Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2018 | Nov. 08, 2018 | |
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, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 203,063,429 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,019 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 32,619,064 | $ 38,000,171 | $ 39,708,573 | $ 40,200,324 |
Accounts receivable | 104,189 | 0 | ||
Prepaid expenses and other current assets | 420,639 | 513,688 | ||
Total current assets | 33,143,892 | 38,513,859 | ||
Property and equipment, net | 149,990 | 164,035 | ||
Other assets | 338,916 | 338,916 | ||
Total assets | 33,632,798 | 39,016,810 | ||
Current liabilities: | ||||
Accounts payable | 1,165,151 | 2,223,693 | ||
Accrued expenses | 2,020,333 | 2,103,021 | ||
Notes payable, net of discount | 4,305,242 | 5,948,763 | ||
Other current liabilities | 969,179 | 487,488 | ||
Total current liabilities | 8,459,905 | 10,762,965 | ||
Notes payable, net of discount | 0 | 332,898 | ||
Deferred revenue | 0 | 500,000 | ||
Other non-current liabilities | 0 | 456,038 | ||
Total liabilities | 8,459,905 | 12,051,901 | ||
Stockholders' equity: | ||||
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, 2018 and June 30, 2018 | 40 | 40 | ||
Common stock of $0.01 par value - authorized 300,000,000 shares: issued and outstanding 203,032,129 shares as of September 30, 2018 and 200,554,205 shares as of June 30, 2018 | 2,030,321 | 2,005,542 | ||
Additional paid-in capital | 360,370,494 | 357,005,233 | ||
Accumulated deficit | (337,227,962) | (332,045,906) | ||
Total stockholders' equity | 25,172,893 | 26,964,909 | $ 5,975,678 | $ (5,164,644) |
Total liabilities and stockholders' equity | $ 33,632,798 | $ 39,016,810 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2018 | Jun. 30, 2018 |
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 | 203,032,129 | 200,554,205 |
Common stock, shares outstanding | 203,032,129 | 200,554,205 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
REVENUES: | ||
License and contract | $ 34,505 | $ 26,941,508 |
OPERATING EXPENSES: | ||
Research and development | 3,622,691 | 14,163,097 |
General and administrative | 2,040,582 | 1,544,575 |
Total operating expenses | 5,663,273 | 15,707,672 |
(Loss) income from operations | (5,628,768) | 11,233,836 |
OTHER INCOME (EXPENSE): | ||
Investment income | 153,583 | 51,726 |
Interest expense | (206,871) | (456,677) |
Total other expense, net | (53,288) | (404,951) |
(Loss) income before income taxes | (5,682,056) | 10,828,885 |
Income tax expense | 0 | (225,255) |
NET (LOSS) INCOME | $ (5,682,056) | $ 10,603,630 |
Basic net (loss) income per common share | $ (0.03) | $ 0.05 |
Diluted net (loss) income per common share | $ (0.03) | $ 0.05 |
Weighted average number of common shares outstanding used in computing basic net income (loss) per common share | 205,009,278 | 197,112,400 |
Weighted average number of common shares outstanding used in computing diluted net income (loss) per common share | 205,009,278 | 201,360,736 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Consolidated Statements Of Comprehensive Loss | ||
Net (loss) income | $ (5,682,056) | $ 10,603,630 |
Other comprehensive income : | ||
Unrealized gain on available-for-sale investments | 0 | 437 |
Total comprehensive (loss) income | $ (5,682,056) | $ 10,604,067 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total |
Beginning balance, shares at Jun. 30, 2017 | 4,030 | 160,515,361 | ||||
Beginning balance at Jun. 30, 2017 | $ 40 | $ 1,605,153 | $ 349,974,538 | $ (590) | $ (356,743,785) | $ (5,164,644) |
Cumulative effect of accounting change | 4,835 | (4,835) | 0 | |||
Stock-based compensation, shares | 75,071 | |||||
Stock-based compensation | $ 751 | 421,120 | 421,871 | |||
Warrant exercises, shares | 23,802,575 | |||||
Warrant exercises | $ 238,026 | (123,642) | 114,384 | |||
Unrealized gains on investments | 437 | 437 | ||||
Net (loss) income | 10,603,630 | 10,603,630 | ||||
Ending balance, shares at Sep. 30, 2017 | 4,030 | 184,393,007 | ||||
Ending balance at Sep. 30, 2017 | $ 40 | $ 1,843,930 | 350,276,851 | (153) | (346,144,990) | 5,975,678 |
Beginning balance, shares at Jun. 30, 2018 | 4,030 | 200,554,205 | ||||
Beginning balance at Jun. 30, 2018 | $ 40 | $ 2,005,542 | 357,005,233 | 0 | (332,045,906) | 26,964,909 |
Cumulative effect of accounting change | 500,000 | 500,000 | ||||
Stock-based compensation, shares | 319,817 | |||||
Stock-based compensation | $ 3,198 | 1,230,387 | 1,233,585 | |||
Sale of common stock , net of costs, shares | 2,225,145 | |||||
Sale of common stock , net of costs | $ 22,251 | 2,200,196 | 2,222,447 | |||
Withholding taxes related to restricted stock units, shares | (67,038) | |||||
Withholding taxes related to restricted stock units | $ (670) | (65,322) | (65,992) | |||
Net (loss) income | (5,682,056) | (5,682,056) | ||||
Ending balance, shares at Sep. 30, 2018 | 4,030 | 203,032,129 | ||||
Ending balance at Sep. 30, 2018 | $ 40 | $ 2,030,321 | $ 360,370,494 | $ 0 | $ (337,227,962) | $ 25,172,893 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (5,682,056) | $ 10,603,630 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 14,045 | 14,616 |
Non-cash interest expense | 23,581 | 56,182 |
Stock-based compensation | 1,233,585 | 421,871 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (104,189) | 5,727,100 |
Prepaid expenses and other assets | 93,049 | 71,236 |
Accounts payable | (1,058,542) | 482,271 |
Accrued expenses | (82,688) | (1,112,295) |
Deferred revenue | 0 | (14,890,191) |
Other non-current liabilities | 25,653 | 60,435 |
Net cash (used in) provided by operating activities | (5,537,562) | 1,434,855 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | 0 | (9,500) |
Net cash used in investing activities | 0 | (9,500) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments on capital lease obligations | 0 | (7,110) |
Payment of withholding taxes related to restricted stock units | (65,992) | (24,380) |
Payments on notes payable obligations | (2,000,000) | (2,000,000) |
Proceeds from the exercise of options and warrants | 0 | 114,384 |
Proceeds from the sale of common stock and warrants, net of costs | 2,222,447 | 0 |
Net cash provided by (used in) financing activities | 156,455 | (1,917,106) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (5,381,107) | (491,751) |
CASH AND CASH EQUIVALENTS, beginning of period | 38,000,171 | 40,200,324 |
CASH AND CASH EQUIVALENTS, end of period | 32,619,064 | 39,708,573 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for interest | 157,636 | 340,365 |
Cash paid for income taxes | $ 0 | $ 500,000 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | Nature of Business A New Drug Application (“NDA”) has been submitted to the U.S. Food and Drug Administration (“FDA”) for Vyleesi by our exclusive North American licensee, AMAG Pharmaceuticals, Inc. (“AMAG”), and accepted for filing by the FDA, with an FDA decision on approval expected in the first quarter of calendar year 2019. Palatin has also licensed rights to Vyleesi to Shanghai Fosun Pharmaceutical Industrial Development Co. Ltd. (“Fosun”) for the territories of the People’s Republic of China, Taiwan, Hong Kong S.A.R. and Macau S.A.R. (collectively, the “Chinese Territories”), and Kwangdong Pharmaceutical Co., Ltd. (“Kwangdong”) for the Republic of Korea (“Korea”). Palatin’s new product development activities primarily focus on melanocortin receptor 1 (“MC1r”) agonists, with potential to treat a number of inflammatory and autoimmune diseases such as dry eye disease, also known as keratoconjunctivitis sicca, uveitis, diabetic retinopathy and inflammatory bowel disease. Palatin has also designed and is developing potential natriuretic peptide receptor (“NPR”) candidate drugs that are selective for one or more different natriuretic peptide receptors, including natriuretic peptide receptor-A (“NPR-A”), natriuretic peptide receptor B (“NPR-B”), and natriuretic peptide receptor C (“NPR-C”), which may be useful in the treatment of cardiovascular diseases, including reducing cardiac hypertrophy and fibrosis, heart failure, acute asthma, other pulmonary diseases and hypertension. Business Risk and Liquidity – As of September 30, 2018, the Company’s cash and cash equivalents, were $32,619,064 and current liabilities were $8,459,905. The Company intends to utilize existing capital resources for general corporate purposes and working capital, including, preclinical and clinical development of our MC1r and MC4r peptide programs and natriuretic peptide program, and development of other portfolio products. Management believes that the Company’s existing capital resources, together with proceeds received from sales of common stock in the Company’s “at-the-market” program (if any), will be adequate to fund the Company’s planned operations through at least December 31, 2019. 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, 2018 | |
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, 2018 may not necessarily be indicative of the results of operations expected for the full year. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2018, filed with the SEC, which includes consolidated financial statements as of June 30, 2018 and 2017 and for each of the fiscal years in the three-year period ended June 30, 2018. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Principles of Consolidation Use of Estimates Cash and Cash Equivalents Fair Value of Financial Instruments Credit Risk Property and Equipment Impairment of Long-Lived Assets Revenue Recognition Revenue from Contracts with Customers On July 1, 2018, the Company adopted ASC Topic 606 using the modified retrospective approach, a practical expedient permitted under ASC Topic 606, and applied this approach only to contracts that were not completed as of July 1, 2018. The Company calculated a one-time cumulative transition adjustment of $500,000 which was recorded on July 1, 2018 to the opening balance of accumulated deficit related to its license agreement with Kwangdong (the “Kwangdong License Agreement”) as the Company determined a significant revenue reversal would not occur in a future period. The one-time adjustment consisted of the recognition of $500,000 of deferred revenue. Revenue recognition for periods prior to July 1, 2018 The Company has generated revenue solely through license and collaboration agreements. Prior to July 1, 2018, the Company recognized revenue in accordance with FASB ASC Topic 605-25, Revenue Recognition for Arrangements with Multiple Elements ● the delivered item had value to the customer on a stand-alone basis; and ● if the arrangement included a general right of return relative to the delivered item, delivery or performance of the undelivered item was considered probable and substantially in control of the vendor. Under FASB ASC Topic 605-25, if both of the criteria above were not met, then separate accounting for the individual deliverables was not appropriate. The Company determined that it was appropriate to recognize such revenue using the input-based proportional method during the period of Palatin’s development obligations as defined in the AMAG License Agreement. Refer to Note 5 for additional information. Under the Fosun License Agreement (Note 6), the Company received consideration in the form of an upfront license fee payment and determined that it was appropriate to recognize such consideration as revenue in the first quarter of fiscal year 2018, which was the quarter in which the license was granted, since the license had stand-alone value and the upfront payment received by the Company was non-refundable. Under the Kwangdong License Agreement (Note 7), the Company received consideration in the form of an upfront license fee payment and determined that it was appropriate to record such consideration as deferred revenue because the upfront payment received by the Company is subject to certain refund provisions. Revenue resulting from the achievement of development milestones was recorded in accordance with the accounting guidance for the milestone method of revenue recognition. Amounts received prior to satisfying the revenue recognition criteria were recorded as deferred revenue on the Company’s consolidated balance sheet. Revenue recognition for periods commencing July 1, 2018 For licenses of intellectual property, the Company assesses, at contract inception, whether the intellectual property is distinct from other performance obligations identified in the arrangement. If the licensing of intellectual property is determined to be distinct, revenue is recognized for nonrefundable, upfront license fees when the license is transferred to the customer and the customer can use and benefit from the license. If the licensing of intellectual property is determined not to be distinct, then the license will be bundled with other promises in the arrangement into one performance obligation. The Company needs to determine if the bundled performance obligation is satisfied over time or at a point in time. If the Company concludes that the nonrefundable, upfront license fees will be recognized over time, the Company will need to assess the appropriate method of measuring proportional performance. Regulatory milestone payments are excluded from the transaction price due to the inability to estimate the probability of reversal. Revenue relating to achievement of these milestones will be recognized in the period in which the milestone is achieved. Sales-based royalty and milestone payments resulting from customer contracts solely or predominately for the license of intellectual property will only be recognized upon occurrence of the underlying sale or achievement of the sales milestone in the future and such sales-based royalties and milestone payments will be recognized in the same period earned. The Company recognizes revenue for reimbursements of research and development costs under collaboration agreements as the services are performed. The Company records these reimbursements as revenue and not as a reduction of research and development expenses as the Company is the principal in the research and development activities based upon its control of such activities, which is considered part of its ordinary activities. Development milestone payments are generally due 30 business days after the milestone is achieved. Sales milestone payments are generally due 45 business days after the calendar year in which the sales milestone is achieved. Royalty payments are generally due on a quarterly basis 20 business days after being invoiced. The cumulative effect of applying ASC Topic 606 to the Company’s consolidated balance sheet was as follows: Balance at June 30, 2018 Net Adjustment Balance at July 1, 2018 Deferred revenue $ 500,000 $ (500,000 ) $ - Accumulated deficit (332,045,906 ) 500,000 (331,545,906 ) The impact of adoption of ASC Topic 606 on the Company’s consolidated balance sheet as of September 30, 2018 is as follows: PALATIN TECHNOLOGIES, INC and Subsidiary Consolidated Balance Sheets (unaudited) Impact of change in accounting policies As reported September 30, 2018 Adjustments As reported without adoption of ASC Topic 606 ASSETS Current assets: Cash and cash equivalents $ 32,619,064 $ - $ 32,619,064 Accounts receivable 104,189 - 104,189 Prepaid expenses and other current assets 420,639 - 420,639 Total current assets 33,143,892 - 33,143,892 - Property and equipment, net 149,990 - 149,990 Other assets 338,916 - 338,916 Total assets $ 33,632,798 $ - $ 33,632,798 - LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 1,165,151 $ - $ 1,165,151 Accrued expenses 2,020,333 - 2,020,333 Notes payable, net of discount 4,305,242 - 4,305,242 Other current liabilities 969,179 - 969,179 Total current liabilities 8,459,905 - 8,459,905 - Notes payable, net of discount - - - Deferred revenue - 500,000 500,000 Other non-current liabilities - - - Total liabilities 8,459,905 500,000 8,959,905 Stockholders’ equity: Preferred stock 40 - 40 Common stock 2,030,321 - 2,030,321 Additional paid-in capital 360,370,494 - 360,370,494 Accumulated deficit (337,227,962 ) (500,000 ) (337,727,962 ) Total stockholders’ equity 25,172,893 (500,000 ) 24,672,893 Total liabilities and stockholders’ equity $ 33,632,798 $ - $ 33,632,798 ASC Topic 606 did not have an impact on the Company’s consolidated statements of operations or cash flows. Research and Development Costs Accrued Expenses – Stock-Based Compensation – Income Taxes On December 22, 2017, the U.S. government enacted wide-ranging tax legislation, the Tax Cuts and Jobs Act (the “2017 Tax Act”). The 2017 Tax Act significantly revises U.S. tax law by, among other provisions, (a) lowering the applicable U.S. federal statutory corporate income tax rate from 35% to 21%, (b) eliminating or reducing certain income tax deductions, such as deductions for interest expense, executive compensation expenses and certain employee expenses, and (c) repealing the federal alternative minimum tax (“AMT”) and providing for the refund of existing AMT credits. The Company continues to maintain a full valuation allowance against its net deferred tax assets. Other provisions enacted include a new provision designed to tax low-taxed income of foreign subsidiaries (i.e., “GILTI”) and a one-time transition tax on the deemed repatriation of post-1986 undistributed foreign subsidiary earnings and profits (“E&P”) from controlled foreign corporations (“CFC”). The Company does not have any foreign subsidiaries, and thus these provisions do not apply. During the year ended June 30, 2018, the Company recorded income tax expense of $82,500, which consisted of $500,000 that was withheld in accordance with tax withholding requirements in the Chinese Territories related to the Fosun License Agreement (Note 6) and $82,500, which was withheld in accordance with tax withholding requirements in Korea related to the Kwangdong License Agreement (Note 7). The total income tax expense related to withholding requirements of $582,500 was offset by an income tax benefit of $500,000, which resulted from the 2017 Tax Act, under which AMT credits became refundable, and therefore a $500,000 benefit related to the release of a valuation allowance against an AMT credit was recorded during the three months ended December 2017. The Company’s June 30, 2017 tax return was filed during the three months ended March 31, 2018 and the Company did not incur an AMT liability. As a result, as of September 30, 2018 and June 30, 2018, the Company has a current income tax receivable of $218,000 and a long-term income tax receivable of $282,000 from estimated AMT that can be refunded in the future. Net Income (Loss) per Common Share - Earnings per Share The following table is a reconciliation of net (loss) income and the shares used in calculating basic and diluted net (loss) income per common share for the three months ended September 30, 2018 and 2017: Three Months Ended September 30, 2018 2017 Net (loss) income $ (5,682,056 ) $ 10,603,630 Denominator: Weighted average common shares - Basic 205,009,278 197,112,400 Effect of dilutive shares: Common stock equivalents arising from stock options, warrants and conversion of preferred stock - 1,413,791 Restricted stock units - 2,834,545 Weighted average common shares - Diluted 205,009,278 201,360,736 Net (loss) income per common share: Basic $ (0.03 ) $ 0.05 Diluted $ (0.03 ) $ 0.05 As of September 30, 2017, common shares issuable upon the exercise of outstanding options and warrants, excluding outstanding warrants exercisable for nominal consideration, and the vesting of restricted stock units amounted in an aggregate of 11,116,667 shares being excluded from the weighted average number of common shares used in computing diluted net income per common share because they were anti-dilutive during the period or the minimum performance requirements or market conditions had not been met. For the three months ended September 30, 2018, no additional common shares were added to the computation of diluted EPS because to do so would have been anti-dilutive. The potential number of common shares excluded from diluted EPS during the three months ended September 30, 2018 was 44,454,308. Included in the weighted average common shares used in computing basic and diluted net income (loss) per common share are 3,347,999 and 1,729,250 vested RSUs that have not been issued as of September 30, 2018 and 2017, respectively, due to a provision in the RSU agreements to delay delivery. |
NEW AND RECENTLY ADOPTED ACCOUN
NEW AND RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Sep. 30, 2018 | |
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 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 |
AGREEMENT WITH AMAG
AGREEMENT WITH AMAG | 3 Months Ended |
Sep. 30, 2018 | |
Agreement With Amag | |
AGREEMENT WITH AMAG | On January 8, 2017, the Company entered into the AMAG License Agreement. Under the terms of the AMAG License Agreement, 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 Vyleesi (each a “Product”, and collectively, “Products”), (ii) a non-exclusive license in the Territory, with the right to grant sub-licenses, to manufacture the Products, and (iii) a non-exclusive license in all countries outside the Territory, with the right to grant sub-licenses, to research, develop and manufacture (but not commercialize) the Products. Following the satisfaction of certain conditions to closing, the license agreement 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 AMAG License Agreement, AMAG was 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 Vyleesi for HSDD in the United States related to Palatin’s development obligations. The Company determined there was 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, represented a combined unit of accounting which totaled $85,000,000. The Company recognized revenue of the combined unit of accounting over the arrangement using the input-based proportional method as the Company completed its development obligations. For the three months ended September 30, 2017, the Company recognized $21,941,508 as license and contract revenue. During the three months ended September 30, 2018, license and contract revenue included additional billings for AMAG related Vyleesi costs of $34,505. In addition, pursuant to the terms of and subject to the conditions in the AMAG License Agreement, the Company will be eligible to receive from AMAG (i) up to $60,000,000 upon FDA approval of Vyleesi, and (ii) up to $300,000,000 in sales milestone payments based on achievement of certain annual net sales 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 Vyleesi. 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 AMAG License Agreement, subject to a minimum fee of $2,500,000. The minimum fee of $2,500,000, less a credit of $50,000 for an advisory fee previously paid by the Company, was paid to Greenhill and recorded as an expense 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 AMAG License Agreement. 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, including future milestone and royalty payments, after crediting the $2,500,000 that was paid to Greenhill upon entering into the AMAG License Agreement. The Company also reimbursed Greenhill $7,263 for certain expenses incurred in connection with its advisory services. Pursuant to the License Agreement, 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 Vyleesi. |
AGREEMENT WITH FOSUN
AGREEMENT WITH FOSUN | 3 Months Ended |
Sep. 30, 2018 | |
Agreement With Fosun | |
AGREEMENT WITH FOSUN | On September 6, 2017, the Company entered into the Fosun License Agreement for exclusive rights to commercialize Vyleesi in the Chinese Territories. Under the terms of the agreement, the Company received $4,500,000 in October 2017, which consisted of an upfront payment of $5,000,000 less $500,000 that was withheld in accordance with tax withholding requirements in the Chinese Territories and recorded as an expense during the year ended June 30, 2018. The Company will receive a $7,500,000 milestone payment when regulatory approval in Chinese Territories is obtained, provided that a commercial supply agreement for Vyleesi has been entered into. Palatin has the potential to receive up to $92,500,000 in additional sales related milestone payments and high single-digit to low double-digit royalties on net sales in the licensed territory. All development, regulatory, sales, marketing, and commercial activities and associated costs in the licensed territory will be the sole responsibility of Fosun. |
AGREEMENT WITH KWANGDONG
AGREEMENT WITH KWANGDONG | 3 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
AGREEMENT WITH KWANGDONG | On November 21, 2017, the Company entered into the Kwangdong License Agreement for exclusive rights to commercialize Vyleesi in Korea. Under the terms of the agreement, the Company received $417,500 in December 2017, consisting of an upfront payment of $500,000, less $82,500, which was withheld in accordance with tax withholding requirements in Korea and recorded as an expense during the year ended June 30, 2018. Based upon certain refund provisions, the upfront payment was recorded as non-current deferred revenue at December 31, 2017. On July 1, 2018, in conjunction with the adoption of ASC Topic 606, a one-time transition of adjustment of $500,000 was recorded to the opening balance of accumulated deficit as the Company determined a significant revenue reversal would not occur in a future period. The Company will receive a $3,000,000 milestone payment based on the first commercial sale in Korea. Palatin has the potential to receive up to $37,500,000 in additional sales related milestone payments and mid-single-digit to low double-digit royalties on net sales in the licensed territory. All development, regulatory, sales, marketing, and commercial activities and associated costs in the licensed territory will be the sole responsibility of Kwangdong. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 3 Months Ended |
Sep. 30, 2018 | |
Prepaid Expenses And Other Current Assets | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | Prepaid expenses September 30, 2018 June 30, 2018 Clinical study costs $ 62,453 $ 145,994 Insurance premiums 30,986 42,605 Other 327,200 325,089 $ 420,639 $ 513,688 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Sep. 30, 2018 | |
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’s or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The following table provides the assets carried at fair value: Carrying Value Quoted prices in active markets(Level 1) Other quoted/observable inputs (Level 2) Significant unobservable inputs(Level 3) September 30, 2018: Money market account $ 32,431,016 $ 32,431,016 $ - $ - June 30, 2018: Money market account $ 37,808,099 $ 37,808,099 $ - $ - |
ACCRUED EXPENSES
ACCRUED EXPENSES | 3 Months Ended |
Sep. 30, 2018 | |
Accrued Expenses | |
ACCRUED EXPENSES | Accrued expenses September 30, 2018 June 30, 2018 Clinical study costs $ 673,376 $ 983,410 Other research related expenses 662,466 590,236 Professional services 66,062 297,731 Severance 555,184 - Other 63,245 231,644 $ 2,020,333 $ 2,103,021 |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | Notes payable consist of the following: September 30, 2018 June 30, 2018 Notes payable under venture loan $ 4,333,334 $ 6,333,334 Unamortized related debt discount (18,496 ) (33,535 ) Unamortized debt issuance costs (9,596 ) (18,138 ) Notes payable 4,305,242 6,281,661 Less: current portion 4,305,242 5,948,763 Long-term portion $ - $ 332,898 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, 2018 and June 30, 2018. 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 and is included in other current liabilities on the consolidated balance sheet as of September 30, 2018. 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. 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, 2018 and June 30, 2018. 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 and is included in other current liabilities on the consolidated balance sheet as of September 30, 2018. 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. 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 includes 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, 2018, the Company was in compliance with all of its loan covenants. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | Financing Transactions – Stock Purchase Warrants Stock Options – In July 2018, the terms of certain options were modified to accelerate vesting and extend the option life. As a result the Company recorded additional stock-based compensation of $109,004 during the three months ended September 30, 2018. There were no such modifications during the three months ended September 30, 2017. A summary of stock option activity is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term in Years Aggregate Intrinsic Value Outstanding - July 1, 2018 12,775,462 0.76 7.7 Granted - - Forfeited (133,851 ) 0.53 Expired (129,150 ) 1.77 Outstanding - September 30, 2018 12,512,461 0.75 7.5 3,320,734 Exercisable at September 30, 2018 6,263,674 $ 0.77 6.0 $ 1,659,518 Expected to vest at September 30, 2018 6,248,787 $ 0.74 9.0 $ 1,661,216 Stock options granted to the Company’s executive officers and employees generally vest over a 48-month period, while stock options granted to its non-employee directors vest over a 12-month period. Included in the options outstanding above are 1,075,000 and 125,000 performance-based options granted in December 2017 to executive officers and employees, respectively, which vest during a performance period ending on December 31, 2020, if and upon either i) as to 100% of the target number of shares upon achievement of a closing price for the Company’s common stock equal to or greater than $1.50 per share for 20 consecutive trading days, which is considered a market condition; or ii) as to thirty percent (30%) of the target number of shares, upon the acceptance for filing by the FDA of an NDA for Vyleesi for HSDD in premenopausal women during the performance period, which is considered a performance condition; iii) as to fifty percent (50%) of the target number of shares, upon the approval by the FDA of an NDA for Vyleesi for HSDD in premenopausal women during the performance period, which is also considered a performance condition; iv) as to twenty percent (20%) of the target number of shares, upon entry into a licensing agreement during the performance period for the commercialization of Vyleesi for FSD in selected countries, which is also considered a performance condition. The fair value of these options was $602,760. The Company is amortizing the fair value over the derived service period of 1.1 years or upon the attainment of the performance condition. Pursuant to the FDA acceptance of the NDA filing of Vyleesi, 30% of the target number of options vested in June 2018. Restricted Stock Units – A summary of restricted stock unit activity is as follows: Number of RSU's Outstanding at July 1, 2018 9,323,876 Granted - Forfeited (178,851 ) Vested (319,817 ) Outstanding at September 30, 2018 8,825,208 Included in outstanding RSUs in the table above are 3,347,999 vested shares that have not been issued as of September 30, 2018 due to a provision in the RSU agreements to delay delivery. Time-based restricted stock units granted to the Company’s executive officers, employees and non-employee directors generally vest over 24 months, 48 months and 12 months, respectively. In December 2017, the Company granted 1,075,000 performance-based restricted stock units to its executive officers and 670,000 performance-based restricted stock units to other employees which vest during a performance period, ending on December 31, 2020, if and upon either i) as to 100% of the target number of shares upon achievement of a closing price for the Company’s common stock equal to or greater than $1.50 per share for 20 consecutive trading days, which is considered a market condition; or ii) as to thirty percent (30%) of the target number of shares, upon the acceptance for filing by the FDA of an NDA for Vyleesi for HSDD in premenopausal women during the performance period, which is considered a performance condition; iii) as to fifty percent (50%) of the target number of shares, upon the approval by the FDA of an NDA for Vyleesi for HSDD in premenopausal women during the performance period, which is also considered a performance condition; iv) as to twenty percent (20%) of the target number of shares, upon entry into a licensing agreement during the performance period for the commercialization of Vyleesi for FSD in at least two of the following geographic areas (a) four or more countries in Europe, (b) Japan, (c) two or more countries in Central and/or South America, (d) two or more countries in Asia, excluding Japan and China, and (e) Australia, which is also considered a performance condition. The fair value of these awards was $913,750 and $569,500, respectively. The Company is amortizing the fair value over the derived service period of 1.1 years or upon the attainment of the performance condition. Pursuant to the FDA acceptance of the NDA filing for Vyleesi, 30% of the target number of shares vested in June 2018. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Between October 1, 2018 and November 8, 2018, a total of 31,300 shares of the Company’s common stock were sold through Canaccord under the Equity Distribution Agreement for net proceeds of $30,361 after payment of commission fees of $939. |
ORGANIZATION (Policies)
ORGANIZATION (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Organization Policies | |
Nature of Business | Palatin Technologies, Inc. (“Palatin” or the “Company”) is a specialized biopharmaceutical company developing first-in-class medicines based on molecules that modulate the activity of the melanocortin and natriuretic peptide receptor systems. Palatin’s product candidates are targeted, receptor-specific therapeutics for the treatment of diseases with significant unmet medical need and commercial potential. The most advanced product candidate is Vyleesi™, the trade name for bremelanotide, a peptide melanocortin receptor 4 (“MC4r”) agonist, for the treatment of premenopausal women with acquired, generalized hypoactive sexual desire disorder (“HSDD”), which is a type of female sexual dysfunction (“FSD”), defined as low desire with associated distress or interpersonal difficulty. A New Drug Application (“NDA”) has been submitted to the U.S. Food and Drug Administration (“FDA”) for Vyleesi by our exclusive North American licensee, AMAG Pharmaceuticals, Inc. (“AMAG”), and accepted for filing by the FDA, with an FDA decision on approval expected in the first quarter of calendar year 2019. Palatin has also licensed rights to Vyleesi to Shanghai Fosun Pharmaceutical Industrial Development Co. Ltd. (“Fosun”) for the territories of the People’s Republic of China, Taiwan, Hong Kong S.A.R. and Macau S.A.R. (collectively, the “Chinese Territories”), and Kwangdong Pharmaceutical Co., Ltd. (“Kwangdong”) for the Republic of Korea (“Korea”). Palatin’s new product development activities primarily focus on melanocortin receptor 1 (“MC1r”) agonists, with potential to treat a number of inflammatory and autoimmune diseases such as dry eye disease, also known as keratoconjunctivitis sicca, uveitis, diabetic retinopathy and inflammatory bowel disease. Palatin has also designed and is developing potential natriuretic peptide receptor (“NPR”) candidate drugs that are selective for one or more different natriuretic peptide receptors, including natriuretic peptide receptor-A (“NPR-A”), natriuretic peptide receptor B (“NPR-B”), and natriuretic peptide receptor C (“NPR-C”), which may be useful in the treatment of cardiovascular diseases, including reducing cardiac hypertrophy and fibrosis, heart failure, acute asthma, other pulmonary diseases and hypertension. |
Business Risk and Liquidity | Since inception, the Company has incurred negative cash flows from operations, and has expended, and expects to continue to expend, substantial funds to complete its planned product development efforts. As shown in the accompanying consolidated financial statements, the Company had an accumulated deficit as of September 30, 2018 of $337,227,962 and a net loss for the three months ended September 30, 2018 of $5,682,056, and the Company anticipates incurring significant expenses in the future as a result of spending on its development programs and will require substantial additional financing or revenues to continue to fund its planned developmental activities. To achieve sustained profitability, if ever, the Company, alone or with others, must successfully develop and commercialize its technologies and proposed products, conduct successful preclinical studies and clinical trials, obtain required regulatory approvals and successfully manufacture and market such technologies and proposed products. The time required to reach sustained profitability is highly uncertain, and the Company may never be able to achieve profitability on a sustained basis, if at all. As of September 30, 2018, the Company’s cash and cash equivalents, were $32,619,064 and current liabilities were $8,459,905. The Company intends to utilize existing capital resources for general corporate purposes and working capital, including, preclinical and clinical development of our MC1r and MC4r peptide programs and natriuretic peptide program, and development of other portfolio products. Management believes that the Company’s existing capital resources, together with proceeds received from sales of common stock in the Company’s “at-the-market” program (if any), will be adequate to fund the Company’s planned operations through at least December 31, 2019. 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 in the Company’s assets and operations subject it to certain related risks. Financial instruments that subject the Company to concentrations of credit risk primarily consist of cash and cash equivalents and accounts receivable. The Company’s cash and cash equivalents are primarily invested in one money market account sponsored by a large financial institution. For the three months ended September 30, 2018, the Company reported $34,505 in license and contract revenue related to a license agreement with AMAG for Vyleesi for North America (“AMAG License Agreement”) (Note 5). For the three months ended September 30, 2017, the Company reported $21,941,508 in contract revenue related to the AMAG License Agreement and $5,000,000 in contract revenue related to Fosun (the “Fosun License Agreement”) (Note 6). |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts of Palatin and its wholly-owned inactive subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and cash equivalents include cash on hand, cash in banks and all highly liquid investments with a purchased maturity of less than three months. Cash equivalents consist of $32,431,016 and $37,808,099 in a money market account at September 30, 2018 and June 30, 2018, respectively. |
Fair Value of Financial Instruments | The Company’s financial instruments consist primarily of cash equivalents, accounts receivable, accounts payable and notes payable. Management believes that the carrying values of cash equivalents, accounts receivable and accounts payable are representative of their respective fair values based on the short-term nature of these instruments. Management believes that the carrying amount of its notes payable approximates fair value based on terms of the notes. |
Credit Risk | Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. Total cash and cash equivalent balances have exceeded insured balances by the Federal Depository Insurance Company (“FDIC”). |
Property and Equipment | Property and equipment consists of office and laboratory equipment, office furniture and leasehold improvements and includes assets acquired under capital leases. Property and equipment are recorded at cost. Depreciation is recognized using the straight-line method over the estimated useful lives of the related assets, generally five years for laboratory and computer equipment, seven years for office furniture and equipment and the lesser of the term of the lease or the useful life for leasehold improvements. Amortization of assets acquired under capital leases is included in depreciation expense. Maintenance and repairs are expensed as incurred while expenditures that extend the useful life of an asset are capitalized. Accumulated depreciation and amortization was $2,352,603 and $2,338,558 as of September 30, 2018 and June 30, 2018, respectively. |
Impairment of Long-Lived Assets | The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. To determine recoverability of a long-lived asset, management evaluates whether the estimated future undiscounted net cash flows from the asset are less than its carrying amount. If impairment is indicated, the long-lived asset would be written down to fair value. Fair value is determined by an evaluation of available price information at which assets could be bought or sold, including quoted market prices, if available, or the present value of the estimated future cash flows based on reasonable and supportable assumptions. |
Revenue Recognition | In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers On July 1, 2018, the Company adopted ASC Topic 606 using the modified retrospective approach, a practical expedient permitted under ASC Topic 606, and applied this approach only to contracts that were not completed as of July 1, 2018. The Company calculated a one-time cumulative transition adjustment of $500,000 which was recorded on July 1, 2018 to the opening balance of accumulated deficit related to its license agreement with Kwangdong (the “Kwangdong License Agreement”) as the Company determined a significant revenue reversal would not occur in a future period. The one-time adjustment consisted of the recognition of $500,000 of deferred revenue. Revenue recognition for periods prior to July 1, 2018 The Company has generated revenue solely through license and collaboration agreements. Prior to July 1, 2018, the Company recognized revenue in accordance with FASB ASC Topic 605-25, Revenue Recognition for Arrangements with Multiple Elements ● the delivered item had value to the customer on a stand-alone basis; and ● if the arrangement included a general right of return relative to the delivered item, delivery or performance of the undelivered item was considered probable and substantially in control of the vendor. Under FASB ASC Topic 605-25, if both of the criteria above were not met, then separate accounting for the individual deliverables was not appropriate. The Company determined that it was appropriate to recognize such revenue using the input-based proportional method during the period of Palatin’s development obligations as defined in the AMAG License Agreement. Refer to Note 5 for additional information. Under the Fosun License Agreement (Note 6), the Company received consideration in the form of an upfront license fee payment and determined that it was appropriate to recognize such consideration as revenue in the first quarter of fiscal year 2018, which was the quarter in which the license was granted, since the license had stand-alone value and the upfront payment received by the Company was non-refundable. Under the Kwangdong License Agreement (Note 7), the Company received consideration in the form of an upfront license fee payment and determined that it was appropriate to record such consideration as deferred revenue because the upfront payment received by the Company is subject to certain refund provisions. Revenue resulting from the achievement of development milestones was recorded in accordance with the accounting guidance for the milestone method of revenue recognition. Amounts received prior to satisfying the revenue recognition criteria were recorded as deferred revenue on the Company’s consolidated balance sheet. Revenue recognition for periods commencing July 1, 2018 For licenses of intellectual property, the Company assesses, at contract inception, whether the intellectual property is distinct from other performance obligations identified in the arrangement. If the licensing of intellectual property is determined to be distinct, revenue is recognized for nonrefundable, upfront license fees when the license is transferred to the customer and the customer can use and benefit from the license. If the licensing of intellectual property is determined not to be distinct, then the license will be bundled with other promises in the arrangement into one performance obligation. The Company needs to determine if the bundled performance obligation is satisfied over time or at a point in time. If the Company concludes that the nonrefundable, upfront license fees will be recognized over time, the Company will need to assess the appropriate method of measuring proportional performance. Regulatory milestone payments are excluded from the transaction price due to the inability to estimate the probability of reversal. Revenue relating to achievement of these milestones will be recognized in the period in which the milestone is achieved. Sales-based royalty and milestone payments resulting from customer contracts solely or predominately for the license of intellectual property will only be recognized upon occurrence of the underlying sale or achievement of the sales milestone in the future and such sales-based royalties and milestone payments will be recognized in the same period earned. The Company recognizes revenue for reimbursements of research and development costs under collaboration agreements as the services are performed. The Company records these reimbursements as revenue and not as a reduction of research and development expenses as the Company is the principal in the research and development activities based upon its control of such activities, which is considered part of its ordinary activities. Development milestone payments are generally due 30 business days after the milestone is achieved. Sales milestone payments are generally due 45 business days after the calendar year in which the sales milestone is achieved. Royalty payments are generally due on a quarterly basis 20 business days after being invoiced. The cumulative effect of applying ASC Topic 606 to the Company’s consolidated balance sheet was as follows: Balance at June 30, 2018 Net Adjustment Balance at July 1, 2018 Deferred revenue $ 500,000 $ (500,000 ) $ - Accumulated deficit (332,045,906 ) 500,000 (331,545,906 ) The impact of adoption of ASC Topic 606 on the Company’s consolidated balance sheet as of September 30, 2018 is as follows: PALATIN TECHNOLOGIES, INC and Subsidiary Consolidated Balance Sheets (unaudited) Impact of change in accounting policies As reported September 30, 2018 Adjustments As reported without adoption of ASC Topic 606 ASSETS Current assets: Cash and cash equivalents $ 32,619,064 $ - $ 32,619,064 Accounts receivable 104,189 - 104,189 Prepaid expenses and other current assets 420,639 - 420,639 Total current assets 33,143,892 - 33,143,892 - Property and equipment, net 149,990 - 149,990 Other assets 338,916 - 338,916 Total assets $ 33,632,798 $ - $ 33,632,798 - LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 1,165,151 $ - $ 1,165,151 Accrued expenses 2,020,333 - 2,020,333 Notes payable, net of discount 4,305,242 - 4,305,242 Other current liabilities 969,179 - 969,179 Total current liabilities 8,459,905 - 8,459,905 - Notes payable, net of discount - - - Deferred revenue - 500,000 500,000 Other non-current liabilities - - - Total liabilities 8,459,905 500,000 8,959,905 Stockholders’ equity: Preferred stock 40 - 40 Common stock 2,030,321 - 2,030,321 Additional paid-in capital 360,370,494 - 360,370,494 Accumulated deficit (337,227,962 ) (500,000 ) (337,727,962 ) Total stockholders’ equity 25,172,893 (500,000 ) 24,672,893 Total liabilities and stockholders’ equity $ 33,632,798 $ - $ 33,632,798 ASC Topic 606 did not have an impact on the Company’s consolidated statements of operations or cash flows. |
Research and Development Costs | The costs of research and development activities are charged to expense as incurred, including the cost of equipment for which there is no alternative future use. |
Accrued Expenses | Third parties perform a significant portion of the Company’s development activities. The Company reviews the activities performed under all contracts each quarter and accrues expenses and the amount of any reimbursement to be received from its collaborators based upon the estimated amount of work completed. Estimating the value or stage of completion of certain services requires judgment based on available information. If the Company does not identify services performed for it but not billed by the service-provider, or if it underestimates or overestimates the value of services performed as of a given date, reported expenses will be understated or overstated. |
Stock-Based Compensation | The Company charges to expense the fair value of stock options and other equity awards granted. Compensation costs for stock-based awards with time-based vesting are determined using the quoted market price of the Company’s common stock on the date of grant or for stock options, the value determined utilizing the Black-Scholes option pricing model, and are recognized on a straight-line basis, while awards containing a market condition are valued using multifactor Monte Carlo simulations. Compensation costs for awards containing a performance condition are determined using the quoted price of the Company’s common stock on the date of grant or for stock options, the value is determined utilizing the Black Scholes option pricing model, and are recognized based on the probability of achievement of the performance condition over the service period. Forfeitures are recognized as they occur. |
Income Taxes | The Company and its subsidiary file consolidated federal and separate-company state income tax returns. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences or operating loss and tax credit carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. The Company has recorded a valuation allowance against its deferred tax assets based on the history of losses incurred. On December 22, 2017, the U.S. government enacted wide-ranging tax legislation, the Tax Cuts and Jobs Act (the “2017 Tax Act”). The 2017 Tax Act significantly revises U.S. tax law by, among other provisions, (a) lowering the applicable U.S. federal statutory corporate income tax rate from 35% to 21%, (b) eliminating or reducing certain income tax deductions, such as deductions for interest expense, executive compensation expenses and certain employee expenses, and (c) repealing the federal alternative minimum tax (“AMT”) and providing for the refund of existing AMT credits. The Company continues to maintain a full valuation allowance against its net deferred tax assets. Other provisions enacted include a new provision designed to tax low-taxed income of foreign subsidiaries (i.e., “GILTI”) and a one-time transition tax on the deemed repatriation of post-1986 undistributed foreign subsidiary earnings and profits (“E&P”) from controlled foreign corporations (“CFC”). The Company does not have any foreign subsidiaries, and thus these provisions do not apply. During the year ended June 30, 2018, the Company recorded income tax expense of $82,500, which consisted of $500,000 that was withheld in accordance with tax withholding requirements in the Chinese Territories related to the Fosun License Agreement (Note 6) and $82,500, which was withheld in accordance with tax withholding requirements in Korea related to the Kwangdong License Agreement (Note 7). The total income tax expense related to withholding requirements of $582,500 was offset by an income tax benefit of $500,000, which resulted from the 2017 Tax Act, under which AMT credits became refundable, and therefore a $500,000 benefit related to the release of a valuation allowance against an AMT credit was recorded during the three months ended December 2017. The Company’s June 30, 2017 tax return was filed during the three months ended March 31, 2018 and the Company did not incur an AMT liability. As a result, as of September 30, 2018 and June 30, 2018, the Company has a current income tax receivable of $218,000 and a long-term income tax receivable of $282,000 from estimated AMT that can be refunded in the future. |
Net Income (Loss) per Common Share | Basic and diluted earnings per common share (“EPS”) are calculated in accordance with the provisions of FASB ASC Topic 260, Earnings per Share The following table is a reconciliation of net (loss) income and the shares used in calculating basic and diluted net (loss) income per common share for the three months ended September 30, 2018 and 2017: Three Months Ended September 30, 2018 2017 Net (loss) income $ (5,682,056 ) $ 10,603,630 Denominator: Weighted average common shares - Basic 205,009,278 197,112,400 Effect of dilutive shares: Common stock equivalents arising from stock options, warrants and conversion of preferred stock - 1,413,791 Restricted stock units - 2,834,545 Weighted average common shares - Diluted 205,009,278 201,360,736 Net (loss) income per common share: Basic $ (0.03 ) $ 0.05 Diluted $ (0.03 ) $ 0.05 As of September 30, 2017, common shares issuable upon the exercise of outstanding options and warrants, excluding outstanding warrants exercisable for nominal consideration, and the vesting of restricted stock units amounted in an aggregate of 11,116,667 shares being excluded from the weighted average number of common shares used in computing diluted net income per common share because they were anti-dilutive during the period or the minimum performance requirements or market conditions had not been met. For the three months ended September 30, 2018, no additional common shares were added to the computation of diluted EPS because to do so would have been anti-dilutive. The potential number of common shares excluded from diluted EPS during the three months ended September 30, 2018 was 44,454,308. Included in the weighted average common shares used in computing basic and diluted net income (loss) per common share are 3,347,999 and 1,729,250 vested RSUs that have not been issued as of September 30, 2018 and 2017, respectively, due to a provision in the RSU agreements to delay delivery. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Impact of adoption of ASC Topic 606 | The cumulative effect of applying ASC Topic 606 to the Company’s consolidated balance sheet was as follows: Balance at June 30, 2018 Net Adjustment Balance at July 1, 2018 Deferred revenue $ 500,000 $ (500,000 ) $ - Accumulated deficit (332,045,906 ) 500,000 (331,545,906 ) The impact of adoption of ASC Topic 606 on the Company’s consolidated balance sheet as of September 30, 2018 is as follows: PALATIN TECHNOLOGIES, INC and Subsidiary Consolidated Balance Sheets (unaudited) Impact of change in accounting policies As reported September 30, 2018 Adjustments As reported without adoption of ASC Topic 606 ASSETS Current assets: Cash and cash equivalents $ 32,619,064 $ - $ 32,619,064 Accounts receivable 104,189 - 104,189 Prepaid expenses and other current assets 420,639 - 420,639 Total current assets 33,143,892 - 33,143,892 - Property and equipment, net 149,990 - 149,990 Other assets 338,916 - 338,916 Total assets $ 33,632,798 $ - $ 33,632,798 - LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 1,165,151 $ - $ 1,165,151 Accrued expenses 2,020,333 - 2,020,333 Notes payable, net of discount 4,305,242 - 4,305,242 Other current liabilities 969,179 - 969,179 Total current liabilities 8,459,905 - 8,459,905 - Notes payable, net of discount - - - Deferred revenue - 500,000 500,000 Other non-current liabilities - - - Total liabilities 8,459,905 500,000 8,959,905 Stockholders’ equity: Preferred stock 40 - 40 Common stock 2,030,321 - 2,030,321 Additional paid-in capital 360,370,494 - 360,370,494 Accumulated deficit (337,227,962 ) (500,000 ) (337,727,962 ) Total stockholders’ equity 25,172,893 (500,000 ) 24,672,893 Total liabilities and stockholders’ equity $ 33,632,798 $ - $ 33,632,798 |
Schedule of net income (loss) per share | Three Months Ended September 30, 2018 2017 Net (loss) income $ (5,682,056 ) $ 10,603,630 Denominator: Weighted average common shares - Basic 205,009,278 197,112,400 Effect of dilutive shares: Common stock equivalents arising from stock options, warrants and conversion of preferred stock - 1,413,791 Restricted stock units - 2,834,545 Weighted average common shares - Diluted 205,009,278 201,360,736 Net (loss) income per common share: Basic $ (0.03 ) $ 0.05 Diluted $ (0.03 ) $ 0.05 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Disclosure Prepaid Expenses And Other Current Assets Tables Abstract | |
Schedule of prepaid expenses and other current assets | September 30, 2018 June 30, 2018 Clinical study costs $ 62,453 $ 145,994 Insurance premiums 30,986 42,605 Other 327,200 325,089 $ 420,639 $ 513,688 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
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, 2018: Money market account $ 32,431,016 $ 32,431,016 $ - $ - June 30, 2018: Money market account $ 37,808,099 $ 37,808,099 $ - $ - |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Accrued Expenses | |
Accrued Expenses | September 30, 2018 June 30, 2018 Clinical study costs $ 673,376 $ 983,410 Other research related expenses 662,466 590,236 Professional services 66,062 297,731 Severance 555,184 - Other 63,245 231,644 $ 2,020,333 $ 2,103,021 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Notes Payable | September 30, 2018 June 30, 2018 Notes payable under venture loan $ 4,333,334 $ 6,333,334 Unamortized related debt discount (18,496 ) (33,535 ) Unamortized debt issuance costs (9,596 ) (18,138 ) Notes payable 4,305,242 6,281,661 Less: current portion 4,305,242 5,948,763 Long-term portion $ - $ 332,898 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Option activity | Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term in Years Aggregate Intrinsic Value Outstanding - July 1, 2018 12,775,462 0.76 7.7 Granted - - Forfeited (133,851 ) 0.53 Expired (129,150 ) 1.77 Outstanding - September 30, 2018 12,512,461 0.75 7.5 3,320,734 Exercisable at September 30, 2018 6,263,674 $ 0.77 6.0 $ 1,659,518 Expected to vest at September 30, 2018 6,248,787 $ 0.74 9.0 $ 1,661,216 |
Restricted Stock Units | Number of RSU's Outstanding at July 1, 2018 9,323,876 Granted - Forfeited (178,851 ) Vested (319,817 ) Outstanding at September 30, 2018 8,825,208 |
ORGANIZATION (Details Narrative
ORGANIZATION (Details Narrative) - USD ($) | 3 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Accumulated deficit | $ 337,227,962 | $ 332,045,906 | ||
Net (loss) income | (5,682,056) | $ 10,603,630 | ||
Cash and cash equivalents | 32,619,064 | $ 39,708,573 | 38,000,171 | $ 40,200,324 |
Current liabilities | $ 8,459,905 | $ 10,762,965 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 32,619,064 | $ 38,000,171 | $ 39,708,573 | $ 40,200,324 |
Accounts receivable | 104,189 | 0 | ||
Prepaid expenses and other current assets | 420,639 | 513,688 | ||
Total current assets | 33,143,892 | 38,513,859 | ||
Property and equipment, net | 149,990 | 164,035 | ||
Other assets | 338,916 | 338,916 | ||
Total assets | 33,632,798 | 39,016,810 | ||
Current liabilities: | ||||
Accounts payable | 1,165,151 | 2,223,693 | ||
Accrued expenses | 2,020,333 | 2,103,021 | ||
Notes payable, net of discount | 4,305,242 | 5,948,763 | ||
Other current liabilities | 969,179 | 487,488 | ||
Total current liabilities | 8,459,905 | 10,762,965 | ||
Notes payable, net of discount | 0 | 332,898 | ||
Deferred revenue | 0 | 500,000 | ||
Other non-current liabilities | 0 | 456,038 | ||
Total liabilities | 8,459,905 | 12,051,901 | ||
Stockholders' equity: | ||||
Preferred stock | 40 | 40 | ||
Common stock | 2,030,321 | 2,005,542 | ||
Additional paid-in capital | 360,370,494 | 357,005,233 | ||
Accumulated deficit | (337,227,962) | (332,045,906) | ||
Total stockholders' equity | 25,172,893 | 26,964,909 | $ 5,975,678 | $ (5,164,644) |
Total liabilities and stockholders' equity | 33,632,798 | $ 39,016,810 | ||
Adjustments | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | |||
Accounts receivable | 0 | |||
Prepaid expenses and other current assets | 0 | |||
Total current assets | 0 | |||
Property and equipment, net | 0 | |||
Other assets | 0 | |||
Total assets | 0 | |||
Current liabilities: | ||||
Accounts payable | 0 | |||
Accrued expenses | 0 | |||
Notes payable, net of discount | 0 | |||
Other current liabilities | 0 | |||
Total current liabilities | 0 | |||
Notes payable, net of discount | 0 | |||
Deferred revenue | 500,000 | |||
Other non-current liabilities | 0 | |||
Total liabilities | 500,000 | |||
Stockholders' equity: | ||||
Preferred stock | 0 | |||
Common stock | 0 | |||
Additional paid-in capital | 0 | |||
Accumulated deficit | (500,000) | |||
Total stockholders' equity | (500,000) | |||
Total liabilities and stockholders' equity | 0 | |||
As reported without adoption of ASC Topic 606 | ||||
Current assets: | ||||
Cash and cash equivalents | 32,619,064 | |||
Accounts receivable | 104,189 | |||
Prepaid expenses and other current assets | 420,639 | |||
Total current assets | 33,143,892 | |||
Property and equipment, net | 149,990 | |||
Other assets | 338,916 | |||
Total assets | 33,632,798 | |||
Current liabilities: | ||||
Accounts payable | 1,165,151 | |||
Accrued expenses | 2,020,333 | |||
Notes payable, net of discount | 4,305,242 | |||
Other current liabilities | 969,179 | |||
Total current liabilities | 8,459,905 | |||
Notes payable, net of discount | 0 | |||
Deferred revenue | 500,000 | |||
Other non-current liabilities | 0 | |||
Total liabilities | 8,959,905 | |||
Stockholders' equity: | ||||
Preferred stock | 40 | |||
Common stock | 2,030,321 | |||
Additional paid-in capital | 360,370,494 | |||
Accumulated deficit | (337,727,962) | |||
Total stockholders' equity | 24,672,893 | |||
Total liabilities and stockholders' equity | $ 33,632,798 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||
Net income (loss) | $ (5,682,056) | $ 10,603,630 |
Denominator: | ||
Weighted average common shares outstanding - Basic | 205,009,278 | 197,112,400 |
Effect of dilutive shares: | ||
Common stock equivalents arising from stock options, warrants and conversion of preferred stock | 0 | 1,413,791 |
Restriced stock units | 0 | 2,834,545 |
Weighted average common shares outstanding - Diluted | 205,009,278 | 201,360,736 |
Net (loss) income per common share: | ||
Basic | $ (0.03) | $ 0.05 |
Diluted | $ (0.03) | $ 0.05 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Jun. 30, 2018 | |
Accounting Policies [Abstract] | ||
Cash equivalents | $ 32,431,016 | $ 37,808,099 |
Accumulated depreciation and amortization | $ 2,352,603 | $ 2,338,558 |
Potential number of common shares excluded from diluted EPS | 41,454,308 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 |
Prepaid Expenses And Other Current Assets Details | ||
Clinical study costs | $ 62,453 | $ 145,994 |
Insurance premiums | 30,986 | 42,605 |
Other | 327,200 | 325,089 |
Total prepaid expenses and other current assets | $ 420,639 | $ 513,688 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 |
Money market account | $ 32,431,016 | $ 37,808,099 |
Level 1 | ||
Money market account | 32,431,016 | 37,808,099 |
Level 2 | ||
Money market account | 0 | 0 |
Level 3 | ||
Money market account | $ 0 | $ 0 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 |
Accrued Expenses | ||
Clinical study costs | $ 673,376 | $ 983,410 |
Other research related expenses | 662,466 | 590,236 |
Professional services | 66,062 | 297,731 |
Severance | 555,184 | 0 |
Other | 63,245 | 231,644 |
Accrued expenses | $ 2,020,333 | $ 2,103,021 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 |
Notes Payable Details | ||
Notes payable under venture loan | $ 4,333,334 | $ 6,333,334 |
Unamortized related debt discount | (18,496) | (33,535) |
Unamortized debt issuance costs | (9,596) | (18,138) |
Notes payable | 4,305,242 | 6,281,661 |
Less: current portion | 4,305,242 | 5,948,763 |
Long-term portion | $ 0 | $ 332,898 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) | 3 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Stockholders' equity: | |
Number of Options Outstanding, Beginning | shares | 12,775,462 |
Number of Options Granted | shares | 0 |
Number of Options Forfeited | shares | (133,851) |
Number of Options Expired | shares | (129,150) |
Number of Options Outstanding, Ending | shares | 12,512,461 |
Number of Options Exercisable | shares | 6,263,674 |
Number of Options Expected to vest | shares | 6,248,787 |
Weighted Average Exercise Price Outstanding, Beginning | $ / shares | $ .76 |
Weighted Average Exercise Price Granted | $ / shares | .00 |
Weighted Average Exercise Price Forfeited | $ / shares | .53 |
Weighted Average Exercise Price Expired | $ / shares | 1.77 |
Weighted Average Exercise Price Outstanding, Ending | $ / shares | .75 |
Weighted Average Exercise Price Exercisable | $ / shares | .77 |
Weighted Average Exercise Price Options Expected to vest | $ / shares | $ .74 |
Weighted Average Remaining Term in Years Options outstanding at beginning of year | 7 years 8 months 12 days |
Weighted Average Remaining Term in Years Options outstanding at end of year | 7 years 6 months |
Weighted Average Remaining Term in Years Options exercisable at end of year | 6 years |
Weighted Average Remaining Term in Years Options expected to vest | 9 years |
Aggregate Intrinsic Value Options outstanding | $ | $ 3,320,734 |
Aggregate Intrinsic Value Options exercisable | $ | 1,659,518 |
Aggregate Intrinsic Value Options expected to vest | $ | $ 1,661,216 |
STOCKHOLDERS' EQUITY (Details 1
STOCKHOLDERS' EQUITY (Details 1) | 3 Months Ended |
Sep. 30, 2018shares | |
Stockholders' equity: | |
Outstanding at beginning of year | 9,323,876 |
Granted | 0 |
Forfeited | (178,851) |
Vested | (319,817) |
Outstanding at end of year | 8,825,208 |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Stockholders' equity: | ||
Stock based compensation, options | $ 323,703 | $ 159,874 |
Stock based compensation, restricted stock units | $ 800,878 | $ 261,997 |