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Commitments and Contingencies | 12 Months Ended
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Jun. 30, 2015
Commitments and Contingencies [Abstract] |
COMMITMENTS AND CONTINGENCIES | NOTE 9 - COMMITMENTS AND CONTINGENCIES License Agreements Wonpung On August 20, 2007, the Company entered into a License Development and Commercialization Agreement with Wonpung, a shareholder of the Company. Wonpung has exclusive territorial rights in countries it selects in Asia to market up to two drugs the Company is currently developing and a right of first refusal (“ROFR”) for up to an additional five drugs that the Company may develop in the future as defined in more detail in the license agreement. The Company received an upfront license fee of $1,500,000 and will earn royalties of up to 12% of net sales for up to two licensed products it is currently developing. The licensing terms for the ROFR products are subject to future negotiations and binding arbitration. The terms of each licensing agreement will expire on the earlier of any time from 15 years to 20 years after licensing or on the date of commercial availability of a generic product to such licensed product in the licensed territory. The Company’s current focus is on developing and marketing its products in the United States and not Asia. It will be several years before the Company markets its products in Asia. Third Party Licensor Based upon the Medeor transaction, the Company assumed an obligation to pay a third party (A) royalty payments up to 2% on net sales of licensed products that are not sold by sublicensee and (B) on each and every sublicense earned royalty payment received by licensee from its sublicensee on sales of license product by sublicensee, the higher of (i) 20% of the royalties received by licensee; or (ii) up to 2% of net sales of sublicensee. The Company will also make milestone payments of up to $4 million and up to $2 million, for the first commercial sale of product in the field that has a single active pharmaceutical ingredient, and for the first commercial sale of product in the field of product that has more than one active pharmaceutical ingredient, respectively, see Note 7. Research and Development Contracts At June 30, 2015, the Company has approximately $3,985,000 in commitments, primarily related to its research and development contracts for its clinical research organizations through March 31, 2016. Leases The Company currently leases corporate office spaces for its New York City offices on a month-to month basis. The Company is planning on moving its New York City corporate office location in October 2015 to another space in New York City. The lease expires in December 2023. In addition, the Company has a lease expiring in 2017 for its Pennsylvania office location. Future minimum lease payments are as follows: For the year ended June 30:
Year |  | Amount |
2016 |  | $ | 266,800 |
2017 |  |  | 357,800 |
2018 |  |  | 336,700 |
2019 |  |  | 335,100 |
2020 |  |  | 347,300 |
Thereafter |  |  | 909,800 |
Total |  | $ | 2,553,500 |
The Company incurred rent expense of approximately $239,800, $13,300 and $ 67,800 and for year ended June 30, 2015, for the six months ended June 30, 2014, and for the year ended December 31, 2013, respectively. Letter Of Credit The Company has an outstanding letter of credit of approximately $390,800 in connection with the Company’s New York City corporate office lease. The letter of credit is secured by a restricted certificate of deposit in the same amount which is included in other assets at June 30, 2015. On the second anniversary of the commencement date which is expected to be in October 2017, the letter of credit will be reduced to approximately $234,400. In October 2022, the letter of credit will be reduced to approximately $156,000. Legal From time to time, the Company may become involved in lawsuits and other legal proceedings that arise in the course of business. Litigation is subject to inherent uncertainties, and it is not possible to predict the outcome of litigation with total confidence. Except as disclosed below, the Company is currently not aware of any legal proceedings or potential claims against it whose outcome would be likely, individually or in the aggregate, to have a material adverse effect on the Company’s business, financial condition or operating results. Lawsuit Brought by Former Officer: In 2014, Relmada was dismissed with prejudice of its lawsuit against Najib Babul, which had sought to compel Mr. Babul, Relmada’s former President and sole stockholder, to account for questionable expenditures of Relmada funds made while Babul controlled the Company. Relmada’s decision to surrender its claims was informed by the fact that Babul came forward with plausible explanations for some of the expenditures, and the fact that, because Babul was a former officer and director of Relmada being sued for his conduct in office, the Company was required to advance his expenses of the litigation; hence, Relmada was paying all the lawyers and consultants on both sides of the dispute. Relmada also agreed to reinstate certain stock purchase warrants in Babul’s name, which had been cancelled during the pendency of the litigation, and offered Babul the right to exchange his shares in the subsidiary, Relmada Delaware, for shares in the Company. Subsequently, Babul has brought a second lawsuit against Relmada, making claims for breach of contract, defamation, intentional infliction of emotional distress, and wrongful use of civil process. The Company has moved to dismiss Babul’s claims, brought in the United States District Court for the Eastern District of Pennsylvania. Management also believes that, if the litigation is permitted to proceed, it will have good defenses to all of Babul’s claims. However, litigation is an inherently uncertain process, and there can be no assurance that the Company will succeed in its defense. Management believes that the outcome of the Babul litigation, even if unfavorable, would not materially affect the Company’s operations or financial position.

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