Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Oct. 13, 2022 | Dec. 31, 2021 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2022 | ||
Entity File Number | 001-36081 | ||
Entity Registrant Name | NANOVIRICIDES, INC. | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 76-0674577 | ||
Entity Address, Address Line One | 1 CONTROLS DRIVE | ||
Entity Address, City or Town | SHELTON | ||
Entity Address, State or Province | CT | ||
Entity Address, Postal Zip Code | 06484 | ||
City Area Code | 203 | ||
Local Phone Number | 937-6137 | ||
Title of 12(b) Security | COMMON STOCK, PAR VALUE $0.001 PER SHARE | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 11,592,000 | ||
Entity Public Float | $ 40,756,000 | ||
Entity Central Index Key | 0001379006 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Trading Symbol | NNVC | ||
Document Transition Report | false | ||
Auditor Name | EISNERAMPER LLP | ||
Auditor Firm ID | 274 | ||
Auditor Location | Iselin, New Jersey |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 14,066,359 | $ 20,516,677 |
Prepaid expenses | 350,021 | 307,102 |
Total current assets | 14,416,380 | 20,823,779 |
PROPERTY AND EQUIPMENT | ||
Property and equipment | 14,658,014 | 14,333,666 |
Accumulated depreciation | (5,963,820) | (5,248,765) |
Property and equipment, net | 8,694,194 | 9,084,901 |
TRADEMARK AND PATENTS | ||
Trademark and patents | 458,954 | 458,954 |
Accumulated amortization | (117,106) | (108,836) |
Trademark and patents, net | 341,848 | 350,118 |
OTHER ASSETS | ||
Security deposits | 3,515 | 3,515 |
Service agreements | 38,925 | 0 |
Other assets | 42,440 | 3,515 |
Total assets | 23,494,862 | 30,262,313 |
CURRENT LIABILITIES: | ||
Accounts payable | 57,960 | 200,016 |
Accounts payable - related party | 214,397 | 31,539 |
Loan payable | 94,788 | 95,306 |
Accrued expenses | 45,692 | 24,285 |
Total current liabilities | 412,837 | 351,146 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY: | ||
Common stock, $0.001 par value; 150,000,000 shares authorized, 11,592,173 and 11,515,170 shares issued and outstanding at June 30, 2022 and 2021, respectively | 11,592 | 11,515 |
Additional paid-in capital | 145,562,124 | 144,284,593 |
Accumulated deficit | (122,492,176) | (114,385,313) |
Total stockholders' equity | 23,082,025 | 29,911,167 |
Total liabilities and stockholders' equity | 23,494,862 | 30,262,313 |
Series A Convertible Preferred Stock | ||
STOCKHOLDERS' EQUITY: | ||
Series A convertible preferred stock, $0.001 par value, 10,000,000 shares designated, 484,582 and 371,490 shares issued and outstanding, at June 30, 2022 and 2021, respectively | $ 485 | $ 372 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Jun. 30, 2021 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 11,592,173 | 11,515,170 |
Common stock, shares, outstanding | 11,592,173 | 11,515,170 |
Series A Convertible Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 484,582 | 371,490 |
Preferred stock, shares outstanding | 484,582 | 371,490 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
OPERATING EXPENSES | ||
Research and development | $ 5,784,862 | $ 6,114,541 |
General and administrative | 2,328,737 | 2,629,565 |
Total operating expenses | 8,113,599 | 8,744,106 |
LOSS FROM OPERATIONS | (8,113,599) | (8,744,106) |
OTHER INCOME (EXPENSE): | ||
Interest income | 11,859 | 9,348 |
Interest expense | (5,123) | (85,405) |
Loss on disposal of property and equipment | 0 | (2,026) |
Other (expense) income, net | 6,736 | (78,083) |
LOSS BEFORE INCOME TAX PROVISION | (8,106,863) | (8,822,189) |
NET LOSS | $ (8,106,863) | $ (8,822,189) |
Weighted average common shares | ||
Net loss per common share- basic | $ (0.70) | $ (0.81) |
Net loss per common share- diluted | $ (0.70) | $ (0.81) |
Weighted average common shares - basic | 11,534,698 | 10,900,955 |
Weighted average common shares - diluted | 11,534,698 | 10,900,955 |
Statement of Changes in Stockho
Statement of Changes in Stockholders' Equity - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Jun. 30, 2020 | $ 369 | $ 9,083 | $ 127,311,634 | $ (105,563,124) | $ 21,757,962 |
Balance (in shares) at Jun. 30, 2020 | 368,602 | 9,083,414 | |||
Series A preferred stock issued for employee stock compensation | $ 3 | $ 0 | 226,303 | 0 | 226,306 |
Series A preferred stock issued for employee stock compensation (in shares) | 2,888 | 0 | |||
Net proceeds from issuance of common stock in connection with equity financings | $ 0 | $ 2,390 | 16,561,307 | 0 | 16,563,697 |
Net proceeds from issuance of common stock in connection with equity financings (in shares) | 0 | 2,389,584 | |||
Common stock issued for consulting and legal services rendered | $ 0 | $ 25 | 107,975 | 0 | 108,000 |
Common stock issued for consulting and legal services rendered (in shares) | 0 | 25,434 | |||
Warrants issued to Scientific Advisory Board | $ 0 | $ 0 | 6,103 | 0 | 6,103 |
Common stock issued for employee compensation | $ 0 | $ 4 | 15,034 | 0 | 15,038 |
Common stock issued for employee compensation (in shares) | 0 | 3,572 | |||
Common stock issued for Directors fees | $ 0 | $ 13 | 56,237 | 0 | 56,250 |
Common stock issued for Directors fees (in shares) | 0 | 13,166 | |||
Net loss | $ 0 | $ 0 | 0 | (8,822,189) | (8,822,189) |
Balance at Jun. 30, 2021 | $ 372 | $ 11,515 | 144,284,593 | (114,385,313) | 29,911,167 |
Balance (in shares) at Jun. 30, 2021 | 371,490 | 11,515,170 | |||
Series A preferred stock issued for employee stock compensation | $ 13 | $ 0 | 135,387 | 0 | 135,400 |
Series A preferred stock issued for employee stock compensation (in shares) | 13,092 | 0 | |||
Series A preferred stock issued for license agreement | $ 100 | 934,988 | 935,088 | ||
Series A Preferred stock issued for license agreement (in shares) | 100,000 | ||||
Common stock issued for consulting and legal services rendered | $ 0 | $ 39 | 107,961 | 0 | 108,000 |
Common stock issued for consulting and legal services rendered (in shares) | 0 | 38,863 | |||
Warrants issued to Scientific Advisory Board | $ 0 | $ 0 | 4,215 | 0 | 4,215 |
Common stock issued for employee compensation | $ 0 | $ 3 | 6,765 | 0 | 6,768 |
Common stock issued for employee compensation (in shares) | 0 | 3,572 | |||
Common stock issued for Directors fees | $ 0 | $ 18 | 52,482 | 0 | 52,500 |
Common stock issued for Directors fees (in shares) | 0 | 17,705 | |||
Common stock issued for professional services | $ 17 | 35,733 | 35,750 | ||
Common stock issued for professional services (in shares) | 16,863 | ||||
Net loss | $ 0 | $ 0 | 0 | (8,106,863) | (8,106,863) |
Balance at Jun. 30, 2022 | $ 485 | $ 11,592 | $ 145,562,124 | $ (122,492,176) | $ 23,082,025 |
Balance (in shares) at Jun. 30, 2022 | 484,582 | 11,592,173 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (8,106,863) | $ (8,822,189) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Preferred shares issued as compensation | 135,400 | 226,306 |
Preferred shares issued pursuant to license agreement | 935,088 | 0 |
Common shares issued as compensation and for services | 203,018 | 179,288 |
Warrants granted to Scientific Advisory Board | 4,215 | 6,103 |
Depreciation | 715,055 | 696,268 |
Amortization of loan origination fees | 0 | 18,013 |
Amortization | 8,270 | 8,270 |
Loss on disposal of property and equipment | 0 | 2,026 |
Write-off of deferred financing costs | 0 | 12,190 |
Changes in operating assets and liabilities: | ||
Prepaid expenses | 191,279 | 205,436 |
Other long term assets | (38,925) | 10,158 |
Accounts payable | (142,056) | (180,711) |
Accounts payable - related parties | 182,858 | (530,041) |
Accrued expenses | 21,407 | (44,953) |
NET CASH USED IN OPERATING ACTIVITIES | (5,891,254) | (8,213,836) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (324,348) | (238,765) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net proceeds from issuance of common stock and warrants | 0 | 16,563,697 |
Payment of note payable- related party | 0 | (1,100,000) |
Payment of loan payable | (234,716) | (203,013) |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (234,716) | 15,260,684 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (6,450,318) | 6,808,083 |
Cash and cash equivalents at beginning of period | 20,516,677 | 13,708,594 |
Cash and cash equivalents at end of period | 14,066,359 | 20,516,677 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ||
Interest paid | 5,123 | 4,858 |
Income tax paid | 0 | 0 |
NON CASH FINANCING AND INVESTING ACTIVITIES: | ||
Directors and Officers Insurance financed through loan | $ 234,198 | $ 235,476 |
Organization and Nature of Busi
Organization and Nature of Business | 12 Months Ended |
Jun. 30, 2022 | |
Organization and Nature of Business | |
Organization and Nature of Business | Note 1 – Organization and Nature of Business NanoViricides, Inc. (the “Company”) is a nano-biopharmaceutical research and development company specializing in the discovery, development, and commercialization of drugs to combat viral infections using its unique and novel nanomedicines technology. NanoViricides is also unique in the bio-pharma field in that it possesses its own state of the art facilities for the design, synthesis, analysis and characterization of the nanomedicines that we develop, as well as for production scale-up, and c-GMP-like production in quantities needed for human clinical trials, where our design, development, and production work is performed. The biological studies such as the effectiveness, safety, bio-distribution and Pharmacokinetics/Pharmacodynamics on our drug candidates are performed by external collaborators and contract organizations. The Company has several drugs in various stages of early development. COVID-19 has become our lead drug program due to the necessity of responding to the pandemic. The Company has a clinical lead candidate NV-CoV-2 for the treatment of SARS-CoV-2 infection (COVID-19 disease) that has shown excellent effectiveness and safety in pre-clinical studies. IND-enabling studies of NV-CoV-2 have been completed. The Company is working on IND writing and engaging a Clinical Trials Clinical Research Organization in pursuit of Phase I/II human clinical trials of this drug. The Company is also working on performing clinical trials of this drug outside the USA. The Company began development of a drug to treat COVID-19 patients just as the cases of the novel disease were being reported from China. The Company cannot provide a timeline at this point because of external dependencies in the filing of regulatory applications, their approval(s) and beginning of clinical trials. As of June 30, 2022, there is only one antiviral drug (remdesivir) approved, and two non-antibody antiviral drugs (Paxlovid, Pfizer and Molnupiravir, Merck) given Emergency Use Authorization (EUA) by the FDA. Several of previously approved antibody therapies have lost efficacy and their EUAs have been revoked, as the virus mutated and new variants came in the field, as previously predicted by the Company. The antibodies that remain under EUA are expected to lose effectiveness as the virus continues to mutate and new escape variants take over. All of these drug approvals are restricted to specific population subsets, and there is no drug that is generally approved for treatment of COVID-19, particularly for patients with no co-morbidities and not at risk of hospitalization (https://www.fda.gov/drugs/emergency-preparedness-drugs/coronavirus-covid-19-drugs). In addition, there are at least three vaccines licensed in the USA and several more are in use internationally. Internationally, virus variants have continued to emerge with resistance to drugs and vaccines. Scientists believe it is only a matter of time before escape variants against existing antibodies and vaccines, including the newly introduced Omicron/Original Strain bi-valent vaccines, and therapeutics become commonplace. Thus there is an unmet need that the Company’s broad-spectrum, pan-coronavirus drug NV-CoV-2 is expected to fulfill for therapeutics that the virus would not escape by mutations. Additionally, specific populations such as immune-compromised persons, HIV-positive persons, and others would require therapeutics even if they are fully vaccinated, as the weak immune system in these populations limits the ability of vaccines to protect from COVID-19 infection and disease. In response to the recent Monkeypox virus (MPXV) epidemic, the Company has begun a limited drug development program to treat MPXV patients. At present, while it appears that this epidemic is quieting down, experts expect that this virus will become endemic in the Western world, as it is in the African subcontinent (https://www.cdc.gov/poxvirus/monkeypox/cases-data/technical-report/report-3.html#dynamics). A vaccine against smallpox appears to have substantial effectiveness in protecting vaccinated persons from MPXV infection. The only currently available drug, tecovirimat, approved for smallpox, has a low escape barrier for virus mutations, and has other limitations on its use. Thus there remains an urgent need for broad-spectrum drugs that can treat MPXV, smallpox, and other poxviruses. Additionally, in response to the ongoing pediatric “acute flaccid myelitis” (AFM, a disease that can lead to paralysis) cases that appear to be on an uptick, the Company has initiated a limited broad-spectrum drug development program for the treatment of Enterovirus D68 (EV68), the cause of AFM, and potentially other enteroviruses including the poliovirus. Cases of polio have begun to emerge in the United States. Apparently due to loss of “herd immunity” as the poliovirus immunizations in childhood have dropped, the cases are caused by what is believed to a be a revertant of the attenuated strain of poliovirus that is used for vaccination in certain underdeveloped countries. The Company intends to run both MPXV and EVD68 programs by initially evaluating the Company’s existing drug candidate library for effectiveness. If effective existing drug candidates are found, the Company intends to undertake additional work as well as seek additional financing, preferably via non-dilutive funding sources. The Company plans on re-engaging our other lead antiviral program against herpes viruses, i.e. the HerpeCide ™ ™ The Company’s drugs are based on several patents, patent applications, provisional patent applications, and other proprietary intellectual property held by TheraCour Pharma, Inc. (“TheraCour”), to which the Company has broad, exclusive licenses. The first license agreement the Company executed with TheraCour on September 1, 2005 (“Exclusive License Agreement”), gave the Company an exclusive, worldwide license for the treatment of the following human viral diseases: Human Immunodeficiency Virus (HIV/AIDS), Hepatitis B Virus (HBV), Hepatitis C Virus (HCV), Herpes Simplex Virus (HSV), Influenza and Asian Bird Flu Virus. On February 15, 2010, the Company executed an Additional Agreement (“Additional License Agreement”) with TheraCour. Pursuant to the Additional License Agreement, the Company was granted exclusive licenses for technologies, developed by TheraCour, for the development of drug candidates for the treatment of Dengue viruses, Ebola/Marburg viruses, Japanese Encephalitis, viruses causing viral Conjunctivitis (a disease of the eye) and Ocular Herpes. In addition, on November 1, 2019, the Company entered into a world-wide, exclusive, sub-licensable, license (“VZV License Agreement”) to use, promote, offer for sale, import, export, sell and distribute drugs that treat VZV infections, using TheraCour’s proprietary as well as patented technology and intellectual property. The discovery of ligands and polymer materials as well as formulations, the chemistry and chemical characterization, as well as process development and related work will be performed by TheraCour under the same compensation terms as prior agreements between the parties, with no duplication of costs allowed. Upon commercialization, NanoViricides will pay 15% of net sales to TheraCour, as defined in the agreement. The Company was not required to make any upfront payments to TheraCour and agreed to the following milestone payments to TheraCour; the issuance of 75,000 shares of the Company’s Series A preferred stock upon the grant of an IND Application; $1,500,000 in cash upon completion of Phase I Clinical Trials; $2,500,000 in cash upon completion of Phase II clinical trials; and $5,000,000 in cash upon completion of Phase III clinical trials. On September 9, 2021, the Company entered into a world-wide, exclusive, sub-licensable, license (“Covid-19 License Agreement”) to use, promote, offer for sale, import, export, sell and distribute drugs that treat COVID-19 infections, using TheraCour’s proprietary as well as patented technology and intellectual property. The discovery of ligands and polymer materials as well as formulations, the chemistry and chemical characterization, as well as process development and related work will be performed by TheraCour under the same compensation terms as prior agreements between the parties, with no duplication of costs allowed. Upon commercialization, NanoViricides will pay 15% of net sales to TheraCour, as defined in the agreement. The Company was not required to make any upfront cash payments to TheraCour and agreed to the following milestone payments to TheraCour: (i) the issuance of 100,000 shares of the Company’s Series A preferred stock within 30 days upon execution of this agreement; (ii) the issuance of 50,000 shares of the Company’s Series A preferred stock upon the approval of the Company’s IND Application or its equivalent by a competent regulatory authority; (iii) $1,500,000 upon initiation of Phase I clinical trials, or its equivalent, for at least one licensed product within-the field on, or before, three (3) months from the date of the authority’s acceptance of the IND, or its equivalent; (iv) $2,000,000 in cash upon completion of Phase 1 clinical trials; (v) $2,500,000 in cash upon completion of Phase IIA clinical trials, or, its equivalent; (vi) the issuance of 100,000 shares of the Company’s Series A preferred stock upon the initiation of Phase 3 clinical trials, or, its equivalent, for at least one licensed product within the field; and (vii) $5,000,000 in cash, or 500,000 shares of the Company’s Series A preferred stock upon completion of Phase III clinical trials, or its equivalent. Upon commercialization, NanoViricides will pay 15% of net sales to TheraCour, as defined in the agreement. At present the Company does not hold a license for monkeypox therapeutics. As with the Company’s standard policy, if the exploratory work commissioned by the Company leads to potentially effective candidates, and if the Company chooses to further engage in commercial development of the same, then the Company will perform the activities required to obtain such a license. TheraCour has not denied any licenses to NanoViricides to date. |
Liquidity
Liquidity | 12 Months Ended |
Jun. 30, 2022 | |
Liquidity | |
Liquidity | Note 2 – Liquidity The Company’s financial statements have been prepared assuming that it will continue as a going concern, which contemplates continuity of operations, realization of assets and liquidation of liabilities in the normal course of business. As reflected in the financial statements, the Company has an accumulated deficit at June 30, 2022 of approximately $122.5 million and a net loss of approximately $8.1 million and net cash used in operating activities of approximately $5.9 million for the fiscal year then ended. In addition, the Company has not generated any revenues and no revenues are anticipated in the foreseeable future. Since May 2005, the Company has been engaged exclusively in research and development activities focused on developing targeted antiviral drugs. The Company has not yet commenced any product commercialization. Such losses are expected to continue for the foreseeable future and until such time, if ever, as the Company is able to attain sales levels sufficient to support its operations. There can be no assurance that the Company will achieve or maintain profitability in the future. As of June 30, 2022, the Company had available cash and cash equivalents of approximately $14.1 million. Since the onset of the COVID-19 pandemic, the Company has focused its efforts primarily on a single lead program to minimize cost outlays, namely, taking the COVID-19 drug candidate against SARS-CoV-2 into human clinical trials. The prior lead program for a shingles drug will follow the COVID-19 drug program. On July 31, 2020, the Company entered into an At The Market Issuance Sales Agreement (the “Sales Agreement”) with B. Riley Securities, Inc. and Kingswood Capital Markets, a division of Benchmark Investments, Inc. (each a “Sales Agent” and collectively, the “Sales Agents”), pursuant to which the Company may offer and sell, from time to time, through or to the Sales Agents, shares of common stock (the “Placement Shares”), having an aggregate offering price of up to $50 million (the “ATM Offering”). Sales pursuant to the Sales Agreement will be made only upon instructions by the Company to the Sales Agents, and the Company cannot provide any assurances that it will issue any shares pursuant to the Sales Agreement. Actual sales will depend on a variety of factors to be determined by the Company from time to time, including (among others) market conditions, the trading price of the Company’s common stock, capital needs and determinations by the Company of the appropriate sources of funding for the Company. The Company is not obligated to make any sales of common stock under the Sales Agreement and the Company cannot provide any assurances that it will issue any shares pursuant to the Sales Agreement. The Company will pay a commission rate of up to 3.5% of the gross sales price per share sold and agreed to reimburse the Sales Agents for certain specified expenses, including the fees and disbursements of its legal counsel in an amount not to exceed $50,000 and have agreed to reimburse the Sales Agents an amount not to exceed $2,500 per quarter during the term of the Sales Agreement for legal fees to be incurred by the Sales Agents. The Company has also agreed pursuant to the Sales Agreement to provide each Sales Agent with customary indemnification and contribution rights. On March 2, 2021 the Company sold 814,242 shares of common stock at an average price of $7.83 under the Sales Agreement. The net proceeds to the Company from the offering was approximately $6.1 million after deducting underwriting discounts and commissions and other offering expenses. The Company believes that it has several important milestones that it will be achieving in the ensuing year. Management believes that as it achieves these milestones, the Company’s ability to raise additional funds in the public markets would be enhanced. The Company has not experienced a direct financial adverse impact of the effects of the Coronavirus (COVID-19) pandemic. However, the pandemic required the Company to reorganize its priorities, because of the impact on the ability to conduct antiviral drug trials for the Company’s then lead program for Shingles drug treatment. While clinical trials were in general adversely affected, the ability to enroll patients into the shingles antiviral drug clinical trial with the desired inclusion criteria became limited due to the widespread coronavirus infection. The shingles clinical trial design and conduct would also become more complex The Company pivoted successfully into rapidly developing a drug to treat SARS-CoV-2 infections, since early days of the pandemic. Two of the Company’s novel drug candidates, NV-CoV-2 and NV-CoV-2-R have reached human clinical readiness status. Of these, the IND-enabling GLP and non-GLP safety/toxicology studies in animal models as well as pre-clinical efficacy studies have been completed for the novel drug candidate NV-CoV-2. The Company is working on IND writing and engaging a Clinical Trials Clinical Research Organization in pursuit of Phase I/II human clinical trials of this drug. The Company is also working on performing clinical trials of this drug outside the USA. Management believes that the Company’s existing resources will be sufficient to fund the Company’s planned operations and expenditures through October 13, 2023. However, the Company cannot provide assurance that its plans will not change or that changed circumstances will not result in the depletion of its capital resources more rapidly than it currently anticipates. The Company will need to raise additional capital to fund its long-term operations and research and development plans including human clinical trials for its various drug candidates until it generates revenue which reaches a level sufficient to provide self-sustaining cash flows. The accompanying financial statements do not include any adjustments that may result from the outcome of such unidentified uncertainties. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 3 – Summary of Significant Accounting Policies Basis of Presentation The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include all adjustments necessary for the fair presentation of the Company’s financial position for the periods presented. Net Loss per Common Share Basic net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through stock options, warrants, and convertible preferred stock. The following table shows the number of potentially outstanding dilutive common shares excluded from the diluted net loss per common share calculation, as their effect were anti-dilutive: Potentially Outstanding Dilutive Common Shares For the Years Ended June 30, 2022 June 30, 2021 Warrants 9,146 9,146 Options — 5,000 Total 9,146 14,416 The Company has 484,582 and 371,490 shares of Series A preferred stock outstanding as of June 30, 2022 and 2021, respectively. Only in the event of a “change of control” of the Company, each Series A preferred share is convertible to 3.5 shares of its new common stock. A “change of control” is defined as an event in which the Company’s shareholders become 60% or less owners of a new entity as a result of a change of ownership, merger or acquisition of the Company or the Company’s intellectual property. In the absence of a change of control event, the Series A preferred stock is not convertible into common stock, and does not carry any dividend rights or any other financial effects. At June 30, 2022 and 2021 the number of potentially dilutive shares of the Company’s common stock into which these Series A preferred shares can be converted into is 1,696,037 and 1,300,215, respectively, and is not included in diluted earnings per share since the shares are contingently convertible only upon a change of control. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances. The amounts of assets and liabilities reported in the Company’s balance sheet and the amounts of expenses reported for each of the periods presented are affected by estimates and assumptions, which are used for but not limited to, accounting for share-based compensation and accounting for income taxes. Actual results could differ from those estimates. Fair Value of Financial Instruments Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value for applicable assets and liabilities, the Company considers the principal or most advantageous market in which we would transact and we consider assumptions market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. This guidance also establishes a fair value hierarchy to prioritize inputs used in measuring fair value as follows: ● Level 1: Observable inputs such as quoted prices in active markets; ● Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and ● Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets and would be charged to earnings. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. The Company has not recorded an impairment charge for the years ended June 30, 2022 and 2021. Cash and Cash Equivalents The Company considers all highly liquid instruments with original maturities of three months or less to be cash equivalents. Property and Equipment Property and equipment is stated at cost and depreciated over the estimated useful lives of the assets, using the straight-line method. The Company generally assigns useful lives of thirty years for assets classified as GMP facility, fifteen years for assets classified as furniture and fixtures, ten years for assets classified as lab equipment, and five years for assets classified as office equipment. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the statements of operations. Trademarks and Patents The Company amortizes the costs of trademarks and patents on a straight-line basis over their estimated useful lives, the terms of the exclusive licenses and/or agreements, or the terms of legal lives of the patents, whichever is shorter. Upon becoming fully amortized, the related cost and accumulated amortization are removed from the accounts. Research and Development Research and development expenses consist primarily of costs associated with the preclinical and/ or clinical trials of drug candidates, compensation and other expenses for research and development, personnel, supplies and development materials, costs for consultants and related contract research and facility costs. Expenditures relating to research and development are expensed as incurred. Stock-Based Compensation The Company follows the provisions of ASC 718 – “Stock Compensation”, which requires the measurement of compensation expense for all shared-based payment awards made to employees, non-employee directors, and non-employees, including employee stock options. Stock-based compensation expense is based on the grant date fair value estimated in accordance with the provisions of ASC 718 and is generally recognized as an expense over the requisite service period, net of forfeitures. The fair value of common stock issued as employee and non-employee compensation is the average of the open and close share price on the date the common shares are issued. The Series A preferred shares are not traded in any market. The assumptions used to determine the fair value of the Series A preferred shares issued as employee and non-employee compensation are presented in Note 10 to the financial statements. The fair value of each option award is estimated on the date of grant using a Black-Scholes option-pricing valuation model. The ranges of assumptions for inputs are as follows: ● Expected term of share options and similar instruments: The expected term of share options and similar instruments represents the period of time the options and similar instruments are expected to be outstanding taking into consideration the contractual term of the instruments and employees’ expected exercise and post-vesting employment termination behavior into the fair value of the instruments. The Company uses the simplified method to calculate expected term of share options and similar instruments, as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. ● Expected volatility of the Company’s shares and the method used to estimate it: Expected volatility is based on the average historical volatility of the Company’s common stock over the expected term of the option. ● Expected annual rate of quarterly dividends: The expected dividend yield is based on the Company’s current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the option and similar instruments. ● Risk-free rate(s): The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the expected term of the option and similar instruments. The Company’s policy is to recognize compensation cost for awards with only service conditions and a graded vesting schedule on a straight-line basis over the requisite service period for the entire award. Income Tax Provision The Company uses the asset and liability method of accounting for deferred income taxes. Deferred income taxes are measured by applying enacted statutory rates to net operating loss carryforwards and to the differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets are reduced, if necessary, by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company recognizes uncertainty in income taxes in the financial statements using a recognition threshold and measurement attribute of a tax position taken or expected to be taken in a tax return. The Company applies the “more-likely-than-not” recognition threshold to all tax positions, which resulted in no unrecognized tax benefits as of June 30, 2022 and 2021. The Company has opted to classify interest and penalties that would accrue, if any, according to the provisions of relevant tax law as general and administrative expenses, in the statements of operations. For the years ended June 30, 2022 and 2021 the Company paid interest to the state of Connecticut of $1,258 and $0, respectively. Concentrations of Risk Financial instruments that potentially subject us to a significant concentration of credit risk consist primarily of cash and cash equivalents. The Company maintains deposits in FDIC or SIPC insured institutions in excess of federally insured limits under the FDIC. The Company does not believe it is exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. Recently Issued Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standard Updates (“ASU’s”). There were no recent ASU’s that are expected to have a material impact on the Company’s balance sheets or statements of operations. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions | |
Related Party Transactions | Note 4 – Related Party Transactions Related Parties Related parties with whom the Company had transactions are: Related Parties Relationship Dr. Anil R. Diwan Chairman, President, CEO, significant stockholder and Director TheraCour Pharma, Inc. (“TheraCour”) An entity owned and controlled by Dr. Anil R. Diwan Property and Equipment For the Year Ended June 30, 2022 June 30, 2021 During the reporting period, TheraCour acquired property and equipment on behalf of the Company from third party vendors and sold such property and equipment at cost, to the Company $ 183,428 $ 171,668 Accounts Payable- Related Party As of June 30, 2022 June 30, 2021 Pursuant to an Exclusive License Agreement entered into with TheraCour, the Company was granted exclusive licenses for technologies developed by TheraCour for the virus types: HIV, HCV, Herpes, Asian (bird) flu, Influenza and rabies. On November 1, 2019, the Company entered into the VZV Licensing Agreement with TheraCour. In consideration for obtaining these exclusive licenses it was agreed: (1) that TheraCour can charge its costs (direct and indirect) plus no more than 30% of certain direct costs as a development fee and such development fees shall be due and payable in periodic installments as billed, (2) the Company will pay $2,000 or actual costs each month, whichever is higher for other general and administrative expenses incurred by TheraCour on the Company’s behalf, (3) to make royalty payments of 15% (calculated as a percentage of net sales of the licensed drugs) to TheraCour and; (4) to pay an advance payment equal to twice the amount of the previous months invoice to be applied as a prepayment towards expenses. Accounts payable due TheraCour at June 30, 2022 was $679,397 which was offset by a two month advance (see above) of $465,000 . Accounts payable due TheraCour at June 30, 2021 was $522,539 which was offset by a two month advance (see above) of $491,000 . $ 214,397 $ 31,539 Research and Development Costs Paid to Related Party For the Year Ended June 30, June 30, 2022 2021 Development fees and other costs charged by TheraCour pursuant to the License Agreements between TheraCour and the Company for the development of the Company’s drug pipeline. No royalties are due TheraCour from the Company at June 30, 2022 and 2021. $ 2,369,022 $ 2,803,827 License Milestone Fee – Related Party On September 9, 2021, the Company entered into a Covid-19 License Agreement to use, promote, offer for sale, import, export, sell and distribute drugs that treat COVID-19 infections, using TheraCour’s proprietary as well as patented technology and intellectual property. Pursuant to such license agreement, the Board of Directors authorized the issuance of 100,000 fully vested shares of the Company’s Series A preferred stock as a license milestone payment and recorded an expense to Research and Development of $935,088 for the year ended June 30, 2022. Mortgage Note Payable - Related Party On December 16, 2019, the Company entered into an Open End Mortgage Note (the “Note”) with Dr. Anil Diwan, the Company’s founder, Chairman, President and CEO, to loan the Company up to $2,000,000 in two tranches of $1,000,000 (the “Loan”). The Note was paid off on December 31, 2020. The Note bore interest at the rate of 12% per annum and was secured by a mortgage granted against the Company’s headquarters. Dr. Anil Diwan received 10,000 shares of the Company’s Series A preferred stock as a loan origination fee which was amortized over the one year term of the loan using the effective interest method. The fair value of the 10,000 shares of the Company’s Series A preferred stock when issued on December 16, 2019 was $39,301 . The Series A preferred stock fair value is based on the greater of the i) the converted value to common at a ratio of 1: 3.5 ; or ii) the value of the voting rights since the Holder would lose the voting rights upon conversion. For the assumptions used in calculating the fair value of the preferred shares, the conversion of the shares is triggered by a change of control. Amortization expense on the loan origination fee for the years ended June 30, 2022 and 2021 was $0 and $18,013 respectively. The Company had drawn down $1.1 million of this loan. Interest was payable only on the amount drawn down. The lender had escrowed $132,000 of interest payable pursuant to the Loan. For the years ended June 30, 2022 and 2021, the Company incurred interest expense of $0 and $62,773 , respectively, which reduced the interest escrow balance included in prepaid expenses to zero . |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2022 | |
Property and Equipment | |
Property and Equipment | Note 5 – Property and Equipment Property and equipment, stated at cost, less accumulated depreciation consisted of the following: June 30, June 30, 2022 2021 GMP Facility $ 8,149,416 $ 8,020,471 Land 260,000 260,000 Office Equipment 57,781 57,781 Furniture and Fixtures 5,607 5,607 Lab Equipment 6,185,210 5,989,807 Total Property and Equipment 14,658,014 14,333,666 Less Accumulated Depreciation (5,963,820) (5,248,765) Property and Equipment, Net $ 8,694,194 $ 9,084,901 Depreciation expense for the years ended June 30, 2022 and 2021 was $715,055 and $696,268 respectively. |
Trademark and Patents
Trademark and Patents | 12 Months Ended |
Jun. 30, 2022 | |
Trademark and Patents | |
Trademark and Patents | Note 6 – Trademark and Patents Trademark and patents, stated at cost, less accumulated amortization consisted of the following: June 30, June 30, 2022 2021 Trademarks and Patents $ 458,954 $ 458,954 Less Accumulated Amortization (117,106) (108,836) Trademarks and Patents, Net $ 341,848 $ 350,118 Amortization expense amounted to $8,270, and $8,270 for the years ended June 30, 2022 and 2021, respectively. The Company amortizes its trademarks and patents over their expected original useful lives and, Amortization expense in future years is as follows: Years ended June 30, 2023 $ 8,271 2024 8,271 2025 8,271 2026 8,271 2027 8,271 Thereafter 300,493 Total amortization $ 341,848 |
Accrued expenses
Accrued expenses | 12 Months Ended |
Jun. 30, 2022 | |
Accrued expenses | |
Accrued expenses | Note 7 – Accrued expenses Accrued expenses consisted of the following: June 30, June 30, 2022 2021 Personnel and compensation costs $ 38,676 $ 24,285 Consultant 7,016 — $ 45,692 $ 24,285 |
Loan Payable
Loan Payable | 12 Months Ended |
Jun. 30, 2022 | |
Loan Payable | |
Loan Payable | Note 8 – Loan Payable The Company financed its Directors and Officers liability insurance policies through BankDirect for the periods January 1, 2022 to December 31, 2022 and January 1, 2021 to December 31, 2021. The original loan balances as of January 1, 2022 and January 1, 2021 was $234,198 and $235,476, respectively, payable at the rate of $23,932 and $24,062 monthly including interest at an annual rate of 4.74% and 4.74%, respectively, through October of each year. At June 30, 2022 and June 30, 2021, the loan balance was $94,788 and $95,306, respectively. For the years ended June 30, 2022 and June 30, 2021 the Company incurred interest expense of $5,123 and $4,858, respectively. |
Equity Transactions
Equity Transactions | 12 Months Ended |
Jun. 30, 2022 | |
Equity Transactions | |
Equity Transactions | Note 9 – Equity Transactions Fiscal Year Ended June 30, 2022 Transactions For the year ended June 30, 2022, the Scientific Advisory Board was granted fully vested warrants to purchase 2,288 shares of common stock at exercise prices between $1.46- $5.92 per share expiring in the fiscal year ending June 30, 2026. The fair value of the warrants was $4,215 for the year ended June 30, 2022 and recorded as consulting expense. For the year ended June 30, 2022, the Company estimated the fair value of the warrants granted quarterly to the Scientific Advisory Board on the date of grant using the Black-Scholes Option-Pricing Model with the following weighted-average assumptions: Expected life (year) 4 Expected volatility 86.00 - 91.00 % Expected annual rate of quarterly dividends 0.00 % Risk-free rate(s) 0.62 -. 2.84 % On September 9, 2021, the Company entered into a Covid-19 License Agreement to use, promote, offer for sale, import, export, sell and distribute drugs that treat COVID-19 infections, using TheraCour’s proprietary as well as patented technology and intellectual property. Pursuant to such license agreement, the Board of Directors authorized the issuance of 100,000 fully vested shares of the Company’s Series A preferred stock as a license milestone payment and recorded an expense of $935,088 , which is the fair value at the date of issuance. On September 14, 2021, the Board of Directors and Dr. Anil Diwan, President and Chairman of the Board agreed to the extension of Dr. Diwan’s employment agreement for a period of one year from July 1, 2021 through June 30, 2022 under the same general terms and conditions. The Company granted Dr. Diwan an award of 10,204 shares of the Company’s Series A preferred stock. The shares vested in quarterly installments of 2,551 shares on September 30, 2021, December 31, 2021, March 31, 2022 and June 30, 2022. The Company recognized non-cash compensation expense related to the issuance of the Series A preferred stock of $108,982 during the year ended June 30, 2022, which is the fair value on the date of issuance. For the year ended June 30, 2022, the Company’s Board of Directors authorized the issuance of 2,888 shares of its Series A preferred stock, which are fully vested with a restrictive legend for employee compensation. The Company recorded an expense of $26,418 during the year ended June 30, 2022, which is the fair value on the date of issuance. There is currently no market for the shares of Series A preferred stock and they can only be converted into shares of common stock upon a change of control of the Company as more fully described in the Certificate of Designation. The Company, therefore, estimated the fair value of the Series A preferred stock granted to various employees and others on the date of grant. The Series A preferred stock fair value is based on the converted value to common stock at a ratio of 1:3.5 multiplied by the monthly average of the daily open and close price of the common stock. The conversion of the shares is triggered by a change of control. For the year ended June 30, 2022, the Company’s Board of Directors authorized the issuance of 3,572 fully vested shares of its common stock for employee compensation. The Company recognized a noncash compensation expense of $6,768 which was the fair value on the date of issuance. For the year ended June 30, 2022, the Company’s Board of Directors authorized the issuance of 38,863 fully vested shares of its common stock with a restrictive legend for consulting services. The Company recorded an expense of $108,000 , which was the fair value at the dates of issuance. For the year ended June 30, 2022, the Company’s Board of Directors authorized the issuance of 17,705 fully vested shares of its common stock with a restrictive legend for director services. The Company recorded an expense of $52,500 , which was the fair value at date of issuance. For the year ended June 30, 2022, the Company’s Board of Directors authorized the issuance of 16,863 fully vested shares of its common stock with a restrictive legend to satisfy open accounts payable of $35,750 for consulting services. The number of shares issued to settle the accounts payable was calculated using the market price of the common stock on the settlement date. Fiscal Year Ended June 30, 2021 Transactions On July 11, 2018 the Board of Directors approved an extension of the employment agreement with Dr. Anil Diwan, the Company’s President. Pursuant to the terms of the employment agreement, the Company’s Board of Directors authorized the issuance of 26,250 of the Company’s Series A preferred stock to Dr. Anil Diwan. The shares vested in one-third increments on June 30, 2019, June 30, 2020 and June 30, 2021 and are subject to forfeiture. The Company recognized non-cash compensation expense related to the issuance of the Series A preferred stock of $182,610 for the year ended June 30, 2021. For the year ended June 30, 2021, the Scientific Advisory Board was granted fully vested warrants to purchase 2,288 shares of common stock at exercise prices between $3.94- $6.86 per share expiring in the fiscal year ending June 30, 2025. The fair value of the warrants was $6,103 for the year ended June 30, 2021 and recorded as consulting expense. For the year ended June 30, 2021, the Company estimated the fair value of the warrants granted quarterly to the Scientific Advisory Board on the date of grant using the Black-Scholes Option-Pricing Model with the following weighted-average assumptions: Expected life (year) 4 Expected volatility 91.14 - 91.92 % Expected annual rate of quarterly dividends 0.00 % Risk-free rate(s) 0.24 - .58 % On July 8, 2020 the Company entered into an Underwriting Agreement with Kingswood. Pursuant to the terms and conditions of the Underwriting Agreement, the Company agreed to issue and sell 1,369,863 shares of our common stock, par value $0.001 per share (the “Underwritten Shares”), at a price to the public of $7.30 per share. Pursuant to the Underwriting Agreement, the Company also granted the underwriter an option to purchase up to an additional 205,479 shares of common stock (together with the Underwritten Shares, the “Shares”) within 45 days after the date of the Underwriting Agreement to cover over-allotments, if any. The shares were issued pursuant to a prospectus supplement dated July 8, 2020 which was filed with the Securities and Exchange Commission on July 9, 2020 in connection with a takedown from the Company’s shelf registration statement on Form S-3, as amended (File No. 333-237370), which became effective on April 2, 2020 and the base prospectus dated April 2, 2020 contained in that registration statement. The offering was consummated on July 10, 2020, whereby the Company sold 1,369,863 shares of common stock and a fully exercised Underwriters’ overallotment of 205,479 additional shares at the public offering price of $7.30 per share. The net proceeds to the Company from the offering was approximately $10.4 million after placement agent fees and other estimated offering expenses. The Company accounted for the proceeds of the offering at July 10, 2020 as follows: Gross proceeds $ 11,499,997 Less: offering costs and expenses (1,057,781) Net proceeds from issuance of common stock $ 10,442,216 On July 31, 2020, the Company entered into a Sales Agreement with the Sales Agents, pursuant to which the Company may offer and sell, from time to time, through or to the Sales Agents, shares of common stock having an aggregate offering price of up to $50 million. On March 2, 2021 the Company sold 814,242 shares of common stock at an average price of approximately $7.83 per share. The shares were issued pursuant to a prospectus supplement dated December 3, 2020 filed with the Securities and Exchange Commission on December 10, 2020 in connection with the Company’s shelf registration statement on Form S-3, as amended (File No. 333-237370), which became effective on April 2, 2020. The net proceeds to the Company from the offering was approximately $6.1 million after placement agent fees and other estimated offering expenses. The Company accounted for the proceeds of the ATM Offering at March 2, 2021 as follows: Gross proceeds $ 6,374,211 Less: offering costs and expenses (252,730) Net proceeds from issuance of common stock $ 6,121,481 For the year ended June 30, 2021, the Company’s Board of Directors authorized the issuance of 2,888 shares of its Series A preferred stock, which are fully vested with a restrictive legend for employee compensation. The Company recorded an expense of $43,696, which is the fair value at date of issuance. There is currently no market for the shares of Series A preferred stock and they can only be converted into shares of common stock upon a change of control of the Company as more fully described in the Certificate of Designation. The Company, therefore, estimated the fair value of the Series A preferred stock granted to various employees and others on the date of grant. The Series A preferred stock fair value is based on the converted value to common stock at a ratio of 1:3.5 multiplied by the monthly average of the daily open and close price of the common stock. The conversion of the shares is triggered by a change of control. For the year ended June 30, 2021, the Company’s Board of Directors authorized the issuance of 3,572 fully vested shares of its common stock for employee compensation. The Company recognized a noncash compensation expense of $15,038, which was the fair value on the date of issuance. For the year ended June 30, 2021, the Company’s Board of Directors authorized the issuance of 25,434 fully vested shares of its common stock with a restrictive legend for consulting services. The Company recorded an expense of $108,000 , which was the fair value at the dates of issuance. For the year ended June 30, 2021, the Company’s Board of Directors authorized the issuance of 13,166 fully vested shares of its common stock with a restrictive legend for director services. The Company recorded an expense of $56,250 , which was the fair value at date of issuance. |
Stock Options and Warrants
Stock Options and Warrants | 12 Months Ended |
Jun. 30, 2022 | |
Stock Options and Warrants | |
Stock Warrants and Options | Note 10 – Stock Options and Warrants Stock Options The following table presents the activity of stock options for the years ended June 30, 2022 and 2021: Weighted Weighted Average Average Exercise Remaining Aggregate Number of Price Contractual Intrinsic Stock Options Shares per share ($) Term (years) Value ($) Outstanding and exercisable at June 30, 2020 5,000 $ 10.00 1.16 — Granted — — — — Exercised — — — — Forfeited — — — — Canceled — — — — Outstanding and exercisable at June 30, 2021 5,000 $ 10.00 0.16 — Granted — — — — Exercised — — — — Forfeited — — — — Expired 5,000 — — — Outstanding and exercisable at June 30, 2022 — $ — — — On September 1, 2018, Dr. Taraporewala was appointed as Chief Operating Officer and was granted options to purchase 15,000 shares of Nanoviricides common stock of which 5,000 options were vested and exercisable on September 1, 2018. On January 24, 2019, Dr. Taraporewala resigned as the Chief Operating Officer of the Company and all remaining unvested options were forfeited. The vested options expired on August 31, 2021. See Note 14. For the years ended June 30, 2022 and 2021, the Company did not recognize compensation expense related to vested options granted to Dr. Taraporewala. As of June 30, 2022, there was no unrecognized compensation cost. Stock Warrants Weighted Weighted Average Average Number of Exercise Remaining Aggregate Shares Price Contractual Intrinsic Outstanding and exercisable at June 30, 2020 22,218 $ 30.82 2.28 $ 4,533 Granted 2,288 5.26 — — Exercised — — — — Expired 2,860 34.26 — — Canceled 12,500 40.00 — — Outstanding and exercisable at June 30, 2021 9,146 $ 10.80 2.00 $ 1,943 Granted 2,288 3.68 3.50 — Exercised — — — — Expired 2,288 22.63 — — Canceled — — — — Outstanding and exercisable at June 30, 2022 9,146 $ 6.06 2.00 $ 238 Of the above warrants; 2,287 expire in fiscal year ending June 30, 2023; 2,287 expire in fiscal year ending June 30, 2024; 2,286 expire in fiscal year ending June 30, 2025 and 2,288 expire in fiscal year ending June 30, 2026 |
Income Tax Provision
Income Tax Provision | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Provision | |
Income Tax Provision | Note 11 – Income Tax Provision The Company has no current tax expense due to its losses. The income tax expense for the years ended June 30, 2022 and 2021 differed from the amounts computed by applying the U.S. federal income tax rate of 21% and 21% respectively as follows: For the Year Ended June 30, June 30, 2022 2021 Federal Statutory Rate (21.00) % (21.00) % Research and Development Credit 8.90 % 0.62 % State Tax Rate (5.93) % (5.93) % Stock Based Compensation — % — % Other 2.73 % — % Valuation Allowance 15.30 % 26.31 % Effective Tax Rate — — The significant components of the Company’s deferred tax assets and liabilities at June 30, 2022 and 2021 are as follows: June 30, June 30, 2022 2021 Net operating loss $ 27,127,620 $ 26,676,579 Research and development credit 7,774,567 7,053,228 Other 1,604,592 1,536,892 Total gross deferred tax assets 36,506,779 35,266,699 Less: valuation allowance (36,506,779) (35,266,699) Net deferred tax asset $ — $ — At June 30, 2022 and 2021, the Company has recorded a full valuation allowance against its net deferred tax assets of $36,506,779 and $35,266,699, respectively, since in the judgment of management, these assets are not more than likely than not to be realized. The increase in the valuation allowance during the year ended June 30, 2022 was $1,240,080. As of June 30, 2022, the Company has approximately $100.9 million of gross net operating loss carryforwards available to reduce future taxable income, if any for federal and state tax purposes. The aggregate federal net operating losses generated for the years ended June 30, 2022 and 2021 of approximately $16.1 million can be carried forward indefinitely. However, the deduction for net operating losses incurred in tax years beginning after January 1, 2018 is limited to 80% of annual taxable income. Net operating losses generated in years ended June 30, 2018 and prior have a 20-year carryforward and will begin expiring in 2025. As of June 30, 2022 and 2021, research and development credit carryforwards for federal and state purposes are $7,774,567, and $7,053,228, respectively. The state net operating loss and credit carryforwards begin to expire in 2025. Due to the change in ownership provisions of the Internal Revenue Code, the availability of the Company’s net operating loss carry-forwards could be subject to annual limitations against taxable income in future periods, which could substantially limit the eventual utilization of such carryforwards. The Company has not analyzed the historical or potential impact of its equity financings on beneficial ownership and therefore no determination has been made whether the net operating loss carryforward is subject to any Internal Revenue Code Section 382 limitation. To the extent there is a limitation, there could be a reduction in the deferred tax asset with an offsetting reduction in the valuation allowance. The Company does not have any uncertain tax positions at December 31, 2021 and December 31, 2020 that would affect its effective tax rate. The Company does not anticipate a significant change in the amount of unrecognized tax benefits over the next twelve months. Because the Company is in a loss carryforward position, the Company is generally subject to U.S. federal and state income tax examinations by tax authorities for all years for which a loss carryforward is available. If and when applicable, the Company will recognize interest and penalties as part of income tax expense. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 12 – Commitments and Contingencies Legal Proceedings There are no pending legal proceedings against the Company to the best of the Company’s knowledge as of the date hereof and to the Company’s knowledge, no action, suit or proceeding has been threatened against the Company. Employment Agreements The Company and Dr. Anil Diwan, President and Chairman of the Board of Directors, entered into an extension of employment agreement effective July 1, 2018 for a term of three years . Dr. Anil Diwan’s will be paid an annual base salary of $400,000 . Additionally, Dr. Anil Diwan was awarded a grant of 26,250 shares of the Company’s Series A preferred stock. 8,750 shares vest equally on June 30, 2019, 2020 and 2021. Any unvested shares are subject to forfeiture. The extension agreement is renewable annually with consent of the Board of Directors. On September 14, 2021, the Board of Directors agreed to the extension of the employment agreement for a period of one year from July 1, 2021 through June 30, 2022 under the same general terms and conditions. The Company granted Dr. Anil Diwan an award of 10,204 shares of the Company’s Series A preferred stock. The shares were deemed partially vested in quarterly installments following the grant date and fully vested on June 30, 2022. The employment agreement is renewable annually with approval by the Board of Directors. On October 6, 2022, the Company agreed to the extension of the employment agreement for a period of one year from July 1, 2022 through June 30, 2023 under the same general terms and conditions. The Company granted Dr. Anil Diwan an award of 10,204 shares of the Company’s Series A preferred stock. The shares will be deemed partially vested in quarterly installments following the grant date and fully vested on June 30, 2023. The Company and Dr. Irach Taraporewala, the Company’s Chief Executive Officer, entered into an employment agreement effective September 1, 2018, for a term of three years. Dr. Taraporewala would be paid an annual base salary of $360,000. Additionally, Dr. Taraporewala was awarded a grant of 15,000 options to purchase shares of the Company’s common stock. 5,000 options vested on September 1, 2018 and the remainder of the options would vest over the two-year vesting period and are subject to forfeiture. On January 24, 2019, Dr. Taraporewala resigned as the Chief Executive Officer of the Company for personal reasons. Also on that date, the Company and Dr. Taraporewala agreed that Dr. Taraporewala would become a consultant for the Company for a period of two years. In connection with his resignation and new consulting services, the Company and Dr. Taraporewala entered into a Confidential Separation and Consulting Agreement and General Release (the “Agreement”) pursuant to which the Company will pay Dr. Taraporewala monthly consulting payments of $3,000 from February 1, 2019, the effective date of the Agreement, through January 31, 2021. The Agreement includes a general release of claims against the Company, obligations of confidentiality, non-disclosure, non-disparagement and other customary provisions found in similar agreements. The remaining 10,000 options not vested upon resignation have been forfeited. On March 3, 2010, the Company entered into an employment agreement with Dr. Jayant Tatake to serve as Vice President of Research and Development. The employment agreement provides for a term of four years with a base salary of $150,000. In addition, the Company issued 1,340 shares of Series A preferred stock and 1,786 shares of common stock upon entering into the agreement, and will issue an additional 1,340 shares of Series A preferred stock and 1,786 shares of common stock on each anniversary date of the agreement. The shares of Series A preferred stock were issued in recognition of Dr. Tatake’s work towards the achievement of several patents by the Company. The Compensation Committee of the Board of Directors has extended the current provisions of the employment agreement pending its review of current industry compensation arrangements and employment agreements. On March 3, 2010, the Company entered into an employment agreement with Dr. Randall Barton to serve as Chief Scientific Officer. The employment agreement provided for a term of four years with a base salary of $150,000. In addition, the Company issued 1,786 shares of common stock upon entering into the agreement, and will issue an additional 1,786 shares of common stock on each anniversary date of the agreement. The Compensation Committee of the Board of Directors has extended the current provisions of the employment agreement pending its review of current industry compensation arrangements and employment agreements. On May 30, 2013, the Company entered into an employment agreement with Meeta Vyas, wife of our President and Chairman of the Board, to serve as its Chief Financial Officer. The employment agreement provided for a term of three years with a base salary of $9,000 per month and 129 shares of Series A preferred stock, also on a monthly basis. On January 1, 2015, her cash compensation was increased to $10,800 per month. The agreement is renewable on an annual basis. The Compensation Committee of the Board of Directors has extended the current provisions of the employment agreement pending its review of current industry compensation arrangements and employment agreements. License Agreements The Company is dependent upon its license agreements with TheraCour (See Notes 1 and 4). If the Company lost the right to utilize any of the proprietary information that is the subject of the TheraCour license agreement on which it depends, the Company will incur substantial delays and costs in development of its drug candidates. On November 1, 2019, the Company entered into a Licensing Agreement (the “Agreement”) with TheraCour for an exclusive license for the Company to use, promote, offer for sale, import, export, sell and distribute products for the treatment of VZV derived indications. Process development and related work will be performed by TheraCour under the same compensation terms as prior agreements between the parties, with no duplication of costs allowed. Upon commercialization, NanoViricides will pay 15% of net sales to TheraCour, as defined in the agreement. The Company was not required to make any upfront payments to TheraCour and agreed to the following milestone payments to TheraCour; the issuance of 75,000 shares of the Company’s Series A preferred stock upon the grant of an IND Application; $1,500,000 in cash upon completion of Phase I clinical trials; $2,500,000 in cash upon completion of Phase II clinical trials; and $5,000,000 in cash upon completion of Phase III clinical trials. On September 9, 2021, the Company entered into a world-wide, exclusive, sub-licensable, license (“Covid-19 License Agreement”) to use, promote, offer for sale, import, export, sell and distribute drugs that treat Covid-19 infections, using TheraCour’s proprietary as well as patented technology and intellectual property. The discovery of ligands and polymer materials as well as formulations, the chemistry and chemical characterization, as well as process development and related work will be performed by TheraCour under the same compensation terms as prior agreements between the parties, with no duplication of costs allowed. Upon commercialization, NanoViricides will pay 15% of net sales to TheraCour, as defined in the agreement. The Company was not required to make any upfront cash payments to TheraCour and agreed to the following milestone payments to TheraCour: (i) the issuance of 100,000 shares of the Company’s Series A preferred stock within 30 days upon execution of this agreement; (ii) the issuance of 50,000 shares of the Company’s Series A preferred stock upon the approval of the Company’s Investigational New Drug (IND) Application or its equivalent by a competent regulatory authority; (iii) $1,500,000 upon initiation of Phase I clinical trials, or its equivalent, for at least one Licensed Product within the field on, or before, three (3) months from the date of the Authority’s acceptance of the IND, or its equivalent; (iv) $2,000,000 in cash upon completion of Phase 1 clinical trials; (v) $2,500,000 in cash upon completion of Phase IIA clinical trials, or, its equivalent; (vi) the issuance of 100,000 shares of the Company’s Series A preferred stock upon the initiation of Phase 3 clinical trials, or, its equivalent, for at least one Licensed Product within the field; and (vii) $5,000,000 in cash, or 500,000 shares of the Company’s Series A preferred stock upon completion of Phase III clinical trials, or its equivalent. Upon commercialization, NanoViricides will pay 15% of net sales to TheraCour, as defined in the agreement. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2022 | |
Subsequent Events | |
Subsequent Events | Note 13 - Subsequent Events On October 6, 2022, NanoViricides, Inc. entered into an Extension Agreement (the “Extension”) of the Employment Agreement with Dr. Anil R. Diwan entered into on July 1, 2018 (the “Employment Agreement”) to continue to serve as the President of the Company, effective July 1, 2022.The Extension and the Agreement provide Dr. Diwan will continue to serve as the Company’s President until June 30, 2023 at a base annual base salary of $400,000. Dr. Diwan shall be entitled to participate in all fringe benefits the Company provides for its employees generally and such other benefits as the Company provides for its senior executives. In addition, the Company shall maintain a Term Life Insurance policy for Dr. Diwan, valued at $2 million, of which $1 million shall be assigned to t Company and the remaining balance to Dr. Diwan’s estate.In addition, as an incentive towards the ultimate success of the Company, and to provide leadership authority to Dr. Diwan, the Company granted 10,204 shares of the Company’s Series A Convertible Preferred Stock, par value $0.001 per share (the “Series A Preferred Stock”) to Dr. Diwan. Dr. Diwan’s rights in the shares shall vest in equal, quarterly installment commencing on September 30, 2022 and fully vest on June 30, 2023. Dr. Diwan will be eligible to receive severance if he is terminated by the Registrant other than for cause in which event the Registrant shall pay to Dr. Diwan an amount equal to six (6) month’s salary as severance compensation (without regard to compensation or benefits Dr. Diwan receives from any other source). Dr. Diwan shall be eligible for all benefits during this six (6) month period including bonuses, vesting of previously awarded stock options, health care insurance and other fringe benefits that have been ongoing. The Registrant may elect to pay such severance compensation in a lump sum or in equal payments over a period of not more than six (6) months. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include all adjustments necessary for the fair presentation of the Company’s financial position for the periods presented. |
Net Loss per Common Share | Net Loss per Common Share Basic net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through stock options, warrants, and convertible preferred stock. The following table shows the number of potentially outstanding dilutive common shares excluded from the diluted net loss per common share calculation, as their effect were anti-dilutive: Potentially Outstanding Dilutive Common Shares For the Years Ended June 30, 2022 June 30, 2021 Warrants 9,146 9,146 Options — 5,000 Total 9,146 14,416 The Company has 484,582 and 371,490 shares of Series A preferred stock outstanding as of June 30, 2022 and 2021, respectively. Only in the event of a “change of control” of the Company, each Series A preferred share is convertible to 3.5 shares of its new common stock. A “change of control” is defined as an event in which the Company’s shareholders become 60% or less owners of a new entity as a result of a change of ownership, merger or acquisition of the Company or the Company’s intellectual property. In the absence of a change of control event, the Series A preferred stock is not convertible into common stock, and does not carry any dividend rights or any other financial effects. At June 30, 2022 and 2021 the number of potentially dilutive shares of the Company’s common stock into which these Series A preferred shares can be converted into is 1,696,037 and 1,300,215, respectively, and is not included in diluted earnings per share since the shares are contingently convertible only upon a change of control. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances. The amounts of assets and liabilities reported in the Company’s balance sheet and the amounts of expenses reported for each of the periods presented are affected by estimates and assumptions, which are used for but not limited to, accounting for share-based compensation and accounting for income taxes. Actual results could differ from those estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value for applicable assets and liabilities, the Company considers the principal or most advantageous market in which we would transact and we consider assumptions market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. This guidance also establishes a fair value hierarchy to prioritize inputs used in measuring fair value as follows: ● Level 1: Observable inputs such as quoted prices in active markets; ● Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and ● Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. |
Long-Lived Assets | Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets and would be charged to earnings. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. The Company has not recorded an impairment charge for the years ended June 30, 2022 and 2021. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments with original maturities of three months or less to be cash equivalents. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost and depreciated over the estimated useful lives of the assets, using the straight-line method. The Company generally assigns useful lives of thirty years for assets classified as GMP facility, fifteen years for assets classified as furniture and fixtures, ten years for assets classified as lab equipment, and five years for assets classified as office equipment. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the statements of operations. |
Trademarks and Patents | Trademarks and Patents The Company amortizes the costs of trademarks and patents on a straight-line basis over their estimated useful lives, the terms of the exclusive licenses and/or agreements, or the terms of legal lives of the patents, whichever is shorter. Upon becoming fully amortized, the related cost and accumulated amortization are removed from the accounts. |
Research and Development | Research and Development Research and development expenses consist primarily of costs associated with the preclinical and/ or clinical trials of drug candidates, compensation and other expenses for research and development, personnel, supplies and development materials, costs for consultants and related contract research and facility costs. Expenditures relating to research and development are expensed as incurred. |
Stock-Based Compensation | Stock-Based Compensation The Company follows the provisions of ASC 718 – “Stock Compensation”, which requires the measurement of compensation expense for all shared-based payment awards made to employees, non-employee directors, and non-employees, including employee stock options. Stock-based compensation expense is based on the grant date fair value estimated in accordance with the provisions of ASC 718 and is generally recognized as an expense over the requisite service period, net of forfeitures. The fair value of common stock issued as employee and non-employee compensation is the average of the open and close share price on the date the common shares are issued. The Series A preferred shares are not traded in any market. The assumptions used to determine the fair value of the Series A preferred shares issued as employee and non-employee compensation are presented in Note 10 to the financial statements. The fair value of each option award is estimated on the date of grant using a Black-Scholes option-pricing valuation model. The ranges of assumptions for inputs are as follows: ● Expected term of share options and similar instruments: The expected term of share options and similar instruments represents the period of time the options and similar instruments are expected to be outstanding taking into consideration the contractual term of the instruments and employees’ expected exercise and post-vesting employment termination behavior into the fair value of the instruments. The Company uses the simplified method to calculate expected term of share options and similar instruments, as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. ● Expected volatility of the Company’s shares and the method used to estimate it: Expected volatility is based on the average historical volatility of the Company’s common stock over the expected term of the option. ● Expected annual rate of quarterly dividends: The expected dividend yield is based on the Company’s current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the option and similar instruments. ● Risk-free rate(s): The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the expected term of the option and similar instruments. The Company’s policy is to recognize compensation cost for awards with only service conditions and a graded vesting schedule on a straight-line basis over the requisite service period for the entire award. |
Income Tax Provision | Income Tax Provision The Company uses the asset and liability method of accounting for deferred income taxes. Deferred income taxes are measured by applying enacted statutory rates to net operating loss carryforwards and to the differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets are reduced, if necessary, by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company recognizes uncertainty in income taxes in the financial statements using a recognition threshold and measurement attribute of a tax position taken or expected to be taken in a tax return. The Company applies the “more-likely-than-not” recognition threshold to all tax positions, which resulted in no unrecognized tax benefits as of June 30, 2022 and 2021. The Company has opted to classify interest and penalties that would accrue, if any, according to the provisions of relevant tax law as general and administrative expenses, in the statements of operations. For the years ended June 30, 2022 and 2021 the Company paid interest to the state of Connecticut of $1,258 and $0, respectively. |
Concentrations of Risk | Concentrations of Risk Financial instruments that potentially subject us to a significant concentration of credit risk consist primarily of cash and cash equivalents. The Company maintains deposits in FDIC or SIPC insured institutions in excess of federally insured limits under the FDIC. The Company does not believe it is exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standard Updates (“ASU’s”). There were no recent ASU’s that are expected to have a material impact on the Company’s balance sheets or statements of operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Schedule of potentially outstanding dilutive common shares excluded from the diluted net loss per common share calculation | The following table shows the number of potentially outstanding dilutive common shares excluded from the diluted net loss per common share calculation, as their effect were anti-dilutive: Potentially Outstanding Dilutive Common Shares For the Years Ended June 30, 2022 June 30, 2021 Warrants 9,146 9,146 Options — 5,000 Total 9,146 14,416 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions | |
Summary of related parties | Related Parties Relationship Dr. Anil R. Diwan Chairman, President, CEO, significant stockholder and Director TheraCour Pharma, Inc. (“TheraCour”) An entity owned and controlled by Dr. Anil R. Diwan Property and Equipment For the Year Ended June 30, 2022 June 30, 2021 During the reporting period, TheraCour acquired property and equipment on behalf of the Company from third party vendors and sold such property and equipment at cost, to the Company $ 183,428 $ 171,668 Accounts Payable- Related Party As of June 30, 2022 June 30, 2021 Pursuant to an Exclusive License Agreement entered into with TheraCour, the Company was granted exclusive licenses for technologies developed by TheraCour for the virus types: HIV, HCV, Herpes, Asian (bird) flu, Influenza and rabies. On November 1, 2019, the Company entered into the VZV Licensing Agreement with TheraCour. In consideration for obtaining these exclusive licenses it was agreed: (1) that TheraCour can charge its costs (direct and indirect) plus no more than 30% of certain direct costs as a development fee and such development fees shall be due and payable in periodic installments as billed, (2) the Company will pay $2,000 or actual costs each month, whichever is higher for other general and administrative expenses incurred by TheraCour on the Company’s behalf, (3) to make royalty payments of 15% (calculated as a percentage of net sales of the licensed drugs) to TheraCour and; (4) to pay an advance payment equal to twice the amount of the previous months invoice to be applied as a prepayment towards expenses. Accounts payable due TheraCour at June 30, 2022 was $679,397 which was offset by a two month advance (see above) of $465,000 . Accounts payable due TheraCour at June 30, 2021 was $522,539 which was offset by a two month advance (see above) of $491,000 . $ 214,397 $ 31,539 Research and Development Costs Paid to Related Party For the Year Ended June 30, June 30, 2022 2021 Development fees and other costs charged by TheraCour pursuant to the License Agreements between TheraCour and the Company for the development of the Company’s drug pipeline. No royalties are due TheraCour from the Company at June 30, 2022 and 2021. $ 2,369,022 $ 2,803,827 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Property and Equipment | |
Schedule of property and equipment | Property and equipment, stated at cost, less accumulated depreciation consisted of the following: June 30, June 30, 2022 2021 GMP Facility $ 8,149,416 $ 8,020,471 Land 260,000 260,000 Office Equipment 57,781 57,781 Furniture and Fixtures 5,607 5,607 Lab Equipment 6,185,210 5,989,807 Total Property and Equipment 14,658,014 14,333,666 Less Accumulated Depreciation (5,963,820) (5,248,765) Property and Equipment, Net $ 8,694,194 $ 9,084,901 |
Trademark and Patents (Tables)
Trademark and Patents (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Trademark and Patents | |
Schedule of trademark and patents, stated at cost, less accumulated amortization | Trademark and patents, stated at cost, less accumulated amortization consisted of the following: June 30, June 30, 2022 2021 Trademarks and Patents $ 458,954 $ 458,954 Less Accumulated Amortization (117,106) (108,836) Trademarks and Patents, Net $ 341,848 $ 350,118 |
Schedule of amortization expense in future years | Amortization expense in future years is as follows: Years ended June 30, 2023 $ 8,271 2024 8,271 2025 8,271 2026 8,271 2027 8,271 Thereafter 300,493 Total amortization $ 341,848 |
Accrued expenses (Tables)
Accrued expenses (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Accrued expenses | |
Schedule of accrued expenses | Accrued expenses consisted of the following: June 30, June 30, 2022 2021 Personnel and compensation costs $ 38,676 $ 24,285 Consultant 7,016 — $ 45,692 $ 24,285 |
Equity Transactions (Tables)
Equity Transactions (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Equity Transactions | |
Schedule of estimation of estimated the fair value of the warrants granted | For the year ended June 30, 2022, the Company estimated the fair value of the warrants granted quarterly to the Scientific Advisory Board on the date of grant using the Black-Scholes Option-Pricing Model with the following weighted-average assumptions: Expected life (year) 4 Expected volatility 86.00 - 91.00 % Expected annual rate of quarterly dividends 0.00 % Risk-free rate(s) 0.62 -. 2.84 % For the year ended June 30, 2021, the Company estimated the fair value of the warrants granted quarterly to the Scientific Advisory Board on the date of grant using the Black-Scholes Option-Pricing Model with the following weighted-average assumptions: Expected life (year) 4 Expected volatility 91.14 - 91.92 % Expected annual rate of quarterly dividends 0.00 % Risk-free rate(s) 0.24 - .58 % |
Schedule of proceeds of the offering | The Company accounted for the proceeds of the offering at July 10, 2020 as follows: Gross proceeds $ 11,499,997 Less: offering costs and expenses (1,057,781) Net proceeds from issuance of common stock $ 10,442,216 The Company accounted for the proceeds of the ATM Offering at March 2, 2021 as follows: Gross proceeds $ 6,374,211 Less: offering costs and expenses (252,730) Net proceeds from issuance of common stock $ 6,121,481 |
Stock Options and Warrants (Tab
Stock Options and Warrants (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of stock option activity | The following table presents the activity of stock options for the years ended June 30, 2022 and 2021: Weighted Weighted Average Average Exercise Remaining Aggregate Number of Price Contractual Intrinsic Stock Options Shares per share ($) Term (years) Value ($) Outstanding and exercisable at June 30, 2020 5,000 $ 10.00 1.16 — Granted — — — — Exercised — — — — Forfeited — — — — Canceled — — — — Outstanding and exercisable at June 30, 2021 5,000 $ 10.00 0.16 — Granted — — — — Exercised — — — — Forfeited — — — — Expired 5,000 — — — Outstanding and exercisable at June 30, 2022 — $ — — — |
Stock Warrants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of stock option activity | Weighted Weighted Average Average Number of Exercise Remaining Aggregate Shares Price Contractual Intrinsic Outstanding and exercisable at June 30, 2020 22,218 $ 30.82 2.28 $ 4,533 Granted 2,288 5.26 — — Exercised — — — — Expired 2,860 34.26 — — Canceled 12,500 40.00 — — Outstanding and exercisable at June 30, 2021 9,146 $ 10.80 2.00 $ 1,943 Granted 2,288 3.68 3.50 — Exercised — — — — Expired 2,288 22.63 — — Canceled — — — — Outstanding and exercisable at June 30, 2022 9,146 $ 6.06 2.00 $ 238 |
Income Tax Provision (Tables)
Income Tax Provision (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Provision | |
Schedule of income tax expense differed from the amounts computed by applying the U.S. federal income tax rate | The income tax expense for the years ended June 30, 2022 and 2021 differed from the amounts computed by applying the U.S. federal income tax rate of 21% and 21% respectively as follows: For the Year Ended June 30, June 30, 2022 2021 Federal Statutory Rate (21.00) % (21.00) % Research and Development Credit 8.90 % 0.62 % State Tax Rate (5.93) % (5.93) % Stock Based Compensation — % — % Other 2.73 % — % Valuation Allowance 15.30 % 26.31 % Effective Tax Rate — — |
Schedule of components of the Company's deferred tax assets and liabilities | The significant components of the Company’s deferred tax assets and liabilities at June 30, 2022 and 2021 are as follows: June 30, June 30, 2022 2021 Net operating loss $ 27,127,620 $ 26,676,579 Research and development credit 7,774,567 7,053,228 Other 1,604,592 1,536,892 Total gross deferred tax assets 36,506,779 35,266,699 Less: valuation allowance (36,506,779) (35,266,699) Net deferred tax asset $ — $ — |
Organization and Nature of Bu_2
Organization and Nature of Business (Details) - USD ($) | 12 Months Ended | ||
Sep. 09, 2021 | Nov. 01, 2019 | Jun. 30, 2022 | |
Cash upon completion of Phase I Clinical Trials | $ 1,500,000 | ||
Cash upon completion of Phase II Clinical Trials | 2,500,000 | ||
Cash upon completion of Phase III Clinical Trials | $ 5,000,000 | ||
TheraCour Pharma Inc | |||
Percentage of net sales allocated for royalty payments | 15% | 15% | |
Issuance of shares | 75,000 | ||
Cash upon completion of Phase I Clinical Trials | $ 1,500,000 | ||
Cash upon completion of Phase II Clinical Trials | 2,500,000 | ||
Cash upon completion of Phase III Clinical Trials | $ 5,000,000 | ||
Series A Convertible Preferred Stock | TheraCour Pharma Inc | |||
Percentage of net sales allocated for royalty payments | 15% | ||
Cash upon completion of Phase I Clinical Trials | $ 2,000,000 | ||
Cash upon completion of Phase II Clinical Trials | 2,500,000 | ||
Cash upon completion of Phase III Clinical Trials | $ 5,000,000 | ||
Number of shares issuable upon execution of agreement | 100,000 | ||
Threshold period for issuance of shares upon execution of agreement | 30 days | ||
Issuance of shares upon the approval | 50,000 | ||
Shares value upon initiation of Phase I Clinical Trials | $ 1,500,000 | ||
Shares value upon initiation of Phase III Clinical Trials | 100,000 | ||
Shares value upon completion of Phase III Clinical Trials | $ 500,000 | ||
Series A Preferred stock | |||
Issuance of shares | 75,000 | ||
Series A Preferred stock | TheraCour Pharma Inc | |||
Percentage of net sales allocated for royalty payments | 15% | ||
Issuance of shares | 50,000 | ||
Cash upon completion of Phase I Clinical Trials | $ 2,000,000 | ||
Cash upon completion of Phase II Clinical Trials | 2,500,000 | ||
Cash upon completion of Phase III Clinical Trials | $ 5,000,000 | ||
Number of shares issuable upon execution of agreement | 100,000 | ||
Threshold period for issuance of shares upon execution of agreement | 30 days | ||
Shares value upon initiation of Phase I Clinical Trials | $ 1,500,000 | ||
Shares value upon initiation of Phase III Clinical Trials | 100,000 | ||
Shares value upon completion of Phase III Clinical Trials | $ 500,000 |
Liquidity (Details)
Liquidity (Details) - USD ($) | 12 Months Ended | |||
Mar. 02, 2021 | Jul. 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | |
Financial Condition [Line Items] | ||||
Accumulated deficit | $ (122,492,176) | $ (114,385,313) | ||
Net loss | (8,106,863) | (8,822,189) | ||
Net cash used in operating activities | (5,891,254) | (8,213,836) | ||
Cash and cash equivalents | $ 14,066,359 | $ 20,516,677 | ||
Sales Agreement | ||||
Financial Condition [Line Items] | ||||
Commission rate | 3.50% | |||
Fees and disbursements of legal counsel in an amount not to exceed | $ 50,000 | |||
Amount not to exceed quarter during the term of sales agreement | 2,500 | |||
ATM Offering | Sales Agreement | ||||
Financial Condition [Line Items] | ||||
Net proceeds from the offering | $ 6,100,000 | $ 50,000,000 | ||
Shares sold | 814,242 | |||
Price of a share | $ 7.83 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Warrants and Options (Details) - shares | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Accounting Policies [Line Items] | ||
Total potentially outstanding dilutive common shares | 9,146 | 14,416 |
Warrants | ||
Accounting Policies [Line Items] | ||
Total potentially outstanding dilutive common shares | 9,146 | 9,146 |
Options | ||
Accounting Policies [Line Items] | ||
Total potentially outstanding dilutive common shares | 5,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Jun. 30, 2022 | |
GMP facility | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 30 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 15 years |
Lab equipment | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 10 years |
Office equipment | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |
Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) shares | |
Accounting Policies [Line Items] | ||
Number of potentially dilutive common shares | shares | 9,146 | 14,416 |
Unrecognized tax benefits | $ | $ 0 | $ 0 |
Company paid interest | $ | $ 1,258 | $ 0 |
Series A Convertible Preferred Stock | ||
Accounting Policies [Line Items] | ||
Preferred stock, shares outstanding | shares | 484,582 | 371,490 |
Reverse stock split | 3.5 | |
Percentage of change of control | $ | $ 60 | |
Number of potentially dilutive common shares | shares | 1,696,037 | 1,300,215 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Research and Development Costs Paid to Related Party | $ 5,784,862 | $ 6,114,541 |
TheraCour Pharma Inc | ||
Property and Equipment | 183,428 | 171,668 |
Account Payable - Related Party | 214,397 | 31,539 |
Research and Development Costs Paid to Related Party | $ 2,369,022 | $ 2,803,827 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Sep. 09, 2021 | Nov. 01, 2019 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
TheraCour Pharma Inc | |||||
Related Party Transaction [Line Items] | |||||
Percentage of direct costs | 30% | ||||
Other general and administrative expense | $ 2,000 | ||||
Percentage of net sales allocated for royalty payments | 15% | 15% | |||
Accounts payable | $ 679,397 | $ 522,539 | |||
Accounts payable offset by advance | 465,000 | 491,000 | |||
Accrued royalties | 0 | $ 0 | $ 0 | ||
Series A Preferred stock | TheraCour Pharma Inc | |||||
Related Party Transaction [Line Items] | |||||
Percentage of net sales allocated for royalty payments | 15% | ||||
Series A Preferred stock | COVID 19 License Agreement | Board of Directors Chairman | |||||
Related Party Transaction [Line Items] | |||||
License milestone payments | $ 935,088 | ||||
Series A Preferred stock | COVID 19 License Agreement | Board of Directors Chairman | TheraCour Pharma Inc | |||||
Related Party Transaction [Line Items] | |||||
Number of shares authorized | 100,000 |
Related Party Transactions - Mo
Related Party Transactions - Mortgage Note Payable - Related Party (Details) | 12 Months Ended | ||||
Dec. 16, 2019 USD ($) item shares | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jan. 01, 2022 USD ($) | Jan. 01, 2021 USD ($) | |
Related Party Transaction [Line Items] | |||||
Amount of loan | $ 234,198 | $ 235,476 | |||
Amount of interest payable escrowed | $ 132,000 | ||||
Amount of interest expense which reduced the interest escrow retained by the lender | 0 | $ 62,773 | |||
Interest Expense Which Reduced Interest Escrow Deposit Included in Prepaid Expenses | 0 | ||||
Series A Preferred stock | |||||
Related Party Transaction [Line Items] | |||||
Series A shares issued in exchange of deferred development fees owed (in shares) | shares | 10,000 | ||||
Series A shares issued in exchange of deferred development fees owed | $ 39,301 | ||||
Converted value to common shares | 3.5 | ||||
Amortization expense on loan origination fee | 0 | $ 18,013 | |||
Open End Mortgage Note | Founder, Chairman, President | |||||
Related Party Transaction [Line Items] | |||||
Number of tranches | item | 2 | ||||
Amount of loan per tranche | $ 1,000,000 | ||||
Interest rate per annum (as a percent) | 12% | ||||
Drew down amount | $ 1,100,000 | ||||
Open End Mortgage Note | Founder, Chairman, President | Maximum | |||||
Related Party Transaction [Line Items] | |||||
Amount of loan | $ 2,000,000 |
Property and Equipment - Proper
Property and Equipment - Property and Equipment (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Property and Equipment | ||
GMP Facility | $ 8,149,416 | $ 8,020,471 |
Land | 260,000 | 260,000 |
Office Equipment | 57,781 | 57,781 |
Furniture and Fixtures | 5,607 | 5,607 |
Lab Equipment | 6,185,210 | 5,989,807 |
Total Property and Equipment | 14,658,014 | 14,333,666 |
Less Accumulated Depreciation | (5,963,820) | (5,248,765) |
Property and Equipment, Net | $ 8,694,194 | $ 9,084,901 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Property and Equipment | ||
Depreciation expense | $ 715,055 | $ 696,268 |
Trademark and Patents - Tradema
Trademark and Patents - Trademark and Patents (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Trademark and Patents | ||
Trademarks and Patents | $ 458,954 | $ 458,954 |
Less Accumulated Amortization | (117,106) | (108,836) |
Trademarks and Patents, Net | $ 341,848 | $ 350,118 |
Trademark and Patents - Additio
Trademark and Patents - Additional Information (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Trademark and patents | ||
Trademarks And Patents [Line Items] | ||
Amortization expense | $ 8,270 | $ 8,270 |
Trademark and Patents - Amortiz
Trademark and Patents - Amortization Expense (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Trademark and Patents | ||
2023 | $ 8,271 | |
2024 | 8,271 | |
2025 | 8,271 | |
2026 | 8,271 | |
2027 | 8,271 | |
Thereafter | 300,493 | |
Trademarks and Patents, Net | $ 341,848 | $ 350,118 |
Accrued expenses (Details)
Accrued expenses (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Accrued expenses | ||
Personnel and compensation costs | $ 38,676 | $ 24,285 |
Consultant | 7,016 | 0 |
Accrued expenses | $ 45,692 | $ 24,285 |
Loan Payable (Details)
Loan Payable (Details) - USD ($) | 12 Months Ended | |||
Jan. 01, 2022 | Jan. 01, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Loan Payable | ||||
Loan balance | $ 234,198 | $ 235,476 | ||
Amount of loan repayment per month | $ 23,932 | $ 24,062 | ||
Interest rate | 4.74% | 4.74% | ||
Loan payable | $ 94,788 | $ 95,306 | ||
Interest expense | $ 5,123 | $ 4,858 |
Equity Transactions - Estimated
Equity Transactions - Estimated the fair value of warrants granted quarterly to the Scientific Advisory Board (Details) - Scientific Advisory Board | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Class of Stock [Line Items] | ||
Expected life (year) | 4 years | 4 years |
Expected volatility, minimum | 86% | 91.14% |
Expected volatility, maximum | 91% | 91.92% |
Expected annual rate of quarterly dividends | 0% | 0% |
Risk-free rate(s), minimum | 0.62% | 0.24% |
Risk-free rate(s), maximum | 2.84% | 0.58% |
Equity Transactions - Proceeds
Equity Transactions - Proceeds of offering (Details) - USD ($) | Mar. 02, 2021 | Jul. 10, 2020 |
Equity Transactions | ||
Gross proceeds | $ 6,374,211 | $ 11,499,997 |
Less: Offering costs and expenses | (252,730) | (1,057,781) |
Net proceeds from issuance of common stock | $ 6,121,481 | $ 10,442,216 |
Equity Transactions - Additiona
Equity Transactions - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||||||
Sep. 14, 2021 | Sep. 09, 2021 | Mar. 02, 2021 | Jul. 31, 2020 | Jul. 10, 2020 | Jul. 08, 2020 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Jul. 11, 2018 | |
Class of Stock [Line Items] | |||||||||||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||
Net proceeds from issuance of common stock | $ 6,121,481 | $ 10,442,216 | |||||||||||||
Maximum share of common stock having aggregate offering price | $ 16,563,697 | ||||||||||||||
Sales Agreement | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Maximum share of common stock having aggregate offering price | $ 50,000,000 | ||||||||||||||
ATM Offering | Sales Agreement | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Price of a share | $ 7.83 | ||||||||||||||
Shares issued | 814,242 | ||||||||||||||
Net proceeds from issuance of common stock | $ 6,100,000 | ||||||||||||||
Share price | $ 7.83 | ||||||||||||||
Purchase Agreement with Institutional Investors | Underwriting option | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Company agreed to issue and sell shares of common stock | 1,369,863 | ||||||||||||||
Common stock, par value (in dollars per share) | $ 0.001 | ||||||||||||||
Price of a share | $ 7.30 | $ 7.30 | |||||||||||||
Underwriters option to purchase additional shares (in shares) | 205,479 | 205,479 | |||||||||||||
Shares issued | 1,369,863 | ||||||||||||||
Net proceeds from issuance of common stock | $ 10,400,000 | ||||||||||||||
Warrants | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Granted fully vested to purchase shares of common stock | 2,288 | 2,288 | |||||||||||||
Consulting expense | $ 4,215 | $ 6,103 | |||||||||||||
Warrants | Minimum | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Exercise price | 1.46 | $ 1.46 | $ 3.94 | ||||||||||||
Warrants | Maximum | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Exercise price | $ 5.92 | $ 5.92 | $ 6.86 | ||||||||||||
Director | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Number of shares authorized | 17,705 | 17,705 | 13,166 | ||||||||||||
Stock-based compensation expense | $ 52,500 | $ 56,250 | |||||||||||||
Employee compensation | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Number of shares authorized | 3,572 | 3,572 | 3,572 | ||||||||||||
Stock-based compensation expense | $ 6,768 | $ 15,038 | |||||||||||||
Consulting services | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Number of shares authorized | 38,863 | 38,863 | 25,434 | ||||||||||||
Stock-based compensation expense | $ 108,000 | $ 108,000 | |||||||||||||
Accounts payable for consulting services | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Accounts payable | $ 35,750 | $ 35,750 | |||||||||||||
Accounts payable for consulting services | Restricted Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Number of shares authorized | 16,863 | 16,863 | |||||||||||||
Common Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Maximum share of common stock having aggregate offering price | $ 2,390 | ||||||||||||||
Series A Convertible Preferred Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Number of shares authorized | 2,888 | ||||||||||||||
Series A Convertible Preferred Stock | Director | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Shares vested | 33.33% | 33.33% | 33.33% | ||||||||||||
Series A Convertible Preferred Stock | Employee compensation | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Stock-based compensation expense | $ 43,696 | ||||||||||||||
Series A Preferred stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Stock-based compensation expense | $ 935,088 | $ 108,982 | $ 182,610 | ||||||||||||
Vested and exercisable | 100,000 | 2,551 | 2,551 | 2,551 | 2,551 | ||||||||||
Series A Preferred stock | President | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Number of shares authorized | 26,250 | ||||||||||||||
Number of shares, granted | 10,204 | ||||||||||||||
Series A Preferred stock | Employee compensation | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Stock-based compensation expense | $ 26,418 | ||||||||||||||
Number of shares, granted | 2,888 |
Stock Options and Warrants - St
Stock Options and Warrants - Stock options (Details) - Stock Options - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Outstanding and exercisable | 5,000 | 5,000 | |
Number of shares, granted | 0 | 0 | |
Number of Shares, Exercised | 0 | 0 | |
Number of Shares, Forfeited | 0 | 0 | |
Number of shares, Canceled | 0 | ||
Number of Shares, Expired | 5,000 | ||
Number of Shares, Outstanding and exercisable | 0 | 5,000 | 5,000 |
Weighted Average Exercise Price per share, Outstanding and exercisable (dollars per share) | $ 10 | $ 10 | |
Weighted Average Exercise Price per share, Granted (dollars per share) | 0 | 0 | |
Weighted Average Exercise Price per share, Exercised (dollars per share) | 0 | 0 | |
Weighted Average Exercise Price per share, Forfeited (dollars per share) | 0 | 0 | |
Weighted Average Exercise Price per share, Expired (dollars per share) | 0 | ||
Weighted Average Exercise Price per share, Canceled (dollars per share) | 0 | ||
Weighted Average Exercise Price per share, Outstanding and exercisable (dollars per share) | $ 0 | $ 10 | $ 10 |
Weighted Average Remaining Contractual Term (years), Granted | 0 years | 0 years | |
Weighted Average Remaining Contractual Term (years), Forfeited | 0 years | 0 years | |
Weighted Average Remaining Contractual Term (years), Exercised | 0 years | 0 years | |
Weighted Average Remaining Contractual Term (years), Expired | 0 years | ||
Weighted Average Remaining Contractual Term (years), Canceled | 0 years | ||
Weighted Average Remaining Contractual Term (years), Outstanding and exercisable | 0 years | 1 month 28 days | 1 year 1 month 28 days |
Aggregate Intrinsic Value, Outstanding and exercisable (in dollars) | $ 0 | $ 0 | $ 0 |
Aggregate Intrinsic Value, Granted (in dollars) | 0 | 0 | |
Aggregate Intrinsic Value, Forfeited (in dollars) | 0 | 0 | |
Aggregate Intrinsic Value, Exercised (in dollars) | 0 | 0 | |
Aggregate Intrinsic Value, Canceled (in dollars) | $ 0 | ||
Aggregate Intrinsic Value, Expired (in dollars) | $ 0 |
Stock Options and Warrants - _2
Stock Options and Warrants - Stock Warrants (Details) - Stock Warrants - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Outstanding and exercisable | 9,146 | 22,218 | |
Number of shares, granted | 2,288 | 2,288 | |
Number of Shares, Exercised | 0 | 0 | |
Number of Shares, Expired | 2,288 | 2,860 | |
Number of shares, Canceled | 0 | 12,500 | |
Number of Shares, Outstanding and exercisable | 9,146 | 9,146 | 22,218 |
Weighted Average Exercise Price per share, Outstanding and exercisable (dollars per share) | $ 10.80 | $ 30.82 | |
Weighted Average Exercise Price per share, Granted (dollars per share) | 3.68 | 5.26 | |
Weighted Average Exercise Price per share, Exercised (dollars per share) | 0 | 0 | |
Weighted Average Exercise Price per share, Expired (dollars per share) | 22.63 | 34.26 | |
Weighted Average Exercise Price per share, Canceled (dollars per share) | 0 | 40 | |
Weighted Average Exercise Price per share, Outstanding and exercisable (dollars per share) | $ 6.06 | $ 10.80 | $ 30.82 |
Weighted Average Remaining Contractual Term (years), Granted | 3 years 6 months | 0 years | |
Weighted Average Remaining Contractual Term (years), Exercisable | 0 years | 0 years | |
Weighted Average Remaining Contractual Term (years), Expired | 0 years | 0 years | |
Weighted Average Remaining Contractual Term (years), Canceled | 0 years | 0 years | |
Weighted Average Remaining Contractual Term (years), Outstanding and exercisable | 2 years | 2 years | 2 years 3 months 10 days |
Aggregate Intrinsic Value, Outstanding and exercisable (in dollars) | $ 238 | $ 1,943 | $ 4,533 |
Aggregate Intrinsic Value, Granted (in dollars) | 0 | 0 | |
Aggregate Intrinsic Value, Exercised (in dollars) | 0 | 0 | |
Aggregate Intrinsic Value, Expired (in dollars) | 0 | 0 | |
Aggregate Intrinsic Value, Canceled (in dollars) | $ 0 | $ 0 |
Stock Options and Warrants - Ad
Stock Options and Warrants - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Sep. 01, 2018 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 0 | |||
June 30, 2023 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Warrants exercisable | 2,287 | |||
June 30 2024 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Warrants exercisable | 2,287 | |||
June 30, 2025 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Warrants exercisable | 2,286 | |||
June 30, 2026 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Warrants exercisable | 2,288 | |||
Dr Taraporewala | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, granted | 15,000 | |||
Vested and exercisable | 5,000 | |||
Compensation expense recognized | $ 0 | $ 0 | $ 0 |
Income Tax Provision - Computat
Income Tax Provision - Computation of Income Tax Expense (Details) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Provision | ||
Federal Statutory Rate | (21.00%) | (21.00%) |
Research and Development Credit | 8.90% | 0.62% |
State Tax Rate | (5.93%) | (5.93%) |
Stock Based Compensation | 0% | 0% |
Other | 2.73% | 0% |
Valuation Allowance | 15.30% | 26.31% |
Effective Tax Rate | 0% | 0% |
Income Tax Provision - Componen
Income Tax Provision - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Income Tax Provision | ||
Net operating loss | $ 27,127,620 | $ 26,676,579 |
Research and development credit | 7,774,567 | 7,053,228 |
Other | 1,604,592 | 1,536,892 |
Total gross deferred tax assets | 36,506,779 | 35,266,699 |
Less: valuation allowance | (36,506,779) | (35,266,699) |
Net deferred tax asset | $ 0 | $ 0 |
Income Tax Provision - Addition
Income Tax Provision - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Jan. 01, 2018 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Deferred tax assets, valuation allowance | $ 36,506,779 | $ 35,266,699 | ||
Net operating loss that can be carried forward indefinitely | 16,100,000 | $ 16,100,000 | ||
Net operating losses income tax payable | 80% | |||
Current tax expense | 0 | |||
Federal income tax rate | 21% | 21% | ||
Domestic Tax Authority | Research and development credit carryforwards | ||||
Tax credit carryforwards | 7,774,567 | |||
State and Local Jurisdiction | ||||
Effective income tax rate reconciliation, increase in deferred tax assets valuation allowance, amount | 1,240,080 | |||
Operating loss carryforwards | $ 100,900,000 | |||
State and Local Jurisdiction | Research and development credit carryforwards | ||||
Tax credit carryforwards | $ 7,053,228 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||||||||||
Oct. 06, 2022 | Sep. 09, 2021 | Nov. 01, 2019 | Sep. 01, 2018 | Jul. 01, 2018 | Jan. 01, 2015 | May 30, 2013 | Mar. 03, 2010 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Feb. 01, 2019 | Mar. 31, 2010 | |
Commitments and Contingencies | ||||||||||||||||||
Common stock, shares issued | 11,592,173 | 11,592,173 | 11,515,170 | |||||||||||||||
Employment agreement term | 3 years | |||||||||||||||||
Cash upon completion of Phase I Clinical Trials | $ 1,500,000 | |||||||||||||||||
Cash upon completion of Phase II Clinical Trials | 2,500,000 | |||||||||||||||||
Cash upon completion of Phase III Clinical Trials | $ 5,000,000 | |||||||||||||||||
TheraCour Pharma Inc | ||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||
Percentage of net sales allocated for royalty payments | 15% | 15% | ||||||||||||||||
Issuance of shares | 75,000 | |||||||||||||||||
Cash upon completion of Phase I Clinical Trials | $ 1,500,000 | |||||||||||||||||
Cash upon completion of Phase II Clinical Trials | 2,500,000 | |||||||||||||||||
Cash upon completion of Phase III Clinical Trials | $ 5,000,000 | |||||||||||||||||
Series A Preferred stock | ||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||
Share-based compensation arrangement by share-based payment award, options, vested, number of shares | 100,000 | 2,551 | 2,551 | 2,551 | 2,551 | |||||||||||||
Issuance of shares | 75,000 | |||||||||||||||||
Series A Preferred stock | TheraCour Pharma Inc | ||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||
Percentage of net sales allocated for royalty payments | 15% | |||||||||||||||||
Number of shares issuable upon execution of agreement | 100,000 | |||||||||||||||||
Threshold period for issuance of shares upon execution of agreement | 30 days | |||||||||||||||||
Issuance of shares | 50,000 | |||||||||||||||||
Shares value upon initiation of Phase I Clinical Trials | $ 1,500,000 | |||||||||||||||||
Cash upon completion of Phase I Clinical Trials | 2,000,000 | |||||||||||||||||
Cash upon completion of Phase II Clinical Trials | 2,500,000 | |||||||||||||||||
Shares value upon initiation of Phase III Clinical Trials | 100,000 | |||||||||||||||||
Cash upon completion of Phase III Clinical Trials | 5,000,000 | |||||||||||||||||
Shares value upon completion of Phase III Clinical Trials | $ 500,000 | |||||||||||||||||
President And Board Of Directors, Chairman | ||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||
Base salary | $ 400,000 | $ 400,000 | $ 400,000 | |||||||||||||||
Employment agreement term | 1 year | |||||||||||||||||
President And Board Of Directors, Chairman | Series A Preferred stock | ||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||
Deferred compensation arrangement with individual, shares authorized for issuance | 26,250 | 26,250 | ||||||||||||||||
Employment agreement term | 3 years | |||||||||||||||||
President And Board Of Directors, Chairman | Series A Preferred stock | Share-based Compensation Award, Tranche One | ||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||
Share-based compensation arrangement by share-based payment award, options, vested, number of shares | 8,750 | |||||||||||||||||
President And Board Of Directors, Chairman | Series A Preferred stock | Share-based Compensation Award, Tranche Two | ||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||
Share-based compensation arrangement by share-based payment award, options, vested, number of shares | 8,750 | |||||||||||||||||
President And Board Of Directors, Chairman | Series A Preferred stock | Share-based Compensation Award, Tranche Three | ||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||
Share-based compensation arrangement by share-based payment award, options, vested, number of shares | 8,750 | |||||||||||||||||
Chief Scientific Officer | ||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||
Common stock, shares issued | 1,786 | |||||||||||||||||
Additional common stock shares issued | 1,786 | |||||||||||||||||
Increase In base salary | $ 150,000 | |||||||||||||||||
Employment agreement term | 4 years | |||||||||||||||||
Vice President | ||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||
Common stock, shares issued | 1,786 | |||||||||||||||||
Additional common stock shares issued | 1,786 | |||||||||||||||||
Preferred stock, shares issued | 1,340 | |||||||||||||||||
Additional preferred stock shares issued | 1,340 | |||||||||||||||||
Increase In base salary | $ 150,000 | |||||||||||||||||
Employment agreement term | 4 years | |||||||||||||||||
Chief Financial Officer | ||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||
Increase In base salary | $ 10,800 | $ 9,000 | ||||||||||||||||
Employment agreement term | 3 years | |||||||||||||||||
Chief Financial Officer | Series A Preferred stock | ||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||
Preferred stock, shares issued | 129 | |||||||||||||||||
Dr Taraporewala | ||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||
Share-based compensation arrangement by share-based payment award, options, vested, number of shares | 5,000 | |||||||||||||||||
Consulting agreement period | 2 years | |||||||||||||||||
Consulting services payments | $ 3,000 | |||||||||||||||||
Share-based compensation arrangement by share-based payment award, options, non-vested options forfeited, number of shares | 10,000 | |||||||||||||||||
Chief Executive Officer | ||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||
Base salary | $ 360,000 | |||||||||||||||||
Deferred compensation arrangement with individual, shares authorized for issuance | 15,000 | 15,000 | ||||||||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 2 years | |||||||||||||||||
Chief Executive Officer | Share-based Compensation Award, Tranche One | ||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||
Share-based compensation arrangement by share-based payment award, options, vested, number of shares | 5,000 | |||||||||||||||||
Dr. Anil Diwan | Series A Preferred stock | ||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||
Deferred compensation arrangement with individual, shares authorized for issuance | 10,204 | 10,204 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 12 Months Ended | ||||
Oct. 06, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2022 | |
President And Board Of Directors, Chairman | |||||
Subsequent Event | |||||
Base salary for July 1, 2022 to June 30, 2023 | $ 400,000 | $ 400,000 | $ 400,000 | ||
Series A Preferred stock | President And Board Of Directors, Chairman | |||||
Subsequent Event | |||||
Deferred compensation arrangement with individual, shares authorized for issuance | 26,250 | ||||
Subsequent event | President And Board Of Directors, Chairman | |||||
Subsequent Event | |||||
Term life insurance value | $ 2,000,000 | ||||
Term life insurance value assigned to company | 1,000,000 | ||||
Subsequent event | President | |||||
Subsequent Event | |||||
Base salary for July 1, 2022 to June 30, 2023 | $ 400,000 | ||||
Subsequent event | Series A Preferred stock | President | |||||
Subsequent Event | |||||
Deferred compensation arrangement with individual, shares authorized for issuance | 10,204 | ||||
Preferred stock, par value (in dollars per share) | $ 0.001 |