Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2017 | Nov. 09, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | PALATIN TECHNOLOGIES INC | |
Entity Central Index Key | 911,216 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 190,310,236 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2017 | Jun. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 39,708,573 | $ 40,200,324 |
Available-for-sale investments | 249,969 | 249,837 |
Accounts receivable | 9,389,722 | 15,116,822 |
Prepaid expenses and other current assets | 939,985 | 1,011,221 |
Total current assets | 50,288,249 | 56,578,204 |
Property and equipment, net | 193,037 | 198,153 |
Other assets | 56,916 | 56,916 |
Total assets | 50,538,202 | 56,833,273 |
Current liabilities: | ||
Accounts payable | 2,033,638 | 1,551,367 |
Accrued expenses | 9,384,423 | 10,521,098 |
Notes payable, net of discount and debt issuance costs | 7,857,231 | 7,824,935 |
Capital lease obligations | 7,214 | 14,324 |
Deferred revenue | 20,160,381 | 35,050,572 |
Total current liabilities | 39,442,887 | 54,962,296 |
Notes payable, net of discount and debt issuance costs | 4,305,241 | 6,281,660 |
Other non-current liabilities | 814,396 | 753,961 |
Total liabilities | 44,562,524 | 61,997,917 |
Stockholders’ equity (deficiency): | ||
Preferred stock of $0.01 par value – authorized 10,000,000 shares: Series A Convertible: issued and outstanding 4,030 shares as of September 30, 2017 and June 30, 2017 | 40 | 40 |
Common stock of $0.01 par value – authorized 300,000,000 shares: issued and outstanding 184,393,007 shares as of September 30, 2017 and 160,515,361 shares as of June 30, 2017, respectively | 1,843,930 | 1,605,153 |
Additional paid-in capital | 350,276,851 | 349,974,538 |
Accumulated other comprehensive loss | (153) | (590) |
Accumulated deficit | (346,144,990) | (356,743,785) |
Total stockholders’ equity (deficiency) | 5,975,678 | (5,164,644) |
Total liabilities and stockholders’ equity (deficiency) | $ 50,538,202 | $ 56,833,273 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Jun. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, Series A Convertible, shares issued | 4,030 | 4,030 |
Preferred stock, Series A Convertible, shares outstanding | 4,030 | 4,030 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 184,393,007 | 160,515,361 |
Common stock, shares outstanding | 184,393,007 | 160,515,361 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
REVENUES: | ||
License and contract revenue | $ 26,941,508 | $ 0 |
OPERATING EXPENSES: | ||
Research and development | 14,163,097 | 11,226,084 |
General and administrative | 1,544,575 | 1,209,346 |
Total operating expenses | 15,707,672 | 12,435,430 |
Income (Loss) from operations | 11,233,836 | (12,435,430) |
OTHER INCOME (EXPENSE): | ||
Interest income | 51,726 | 6,645 |
Interest expense | (456,677) | (623,985) |
Total other expense, net | (404,951) | (617,340) |
Income (Loss) before income taxes | 10,828,885 | (13,052,770) |
Income tax expense | (225,255) | 0 |
NET INCOME (LOSS) | $ 10,603,630 | $ (13,052,770) |
Basic net income (loss) per common share | $ 0.05 | $ (0.08) |
Diluted net income (loss) per common share | $ 0.05 | $ (0.08) |
Weighted average number of common shares outstanding used in computing basic net income (loss) per common share | 197,112,400 | 165,848,269 |
Weighted average number of common shares outstanding used in computing diluted net income (loss) per common share | 201,360,736 | 165,848,269 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Consolidated Statements Of Comprehensive Loss | ||
Net income (loss) | $ 10,603,630 | $ (13,052,770) |
Other comprehensive loss: | ||
Unrealized gain (loss) on available-for-sale investments | 437 | (577) |
Total comprehensive income (loss) | $ 10,604,067 | $ (13,053,347) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 10,603,630 | $ (13,052,770) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 14,616 | 7,630 |
Non-cash interest expense | 56,182 | 82,266 |
Stock-based compensation | 421,871 | 403,208 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 5,727,100 | 0 |
Prepaid expenses and other assets | 71,236 | 312,160 |
Accounts payable | 482,271 | 445,537 |
Accrued expenses | (1,112,295) | 5,116,857 |
Deferred revenue | (14,890,191) | 0 |
Other non-current liabilities | 60,435 | 86,184 |
Net cash provided by (used in) operating activities | 1,434,855 | (6,598,928) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (9,500) | 0 |
Net cash used in investing activities | (9,500) | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments on capital lease obligations | (7,110) | (6,707) |
Payment of withholding taxes related to restricted stock units | (24,380) | 0 |
Payments on notes payable obligations | (2,000,000) | (1,000,000) |
Proceeds from exercise of warrants | 114,384 | 0 |
Proceeds from the sale of warrants, net of costs | 0 | 8,470,897 |
Net cash (used in) provided by financing activities | (1,917,106) | 7,464,190 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (491,751) | 865,262 |
CASH AND CASH EQUIVALENTS, beginning of period | 40,200,324 | 8,002,668 |
CASH AND CASH EQUIVALENTS, end of period | 39,708,573 | 8,867,930 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for interest | 340,365 | 457,800 |
Unrealized gain (loss) on available-for-sale investments | 437 | (577) |
Non-cash equity financing costs in accounts payable | 0 | 21,029 |
Non-cash equity financing costs in accrued expenses | $ 0 | $ 65,000 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | Nature of Business The Company’s primary product in development is bremelanotide for the treatment of hypoactive sexual desire disorder (“HSDD”), which is a type of female sexual dysfunction (“FSD”). The Company also has drug candidates or development programs for cardiovascular diseases, including heart failure and fibrosis, and inflammatory diseases, including inflammatory bowel disease and ocular indications. Key elements of the Company’s business strategy include using its technology and expertise to develop and commercialize therapeutic products; entering into alliances and partnerships with pharmaceutical companies to facilitate the development, manufacture, marketing, sale and distribution of product candidates that the Company is developing; and partially funding its product candidate development programs with the cash flow generated from its relationships with third parties. Business Risk and Liquidity – On September 6, 2017, the Company entered into a license agreement with Fosun for exclusive rights to develop and commercialize bremelanotide in the territories of mainland China, Taiwan, Hong Kong S.A.R. and Macau S.A.R. (“License Agreement with Fosun”) (Note 6). As of September 30, 2017, the Company’s cash, cash equivalents, accounts receivable and investments were $49,348,264 and current liabilities were $19,282,506, net of deferred revenue of $20,160,381. The Company intends to utilize existing capital resources for general corporate purposes and working capital, including required ancillary studies with bremelanotide for HSDD preparatory to filing a New Drug Application (“NDA”) with the U.S. Food and Drug Administration (“FDA”), and preclinical and clinical development of the Company’s other product candidates and programs, including natriuretic peptide receptor and melanocortin receptor programs. Management believes that its existing capital resources will be sufficient to fund its planned operations through at least the 2018 calendar year. The Company will need additional funding to complete required clinical trials for its other product candidates and, assuming those clinical trials are successful, as to which there can be no assurance, to complete submission of required applications to the FDA. If the Company is unable to obtain approval or otherwise advance in the FDA approval process, the Company’s ability to sustain its operations would be materially adversely affected. The Company may seek the additional capital necessary to fund its operations through public or private equity offerings, collaboration agreements, debt financings or licensing arrangements. Additional capital that is required by the Company may not be available on reasonable terms, or at all. Concentrations – |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnote disclosures required to be presented for complete financial statements. In the opinion of management, these consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) considered necessary for fair presentation. The results of operations for the three months ended September 30, 2017 may not necessarily be indicative of the results of operations expected for the full year. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2017, filed with the SEC, which includes consolidated financial statements as of June 30, 2017 and 2016 and for each of the fiscal years in the three-year period ended June 30, 2017. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Principles of Consolidation Use of Estimates Cash and Cash Equivalents Investments The fair value of substantially all securities is determined by quoted market prices. The estimated fair value of securities for which there are no quoted market prices is based on similar types of securities that are traded in the market. Fair Value of Financial Instruments Credit Risk Property and Equipment Impairment of Long-Lived Assets Revenue Recognition Revenue Recognition for Arrangements with Multiple Elements ● the delivered item has value to the customer on a stand-alone basis; and ● if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially in control of the vendor. Under FASB ASC Topic 605-25, if both of the criteria above are not met, then separate accounting for the individual deliverables is not appropriate. The Company has determined that it is appropriate to recognize such revenue using the input-based proportional method during the period of the Palatin Development Obligation as defined in the AMAG arrangement. Refer to Note 5 for additional information on this topic. Under its License Agreement with Fosun (Note 6), the Company received consideration in the form of a license fee and has determined that it is appropriate to recognize such revenue in the quarter ended September 30, 2017, since the license has stand-alone value and is non-refundable. Revenue resulting from the achievement of development milestones is recorded in accordance with the accounting guidance for the milestone method of revenue recognition. Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue on the Company’s consolidated balance sheet. Amounts expected to be recognized as revenue in the next 12 months following the balance sheet date are classified as current liabilities. Research and Development Costs Accrued Expenses – Stock-Based Compensation – Income Taxes Pursuant to the License Agreement with Fosun (Note 6), $500,000 was withheld in accordance with tax withholding requirements in China and will be recorded as an expense during the fiscal year ending June 30, 2018. For the quarter ended September 30, 2017, the Company incurred $225,255 in income tax expense and the remaining balance of $274,745 was included in prepaid expenses and other current assets at September 30, 2017. Any potential credit to be received by the Company on its United States tax returns is currently offset by the Company’s valuation allowance. Net Income (Loss) per Common Share Earnings per Share The Series A 2012 warrants issued on July 3, 2012 to purchase up to 31,988,151 shares of common stock were included in the weighted average number of common shares outstanding used in computing basic and diluted net income (loss) per common share starting on July 3, 2012. As of September 30, 2017 and 2016, there were no Series A 2012 warrants outstanding. The Series B 2012 warrants issued on July 3, 2012 to purchase up to 35,488,380 shares of common stock were considered contingently issuable shares and were not included in computing basic and diluted net income (loss) per common share until September 27, 2012, the date the Company received stockholder approval for the increase in the authorized underlying common stock. As of September 30, 2017, there were no Series B 2012 warrants outstanding. As of September 30, 2016, Series B 2012 warrants to purchase up to 30,679,631 shares of common stock were outstanding. The Series C 2014 warrants to purchase up to 24,949,325 shares of common stock were exercisable starting on December 23, 2014 and therefore were included in the weighted average number of common shares outstanding used in computing basic and diluted net income (loss) per common share starting on December 23, 2014. As of September 30, 2017 and 2016, Series C warrants to purchase up to 11,116,667 and 24,949,325 shares of common stock, respectively, were outstanding. The Series E 2015 warrants to purchase up to 21,917,808 shares of common stock were exercisable starting on July 2, 2015 and therefore were included in the weighted average number of common shares outstanding used in computing basic and diluted net income (loss) per common share starting on July 2, 2015. As of September 30, 2017, there were no Series E 2015 warrants outstanding. As of September 30, 2016, Series E 2015 warrants to purchase up to 21,917,808 shares of common stock were outstanding. The Series I 2016 warrants to purchase up to 2,218,045 shares of common stock were exercisable starting on August 4, 2016 and, therefore were included in the weighted average number of common shares outstanding used in computing basic and diluted net income (loss) per common share starting on August 4, 2016 (Note 12). As of September 30, 2016 there were no Series I 2016 warrants outstanding. The following table is a reconciliation of net income (loss) and the shares used in calculating basic and diluted net income (loss) per common share for the three months ended September 30, 2017 and 2016: Three Months Ended September 30, 2017 2016 Numerator: Net income (loss) $ 10,603,630 $ (13,052,770 ) Denominator: Weighted average common shares outstanding - Basic 197,112,400 165,848,269 Effect of dilutive shares: Common stock equivalents arising from stock options and warrants 1,413,791 - Restriced stock units 2,834,545 - Weighted average common shares outstanding - Diluted 201,360,736 165,848,269 Net income (loss) per common share: Basic $ 0.05 $ (0.08 ) Diluted $ 0.05 $ (0.08 ) For the three months ended September 30, 2017 and 2016, common shares issuable upon conversion of Series A Convertible Preferred Stock, the exercise of outstanding options and warrants (excluding the Series A 2012, Series B 2012, Series C 2014, Series E 2015 and Series I 2016 warrants issued in connection with the July 3, 2012, December 23, 2014, and July 2, 2015 private placement offerings and the August 4, 2016 underwritten offering as such warrants, to the extent not yet exercised, are already included in weighted average number of common shares outstanding used in computing basic net income (loss) per common share since they are exercisable for nominal consideration), and the vesting of restricted stock units amounted to an aggregate of 40,626,830 and 44,479,663 shares, respectively, and are excluded from the weighted average number of common shares outstanding used in computing basic net income (loss) per common share. For the three months ended September 30, 2017, an additional 4,248,336 of common shares have been included in the computation of diluted EPS using the treasury stock method. However, for the three months ended September 30, 2016, no additional common shares were added in the computation of diluted EPS because to do so would have been anti-dilutive. |
NEW AND RECENTLY ADOPTED ACCOUN
NEW AND RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
NEW AND RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS | In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments Credit Losses: Measurement of Credit Losses on Financial Instruments, In March 2016, the FASB issued ASU No. 2016-09, Compensation – Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU No. 2016-02, Leases In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities In November 2015, the FASB issued ASU No. 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers Identifying Performance Obligations and Licensing |
AGREEMENT WITH AMAG
AGREEMENT WITH AMAG | 3 Months Ended |
Sep. 30, 2017 | |
Agreement With Amag | |
AGREEMENT WITH AMAG | On January 8, 2017, the Company entered into the License Agreement with AMAG. Under the terms of the License Agreement with AMAG, the Company granted to AMAG (i) an exclusive license in all countries of North America (the “Territory”), with the right to grant sub-licenses, to research, develop and commercialize products containing bremelanotide (each a “Product,” and collectively, “Products”), (ii) a non-exclusive license in the Territory, with the right to grant sub-licenses, to manufacture Products, and (iii) a non-exclusive license in all countries outside the Territory, with the right to grant sub-licenses, to research, develop and manufacture (but not commercialize) the Products. Following the satisfaction of certain conditions to closing, the License Agreement with AMAG became effective on February 2, 2017. On that date, AMAG paid the Company $60,000,000 as a one-time initial payment. Pursuant to the terms of and subject to the conditions in the License Agreement with AMAG, AMAG is required to reimburse the Company up to an aggregate amount of $25,000,000 for reasonable, documented, direct out-of-pocket expenses incurred by the Company following February 2, 2017, in connection with the development and regulatory activities necessary to file an NDA for bremelanotide for HSDD in the United States related to Palatin’s development obligations. The Company has determined there is no stand-alone value for the license, and that the license and the reimbursable direct out-of-pocket expenses, pursuant to the terms of the License Agreement with AMAG, represent a combined unit of accounting which totals $85,000,000. The Company is recognizing revenue of the combined unit of accounting over the arrangement using the input-based proportional method as the Company completes its development obligations. For the three months ended September 30, 2017, the Company recognized $21,941,508 as license and contract revenue related to this transaction. As of September 30, 2017 and June 30, 2017, there was $20,160,381 and $35,050,572, respectively, of current deferred revenue on the consolidated balance sheet related to this transaction. In addition, pursuant to the terms of and subject to the conditions in the License Agreement with AMAG, the Company is eligible to receive from AMAG: (i) up to $80,000,000 in specified regulatory payments upon achievement of certain regulatory milestones, and (ii) up to $300,000,000 in sales milestone payments based on achievement of annual net sales amounts for all Products in the Territory. AMAG is also obligated to pay the Company tiered royalties on annual net sales of Products, on a product-by-product basis, in the Territory ranging from the high single-digits to the low double-digits. The royalties will expire on a product-by-product and country-by-country basis until the latest to occur of (i) the earliest date on which there are no valid claims of the Company’s patent rights covering such Product in such country, (ii) the expiration of the regulatory exclusivity period for such Product in such country and (iii) ten years following the first commercial sale of such Product in such country. Such royalties are subject to reductions in the event that: (a) AMAG must license additional third party intellectual property in order to develop, manufacture or commercialize a Product, or (b) generic competition occurs with respect to a Product in a given country, subject to an aggregate cap on such deductions of royalties otherwise payable to the Company. After the expiration of the applicable royalties for any Product in a given country, the license for such Product in such country will become a fully paid-up, royalty-free, perpetual and irrevocable license. The Company engaged Greenhill & Co. LLC (“Greenhill”) as the Company’s sole financial advisor in connection with a potential transaction with respect to bremelanotide. Under the engagement agreement with Greenhill, the Company was obligated to pay Greenhill a fee equal to 2% of all proceeds and consideration paid to the Company by AMAG in connection with the License Agreement with AMAG, subject to a minimum fee of $2,500,000. The minimum fee of $2,500,000, less credit of $50,000 for an advisory fee previously paid by the Company, was paid to Greenhill upon the closing of the licensing transaction. This amount will be credited toward amounts that become due to Greenhill in the future, provided that the aggregate fee payable to Greenhill will not be less than 2% of all proceeds and consideration paid to the Company by AMAG in connection with the License Agreement with AMAG. The Company will pay Greenhill an aggregate total of 2% of all proceeds and consideration paid to the Company by AMAG in connection with the License Agreement with AMAG, including future milestone and royalty payments, after crediting the $2,500,000 that was paid to Greenhill upon entering into the License Agreement with AMAG. The Company also reimbursed Greenhill $7,263 for certain expenses incurred in connection with its advisory services. Pursuant to the License Agreement with AMAG, the Company has assigned to AMAG the Company’s manufacturing and supply agreements with Catalent Belgium S.A. to perform fill, finish and packaging of bremelanotide. |
AGREEMENT WITH FOSUN
AGREEMENT WITH FOSUN | 3 Months Ended |
Sep. 30, 2017 | |
Agreement With Fosun | |
AGREEMENT WITH FOSUN | On September 6, 2017, the Company entered into the License Agreement with Fosun for exclusive rights to commercialize bremelanotide in the territories of mainland China, Taiwan, Hong Kong S.A.R. and Macau S.A.R. Under the terms of the agreement, the Company received $4,500,000 in October 2017, consisting of an upfront payment of $5,000,000 less $500,000 which was withheld in accordance with tax withholding requirements in China and will be recorded as an expense during the fiscal year ending June 30, 2018. For the quarter ended September 30, 2017, the Company incurred $225,255 in income tax expense utilizing an estimated effective annual income tax rate applied to income for the quarter and the remaining balance of $274,745 was included in prepaid expenses and other current assets at September 30, 2017. The Company will receive a $7,500,000 milestone payment when regulatory approval in China is obtained provided that a commercial supply agreement for bremelanotide has been entered into. Palatin has the potential to receive up to an additional $92,500,000 in sales related milestone payments and high single-digit to low double-digit royalties on net sales in the licensed territory. All development, regulatory, sales, marketing, and commercial activities and associated costs in the licensed territory will be the sole responsibility of Fosun. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 3 Months Ended |
Sep. 30, 2017 | |
Prepaid Expenses And Other Current Assets | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | Prepaid expenses and other current assets consist of the following: September 30, 2017 June 30, 2017 Clinical study costs $ 309,653 $ 657,069 Insurance premiums 118,439 182,966 Chinese withholding tax (Note 6) 274,745 - Other 237,148 171,186 $ 939,985 $ 1,011,221 |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Sep. 30, 2017 | |
Investments | |
INVESTMENTS | The following summarizes the carrying value of the Company’s available-for-sale investments, which consist of corporate debt securities: September 30, 2017 June 30, 2017 Cost $ 262,023 $ 262,023 Amortization of premium (11,901 ) (11,596 ) Gross unrealized loss (153 ) (590 ) Fair value $ 249,969 $ 249,837 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | The fair value of cash equivalents is classified using a hierarchy prioritized based on inputs. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on management’s own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The following table provides the assets carried at fair value measured on a recurring basis: Carrying Value Quoted prices in active markets (Level 1) Other quoted/observable inputs (Level 2) Significant unobservable inputs (Level 3) September 30, 2017: Money market account $ 38,377,583 $ 38,377,583 $ - $ - Corporate debt securities 249,969 249,969 - - TOTAL $ 38,627,552 $ 38,627,552 $ - $ - June 30, 2017: Money market account $ 40,019,336 $ 40,019,336 $ - $ - Corporate debt securities 249,837 249,837 - - TOTAL $ 40,269,173 $ 40,269,173 $ - $ - |
ACCRUED EXPENSES
ACCRUED EXPENSES | 3 Months Ended |
Sep. 30, 2017 | |
Accrued Expenses | |
ACCRUED EXPENSES | Accrued expenses consist of the following: September 30, 2017 June 30, 2017 Clinical study costs $ 9,021,304 $ 9,138,827 Other research related expenses 191,540 217,307 Professional services 52,574 434,768 Other 119,005 730,196 $ 9,384,423 $ 10,521,098 |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | Notes payable consist of the following: September 30, 2017 June 30, 2017 Notes payable under venture loan $ 12,333,334 $ 14,333,334 Unamortized related debt discount (108,553 ) (143,524 ) Unamortized debt issuance costs (62,309 ) (83,215 ) Notes payable 12,162,472 14,106,595 Less: current portion 7,857,231 7,824,935 Long-term portion $ 4,305,241 $ 6,281,660 On December 23, 2014, the Company closed on a $10,000,000 venture loan which was led by Horizon Technology Finance Corporation (“Horizon”). The debt facility is a four year senior secured term loan that bears interest at a floating coupon rate of one-month LIBOR (floor of 0.50%) plus 8.50%, and provides for interest-only payments for the first eighteen months followed by monthly payments of principal of $333,333 plus accrued interest through January 1, 2019. The lenders also received five-year immediately exercisable Series D 2014 warrants to purchase 666,666 shares of common stock exercisable at an exercise price of $0.75 per share. The Company recorded a debt discount of $267,820 equal to the fair value of these warrants at issuance, which is being amortized to interest expense over the term of the related debt. This debt discount is offset against the note payable balance and included in additional paid-in capital on the Company’s balance sheet at September 30, 2017 and June 30, 2017. In addition, a final incremental payment of $500,000 is due on January 1, 2019, or upon early repayment of the loan. This final incremental payment is being accreted to interest expense over the term of the related debt. The Company incurred $209,367 of costs in connection with the loan. These costs were capitalized as deferred financing costs and are offset against the note payable balance. These debt issuance costs are being amortized to interest expense over the term of the related debt. In addition, if the Company repays all or a portion of the loan prior to the applicable maturity date, it will pay the lenders a prepayment penalty fee, based on a percentage of the then outstanding principal balance, equal to 3% if the prepayment occurs on or before 18 months after the funding date thereof or 1% if the prepayment occurs more than 18 months after, but on or before 30 months after, the funding date. On July 2, 2015, the Company closed on a $10,000,000 venture loan led by Horizon. The debt facility is a four-year senior secured term loan that bears interest at a floating coupon rate of one-month LIBOR (floor of 0.50%) plus 8.50% and provides for interest-only payments for the first eighteen months followed by monthly payments of principal of $333,333 plus accrued interest through August 1, 2019. The lenders also received five-year immediately exercisable Series G warrants to purchase 549,450 shares of the Company’s common stock exercisable at an exercise price of $0.91 per share. The Company has recorded a debt discount of $305,196 equal to the fair value of these warrants at issuance, which is being amortized to interest expense over the term of the related debt. This debt discount is offset against the note payable balance and is included in additional paid-in capital on the Company’s balance sheet at September 30, 2017, and June 30, 2017. In addition, a final incremental payment of $500,000 is due on August 1, 2019, or upon early repayment of the loan. This final incremental payment is being accreted to interest expense over the term of the related debt. The Company incurred $146,115 of costs in connection with the loan agreement. These costs were capitalized as deferred financing costs and are offset against the note payable balance. These debt issuance costs are being amortized to interest expense over the term of the related debt. In addition, if the Company repays all or a portion of the loan prior to the applicable maturity date, it will pay the lenders a prepayment penalty fee, based on a percentage of the then outstanding principal balance, equal to 3% if the prepayment occurs on or before 18 months after the funding date thereof or 1% if the prepayment occurs more than 18 months after, but on or before 30 months after, the funding date. The Company’s obligations under the 2015 amended and restated loan agreement, which includes both the 2014 venture loan and the 2015 venture loan, are secured by a first priority security interest in substantially all of its assets other than its intellectual property. The Company also has agreed to specified limitations on pledging or otherwise encumbering its intellectual property assets. The 2015 amended and restated loan agreement include customary affirmative and restrictive covenants, but does not include any covenants to attain or maintain specified financial metrics. The loan agreement includes customary events of default, including payment defaults, breaches of covenants, change of control and a material adverse change default. Upon the occurrence of an event of default and following any applicable cure periods, a default interest rate of an additional 5% may be applied to the outstanding loan balances, and the lenders may declare all outstanding obligations immediately due and payable and take such other actions as set forth in the loan agreement. As of September 30, 2017, the Company was in compliance with all of its loan covenants. |
STOCKHOLDERS_ EQUITY (DEFICIENC
STOCKHOLDERS’ EQUITY (DEFICIENCY) | 3 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY (DEFICIENCY) | Financing Transactions – On August 4, 2016, the Company closed on an underwritten offering of units, with each unit consisting of a share of common stock and a Series H warrant to purchase 0.75 of a share of common stock. Investors whose purchase of units in the offering would result in them beneficially owning more than 9.99% of the Company’s outstanding common stock following the completion of the offering had the option to acquire units with Series I prefunded warrants substituted for any common stock they would have otherwise acquired. Gross proceeds were $9,225,000, with net proceeds to the Company, after deducting offering expenses, of $8,470,897. The Company issued 11,481,481 shares of common stock and ten-year prefunded Series I warrants to purchase 2,218,045 shares of common stock at an exercise price of $0.01, together with Series H warrants to purchase 10,274,646 shares of common stock at an exercise price of $0.70 per share. The Series I warrants were exercised during the fiscal year ended June 30, 2017. The Series H warrants are exercisable at an initial exercise price of $0.70 per share, are exercisable commencing six months following the date of issuance and expire on the fifth anniversary of the date of issuance. The Series H warrants are subject to a limitation on their exercise if the holder and its affiliates would beneficially own more than 9.99% of the total number of the Company’s shares of common stock following such exercise. On July 2, 2015, the Company closed on a private placement of Series E warrants to purchase 21,917,808 shares of Palatin common stock and Series F warrants to purchase 2,191,781 shares of the Company’s common stock. Certain funds managed by QVT Financial LP (“QVT”) invested $5,000,000 and another accredited investment fund invested $15,000,000. The funds paid $0.90 for each Series E warrant and $0.125 for each Series F warrant, resulting in gross proceeds to the Company of $20,000,000, with net proceeds, after deducting offering expenses, of $19,834,278. The Series E warrants, which may be exercised on a cashless basis, are exercisable immediately upon issuance at an initial exercise price of $0.01 per share and expire on the tenth anniversary of the date of issuance. The Series E warrants are subject to limitation on exercise if QVT and its affiliates would beneficially own more than 9.99% (4.99% for the other accredited investment fund holder) of the total number of the Company’s shares of common stock following such exercise. The Series F warrants are exercisable at an initial exercise price of $0.91 per share, exercisable immediately upon issuance and expire on the fifth anniversary of the date of issuance. The Series F warrants are subject to the same beneficial ownership limitation as the Series E warrants. The purchase agreement for the private placement provides that the purchasers have certain rights until the earlier of approval of bremelanotide for FSD by the FDA and July 3, 2018, including rights of first refusal and participation in any subsequent equity or debt financing. The purchase agreement also contains certain restrictive covenants so long as the funds continue to hold specified amounts of warrants or beneficially own specified amounts of the outstanding shares of common stock. During the three months ended September 30, 2017, and 2016, the Company issued 12,364,219 and 12,757,174 shares, respectively of common stock pursuant to the cashless exercise provisions of warrants at an exercise price of $0.01 per share, and during the three months ended September 30, 2017, the Company received $114,384 and issued 11,438,356 shares of common stock pursuant to the exercise of warrants at an exercise price of $0.01 per share. As of September 30, 2017, there were 11,116,667 warrants outstanding at an exercise price of $0.01 per share. Stock Options In June 2017, the Company granted 1,797,000 options to its executive officers, 780,000 options to its employees and 378,000 options to its non-employee directors under the Company’s 2011 Stock Incentive Plan. The Company is amortizing the fair value of these options of $445,533, $194,689 and $89,220, respectively, over the vesting period of the options. The Company recognized $62,506 of stock-based compensation expense related to these options during the three months ended September 30, 2017. In September 2016, the Company granted 828,000 options to its executive officers and 336,000 options to its employees under the Company’s 2011 Stock Incentive Plan. The Company is amortizing the fair value of the options vesting over a 48 month period, consisting of 595,000 options granted to its executive officers and all options granted to its employees, of $188,245 and $106,303, respectively, over the vesting period. The Company recognized $17,703 and $5,216, respectively, of stock-based compensation expense related to these options during the three months ended September 30, 2017 and 2016. The remaining 233,000 options granted to the Company’s executive officers vest 12 months from the date of grant, and the Company is amortizing the fair value of these options of $67,160 over this vesting period. The Company recognized $11,193 and $4,757, respectively, of stock-based compensation expense related to these options during the three months ended September 30, 2017 and 2016. In June 2015, the Company granted 570,000 options to its executive officers, 185,800 options to its employees and 160,000 options to its non-employee directors under the Company’s 2011 Stock Incentive Plan. The Company is amortizing the fair value of these options of $446,748, $145,439 and $111,876, respectively, over the vesting period. The Company recognized $36,478, and $32,293, respectively, of stock-based compensation expense related to these options during the three months ended September 30, 2017 and 2016. Unless otherwise stated, stock options granted to the Company’s executive officers and employees vest over a 48-month period, while stock options granted to its non-employee directors vest over a 12-month period. Restricted Stock Units In June 2017, the Company granted 1,140,000 restricted stock units to its executive officers, 780,000 restricted stock units to its employees and 378,000 restricted stock units to its non-employee directors under the Company’s 2011 Stock Incentive Plan. The Company is amortizing the fair value of these restricted stock units of $421,800, $288,600, and $139,860, respectively, over the vesting period. The Company recognized $151,631 of stock-based compensation expense related to these restricted stock units during the three months ended September 30, 2017. In September 2016, the Company granted 558,000 restricted stock units to its executive officers, 415,000 of which vest over 24 months and 143,000 of which vest at 12 months, and 336,000 restricted stock units to its employees under the Company’s 2011 Stock Incentive Plan. The Company is amortizing the fair value of the restricted stock units of $284,580, and $171,360, respectively, over the vesting periods. The Company recognized $63,992 and $20,504, respectively, of stock-based compensation expense related to these restricted stock units during the three months ended September 30, 2017 and 2016. In December 2015, the Company granted 625,000 performance-based restricted stock units to its executive officers and 200,000 performance-based restricted stock units to its employees under the Company’s 2011 Stock Incentive Plan, which vest during the performance period, ending December 31, 2017, if and upon the earlier of: i) achievement of a closing price for the Company’s common stock equal to or greater than $1.20 per share for 20 consecutive trading days, which is considered a market condition, or ii) entering into a collaboration agreement (U.S. or global) of bremelanotide for FSD, which is considered a performance condition. This performance condition was deemed met as of February 2, 2017, the effective date of the License Agreement with AMAG. Prior to meeting the performance condition, the Company determined that it was not probable of achievement on the date of grant since meeting the condition was outside the control of the Company. The fair value of these awards, as calculated under a multifactor Monte Carlo simulation, was $338,250 and was recognized over the derived service period which was through December 2016. The Company recognized $86,879 of stock-based compensation expense related to these restricted stock units during the three months ended September 30, 2016. Upon the achievement of the performance condition, which occurred in the three month period ended March 31, 2017, the grant date fair value was utilized and an incremental $222,075 was recognized as stock-based compensation expense during the three months ended March 31, 2017. Also, in December 2015, the Company granted 625,000 restricted stock units to its executive officers, 340,000 restricted stock units to its non-employee directors and 200,000 restricted stock units to its employees under the Company’s 2011 Stock Incentive Plan. For executive officers and employees, the restricted stock units vest 25% on the date of grant and 25% on the first, second and third anniversary dates from the date of grant. For non-employee directors, the restricted stock units vest 50% on the first and second anniversary dates from the date of grant. The Company is amortizing the fair value of these restricted stock units of $425,000, $231,200 and $136,000, respectively, over the vesting period of the restricted stock units. The Company recognized $41,455 and $101,256, respectively, of stock-based compensation expense related to these restricted stock units during the three months ended September 30, 2017 and 2016. In June 2015, the Company granted 400,000 restricted stock units to its executive officers, 185,800 restricted stock units to its employees and 160,000 restricted stock units to its non-employee directors under the Company’s 2011 Stock Incentive Plan. The Company is amortizing the fair value of these restricted stock units of $432,000, $200,664, and $172,800, respectively, over the vesting period. The Company recognized $6,887 and $40,429, respectively, of stock-based compensation expense related to these restricted stock units during the three months ended September 30, 2017 and 2016. Unless otherwise stated, restricted stock units granted to the Company’s executive officers, employees and non-employee directors vest over 24 months, 48 months and 12 months, respectively. Stock-based compensation expense for the three months ended September 30, 2017 for stock options and equity-based instruments issued other than the stock options and restricted stock units described above was $28,749 and $111,874, respectively, for the three months ended September 30, 2017 and 2016. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Outstanding Common Stock – |
ORGANIZATION (Policies)
ORGANIZATION (Policies) | 3 Months Ended |
Sep. 30, 2017 | |
Organization Policies | |
Nature of Business | Nature of Business The Company’s primary product in development is bremelanotide for the treatment of hypoactive sexual desire disorder (“HSDD”), which is a type of female sexual dysfunction (“FSD”). The Company also has drug candidates or development programs for cardiovascular diseases, including heart failure and fibrosis, and inflammatory diseases, including inflammatory bowel disease and ocular indications. Key elements of the Company’s business strategy include using its technology and expertise to develop and commercialize therapeutic products; entering into alliances and partnerships with pharmaceutical companies to facilitate the development, manufacture, marketing, sale and distribution of product candidates that the Company is developing; and partially funding its product candidate development programs with the cash flow generated from its relationships with third parties. |
Business Risk and Liquidity | Business Risk and Liquidity – On September 6, 2017, the Company entered into a license agreement with Fosun for exclusive rights to develop and commercialize bremelanotide in the territories of mainland China, Taiwan, Hong Kong S.A.R. and Macau S.A.R. (“License Agreement with Fosun”) (Note 6). As of September 30, 2017, the Company’s cash, cash equivalents, accounts receivable and investments were $49,348,264 and current liabilities were $19,282,506, net of deferred revenue of $20,160,381. The Company intends to utilize existing capital resources for general corporate purposes and working capital, including required ancillary studies with bremelanotide for HSDD preparatory to filing a New Drug Application (“NDA”) with the U.S. Food and Drug Administration (“FDA”), and preclinical and clinical development of the Company’s other product candidates and programs, including natriuretic peptide receptor and melanocortin receptor programs. Management believes that its existing capital resources will be sufficient to fund its planned operations through at least the 2018 calendar year. The Company will need additional funding to complete required clinical trials for its other product candidates and, assuming those clinical trials are successful, as to which there can be no assurance, to complete submission of required applications to the FDA. If the Company is unable to obtain approval or otherwise advance in the FDA approval process, the Company’s ability to sustain its operations would be materially adversely affected. The Company may seek the additional capital necessary to fund its operations through public or private equity offerings, collaboration agreements, debt financings or licensing arrangements. Additional capital that is required by the Company may not be available on reasonable terms, or at all. |
Concentrations | Concentrations – |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2017 | |
Summary Of Significant Accounting Policies Policies | |
Principles of Consolidation | Principles of Consolidation |
Use of Estimates | Use of Estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Investments | Investments The fair value of substantially all securities is determined by quoted market prices. The estimated fair value of securities for which there are no quoted market prices is based on similar types of securities that are traded in the market. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Credit Risk | Credit Risk |
Property and Equipment | Property and Equipment |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
Revenue Recognition | Revenue Recognition Revenue Recognition for Arrangements with Multiple Elements ● the delivered item has value to the customer on a stand-alone basis; and ● if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially in control of the vendor. Under FASB ASC Topic 605-25, if both of the criteria above are not met, then separate accounting for the individual deliverables is not appropriate. The Company has determined that it is appropriate to recognize such revenue using the input-based proportional method during the period of the Palatin Development Obligation as defined in the AMAG arrangement. Refer to Note 5 for additional information on this topic. Under its License Agreement with Fosun (Note 6), the Company received consideration in the form of a license fee and has determined that it is appropriate to recognize such revenue in the quarter ended September 30, 2017, since the license has stand-alone value and is non-refundable. Revenue resulting from the achievement of development milestones is recorded in accordance with the accounting guidance for the milestone method of revenue recognition. Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue on the Company’s consolidated balance sheet. Amounts expected to be recognized as revenue in the next 12 months following the balance sheet date are classified as current liabilities. |
Research and Development Costs | Research and Development Costs |
Accrued Expenses | Accrued Expenses – |
Stock-Based Compensation | Stock-Based Compensation – |
Income Taxes | Income Taxes Pursuant to the License Agreement with Fosun (Note 6), $500,000 was withheld in accordance with tax withholding requirements in China and will be recorded as an expense during the fiscal year ending June 30, 2018. For the quarter ended September 30, 2017, the Company incurred $225,255 in income tax expense and the remaining balance of $274,745 was included in prepaid expenses and other current assets at September 30, 2017. Any potential credit to be received by the Company on its United States tax returns is currently offset by the Company’s valuation allowance. |
Net Loss per Common Share | Net Income (Loss) per Common Share Earnings per Share The Series A 2012 warrants issued on July 3, 2012 to purchase up to 31,988,151 shares of common stock were included in the weighted average number of common shares outstanding used in computing basic and diluted net income (loss) per common share starting on July 3, 2012. As of September 30, 2017 and 2016, there were no Series A 2012 warrants outstanding. The Series B 2012 warrants issued on July 3, 2012 to purchase up to 35,488,380 shares of common stock were considered contingently issuable shares and were not included in computing basic and diluted net income (loss) per common share until September 27, 2012, the date the Company received stockholder approval for the increase in the authorized underlying common stock. As of September 30, 2017, there were no Series B 2012 warrants outstanding. As of September 30, 2016, Series B 2012 warrants to purchase up to 30,679,631 shares of common stock were outstanding. The Series C 2014 warrants to purchase up to 24,949,325 shares of common stock were exercisable starting on December 23, 2014 and therefore were included in the weighted average number of common shares outstanding used in computing basic and diluted net income (loss) per common share starting on December 23, 2014. As of September 30, 2017 and 2016, Series C warrants to purchase up to 11,116,667 and 24,949,325 shares of common stock, respectively, were outstanding. The Series E 2015 warrants to purchase up to 21,917,808 shares of common stock were exercisable starting on July 2, 2015 and therefore were included in the weighted average number of common shares outstanding used in computing basic and diluted net income (loss) per common share starting on July 2, 2015. As of September 30, 2017, there were no Series E 2015 warrants outstanding. As of September 30, 2016, Series E 2015 warrants to purchase up to 21,917,808 shares of common stock were outstanding. The Series I 2016 warrants to purchase up to 2,218,045 shares of common stock were exercisable starting on August 4, 2016 and, therefore were included in the weighted average number of common shares outstanding used in computing basic and diluted net income (loss) per common share starting on August 4, 2016 (Note 12). As of September 30, 2016 there were no Series I 2016 warrants outstanding. The following table is a reconciliation of net income (loss) and the shares used in calculating basic and diluted net income (loss) per common share for the three months ended September 30, 2017 and 2016: Three Months Ended September 30, 2017 2016 Numerator: Net income (loss) $ 10,603,630 $ (13,052,770 ) Denominator: Weighted average common shares outstanding - Basic 197,112,400 165,848,269 Effect of dilutive shares: Common stock equivalents arising from stock options and warrants 1,413,791 - Restriced stock units 2,834,545 - Weighted average common shares outstanding - Diluted 201,360,736 165,848,269 Net income (loss) per common share: Basic $ 0.05 $ (0.08 ) Diluted $ 0.05 $ (0.08 ) For the three months ended September 30, 2017 and 2016, common shares issuable upon conversion of Series A Convertible Preferred Stock, the exercise of outstanding options and warrants (excluding the Series A 2012, Series B 2012, Series C 2014, Series E 2015 and Series I 2016 warrants issued in connection with the July 3, 2012, December 23, 2014, and July 2, 2015 private placement offerings and the August 4, 2016 underwritten offering as such warrants, to the extent not yet exercised, are already included in weighted average number of common shares outstanding used in computing basic net income (loss) per common share since they are exercisable for nominal consideration), and the vesting of restricted stock units amounted to an aggregate of 40,626,830 and 44,479,663 shares, respectively, and are excluded from the weighted average number of common shares outstanding used in computing basic net income (loss) per common share. For the three months ended September 30, 2017, an additional 4,248,336 of common shares have been included in the computation of diluted EPS using the treasury stock method. However, for the three months ended September 30, 2016, no additional common shares were added in the computation of diluted EPS because to do so would have been anti-dilutive. |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Summary Of Significant Accounting Policies Tables | |
Schedule of net income (loss) per share | Three Months Ended September 30, 2017 2016 Numerator: Net income (loss) $ 10,603,630 $ (13,052,770 ) Denominator: Weighted average common shares outstanding - Basic 197,112,400 165,848,269 Effect of dilutive shares: Common stock equivalents arising from stock options and warrants 1,413,791 - Restriced stock units 2,834,545 - Weighted average common shares outstanding - Diluted 201,360,736 165,848,269 Net income (loss) per common share: Basic $ 0.05 $ (0.08 ) Diluted $ 0.05 $ (0.08 ) |
PREPAID EXPENSES AND OTHER CU23
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Prepaid Expenses And Other Current Assets Tables | |
Schedule of prepaid expenses and other current assets | September 30, 2017 June 30, 2017 Clinical study costs $ 309,653 $ 657,069 Insurance premiums 118,439 182,966 Chinese withholding tax (Note 6) 274,745 - Other 237,148 171,186 $ 939,985 $ 1,011,221 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Investments Tables | |
Carrying value of our available-for-sale investments | September 30, 2017 June 30, 2017 Cost $ 262,023 $ 262,023 Amortization of premium (11,901 ) (11,596 ) Gross unrealized loss (153 ) (590 ) Fair value $ 249,969 $ 249,837 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Fair value of restricted stock units granted, amortized over 24 month vesting period | |
Schedule of assets at fair value | Carrying Value Quoted prices in active markets (Level 1) Other quoted/observable inputs (Level 2) Significant unobservable inputs (Level 3) September 30, 2017: Money market account $ 38,377,583 $ 38,377,583 $ - $ - Corporate debt securities 249,969 249,969 - - TOTAL $ 38,627,552 $ 38,627,552 $ - $ - June 30, 2017: Money market account $ 40,019,336 $ 40,019,336 $ - $ - Corporate debt securities 249,837 249,837 - - TOTAL $ 40,269,173 $ 40,269,173 $ - $ - |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Accrued Expenses | |
Accrued Expenses | September 30, 2017 June 30, 2017 Clinical study costs $ 9,021,304 $ 9,138,827 Other research related expenses 191,540 217,307 Professional services 52,574 434,768 Other 119,005 730,196 $ 9,384,423 $ 10,521,098 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Notes Payable | September 30, 2017 June 30, 2017 Notes payable under venture loan $ 12,333,334 $ 14,333,334 Unamortized related debt discount (108,553 ) (143,524 ) Unamortized debt issuance costs (62,309 ) (83,215 ) Notes payable 12,162,472 14,106,595 Less: current portion 7,857,231 7,824,935 Long-term portion $ 4,305,241 $ 6,281,660 |
ORGANIZATION (Details Narrative
ORGANIZATION (Details Narrative) - USD ($) | 3 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accumulated deficit | $ 346,144,990 | $ 356,743,785 | |
Net income (loss) | 10,603,630 | $ (13,052,770) | |
Cash, cash equivalents, accounts receivable and investments | $ 49,348,264 |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator: | ||
Net income (loss) | $ 10,603,630 | $ (13,052,770) |
Denominator: | ||
Weighted average common shares outstanding - Basic | 197,112,400 | 165,848,269 |
Effect of dilutive shares: | ||
Common stock equivalents arising from stock options and warrants | 1,413,791 | 0 |
Restriced stock units | 2,834,545 | 0 |
Weighted average common shares outstanding - Diluted | 201,360,736 | 165,848,269 |
Net income (loss) per common share: | ||
Basic | $ 0.05 | $ (0.08) |
Diluted | $ 0.05 | $ (0.08) |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Sep. 30, 2017 | Jun. 30, 2017 |
Range 6 | ||
Cash equivalents | $ 38,377,583 | $ 40,019,336 |
Accumulated depreciation and amortization | $ 2,296,605 | $ 2,281,989 |
PREPAID EXPENSES AND OTHER CU31
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Sep. 30, 2017 | Jun. 30, 2017 |
Prepaid Expenses And Other Current Assets Details | ||
Clinical study costs | $ 309,653 | $ 657,069 |
Insurance premiums | 118,439 | 182,966 |
Chinese withholding tax | 274,745 | 0 |
Other | 237,148 | 171,186 |
Total prepaid expenses and other current assets | $ 939,985 | $ 1,011,221 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) | Sep. 30, 2017 | Jun. 30, 2017 |
Investments Details | ||
Cost | $ 262,023 | $ 262,023 |
Amortization of premium | (11,901) | (11,596) |
Gross unrealized loss | (153) | (590) |
Fair value | $ 249,969 | $ 249,837 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | Sep. 30, 2017 | Jun. 30, 2017 |
Money Market Account | $ 38,377,583 | $ 40,019,336 |
Corporate debt securities | 249,969 | 249,837 |
Total | 38,627,552 | 40,269,173 |
Level 1 | ||
Money Market Account | 38,377,583 | 40,019,336 |
Corporate debt securities | 249,969 | 249,837 |
Total | 38,627,552 | 40,269,173 |
Level 2 | ||
Money Market Account | 0 | 0 |
Corporate debt securities | 0 | 0 |
Total | 0 | 0 |
Level 3 | ||
Money Market Account | 0 | 0 |
Corporate debt securities | 0 | 0 |
Total | $ 0 | $ 0 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) | Sep. 30, 2017 | Jun. 30, 2017 |
Accrued Expenses | ||
Clinical study costs | $ 9,021,304 | $ 9,138,827 |
Other research related expenses | 191,540 | 217,307 |
Professional services | 52,574 | 434,768 |
Other | 119,005 | 730,196 |
Accrued expenses | $ 9,384,423 | $ 10,521,098 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | Sep. 30, 2017 | Jun. 30, 2017 |
Notes Payable Details | ||
Notes payable under venture loan | $ 12,333,334 | $ 14,333,334 |
Unamortized related debt discount | (108,553) | (143,524) |
Unamortized debt issuance costs | (62,309) | (83,215) |
Notes payable | 12,162,472 | 14,106,595 |
Less: current portion | 7,857,231 | 7,824,935 |
Long-term portion | $ 4,305,241 | $ 6,281,660 |
STOCKHOLDERS_ EQUITY (DEFICIE36
STOCKHOLDERS’ EQUITY (DEFICIENCY) (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Stock based compensation | $ 28,749 | $ 111,874 |
2011 Stock Incentive Plan | Stock Options | Grant One | ||
Stock based compensation | 62,885 | |
2011 Stock Incentive Plan | Stock Options | Grant Two | ||
Stock based compensation | 28,896 | 9,973 |
2011 Stock Incentive Plan | Stock Options | Grant Three | ||
Stock based compensation | 36,478 | 32,293 |
2011 Stock Incentive Plan | Restricted Stock Units | Grant One | ||
Stock based compensation | 152,529 | |
2011 Stock Incentive Plan | Restricted Stock Units | Grant Two | ||
Stock based compensation | 63,992 | 20,504 |
2011 Stock Incentive Plan | Restricted Stock Units | Grant Three | ||
Stock based compensation | 86,879 | |
2011 Stock Incentive Plan | Restricted Stock Units | Grant Four | ||
Stock based compensation | 41,455 | 101,256 |
2011 Stock Incentive Plan | Restricted Stock Units | Grant Five | ||
Stock based compensation | $ 6,887 | $ 40,429 |