tab

8. FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Jun. 30, 2019
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, 2019: Money Market Account $ 43,381,556 $ 43,381,556 $ - $ - June 30, 2018: Money Market Account $ 37,808,099 $ 37,808,099 $ - $ -

9. PROPERTY AND EQUIPMENT, NET

9. PROPERTY AND EQUIPMENT, NET (Tables)	12 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Property and equipment	June 30, June 30, 2019 2018 Office equipment $ 1,193,162 $ 1,193,162 Laboratory equipment 585,795 558,205 Leasehold improvements 751,226 751,226 2,530,183 2,502,593 Less: Accumulated depreciation and amortization (2,388,644 ) (2,338,558 ) $ 141,539 $ 164,035

10. ACCRUED EXPENSES (Tables)

10. ACCRUED EXPENSES (Tables)	12 Months Ended
	Jun. 30, 2019
Payables and Accruals [Abstract]
Accrued Expenses	June 30, June 30, 2019 2018 Clinical study costs $ 943,721 $ 983,410 Other research related expenses 1,361,414 590,236 Professional services 317,500 297,731 Other 226,057 231,644 $ 2,848,692 $ 2,103,021

11. NOTES PAYABLE (Tables)

11. NOTES PAYABLE (Tables)	12 Months Ended
	Jun. 30, 2019
Notes Payable [Abstract]
Schedule of notes payable	June 30, June 30, 2019 2018 Notes payable under venture loan $ 333,333 $ 6,333,334 Unamortized related debt discount (295 ) (33,535 ) Unamortized debt issuance costs (142 ) (18,138 ) Notes payable 332,896 6,281,661 Less: current portion 332,896 5,948,763 Long-term portion $ - $ 332,898
Schedule of future principal payments	Year Ending June 30, 2020 $ 333,333 Less: Unamortized debt discount and issuance costs (437 ) Net $ 332,896

13. STOCKHOLDERS' DEFICIENCY (T

13. STOCKHOLDERS' DEFICIENCY (Tables)	12 Months Ended
	Jun. 30, 2019
Stockholders' deficiency:
Outstanding Stock Purchase Warrants	Shares of Common Exercise Price per Latest Termination Stock Share Date 666,666 0.75 December 23, 2019 2,191,781 0.91 July 2, 2020 549,450 0.91 July 2, 2020 9,441,313 0.70 August 4, 2021 25,000 0.70 August 4, 2021 9,414,503 0.80 December 6, 2021 22,288,713
Option activity	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term in Years Aggregate Intrinsic Value Outstanding - July 1, 2016 5,261,740 1.21 6.2 Granted 4,119,000 0.46 Forfeited (410,388 ) 1.12 Expired (43,220 ) 22.59 Outstanding - June 30, 2017 8,927,132 0.76 7.5 Granted 4,182,550 0.90 Forfeited (39,500 ) 1.70 Exercised (208,900 ) 0.77 Expired (85,820 ) 6.95 Outstanding - June 30, 2018 12,775,462 0.76 7.7 Granted 2,340,200 1.34 Forfeited (280,362 ) 0.62 Exercised (270,500 ) 0.64 Expired (129,150 ) 1.77 Outstanding - June 30, 2019 14,435,650 $ 0.85 7.3 $ 5,021,759 Exercisable at June 30, 2019 8,226,113 $ 0.77 6.1 $ 3,311,791 Expected to vest at June 30, 2019 6,209,537 $ 0.95 8.9 $ 1,709,968
Weighted average assumptions	2019 2018 2017 Risk-free interest rate 1.9 % 1.8 % 1.7 % Volatility factor 69.3 % 52.6 % 75.0 % Dividend yield 0 % 0 % 0 % Expected option life (years) 6.1 6.0 6.2 Weighted average grant date fair value $ 0.85 $ 0.58 $ 0.27
Restricted Stock Units	2019 2018 2017 Outstanding at beginning of year 9,323,876 5,209,617 2,665,768 Granted 1,517,450 4,914,550 3,192,000 Forfeited (182,351 ) (5,250 ) (68,751 ) Vested (331,142 ) (795,041 ) (579,400 ) Outstanding at end of year 10,327,833 9,323,876 5,209,617

14. INCOME TAXES (Tables)

14. INCOME TAXES (Tables)	12 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Deferred tax assets	June 30, June 30, 2019 2018 Net operating loss carryforwards $ 18,724,000 $ 29,504,000 Research and development and AMT tax credits 6,207,000 5,649,000 Foreign tax credits 583,000 583,000 Basis differences in fixed assets and other 1,072,000 1,734,000 26,586,000 37,470,000 Valuation allowance (26,586,000 ) (37,470,000 ) Net deferred tax assets $ - $ -

15. CONSOLIDATED QUARTERLY FI_2

15. CONSOLIDATED QUARTERLY FINANCIAL DATA UNAUDITED (Tables)	12 Months Ended
	Jun. 30, 2019
Quarterly Financial Information Disclosure [Abstract]
QUARTERLY FINANCIAL DATA	Three Months Ended June 30, March 31, December 31, September 30, 2019 2019 2018 2018 (amounts in thousands, except per share data) Revenues $ 60,265 $ - $ - $ 35 Operating expenses 8,080 5,763 5,050 5,663 Other income(expense), net 39 36 8 (54) Income (loss) before income taxes 52,224 (5,727) (5,042) (5,682) Income taxes - - - - Net income (loss) $ 52,224 $ (5,727) $ (5,042) $ (5,682) Basic net income (loss) per $ 0.25 $ (0.03) $ (0.02) $ (0.03) Diluted net income (loss) per $ 0.23 $ (0.03) $ (0.02) $ (0.03) Weighted average number of common shares outstanding used in computing basic net income (loss) per common share 212,253,194 207,016,304 206,487,984 205,009,278 Weighted average number of common shares outstanding used in computing diluted net income (loss) per common share 228,526,106 207,016,304 206,487,984 205,009,278 Three Months Ended June 30, March 31, December 31, September 30, 2018 2018 2017 2017 (amounts in thousands, except per share data) Revenues $ 20,618 $ 8,963 $ 10,612 $ 26,942 Operating expenses 8,349 9,480 7,671 15,708 Other expense, net (185) (241) (310) (405) Income (loss) before income taxes 12,083 (758) 2,631 10,829 Income taxes (276) 19 399 (225) Net income (loss) $ 11,807 $ (739) $ 3,030 $ 10,604 Basic net income (loss) per $ 0.06 $ - $ 0.02 $ 0.05 Diluted net income (loss) per $ 0.06 $ - $ 0.01 $ 0.05 Weighted average number of common shares outstanding used in computing basic net income (loss) per common share 200,581,435 197,485,758 197,238,056 197,112,400 Weighted average number of common shares outstanding used in computing diluted net income (loss) per common share 211,047,927 197,485,758 202,711,616 201,360,736

2. SUMMARY OF SIGNIFICANT ACC_4

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Deferred revenue		$ 500,000
Accumulated deficit	$ (295,772,879)	(332,045,906)
Adjustments
Deferred revenue		(500,000)
Accumulated deficit	(500,000)	500,000
As reported without adoption of ASC Topic 606
Deferred revenue		0
Accumulated deficit	$ (296,272,879)	$ (331,545,906)

2. SUMMARY OF SIGNIFICANT ACC_5

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Current assets:
Cash and cash equivalents	$ 43,510,422	$ 38,000,171	$ 40,200,324	$ 8,002,668
Accounts receivable	60,265,970	0
Prepaid expenses and other current assets	637,289	513,688
Total current assets	104,413,681	38,513,859
Property and equipment, net	141,539	164,035
Other assets	179,916	338,916
Total assets	104,735,136	39,016,810
Current liabilities:
Accounts payable	504,787	2,223,693
Accrued expenses	2,848,692	2,103,021
Notes payable, net of discount	332,896	5,948,763
Other current liabilities	499,517	487,488
Total current liabilities	4,185,892	10,762,965
Notes payable, net of discount	0	332,898
Deferred revenue	0	500,000
Other non-current liabilities	0	456,038
Total liabilities	4,185,892	12,051,901
Stockholders' equity:
Preferred stock	40	40
Common stock	2,268,154	2,005,542
Additional paid-in capital	394,053,929	357,005,233
Accumulated deficit	(295,772,879)	(332,045,906)
Total stockholders' equity	100,549,244	26,964,909	$ (5,164,644)	$ (17,585,967)
Total liabilities and stockholders' equity	104,735,136	39,016,810
Adjustments
Current assets:
Cash and cash equivalents	0
Accounts receivable	0
Prepaid expenses and other current assets	0
Total current assets	0
Property and equipment, net	0
Other assets	0
Total assets	0
Current liabilities:
Accounts payable	0
Accrued expenses	0
Notes payable, net of discount	0
Other current liabilities	0
Total current liabilities	0
Notes payable, net of discount	0
Deferred revenue	500,000
Other non-current liabilities	0
Total liabilities	500,000
Stockholders' equity:
Preferred stock	0
Common stock	0
Additional paid-in capital	0
Accumulated deficit	(500,000)	500,000
Total stockholders' equity	(500,000)
Total liabilities and stockholders' equity	0
As reported without adoption of ASC Topic 606
Current assets:
Cash and cash equivalents	43,510,422
Accounts receivable	60,265,970
Prepaid expenses and other current assets	637,289
Total current assets	104,413,681
Property and equipment, net	141,539
Other assets	179,916
Total assets	104,735,136
Current liabilities:
Accounts payable	504,787
Accrued expenses	2,848,692
Notes payable, net of discount	332,896
Other current liabilities	499,517
Total current liabilities	4,185,892
Notes payable, net of discount	0
Deferred revenue	500,000
Other non-current liabilities	0
Total liabilities	4,685,892
Stockholders' equity:
Preferred stock	40
Common stock	2,268,154
Additional paid-in capital	394,053,929
Accumulated deficit	(296,272,879)	$ (331,545,906)
Total stockholders' equity	100,049,244
Total liabilities and stockholders' equity	$ 104,735,136

2. SUMMARY OF SIGNIFICANT ACC_6

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($)	3 Months Ended								12 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Accounting Policies [Abstract]
Net income (loss)	$ 52,224	$ (5,727)	$ (5,042)	$ (5,682)	$ 11,807	$ (739)	$ 3,030	$ 10,604	$ 35,773,027	$ 24,702,714	$ (13,331,533)
Denominator:
Weighted average common shares outstanding - Basic	212,253,194	207,016,304	206,487,984	205,009,278	200,581,435	197,485,758	197,238,056	197,112,400	207,670,607	198,101,060	184,087,719
Effect of dilutive shares:
Common stock equivalents arising from stock options, warrants and conversion of preferred stock									7,142,309	6,752,604	0
Restriced stock units									2,320,458	2,153,894	0
Weighted average common shares outstanding - Diluted	228,526,106	207,016,304	206,487,984	205,009,278	211,047,927	197,485,758	202,711,616	201,360,736	217,133,374	207,007,558	184,087,719
Net income (loss) per common share:
Basic	$ 0.25	$ (0.03)	$ (0.02)	$ (0.03)	$ 0.06	$ 0	$ 0.02	$ 0.05	$ 0.17	$ 0.12	$ (0.07)
Diluted	$ 0.23	$ (0.03)	$ (0.02)	$ (0.03)	$ 0.06	$ 0	$ 0.01	$ 0.05	$ 0.16	$ 0.12	$ (0.07)

7. PREPAID EXPENSES AND OTHER_3

7. PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Prepaid Expense and Other Assets, Current [Abstract]
Clinical study costs	$ 61,798	$ 145,994
Insurance premiums	87,937	42,605
Other	487,554	325,089
Total prepaid expenses and other current assets	$ 637,289	$ 513,688

8. FAIR VALUE MEASUREMENTS (Det

8. FAIR VALUE MEASUREMENTS (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Money Market Account	$ 43,381,556	$ 37,808,099
Level 1
Money Market Account	43,381,556	37,808,099
Level 2
Money Market Account	0	0
Level 3
Money Market Account	$ 0	$ 0

9. PROPERTY AND EQUIPMENT, NE_2

9. PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Property, Plant and Equipment [Abstract]
Office equipment	$ 1,193,162	$ 1,193,162
Laboratory equipment	585,795	558,205
Leasehold improvements	751,226	751,226
Gross	2,530,183	2,502,593
Less: Accumulated depreciation and amortization	(2,388,644)	(2,338,558)
Net	$ 141,539	$ 164,035

9. PROPERTY AND EQUIPMENT, NE_3

9. PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
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	$ 122,115	$ 122,115

10. ACCRUED EXPENSES (Details)

10. ACCRUED EXPENSES (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Payables and Accruals [Abstract]
Clinical study costs	$ 943,721	$ 983,410
Other research related expenses	1,361,414	590,236
Professional services	317,500	297,731
Other	226,057	231,644
Accrued expenses	$ 2,848,692	$ 2,103,021

11. NOTES PAYABLE (Details)

11. NOTES PAYABLE (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Notes Payable [Abstract]
Notes payable under venture loan	$ 333,333	$ 6,333,334
Unamortized related debt discount	(295)	(33,535)
Unamortized debt issuance costs	(142)	(18,138)
Notes payable	332,896	6,281,661
Less: current portion	332,896	5,948,763
Long-term portion	$ 0	$ 332,898

11. NOTES PAYABLE (Details 1)

11. NOTES PAYABLE (Details 1) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Notes Payable [Abstract]
2020	$ 333,333
Total	333,333	$ 6,333,334
Less: Unamortized debt discount and issuance costs	(437)
Net	$ 332,896	$ 6,281,661

13. STOCKHOLDERS' EQUITY (DEF_2

13. STOCKHOLDERS' EQUITY (DEFICIENCY) (Details)	12 Months Ended
	Jun. 30, 2019$ / sharesshares
Shares of Common Stock	22,288,713
Range 1
Shares of Common Stock	666,666
Exercise Price per Share | $ / shares	$ 0.75
Latest Termination Date	23-Dec-19
Range 2
Shares of Common Stock	2,191,781
Exercise Price per Share | $ / shares	$ 0.91
Latest Termination Date	2-Jul-20
Range 3
Shares of Common Stock	549,450
Exercise Price per Share | $ / shares	$ 0.91
Latest Termination Date	2-Jul-20
Range 4
Shares of Common Stock	9,441,313
Exercise Price per Share | $ / shares	$ 0.70
Latest Termination Date	4-Aug-21
Range 5
Shares of Common Stock	25,000
Exercise Price per Share | $ / shares	$ 0.70
Latest Termination Date	4-Aug-21
Range 6
Shares of Common Stock	9,414,503
Exercise Price per Share | $ / shares	$ 0.80
Latest Termination Date	6-Dec-21

13. STOCKHOLDERS' EQUITY (DEF_3

13. STOCKHOLDERS' EQUITY (DEFICIENCY) (Details 1) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Stockholders' deficiency:
Number of Options Outstanding, Beginning	12,775,462	8,927,132	5,261,740
Number of Options Granted	2,340,200	4,182,550	4,119,000
Number of Options Forfeited	(280,362)	(39,500)	(410,388)
Number of Options Exercised	(270,500)	(208,900)
Number of Options Expired	(129,150)	(85,820)	(43,220)
Number of Options Outstanding, Ending	14,435,650	12,775,462	8,927,132
Number of Options Exercisable	8,226,113	6,163,850	4,297,394
Number of Options Expected to vest	6,209,537	6,611,612	3,446,101
Weighted Average Exercise Price Outstanding, Beginning	$ 0.76	$ 0.76	$ 1.21
Weighted Average Exercise Price Granted	1.34	0.90	0.46
Weighted Average Exercise Price Forfeited	0.62	1.70	1.12
Weighted Average Exercise Price Exercised	0.64	0.77
Weighted Average Exercise Price Expired	1.77	6.95	22.59
Weighted Average Exercise Price Outstanding, Ending	0.85	0.76	0.76
Weighted Average Exercise Price Exercisable	0.77	0.79	1.02
Weighted Average Exercise Price Options Expected to vest	$ 0.95	$ 0.54	$ 0.54
Weighted Average Remaining Term in Years Options outstanding at beginning of year	7 years 8 months 12 days	7 years 6 months	6 years 2 months 12 days
Weighted Average Remaining Term in Years Options outstanding at end of year	7 years 3 months 18 days	7 years 8 months 12 days	7 years 6 months
Weighted Average Remaining Term in Years Options exercisable at end of year	6 years 1 month 6 days	6 years	5 years 3 months 18 days
Weighted Average Remaining Term in Years Options Expected to vest	8 years 10 months 24 days	9 years 2 months 12 days	6 months 14 days
Aggregate Intrinsic Value Options outstanding	$ 5,021,759
Aggregate Intrinsic Value Options exercisable	3,311,791
Aggregate Intrinsic Value Options Expected to vest	$ 1,709,968

13. STOCKHOLDERS' EQUITY (DEF_4

13. STOCKHOLDERS' EQUITY (DEFICIENCY) (Details 2) - $ / shares	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Stockholders' deficiency:
Risk-free interest rate	1.90%	1.80%	1.70%
Volatility factor	69.30%	52.60%	75.00%
Dividend yield	0.00%	0.00%	0.00%
Expected option life (years)	6 years 1 month 6 days	6 years	6 years 2 months 12 days
Weighted average grant date fair value	$ 0.85	$ 0.58	$ 0.27

13. STOCKHOLDERS' EQUITY (DEF_5

13. STOCKHOLDERS' EQUITY (DEFICIENCY) (Details 3) - shares	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Stockholders' deficiency:
Outstanding at beginning of year	9,323,876	5,209,617	2,665,768
Granted	1,517,450	4,914,550	3,192,000
Forfeited	(182,351)	(5,250)	(68,751)
Vested	(331,142)	(795,041)	(579,400)
Outstanding at end of year	10,327,833	9,323,876	5,209,617

14. INCOME TAXES (Details)

14. INCOME TAXES (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Net operating loss carryforwards	$ 18,724,000	$ 29,504,000
Research and development tax credits	6,207,000	5,649,000
Foreign tax credits	583,000	583,000
Basis differences in fixed assets and other	1,072,000	1,734,000
Gross	26,586,000	37,470,000
Valuation allowance	(26,586,000)	(37,470,000)
Net deferred tax assets	$ 0	$ 0

14. INCOME TAXES (Details Narra

14. INCOME TAXES (Details Narrative) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Federal research and development credits	$ 6,207,000	$ 5,649,000
Federal
Net operating loss carryforwards	62,100,000
Federal research and development credits	6,200,000
State
Net operating loss carryforwards	$ 80,000,000

15. CONSOLIDATED QUARTERLY FI_3

15. CONSOLIDATED QUARTERLY FINANCIAL DATA UNAUDITED (Details) - USD ($)	3 Months Ended								12 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Quarterly Financial Information Disclosure [Abstract]
Revenues	$ 60,265	$ 0	$ 0	$ 35	$ 20,618	$ 8,963	$ 10,612	$ 26,942	$ 60,300,476	$ 67,134,758	$ 44,723,827
Operating expenses	8,080	5,763	5,050	5,663	8,349	9,480	7,671	15,708	24,556,156	41,208,193	55,293,321
Other income(expense), net	39	36	8	(54)	(185)	(241)	(310)	(405)	28,707	(1,141,351)	(2,262,039)
Income (loss) before income taxes	52,224	(5,727)	(5,042)	(5,682)	12,083	(758)	2,631	10,829	35,773,027	24,785,214	(12,831,533)
Income taxes	0	0	0	0	(276)	(19)	(399)	(225)	0	(82,500)	(500,000)
Net income (loss)	$ 52,224	$ (5,727)	$ (5,042)	$ (5,682)	$ 11,807	$ (739)	$ 3,030	$ 10,604	$ 35,773,027	$ 24,702,714	$ (13,331,533)
Basic net income (loss) per common share	$ 0.25	$ (0.03)	$ (0.02)	$ (0.03)	$ 0.06	$ 0	$ 0.02	$ 0.05	$ 0.17	$ 0.12	$ (0.07)
Diluted net income (loss) per common share	$ 0.23	$ (0.03)	$ (0.02)	$ (0.03)	$ 0.06	$ 0	$ 0.01	$ 0.05	$ 0.16	$ 0.12	$ (0.07)
Weighted average number of common shares outstanding used in computing basic net loss per common share	212,253,194	207,016,304	206,487,984	205,009,278	200,581,435	197,485,758	197,238,056	197,112,400	207,670,607	198,101,060	184,087,719
Weighted average number of common shares outstanding used in computing diluted net loss per common share	228,526,106	207,016,304	206,487,984	205,009,278	211,047,927	197,485,758	202,711,616	201,360,736	217,133,374	207,007,558	184,087,719