Cover
Cover - shares | 3 Months Ended | |
Sep. 30, 2023 | Nov. 14, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | INNOVATION PHARMACEUTICALS INC. | |
Entity Central Index Key | 0001355250 | |
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, 2023 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-37357 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 30-0565645 | |
Entity Address Address Line 1 | 301 Edgewater Place | |
Entity Address Address Line 2 | Suite 100 | |
Entity Address City Or Town | Wakefield | |
Entity Address State Or Province | MA | |
Entity Address Postal Zip Code | 01880 | |
City Area Code | 978 | |
Local Phone Number | 921-4125 | |
Entity Interactive Data Current | Yes | |
Common Class A [Member] | ||
Document Information Line Items | ||
Entity Common Stock Shares Outstanding | 514,013,755 | |
Common Class B [Member] | ||
Document Information Line Items | ||
Entity Common Stock Shares Outstanding | 4,333,936 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Current Assets: | ||
Cash | $ 864,000 | $ 1,518,000 |
Prepaid expenses and other current assets | 76,000 | 116,000 |
Total Current Assets | 940,000 | 1,634,000 |
Equity investment | 3,742,000 | 3,806,000 |
Other Assets: | ||
Patent costs - net | 1,907,000 | 1,999,000 |
Deferred offering costs | 0 | 0 |
Security deposit | 78,000 | 78,000 |
Total Other Assets | 1,985,000 | 2,077,000 |
Total Assets | 6,667,000 | 7,517,000 |
Current Liabilities: | ||
Accounts payable - (including related party payables of approx. $1,511,000 and $1,511,000, respectively) | 3,021,000 | 2,985,000 |
Accrued expenses - (including related party accruals of approx. $42,000 and $24,000, respectively) | 192,000 | 73,000 |
Accrued salaries and payroll taxes - (including related party accrued salaries of approx. $1,514,000 and $1,613,000, respectively) | 1,587,000 | 1,690,000 |
Operating lease - current liability | 0 | 55,000 |
Convertible note payable - related party | 238,000 | 213,000 |
Accrued dividend - Series B 5% convertible preferred stock | 10,000 | 5,000 |
Total Current Liabilities | 5,048,000 | 5,021,000 |
Other Liabilities: | ||
Series B 5% convertible preferred stock liability at $1,080 stated value; 360 shares and 360 shares issued and outstanding at September 30, 2023 and June 30, 2023 | 457,000 | 457,000 |
Operating lease - long term liability | 0 | 0 |
Total Liabilities | 5,505,000 | 5,478,000 |
Stockholders' Equity | ||
Preferred stock, $0.001 par value, 10,000,000 designated shares, no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 129,569,000 | 129,566,000 |
Accumulated deficit | (126,205,000) | (125,325,000) |
Treasury Stock, at cost (10,874,593 shares as of September 30, 2023 and June 30, 2023) | (2,254,000) | (2,254,000) |
Total Stockholders' Equity | 1,162,000 | 2,039,000 |
Total Liabilities and Stockholders' Equity | 6,667,000 | 7,517,000 |
Common Class B [Member] | ||
Current Liabilities: | ||
Common Stock, value | 1,000 | 1,000 |
Common Class A [Member] | ||
Current Liabilities: | ||
Common Stock, value | $ 51,000 | $ 51,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Related party payables | $ 1,511,000 | $ 1,511,000 |
Related party accruals | 42,000 | 24,000 |
Related party accrued salaries | $ 1,514,000 | $ 1,613,000 |
Series B 5% Preferred Stock, Shares Outstanding | 360 | 360 |
Series B 5% Preferred Stock, Shares issued | 360 | 360 |
Series B 5% convertible preferred stock liability | $ 1,080 | $ 1,080 |
Preferred Stock, Par Value | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Designated | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Treasury Stock Shares | 10,874,593 | 10,874,593 |
Common Class B [Member] | ||
Common Stock, Par Value | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 6,692,473 | 4,333,936 |
Common Stock, Shares Outstanding | 6,692,473 | 4,333,936 |
Common Class A [Member] | ||
Common Stock, Par Value | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 600,000,000 | 600,000,000 |
Common Stock, Shares Issued | 522,529,811 | 514,013,755 |
Common Stock, Shares Outstanding | 522,529,811 | 514,013,755 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||
Revenues | $ 0 | $ 0 |
Operating expenses: | ||
Research and development expenses | 281,000 | 869,000 |
General and administrative expenses | 133,000 | 291,000 |
Officers' payroll and payroll tax expenses | 118,000 | 118,000 |
Professional fees | 270,000 | 104,000 |
Total operating expenses | 802,000 | 1,382,000 |
Other Operating Income and (Loss) | ||
Equity in loss from an investment | (64,000) | (31,000) |
Total Other Operating Income and (Loss) | (64,000) | (31,000) |
Loss from operations | (866,000) | (1,413,000) |
Other expenses | ||
Interest expense - debt | (9,000) | (7,000) |
Interest expense-preferred stock | (5,000) | (8,000) |
Total other expenses | (14,000) | (15,000) |
Loss before provision for income taxes | (880,000) | (1,428,000) |
Provision for income taxes | 0 | 0 |
Net loss | $ (880,000) | $ (1,428,000) |
Net loss per share, basic and diluted | $ 0 | $ 0 |
Basic and Diluted Weighted Average Common Shares Outstanding | 518,347,691 | 503,964,459 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (Unaudited) - USD ($) | Total | Common Stock A Member | Common stock B Member | Additional Paid-In Capital | Accumulated Deficit | Treasury Stock |
Balance, shares at Jun. 30, 2022 | 488,225,673 | 15,641,463 | 10,874,593 | |||
Balance, amount at Jun. 30, 2022 | $ 4,730,000 | $ 49,000 | $ 2,000 | $ 129,090,000 | $ (122,157,000) | $ (2,254,000) |
Offering cost | (59,000) | $ 0 | 0 | (59,000) | 0 | 0 |
Restricted common stock award issued to employee for services, shares | 97,323 | |||||
Restricted common stock award issued to employee for services, amount | 1,000 | $ 0 | 0 | 1,000 | 0 | 0 |
Stock options issued to employee for services | 28,000 | 0 | 0 | 28,000 | 0 | 0 |
Stock options issued to consultants for services | 2,000 | 0 | 0 | 2,000 | 0 | 0 |
Stock options issued to director for services | 147,000 | 0 | 0 | 147,000 | 0 | 0 |
Net loss | (1,428,000) | $ 0 | $ 0 | 0 | (1,428,000) | $ 0 |
Balance, shares at Sep. 30, 2022 | 488,322,996 | 15,641,463 | 10,874,593 | |||
Balance, amount at Sep. 30, 2022 | 3,421,000 | $ 49,000 | $ 2,000 | 129,209,000 | (123,585,000) | $ (2,254,000) |
Balance, shares at Jun. 30, 2023 | 514,013,755 | 4,333,936 | 10,874,593 | |||
Balance, amount at Jun. 30, 2023 | 2,039,000 | $ 51,000 | $ 1,000 | 129,566,000 | (125,325,000) | $ (2,254,000) |
Stock options issued to employee for services | 2,000 | 0 | 0 | 2,000 | 0 | 0 |
Net loss | (880,000) | 0 | 0 | 0 | (880,000) | 0 |
Shares issued to employee for services | 1,000 | $ 0 | $ 0 | 1,000 | 0 | $ 0 |
Balance, shares at Sep. 30, 2023 | 514,013,755 | 4,333,936 | 10,874,593 | |||
Balance, amount at Sep. 30, 2023 | $ 1,162,000 | $ 51,000 | $ 1,000 | $ 129,569,000 | $ (126,205,000) | $ (2,254,000) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (880,000) | $ (1,428,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock based compensation | 3,000 | 178,000 |
Amortization of patent costs | 94,000 | 93,000 |
Equity in loss from an investment | 64,000 | 31,000 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and security deposits | 40,000 | 23,000 |
Accounts payable | 36,000 | 350,000 |
Accrued expenses | 119,000 | (2,000) |
Accrued officers' salaries and payroll taxes | (103,000) | 10,000 |
Accrued dividend | 5,000 | 0 |
Operating lease liability | (55,000) | (46,000) |
Net cash used in operating activities | (677,000) | (791,000) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Patent costs | (2,000) | (4,000) |
Net cash used in investing activities | (2,000) | (4,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Receipts from (Repayment of) note payable to officer | 25,000 | (6,000) |
Dividend paid to Preferred stockholders | 0 | (38,000) |
Net cash provided by financing activities | 25,000 | (44,000) |
NET DECREASE IN CASH | (654,000) | (839,000) |
CASH, BEGINNING OF PERIOD | 1,518,000 | 3,807,000 |
CASH, END OF PERIOD | 864,000 | 2,968,000 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for interest | 0 | 15,000 |
Cash paid for tax | $ 0 | $ 0 |
Basis of Presentation and Natur
Basis of Presentation and Nature of Operations | 3 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation and Nature of Operations | |
Basis of Presentation and Nature of Operations | 1. Basis of Presentation and Nature of Operations Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements of Innovation Pharmaceuticals Inc. have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or the SEC, including the instructions to Form 10-Q and Regulation S-X. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted from these statements pursuant to such rules and regulations and, accordingly, they do not include all the information and notes necessary for comprehensive consolidated financial statements and should be read in conjunction with our audited financial statements for the year ended June 30, 2023, included in our Annual Report on Form 10-K for the year ended June 30, 2023. In the opinion of the management of Innovation Pharmaceuticals Inc., all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the three-month periods have been made. Results for the interim periods presented are not necessarily indicative of the results that might be expected for the entire fiscal year. When used in these notes, the terms “Company,” “Innovation,” “we,” “us” or “our” mean Innovation Pharmaceuticals Inc. Basis of Presentation Innovation Pharmaceuticals Inc. was incorporated on August 1, 2005 in the State of Nevada. Effective June 5, 2017, the Company amended its Articles of Incorporation and changed its name from Cellceutix Corporation to Innovation Pharmaceuticals Inc. On February 15, 2019, the Company formed IPIX Pharma Limited (“IPIX Pharma”), a wholly-owned subsidiary incorporated under the Companies Act 2014 of Ireland. IPIX Pharma is a Private Company Limited by Shares. The Company is a clinical stage biopharmaceutical company. The Company’s common stock is quoted on the OTC Pink, symbol “IPIX.” Basis of Consolidation These condensed consolidated financial statements include the accounts of Innovation Pharmaceuticals Inc., a Nevada corporation, and our wholly-owned subsidiary, IPIX Pharma, an Ireland limited company. All significant intercompany transactions and balances have been eliminated in consolidation. There was no translation gain and loss for the three months ended September 30, 2023 and 2022. Nature of Operations - Overview We are in the business of developing or licensing innovative small molecule therapies. Our strategy is to maximize the value of our drug compound Brilacidin. The Company also acquired a non-controlling interest in BT BeaMedical Technologies Ltd. (“BTL”), formerly known as Squalus Medical Ltd., a private company developing a novel image guided surgical laser platform. We currently own all development and marketing rights to our products, other than the license rights granted to Alfasigma S.p.A. in July 2019 for the development, manufacturing and commercialization of locally-administered Brilacidin for ulcerative proctitis/ulcerative proctosigmoiditis (“UP/UPS”). In order to successfully develop and market our products, we may have to partner with additional companies. Prospective partners may require that we grant them significant development and/or commercialization rights in return for agreeing to share the risk of development and/or commercialization. |
Liquidity Going Concern and Man
Liquidity Going Concern and Managements Plan | 3 Months Ended |
Sep. 30, 2023 | |
Liquidity Going Concern and Managements Plan | |
Liquidity, Going Concern and Management's Plan | 2. Liquidity, Going Concern and Management’s Plan Our financial statements were prepared assuming we will continue as a going concern which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the three months ended September 30, 2023, the Company had a net loss of $0.9 million and negative cash flow from operations of $0.7 million. As of September 30, 2023, the Company has negative working capital of $4.1 million. As of September 30, 2023, the Company’s cash amounted to $0.9 million and current liabilities amounted to $5.0 million. The Company has expended substantial funds on its clinical trials and expects to continue our spending on research and development expenditures, subject to having adequate available funding. We expect to incur further losses in the development of our business and have been dependent on funding operations from inception. These conditions raise substantial doubt about our ability to continue as a going concern. Management’s plans include continuing to finance operations through the private or public placement of debt and/or equity securities, if available, and the reduction of expenditures. However, no assurance can be given at this time as to whether we will be able to achieve these objectives. The financial statements do not include any adjustment relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern. |
Significant Accounting Policies
Significant Accounting Policies and Recent Accounting Pronouncements | 3 Months Ended |
Sep. 30, 2023 | |
Significant Accounting Policies and Recent Accounting Pronouncements | |
Significant Accounting Policies and Recent Accounting Pronouncements | 3. Significant Accounting Policies and Recent Accounting Pronouncements During the period covered in this report, there have been no material changes to the significant accounting policies the Company uses and has explained in its Annual Report on Form 10-K for the fiscal year ended June 30, 2023. The information below is intended only to supplement the disclosure in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions include contract research accruals, recoverability of patent costs and other long-lived assets and amortizable intangible assets, valuation of equity grants and income tax valuation. The Company bases its estimates on historical experience and various other assumptions that management believes to be reasonable under the circumstances. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates. Basic and Diluted Loss per Share Basic and diluted loss per share are computed based on the weighted-average common shares and common share equivalents outstanding during the period. Except with respect to certain voting, conversion and transfer rights and as otherwise expressly provided in the Company’s Articles of Incorporation or required by applicable law, shares of the Company’s Class A common stock and Class B common stock have the same rights and privileges and rank equally, share ratably and are identical in all respects as to all matters. Accordingly, basic and diluted net loss per share are the same for both classes. Common share equivalents consist of stock options, restricted stock, warrants, convertible related party notes payable, and convertible preferred stock. Common share equivalents were excluded from the computation of diluted earnings per share for the three months ended September 30, 2023 and 2022, because their effect was anti-dilutive. Weighted average shares of common stock outstanding used in the calculation of basic and diluted earnings per share were as follows: September 30, 2023 2022 Net loss per share, basic and diluted $ (0.00 ) $ (0.00 ) Weighted average shares outstanding: Class A common stock 514,013,755 488,322,996 Class B common stock 4,333,936 15,641,463 Total weighted average shares outstanding 518,347,691 503,964,459 Antidilutive securities not included: Stock options 7,778,269 8,268,269 Stock options arising from convertible note payable and accrued interest 519,636 508,448 Restricted stock grants — 58,392 Convertible preferred stock 35,571,821 36,000,000 Total 43,869,726 44,835,109 Treasury Stock The Company accounts for treasury stock using the cost method. The 10,874,593 treasury shares include 8,516,056 shares of Class A common stock and 2,358,537 shares of Class B common stock held in treasury, and they were purchased at a total cumulative cost of approximately $2.3 million as of September 30, 2023 and June 30, 2023 (see Note 14. Equity Transactions). Treasury stock, representing shares of the Company’s common stock that have been acquired for payroll tax withholding on vested stock grants and to satisfy the exercise price on vested stock options, is recorded at its acquisition cost and these shares are not considered outstanding. Recent Accounting Pronouncements The FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326). This standard requires a financial asset to be presented at the net amount expected to be collected. The financial assets of the Company in scope of ASU 2016-13 will primarily be accounts receivable. The Company will estimate an allowance for expected credit losses on accounts receivable that result from the inability of customers to make required payments. In estimating the allowance for expected credit losses, consideration will be given to the current aging of receivables, historical experience, and a review for potential bad debts. The Company adopted this guidance in the first quarter of fiscal 2023 and it did not have an impact on its results of operations, financial position, and disclosures. |
Equity Investment
Equity Investment | 3 Months Ended |
Sep. 30, 2023 | |
Equity Investment | |
Equity Investment | 4. Equity Investment BT BeaMedical Technologies Ltd. (formerly known as Squalus Medical Ltd.) On June 9, 2022, the Company entered into a Series A Preferred Share Purchase Agreement (the “Purchase Agreement”) with BT BeaMedical Technologies Ltd. (formerly known as Squalus Medical Ltd.), a company established under the laws of the State of Israel (“BTL”), pursuant to which the Company purchased 55,556 shares of BTL’s Series A Redeemable Preferred Shares (the “Series A Shares”) and a warrant to purchase 27,778 Series A Shares for aggregate consideration of $4,000,000, or approximately $72.00 per Series A Share. Following the closing under the Purchase Agreement, the Company owns approximately 35.7% of BTL’s issued and outstanding equity securities and approximately 41.6% of BTL’s equity securities on a fully diluted basis. The Company also entered into customary investor rights and indemnification agreements with BTL. The Company therefore recorded an equity investment on our September 30, 2023 and June 30, 2023 consolidated balance sheets. The Company’s equity in losses in excess of its investment are accounted for under the equity method and consisted of the following as of September 30, 2023 and June 30, 2023 (rounded in nearest thousand): September 30, June 30, 2023 2023 BT BeaMedical Technologies Ltd. Ownership Interest 35.7 % 35.7 % Carrying Amount Total contributions $ 4,000,000 $ 4,000,000 Less: Share of the loss in investment in BTL (258,000 ) (194,000 ) Equity losses in excess of investment $ 3,742,000 $ 3,806,000 The Company invested $4,000,000 in BTL as of September 30, 2023 and June 30, 2023. The cash balance in BTL at September 30, 2023 and June 30, 2023 was approximately $0.6 million and the short-term time deposits in BTL at September 30, 2023 was approximately $2.4 million and $2.7 million, respectively. During the three months ended September 30, 2023 and 2022, BTL incurred a loss of approximately $179,000 and $86,000, respectively and accordingly, the Company recorded its share of the loss in investment in BTL, in accordance with the provisions in the Purchase Agreement, of approximately $64,000 and $31,000, respectively, in the accompanying condensed consolidated statement of operations. Summarized balance sheet information for the Company’s equity method investee BTL as of September 30, 2023 and June 30, 2023 is presented in the following table (rounded to nearest thousand): September 30, June 30, BT BeaMedical Technologies Ltd. 2023 2023 Assets Cash $ 584,000 $ 575,000 Short term investment 2,442,000 2,694,000 Other current assets 215,000 144,000 Total current assets $ 3,241,000 $ 3,413,000 Long-term assets 149,000 162,000 Total assets $ 3,390,000 $ 3,575,000 Liabilities and equity Current liabilities $ 236,000 $ 230,000 Long-term liabilities 56,000 101,000 Total liabilities $ 292,000 $ 331,000 Equity Equity $ 3,837,000 $ 3,804,000 Accumulated deficits (739,000 ) (560,000 ) Total equity 3,098,000 3,244,000 Total liabilities and equity $ 3,390,000 $ 3,575,000 Summarized income statement information for the Company’s equity method investee BTL is presented in the following table for the three months ended September 30, 2023 and 2022 (rounded to nearest thousand): For the Quarter Ended September 30, BT BeaMedical Technologies Ltd. 2023 2022 Net sales and revenue $ 6,000 $ 6,000 Research and development costs $ 208,000 $ 47,000 Administrative expenses 21,000 63,000 Total operating expense $ 229,000 $ 110,000 Loss from operations $ (223,000 ) $ (104,000 ) Other income (expense) 44,000 18,000 Net loss $ (179,000 ) $ (86,000 ) |
Patents net
Patents net | 3 Months Ended |
Sep. 30, 2023 | |
Patents net | |
Patents, Net | 5. Patents, net Patents, net consisted of the following (rounded to nearest thousand): Useful life (years) September 30, 2023 June 30, 2023 Purchased Patent Rights- Brilacidin and related compounds 14 $ 4,082,000 $ 4,082,000 Purchased Patent Rights-Anti-microbial- surfactants and related compounds 12 144,000 144,000 Patents - Brilacidin and other compounds 17 1,208,000 1,206,000 Total patents cost 5,434,000 5,432,000 Less: Accumulated amortization (3,527,000 ) (3,433,000 ) Patents, net $ 1,907,000 $ 1,999,000 Costs incurred to file patent applications and acquired intangibles are capitalized when the Company believes that there is a high likelihood that the patent will be issued and there will be future economic benefit associated with the patent. The patents are amortized on a straight-line basis over the useful lives of the assets, determined to be 12-17 years from the date of acquisition. All costs associated with abandoned patent applications are expensed. In addition, the Company reviews the carrying value of patents for indicators of impairment on a periodic basis and if it determines that the carrying value is impaired, it values the patent at fair value. In accordance with the provisions of the applicable authoritative guidance, the Company’s long-lived assets and amortizable intangible assets are tested for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. The Company assesses the recoverability of such assets by determining whether their carrying value can be recovered through undiscounted future operating cash flows, including its estimates of revenue driven by assumed market segment share and estimated costs. If impairment is indicated, the Company measures the amount of such impairment by comparing the fair value to the carrying value. The Company recently learned that Alfasigma (as defined below) is considering terminating further work under the License Agreement (as defined below) with the Company (see Note 8 for further information about the License Agreement). If Alfasigma were to terminate the License Agreement or cease further work under the License Agreement, the Company could be required to impair some or all of the patent assets associated with Brilacidin. Amortization expense for the three months ended September 30, 2023 and 2022 was approximately $94,000 and $93,000, respectively. At September 30, 2023, the future amortization period for all patents was approximately 2 years to 16.75 years. Future estimated amortization expenses are approximately $280,000 for the year ending June 30, 2024, $375,000 for the year ending June 30, 2025, $365,000 for the year ending June 30, 2026, $363,000 for the year ending June 30, 2027, $125,000 for the year ending June 30, 2028 and a total of $399,000 for the year ending June 30, 2029 and thereafter. |
Accrued Expenses Related Partie
Accrued Expenses Related Parties and Other | 3 Months Ended |
Sep. 30, 2023 | |
Accrued Expenses Related Parties and Other | |
Accrued Expenses - Related Parties and Other | 6. Accrued Expenses - Related Parties and Other Accrued expenses consisted of the following (rounded to nearest thousand): September 30, 2023 June 30, 2023 Accrued research and development consulting fees $ 150,000 $ 49,000 Accrued rent - related parties (Note 11. Related Party Transactions) 8,000 8,000 Accrued interest - related parties (Note 12. Convertible Note Payable - Related Party) 22,000 16,000 Accrued Directors' fees - related 12,000 — Total $ 192,000 $ 73,000 |
Accrued Salaries and Payroll Ta
Accrued Salaries and Payroll Taxes Related Parties and Other | 3 Months Ended |
Sep. 30, 2023 | |
Accrued Salaries and Payroll Taxes Related Parties and Other | |
Accrued Salaries and Payroll Taxes - Related Parties and Other | 7. Accrued Salaries and Payroll Taxes - Related Parties and Other Accrued salaries and payroll taxes consisted of the following (rounded to nearest thousand): September 30, 2023 June 30, 2023 Accrued salaries - related parties $ 1,443,000 $ 1,543,000 Accrued payroll taxes - related parties 71,000 71,000 Withholding tax - payroll 73,000 76,000 Total $ 1,587,000 $ 1,690,000 |
Exclusive License Agreement and
Exclusive License Agreement and Patent Assignment Agreement | 3 Months Ended |
Sep. 30, 2023 | |
Exclusive License Agreement and Patent Assignment Agreement | |
Exclusive License Agreement and Patent Assignment Agreement | 8. Exclusive License Agreement and Patent Assignment Agreement On July 18, 2019, the Company entered into an Exclusive License Agreement (the “License Agreement”) with Alfasigma S.p.A., a global pharmaceutical company (“Alfasigma”), granting Alfasigma the worldwide right to develop, manufacture and commercialize locally-administered Brilacidin for the treatment of UP/UPS. Under the terms of the License Agreement, Alfasigma made an initial upfront non-refundable payment of $0.4 million to the Company in July, 2019 and will make additional payments of up to $24.0 million to the Company based upon the achievement of certain milestones, including a $1.0 million payment due following commencement of the first Phase 3 clinical trial of Brilacidin for UP/UPS and an additional $1.0 million payment upon the filing of a marketing approval application with the U.S. Food and Drug Administration or the European Medicines Agency. At this time, Alfasigma has completed Phase 1 clinical research with Brilacidin. In addition to the milestones, Alfasigma will pay a royalty to the Company equal to six percent of net sales of Brilacidin for UP/UPS, subject to adjustment as provided in the License Agreement. The Company received an initial upfront non-refundable payment of $0.4 million and reported as revenue in July, 2019 and the Company did not receive any further milestone payment during the three months ended September 30, 2023 and 2022. The Company recently learned that Alfasigma is considering terminating further work under the License Agreement, although as of the date of this report, Alfasigma has not notified the Company of the termination of the License Agreement or a cessation of further work under the License Agreement. On April 13, 2022, the Company entered a Patent Assignment Agreement with Fox Chase Chemical Diversity Center, Inc. (“FCCDC”), pursuant to which the Company assigned the title, rights and interest in and to the applications of certain patents in accordance with an earlier collaborative research agreement related to antifungal drug discovery work to which the Company had rights. On May 3, 2022, the Company received payment of $18,000 from FCCDC based on FCCDC’s third-party license of broad-spectrum anti-fungals and a separate agreement between the Company and FCCDC. On January 18, 2023, the Company was notified by FCCDC that its third-party license with Basilea Pharmaceutica for development of broad-spectrum antifungals was terminated by the licensee. |
Operating Leases
Operating Leases | 3 Months Ended |
Sep. 30, 2023 | |
Operating Leases | |
Operating Leases | 9. Operating Leases Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives. Our variable lease payments primarily consist of maintenance and other operating expenses from our real estate leases. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components. We have elected to account for these lease and non-lease components as a single lease component. We are also electing not to apply the recognition requirements to short-term leases of twelve months or less and instead will recognize lease payments as expense on a straight-line basis over the lease term. The components of lease expense and supplemental cash flow information related to leases for the period are as follows: Three Months Ended September 30, 2023 Lease Cost Operating lease cost (included in general and administrative in the Company’s condensed consolidated statements of operations) $ 1,000 Variable lease cost 3,000 $ 4,000 Other Information Cash paid for amounts included in the measurement of lease liabilities for the three months ended September 30, 2023 $ 55,000 Weighted average remaining lease term – the operating leases ended on September 30, 2023 0 Average discount rate - operating leases 18 % Operating lease cost for the three months ended September 30, 2023 and 2022 was approximately $4,000 and $13,000, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | 10. Commitments and Contingencies Litigation On January 22, 2020, the Company filed a complaint against Cummings Properties, LLC in the Superior Court of the Commonwealth of Massachusetts (C.A. No. 20-77CV00101), seeking, among other things, declaratory relief that the lease terminated in September 2018, as the Company’s prior principal executive offices did not automatically extend for an additional five years, return of the Company’s security deposit, and damages. On August 29, 2023, the trial for this case commenced and as of date of this filing, this trial is ongoing. The Company is currently unable to determine the probability of the trial outcome or reasonably estimate the loss or gain, if any. Contractual Commitments The Company has total non-cancellable contractual minimum commitments of approximately $0.5 million to contract research organizations as of September 30, 2023. Expenses are recognized when services are performed by the contract research organizations. Contingent Liability - Disputed Invoices The Company accrued payroll to Dr. Krishna Menon, ex-President of Research of approximately $1,443,000 for his past services with the Company, and this amount was included in accrued salaries and payroll taxes (see Note 7. Accrued Salaries and Payroll Taxes). As described in Note 11. Related Party Transactions, the Company has a payable to Kard Scientific, Inc. (“KARD”) of approximately $1,486,000 for its research and development expenses and this amount was included in accounts payable. KARD is a company owned by Dr. Menon. Dr. Menon’s employment was terminated with the Company on September 18, 2018, and Dr. Menon resigned from the Company’s Board of Directors on December 11, 2018. Dr. Menon, on behalf of himself and KARD, demanded payment of these amounts in October 2019; however, the Company disputes the underlying basis for these amounts and notified Dr. Menon in November 2019 of the Company’s intent not to pay them. As of September 30, 2023 and June 30, 2023, all of the above disputed invoices were reflected as current liabilities. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions | |
Related Party Transactions | 11. Related Party Transactions Pre-clinical Studies The Company previously engaged KARD to conduct specified pre-clinical studies. The Company did not have an exclusive arrangement with KARD. All work performed by KARD needed prior approval by the executive officers of the Company, and the Company retained all intellectual property resulting from the services by KARD. The Company no longer uses KARD to conduct research study. At September 30, 2023 and June 30, 2023, the accrued research and development expenses payable to KARD was approximately $1,486,000 and this amount was included in accounts payable. Dr. Menon, the Company’s ex-principal shareholder and Director, on behalf of himself and KARD, demanded payment of these amounts in October 2019; however, the Company disputes the underlying basis for these amounts and notified Dr. Menon in November 2019 of the Company’s intent not to pay them. Since September 1, 2013, the Company no longer leases space from KARD. As of September 30, 2023 and June 30, 2023, rent payables to KARD of approximately $8,000, were included in accrued expenses. |
Convertible Note Payable Relate
Convertible Note Payable Related Party | 3 Months Ended |
Sep. 30, 2023 | |
Convertible Note Payable Related Party | |
Convertible Note Payable - Related Party | 12. Convertible Note Payable - Related Party The Ehrlich Promissory Note C is an unsecured demand note with Mr. Ehrlich, the Company’s Chairman and CEO, that originated in 2010, bears 9% simple interest per annum and is convertible into the Company’s Class A common stock at $0.50 per share. On May 8, 2012, the Company did not have the ability to repay the Ehrlich Promissory Note C loan of approximately $2,022,000 and agreed to change the interest rate from 9% simple interest to 10% simple interest. During the quarter ended September 30, 2023, Mr. Ehrlich advanced an additional $25,000 to the Company under the convertible note and during the quarter ended September 30, 2022, the Company repaid $6,000 to Mr. Ehrlich. As of September 30, 2023 and June 30, 2023, the principal balance of this convertible note payable to Mr. Ehrlich was approximately $238,000 and $213,000, respectively. As of September 30, 2023 and June 30, 2023, the balance of accrued interest payable was $22,000 and $16,000, respectively (see Note 6. Accrued Expenses - Related Parties and Other). As of September 30, 2023 and June 30, 2023, the total outstanding balances of principal and interest were approximately $260,000 and $229,000, respectively. |
Equity Incentive Plans and Stoc
Equity Incentive Plans and Stock-Based Compensation | 3 Months Ended |
Sep. 30, 2023 | |
Equity Incentive Plans and Stock-Based Compensation | |
Equity Incentive Plans and Stock-Based Compensation | 13. Equity Incentive Plans and Stock-Based Compensation 2016 Equity Incentive Plan (the “2016 Plan”) On June 30, 2016, the Board of Directors adopted the Company’s 2016 Plan. The 2016 Plan became effective upon adoption by the Board of Directors on June 30, 2016. On February 23, 2020, the Board of Directors approved an amendment to the 2016 Plan to increase the annual limit on the number of awards under such Plan to outside directors from 250,000 to 1,500,000. On October 10, 2021, the Board of Directors approved amendments to the 2016 Plan to increase the number of shares of common stock available for issuance thereunder to 225,000,000 shares and to increase the annual limit on the number of awards under such Plan to outside directors from 1,500,000 to 5,000,000, among other changes. Up to 225,000,000 shares of the Company’s Class A common stock may be issued under the 2016 Plan (subject to adjustment as described in the 2016 Plan). Stock Options There was no new option grant during the three months ended September 30, 2023 and 2022. The components of stock-based compensation expense related to stock options and restricted stock awards included in the Company’s Statements of Operations for the three months ended September 30, 2023 and 2022 are as follows (rounded to nearest thousand): Three months ended September 30, 2023 2022 Research and development expenses $ 3,000 $ 31,000 General and administrative expenses — 147,000 Total stock-based compensation expense $ 3,000 $ 178,000 During the three months ended September 30, 2023 and 2022 On September 11, 2020, the Company issued to Ms. Harness 58,394 shares of the Company’s common stock. The Company also issued 172,987 options to purchase common stock. These stock options with 3 years vesting period were valued at approximately $33,000 and these 58,394 shares of the Company’s common stock were valued at approximately $13,000, based on the closing bid price as quoted on the OTC on September 11, 2020 at $0.22 per share. During the three months ended September 30, 2023, the Company recorded approximately $3,000 of stock-based compensation expense in connection with the foregoing equity awards, including approximately $2,000 of stock option expense and $1,000 of stock awards. During the three months ended September 30, 2022, the Company recorded approximately $4,000 of stock-based compensation expense in connection with the foregoing equity awards, including approximately $3,000 of stock option expense and $1,000 of stock awards. Stock Options Issued and Outstanding The following table summarizes all stock option activity under the Company’s equity incentive plans: Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at June 30, 2023 7,778,269 $ 0.23 6.31 $ — Granted — $ — — — Exercised — $ — — — Forfeited/expired — $ — — — Outstanding at September 30, 2023 7,778,269 $ 0.23 6.05 $ — Exercisable at September 30, 2023 7,778,269 $ 0.23 6.05 $ — Unvested stock options at September 30, 2023 — $ — — $ — Restricted Stock Awards Outstanding The following summarizes our restricted stock activity: Weighted Average Number of Grant Date Shares Fair Value Total unvested shares outstanding at June 30, 2023 19,464 $ 0.22 Total shares granted — $ — Total shares vested — $ — Total shares forfeited (19,464 ) $ 0.22 Total unvested shares outstanding at September 30, 2023 — $ — |
Equity Transactions
Equity Transactions | 3 Months Ended |
Sep. 30, 2023 | |
Equity Transactions | |
Equity Transactions | 14. Equity Transactions Series B-2 5% convertible preferred stock (“2020 Series B-2 5% convertible preferred stock”) On December 4, 2020, the Company entered into a securities purchase agreement (the “Series B-2 Securities Purchase Agreement”) with KIPS Bay Select LP for the sale of an aggregate of 5,089 shares of the Company’s Series B-2 5% convertible preferred stock (the “Series B-2 preferred stock”), for aggregate gross proceeds of approximately $5.0 million. An initial closing for the sale of 3,053 shares of the Series B-2 preferred stock closed on December 9, 2020 for aggregate gross proceeds of approximately $3.0 million, and a second closing for the sale of 2,036 shares of the Series B-2 preferred stock closed on February 8, 2021 for aggregate gross proceeds of approximately $2.0 million. Under the Series B-2 Securities Purchase Agreement, the Company also issued to the investors warrants to purchase up to an additional 10,178 shares of preferred stock. All warrants were exercised in 2020 and 2021. The Series B-2 preferred stock is mandatorily redeemable under certain circumstances and, as such, is presented as a liability on the condensed consolidated balance sheets. The Company has elected to measure the value of its preferred stock using the fair value method with offsetting discounts associated with the fair value allocated to the warrants and for the intrinsic value attributed to the beneficial conversion feature (“BCF”). The fair value of the Series B-2 preferred stock (without the warrants) will be assessed at each subsequent reporting date with changes in fair value recorded in the profit and loss as a separate line item below the “loss from operations” section (See ASC 480-10-35-5). The warrants issued in connection with the Series B-2 preferred stock are deemed to be free standing equity instruments and are recorded in permanent equity under additional paid in capital, based on a relative fair value allocation of proceeds, that is the warrants’ relative fair value to the Series B-2 preferred stock fair value (without the warrants), with an offsetting discount to the Series B-2 preferred stock. Given that the Series B-2 preferred stock is convertible at any time under these features, the underlying warrant discounts were accreted upon issuance and recorded as interest, resulting in no remaining discount to the Series B-2 preferred stock liability after the issuance. The Company recorded the December 9, 2020 issuance of 3,053 shares Series B-2 Preferred Stock at approximately $2.1 million and the underlying Series 1 and Series 2 warrants at approximately $0.9 million in total by allocating the gross proceeds to Series B-2 preferred stock (without the warrants) and warrants based on their relative fair values or direct valuation as appropriate. The Company recorded BCF of approximately $1.8 million associated with the issuance of the 3,053 shares of Series B-2 preferred stock to additional paid-in capital. The Company then recorded interest of approximately $2.7 million for the BCF and warrant discounts as a first day interest given that the Series B-2 convertible preferred shares can be converted at any time to common stock and given no set term. The issuance costs associated with the Series B-2 preferred stock transaction were attributed to the Series B-2 preferred stock (without the warrants) and to the Series 1 and Series 2 warrants based on their relative fair values. The issuance costs attributed to the warrants of approximately $10,000 were reflected as a reduction to additional paid-in capital. The issuances costs associated with the Series B-2 preferred stock liability of $25,000 was recorded immediately as an element of interest cost, which are reflected in interest expense - preferred stock on December 11, 2020. The Company recorded the February 8, 2021 issuance of 2,036 shares Series B-2 Preferred Stock at approximately $1.5 million and the underlying Series 1 and Series 2 warrants at approximately $0.5 million in total by allocating the gross proceeds to Series B-2 preferred stock (without the warrants) and warrants based on their relative fair values or direct valuation as appropriate. The Company recorded BCF of approximately $1.5 million associated with the issuance of the 2,036 shares of Series B-2 preferred stock to additional paid-in capital. The Company then recorded interest of approximately $2.0 million for the BCF and warrant discounts as a first day interest given that the Series B-2 convertible preferred shares can be converted at any time to common stock and given no set term. Underlying Series B-2 preferred stock dividends, paid quarterly, were accrued as interest (given the liability classification of the Series B-2 preferred stock) on a daily basis given fixed dividend terms under the Series B-2 preferred stock. The 5% accrued dividend is reported in interest expense-preferred stock in the condensed consolidated statements of operation. The Company accrued 5% dividends of $5,000 and $8,000 during the quarter ended September 30, 2023 and 2022, respectively. The unpaid accrued dividends of $10,000 and $5,000 were included under current liability as of September 30, 2023 and June 30, 2023, respectively. Terms of the 2020 Series B-2 5% convertible preferred stock The rights and preferences of the preferred stock are set forth in a Certificate of Designation of Preferences, Rights and Limitations of Series B-2 5% Convertible Preferred Stock filed with the Nevada Secretary of State on December 4, 2020 (the “Certificate of Designation”). Each share of preferred stock has an initial stated value of $1,080 and may be converted at any time at the holder’s option into shares of the Company’s common stock at a conversion price equal of the lower of (i) $0.35 until August 15, 2021 and $0.50 thereafter, and (ii) 85% of the lowest volume weighted average price of the Company’s common stock on a trading day during the ten trading days prior to and ending on, and including, the conversion date. The conversion price may be adjusted following certain triggering events and subsequent equity sales and is subject to appropriate adjustment in the event of stock splits, stock dividends, recapitalization or similar events affecting the Company’s common stock. The holders of the preferred stock are limited in the amount of stated value of the preferred stock they can convert on any trading day. The conversion cap limits conversions by the holders to the greater of $75,000 and an amount equal to 30% of the aggregate dollar trading volume of the Company’s common stock for the five trading days immediately preceding, and including, the conversion date. However, the conversion cap will be increased if the trading volume in the first 30 minutes of any trading session exceeds certain trailing average daily volume amounts. In addition, the holders of the preferred stock may not convert shares of preferred stock if, after giving effect to the conversion, a holder together with its affiliates would beneficially own in excess of 9.99% of the outstanding shares of the Company’s common stock. Redemption Rights The Company may elect to redeem the preferred stock for 120% of the aggregate stated value then outstanding, plus all accrued but unpaid dividends and all liquidated damages and other amounts due in respect of the preferred stock. The Company’s right to redeem the preferred stock is contingent upon it having complied with a number of conditions, including compliance with its obligations under the Certificate of Designation. Conversion of 2020 Series B-2 5% convertible preferred stock to common stock During the quarter ended September 30, 2023 and 2022, there was no conversion of 2020 Series B-2 5% convertible preferred stock to common stock. As of September 30, 2023 and June 30, 2023, Series B-2 5% convertible preferred stock liability was approximately $0.5 million. The fair value of the Series B convertible preferred stock is measured in accordance with ASC 820 “Fair Value Measurement,” using option pricing methodologies, incorporating the following inputs: June 30, 2023 Expected dividend yield 5 % Expected stock-price volatility 60 % Risk-free interest rate 2.92 % Stock price $ 0.03 Exercise price $ 982.5 Treasury Stock All treasury stock, representing shares of the Company’s common stock that have been acquired for payroll tax withholding on vested stock grants and to satisfy the exercise price on vested stock options, is recorded at its acquisition cost and these shares are not considered outstanding. As of September 30, 2023 and June 30, 2023, the Company had the total of 10,874,593 treasury shares, representing 8,516,056 shares of Class A common stock and 2,358,537 shares of Class B common stock held in treasury, and they were purchased at a total cumulative cost of approximately $2.3 million as of September 30, 2023 and June 30, 2023. Surrender of Shares On December 29, 2022, Mr. Ehrlich entered into a Share Surrender Agreement with the Company pursuant to which Mr. Ehrlich permanently surrendered all legal right, title, and interest in 11,307,527 shares of Class B common stock to the Company and relinquished all rights in such shares, free and clear of any liens, mortgages, adverse claims, charges, security interests, encumbrances, any interest of any third party, or other restrictions or limitations whatsoever of any kind. Mr. Ehrlich received no consideration from the Company or any other party in connection with the surrender. Mr. Ehrlich effected the Surrender solely for his individual tax planning purposes. These 11,307,527 shares of Class B common stock were retired and returned to Class B common stock on the same day. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Sep. 30, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | 15. Fair Value Measurements We disclose and recognize the fair value of our assets and liabilities using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes three levels of the fair value hierarchy as follows: Level 1 Level 2 Level 3 Our financial instruments consist of cash and cash equivalents, short-term and long-term investments, accounts payable, accrued liabilities and preferred stock liability. At September 30, 2023 and 2022, the carrying values of cash and cash equivalents, accounts payable, and accrued liabilities approximated fair value due to their short-term maturities. The Company has elected to measure its preferred stock using the fair value method. The fair value of the preferred stock is the estimated amount that would be paid to redeem the liability in an orderly transaction between market participants at the measurement date. The Company calculates the fair value of the Series B-2 Preferred stock using a lattice model that takes into consideration the future redemption value on the instrument, which is tied to the Company’s stock price. These valuations are considered to be Level 3 fair value measurements as the significant inputs are unobservable and require significant management judgment or estimation. Considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the Company’s estimates are not necessarily indicative of the amounts that the Company, or holders of the instruments, could realize in a current market exchange. Significant assumptions used in the fair value models include: the estimates of the redemption dates; credit spreads; dividend payments; and the market price of the Company’s common stock. The use of different assumptions and/or estimation methodologies could have a material effect on the estimated fair values. The table below sets forth a reconciliation of the Company’s beginning and ending Level 3 Series B-2 preferred stock liability balance for the quarter ended September 30, 2023 and for the year ended June 30, 2023: FY 2023 Balance, June 30, 2022 $ 786,000 Conversion of Series B-2 preferred stock to common stock (329,000 ) Change in fair value of Series B-2 preferred stock — Balance, June 30, 2023 $ 457,000 Conversion of Series B-2 preferred stock to common stock — Change in fair value of Series B-2 preferred stock — Balance, September 30, 2023 $ 457,000 (1) The 5% accrued dividend is reported in interest expense-preferred stock in the condensed consolidated statements of operations. The Company accrued 5% accrued dividend of $5,000 and $8,000 during the quarter ended September 30, 2023 and 2022, respectively. The unpaid accrued dividends of $10,000 and $5,000 was included under current liability as of September 30, 2023 and June 30, 2023, respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2023 | |
Subsequent Events | |
Subsequent Events | 16. Subsequent Events The Company has evaluated events subsequent to September 30, 2023 through the issuance of these financial statements and determined that there were no additional events requiring disclosure. |
Significant Accounting Polici_2
Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Sep. 30, 2023 | |
Significant Accounting Policies and Recent Accounting Pronouncements | |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions include contract research accruals, recoverability of patent costs and other long-lived assets and amortizable intangible assets, valuation of equity grants and income tax valuation. The Company bases its estimates on historical experience and various other assumptions that management believes to be reasonable under the circumstances. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates. |
Basic and Diluted Loss per Share | Basic and diluted loss per share are computed based on the weighted-average common shares and common share equivalents outstanding during the period. Except with respect to certain voting, conversion and transfer rights and as otherwise expressly provided in the Company’s Articles of Incorporation or required by applicable law, shares of the Company’s Class A common stock and Class B common stock have the same rights and privileges and rank equally, share ratably and are identical in all respects as to all matters. Accordingly, basic and diluted net loss per share are the same for both classes. Common share equivalents consist of stock options, restricted stock, warrants, convertible related party notes payable, and convertible preferred stock. Common share equivalents were excluded from the computation of diluted earnings per share for the three months ended September 30, 2023 and 2022, because their effect was anti-dilutive. Weighted average shares of common stock outstanding used in the calculation of basic and diluted earnings per share were as follows: September 30, 2023 2022 Net loss per share, basic and diluted $ (0.00 ) $ (0.00 ) Weighted average shares outstanding: Class A common stock 514,013,755 488,322,996 Class B common stock 4,333,936 15,641,463 Total weighted average shares outstanding 518,347,691 503,964,459 Antidilutive securities not included: Stock options 7,778,269 8,268,269 Stock options arising from convertible note payable and accrued interest 519,636 508,448 Restricted stock grants — 58,392 Convertible preferred stock 35,571,821 36,000,000 Total 43,869,726 44,835,109 |
Treasury Stock | The Company accounts for treasury stock using the cost method. The 10,874,593 treasury shares include 8,516,056 shares of Class A common stock and 2,358,537 shares of Class B common stock held in treasury, and they were purchased at a total cumulative cost of approximately $2.3 million as of September 30, 2023 and June 30, 2023 (see Note 14. Equity Transactions). Treasury stock, representing shares of the Company’s common stock that have been acquired for payroll tax withholding on vested stock grants and to satisfy the exercise price on vested stock options, is recorded at its acquisition cost and these shares are not considered outstanding. |
Recent Accounting Pronouncements | The FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326). This standard requires a financial asset to be presented at the net amount expected to be collected. The financial assets of the Company in scope of ASU 2016-13 will primarily be accounts receivable. The Company will estimate an allowance for expected credit losses on accounts receivable that result from the inability of customers to make required payments. In estimating the allowance for expected credit losses, consideration will be given to the current aging of receivables, historical experience, and a review for potential bad debts. The Company adopted this guidance in the first quarter of fiscal 2023 and it did not have an impact on its results of operations, financial position, and disclosures. |
Significant Accounting Polici_3
Significant Accounting Policies and Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Significant Accounting Policies and Recent Accounting Pronouncements | |
Schedule of Basic and Diluted Earning Per Share | September 30, 2023 2022 Net loss per share, basic and diluted $ (0.00 ) $ (0.00 ) Weighted average shares outstanding: Class A common stock 514,013,755 488,322,996 Class B common stock 4,333,936 15,641,463 Total weighted average shares outstanding 518,347,691 503,964,459 Antidilutive securities not included: Stock options 7,778,269 8,268,269 Stock options arising from convertible note payable and accrued interest 519,636 508,448 Restricted stock grants — 58,392 Convertible preferred stock 35,571,821 36,000,000 Total 43,869,726 44,835,109 |
Equity Investment (Tables)
Equity Investment (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Equity Investment | |
Schedule of Equity Investments | September 30, June 30, 2023 2023 BT BeaMedical Technologies Ltd. Ownership Interest 35.7 % 35.7 % Carrying Amount Total contributions $ 4,000,000 $ 4,000,000 Less: Share of the loss in investment in BTL (258,000 ) (194,000 ) Equity losses in excess of investment $ 3,742,000 $ 3,806,000 |
Summary of Balance Sheet For the Company's Equity Method Investment | September 30, June 30, BT BeaMedical Technologies Ltd. 2023 2023 Assets Cash $ 584,000 $ 575,000 Short term investment 2,442,000 2,694,000 Other current assets 215,000 144,000 Total current assets $ 3,241,000 $ 3,413,000 Long-term assets 149,000 162,000 Total assets $ 3,390,000 $ 3,575,000 Liabilities and equity Current liabilities $ 236,000 $ 230,000 Long-term liabilities 56,000 101,000 Total liabilities $ 292,000 $ 331,000 Equity Equity $ 3,837,000 $ 3,804,000 Accumulated deficits (739,000 ) (560,000 ) Total equity 3,098,000 3,244,000 Total liabilities and equity $ 3,390,000 $ 3,575,000 |
Summary of Income Statement Information for Equity Method Investment | For the Quarter Ended September 30, BT BeaMedical Technologies Ltd. 2023 2022 Net sales and revenue $ 6,000 $ 6,000 Research and development costs $ 208,000 $ 47,000 Administrative expenses 21,000 63,000 Total operating expense $ 229,000 $ 110,000 Loss from operations $ (223,000 ) $ (104,000 ) Other income (expense) 44,000 18,000 Net loss $ (179,000 ) $ (86,000 ) |
Patents, net (Tables)
Patents, net (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Patents net | |
Schedule of Patents | Useful life (years) September 30, 2023 June 30, 2023 Purchased Patent Rights- Brilacidin and related compounds 14 $ 4,082,000 $ 4,082,000 Purchased Patent Rights-Anti-microbial- surfactants and related compounds 12 144,000 144,000 Patents - Brilacidin and other compounds 17 1,208,000 1,206,000 Total patents cost 5,434,000 5,432,000 Less: Accumulated amortization (3,527,000 ) (3,433,000 ) Patents, net $ 1,907,000 $ 1,999,000 |
Accrued Expenses - Related Part
Accrued Expenses - Related Parties and Other (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Accrued Expenses Related Parties and Other | |
Schedule of Accrued Expenses | September 30, 2023 June 30, 2023 Accrued research and development consulting fees $ 150,000 $ 49,000 Accrued rent - related parties (Note 11. Related Party Transactions) 8,000 8,000 Accrued interest - related parties (Note 12. Convertible Note Payable - Related Party) 22,000 16,000 Accrued Directors' fees - related 12,000 — Total $ 192,000 $ 73,000 |
Accrued Salaries and Payroll _2
Accrued Salaries and Payroll Taxes Related Parties and Other (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Accrued Salaries and Payroll Taxes Related Parties and Other | |
Schedule of Accrued Salaries and Payroll Taxes | September 30, 2023 June 30, 2023 Accrued salaries - related parties $ 1,443,000 $ 1,543,000 Accrued payroll taxes - related parties 71,000 71,000 Withholding tax - payroll 73,000 76,000 Total $ 1,587,000 $ 1,690,000 |
Operating Leases (Tables)
Operating Leases (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Operating Leases | |
Schedule of Components of Lease Expense | Three Months Ended September 30, 2023 Lease Cost Operating lease cost (included in general and administrative in the Company’s condensed consolidated statements of operations) $ 1,000 Variable lease cost 3,000 $ 4,000 Other Information Cash paid for amounts included in the measurement of lease liabilities for the three months ended September 30, 2023 $ 55,000 Weighted average remaining lease term – the operating leases ended on September 30, 2023 0 Average discount rate - operating leases 18 % |
Equity Incentive Plans and St_2
Equity Incentive Plans and Stock-Based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Equity Incentive Plans and Stock-Based Compensation | |
Components of Stock-Based Compensation Expense | Three months ended September 30, 2023 2022 Research and development expenses $ 3,000 $ 31,000 General and administrative expenses — 147,000 Total stock-based compensation expense $ 3,000 $ 178,000 |
Schedule of Stock Option Activity | Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at June 30, 2023 7,778,269 $ 0.23 6.31 $ — Granted — $ — — — Exercised — $ — — — Forfeited/expired — $ — — — Outstanding at September 30, 2023 7,778,269 $ 0.23 6.05 $ — Exercisable at September 30, 2023 7,778,269 $ 0.23 6.05 $ — Unvested stock options at September 30, 2023 — $ — — $ — |
Schedule of Restricted Stock Award Activity | Weighted Average Number of Grant Date Shares Fair Value Total unvested shares outstanding at June 30, 2023 19,464 $ 0.22 Total shares granted — $ — Total shares vested — $ — Total shares forfeited (19,464 ) $ 0.22 Total unvested shares outstanding at September 30, 2023 — $ — |
Equity Transactions (Tables)
Equity Transactions (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Equity Transactions | |
Schedule of Fair Value of Convertible Preferred Stock | June 30, 2023 Expected dividend yield 5 % Expected stock-price volatility 60 % Risk-free interest rate 2.92 % Stock price $ 0.03 Exercise price $ 982.5 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Fair Value Measurements | |
Schedule of reconciliation of the Company's | FY 2023 Balance, June 30, 2022 $ 786,000 Conversion of Series B-2 preferred stock to common stock (329,000 ) Change in fair value of Series B-2 preferred stock — Balance, June 30, 2023 $ 457,000 Conversion of Series B-2 preferred stock to common stock — Change in fair value of Series B-2 preferred stock — Balance, September 30, 2023 $ 457,000 |
Liquidity Going Concern and M_2
Liquidity Going Concern and Managements Plan (Details Narrative) $ in Millions | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
Liquidity Going Concern and Managements Plan | |
Net Loss | $ (0.9) |
Cash flow from operations | (0.7) |
Working Capital | (4.1) |
Cash | 0.9 |
Current Liabilities | $ 5 |
Significant Accounting Polici_4
Significant Accounting Policies and Recent Accounting Pronouncements (Details) - $ / shares | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Net loss per share, basic and diluted | $ 0 | $ 0 |
Total weighted average shares outstanding | 518,347,691 | 503,964,459 |
Stock options | 7,778,269 | 8,268,269 |
Stock options arising from convertible note payable and accrued interest | 519,636 | 508,448 |
Restricted stock grants | 0 | 58,392 |
Convertible preferred stock | 35,571,821 | 36,000,000 |
Total | 43,869,726 | 44,835,109 |
Common Class B [Member] | ||
Total weighted average shares outstanding | 4,333,936 | 15,641,463 |
Common Class A [Member] | ||
Total weighted average shares outstanding | 514,013,755 | 488,322,996 |
Significant Accounting Polici_5
Significant Accounting Policies and Recent Accounting Pronouncements (Details Narrative) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Treasury stock | 10,874,593 | |
Treasury Stocks [Member] | ||
Cost of shares purchased | $ 2,300,000 | $ 2,300,000 |
Common Class B [Member] | ||
Treasury stock | 2,358,537 | |
Common Class A [Member] | ||
Treasury stock | 8,516,056 |
Equity Investment (Details)
Equity Investment (Details) - BT BeaMedical Technologies Limited ("BTL") [Member] - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Ownership interest | 35.70% | 35.70% |
Total contributions | $ 4,000,000 | $ 4,000,000 |
Less: Share of the loss in investment in BTL | (258,000) | (194,000) |
Equity losses in excess of investment | $ 3,742,000 | $ 3,806,000 |
Equity Investment (Details 1)
Equity Investment (Details 1) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | |
Cash | $ 900,000 | |||
Total current assets | $ 1,634,000 | 940,000 | ||
Total assets | 7,517,000 | 6,667,000 | ||
Current liabilities | 5,021,000 | 5,048,000 | ||
Total liabilities | 5,478,000 | 5,505,000 | ||
Accumulated deficits | (125,325,000) | (126,205,000) | ||
Total equity | 2,039,000 | 1,162,000 | $ 3,421,000 | $ 4,730,000 |
Total liabilities and equity | 7,517,000 | 6,667,000 | ||
Research and development costs | 281,000 | 869,000 | ||
Total operating expenses | 802,000 | 1,382,000 | ||
Loss from operations | (866,000) | (1,413,000) | ||
Other income (expense) | 14,000 | 15,000 | ||
Net loss | (880,000) | $ (1,428,000) | ||
BT BeaMedical Technologies Limited ("BTL") [Member] | ||||
Cash | 575,000 | 584,000 | ||
Short term investment | 2,694,000 | 2,442,000 | ||
Other current assets | 144,000 | 215,000 | ||
Total current assets | 3,413,000 | 3,241,000 | ||
Long-term assets | 162,000 | 149,000 | ||
Total assets | 3,575,000 | 3,390,000 | ||
Current liabilities | 230,000 | 236,000 | ||
Long-term liabilities | 101,000 | 56,000 | ||
Total liabilities | 331,000 | 292,000 | ||
Equity | 3,804,000 | 3,837,000 | ||
Accumulated deficits | (560,000) | (739,000) | ||
Total equity | 3,244,000 | 3,098,000 | ||
Total liabilities and equity | 3,575,000 | 3,390,000 | ||
Net sales and revenue | 6,000 | 6,000 | ||
Research and development costs | 47,000 | 208,000 | ||
Administrative expenses | 63,000 | 21,000 | ||
Total operating expenses | 110,000 | 229,000 | ||
Loss from operations | (104,000) | (223,000) | ||
Other income (expense) | 18,000 | 44,000 | ||
Net loss | $ (86,000) | $ (179,000) |
Equity Investment (Details Narr
Equity Investment (Details Narrative) - BT BeaMedical Technologies Limited ("BTL") [Member] - Purchase Agreement [Member] - USD ($) | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Description of Equity Investment | A Shares for aggregate consideration of $4,000,000, or approximately $72.00 per Series A Share. Following the closing under the Purchase Agreement, the Company owns approximately 35.7% of BTL’s issued and outstanding equity securities and approximately 41.6% of BTL’s equity securities on a fully diluted basis | ||
Equity Investment contribution | $ 4,000,000 | ||
Cash balance | 600,000 | $ 600,000 | |
Short-term time deposits | 2,400,000 | $ 2,700,000 | |
Equity in loss from equity investment | 64,000 | $ 31,000 | |
Incurred a loss of BTL | $ 179,000 | $ 86,000 |
Patents net (Details)
Patents net (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Jun. 30, 2023 | |
Total patents cost | $ 5,434,000 | $ 5,432,000 |
Less : Accumulated amortization | (3,527,000) | (3,433,000) |
Total Patents, net | 1,907,000 | 1,999,000 |
Patents One [Member] | ||
Total Patents, gross | $ 4,082,000 | 4,082,000 |
Useful life | 14 years | |
Patents Two [Member] | ||
Total Patents, gross | $ 144,000 | 144,000 |
Useful life | 12 years | |
Patents Three [Member] | ||
Total Patents, gross | $ 1,208,000 | $ 1,206,000 |
Useful life | 17 years |
Patents net (Details Narrative)
Patents net (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Amortization expense | $ 94,000 | $ 93,000 |
Patents [Member] | ||
June 30, 2024 | 280,000 | |
June 30, 2025 | 375,000 | |
June 30, 2026 | 365,000 | |
June 30, 2027 | 363,000 | |
June 30, 2028 | 125,000 | |
June 30, 2029 and Thereafter | $ 399,000 | |
Patents [Member] | Minimum [Member] | IntangibleAssets [Member] | ||
Future Amortization Period | 2 years | |
Estimated remaining useful lives of the assets | 12 years | |
Patents [Member] | Maximum [Member] | IntangibleAssets [Member] | ||
Future Amortization Period | 16 years 9 months | |
Estimated remaining useful lives of the assets | 17 years |
Accrued Expenses Related Part_2
Accrued Expenses Related Parties and Other (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Accrued Expenses Related Parties and Other | ||
Accrued research and development consulting fees | $ 150,000 | $ 49,000 |
Accrued rent - related parties (Note 11. Related Party Transactions) | 8,000 | 8,000 |
Accrued interest - related parties (Note 12. Convertible Note Payable - Related Party) | 22,000 | 16,000 |
Accrued Directors' fees - related | 12,000 | 0 |
Total | $ 192,000 | $ 73,000 |
Accrued Salaries and Payroll _3
Accrued Salaries and Payroll Taxes Related Parties And Other (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Accrued Salaries and Payroll Taxes Related Parties and Other | ||
Accrued Salaries - Related Parties | $ 1,443,000 | $ 1,543,000 |
Accrued Payroll Taxes - Related Parties | 71,000 | 71,000 |
Withholding Tax - Payroll | 73,000 | 76,000 |
Total | $ 1,587,000 | $ 1,690,000 |
Exclusive License Agreement a_2
Exclusive License Agreement and Patent Assignment Agreement (Details Narrative) - License Agreement [Member] - USD ($) | May 03, 2022 | Jul. 18, 2019 |
Non-refundable Payment | $ 400,000 | |
Additional Payments Payable Upon Achievement Of Certain Milestones Under Agreement By Related Party | 24,000,000 | |
Payment Due Following Commencement Of First Phase Iii Clinical Trial Of Brilacidin | 1,000,000 | |
Payment Due Upon Filing Of A Marketing Approval Application | $ 1,000,000 | |
FCCDC's third-party license of broad-spectrum anti-fungals | $ 18,000 |
Operating Leases (Details)
Operating Leases (Details) | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
Lease Cost | |
Operating lease cost (included in general and administrative in the Company's consolidated statements of operations) | $ 1,000 |
Variable lease cost | 3,000 |
Total operating cost | 4,000 |
Cash paid for amounts included in the measurement of lease liabilities for the three months ended September 30, 2022 | $ 55,000 |
Weighted average remaining lease term - operating leases (in years) | 0 years |
Average discount rate - operating leases | 18% |
Operating Leases (Details Narra
Operating Leases (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Leases | ||
Operating lease cost | $ 4,000 | $ 13,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | Sep. 30, 2023 USD ($) |
Contractual commitments | $ 500,000 |
Ex-President of Research [Member] | |
Accrued salaries and payroll taxes | 1,443,000 |
Accounts payable | $ 1,486,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 |
Accrued Expenses | $ 8,000 | $ 8,000 | |
Accounts Payable | 3,021,000 | $ 2,985,000 | |
Clinical Studies [Member] | |||
Accrued Expenses | 8,000 | $ 8,000 | |
Accounts Payable | $ 1,486,000 | $ 1,486,000 |
Convertible Note Payable Rela_2
Convertible Note Payable Related Party (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | May 08, 2012 | |
Total outstanding balance of principal and interest | $ 260,000 | $ 229,000 | ||
Accrued interest - related parties | 22,000 | $ 16,000 | ||
Advance an additional Convertible note | 25,000 | |||
Repaid additional convertible note | 6,000 | |||
Mr. Ehrlich [Member] | ||||
Repayment of note payable to officer | $ 238,000 | $ 213,000 | ||
Ehrlich Promissory Note C [Member] | ||||
Principal balance of demand notes | $ 2,022,000 | |||
Ehrlich Promissory Note C [Member] | Originated In 2010 [Member] | ||||
Interest rate | 9% | |||
Common stock price per share | $ 0.50 | |||
Ehrlich Promissory Note C [Member] | Maximum [Member] | ||||
Interest rate | 10% | |||
Ehrlich Promissory Note C [Member] | Minimum [Member] | ||||
Interest rate | 9% |
Equity Incentive Plans and St_3
Equity Incentive Plans and Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Total Stock-based Compensation Expense | $ 3,000 | $ 178,000 |
General and Administrative Expense [Member] | ||
Total Stock-based Compensation Expense | 3,000 | 31,000 |
Research and Development Expense [Member] | ||
Total Stock-based Compensation Expense | $ 0 | $ 147,000 |
Equity Incentive Plans and St_4
Equity Incentive Plans and Stock-Based Compensation (Details 1) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Exercised | 7,778,269 | 8,268,269 |
Stock Option [Member] | ||
Beginning Balance, Outstanding | 7,778,269 | |
Granted | 0 | |
Exercised | 0 | |
Forfeited/expired | 0 | |
Ending Balance, Outstanding | 7,778,269 | |
Exercisable, outstanding | 7,778,269 | |
Unvested Stock Options | 0 | |
Weighted Average Exercise Price, Beginning Balance | $ 0.23 | |
Weighted Average Exercise Price, Granted | 0 | |
Weighted Average Exercise Price, Exercised | 0 | |
Weighted Average Exercise Price, Forfeited/expired | 0 | |
Weighted Average Exercise Price, Ending Balance | 0.23 | |
Weighted Average Exercise Price, Exercisable | 0.23 | |
Weighted Average Exercise Price, Unvested Stock Options | $ 0 | |
Weighted Average Remaining Contractual Life, Beginnng Balance | 6 years 3 months 21 days | |
Weighted Average Remaining Contractual Life, Ending Balance | 6 years 18 days | |
Weighted Average Remaining Contractual Life, Exercisable | 6 years 18 days | |
Aggregate Intrinsic Value Beginning | $ 0 | |
Aggregate Intrinsic Value Granted | $ 0 | |
Aggregate Intrinsic Value Exercised | $ 0 | |
Aggregate Intrinsic Value Forfeited expired | $ 0 | |
Aggregate Intrinsic Value Ending | $ 0 | |
Aggregate intrinsic value, Excercisable | $ 0 | |
Aggregate Intrinsic Value Unvested Stock Options | $ 0 |
Equity Incentive Plans and St_5
Equity Incentive Plans and Stock-Based Compensation (Details 2) - Restricted Stock [Member] | 3 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Beginning Balance, Outstanding | shares | 19,464 |
Total Shares Granted | shares | 0 |
Total Shares Vested | shares | 0 |
Total Shares Forfeited | shares | (19,464) |
Ending Balance, Outstanding | shares | 0 |
Weighted Average, Beginning Balance | $ / shares | $ 0.22 |
Weighted Average, Total Shares Granted | $ / shares | 0 |
Weighted Average, Total Shares Vested | $ / shares | 0 |
Weighted Average, Total Shares Forfeited | $ / shares | 0.22 |
Weighted Average, Ending Balance | $ / shares | $ 0 |
Equity Incentive Plans and St_6
Equity Incentive Plans and Stock-Based Compensation (Details Narrative) - USD ($) | 3 Months Ended | ||
Sep. 11, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | |
February 23, 2020 [Member] | 2016 Equity Incentive Plan [Member] | |||
Annual Limit Description | the Board of Directors approved an amendment to the 2016 Plan to increase the annual limit on the number of awards under such Plan to outside directors from 250,000 to 1,500,000 | ||
October 10, 2021 [Member] | 2016 Equity Incentive Plan [Member] | |||
Annual Limit Description | the Board of Directors approved amendments to the 2016 Plan to increase the number of shares of common stock available for issuance thereunder to 225,000,000 shares and to increase the annual limit on the number of awards under such Plan to outside directors from 1,500,000 to 5,000,000, among other changes | ||
June 30, 2016 [Member] | 2016 Equity Incentive Plan [Member] | |||
Stock Option Vested Or To Be Vested, Description | Up to 225,000,000 shares of the Company’s Class A common stock may be issued under the 2016 Plan (subject to adjustment as described in the 2016 Plan) | ||
Ms Jane Harness [Member] | On September 11, 2020 [Member] | |||
Stock Issued, Shares | 58,394 | ||
Stock Options To Purchase Shares | 172,987 | ||
Amortization Period Of Restricted Stock | 3 years | ||
Stock Issue, Value | $ 33,000 | ||
Vested Shares | 58,394 | ||
Common Stock Value | $ 13,000 | ||
Stock Option Exercise Price | $ 0.22 | ||
Stock Based Compensation Expenses | $ 3,000 | $ 4,000 | |
Stock Option Expenses | 2,000 | 3,000 | |
Stock Awards | $ 1,000 | $ 1,000 |
Equity Transactions (Details)
Equity Transactions (Details) | 12 Months Ended |
Jun. 30, 2023 $ / shares | |
Equity Transactions | |
Expected dividend yield | 5% |
Expected stock-price volatility | 60% |
Risk-free interest rate | 2.92% |
Stock price | $ 0.03 |
Exercise price | $ 982.5 |
Equity Transaction (Details Nar
Equity Transaction (Details Narrative) - USD ($) | 3 Months Ended | 7 Months Ended | 9 Months Ended | |||||||
Feb. 08, 2021 | Dec. 09, 2020 | Dec. 04, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 29, 2022 | |
Redeem preferred stock | 120% | |||||||||
Accrued Dividends Under Current Liability | $ 10,000 | $ 5,000 | ||||||||
Common Class B [Member] | ||||||||||
Treasury Stock Shares | 2,358,537 | 2,358,537 | ||||||||
Gross Proceeds | $ 500,000 | |||||||||
Common Stock, Shares Issued | 11,307,527 | |||||||||
Cumulative Cost | $ 2,300,000 | 2,300,000 | ||||||||
Common Class B [Member] | October 2, 2020 [Member] | Mr. Ehrlich [Member] | ||||||||||
Sale Of Aggregate Shares | 2,036 | |||||||||
Common Class B [Member] | Mr. Ehrlich [Member] | ||||||||||
Treasury Stock Shares | 10,874,593 | 10,874,593 | ||||||||
Common Stock Held Satisfy Exercise Price | $ 11,307,527 | |||||||||
Common Class A [Member] | ||||||||||
Treasury Stock Shares | 8,516,056 | 8,516,056 | ||||||||
Exercise of 2020 Series B 5% Convertible Preferred Stock Warrants 1 [Member] | Series B Convertible Preferred Stock warrants [Member] | ||||||||||
Gross Proceeds | $ 2,000,000 | |||||||||
Convertible Preferred Stock, Shares | 3,053 | |||||||||
Convertible Preferred Stock, Exercise | 3,053 | |||||||||
Convertible Preferred Stock Liabilities | $ 500,000 | $ 500,000 | ||||||||
Exercise of 2020 Series B 2.5% Convertible Preferred Stock Warrant [Member] | Series B Convertible Preferred Stock warrants [Member] | ||||||||||
Proceeds for convertible preferred stock | $ 5,000,000 | |||||||||
Proceeds for preferred stock liability | $ 5,000,000 | |||||||||
Conversion of 2020 Series B-2 5% convertible preferred stock to common stock [Member] | Series B Convertible Preferred Stock warrants [Member] | ||||||||||
Convertible preferred stockholder | 260 | 3,907 | ||||||||
2020 Series B 5% Convertible Preferred Stock 1 [Member] | Series B Convertible Preferred Stock [Member] | ||||||||||
Accrued Dividends Under Current Liability | $ 5,000 | 8,000 | ||||||||
Unpaid Accrued dividend | $ 10,000 | $ 5,000 | ||||||||
Gross Proceeds | $ 500,000 | $ 900,000 | ||||||||
Warrants Amount | $ 1,500,000 | $ 2,100,000 | ||||||||
Preferred Stock Liability | $ 25,000 | |||||||||
Sale Of Aggregate Shares | 2,036 | 3,053 | 5,089 | |||||||
Warrant Discounts | $ 2,000,000 | $ 2,700,000 | ||||||||
Reduction In Warrant Additional Paid-in Capital | $ 10,000 | |||||||||
Conversion Amount Limits | $ 75,000 | |||||||||
Initial Stated Value,preferred Stock | $ 1,080 | |||||||||
Conversion Percentage | 30% | |||||||||
Beneficially Own In Excess Coversion | 9.99% | |||||||||
2020 Series B 5% Convertible Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | ||||||||||
Gross Proceeds | $ 300,000 | $ 5,000,000 | ||||||||
Sale Of Aggregate Shares | 3,053 | |||||||||
Additional Warrant Purchase | 10,178 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value Measurements | ||
Beginning Balance | $ 457,000 | $ 786,000 |
Conversion of Series B-2 preferred stock to common stock | 0 | (329,000) |
Change in fair value of Series B-2 preferred stock | 0 | 0 |
Ending Balance | $ 457,000 | $ 457,000 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value Measurements | ||
Accrued Dividends Under Current Liability | $ 10,000 | $ 5,000 |
Accrued dividend percentage rate | 5% | |
Accrued dividend | $ 5,000 | $ 8,000 |