Palatin (PTN) 10-Q 15 Nov 21 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Sep. 30, 2021	Nov. 11, 2021
Cover [Abstract]
Entity Registrant Name	PALATIN TECHNOLOGIES, INC.
Entity Central Index Key	0000911216
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2021
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
Entity Common Stock Shares Outstanding		231,345,273
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-15543
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	95-4078884
Entity Address Address Line 1	4B Cedar Brook Drive
Entity Address City Or Town	Cranbury
Entity Address State Or Province	NJ
Entity Address Postal Zip Code	08512
City Area Code	609
Local Phone Number	495‑2200
Security 12b Title	Common Stock, par value $.01 per share
Trading Symbol	PTN
Security Exchange Name	NYSE
Entity Interactive Data Current	Yes

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2021	Jun. 30, 2021
Current assets:
Cash and cash equivalents	$ 53,421,179	$ 60,104,919
Accounts receivable	914,015	1,580,443
Inventories	1,108,067	1,162,000
Prepaid expenses and other current assets	2,946,797	3,059,679
Total current assets	58,390,058	65,907,041
Property and equipment, net	140,022	94,817
Right-of-use assets	1,146,332	1,237,813
Other assets	56,916	56,916
Total assets	59,733,328	67,296,587
Current liabilities:
Accounts payable	762,817	640,650
Accrued expenses	4,991,164	5,797,378
Short-term operating lease liabilities	353,925	351,853
Other current liabilities	3,679,852	3,721,907
Total current liabilities	9,787,758	10,511,788
Long-term operating lease liabilities	808,840	900,520
Other long-term liabilities	6,167,603	6,232,907
Total liabilities	16,764,201	17,645,215
Stockholders' equity:
Preferred stock of $0.01 par value - authorized 10,000,000 shares; shares issued and outstanding designated as follows: Series A Convertible: authorized 264,000 shares: issued and outstanding 4,030 shares as of September 30, 2021 and June 30, 2021	40	40
Common stock of $0.01 par value - authorized 300,000,000 shares: issued and outstanding 231,301,673 shares as of September 30, 2021 and 230,049,691 shares as of June 30, 2021	2,313,017	2,300,497
Additional paid-in capital	399,564,086	399,146,232
Accumulated deficit	(358,908,016)	(351,795,397)
Total stockholders' equity	42,969,127	49,651,372
Total liabilities and stockholders' equity	$ 59,733,328	$ 67,296,587

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2021	Jun. 30, 2021
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	231,301,673	230,049,691
Common stock, shares outstanding	231,301,673	230,049,691
Series A Convertible Preferred Stock
Preferred stock, shares authorized	264,000	264,000
Preferred stock, shares issued	4,030	4,030
Preferred stock, shares outstanding	4,030	4,030

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
REVENUES
Product revenue, net	$ 159,482	$ (288,560)
Total Revenues	159,482	(288,560)
OPERATING EXPENSES
Research and development	3,484,764	2,923,851
Selling, general and administrative	3,836,542	2,331,606
Gain on license termination agreement	0	(1,623,795)
Total operating expenses	7,375,239	3,656,862
Loss from operations	(7,215,757)	(3,945,422)
OTHER INCOME (EXPENSE)
Investment income	1,410	12,135
Foreign currency gain	107,359	0
Interest expense	(5,631)	(7,489)
Total other income, net	103,138	4,646
NET LOSS	$ (7,112,619)	$ (3,940,776)
Basic and diluted net loss per common share	$ (0.03)	$ (0.02)
Weighted average number of common shares outstanding used in computing basic and diluted net loss per common share	238,233,063	236,345,862

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($)	Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)
Balance, shares at Jun. 30, 2020		4,030	229,258,400
Balance, amount at Jun. 30, 2020	$ 80,172,849	$ 40	$ 2,292,584	$ 396,079,127	$ (318,198,902)
Stock-based compensation, shares			743,112
Stock-based compensation, amount	821,174	0	$ 7,431	813,743	0
Withholding taxes related to restricted stock units, shares			(146,095)
Withholding taxes related to restricted stock units, amount	(77,766)	0	$ (1,461)	(76,305)	0
Net loss	(3,940,776)	$ 0	$ 0	0	(3,940,776)
Balance, shares at Sep. 30, 2020		4,030	229,855,417
Balance, amount at Sep. 30, 2020	76,975,481	$ 40	$ 2,298,554	396,816,565	(322,139,678)
Balance, shares at Jun. 30, 2021		4,030	230,049,691
Balance, amount at Jun. 30, 2021	49,651,372	$ 40	$ 2,300,497	399,146,232	(351,795,397)
Stock-based compensation, shares			1,624,158
Stock-based compensation, amount	632,727	0	$ 16,242	616,485	0
Withholding taxes related to restricted stock units, shares			(372,176)
Withholding taxes related to restricted stock units, amount	(202,353)	0	$ (3,722)	(198,631)	0
Net loss	(7,112,619)	$ 0	$ 0	0	(7,112,619)
Balance, shares at Sep. 30, 2021		4,030	231,301,673
Balance, amount at Sep. 30, 2021	$ 42,969,127	$ 40	$ 2,313,017	$ 399,564,086	$ (358,908,016)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (7,112,619)	$ (3,940,776)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	12,559	13,444
Cash received in excess of gain on termination agreement	0	10,376,205
Decrease in right-of-use asset	91,481	75,722
Unrealized foreign currency transaction gain	(107,359)	0
Stock-based compensation	632,727	821,174
Changes in operating assets and liabilities:
Accounts receivable	666,428	(744,372)
Prepaid expenses and other assets	112,882	(1,621,785)
Inventories	53,933	25,200
Accounts payable	122,167	255,636
Accrued expenses	(806,214)	(1,375,415)
Operating lease liabilities	(89,608)	(72,082)
Net cash (used in) provided by operating activities	(6,423,623)	3,812,951
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(57,764)	0
Net cash used in investing activities	(57,764)	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of withholding taxes related to restricted stock units	(202,353)	(77,766)
Net cash used in financing activities	(202,353)	(77,766)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(6,683,740)	3,735,185
CASH AND CASH EQUIVALENTS, beginning of period	60,104,919	82,852,270
CASH AND CASH EQUIVALENTS, end of period	53,421,179	86,587,455
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$ 5,631	$ 7,489

ORGANIZATION

ORGANIZATION	3 Months Ended
	Sep. 30, 2021
ORGANIZATION
1. ORGANIZATION	(1) ORGANIZATION Nature of Business Melanocortin Receptor System. The Company’s lead product, Vyleesi®, was approved by the U.S. Food and Drug Administration (“FDA”) in June 2019 and was being marketed in North America by AMAG Pharmaceuticals, Inc. (“AMAG”) for the treatment of hypoactive sexual desire disorder (“HSDD”) in premenopausal women pursuant to a license agreement between them for Vyleesi for North America, which was entered into on January 8, 2017 (the “AMAG License Agreement”). As disclosed in Note 5, the AMAG License Agreement was terminated effective July 24, 2020, and the Company is now marketing Vyleesi in North America. 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 Risks and Liquidity – As of September 30, 2021, the Company’s cash and cash equivalents were $53,421,179 and current liabilities were $9,787,758. Management intends to utilize existing capital resources for general corporate purposes and working capital, including establishing marketing and distribution capabilities for Vyleesi in the United States and preclinical and clinical development of the Company’s MC1r and MC4r peptide programs and natriuretic peptide program, and development of other portfolio products. 5 Table of Contents PALATIN TECHNOLOGIES, INC. and Subsidiary Notes to Consolidated Financial Statements (unaudited) Management believes that the Company’s cash and cash equivalents as of September 30, 2021 will be sufficient to fund its current operating plans through at least December 2022. 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. In March 2020, the World Health Organization declared COVID-19, a disease caused by a novel strain of coronavirus, a pandemic. The Company has taken steps to ensure the safety and well-being of its employees and clinical trial patients to comply with guidance from federal, state, and local authorities, while working to ensure the sustainability of its business operations as this unprecedented situation continues to evolve. In mid-March 2020, the Company transitioned to a company-wide work from home policy. Business-critical activities continue to be subject to heightened precautions to ensure safety of employees. The Company continues to assess its policies, business continuity plans, and employee support. The Company continues to evaluate the impact of COVID-19 on the healthcare system and work with contract research organizations supporting its clinical, research, and development programs to mitigate risk to patients and its business and community partners, taking into account regulatory, institutional, and government guidance and policies. The Company will receive a royalty on sales of Vyleesi by our licensees. We have licensed third parties to sell Vyleesi in China and Korea. The COVID-19 coronavirus could adversely impact the time required to obtain regulatory approvals to sell Vyleesi in China and Korea, which would delay when the Company receives royalty income from sales in those countries. The Company cannot be certain what the overall impact of the ongoing COVID-19 pandemic will be on its business, including manufacturing, distribution, sales and marketing of Vyleesi, and whether it has the potential to materially adversely affect its business, financial condition and results of operations and cashflows during the fiscal year ending June 30, 2022 (“fiscal 2022”) and beyond. Concentrations –

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Sep. 30, 2021
ORGANIZATION
2. BASIS OF PRESENTATION	(2) BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnote disclosures required to be presented for complete financial statements. In the opinion of management, these consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) considered necessary for fair presentation. The results of operations for the three months ended September 30, 2021 may not necessarily be indicative of the results of operations expected for the full year. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2021, filed with the Securities and Exchange Commission (“SEC”), which includes consolidated financial statements as of June 30, 2021 and 2020 and for the fiscal years then ended.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	(3) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation Use of Estimates Cash and Cash Equivalents Fair Value of Financial Instruments Credit Risk Trade Accounts Receivable Inventories On a quarterly basis, the Company reviews inventory levels to determine whether any obsolete, expired, or excess inventory exists. If any inventory is expected to expire prior to being sold, has a cost basis in excess of its net realizable value, is in excess of expected sales requirements as determined by internal sales forecasts, or fails to meet commercial sale specifications, the inventory is written down through a charge to operating expenses. Inventory consisting of Vyleesi has a shelf-life of three years from the date of manufacture. Property and Equipment Impairment of Long-Lived Assets 7 Table of Contents PALATIN TECHNOLOGIES, INC. and Subsidiary Notes to Consolidated Financial Statements (unaudited) Leases Revenue Recognition Revenue from Contracts with Customers In accordance with ASC Topic 606, the Company recognizes revenue when its performance obligation is satisfied by transferring control of the product to a customer. Per the Company’s contracts with customers, control of the product is transferred upon the conveyance of title, which occurs when the product is sold to and received by a customer. Trade accounts receivable due to the Company from contracts with its customers are stated separately in the consolidated balance sheet, net of various allowances as described in the Trade Accounts Receivable policy above. Product revenues consist of sales of Vyleesi in the United States. The Company sells Vyleesi to specialty pharmacies at the wholesale acquisition cost and payment is currently made within approximately 30 days. In addition to distribution agreements with customers, the Company enters into arrangements with healthcare payers that provide for privately negotiated rebates, chargebacks, and discounts with respect to the purchase of the Company’s products. The Company records product revenues net of allowances for direct and indirect fees, discounts, co-pay assistance programs, estimated chargebacks and rebates. Product sales are also subject to return rights, which have not been significant to date. 8 Table of Contents PALATIN TECHNOLOGIES, INC. and Subsidiary Notes to Consolidated Financial Statements (unaudited) Gross product sales offset by product sales allowances for the three months ended September 30, 2021 and 2020 are as follows: Three Months Ended September 30, 2021 2020 Gross product sales $ 1,429,410 $ 809,100 Provision for product sales allowances and accruals (1,269,928 ) (1,097,660 ) Net sales $ 159,482 $ (288,560 ) 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 is 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. Research and Development Costs Accrued Expenses – Stock-Based Compensation – 9 Table of Contents PALATIN TECHNOLOGIES, INC. and Subsidiary Notes to Consolidated Financial Statements (unaudited) Income Taxes Net Loss per Common Share - Earnings per Share For the three months ended September 30, 2021 and 2020, no additional common shares were added to the computation of diluted EPS because to do so would have been anti-dilutive. The potential number of common shares excluded from diluted EPS during the three months ended September 30, 2021 and 2020 was 32,931,560 and 38,526,609 respectively. Included in the weighted average common shares used in computing basic and diluted net loss per common share are 6,734,125 and 6,444,353 vested restricted stock units that had not been issued as of September 30, 2021 and 2020, respectively, due to a provision in the restricted stock unit agreements to delay delivery. Translation of foreign currencies

NEW AND RECENTLY ADOPTED ACCOUN

NEW AND RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Sep. 30, 2021
NEW AND RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS
4. NEW AND RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS	(4) NEW AND RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In May 2021, the FASB issued Accounting Standards Update (“ASU”) 2021-04, Earnings Per Share (Topic 260), Debt – Modifications and Extinguishments (Subtopic 470-50), Compensation – Stock Compensation (Topic 718), and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options In August 2020, the FASB issued ASU No. 2020-06, Debt (Topic 470) and Derivatives and Hedging (Topic 815): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. 10 Table of Contents PALATIN TECHNOLOGIES, INC. and Subsidiary Notes to Consolidated Financial Statements (unaudited) In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments,

AGREEMENT WITH AMAG

AGREEMENT WITH AMAG	3 Months Ended
	Sep. 30, 2021
AGREEMENT WITH AMAG
5. AGREEMENT WITH AMAG	(5) AGREEMENTS WITH AMAG On January 8, 2017, the Company entered into the AMAG License Agreement pursuant to which the Company granted 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 AMAG License Agreement became effective on February 2, 2017. Under the AMAG License Agreement, in addition to certain initial and milestone payments, AMAG reimbursed the Company for certain reasonable, documented, direct out-of-pocket expenses incurred by the Company following February 2, 2017, in connection with development and regulatory activities necessary to file a New Drug Application (“NDA”) for Vyleesi for HSDD in the United States. On June 4, 2018, the FDA accepted the Vyleesi NDA for filing and on June 21, 2019, the FDA granted approval of Vyleesi for use in the United States. Effective July 24, 2020, the Company entered into a termination agreement (the “Termination Agreement”) with AMAG terminating the AMAG License Agreement. Under the terms of the Termination Agreement, the Company regained all development and commercialization rights for Vyleesi in the Territory. AMAG made a $12,000,000 payment to the Company at closing of the Termination Agreement and a $4,300,000 payment to the Company on March 31, 2021. The Company initially recorded a liability related to estimated losses on inventory purchase commitments of $18,194,000 as well as accrued expenses for an inventory production run obligation assumed of $2,300,000. The Company assumed all Vyleesi manufacturing agreements, and AMAG transferred information, data, and assets related exclusively to Vyleesi to the Company, including existing inventory and prepaid expenses with an estimated fair value of $5,817,795 as of the date of the Termination Agreement. As a result, the Company initially recorded a net gain for the Termination Agreement of $1,623,795 during the three months ended September 30, 2020. During the three months ended June 30, 2021, the Company reassessed the estimated net realizable value of the inventory, prepaid expenses and losses on the inventory purchase commitments resulting in recording of a loss on the Termination Agreement of $4,407,987 for the three months ended June 30, 2021 and a total loss on the Termination Agreement for the year ended June 30, 2021 of $2,784,192. Under the Termination Agreement, AMAG provided certain transitional services to the Company for a period to ensure continued patient access to Vyleesi during the transition back to the Company. The Company reimbursed AMAG for the agreed upon costs of the transition services.

MANUFACTURING SUPPLY AGREEMENTS

MANUFACTURING SUPPLY AGREEMENTS FOR VYLEESI	3 Months Ended
	Sep. 30, 2021
MANUFACTURING SUPPLY AGREEMENTS FOR VYLEESI
6. MANUFACTURING SUPPLY AGREEMENTS FOR VYLEESI	(6) MANUFACTURING SUPPLY AGREEMENTS FOR VYLEESI Pursuant to the Termination Agreement, the Company assumed Vyleesi manufacturing contracts with Catalent Belgium S.A. (“Catalent”), a subsidiary of Catalent Pharma Solutions, Inc., to manufacture drug product and prefilled syringes and assemble prefilled syringes into an auto-injector device (the “Catalent Agreement”), Ypsomed AG (“Ypsomed”), to manufacture the auto-injector device (the “Ypsomed Agreement”), and Lonza Ltd. (“Lonza”), to manufacture the active pharmaceutical ingredient peptide (the “Lonza Agreement”). On September 29, 2020, the Company and Catalent entered into an agreement to terminate the Catalent Agreement (the “Catalent Termination Agreement”) in consideration for a one-time payment of six million euros (€6,000,000) which was paid in October 2020 and accrued as part of the estimated losses on inventory purchase commitments assumed as part of the Termination Agreement as discussed in Note 5. The Company and Catalent then entered into a new Vyleesi manufacturing agreement (the “New Catalent Agreement”) which includes reduced minimum annual purchase requirements (see Note 12) as compared to the original Catalent Agreement and modification of other financial terms. The New Catalent Agreement provides that Catalent will provide manufacturing and supply services to Palatin related to production of Vyleesi, including that Catalent will supply specified minimums of Palatin’s requirements for Vyleesi during the term of the New Catalent Agreement through August 21, 2025, unless earlier terminated in accordance with the terms of the New Catalent Agreement. The initial term of the New Catalent Agreement will be automatically extended for one 24-month period unless either party notifies the other of its desire to terminate as of the end of the initial term. The New Catalent Agreement also includes customary terms and conditions relating to forecasting and minimum commitments, ordering, delivery, inspection and acceptance, and termination, among other matters. The term of the Lonza Agreement is through December 31, 2022. There are specified minimum purchase requirements under the Lonza Agreement, and under specified circumstances, termination fees may be payable upon termination of the Lonza Agreement by the Company (see Note 12). The initial term of the Ypsomed Agreement is through December 31, 2025, with automatic renewal for successive one-year periods unless either party terminates the Ypsomed Agreement by ten months’ written notice prior to the expiration of the Ypsomed Agreement or any automatic renewal period. There are specified minimum purchase requirements under the Ypsomed Agreement, and under specified circumstances, termination fees may be payable upon termination of the Ypsomed Agreement by the Company (see Note 12).

AGREEMENT WITH FOSUN

AGREEMENT WITH FOSUN	3 Months Ended
	Sep. 30, 2021
AGREEMENT WITH FOSUN
7. AGREEMENT WITH FOSUN	(7) AGREEMENT WITH FOSUN On September 6, 2017, the Company entered into a license agreement with Shanghai Fosun Pharmaceutical Development Co. Ltd. (“Fosun”) for exclusive rights to commercialize Vyleesi in China (the “Fosun License Agreement”). 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. 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.

AGREEMENT WITH KWANGDONG

AGREEMENT WITH KWANGDONG	3 Months Ended
	Sep. 30, 2021
AGREEMENT WITH KWANGDONG
8. AGREEMENT WITH KWANGDONG	(8) AGREEMENT WITH KWANGDONG On November 21, 2017, the Company entered into a license agreement with Kwangdong Pharmaceutical Co. Ltd (“Kwangdong”) for exclusive rights to commercialize Vyleesi (the “Kwangdong License Agreement”) 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. 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.

PREPAID EXPENSES AND OTHER CURR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	3 Months Ended
	Sep. 30, 2021
PREPAID EXPENSES AND OTHER CURRENT ASSETS
9. PREPAID EXPENSES AND OTHER CURRENT ASSETS	(9) PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses September 30, June 30, 2021 2021 Clinical / regulatory costs $ 295,073 $ 454,750 Insurance premiums 332,713 259,468 Vyleesi contractual advances 1,200,000 1,200,000 Other 1,119,011 1,145,461 $ 2,946,797 $ 3,059,679

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Sep. 30, 2021
FAIR VALUE MEASUREMENTS
10. FAIR VALUE MEASUREMENTS	(10) 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 Other quoted/observable inputs (Level 2) Significant unobservable inputs September 30, 2021: Money Market Account $ 52,554,495 $ 52,554,495 $ - $ - June 30, 2021: Money Market Account $ 59,730,428 $ 59,730,428 $ - $ -

ACCRUED EXPENSES

ACCRUED EXPENSES	3 Months Ended
	Sep. 30, 2021
ACCRUED EXPENSES
11. ACCRUED EXPENSES	(11) ACCRUED EXPENSES Accrued expenses September 30, June 30, 2021 2021 Clinical / regulatory costs $ 57,960 $ 778,705 Other research related expenses 627,268 569,370 Professional services 25,000 84,094 Inventory purchases 1,917,633 2,340,000 Selling expenses 2,153,557 1,839,724 Other 209,746 185,485 $ 4,991,164 $ 5,797,378

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 30, 2021
COMMITMENTS AND CONTINGENCIES
12. COMMITMENTS AND CONTINGENCIES	(12) COMMITMENTS AND CONTINGENCIES Inventory Purchases Total Current 1 - 3 Years 4 - 5 Years Inventory purchase commitments $ 10,809,004 $ 3,679,852 $ 5,138,952 $ 1,990,200 As of September 30, 2021, the Company has $3,679,852 and $6,167,603 accrued within other current and long-term liabilities, respectively, in the consolidated balance sheet related to estimated losses for firm commitment contractual obligations under these agreements. As of June 30, 2021, $3,721,907 and $6,232,907 was accrued within other current and long-term liabilities, respectively. Losses on these firm commitment contractual obligations are recognized based upon the terms of the respective agreement and similar factors considered for the write-down of inventory, including expected sales requirements as determined by internal sales forecasts. The commitment contractual obligation amounts above are denominated in Swiss Francs and Euros and have been translated using period end exchange rates. The Company may experience a negative impact on future earnings and equity solely as a result of future foreign currency exchange rate fluctuations. 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.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Sep. 30, 2021
Stockholders' equity:
13. STOCKHOLDERS' EQUITY	(13) STOCKHOLDERS’ EQUITY Financing Transactions – No proceeds were raised under the 2019 Equity Distribution Agreement during the three months ended September 30, 2021 and 2020. Stock Options – 14 Table of Contents PALATIN TECHNOLOGIES, INC. and Subsidiary Notes to Consolidated Financial Statements (unaudited) A summary of stock option activity is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term in Years Aggregate Intrinsic alue Outstanding - June 30, 2021 21,882,500 $ 0.72 7.2 $ 1,034,273 Granted 60,150 0.46 Forfeited (118,152 ) 0.70 Exercised - - Expired - - Outstanding - September 30, 2021 21,824,498 $ 0.72 6.9 $ 186,886 Exercisable at September 30, 2021 13,465,772 $ 0.75 5.8 $ 186,886 Expected to vest at September 30, 2021 8,358,726 $ 0.68 8.8 $ - 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 outstanding options in the table above are 1,605,573 and 332,785 unvested performance-based stock options granted to executive officers and other employees, respectively, which were granted in June 2020 and 2021. The performance-based stock options vest on annual performance criteria through the fiscal years ending June 30, 2025 relating to advancement of MC1r programs, including initiation of clinical trials and licensing of Vyleesi in additional countries or regions. Restricted Stock Units – A summary of restricted stock unit activity is as follows: Outstanding at July 1, 2021 14,840,762 Granted - Forfeited (81,117 ) Vested (1,624,158 ) Outstanding at September 30, 2021 13,135,487 Included in outstanding restricted stock units in the table above are 6,734,125 vested shares that have not been issued as of September 30, 2021 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 48 months, 48 months, and 12 months, respectively. Included in the outstanding restricted stock units in the table above are 1,630,020 and 275,208 unvested performance-based restricted stock units granted to executive officers and other employees, respectively, which were granted in June 2019, 2020, and 2021. The performance-based restricted stock units vest on annual performance criteria through the fiscal years ending June 30, 2025 relating to advancement of MC1r programs, including initiation of clinical trials and licensing of Vyleesi in additional countries or regions. In June 2021, the Company granted 450,000 performance-based restricted stock units included in the table above to its executive officers which vest if, prior to June 22, 2023, the price per share of the Company’s common stock, as traded on the NYSE American, was at least $2.00 for at least twenty consecutive trading days. In connection with the vesting of restricted share units during the three months ended September 30, 2021 and 2020, the Company withheld 372,176 and 146,095 shares, respectively, with aggregate values of $202,353 and $77,766, respectively, in satisfaction of minimum tax withholding obligations.

ORGANIZATION (Policies)

ORGANIZATION (Policies)	3 Months Ended
	Sep. 30, 2021
ORGANIZATION
Nature of Business	Nature of Business Melanocortin Receptor System. The Company’s lead product, Vyleesi®, was approved by the U.S. Food and Drug Administration (“FDA”) in June 2019 and was being marketed in North America by AMAG Pharmaceuticals, Inc. (“AMAG”) for the treatment of hypoactive sexual desire disorder (“HSDD”) in premenopausal women pursuant to a license agreement between them for Vyleesi for North America, which was entered into on January 8, 2017 (the “AMAG License Agreement”). As disclosed in Note 5, the AMAG License Agreement was terminated effective July 24, 2020, and the Company is now marketing Vyleesi in North America. 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 Risks and Liquidity	Business Risks and Liquidity – As of September 30, 2021, the Company’s cash and cash equivalents were $53,421,179 and current liabilities were $9,787,758. Management intends to utilize existing capital resources for general corporate purposes and working capital, including establishing marketing and distribution capabilities for Vyleesi in the United States and preclinical and clinical development of the Company’s MC1r and MC4r peptide programs and natriuretic peptide program, and development of other portfolio products. 5 Table of Contents PALATIN TECHNOLOGIES, INC. and Subsidiary Notes to Consolidated Financial Statements (unaudited) Management believes that the Company’s cash and cash equivalents as of September 30, 2021 will be sufficient to fund its current operating plans through at least December 2022. 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. In March 2020, the World Health Organization declared COVID-19, a disease caused by a novel strain of coronavirus, a pandemic. The Company has taken steps to ensure the safety and well-being of its employees and clinical trial patients to comply with guidance from federal, state, and local authorities, while working to ensure the sustainability of its business operations as this unprecedented situation continues to evolve. In mid-March 2020, the Company transitioned to a company-wide work from home policy. Business-critical activities continue to be subject to heightened precautions to ensure safety of employees. The Company continues to assess its policies, business continuity plans, and employee support. The Company continues to evaluate the impact of COVID-19 on the healthcare system and work with contract research organizations supporting its clinical, research, and development programs to mitigate risk to patients and its business and community partners, taking into account regulatory, institutional, and government guidance and policies. The Company will receive a royalty on sales of Vyleesi by our licensees. We have licensed third parties to sell Vyleesi in China and Korea. The COVID-19 coronavirus could adversely impact the time required to obtain regulatory approvals to sell Vyleesi in China and Korea, which would delay when the Company receives royalty income from sales in those countries. The Company cannot be certain what the overall impact of the ongoing COVID-19 pandemic will be on its business, including manufacturing, distribution, sales and marketing of Vyleesi, and whether it has the potential to materially adversely affect its business, financial condition and results of operations and cashflows during the fiscal year ending June 30, 2022 (“fiscal 2022”) and beyond.
Concentrations	Concentrations –

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Sep. 30, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation	Principles of Consolidation
Use of Estimates	Use of Estimates
Cash and Cash Equivalents	Cash and Cash Equivalents
Fair Value of Financial Instruments	Fair Value of Financial Instruments
Credit Risk	Credit Risk
Trade Accounts Receivable	Trade Accounts Receivable
Inventories	Inventories On a quarterly basis, the Company reviews inventory levels to determine whether any obsolete, expired, or excess inventory exists. If any inventory is expected to expire prior to being sold, has a cost basis in excess of its net realizable value, is in excess of expected sales requirements as determined by internal sales forecasts, or fails to meet commercial sale specifications, the inventory is written down through a charge to operating expenses. Inventory consisting of Vyleesi has a shelf-life of three years from the date of manufacture.
Property and Equipment	Property and Equipment
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets
Leases	Leases
Revenue Recognition	Revenue Recognition Revenue from Contracts with Customers In accordance with ASC Topic 606, the Company recognizes revenue when its performance obligation is satisfied by transferring control of the product to a customer. Per the Company’s contracts with customers, control of the product is transferred upon the conveyance of title, which occurs when the product is sold to and received by a customer. Trade accounts receivable due to the Company from contracts with its customers are stated separately in the consolidated balance sheet, net of various allowances as described in the Trade Accounts Receivable policy above. Product revenues consist of sales of Vyleesi in the United States. The Company sells Vyleesi to specialty pharmacies at the wholesale acquisition cost and payment is currently made within approximately 30 days. In addition to distribution agreements with customers, the Company enters into arrangements with healthcare payers that provide for privately negotiated rebates, chargebacks, and discounts with respect to the purchase of the Company’s products. The Company records product revenues net of allowances for direct and indirect fees, discounts, co-pay assistance programs, estimated chargebacks and rebates. Product sales are also subject to return rights, which have not been significant to date. 8 Table of Contents PALATIN TECHNOLOGIES, INC. and Subsidiary Notes to Consolidated Financial Statements (unaudited) Gross product sales offset by product sales allowances for the three months ended September 30, 2021 and 2020 are as follows: Three Months Ended September 30, 2021 2020 Gross product sales $ 1,429,410 $ 809,100 Provision for product sales allowances and accruals (1,269,928 ) (1,097,660 ) Net sales $ 159,482 $ (288,560 ) 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 is 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.
Research and Development Costs	Research and Development Costs
Accrued Expenses	Accrued Expenses –
Stock-Based Compensation	Stock-Based Compensation –
Income Taxes	Income Taxes
Net Loss per Common Share	Net Loss per Common Share - Earnings per Share For the three months ended September 30, 2021 and 2020, no additional common shares were added to the computation of diluted EPS because to do so would have been anti-dilutive. The potential number of common shares excluded from diluted EPS during the three months ended September 30, 2021 and 2020 was 32,931,560 and 38,526,609 respectively. Included in the weighted average common shares used in computing basic and diluted net loss per common share are 6,734,125 and 6,444,353 vested restricted stock units that had not been issued as of September 30, 2021 and 2020, respectively, due to a provision in the restricted stock unit agreements to delay delivery.
Translation of Foreign Currencies	Translation of foreign currencies

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Sep. 30, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of gross product sales	Three Months Ended September 30, 2021 2020 Gross product sales $ 1,429,410 $ 809,100 Provision for product sales allowances and accruals (1,269,928 ) (1,097,660 ) Net sales $ 159,482 $ (288,560 )

PREPAID EXPENSES AND OTHER CU_2

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	3 Months Ended
	Sep. 30, 2021
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Schedule of prepaid expenses and other current assets	September 30, June 30, 2021 2021 Clinical / regulatory costs $ 295,073 $ 454,750 Insurance premiums 332,713 259,468 Vyleesi contractual advances 1,200,000 1,200,000 Other 1,119,011 1,145,461 $ 2,946,797 $ 3,059,679

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Sep. 30, 2021
FAIR VALUE MEASUREMENTS
Schedule of assets at fair value	Carrying Value Quoted prices in Other quoted/observable inputs (Level 2) Significant unobservable inputs September 30, 2021: Money Market Account $ 52,554,495 $ 52,554,495 $ - $ - June 30, 2021: Money Market Account $ 59,730,428 $ 59,730,428 $ - $ -

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	3 Months Ended
	Sep. 30, 2021
ACCRUED EXPENSES
Schedule of accrued expenses	September 30, June 30, 2021 2021 Clinical / regulatory costs $ 57,960 $ 778,705 Other research related expenses 627,268 569,370 Professional services 25,000 84,094 Inventory purchases 1,917,633 2,340,000 Selling expenses 2,153,557 1,839,724 Other 209,746 185,485 $ 4,991,164 $ 5,797,378

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Sep. 30, 2021
COMMITMENTS AND CONTINGENCIES
Schedule of inventory purchase commitments	Total Current 1 - 3 Years 4 - 5 Years Inventory purchase commitments $ 10,809,004 $ 3,679,852 $ 5,138,952 $ 1,990,200

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Sep. 30, 2021
Stockholders' equity:
Schedule of option activity	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term in Years Aggregate Intrinsic alue Outstanding - June 30, 2021 21,882,500 $ 0.72 7.2 $ 1,034,273 Granted 60,150 0.46 Forfeited (118,152 ) 0.70 Exercised - - Expired - - Outstanding - September 30, 2021 21,824,498 $ 0.72 6.9 $ 186,886 Exercisable at September 30, 2021 13,465,772 $ 0.75 5.8 $ 186,886 Expected to vest at September 30, 2021 8,358,726 $ 0.68 8.8 $ -
Schedule of restricted stock unit activity	Outstanding at July 1, 2021 14,840,762 Granted - Forfeited (81,117 ) Vested (1,624,158 ) Outstanding at September 30, 2021 13,135,487

ORGANIZATION (Details Narrative

ORGANIZATION (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
ORGANIZATION
Accumulated deficit	$ 358,908,016		$ 351,795,397
Net loss	(7,112,619)	$ (3,940,776)
Cash and cash equivalents	53,421,179	$ 86,587,455	60,104,919	$ 82,852,270
Total current liabilities	$ 9,787,758		$ 10,511,788

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Product Revenue - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Gross product sales	$ 1,429,410	$ 809,100
Provision for product sales allowances and accruals	1,269,928	1,097,660
Net sales	$ 159,482	$ (288,560)

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash and cash equivalents	$ 52,554,495		$ 59,730,428
Accumulated depreciation and amortization	$ 2,516,525		$ 2,503,966
Potential number of common shares excluded from diluted EPS	32,931,560	38,526,609
Weighted average vested restricted stock units	6,734,125	6,444,353

AGREEMENTS WITH AMAG (Details N

AGREEMENTS WITH AMAG (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	Mar. 31, 2021	Jul. 24, 2020
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Contract Termination Agreement Payments				$ 4,300,000	$ 12,000,000
Estimated loss on Invenntory purcahse	$ 18,194,000
Accrued Expenses on Inventory Purchase	2,300,000
Gain on license termination agreement	0	$ (1,623,795)
Loss on the Termination Agreement	$ 4,407,987
Total Loss on Agreement			$ 2,784,192

MANUFACTURING SUPPLY AGREEMEN_2

MANUFACTURING SUPPLY AGREEMENTS FOR VYLEESI (Details)	Sep. 29, 2020EUR (€)
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Termination the Catalent Agreement	€ (6,000,000)

AGREEMENT WITH FOSUN (Details)

AGREEMENT WITH FOSUN (Details) - USD ($)	1 Months Ended
	Dec. 31, 2017	Oct. 31, 2017
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Company License Agreement Recievables		$ 4,500,000
Upfront Payments	$ 500,000	5,000,000
Tax Expense	82,500	500,000
Milestone payment receivable	3,000,000	7,500,000
Additional Sales Recievable	$ 3,750,000	$ 92,500,000

AGREEMENT WITH KWANGDONG (Detai

AGREEMENT WITH KWANGDONG (Details) - USD ($)	1 Months Ended
	Dec. 31, 2017	Oct. 31, 2017
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Recievable under company agreement	$ 417,500
Upfront payments	500,000	$ 5,000,000
Tax Expense	82,500	500,000
Additional Sales Recievable	3,750,000	92,500,000
Milestone payment receivable	$ 3,000,000	$ 7,500,000

PREPAID EXPENSES AND OTHER CU_3

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)	Sep. 30, 2021	Jun. 30, 2021
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Clinical / regulatory costs	$ 295,073	$ 454,750
Insurance premiums	332,713	259,468
Vyleesi contractual advances	1,200,000	1,200,000
Other	1,119,011	1,145,461
Total prepaid expenses and other current assets	$ 2,946,797	$ 3,059,679

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($)	Sep. 30, 2021	Jun. 30, 2021
Money Market Account	$ 52,554,495	$ 59,730,428
Level 1
Money Market Account	52,554,495	59,730,428
Level 2
Money Market Account	0	0
Level 3
Money Market Account	$ 0	$ 0

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($)	Sep. 30, 2021	Jun. 30, 2021
ACCRUED EXPENSES
Clinical / regulatory costs	$ 57,960	$ 778,705
Other research related expenses	627,268	569,370
Professional services	25,000	84,094
Inventory purchases	1,917,633	2,340,000
Selling expenses	2,153,557	1,839,724
Other	209,746	185,485
Accrued expenses	$ 4,991,164	$ 5,797,378

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details)	Sep. 30, 2021USD ($)
Inventory purchase commitments	$ 10,809,004
Current
Inventory purchase commitments	3,679,852
1 - 3 Years
Inventory purchase commitments	5,138,952
4 - 5 Years
Inventory purchase commitments	$ 1,990,200

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	Sep. 30, 2021	Jun. 30, 2021
COMMITMENTS AND CONTINGENCIES
Other Liabilities Current	$ 3,679,852	$ 3,721,907
Other long-term Liabilities	$ 6,167,603	$ 6,232,907

STOCKHOLDERS EQUITY (Details )

STOCKHOLDERS EQUITY (Details )	3 Months Ended
	Sep. 30, 2021USD ($)$ / sharesshares
Stockholders' equity:
Number of Options Outstanding, Beginning | shares	21,882,500
Number of Shares Granted | shares	60,150
Number of Shares Forfeited | shares	(118,152)
Number of Shares Exercised | shares	0
Number of Shares Expired | shares	0
Number of Shares Outstanding, Ending | shares	21,824,498
Number of Shares Exercisable | shares	13,229,109
Number of Shares Expected to vest | shares	8,358,726
Weighted Average Exercise Price Outstanding, Beginning | $ / shares	$ 0.72
Weighted Average Exercise Price Granted | $ / shares	0.46
Weighted Average Exercise Price Forfeited | $ / shares	0.70
Weighted Average Exercise Price Exercised | $ / shares	0
Weighted Average Exercise Price Expired | $ / shares	0
Weighted Average Exercise Price Outstanding, Ending | $ / shares	0.72
Weighted Average Exercise Price Exercisable | $ / shares	0.75
Weighted Average Exercise Price Options Expected to vest | $ / shares	$ 0.68
Weighted Average Remaining Term in Years Options outstanding at beginning of year	7 years 2 months 12 days
Weighted Average Remaining Term in Years Options outstanding at end of year	6 years 10 months 24 days
Weighted Average Remaining Term in Years Options exercisable at end of year	5 years 9 months 18 days
Weighted Average Remaining Term in Years Options Expected to vest	8 years 9 months 18 days
Aggregate Intrinsic Value Options outstanding, beginning | $	$ 1,034,273
Aggregate Intrinsic Value Options outstanding, ending | $	186,886
Aggregate Intrinsic Value Options exercisable | $	$ 186,886

STOCKHOLDERS EQUITY (Details 1)

STOCKHOLDERS EQUITY (Details 1)	3 Months Ended
	Sep. 30, 2021shares
Stockholders' equity:
Outstanding at beginning of year	14,840,762
Forfeited	(81,117)
Vested	(1,624,158)
Outstanding at end of year	13,135,487

STOCKHOLDERS EQUITY (Details Na

STOCKHOLDERS EQUITY (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended
	Jun. 30, 2021	Sep. 30, 2021	Sep. 30, 2020
Stockholders' equity:
Stock based compensation, options		$ 398,812	$ 481,822
Vesting of restricted share		372,176	146,095
Aggregate value		$ 202,353	$ 77,766
Price per share	$ 2
Unvested performance-based restricted stock		1,605,573	332,785
Stock based compensation, restricted stock units		233,915	$ 339,352
Performance-based restricted stock	450,000
Vested shares not issued		$ 6,734,125