Palatin (PTN) 10-Q 15 May 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Mar. 31, 2023	May 12, 2023
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	Mar. 31, 2023
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Entity Common Stock Shares Outstanding		11,523,486
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 $0.01 per share
Trading Symbol	PTN
Security Exchange Name	NYSE
Entity Interactive Data Current	Yes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Current assets:
Cash and cash equivalents	$ 19,632,330	$ 29,939,154
Accounts receivable	1,699,110	1,780,020
Inventories	630,033	944,471
Prepaid expenses and other current assets	2,277,498	1,932,454
Total current assets	24,238,971	34,596,099
Property and equipment, net	713,567	539,314
Right-of-use assets - operating leases	599,442	878,465
Other assets	56,916	56,916
Total assets	25,608,896	36,070,794
Current liabilities:
Accounts payable	2,786,313	3,157,617
Accrued expenses	5,536,033	6,875,216
Short-term operating lease liabilities	301,169	371,124
Short-term finance lease liabilities	104,998	100,921
Other current liabilities	3,122,850	5,754,986
Total current liabilities	11,851,363	16,259,864
Long-term operating lease liabilities	320,490	529,398
Long-term finance lease liabilities	73,141	152,407
Other long-term liabilities	3,771,400	2,861,250
Total liabilities	16,016,394	19,802,919
Commitments and contingencies (Note 12)	0	0
Preferred stock value	40	40
Escrowed proceeds	0	(15,000,000)
Stockholders' equity:
Common stock of $0.01 par value - authorized 300,000,000 shares: issued and outstanding 11,152,680 shares as of March 31, 2023 and 9,270,947 shares as of June 30, 2022 (Note 1)	111,527	92,709
Additional paid-in capital	414,302,055	404,168,822
Accumulated deficit	(404,821,120)	(387,993,696)
Total stockholders' equity	9,592,502	16,267,875
Total liabilities, redeemable convertible preferred stock, and stockholders' equity	25,608,896	36,070,794
Series B And Series C Preferred Stock
Current liabilities:
Preferred stock value	$ 0	$ 15,000,000

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
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	11,152,680	9,270,947
Common stock, shares outstanding	11,152,680	9,270,947
Preferred stock, shares outstanding		4,030
Series A Convertible Preferred Stock [Member]
Preferred stock, shares authorized	4,030	4,030
Preferred stock, shares issued	4,030	4,030
Preferred stock, shares outstanding	4,030	4,030
Series B and C Redeemable Convertible Preferred Stock [Member]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	9,000,000	9,000,000
Preferred stock, shares outstanding	9,000,000	9,000,000
Preferred stock liquidation preference	$ 15,000,000	$ 15,000,000

Consolidated Statements of Oper

Consolidated Statements of Operations (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
REVENUES
Product revenue, net	$ 1,195,675	$ 216,097	$ 3,091,745	$ 447,719
License and contract	0	0	0	250,000
Total revenues	1,195,675	216,097	3,091,745	697,719
OPERATING EXPENSES
Cost of products sold	129,235	46,908	314,438	130,012
Research and development	4,830,327	4,980,074	15,224,896	13,891,235
Selling, general and administrative	3,537,376	3,009,528	10,220,518	10,163,830
Gain on purchase commitment	0	0	(1,027,322)	0
Total operating expenses	8,496,938	8,036,510	24,732,530	24,185,077
Loss from operations	(7,301,263)	(7,820,413)	(21,640,785)	(23,487,358)
OTHER INCOME (EXPENSE)
Investment income	234,044	1,127	509,006	4,100
Foreign currency (loss) gain	(77,266)	190,719	(352,121)	64,000
Interest expense	(3,434)	(3,019)	(18,523)	(11,423)
Total other income (expense), net	153,344	188,827	138,362	56,677
Loss before income taxes	(7,147,919)	(7,631,586)	(21,502,423)	(23,430,681)
Income tax benefit	0	0	4,674,999	0
NET LOSS	$ (7,147,919)	$ (7,631,586)	$ (16,827,424)	$ (23,430,681)
Basic and diluted net loss per common share	$ (0.63)	$ (0.80)	$ (1.59)	$ (2.46)
Weighted average number of common shares outstanding used in computing basic and diluted net loss per common share (Note 1)	11,432,380	9,552,214	10,613,830	9,537,768

Consolidated Statements of Chan

Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders Equity (unaudited) - USD ($)	Total	Series A Convertible Preferred Stock	Preferred Stock Series B	Preferred Stock Series C	Common Stock	Escrow Proceeds	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Preferred Stock
Balance, shares at Jun. 30, 2021					9,201,988				4,030
Balance, amount at Jun. 30, 2021	$ 49,651,372				$ 2,300,497		$ 399,146,232	$ (351,795,397)	$ 40
Stock-based compensation, shares					69,406
Stock-based compensation, amount	1,789,947				$ 17,352		1,772,595	0	0
Withholding taxes related to restricted stock units, shares					(16,191)
Withholding taxes related to restricted stock units, amount	(221,311)				$ (4,048)		(217,263)	0	0
Warrant exercises, shares					14,000
Warrant exercises, amount	280,000				$ 3,500		276,500	0	0
Option exercises, shares					1,744
Option exercises, amount	16,132				$ 436		15,696	0	0
Net loss	(23,430,681)				$ 0		0	(23,430,681)	$ 0
Stock-based compensation	1,789,947
Balance, shares at Mar. 31, 2022					9,270,947				4,030
Balance, amount at Mar. 31, 2022	28,085,459				$ 2,317,737		400,993,760	(375,226,078)	$ 40
Balance, shares at Dec. 31, 2021					9,267,811				4,030
Balance, amount at Dec. 31, 2021	35,196,307				$ 2,316,953		400,473,806	(367,594,492)	$ 40
Stock-based compensation, shares					4,440
Stock-based compensation, amount	533,779				$ 1,110		532,669	0	0
Withholding taxes related to restricted stock units, shares					(1,304)
Withholding taxes related to restricted stock units, amount	(13,041)				$ (326)		(12,715)	0	0
Net loss	(7,631,586)				$ 0		0	(7,631,586)	$ 0
Balance, shares at Mar. 31, 2022					9,270,947				4,030
Balance, amount at Mar. 31, 2022	28,085,459				$ 2,317,737		400,993,760	(375,226,078)	$ 40
Balance, shares at Jun. 30, 2022		4,030	8,100,000	900,000	9,270,947
Balance, amount at Jun. 30, 2022	16,267,875	$ 40	$ 13,500,000	$ 1,500,000	$ 92,709	$ (15,000,000)	404,168,822	(387,993,696)
Stock-based compensation, shares					84,062
Stock-based compensation, amount	1,188,918	0	0	0	$ 841	0	1,188,077	0
Withholding taxes related to restricted stock units, shares					(20,468)
Withholding taxes related to restricted stock units, amount	(146,062)	0	0	0	$ (205)	0	(145,857)	0
Warrant exercises, shares					798,182
Warrant exercises, amount	78	0	0	0	$ 7,982	0	(7,904)	0
Net loss	(16,827,424)	0	$ 0	$ 0	0	0	0	(16,827,424)
Redemption of convertible series B & series C preferred stock, shares			(8,100,000)	(900,000)
Redemption of convertible series B & series C preferred stock, amount	0	0	$ (13,500,000)	$ (1,500,000)	$ 0	15,000,000	0	0
Sale of common stock and warrants, net of costs, shares					1,020,000
Sale of common stock and warrants, net of costs, amount	9,109,117	0	0	0	$ 10,200	0	9,098,917	0
Reverse stock split fractional shares, shares					(43)
Reverse stock split fractional shares, amount	0	$ 0	0	0	$ 0	0	0	0
Stock-based compensation	1,188,918
Balance, shares at Mar. 31, 2023		4,030			11,152,680
Balance, amount at Mar. 31, 2023	9,592,502	$ 40	0	0	$ 111,527	0	414,302,055	(404,821,120)
Balance, shares at Dec. 31, 2022		4,030			10,354,498
Balance, amount at Dec. 31, 2022	16,343,586	$ 40	0	0	$ 103,545	0	413,913,202	(397,673,201)
Warrant exercises, shares					798,182
Warrant exercises, amount	78	0	0	0	$ 7,982	0	(7,904)	0
Net loss	(7,147,919)	0	0	0	0	0	0	(7,147,919)
Stock-based compensation	396,757	0	0	0	0	0	396,757	0
Redemption of convertible series B & series C preferred stock	0	$ 0	0	0	$ 0	0	0	0
Balance, shares at Mar. 31, 2023		4,030			11,152,680
Balance, amount at Mar. 31, 2023	$ 9,592,502	$ 40	$ 0	$ 0	$ 111,527	$ 0	$ 414,302,055	$ (404,821,120)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (16,827,424)	$ (23,430,681)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	207,278	84,244
Decrease in right-of-use asset	279,023	268,856
Unrealized foreign currency transaction loss	352,121	(64,000)
Stock-based compensation	1,188,918	1,789,947
Gain on purchase commitment	(1,027,322)	0
Changes in operating assets and liabilities:
Accounts receivable	80,910	790,438
Other receivables	0	0
Prepaid expenses and other assets	(345,044)	354,793
Inventories	314,438	130,012
Accounts payable	(407,673)	1,762,089
Accrued expenses	(1,339,183)	(2,621,964)
Operating lease liabilities	(278,863)	(263,235)
Other liabilities	(1,010,416)	(1,004,400)
Net cash used in operating activities	(18,813,237)	(22,203,901)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(381,531)	(224,258)
Net cash used in investing activities	(381,531)	(224,258)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of withholding taxes related to restricted stock units	(146,062)	(221,311)
Proceeds from the sale of common stock and warrants, net of costs	9,109,117	0
Payment of finance lease obligations	(75,189)	(32,050)
Proceeds from exercise of warrants	78	280,000
Proceeds from exercise of stock options	0	16,132
Net cash provided by financing activities	8,887,944	42,771
NET DECREASE IN CASH AND CASH EQUIVALENTS	(10,306,824)	(22,385,388)
CASH AND CASH EQUIVALENTS, beginning of period	29,939,154	60,104,919
CASH AND CASH EQUIVALENTS, end of period	19,632,330	37,719,531
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$ 18,523	$ 11,423

ORGANIZATION

ORGANIZATION	9 Months Ended
	Mar. 31, 2023
ORGANIZATION
ORGANIZATION	(1) ORGANIZATION Nature of Business Melanocortin Receptor System. The Company’s commercial product, Vyleesi®, was approved by the U.S. Food and Drug Administration (“FDA”) in June 2019 and was being marketed in the United States 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 the United States. The Company’s 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. Reverse Stock Split Business Risks and Liquidity – As of March 31, 2023, the Company’s cash and cash equivalents were $19,632,330 and current liabilities were $11,851,363. 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. The Company follows the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 205-40, Presentation of Financial Statements — Going Concern Based on the Company’s March 31, 2023 cash and cash equivalents, management has concluded that substantial doubt exists about the Company’s ability to continue as a going concern for one year from the date these consolidated financial statements are issued. The Company is evaluating strategies to obtain additional funding for future operations which include but are not limited to obtaining equity financing, issuing debt, or reducing planned expenses. A failure to raise additional funding or to effectively implement cost reductions could harm the Company’s business, results of operations, and future prospects. If the Company is not able to secure adequate additional funding in future periods, the Company would be forced to make additional reductions in certain expenditures. This may include liquidating assets and suspending or curtailing planned programs. The Company may also have to delay, reduce the scope of, suspend, or eliminate one or more research and development programs or its commercialization efforts or pursue a strategic transaction. If the Company is unable to raise capital when needed or enter into a strategic transaction, then the Company may be required to cease operations, which could cause its stockholders to lose all or part of their investment. The consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the continuity of operations, the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. Assuming no additional funding and based on its current operating and development plans, the Company expects that existing cash and cash equivalents as of the date of this filing will be sufficient to fund currently anticipated operating expenses through calendar year 2023. 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 its licensees. It has 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. Concentrations –

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Mar. 31, 2023
BASIS OF PRESENTATION
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 and nine months ended March 31, 2023 may not necessarily be indicative of the results of operations expected for the full fiscal 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, 2022, filed with the U.S. Securities and Exchange Commission (“SEC”), which includes consolidated financial statements as of June 30, 2022 and 2021 and for the fiscal years then ended.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Mar. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 Leases The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term. For finance leases, the ROU asset is subsequently amortized using the straight-line method from the lease commencement date to the earlier of the end of its useful life or the end of the lease term unless the lease transfers ownership of the underlying asset to the Company or the Company is reasonably certain to exercise an option to purchase the underlying asset. In those cases, the ROU asset is amortized over the useful life of the underlying asset. Amortization of the ROU asset is recognized and presented as an operating expense separately from interest expense on the lease liability. The Company has elected not to recognize an ROU asset and obligation for leases with an initial term of 12 months or less. The expense associated with short-term leases is included in selling, general and administrative expense in the statements of operations. To the extent a lease arrangement includes both lease and non-lease components, the Company has elected to account for the components as a single lease component. Revenue Recognition Revenue from Contracts with Customers In accordance with ASC Topic 606, the Company recognizes product 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. Gross product sales offset by product sales allowances for the three and nine months ended March 31, 2023 and 2022 are as follows: Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Gross product sales $ 3,425,190 $ 1,294,560 $ 8,333,730 $ 3,497,110 Provision for product sales allowances and accruals (2,229,515 ) (1,078,463 ) (5,241,985 ) (3,049,391 ) Net sales $ 1,195,675 $ 216,097 $ 3,091,745 $ 447,719 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 determines 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 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 – Income Taxes Net Loss per Common Share – Earnings per Share The Company’s Series B and Series C Redeemable Convertible Preferred Stock and warrants issued during the year ended June 30, 2022 met the definition of a participating security given their rights to participate in dividends if declared on common stock, which requires the Company to apply the two-class method to compute both basic and diluted net income or loss per share. The two-class method is an earnings allocation formula that treats participating securities as having rights to earnings that would otherwise have been available to common stockholders. In addition, as these securities are participating securities, the Company is required to calculate diluted net income or loss per share under the if-converted and treasury stock method in addition to the two-class method and utilize the most dilutive result. In periods where there is a net loss, no allocation of undistributed net loss to the Redeemable Convertible Preferred stockholders or warrant holders is performed as the holders of these securities are not contractually obligated to participate in the Company’s losses. For the three and nine months ended March 31, 2023 and 2022, 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 and nine months ended March 31, 2023 and 2022 was 3,425,323 and 1,107,775 respectively. Included in the weighted average common shares used in computing basic and diluted net loss per common share are 279,700 and 280,500 vested restricted stock units that had not been issued as of March 31, 2023 and 2022, 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	9 Months Ended
	Mar. 31, 2023
New and recently Adopted Accounting Pronouncements
New and recently adopted accounting pronouncements	(4) New and recently Adopted Accounting Pronouncements In May 2021, the FASB issued Accounting Standards Update (“ASU”) No. 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. 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,

AGREEMENTS WITH AMAG

AGREEMENTS WITH AMAG	9 Months Ended
	Mar. 31, 2023
AGREEMENTS WITH AMAG
AGREEMENTS 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 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	9 Months Ended
	Mar. 31, 2023
MANUFACTURING SUPPLY AGREEMENTS FOR VYLEESI
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 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). The term of the Lonza Agreement was set to expire on December 31, 2022. In November 2022, Lonza and the Company amended the Lonza Agreement to extend contract peptide manufacturing services until June 30, 2024. The Company intends to seek to extend contract peptide manufacturing services with Lonza past June 30, 2024, and is also actively evaluating potential new contract manufacturers. Establishing a new contractual relationship and establishing and validating manufacturing in a manner that complies with FDA regulations is a time-consuming and costly process. The amendment reduced certain minimum purchase commitments that were previously accrued for in connection with the Termination Agreement. As a result, the Company recorded a gain on the purchase commitment of $1,027,322 upon the reversal of the accrual (see Note 12).

AGREEMENT WITH FOSUN

AGREEMENT WITH FOSUN	9 Months Ended
	Mar. 31, 2023
AGREEMENT WITH FOSUN
AGREEMENT WITH FOSUN	(7) AGREEMENT WITH FOSUN On September 6, 2017, the Company entered into a license agreement with Shanghai Fosun Pharmaceutical Industrial 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 during the year ended June 30, 2018. The Company is entitled to 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. The Company 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	9 Months Ended
	Mar. 31, 2023
AGREEMENT WITH KWANGDONG
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 in Korea (the “Kwangdong License Agreement”). 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. The Company is entitled to receive a $3,000,000 milestone payment based on the first commercial sale in Korea. The Company 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	9 Months Ended
	Mar. 31, 2023
PREPAID EXPENSES AND OTHER CURRENT ASSETS
PREPAID EXPENSES AND OTHER CURRENT ASSETS	(9) PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses March 31, June 30, 2023 2022 Clinical / regulatory costs $ 118,418 $ 310,573 Insurance premiums 483,661 132,413 Vyleesi contractual advances 815,750 815,750 Other 859,669 673,718 $ 2,277,498 $ 1,932,454

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Mar. 31, 2023
FAIR VALUE MEASUREMENTS
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 active markets (Level 1) Other quoted/observable inputs (Level 2) Significant unobservable inputs (Level 3) March 31, 2023: Money market account $ 18,930,140 $ 18,930,140 $ - $ - June 30, 2022: Money market account $ 29,740,565 $ 29,740,565 $ - $ -

ACCRUED EXPENSES

ACCRUED EXPENSES	9 Months Ended
	Mar. 31, 2023
ACCRUED EXPENSES
ACCRUED EXPENSES	(11) ACCRUED EXPENSES Accrued expenses March 31, June 30, 2023 2022 Clinical / regulatory costs $ 4,398,822 $ 3,944,798 Other research related expenses 86,034 35,172 Professional services 7,504 351,257 Personnel costs - 1,545,896 Selling expenses 901,347 840,703 Other 142,326 157,390 $ 5,536,033 $ 6,875,216

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Mar. 31, 2023
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	(12) COMMITMENTS AND CONTINGENCIES Inventory Purchases Total Current 1 - 3 Years Inventory purchase commitments $ 7,837,100 $ 4,065,700 $ 3,771,400 As of March 31, 2023, the Company has $3,122,850 and $3,771,400 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, 2022, $5,754,986 and $2,861,250 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 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.

STOCKHOLDERS EQUITY AND REDEEMA

STOCKHOLDERS EQUITY AND REDEEMABLE CONVERTIBLE PREFERRED STOCK	9 Months Ended
	Mar. 31, 2023
STOCKHOLDERS EQUITY AND REDEEMABLE CONVERTIBLE PREFERRED STOCK
STOCKHOLDERS' EQUITY AND REDEEMABLE CONVERTIBLE PREFERRED STOCK	(13) STOCKHOLDERS’ EQUITY AND REDEEMABLE CONVERTIBLE PREFERRED STOCK Series B and C Redeemable Convertible Preferred Stock Given that the fee and other costs were not refundable to the Company as of June 30, 2022, regardless of the election selected by the investors, the $750,000 fee, the fair value of the warrants ($234,443), and other costs of $150,995 were recorded as expenses within selling, general and administrative expenses during the year ended June 30, 2022. The Company called a meeting of stockholders on June 24, 2022 to seek approval of, among other things, an amendment to its certificate of incorporation authorizing a reverse stock split. Except as otherwise required by law, holders of the Series B Preferred Stock and Series C Preferred Stock were entitled to vote only on the reverse stock split and any adjournment of the meeting relating to the reverse stock split. The Company’s common stock, outstanding Series A Preferred Stock, the Series B Preferred Stock and the Series C Preferred Stock voted as a single class on an as-if converted basis. The holders of Series B Preferred Stock had votes equal to the number of shares of common stock into which the Series B Preferred Stock is convertible. The holders of Series C Preferred Stock were entitled to 20,000 votes per share of common stock into which the Series C Preferred Stock is convertible but could only vote in the same proportion as the shares of common stock, Series A preferred stock, and Series B preferred stock were voted on the reverse stock split or any adjournment of the stockholder meeting relating thereto. The holders of the Series B Preferred Stock agreed to vote in favor of the reverse stock split, which was approved and ultimately became effective on August 30, 2022. Series A Convertible Preferred Stock Financing Transactions – The Common Warrants have an exercise price of $5.83 per share, are exercisable beginning six months after the date of issuance, and will expire five and one-half years from the date of issuance. The Pre-Funded Warrants have an exercise price of $0.0001 per share, are exercisable upon issuance, and will expire when exercised in full. The Common Warrants will be exercisable for cash, or, solely during any period when a registration statement for the issuance or resale of the shares of common stock issuable upon exercise of the Common Warrants to or by the holder of such Common Warrants is not in effect, on a cashless basis. During the three months ended March 31, 2023, the institutional investor exercised the outstanding Pre-Funded Warrants to purchase 798,182 shares of the Company’s common stock. The proceeds from the Offering, after deducting the placement agent fees and expenses and other estimated offering expenses, were $9,109,117. On June 21, 2019, the Company entered into an equity distribution agreement (the “2019 Equity Distribution Agreement”) with Canaccord Genuity LLC (“Canaccord”), pursuant to which the Company may, from time to time, sell shares of the Company’s common stock at market prices by methods deemed to be an “at-the-market offering” as defined in Rule 415 promulgated under the Securities Act of 1933, as amended. The 2019 Equity Distribution Agreement and related prospectus is limited to sales of up to an aggregate maximum $40.0 million of shares of the Company’s common stock. The Company pays Canaccord 3.0% of the gross proceeds as a commission. No proceeds were raised under the 2019 Equity Distribution Agreement during the three and nine months ended March 31, 2023 and 2022. On April 12, 2023, the Company entered into a new equity distribution agreement with Canaccord Genuity LLC. (See note 15). Stock Purchase Warrants- Shares of Common Exercise Price per Latest Expiration Description Stock Share Date May 2022 Warrants 66,666 $ 12.50 May 11, 2026 November 2022 Common Warrants 1,818,182 $ 5.83 May 2, 2028 November 2022 Placement Agent Warrants 90,909 $ 6.88 October 31, 2027 Stock Options A summary of stock option activity is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term in Years Aggregate Intrinsic Value Outstanding - June 30, 2022 1,163,962 $ 15.98 7.1 $ - Granted 33,160 4.58 Forfeited (274,440 ) 12.00 Exercised - - Expired (38,274 ) 18.21 Outstanding - March 31, 2023 884,408 13.05 7.3 $ - Exercisable at March 31, 2023 430,873 $ 14.85 6.1 $ - Expected to vest at March 31, 2023 453,535 $ 11.34 8.4 $ - On December 16, 2022, Carl Spana, President and CEO of the Company, and Stephen T. Wills, CFO, COO and Executive Vice President of the Company, voluntarily contributed stock options previously issued to them to purchase 143,360 and 124,220 shares, respectively, of the Company’s common stock to the 2011 Stock Incentive Plan. The stock options were forfeited and cancelled without payment of any consideration by the Company. 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 166,233 and 18,921 of unvested performance-based stock options granted to executive officers and other employees, respectively, which were granted in June 2020, 2021 and 2022. Grants in June 2020, 2021, and 2022 were 87,303, 95,167, and 60,566 respectively. The performance-based stock options vest on annual performance criteria through the fiscal years ending June 30, 2026 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 June 30, 2022 649,149 Granted - Forfeited (3,312 ) Vested (84,062 ) Fractional shares (6 ) Outstanding at March 31, 2023 561,769 Included in outstanding restricted stock units in the table above are 279,700 vested shares that have not been issued as of March 31, 2023 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 61,556 and 13,751 unvested performance-based restricted stock units granted to executive officers and other employees, respectively, which were granted in June 2019, 2020, 2021, and 2022. Grants in June 2019, 2020, 2021 and 2022 were 24,829, 52,679, 22,343, and 40,707 respectively. The performance-based restricted stock units vest on annual performance criteria through the fiscal years ending June 30, 2026 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 18,000 performance-based restricted stock units 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 $50.00 for at least twenty consecutive trading days.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Mar. 31, 2023
INCOME TAXES
INCOME TAXES	(14) INCOME TAXES The Company has participated in the State of New Jersey’s Technology Business Tax Certificate Transfer Program (the “Program”) sponsored by The New Jersey Economic Development Authority. The Program enables approved biotechnology companies with unused Net Operating Losses (“NOLs”) and unused research and development credits (“R&D credits”) to sell these tax benefits for at least 80% of the value of the tax benefits to unaffiliated, profitable corporate taxpayers in the State of New Jersey. The Company received final approval in December 2022 for the sale of NOLs and R&D credits that resulted in the receipt of $4,674,999 in January 2023. As a result, the Company recorded an income tax benefit for the nine months ended March 31, 2023.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Mar. 31, 2023
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	(15) SUBSEQUENT EVENTS On April 12, 2023, the Company entered into a new equity distribution agreement with Canaccord Genuity LLC (“Canaccord”) (the “2023 Equity Distribution Agreement”), pursuant to which the Company may, from time to time, sell shares of the Company’s common stock at market prices by methods deemed to be an “at-the-market offering” as defined in Rule 415 promulgated under the Securities Act of 1933, as amended. The 2023 Equity Distribution Agreement and related prospectus is limited to sales of up to an aggregate maximum $50.0 million of shares of the Company’s common stock. The Company pays Canaccord 3.0% of the gross proceeds as a commission. Between April 12, 2023 and May 12, 2023, a total of 374,772 shares of common stock were sold through Canaccord under the 2023 Equity Distribution Agreement for net proceeds of $876,121 after payment of commission fees of $27,097.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Mar. 31, 2023
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 Account Receivables	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 The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term. For finance leases, the ROU asset is subsequently amortized using the straight-line method from the lease commencement date to the earlier of the end of its useful life or the end of the lease term unless the lease transfers ownership of the underlying asset to the Company or the Company is reasonably certain to exercise an option to purchase the underlying asset. In those cases, the ROU asset is amortized over the useful life of the underlying asset. Amortization of the ROU asset is recognized and presented as an operating expense separately from interest expense on the lease liability. The Company has elected not to recognize an ROU asset and obligation for leases with an initial term of 12 months or less. The expense associated with short-term leases is included in selling, general and administrative expense in the statements of operations. To the extent a lease arrangement includes both lease and non-lease components, the Company has elected to account for the components as a single lease component.
Revenue Recognition	Revenue Recognition Revenue from Contracts with Customers In accordance with ASC Topic 606, the Company recognizes product 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. Gross product sales offset by product sales allowances for the three and nine months ended March 31, 2023 and 2022 are as follows: Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Gross product sales $ 3,425,190 $ 1,294,560 $ 8,333,730 $ 3,497,110 Provision for product sales allowances and accruals (2,229,515 ) (1,078,463 ) (5,241,985 ) (3,049,391 ) Net sales $ 1,195,675 $ 216,097 $ 3,091,745 $ 447,719 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 determines 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 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 The Company’s Series B and Series C Redeemable Convertible Preferred Stock and warrants issued during the year ended June 30, 2022 met the definition of a participating security given their rights to participate in dividends if declared on common stock, which requires the Company to apply the two-class method to compute both basic and diluted net income or loss per share. The two-class method is an earnings allocation formula that treats participating securities as having rights to earnings that would otherwise have been available to common stockholders. In addition, as these securities are participating securities, the Company is required to calculate diluted net income or loss per share under the if-converted and treasury stock method in addition to the two-class method and utilize the most dilutive result. In periods where there is a net loss, no allocation of undistributed net loss to the Redeemable Convertible Preferred stockholders or warrant holders is performed as the holders of these securities are not contractually obligated to participate in the Company’s losses. For the three and nine months ended March 31, 2023 and 2022, 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 and nine months ended March 31, 2023 and 2022 was 3,425,323 and 1,107,775 respectively. Included in the weighted average common shares used in computing basic and diluted net loss per common share are 279,700 and 280,500 vested restricted stock units that had not been issued as of March 31, 2023 and 2022, 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)	9 Months Ended
	Mar. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Gross product sales	Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Gross product sales $ 3,425,190 $ 1,294,560 $ 8,333,730 $ 3,497,110 Provision for product sales allowances and accruals (2,229,515 ) (1,078,463 ) (5,241,985 ) (3,049,391 ) Net sales $ 1,195,675 $ 216,097 $ 3,091,745 $ 447,719

PREPAID EXPENSES AND OTHER CU_2

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	9 Months Ended
	Mar. 31, 2023
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Schedule of prepaid expenses and other current assets	March 31, June 30, 2023 2022 Clinical / regulatory costs $ 118,418 $ 310,573 Insurance premiums 483,661 132,413 Vyleesi contractual advances 815,750 815,750 Other 859,669 673,718 $ 2,277,498 $ 1,932,454

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Mar. 31, 2023
FAIR VALUE MEASUREMENTS
Schedule of fair value asset measurement	Carrying Value Quoted prices in active markets (Level 1) Other quoted/observable inputs (Level 2) Significant unobservable inputs (Level 3) March 31, 2023: Money market account $ 18,930,140 $ 18,930,140 $ - $ - June 30, 2022: Money market account $ 29,740,565 $ 29,740,565 $ - $ -

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	9 Months Ended
	Mar. 31, 2023
ACCRUED EXPENSES
Schdule of Accrued Expenses	March 31, June 30, 2023 2022 Clinical / regulatory costs $ 4,398,822 $ 3,944,798 Other research related expenses 86,034 35,172 Professional services 7,504 351,257 Personnel costs - 1,545,896 Selling expenses 901,347 840,703 Other 142,326 157,390 $ 5,536,033 $ 6,875,216

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Mar. 31, 2023
COMMITMENTS AND CONTINGENCIES
Schedule of inventory purchase commitments	Total Current 1 - 3 Years Inventory purchase commitments $ 7,837,100 $ 4,065,700 $ 3,771,400

STOCKHOLDERS EQUITY AND REDEE_2

STOCKHOLDERS EQUITY AND REDEEMABLE CONVERTIBLE PREFERRED STOCK (Table)	9 Months Ended
	Mar. 31, 2023
STOCKHOLDERS EQUITY AND REDEEMABLE CONVERTIBLE PREFERRED STOCK
Outstanding Stock Purchase Warrants	Shares of Common Exercise Price per Latest Expiration Description Stock Share Date May 2022 Warrants 66,666 $ 12.50 May 11, 2026 November 2022 Common Warrants 1,818,182 $ 5.83 May 2, 2028 November 2022 Placement Agent Warrants 90,909 $ 6.88 October 31, 2027
Option activity	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term in Years Aggregate Intrinsic Value Outstanding - June 30, 2022 1,163,962 $ 15.98 7.1 $ - Granted 33,160 4.58 Forfeited (274,440 ) 12.00 Exercised - - Expired (38,274 ) 18.21 Outstanding - March 31, 2023 884,408 13.05 7.3 $ - Exercisable at March 31, 2023 430,873 $ 14.85 6.1 $ - Expected to vest at March 31, 2023 453,535 $ 11.34 8.4 $ -
Restricted Stock Units	Outstanding at June 30, 2022 649,149 Granted - Forfeited (3,312 ) Vested (84,062 ) Fractional shares (6 ) Outstanding at March 31, 2023 561,769

ORGANIZATION (Details Narrative

ORGANIZATION (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022
ORGANIZATION
Accumulated deficit	$ 404,821,120		$ 404,821,120		$ 387,993,696
Net loss	(7,147,919)	$ (7,631,586)	(16,827,424)	$ (23,430,681)
Cash and cash equivalents	19,632,330		19,632,330		29,939,154
Total current liabilities	$ 11,851,363		$ 11,851,363		$ 16,259,864

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Product Revenue - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Gross product sales	$ 3,425,190	$ 1,294,560	$ 8,333,730	$ 3,497,110
Provision for product sales allowances and accruals	(2,229,515)	(1,078,463)	(5,241,985)	(3,049,391)
Net sales	$ 1,195,675	$ 216,097	$ 3,091,745	$ 447,719

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash and cash equivalents	$ 18,930,140		$ 18,930,140		$ 29,740,565
Accumulated depreciation and amortization			$ 2,837,912		$ 2,630,634
Potential number of common shares excluded from diluted EPS	3,425,323	1,107,775	3,425,323	1,107,775
Weighted average vested restricted stock units			279,700	280,500

AGREEMENTS WITH AMAG (Details N

AGREEMENTS WITH AMAG (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Mar. 31, 2023	Mar. 31, 2021	Jul. 24, 2020
AGREEMENTS WITH AMAG
Contract Termination Agreement Payments				$ 4,300,000	$ 12,000,000
Estimated loss on Invenntory purcahse	$ 1,623,795		$ 18,194,000
Accrued Expenses on Inventory Purchase			$ 2,300,000
Loss on the Termination Agreement		$ 4,407,987
Total Loss on Agreement		$ 2,784,192
Inventory and prepaid expenses estimated fair value					$ 5,817,795

MANUFACTURING SUPPLY AGREEMEN_2

MANUFACTURING SUPPLY AGREEMENTS FOR VYLEESI (Details Narrative)	9 Months Ended
	Mar. 31, 2023 USD ($)
MANUFACTURING SUPPLY AGREEMENTS FOR VYLEESI
Gain on the purchase commitment	$ 1,027,322

AGREEMENT WITH FOSUN (Details N

AGREEMENT WITH FOSUN (Details Narrative) - USD ($)		1 Months Ended
	Sep. 06, 2017	Nov. 21, 2017
AGREEMENT WITH FOSUN
Company License Agreement Recievables	$ 4,500,000
Upfront Payments	5,000,000	$ 500,000
Tax Expense	500,000	82,500
Milestone payment receivable	7,500,000	3,000,000
Additional Sales Recievable	$ 92,500,000	$ 37,500,000

AGREEMENT WITH KWANGDONG (Detai

AGREEMENT WITH KWANGDONG (Details Narrative) - USD ($)		1 Months Ended
	Sep. 06, 2017	Nov. 21, 2017
AGREEMENT WITH KWANGDONG
Recievable under company agreement		$ 417,500
Upfront payments	$ 5,000,000	500,000
Tax Expense	500,000	82,500
Additional Sales Recievable	92,500,000	37,500,000
Milestone payment receivable	$ 7,500,000	$ 3,000,000

PREPAID EXPENSES AND OTHER CU_3

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Clinical / regulatory costs	$ 118,418	$ 310,573
Insurance premiums	483,661	132,413
Vyleesi contractual advances	815,750	815,750
Other	859,669	673,718
Total prepaid expenses and other current assets	$ 2,277,498	$ 1,932,454

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Money Market Account	$ 18,930,140	$ 29,740,565
Level 1
Money Market Account	18,930,140	29,740,565
Level 2
Money Market Account	0	0
Level 3
Money Market Account	$ 0	$ 0

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
ACCRUED EXPENSES
Clinical / regulatory costs	$ 4,398,822	$ 3,944,798
Other research related expenses	86,034	35,172
Professional services	7,504	351,257
Personal cost	0	1,545,896
Selling expenses	901,347	840,703
Other	142,326	157,390
Total	$ 5,536,033	$ 6,875,216

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details)	Mar. 31, 2023 USD ($)
Inventory purchase commitments	$ 7,837,100
Current
Inventory purchase commitments	4,065,700
1 - 3 Years
Inventory purchase commitments	$ 3,771,400

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
COMMITMENTS AND CONTINGENCIES
Other Liabilities Current	$ 3,122,850	$ 5,754,986
Accrued Other long-term Liabilities	$ 3,771,400	$ 2,861,250

STOCKHOLDERS EQUITY AND REDEE_3

STOCKHOLDERS EQUITY AND REDEEMABLE CONVERTIBLE PREFERRED STOCK (Details) - $ / shares	1 Months Ended	9 Months Ended
	Oct. 31, 2022	Mar. 31, 2023
Shares of Common Stock		798,182
Exercise Price per Share	$ 5.83
May 2022 Warrants
Shares of Common Stock		66,666
Exercise Price per Share		$ 12.50
Latest Termination Date		May 11, 2026
November 2022 Common Warrants
Shares of Common Stock		1,818,182
Exercise Price per Share		$ 5.83
Latest Termination Date		May 2, 2028
November 2022 Placement Agent Warrants
Shares of Common Stock		90,909
Exercise Price per Share		$ 6.88
Latest Termination Date		October 31, 2027

STOCKHOLDERS EQUITY AND REDEE_4

STOCKHOLDERS EQUITY AND REDEEMABLE CONVERTIBLE PREFERRED STOCK (Details 1)	9 Months Ended
	Mar. 31, 2023 USD ($) $ / shares shares
STOCKHOLDERS EQUITY AND REDEEMABLE CONVERTIBLE PREFERRED STOCK
Number of Options Outstanding, Beginning | shares	1,163,962
Number of Options Granted | shares	33,160
Number of Options Forfeited | shares	274,440
Number of Options Expired | shares	(38,274)
Number of Options Outstanding, Ending | shares	884,408
Number of Options Exercisable | shares	430,873
Number of Options Expected to vest | shares	453,535
Weighted Average Exercise Price Outstanding, Beginning	$ 15.98
Weighted Average Exercise Price Granted	4.58
Weighted Average Exercise Price Forfeited	12
Weighted Average Exercise Price Exercised	0
Weighted Average Exercise Price Expired	18.21
Weighted Average Exercise Price Outstanding, Ending	13.05
Weighted Average Exercise Price Exercisable	14.85
Weighted Average Exercise Price Options Expected to vest	$ 11.34
Weighted Average Remaining Term in Years Options outstanding at beginning of year	7 years 1 month 6 days
Weighted Average Remaining Term in Years Options outstanding at end of year	7 years 3 months 18 days
Weighted Average Remaining Term in Years Options exercisable at end of year	6 years 1 month 6 days
Weighted Average Remaining Term in Years Options Expected to vest	8 years 4 months 24 days
Aggregate Intrinsic Value Options outstanding | $	$ 0
Aggregate Intrinsic Value Options exercisable | $	0
Aggregate Intrinsic Value Options Expected to vest | $	$ 0

STOCKHOLDERS EQUITY AND REDEE_5

STOCKHOLDERS EQUITY AND REDEEMABLE CONVERTIBLE PREFERRED STOCK (Details 2)	9 Months Ended
	Mar. 31, 2023 shares
STOCKHOLDERS EQUITY AND REDEEMABLE CONVERTIBLE PREFERRED STOCK
Outstanding at beginning of year	649,149
Forfeited	(3,312)
Vested	(84,062)
Fractional shares	(6)
Outstanding at ending of year	561,769

STOCKHOLDERS EQUITY AND REDEE_6

STOCKHOLDERS EQUITY AND REDEEMABLE CONVERTIBLE PREFERRED STOCK (Details Narrative) - USD ($)		1 Months Ended		3 Months Ended		9 Months Ended		12 Months Ended
	May 11, 2022	Oct. 31, 2022	Jun. 30, 2021	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022	Dec. 31, 2022	Jun. 30, 2020	Jun. 30, 2019
Stock based compensation, options				$ 194,245	$ 329,146	$ 576,786	$ 1,108,693
Shares of Common Stock						798,182
Fees and expenses						$ 9,109,117
Voting of shares description						The holders of Series C Preferred Stock were entitled to 20,000 votes per share
Exercise Price per Share		$ 5.83
Exercise price		$ 0.0001							$ 50
Decription of commission						The Company pays Canaccord 3.0% of the gross proceeds as a commission
Unvested performance-based restricted stock			$ 95,167					$ 60,566		$ 87,303
Unvested performance-based stock options granted to executive officers and other employees								166,233
Unvested performance-based stock options granted								18,921
Stock based compensation, restricted stock units				202,512	$ 204,633	$ 612,132	$ 681,254
Description of securities purchase		1,020,000 shares of the Company’s common stock, (ii) prefunded warrants (the “Pre-Funded Warrants”) to purchase up to 798,182 shares of the Company’s common stock, and (iii) common stock warrants (the “Common Warrants”) to purchase up to 1,818,182 shares of the Company’s common stock. Each share of common stock was offered with one accompanying Common Warrant with a combined offering price of $5.50. Each Pre-Funded Warrant was offered with one accompanying Common Warrant with a combined offering price of $5.4999
Performance-based restricted stock			18,000
Convertible Preferred Stock were outstanding								4,030	4,030
Total gross proceeds						15,000,000
Account to release						15,750,000
Other Employees
Outstanding restricted stock units								$ 61,556
Unvested performance-based restricted stock units granted								13,751
Executive Officers
Outstanding restricted stock units			$ 18,000	$ 279,700		$ 279,700
Unvested performance-based restricted stock units granted			22,343					40,707		52,679	24,829
Series B and C Redeemable Convertible Preferred Stock [Member]
Convertible Preferred Stock were outstanding				9,000,000		9,000,000		9,000,000
Series B Convertible Preferred Stock
Fee								$ 750,000
Selling, general and administrative expenses								150,995
Fair value of the warrants								(234,443)
Convertible Series A Preferred Stock
Convertible Preferred Stock were outstanding				4,030		4,030
Aggregate value								403,000
Conversion Price				$ 152.50		$ 152.50
Convertible shares				$ 0.66		$ 0.66
Distributable value of dividend				$ 100		$ 100		$ 100
Securities Purchase Agreement [Member] | Series B and C Redeemable Convertible Preferred Stock [Member]
Exercise price	$ 12.50
Warrants to purchase up	66,666
Total gross proceeds from the offering						$ 15,000,000
Shares sold	8,100,000
Expiry of share issuance	48 months
2011 Stock Incentive Plan
Incentive for nonqualified stock option grants, restricted stock unit awards and other stock-based awards to employees, non-employee directors and consultants						143,360
Shares available for grant				124,220		124,220

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative)	Mar. 31, 2023 USD ($)
INCOME TAXES
Federal research and development credits	$ 4,674,999

SUBSEQUENT EVENT (Details Narra

SUBSEQUENT EVENT (Details Narrative) - USD ($)		1 Months Ended	9 Months Ended
	Apr. 12, 2023	May 12, 2023	Mar. 31, 2023	Mar. 31, 2022
Sale of common stock			$ 9,109,117	$ 0
Shares of Common Stock			798,182
Fees and expenses			$ 9,109,117
Subsequent Event
Sale of common stock	$ 50,000,000	$ 876,121,000,000
Commission percentage	3%
Shares of Common Stock		374,772
Fees and expenses		$ 27,097